Thursday, May 13, 2010

Underground Oil Storage Tanks


If your home is heated by oil heat, you should be aware of a new law going into effect on July 1, 2010. The the "Oil Heating System Upgrade and Insurance Law" requires homeowners with oil heating systems that were installed before 1990 to install either a sleeve around the pipe that feeds the burner or a safety valve to prevent leaks. The new law also allows all homeowners to buy insurance coverage for the cleanup of a leak if their system is in compliance. If you have an oil tank and have not had it examined for compliance with this law, you are advised to do so before July 1.

If your oil tank is underground, you should be very diligent about ensuring that the tank is not leaking. The older the tank, the more likely it may be. Even if there is no current leak, you may want to consider removing the underground tank and replacing it with an above ground tank in your basement or a shed. Massachusetts state law does not mandate the removal of a residental underground tank if it is not leaking, but there may be local requirements in the municipality in which you live. Your local fire department can tell you about its requirements.

If you are planning to sell your home, you are likely to find that even if the underground tank is not leaking, a buyer will want it to be removed as a condition of the closing. If you are planning to put your house on the market, you should consider removing the underground oil tank before you do so. Removal should be done by a licensed and qualified contractor. The removal must be done in accordance with all state and local requirements, pursuant to a valid permit, and with the supervision of the local fire department. When the work is completed, obtain written documentation and certification from the fire department to verify the proper removal of the tank so you can provide that to potential buyers.

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