What am I responsible for as a tank owner/operator?

If a heating oil tank is present on your property, you are responsible for maintaining it, cleaning up any spills and closing it properly if you stop using it. 

You should regularly monitor the tank system to ensure that everything is working properly and know who to call if repairs are needed. DEQ’s Heating Oil Tank Monthly Checklist is a useful tool for understanding how to maintain a heating oil tank.

I have stopped using my tank. Do I have to do anything with it?

If you stop using your tank (e.g., you switch to a heat pump or replace the old one), Virginia’s statewide building code requires you to close your old heating oil tank properly. Closing the tank involves either removing the tank or filling it with a solid, inert material. The fuel supply lines need to be capped or crimped to prevent an accidental delivery to the old tank.

Localities differ on whether they allow a tank to be closed in place rather than removing it from the ground, so be sure to check with your local building official before starting the process. Your local building official may also require you to get a building permit before you close the tank and may attend the closure to ensure it is done properly. Improperly abandoned tanks can (and often do) lead to tank leaks, which can be expensive and disruptive to clean up. You may also find it difficult to sell or refinance your property if you have not closed your out-of-use tank properly.

How do I know if my tank is leaking?

There are several situations that could reveal that your aboveground or underground tank system is leaking. Note: If there’s an emergency spill, please contact your local fire department.

• Heating Oil Tank system fuel use or furnace troubles: If you find that your tank is running out of fuel more quickly than usual, that could be a sign that your tank has developed a leak. Keeping track of all fuel deliveries is a good way to keep an eye on your tank’s condition. Report sudden changes in the oil level in your tank or problems with your heating system -- including your furnace -- to a heating repair professional or your oil supplier. Any unexplained presence of water in your tank may also be a sign of a leaking tank and can impact your furnace.    
• Smelling or seeing petroleum contamination: Oil puddled around the tank, in your yard or basement, or strong petroleum vapors in your house or water supply are signs your tank system is leaking or may have been overfilled by your supplier. Report these sorts of conditions to your DEQ Regional Office immediately.
• Property Assessments: Oil leaks from tanks may be discovered during soil boring assessments for property transactions.

What if my oil tank leaks?

• Report the release to DEQ:  IMPORTANT --  In case of an emergency situation (such as an aboveground tank falling over, an underground tank  overflowing due to heavy rainfall or flooding, or oil flowing into a creek or other waterbody) please contact your fire department immediately. If you know your tank is leaking, you must report the leak to the local DEQ Regional Office. If a consultant is involved, they may report on your behalf. DEQ will evaluate whether the risk is low and no action is needed, or if measures are needed to stop a release and clean it up. Cleanup work performed more than 24 hours prior to reporting to DEQ may be ineligible for reimbursement. Note that regardless of when the tank leaked, the person legally responsible for the cleanup is the tank owner at the time the leak is reported. 
• Hire an environmental consultant: Tank owners should contract with an environmental consultant to perform the cleanup. Consultants may be found using Internet searches or Yellow Pages. DEQ regional tank staff will work with you and your consultant to determine the amount of cleanup required by DEQ through evaluating individual risk-based site factors. 
• Tank closure: In most cases, the tank will need to be taken permanently out of service to prevent further leaking and contamination of soil and/or groundwater.

Note: If a leak is reported as a result of an assessment for a property transaction, the buyer, lender or insurance company may require more work than DEQ for investigation and cleanup.

Is there funding assistance for cleanup if my tank leaks?

• Virginia Petroleum Storage Tank Fund (VPSTF): DEQ maintains the Virginia Petroleum Storage Tank Fund (VPSTF), which reimburses tank owners for eligible costs to clean up a tank leak. The fund has been accessed by many tank owners in Virginia to successfully assist with petroleum releases. By following appropriate reimbursement procedures, the tank owner may be eligible for reimbursement of additional qualifying expenses.
• Eligible costs: Eligible cleanup activities may include soil and water sampling, emptying the tank of oil and, if necessary, removing and disposing of petroleum contaminated soil. VPSTF does not reimburse for costs associated with tank removal, repair or replacement.
• Cleanup pre-approval requirement: DEQ requires all site work to be pre-approved before activities are eligible for reimbursement. DEQ tank staff will work with you and your consultant to establish the scope of work necessary to address the contamination from the leak.
• Financial responsibility (VPSTF deductible): Tank owners are responsible for paying for the first $500 of cleanup costs. This is usually handled by deducting the first $500 of eligible costs from the amount DEQ will reimburse.
• Insurance coverage: Some home insurance policies cover some of the costs associated with a home heating oil tank release; however, VPSTF does not reimburse costs covered by an insurance policy. DEQ may require you to submit a copy of your insurance policy for review. DEQ will also require you to make a claim on your policy before reimbursement if your policy covers any cleanup activities.

Note: Site activities above and beyond that required by DEQ for cleanup, such as tank removals or closures for property transactions, are not eligible for reimbursement.

Does DEQ pay to remove my tank?

DEQ does not reimburse to remove heating oil tanks or close them in place. VPSTF was created to reimburse tank owners for cleanup costs required by DEQ. You are responsible for all costs outside of the cleanup required by DEQ, including tank closure in accordance with local building codes.

What can I expect if I’m selling or buying property with a heating oil tank?

• Who is involved with the process? Buyers and sellers of property and their real estate representatives are encouraged to confer with lenders and insurance agents prior to the sale of property with heating oil tanks. Banks and insurance companies may place conditions on financing or insurance policies when an underground heating oil tank is present. DEQ enters the picture if a leak from a tank is discovered.
• Property inspection confirms an aboveground or underground tank: A property inspection may reveal the presence of an underground heating oil tank. Parties involved in real estate transactions often require soil samples to ensure the tank has not leaked. The samples will be submitted to a laboratory for analysis. If soil contamination is detected, DEQ should be notified by the tank owner.
• How much is it going to cost me? It depends. While DEQ has funding that may assist with cleanup costs, buyers and sellers are responsible for paying for activities that are above and beyond those required by DEQ for cleanup or to stop the tank from leaking further. For example, if a tank leak is discovered during an inspection, DEQ may approve reimbursement only for the cost of removing the oil from the tank, while the buyer, lender and/or insurance company may require tank removal. These costs would not be eligible for reimbursement by DEQ. Buyers and sellers are encouraged to obtain pricing from consultants for different scenarios to get an idea of current market costs. 

Note: The local building official or fire marshal should also be contacted for tank closure protocol.