How Much Does Oil Tank Removal Cost?
Understand the full scope of oil tank removal costs. See how the tank's location, condition, and potential soil testing shape the final project price.
Homeowners may need to remove an oil tank when switching heating sources, selling a property, or if the tank becomes an environmental risk due to age. The cost for this specialized service can fluctuate significantly. This overview will explore the expenses associated with oil tank removal.
Average Cost of Oil Tank Removal
The cost to remove a residential oil tank is influenced by the tank’s location. For aboveground tanks, which are more accessible, homeowners can expect removal costs to range from $300 to $1,000. These tanks are often located in basements, garages, or outdoors.
Underground storage tanks (USTs) require excavation, making them more costly. The removal of a buried tank generally ranges from $1,000 to $3,000 or more. These figures are baseline estimates and do not include potential complications, such as soil contamination, which can substantially increase the final price.
Key Factors Influencing Removal Costs
Tank Location & Accessibility
Above-ground tanks located in basements or outdoors are the least expensive to remove due to their direct accessibility. The process becomes more complicated and costly if the tank is in a hard-to-reach area, such as a crawl space or a location that requires disassembly.
Underground tanks inherently involve higher costs because of the necessary excavation work. The price increases further if the tank is situated under a permanent structure like a deck or driveway, which may require specialized equipment.
Tank Size & Condition
The size or capacity of the oil tank impacts the cost of removal. Larger tanks, those exceeding 1,000 gallons, require more labor and heavier equipment to lift and transport. Disposal fees, which can range from $200 to $700, are also often tied to the tank’s size.
A tank’s condition is another variable. A well-maintained tank can be removed with standard procedures, but if a tank is corroded or actively leaking, the project becomes more complex and triggers the need for further environmental assessment.
Soil Testing & Contamination
For underground tanks, soil testing is part of the removal process. After the tank is excavated, soil samples are taken from the surrounding area to test for contamination. This service can add between $250 and $550 to the project cost and is sometimes required by local regulations.
If soil testing confirms the presence of contaminants, the project’s cost increases significantly. Soil remediation is a separate procedure, with the industry average for a standard residential cleanup ranging from $10,000 to $20,000. For more extensive leaks, costs can exceed $100,000.
Permits and Local Regulations
Most local governments require a permit for oil tank removal. Permit fees typically range from $30 to $200 and are usually handled by the contractor. Hiring a licensed professional is often mandatory to ensure that all procedures, from tank cleaning to disposal, are performed according to regulations.
Backfilling and Site Restoration
Once an underground tank has been removed, the excavated area must be filled. The cost of backfill material, such as clean soil or gravel, and the labor can cost between $150 and $600, depending on the size of the excavation. Basic site restoration is typically included, but more extensive landscaping to return the area to its original condition may incur additional charges.
Understanding the Scope of Work in a Quote
When evaluating proposals from contractors, it is important to ensure the quote is comprehensive to avoid unexpected charges. A detailed quote should clearly itemize every step of the removal process, which the contractor typically handles. The document should specify the fees for pumping out any remaining oil from the tank and the subsequent cleaning process.
For underground tanks, the quote must detail the costs of excavation, including the labor and equipment used. The physical act of cutting, lifting, and removing the tank should be listed, followed by the charges for transporting and legally disposing of the tank at a certified facility. A thorough proposal will also include a clause addressing the process and potential costs if contamination is discovered.
The Removal Process
After selecting a contractor, the team prepares the site by pumping any residual oil and sludge from the tank and lines. For safety, the tank is then cleaned to remove flammable vapors, a process known as degassing.
The next phase is the physical removal. For underground tanks, this involves excavating the surrounding earth, while basement or above-ground tanks may need to be cut into smaller pieces for transport. Once the tank is removed, a municipal inspector or an environmental consultant may visit the site to inspect the excavation and take soil samples.
With the tank gone and the site cleared, the contractor backfills the excavated area. The final step involves providing the homeowner with all necessary documentation, which may include the disposal receipt and a certificate of removal.
Additional Financial Considerations
If the oil tank was the primary source of heat, the cost of converting to a new system, such as natural gas or an electric heat pump, must be factored into the overall budget. A new furnace installation can range from $2,500 to $10,000.
Some states offer financial assistance to help offset these costs, but aid is often dependent on the state and may have strict eligibility requirements, such as being income-qualified or having a confirmed leak. Homeowners should research their state’s environmental agency to see if any aid is available.
Removing an old oil tank, especially an underground one, can improve a property’s value and marketability. Eliminating this risk can make it easier to secure homeowner’s insurance and can be a strong selling point in a real estate transaction.