How Much Does it Cost to Decommission an Oil Tank?

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Updated 08/2024.

What Does it Mean to Decommission an Oil Tank?

A decommission can be completed by the homeowner (we don’t recommend it) or a contractor and must be certified by a licensed service provider, after which a test for contamination must be done on the soil.

Why is it Important to Decommission a Portland Heating Oil Tank?

By law, Oregon home sellers must disclose a current or past oil tank to potential buyers, even if it’s been decommissioned. Owners may also be required to address the issues.

Buyers have also become more vigilant about oil tanks, likely due to the Environmental Protection Agency‘s (EPA) reclassification of carcinogenic chemicals in heating oil, like naphthalene and ethylbenzene. It’s best for homeowners to be prepared. 

Since the DEQ recommends soil re-testing for any properties with oil tanks decommissioned before 2009, buyers may want to see a recertification before finalizing a home purchase, even though Oregon doesn’t require it by law.

What Does It Cost to Decommission a Heating Oil Tank in Portland?

Pricing involves the removal of the tank and any soil contamination. The overall cost depends on various factors, such as removing contaminated soil which I cover in a moment, but the good news is that in most cases, a professional can perform a risk assessment in compliance with Oregon law without removing soil. A risk assessment and oil tank decommission is typically around $5,000. This number is based on my long-standing experience (licensed since 2003, over 2,000 home sales). Also, your home insurance may help, which I will cover in a bit. Regardless, it’s important to know how it can increase, sometimes much higher.

One important factor here is size. Some underground oil tanks can be quite large, requiring more materials. On average, for a 550-gallon or smaller tank, you could be looking at anywhere between $1,000 and $2,000, and the price goes up from there. Keep in mind that these fees are for a non-leaking tank. If your tank is leaking, you’ll need to contend with cleanup fees, which we’ll cover in a moment.

SizeFees for a Non-Leaking Tank
550 gallons or smaller$1,000 to $2,000
1,000 to 1,499 gallons$1,600 to $2,500
1,500 to 1,999 gallons$2,200 to $2,700
2,000 to 2,999 gallons$2,400 to $2,900
3,000 gallons and up$3,000+

These prices, of course, don’t take into consideration other factors, like the presence of a soil leak or the fees paid to the HOT (Heating Oil Tank) Program fees. These fees include:
  • Clean Decommissioning: $104/project
  • Cleanup Report (Soil matrix) (Simple): $260
  • Cleanup Report (Generic Remedy) (Intermediate): $364
  • Cleanup Report (Risk-based) (Complex): $468
  • The type of the tank: (indoor, outdoor, buried, or above ground)
  • Difficulty of extracting the tank
  • If the tank has leftover oil. The oil must be disposed of appropriately.

If cleanup is required for decommissioning, the cost will vary depending on how severe the contamination is. Sites with higher degrees of contamination may require soil removal and disposal. If groundwater has been contaminated, more testing and risk assessment need to be done.

How Decommissioning an Oil Tank Works

This process is fairly simple. Since these tanks are less prone to leaks and spills, most of the decommissioning process involves safely disconnecting the tank from existing pipes and removing the tank from the property to dispose of it through the proper channels. In the case of a leaking pipe, soil removal and testing may be necessary to ensure no contamination is left behind.

There are two options for decommissioning a below-ground oil tank: (1) total removal of the oil tank and (2) filling the disconnected oil tank with an inert substance. In both cases, soil contamination remediation is usually necessary, as a leaking or old oil tank can contaminate the nearby soil.

Most oil tank decommissioning services do this remediation at the same time as the tank removal since they are already digging up the tank itself. However, if you’re leaving the tank buried (such as when removal would be too costly or the tank may be prone to damage if moved), you’ll need to have soil remediation done separately, along with the soil testing that entails.

If you’re leaving behind the oil tank, you will need to complete the proper forms for a decommissioned oil tank with the Portland government and fill the tank with an inert substance, such as sand. Leaving an oil tank underground, even an empty one, can pose contamination risks from fumes and toxic substances. This is why anyone decommissioning a below-ground oil tank is required to fill the tank itself for the safety of the surrounding soil and your home.

Can I Decommission an Oil Tank Myself – DIY?

Where to Get Information about Decommissioned Tanks in Portland

If you own a property with a decommissioned oil tank, double-checking its history and gathering as much information as possible will help you prepare for potential buyers’ questions.

Learn Whether a Property Has an Oil Tank

For homes in the city of Portland only, you can find oil tank records on portlandmaps.com by following the steps below. Remember that finding no oil tank permit does not necessarily mean one doesn’t exist. Also, the images are old and blurry, making them difficult to read.

  • Type the property address in the upper right-hand corner of the search bar.
  • On the right-hand side of the screen, scroll down and click “Permits & Zoning,” followed by “Permits.”
  • Scroll down to the section called “Underground Storage Tanks.” (Note: If you don’t see this section, the property is in an area where permits are unavailable or there are no permits.)
  • Click on the blue hyperlinked numbers in the “ID” column, and you’ll get an image of the permit you can download. The permit will show you where the oil tank is on the property.

Learn Whether an Oil Tank Has Been Decommissioned and Recorded

For this information,  you will need to visit the DEQ website.

  • Enter the property address and click “Lookup.”
  • Click on the blue hyperlinked number in the “Log Number” column. From here, you will learn (1) if the tank has had any known leaks, (2) who was in charge of the cleanup, and (3) if it has been decommissioned. (You will see a “Closure Letter” at the bottom. If you don’t see one, the tank probably wasn’t decommissioned.)

Do an Oil Tank Scan

You can also hire a professional to come to your property and do an oil tank scan to see if you have one on your property. If they find one, they will typically recommend testing the soil around it.

Have Questions About Decommissioned Oil Tanks on Your Property?

If you’re wondering about your potential liability, or if you simply want to know more about your home’s current market value, get in touch with our top 1% seller’s agents at 503-714-1111 or chat with the bot on our site. We’ve been successfully helping people sell homes in the Portland metro area for more than 20 years and would be happy to assist you in any way we can.

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