[The following is an excerpted from “Environmental Liability: Managing Environmental Risks in Corporate, Real Estate and Brownfield Transactions” written by Larry Schnapf and published by Lexis Law Publishing]

State Regulation of Home Heating Oil Tanks 

Heating USTs Used for Commercial On-site Use:

	The federal program does not regulate heating oil USTs used to heat the premises where the UST is located. However, the California, Delaware, Kansas, Maine, Maryland, Massachusetts, Montana, New Mexico and Rhode Island programs regulate heating oil USTs used for heating commercial premises regardless of size. Virginia exempts such USTs below 5,000 gallons, Pennsylvannia does not regulate those USTs with a capacity below 3,000 gallons, New Jersey exempts heating oil USTs used for on-site comsumptive use at commercial premises with a capacity below 2,000 gallons while the cutoff for Minnesota, Nebraska, New Hampshire, New York and Washington is 1,100 gallons. 

Heating Oil USTs Used for Residential Premises:

	The vast majority of states follow the federal approach and do not regulate these USTs. Delaware, Maine, Maryland, massachusettes and Montana do not exempt these USTs regardless of size while Kansas only exempts those that serve single family homes. Virginia exempts those USTs used for heating homes if they have a capacity of 5,000 gallons or less. Pennsylvannia does not regulate home heating oil USTs below 3,000 gallons and New Jersey exempts such USTs with a capacity of 2,000 gallons or less. The cutoff for California, Minnesota, Nebraska, New Mexico, New York and Washington is 1,100 gallons. 

Motor Fuel USTs Used fir Farm or Non-Commercial Use

	Maryland and Oregon only exempt this category of USTs which are used for single-family residences while Florida has established a cutoff of 550 gallons provided the UST is used to store motor fuel for a residence or for agricultural purposes. Delware, Maine, massachusettes, montana and Rhode Island exclude from regulation USTs used to store motor fuel for non-commercial uses on farms and residences that have a capacity of 1,100 gallons or less. 

	Although many states regulate heating oil or motor fuel USTs, owners and operators of these USTs may not necessarily be subject to the full panalopy of the UST regulations. Often times, these reduced regulatory requirements are based on the size of the UST. For example, some states which regulate heating fuel USTs will only require owners and operators to comply with the release reporting and corrective action requirements while others only require adherence with the design standards. 

Cleanup Liability for Home Heating Oil Tanks

While property owners in those states may not have to register their heating oil tanks nor comply with the UST design standards, the UST owners could still find themselves liable for cleanups associated with leaking home fuel oil USTs under state mini-Superfund or other environmental laws. Homeowners who become aware of a leak may also be required to notify the local authorities. 
	Concern over leaking home heating oil USTs is increasing because many of these tanks are between 30-50 years old. Fortunately, since heating oil is rather viscous, it does not tend to migrate very far so that cleanups are usually much less expensive than those involving gasoline USTs. Nevertheless, heating oil USTs are increasingly being viewed as ticking timebombs by homeowners and prospective buyers. As a result, potential home buyers are being increasing advised by their lawyers to insist that the home heating oil tanks be removed prior to the closing or that the tanks be tested and any soil contamination removed. 
	There are a number of steps that homeowners can take to verify if their heating oil tanks are leaking.
	1.  A number of fuel dealers in several of the northeastern states have begun offering service contracts to their customers which protect against the costs associated with UST leaks. These arrangements which cost around $50-$60 a year and cover the costs of removal and replacement of the tank as well as the remediation of soil contamination up to $100,000. The protection will also extend to purchasers of the property who agree to be serviced by the same fuel dealer.
	2. Homeowners could conduct their own tests to determine if their tanks are leaking. During the summer, the owner could monitor the oil level in the tank over the course of a few weeks using a large measuring stick. to ensure that the oil level remains constant. Because most heating oil tanks are buried about six feet deep, the measuring stick should probably be at least eight feet in height. If the level begins to drop, it could be a tipoff that the tank is leaking. At that point, it would be advisable to have the tank tightness tested by a professional..
	3. Another sign that there may be a problem with the heating oil tank is if problems are encountered starting the burner every season. If these problems persist, the homowner may want to test for water as decsribed in the next paragraph.
	4. Homeowners could also test if there is water at the bottom of the tank.. Tanks will usually always have some minor amount of water because of condensation so the presence of  water does not necessarily mean that the tank is leaking. However, over the course of years,  the water can corrode the tank. A significant amount of water probably means that the tank has developed holes and that the oil may be escaping into the surrounding soils. 
	A simple way to test for water is to coat the measuring stick with a “water-finding paste” that is available in hardware stores. The paste is normally green but turns red when it comes in contact with water.,   

	The average cost to remove a typical heating oil tank is about $2,000. If  the tank leaked and caused soil contamination, the remediation costs for the soil alone could costs in the $20-$50,000 range. If groundwater has been contaminated, the costs could exceed $100,000. 	Unlike commercial USTs, most states do not have financial assistance programs to help out homeowners with the costs of UST removal. One innovative approach that has been followed by some homeowners is to request the fuel dealer to help out with the costs of  the removal.  In many cases, the fuel dealers have agreed to help with the costs because they wanted to keep their customers.