Happened to a friend of mine in New Jersey and she discovered her insurance policy covered it. Might want to check your old and current policies and speak with your broker.

We had the seller remove the oil drum buried in the backyard this summer. 500 gallons! There was no leakage, and where I live there is no requirement to get a certificate from the state, so the whole thing took one day (digging up the tank, removing the crud inside, taking it away, and refilling the hole). It cost the sellers between $1500 and $1800 (cannot remember the final price), and it took about 5 days to get the all clear result. The company used was First Call Environmental (http://firstcallenvironmental.com/), which works across several states. They were very professional, and I would definitely recommend them if they work in your area. They come first to take a look in order to give a price estimate. The only thing is, the backyard was really dug up, and there was a path of tire tracks as well. In our case, we didn't care because it was us requesting the removal (not common here yet), so we'll wait for the earth to settle until spring then landscape. But in your case you'll have make it look pretty, put sod most likely, so budget for that also.

BTW, the company said most tanks they take out have not leaked. Here is a picture of our monster oil drum removal:

I should also say that the oil drum was in the disclosure and we made the removal part of the original offer. When the inspector came later on, the pipe poking out of the ground was the first thing he spotted. Apparently it is something they are supposed to look for.

Uh oh. You have a buried oil tank?

Before I retired, I worked for an organization which was doing some expansion into an old part of town, purchasing old buildings here and there. Several of the properties had gas stations located there sometime in the past, which had buried gas tanks. Bad news. The EPA was VERY involved and strict mitigation regulations had to be followed. Major PITA every time we discovered a tank. If they weren't leaking, it wasn't quite as bad as a leaking one. Leaking ones were $$$$$ with lots of associated soil removal, testing, etc.

Gas stations are different though. They are industrial entities and their tanks are much larger than residential tanks. The rules for industrial installations are different too. In some states there is much more oversight than others even for residential tanks (in New Jersey, for example, I gather it would take a while to get the all clear). I would talk to an environmental company that does removal and testing in your state before worrying too much. In my area, there is so little concern about oil tanks that my neighbours think we are a little nuts to pay good money to have the yard dug up.

Our fuel company recommended a tank company and someone is coming tomorrow. Apparently they open the tank, pump out the sludge, drop a guy into the tank to clean it and look for holes. If there are no holes, they fill the tank with sand and we are done for $800. If there are holes, up comes the tank and some soil. Then they test the remaining soil and dig till they get a clean test. Then the oily soil is disposed of and the tank too. I am hoping our insurance company covers the soil removal if it comes to that. They don't cover the tank parts.

I don't want to be the bearer of (more) bad news here, but there is a chance you might end up having it removed anyway. You will have to disclose it at this point, since it's still there, and buyers generally want nothing to do with a tank on their property. If you do a web search for oil tanks and home buying you will see that the universal suggestion is to request the seller to have the tank removed, not just decommissioned. There is also a concern that unless the tank is fully removed you cannot tell 100% if it really did leak (no opinions on that one). Maybe you want to have a chat with a local home inspector to see what the recommendations are for your area? The insurance companies have an opinion on this as well, if you are to buy a house with an oil tank still in the ground. I know mine did. I just would hate to see you having to pay twice in the end.

I cant believe they buried a tank in 1987! Didn't they stop doing that years before that? Any chance it's not an oil tank, but a septic tank or something to do with a well? Found out some states have had grants to help with removal, NJ for example: http://beforeitsnews.com/green-living/2013/10/removing-your-buried-residential-oil-tank-2450006.html

Good luck!

Unreal!!! The removal company came this morning. the guy opened the pipe, put a stick in it and a camera. The tank is empty. There was never oil in it. Never used. He is getting a permit, returning to cut a 20 inch hole in it, photograph it some more and close it up. it doesn't need to be filled with sand. We will have proper paperwork and this potential nightmare will be over. Wow

That`s great news! Totally weird, but great! :)

Do houses in some parts of the country all have oil tanks buried in their yard? What kind of oil is it? What is it used for?

cmarlin20 - It is oil for the furnace.

The old furnaces used to run with oil rather than gas, and they needed a lot of it. So the HVAC company was burying a big metal container in the backyard and left a pipe poking out, through which the oil was replenished. These furnaces were generally replaced with gas ones in the 60s and 70s and the tanks were left abandoned. The heating companies were supposed to empty them, but they often didn't do so completely because they were reusing the oil and didn't want the sludge on the bottom. Over time, the tanks have started to corrode and may develop holes, and then the oil inside drips out contaminating the earth. The real problem comes when the groundwater gets contaminated, in which case more than one backyard can be affected and the cleanup can cost in hundreds of thousands.That's a not so short summary... I know too much about this since I was faced with the issue myself.

Here in country where we don't city gas, we replace in the ground tanks with above ground tanks. Our tank is in the basement. People who want to heat with gas, have gas tanks that are filled by gas trucks.

Do most houses today use natural gas? With no tank? Do many have propane? Is there another type of gas or oil used today? Just interested in what other people do.

In Southern California most cities and suburbs have natural gas in underground pipes. We are in rural foothills, and the gas company can't or won't put gas lines up here (they'd have to blast through huge boulders and risk landslides), so we all have exterior propane tanks.

The county of Riverside prohibits propane for cooking inside and also for inside fireplaces, so everything is electric or woodburning for the fireplace. Evidently propane stays low and is easy to breath in. It does not rise like natural gas. Our dryer, heater and water heater are on propane.

Outside our smoker uses pellets, the grill, the pool heater and two fire pits use propane.

I think of oil-fueled heat in the NE. In the Midwest we have natural gas. In Hawaii we have *very expensive*, oil-generated electric power (or propane).

I live in a rural area in Western NY, our heating choices are propane or oil. There are no natural gas lines in my hilly rural area. LYS - new boilers in my area run off propane or oil. The house had oil when I bought it and the oil tank was in the basement. I switched to propane and had the oil tank removed.

Here in semi-rural New Mexico, most houses have either propane or natural gas. Natural gas is preferred but it is only available to those along the lines. Natural gas is significantly cheaper than propane. There is the option of renting or buying a tank. If you own the tank, you can have it buried if you wish. If you rent the tank, it will be above ground. The benefit to owning is you are not locked into one propane dealer.

It all depends on where you live. A lot of people have propane or oil; it is not that uncommon at all. And underground storage tanks are still installed.

Really interesting info. Around here (SE), to have a functional buried fuel tank you must register it with the state and pay some insurance. I suppose you can do it for residential purposes if you follow these rules, but it seems to happen for commercial purposes. It's warm enough here that forced air heating is very common. I have seen old houses with signs of previous above ground tank installations in the coat closet or the middle of the hallway (!), so I can see why burying it in the backyard might have seemed like a great idea at the time.

Just a comment on leaving a tank in the ground. I have heard of excess rain popping a tank up out of the ground or it happening due to a high water table.

Another caution: the tank will eventually corrode and could fall-in on itself. This could easily happen when some unsuspecting person just happens to walk across the area. Are they filling it with sand or soil before closing it up? I'd want that if I were you.

Yes they are filling it with sand. Apparently they are following all the state rules and the town will sign off on it.

Laura are you by chance in Westchester or Dutchess County? IF you are in Dutchess, I would suggest abandoning the tank in place, no testing is needed. Westchester has a whole different set of rules.

sorry, i should have read all the follow up comments before posting. Looks like you got it covered.