Oil tank in basement of house I'm rehabbing.

[Josh Skogen]

Hey, Biggerpockets community, I have a house I'm rehabbing right now and I plan on renting it when I'm done. There's a room off the basement with a large steel tank that held oil for heating the house. I need to get rid of it. I know there's oil in it, but I don't know how much. What's the best and safest way to get it removed?

[Tom W.]

Josh Skogen I don't know about the codes in Indiana but I'm an HVAC contractor in NJ where I think we have some of the toughest codes in the country when it comes to dealing with fuel oil tanks. I have dealt with many of them over the years and the ones that are located in basements are by far the easiest to dispose of.
First, if there is oil left in the tank then there is almost certainly someone who will be willing to take it for free. 500 gallons of oil for an hour or two worth of work means a couple of months of free heat in the winter for someone. Even if there is some water in the tank it will not be a problem. The oil floats on top of water and the the point where the two meet is easily found with a paste that can be applied to a stick. The paste turns color in the presence of water so the pump suction will only be inserted to that depth.
Second, fuel oil is not like gasoline. It does not give off flammable vapors that will ignite from a spark. It takes a lot of effort to get fuel oil burning. I know a few oil burner mechanics who are smokers that routinely put out their cigarette butts in a can of oil. I have personally cut up many tanks with a sawzall and can attest that they will not ignite.
Third, the codes only dictate what must be done to abandon underground tanks or above ground tanks that have leaked. Above ground tanks that have not leaked are able to be drained, cut open, cleaned out then scrapped without any type of certifications. The water and small amount of sludge that is left in the tank is able to be absorbed with Speedi-Dri or Peat Moss and disposed of in the trash as non-hazardous waste.
Last, and maybe most important, the codes are clear in stating that the fill pipe and vent pipes must be removed. There have been numerous accidents over the years where indoor tanks have been cut out and removed but the fill pipes left sticking out of the wall. The oil company then comes to fill the tank on an automatic delivery schedule because the customer failed to call and cancel the service. The result is a basement full of fuel oil. That is a problem that no one ever wants to face.