Underground Oil Storage Tank - Charlotte, North Carolina

[Sean Boyle]

So I just finished my first flip in Charlotte, North Carolina...took a little longer than expected, but it's finally under contract.  The buyers had their inspection last week and I had a nice little surprise that there is an old underground oil storage tank next to the house that hasn't been used for a while.  In North Carolina, residential oil storage tanks are exempt from all technical requirements.  The state and county (Mecklenburg) does not require soil testing and there is not a procedure that must be followed to "close" out the oil tank.

The only problem is that the buyers are strongly pushing for a soil test and proper closure of the tank even though there is not a defined requirement for this.  There are no signs that the tank has any issues (no visible oil in the soil at the surface and no smell of residual oil in the area), and I'm worried that a soil test is only going to cause unnecessary costs.  

My question is: Has anyone else out there dealt with a similar issue and what was the end result?  Did you do a soil test?  Did you close out the tank yourself by filling with sand? Or, did you have to get a company to do it?  The companies that I've talked to are asking either ~$1300 to pump out any old oil (if there is any) and fill it with foam or ~$2500 to completely remove the tank.

[Curtis Waters]

Those costs seem reasonable.  Also consider some mortgage companies are afraid of the liability & require this to be solved prior to closing.  Even if you remove the tank make sure you get a soil test to ensure no leakage.  NC has a grant program for underground tanks but it is poorly funded.