All Forum Posts by: Lawrence P. Schnapf

In NJ, i would expect home tank removal without contamination probably would cost around $10K if you're using a licensed environmental professional (recommended) as opposed to a tank company (not recommended). The bigger ones might cost upwards of $20K. if soil is contaminated, the cost depends on the volume of soil that needs to be removed. I tell clients to expect $25K-$50K as a reasonable worse case estimate. Once groundwater is contaminated, things get complicated and costly-especially if the home and others in the area use on-site drinking water wells.  

@ Daniel Smyth and if the tank leaked, he would be responsible for a cleanup. tank cleaning does not address petroleum that may have leaked from the tank. several years ago, i had a client that incurred $400K in cleanup costs for a diesel tank that had leaked for years. sampling should ALWAYS been done regardless if tank is removed or closed in place. 

Environmental Issues:

1. is drinking water provided by on-site water wells. If so, verify water complies with drinking water standards

2. If property serviced by septic systems, confirm they are properly functioning and permitted

3. If individual homes have above ground storage tanks, verify that the tanks have not leaked. Property owner would be responsible even if used exclusively by the tenant.  

@Jordan B.- There is a nuance that needs to be clarified. while the past owner at the time of disposal can ultimately be liable, a developer is not going to wait for the state to commence legal action. Once a purchaser takes title and start moving dirt, they will become liable. that is why purchasers tend to enroll in the brownfield or voluntary cleanup programs so their work is "blessed" and will not result in additional liability. in the case of self-storage project, most of the remedy will be what you would have done anyway as part of construction though there may be some "delta" of additional costs if the soil vapor requires installation of an SSDS (as explained above). In addition, a developer that enrolls in a state program and incurs significant "delta" costs could themselves seek cost recovery from the responsible party.  

Couple of points to consider. 

(1) Did the sampling detect contaminated soil or contaminated soil gas. If the contamination is simply groundwater contamination, this may not be a significant issue for you. There are defenses to liability for property owners whose property is impacted by contaminated groundwater from an off-site source so long as you exercise what is known as "reasonable care". 

(2) since you will be using this for self-storage, this will be considered a commercial, not residential use, and many states have less stringent standards for commercial properties since people are not occupying the property 24/7. 

(3) If the levels in the groundwater would pose a risk of vapor intrusion (vapors migrating up from groundwater), you can install a passive sub-slab depressurization system (ssds) that acts like a radon system-capturing the vapors before they can get into the structures.

(4) if soil is contaminated and you plan to pave the surface, this will generally be sufficient remedy if the soil contamination is at depth. If is is shallow, you may want to develop a soil management plan to make sure soils are properly managed. 

(5) much of the foregoing depends of the state where the site is located. what state is involved. It is usually best to go through a state voluntary cleanup program so you can get a no further action letter that will assuage concerns of any lender and also provide you with liability protection.

(6) if the concern is solely groundwater, you could also get an environmental insurance policy.      

On the other hand, I've had lots of homes where either the tanks did not leak or if they did, they used no. 6 oil which is very viscous and does not migrate very far so costs will be limited.  

if the tank cannot be removed because of its proximity to the building, you should require sampling per the NJDEP guidance and that the work be done by a licensed site professional. I've had some unusual home UST issues during the course of my career. hopefully your situation will be rather routine. 

BTW- one quick way to determine if the tank is leaking is to do a dip stick test with a paste that turns color when it comes into contact with water. It does not rule out leaking when groundwater is deeper than the tank but if water gets into the tank, it generally means oil is getting out of the tank.....

Note in NJ, heating oil tanks below 2,000 gallons are unregulated though landowner can still be liable for cleanup.

Sometimes closure in place is appropriate where excavation could undermine building. Closure in place usually means draining tank, cleaning it and filling it with inert material. However, the concern should be if the tank has impacted soil and groundwater. are they proposing sampling in connection with the decommissioning? If not, this should be done to determine if cleanup is required. If so, then you may want to have a consultant estimate reasonable worst case scenario to determine costs and see if you can get a credit. does home have on-site drinking well or is it served by city water? 

In addition, NJ has licensed professional for home heating oil tanks. any decommissioning should be done by a licensed professional. NJDEP has a website about home heating at https://www.nj.gov/dep/srp/unregulatedtanks 

the excerpts you shared do not appear to give the seller to terminate for environmental issues but only has option tor remediate or do a hold back. BTW- there really is no "acceptable" amount of mold. The EPA guidance suggests abatement options based on the square footage of mold.  

If you are waiving, you need to determine the source of the water moisture causing the mold and the extent of the mold. sometimes, mold can grow in non-visible areas and can be worse than visual assessment. 

unclear from your post what your contract says. For residential agreements, usually buyer has the option to terminate the agreement, not seller. and there is an implied obligation to act in good faith in all contracts. However, for commercial contracts, the buyer can notify the seller of a environmental defect and if the parties cant agree on resolution, either party may terminate. so you need to read your contract.