Frequently Asked Questions
Q. Is there a law in New Jersey mandating tank testing?
A. No, however the rule of thumb is; buyers beware! Most mortgage and home insurance companies will insist upon it.
Q. If I want to have my underground oil tank tested, for my own gratification, how would I go about it?
A. You could contact your Home Heating Oil Company and ask they recommend a reputable testing company in your area. The testing company would then come to the site of your buried tank and drill four small bore holes, usually North, South, East and West, to below your tank and test the soil. There is also a caution here. If you are testing for insurance purposes, a person needs to make sure that the company that is doing the testing is an approved one as well as the methods they are using. For instance, if you are selling your home or simply trying to purchase insurance, a tank integrity test would do. It is also the cheapest way to go.
Q. How much money are we talking about?
A. Typically, the cost for a tank integrity test by an approved company would cost between $350 and $450. This would be for someone buying a home with an underground tank.
Q. What happens if they find contamination?
A. You can go back to your home heating oil company again, and ask them to recommend an environmental company to clean up the affected area.
Q. Suppose I decide I want to simply replace my buried tank with an above ground tank? How would I go about making arrangements?
A. If you are removing the tank because you want to replace it with an above ground model, of course soil test are in order Soil test typically cost anywhere from $550 to $750. We always recommend starting with your heating oil company. They are trained in the installation of some of the new, state of the art, above ground tanks. Some of the new models are made to blend with the style of your structure, just like the new refrigerator fronts.
Some Soil Testing Alerts:
Beware of testing contractors claiming to have soil testing labs onboard their truck. This is a false claim. Laboratories on trucks do not exist.
Beware of removal contractors offering “low-cost” soil testing services. If a company offers tank removal/soil remediation service, in addition to soil testing – this is a conflict of interest. Turn them away. Remember the old adage: “You get what you pay for”. If you use price as your litmus test, you may wind up paying more than you bargained for, in more then money.
Remember, the full service dealer members listed on this web site are your best source of technical, as well as physical help with any tank problem you may have.
If you are not in the South Jersey area, Email us with the name of your county and we will send you a list of names.
If you are looking for a home insurance company that will cover your tank, let us help you find one. Simply email us and we will try to help you. If you have a fax number where we can send you a list, please include that in your email.
S2840 — Underground Storage Tank Bill
Synopsis - Makes various changes to law governing uses of monies in the Petroleum Underground Storage Tank Remediation, Upgrade, and Closure Fund.
- This bill would make various changes to the law governing the uses of money in the Petroleum Underground Storage Tank Remediation, Upgrade, and Closure Fund.
- The bill would authorize loans and grants from the fund for the closure and replacement of petroleum underground storage tanks that are not regulated.
- Existing law allows the use of the moneys in the fund for those tanks only to finance the remediation in the case of a leak.
- This bill would make the owners of those tanks eligible for loans or grants for closure and replacement with an above-ground or underground tank even if there is not a leak.
- The bill would also make loans available to regulated tank owners who have met the upgrade requirements but who want to upgrade their systems beyond the minimally effective system.
- The bill would increase the overall net worth cap for eligibility for financing from $2 million to $3 million.
- Further, the bill would increase the eligibility criteria for grants.
- Under the bill, in order to qualify for a grant, an owner or operator’s income must be under $250,000 per year and his net worth, exclusive of primary residence and pension must be under $500,000.
- However, for grant applicant with an income over $200,000 per year, the applicant must pay no more than $1,000 of the eligible project costs.
- Existing law allows for higher grant and loan caps for facilities located in areas designated Planning Areas 1 and 2, and in designated centers.
- This bill would increase the grant cap for facilities in those areas from $750,000 to $1,000,000 and would allow the higher loan and grant cap for financial assistance for facilities located in the Highlands Region.
- Finally, the bill would reduce the time over which a property must be operated in substantially the same manner in order to satisfy a conditional hardship grant from 15 years to five years.
Oil Tank News
Many members of the Oilheat Association of South Jersey offer services for the cleaning, repairing, and replacement of underground storage tanks (UST's).These companies are New Jersey state approved to test, install, and remove underground tanks along with associated soil testing and remediation. Their expertise extends to testing tanks for leaks using only State and Federally approved testing methods. For your convenience, we have included here the basic requirements regarding New Jersey's UST Legislation. If you're considering upgrading your underground tank, we can assist you in finding a local service provider.
Contrary To What You May Have Heard About Tanks...
Unfortunately, some misconceptions about fuel storage tanks exist. These have been cause either by a lack of factual information or by misinformation by competitive fuel sources. The following is provided to help set the record straight:
- Today's tanks are designed with corrosion-resistant materials for long life and safety.
- According to a scientific study by the Environ (NOT ENRON!) Corporation, less than 1% of all underground tanks nationwide ever experience a release.
- Heating oil moves slowly in most soils, so any discharge is confined to a small area.
- A tank on the property puts the homeowner in charge of supply and assures "never running out" regardless of the weather and market conditions.
- Obtaining comprehensive homeowners insurance coverage is not an issue—it's easy and there are many companies in New Jersey that affordably offer this coverage for homes with storage tanks.
- Homeowner pays only for fuel received—never gets estimated bill.
NJ UST Legislation: New Jersey's Underground Tank Law
REMINDER: New Jersey Residential Homes are not regulated.