Residential Oil Tanks

TO:

FROM: Susan Goranson, Principal Analyst

RE: Residential Oil Tanks

You asked if there is a state law requiring residential underground oil tanks to be removed and if there is financial assistance available if a tank must be removed

There is no state law that requires nonleaking residential underground oil tanks to be removed. The state fire marshal is responsible for the installation and removal of residential underground fuel oil storage tanks. The local fire marshal must be notified before a tank is removed. If the fire marshal finds any oil leakage he must report it to the Department of Environmental Protection (DEP). The DEP can require homeowners to remove leaking tanks. There is currently no state fund to help homeowners pay for removing a tank.

A number of towns have passed ordinances regulating underground oil tanks. Sellers must notify any potential buyer of an one-to four-family house if there is an underground fuel tank.

The installation and removal of residential underground fuel oil storage tanks is governed by requirements of the state fire marshal (CGS ' 29-320) and in some towns by local ordinance. But any leakage from residential tanks must be reported to the DEP (CGS ' 22a-450). There is no state

requirement that residential underground fuel oil storage tanks be removed, according to John Hughes of the state fire marshall's office. Local fire marshals only require removal of residential fuel oil tanks when they present a hazard.

When a tank is removed, the local fire marshal must be notified. The local fire marshal usually works closely with the firms that remove residential tanks. He must be there when the tank is removed and must check for any leaks. If a leak is found he must notify DEP. Likewise if someone wants to empty a tank and fill it with sand, the local fire marshal must approve it, according to Hughes.

Installation and removal of underground residential fuel oil tanks is governed by standards of the National Fire Protection Association (NFPA). NFPA 31 prescribes tank construction standards and requires underground tanks to be made of cathodically protected steel or of corrosion resistant materials such as fiberglass reinforced plastic or special alloys. It also specifies requirements concerning the tanks excavation, foundation, and backfill. NFPA 30 specifies tank removal requirements which include removal of tank contents and disconnecting piping at tank openings. The standard also allows underground tanks to be abandoned in place when filled with an inert material, such as sand.

In the absence of state regulations restricting these tanks, some towns have passed ordinances prohibiting the installation of new underground residential fuel oil storage tanks. Towns with these ordinances, tend to be near lakes or other water sources.

Commercial fuel oil tanks of 2,100 gallons capacity or more are regulated by the DEP. The department requires removal of unprotected steel tanks after 20 years, recordkeeping on loss and gains, tank testing, and proof of financial responsibility for the tank (CGS ' 22a-449 (d)). The law specifically excludes residential oil tanks from the DEP requirements

The law requires people offering to sell, exchange, or lease with an option to buy any one-to four- family residential dwelling in Connecticut to give prospective purchasers a written residential property condition report before executing any binder, contract to purchase, option, or lease with an option to buy. The report specifically asks the seller to disclose whether or not there is an underground fuel tank, and if so its location and age. The law requires every agreement to purchase residential real estate which requires the report to include a requirement that the seller credit the purchaser $300 at closing if he fails to furnish it.

The law specifies that the disclosure requirement may not be construed to (1) create any new implied or expressed warranties by the seller; (2) require the seller to obtain inspections, tests, or other means of determining the physical condition of the property, or (3) mean representations beyond the seller's actual knowledge of the property or be used to impute constructive knowledge by the seller (CGS ' 20-327b-e).