Home Heating Oil Tanks

For my first true content post, it would make sense to pick something easy. But that's not how I like to do things. So not only did I pick a difficult topic, but I chose the really un-sexy topic of home heating oil tanks. Let's dig in...

Living in the Northeastern US, I've encountered many home heating oil tank situations in my real estate adventures. They are something that I often tried to avoid if at all possible. All I knew about them in my naive, earlier days was that heating oil was expensive and you have to worry about leaks. While I'm not claiming to be an expert now, I do know that there is much more to the story. But before we get to that, let's start at the beginning.

Brief History

In the early days, wood and coal were used as primary home heating fuels. Natural gas emerged in the early 19th century and oil heaters appeared in the early 1920's. An article from This Old House states, "Homeowners began converting to fuel oil back in the 1940's, when it was marketed as a cleaner alternative to coal. By 1960, 32 percent of houses in the United States had oil heat, but its use has since declined to just 7 percent. Oil remains popular in the Northeast, however, where more than 30 percent of homes still burn it." (Thomas Baker, This Old House) From some of my other research I have done, it seems it is still a popular choice in Canada and some parts of Europe.

Heating oil is typically delivered by tank truck to your home and pumped into above-ground storage tanks (AST's) commonly located in basements and garages. There are also under-ground storage tanks (UST's), but for the purposes of this post I'm focusing on AST's.

Cautionary Tale

When I bought my multi-unit building back in 2012, it used steam radiators for heat. A previous owner had converted it from an oil boiler to gas, which is more efficient and cost effective in the long run. I'm assuming they left the old oil tank in the basement, inactive, since removing it would be an unnecessary cost.  When I did the showing I didn't bat an eye at the oil tank since the property had been converted to gas. My home inspection occurred with nothing notable about the tank. And for the next 4 years, I wouldn't give it another thought until one day I went into the basement to check something and a pungent petroleum smell hit me as soon as I opened the door. Immediately I was confused. There was no reason for there to be a fuel smell coming from the basement, or anywhere on the property for that matter. Or so I thought. After a panicked inspection, I discovered that the bottom had rusted out of my seemingly innocuous oil tank and further adding to my horror, the remaining oil had seeped into the concrete floor below.

Now, not only did I have a big problem on my hands, but it was also an environmental issue too. Concrete is a porous surface so the oil had likely soaked through resulting in soil contamination. Luckily(?) I had used the hazardous waste cleanup company, Conservative Environmental Services, Inc, before for asbestos abatement (which I'll address in a future post) so I contacted them about this immediately. In addition to that, I contacted my dwelling insurance provider to see if any of this would be covered by my insurance. Turns out my policy would not cover the tank removal, but they would cover any of the damage the leak caused, which would include:

• Remove concrete floor as needed.
• Excavate visually contaminated soil for proper disposal.
• Collect confirmatory soil samples and provide analysis for the presence of oil.
• Backfill excavated materials to existing grade
• Create new concrete slab.

The company split the proposal into two parts so I could submit the insurance related total separately. The tank removal was a bit more complicated too and involved the following:

• Open and remove any remaining heating oil from interior of tank for proper disposal/recycling.
• Clean interior of tank.
• Remove tank and deliver to designated scrap metal facility.
• Collect and properly dispose of all remaining tank contents.
• Provide owner with all applicable disposal documentation.

The cost for the tank removal was $1,250 plus $295 per 55 gallon drum for disposal of residual fuel oil. The cost for the remediation was $1,750 plus $195 per drum of contaminated soil/concrete disposal, $45 per ton of backfill material, and $295 per sample for soil analysis.

Now keep in mind this was back in 2016, so I'm sure costs have changed since then, but I'm posting this more as a reference point. If this happens to you, maybe it will give you an idea of what to expect. What I'm really hoping though, is that this post PREVENTS this type of thing from happening to you.

