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Information for Buyers, Sellers & Realtors

Below is a checklist of issues concerning leaking residential oil tanks you should be aware of when buying, selling, or listing a property. In general, the points below apply to typical petroleum releases on a residential property, whether heating oil, diesel or gasoline. This list is not exhaustive. A site inspection is necessary for Cedar Rock to give specific advice in your situation.

Regulatory Issues

  • Residential oil tanks are generally not regulated. Soil contamination is the concern in most cases, not the tank.
  • Leakage from oil/gasoline tanks must be reported to the State. See § 143-215.85. Required notice.
  • Soil cleanup and environmental assessment is not required in most cases when the leakage is from an underground tank.
  • Assessment and cleanup work is required for above ground tank releases.
  • Assessment of contaminated soils and any remediation work must be performed by a NC Licensed Geologist or an Engineer.
  • Properties with soil contamination exceeding applicable standards require a Notice of Residual Petroleum to be filed with the county Register of Deeds prior to conveyance of the property. See NCGS 143B-279.11 (d).

Selling & Buying Properties

  • For homes built in or before the 1960s assume the past use of oil heating.
  • Even if a tank was removed, you should assume that the soils are contaminated unless there is proper documentation confiriming that there was no release, or that it was cleaned up to the required standards.
  • An unconditional No Further Action letter from the State is usually required by buyers and banks prior to the sale of a property with soil contamination.
  • Do not rely on a building inspection to address oil tank concerns.
  • Do not assume that undocumented or poorly documented tank abandonment or removal work adequately addresses oil tank concerns.
  • Property owners often do not know that an underground tank is on their property.
  • Both aboveground and underground tanks present potential environmental, health and financial liability.
  • Water supply wells on the property or nearby usually indicates that soil cleanup and/or environmental assessment will be required. Relocation of water supply wells and/or abandonment of wells may also be required.
  • Leaking aboveground tanks beneath residential structures usually require expensive soil cleanup and environmental assessment. Vapors from tanks leaking under houses are also a significant health risk.
  • Request a site inspection for possible soil contamination as soon as possible to allow completion of necessary work prior to closing.
  • Cedar Rock usually recommends abandonment of underground tanks whether they have leaked or not to prevent future problems.
  • You may not be concerned about soil contamination, but the next buyer may require the necessary work to be completed. You will probably be responsible for this expense.

Site inspections essential.

Always schedule a site inspection of any property of interest that may have, or may have had, a heating oil tank. Cedar Rock will locate any tanks located on the property and determine whether they have leaked. Cedar Rock will then advise you on the regulatory requirements that apply in your situation, and the possible courses of action. Cedar Rock is able to provide the services required to satisfy regulatory requirements and help you obtain a "No Further Action" letter from the NCDEQ. Call us at 336 684-2734 or use our online contact form to schedule a site inspection now.