: :  Aboveground and Underground fuel storage tanks

: : Fuel Storage Tank Concerns

Oil spills are a significant source of pollution.  Almost half of all oil spills in this country occur from home heating oil storage tanks. Tests have proven that as little a “glass” of oil/diesel can contaminate one million litres of drinking water, and a larger spill can contaminate a large water supply for a lifetime. Clean up of contaminated soil and water is often difficult and very costly. Basements and Personal Property can also be contaminated by an oil leak. Fire and health hazards are also of concern.

According to recent statistics, hundreds of residential fuel oil spills occur every year in Ontario and the numbers could be in the thousands nationwide. Depending on specific site conditions, the costs of cleaning up these spills can range anywhere from a few thousand dollars to several hundred thousand dollars.  It is the building owner's responsibility to ensure that fuel oil is stored safely, because “fuel oil spills can lose or ruin a lifelong investment”. No one but the owner of the property (vendor) should assume the risk/responsibility for the installation and removal of the underground tank as required by Ontario law.

: : What should you do?  Who should you call?

When dealing with the environment and petroleum it is an extremely important to hire professional contractors. Your lifelong investment is at risk, and it is extremely important you hire certified, experienced and qualified workers. It is not worth risking your property and/or paying TSSA fines.

By law, all contractors working on fuel oil equipment such as underground tanks are required to be registered with TSSA. Persons repairing, installing, removing and servicing fuel oil underground tanks are also required to be trained and certified as a Petroleum Equipment Mechanic 2. Geotank Environmental is a fully insured corporation which specializes in commercial and residential environmental concerns.  We take pride in our equipment and fully certified employees who are capable of any service in the environmental and construction industry. Our strict compliance to TSSA and Ministry of Environment code standards and regulations ensure all work is performed at the highest level of excellence.

: : Aboveground Fuel Storage Tanks

Many home oil tanks are designed and built for indoor use. Indoor oil tanks will generally last longer and improve the efficiency of oil-fired appliances. Indoor storage tanks are less likely to spill and do not emit an odor. When installing an indoor oil tank, place the tank where it can be easily inspected but will not be damaged by normal household activities.  If possible, surround the tank with a low curb and dyke to contain any leaked oil. Never place a tank against a wall, as this can cause the tank to rust.  Cover the supply line and filter to protect them from damage.  Storing objects on top of the tank could potentially lead to damage.

All aboveground tanks must be installed and removed by a licensed petroleum contractor holding a PM3 license.  Under the decommissioning provision of the Liquid Fuels Handling Code, a report signed by a qualified person, outlining the removal processes and providing an opinion of the soil conditions in the tank nest is required.

: : Underground Fuel Storage Tanks

Many underground oil tanks have reached the end of their useful lives and are beginning to corrode, rust and leak. Increasing homeowner insurance claims resulting from leaking oil tanks are very expensive and can lead to high insurance rates, or even refusal of coverage. It is a homeowner’s legal responsibility to properly maintain the oil tank and clean up any spills or leaks that may occur.

Leaking underground storage tanks may create several hazards including:

• Products and product vapours can generate a potentially explosive mixture;
• Products can enter surface water;
• Products can enter drinking water;
• Products can contaminate surrounding soil;
• Products can damage property.

Problems with underground oil tanks may complicate the process of applying for homeowner's insurance and, in extreme cases, may adversely affect real estate transactions themselves.

All underground tanks must be installed and removed by a licensed petroleum contractor holding a PM2 license. Under the decommissioning provision of the Liquid Fuels Handling Code, a report signed by a qualified person, outlining the removal processes and providing an opinion of the soil conditions in the tank nest is required.

: : Insurance Issues

According to the Insurance Bureau of Canada, a home with an exterior oil tank older than 15 years, or an interior tank older than 25 years will not be insured.

• 25 or more years ago - the tank must be
removed or upgraded by October 1, 2006

• 20 to 24 years ago - the tank must be
removed or upgraded by October 1, 2007

• 10 to 19 years ago - the tank must be
removed or upgraded by October 1, 2008
•
 Less than a year to 9 years ago - the tank must
be upgraded or removed by October 1, 2009.

: : Real Estate Issues

The number of residential fuel oil leaks and spills has increased in recent years and has the potential to become much larger as tanks and oil lines reach the end of their life span. Tanks can last a long time but not forever. The likelihood of an oil leak occurring increases when storage tanks and fuel oil lines are over 30 years old or have not been properly maintained. When purchasing an older home, determining the age and condition of a fuel oil tank can be difficult. Unless the tank is tagged or there is a record of a tank change, the tank may be as old as the house.

Real estate transactions can be put at risk if a client purchases a property with an underground fuel
oil tank and is denied homeowners insurance. If a client finds that an existing tank has not been
registered, remedial action may cost them thousands of dollars.

Due to the potential of soil contamination and the unknown costs associated with the tank removal the risk to the buyer cannot be estimated. As such, no one but the owner of the property (vendor) should assume the risk/responsibility for the removal of the underground tank as required by Ontario law.

: : Related Resources and Documents

The Canadian Real Estate Association
“Understanding Fuel Tanks - Insurance Issues You Should Know”
http://www.Geotank.com/realestate.pdf

Ontario Petroleum Contractors Association
“If you own an Underground Tank”
http://www.Geotank.com/underground.pdf

Geotank Environmental
“Introduction to Fuel Tanks - Presentation Summary (figures vary)”
http://www.Geotank.com/Geotank.pdf