My Oil Tank Removal: Before & After

While I thought this project was a bit of a headache I felt lucky after I found out about another local oil-conversion nightmare. In this instance, a family had converted from oil to gas and completely removed the tank but never removed the exterior fill pipe. This pipe is where the delivery truck will hook up their hose to pump oil into your tank. A delivery driver got the address wrong and pumped 100 gallons onto their basement floor. You can read that full story here. 

Pros and Cons of Oil Heat

Now that I've scared you to death, I thought it would be only fair to list the positives of using an oil heating system. I decided not to include cost below. In the past, cost would be a "con" for oil heat users, but recently with oil prices at historic lows it would be a "pro." Since this varies, I have chosen a few others which I can attest to personally.

Pros

• Highest Heat - Oil burns at a higher temperature than natural gas so you get more heat per BTU. In the past, I've lived in houses with forced air heating, either by electric heat pump or with a gas furnace. I currently live in a home where the primary heating source is hot water baseboard, fueled by an oil boiler and I have to say it's the best "true" heat I've ever had. It's long lasting too with the radiators giving off heat long after the boiler has shut off. I'd love to convert to radiant floor heating, but right now that's just a dream. 
• Excellent Safety - Oil is flammable, but it will not explode in case of an accident. It also does not produce carbon monoxide which is a top concern of natural gas users. Inhalation of oil fumes is not fatal.
• Great for Remote Areas - Oil is a great alternative for folks who do not have access to natural gas. While I do not live in a remote area, I do live in a neighborhood with a mix of heat sources. I looked into converting to natural gas not long after I moved in, but found it would cost $10k just to get the gas line to my house. When you add in the expense of a new boiler and all the other associated costs, it just doesn't seem worth it to me. 

Cons

• Inconvenient - Oil requires you to have a deliver service since there is no direct pipeline. I've run out twice during the winter and it was not fun. Once the oil is delivered you usually have to bleed the line to restart the boiler. Luckily a quick YouTube video showed me how to do this and saved me a service call. I like to live on the edge and buy my oil when I need it, but you can also set up automatic delivery on a regular schedule so you don't have to worry about running out. But where's the fun in that?
• Cleanliness - Oil does not burn as clean as natural gas, so it is known to get dirt and soot buildup. When I originally moved into my house I could see some soot buildup, but I haven't experienced it since I've lived here. It might just take a number of years to be noticeable, or maybe I'm just very good at keeping things clean.
• Maintenance - Oil furnaces are known to require extensive maintenance due to the dirt and soot buildup. I haven't really experienced this either with my oil boiler but I know it's a consideration.

Tips for Residential Heating Tank Oil Owners

The PA DEP provides some great resources for residential tank owners including a self-inspection checklist. I'll share part of it below, but I highly recommend checking out the whole document here.

Self-Inspection Checklist for Basement and Backyard Above Ground Home Heating Oil Tanks (ASTs)

If the answer is “YES” to any of the following questions, call an oil burner technician for a more detailed inspection and corrective measures.

• Are the tank legs unstable or on a precarious foundation?
• Is the tank vent clogged or restricted because of ice, snow, or insect nests? (Screened vents can prevent insect nest problems.)
• Are there any signs of rust, weeps, wet spots, or excessive dents on the tank’s surface?
• Is the overfill whistle silent when the tank is being filled? (Ask your delivery person.)
• Are there any drips or signs of leakage around the filter or valves?
• Are there signs of spills around the fill pipe or the vent pipe?
• Do the oil lines between the tank and the furnace run either under concrete or above ground without a protective casing?
• Is the fuel-level gauge cracked, stuck, or frozen…or are there signs of oil around it?
• Is there danger of snow or ice falling on the tank? 
• Are you using more oil than normal?

Hopefully your biggest takeaway from all of my experience with this, is that there is no need to fear oil tanks. Just make sure you remove any parts of them that are inactive and inspect existing oil tanks regularly. If you do these two things, you should be in pretty good shape. Good luck!

Disclaimer: The author does not assume any responsibility or liability whatsoever for what you choose to do with this information. Please consult an HVAC professional before making any decisions based on this post.