What To Do With Underground Storage Tanks In North Carolina Homes

If your home was built before the mid-1960s, there's a good chance it has an underground storage tank for the heating oil used as the fuel for the furnace. This heating oil was usually stored in underground storage tanks (USTs) near the homes. Oil trucks would come to the homes and top off the USTs periodically during the winter months.

The Problem: Tanks Can Corrode & Leak Over Time

Over time, people switched to above-ground tanks or to electric furnaces or furnaces powered by natural gas. But the underground tanks still sit on the properties and may still have some oil in them. So what is the problem? Well, the tanks are made primarily of steel, which will corrode after about 20 or 30 years of use. Holes develop in the tanks, and the oil leaks out and contaminates the soil. It can even contaminate the groundwater and the drinking water.

In some cases, you may see signs of oil leakage. These include discolored soil that has a greenish-gray look, strong odors of petroleum, and dead vegetation. If you see signs of an oil leak, you must report the leak within 24 hours of discovery to the North Carolina Department of Environment and Natural Resources or be subject to possible fines. It is also possible to have soil contamination without any visible signs.

Some homeowners may not even be aware that there is a UST on their property, especially if the former owners removed the fill and vent pipes. But ignorance may not be bliss. If the soil is being contaminated by the UST, you will want to get the problem handled before the contamination becomes worse and the remediation costs more expensive. Also, it will be harder to sell your home if you have a UST on the property and cannot show that it has been properly removed and that the soil is free of contamination.

The Solution: Underground Storage Tank Removal

The best solution to the UST problem is to remove the tank. But don’t do that job yourself. If must be removed by a tank removal company that knows all of the regulations governing removal and disposal of these tanks. The soil should also be tested for contamination. If contamination exists, it should be properly remediated by an authorized company.

The state used to require soil clean-up if there was any indication of leakage in a soil test. Now, clean-up is only required if emergency risk factors (water contamination, fire or explosion hazard, or oil on the surface) are present. However, while the state may not require contamination clean-up, others might. Most insurance companies will not insure a property with a UST. Most lenders will require removal and clean-up before granting the mortgage loan. And, of course, smart buyers will require removal and remediation before closing on the property.

The state used to have a trust fund to help pay for some of the expenses involved with remediation of the soil. However, as of October 15, 2015, that trust fund is no longer available to help defray the costs. You will have to bear the burden.

Tips For Triangle Area Home Buyers and Sellers

If you believe that there could be a UST on your property, you should get an inspector to check for one. Then consult a tank removal and remediation company. At a minimum you will want to know if the tank is currently leaking and contaminating your property. It would be smart to have the tank removed and the contamination cleaned up. Failure to do so could make it much harder to sell your property.

If you are a buyer, be sure to ask about any USTs that may be on the property. If you want to purchase the property, get a UST inspection to make sure there isn’t a hidden tank on the property. Make sure your offer is conditional on the tank removal and soil remediation by the seller. You don’t want to be surprised by this issue down the road.

If you are considering buying or selling a home, send us a message or give us a call at 919-659-5173. My partner Andrew Palumbo and I both have extensive real estate and construction experience and we'd be happy to help you in any way we can.