Underground Oil Tank Removal: What Homeowners and Businesses Should Know

Underground Oil Tank Removal: What Homeowners and Businesses Should Know

Corroded underground oil tanks exposed in an excavation trench during removal, showing rust and contamination risks.
Several old, heavily corroded underground oil tanks exposed during excavation. These tanks once used to store heating oil or fuel display significant rust, staining, and evidence of long-term deterioration, illustrating the environmental risks that aging USTs pose to soil and groundwater. In the context of this guide, the image highlights why timely removal is essential: old steel tanks can leak, contaminate surrounding soil, and create costly remediation and liability issues for homeowners and commercial property owners. File photo: Ostariyanov, licensed.

MALIBU, CA – Underground oil tanks, often installed decades ago, were once common for storing heating oil or fuel. However, over time, these tanks can deteriorate, leak, or become obsolete. Underground oil tank removal is a critical step for homeowners and businesses to ensure safety, prevent environmental contamination, and comply with regulations. 

Mayfield Environmental Solutions provides expert guidance and professional services to safely remove and manage these tanks. This guide provides a detailed overview of the removal process, associated costs, environmental considerations, and best practices for both residential and commercial properties. Understanding the risks and responsibilities associated with old or abandoned tanks can help property owners make informed decisions and maintain compliance with environmental laws.

Underground Oil Tank Removal May Be Necessary

Underground storage tanks (USTs) can pose serious risks if not properly maintained or decommissioned. Potential hazards include:

  • Soil and groundwater contamination from leaks
  • Environmental liability for property owners
  • Safety risks due to residual fuel or unstable tank structures
  • Regulatory penalties for non-compliance

Removing old oil tanks is essential not only for environmental protection but also for property value, liability mitigation, and long-term safety. Early removal can prevent costly cleanups, legal issues, and even structural damage to surrounding areas caused by leaking tanks.

Types of Tanks and When Removal is Necessary

Different types of tanks require different approaches. Understanding what you have helps determine the appropriate removal method.

Tank TypeTypical UseCommon IssuesRecommended Action
Residential oil tankHeating oil storageRust, leaks, soil contaminationResidential oil tank removal
Commercial fuel tankGasoline, diesel, or heating oilCorrosion, regulatory requirementsCommercial oil tank removal
Abandoned or old tanksFuel storage no longer in useEnvironmental liabilityUnderground storage tank removal
Underground fuel tanksGas stations or industrial sitesLeaks, contamination, inspection needsUnderground fuel tank removal

Knowing the type of tank you are dealing with helps determine the proper precautions, permits, and cleanup measures necessary for safe removal.

Step-by-Step Process for Underground Oil Tank Removal

Undertaking underground oil tank removal requires careful planning, safety precautions, and adherence to environmental regulations. Following a structured process ensures both residential and commercial properties remain safe and compliant. Here is a step-by-step overview:

1. Site Inspection and Assessment
  • Identify the type, size, and condition of the tank
  • Conduct soil testing to detect contamination
  • Determine regulatory requirements for UST closure
  • Assess potential hazards for workers and surrounding areas
2. Obtaining Permits and Notifications
  • Notify local environmental authorities if required
  • Obtain permits for excavation and fuel disposal
  • Schedule inspections as mandated by local or state regulations
3. Tank Drainage and Cleaning
  • Safely pump out remaining fuel
  • Clean residual sludge to reduce hazards
  • Ensure proper storage or disposal of extracted oil according to environmental standards
4. Excavation and Removal
  • Carefully dig around the tank to avoid spills
  • Remove the tank from the site
  • Inspect surrounding soil for contamination and structural issues
5. Contamination Cleanup (if necessary)
  • Excavate contaminated soil for treatment or disposal
  • Replace or treat soil to meet safety standards
  • Conduct follow-up soil testing to ensure compliance
6. Site Restoration
  • Backfill excavation with clean soil
  • Restore landscaping, pavement, or structures
  • Document the removal process for regulatory compliance and future reference

Following a structured process ensures that underground oil tank removal is conducted safely, efficiently, and in compliance with all environmental regulations.

Factors Affecting Tank Removal Cost

Tank removal cost can vary depending on several factors. Understanding these can help property owners plan and budget effectively.

  1. Tank size and material – Larger or older steel tanks may be more complex and labor-intensive to remove.
  2. Location – Accessibility of the tank impacts excavation efforts and equipment needed.
  3. Soil contamination – Cleanup adds to the cost if leaks or spills have occurred.
  4. Type of property – Residential vs. commercial projects may require different permits and procedures.
  5. Disposal requirements – Fuel, sludge, and contaminated soil must be disposed of according to local regulations.
FactorImpact on Cost
Tank sizeLarger tanks = higher removal costs
Age & conditionCorroded tanks require more labor
Soil contaminationCleanup increases cost significantly
Site accessibilityDifficult terrain or tight spaces = higher labor cost
Regulatory compliancePermits and inspections add fees

Being aware of these factors helps property owners anticipate expenses and make informed decisions when hiring oil tank removal services.

Residential vs. Commercial Oil Tank Removal

Residential oil tank removal typically involves smaller-scale excavation and limited cleanup, while commercial oil tank removal requires larger equipment, extensive soil testing, and stricter regulatory compliance due to higher fuel volumes and environmental risks.

Residential Oil Tank Removal

Residential oil tanks are commonly found in older homes for heating oil storage. Residential oil tank removal involves:

  • Small-scale excavation
  • Limited contamination cleanup in most cases
  • Documentation for home sale, renovation, or regulatory compliance

Even though residential removals are usually smaller in scale, ensuring proper cleanup is essential to prevent potential liability or soil contamination.

Commercial Oil Tank Removal

Commercial sites, such as gas stations or industrial facilities, often have underground fuel tanks storing large volumes of fuel. Commercial oil tank removal requires:

  • Detailed environmental assessment and soil testing
  • Larger excavation equipment and safety measures
  • Comprehensive contamination cleanup, often including specialized disposal
  • Compliance with stricter regulations for commercial properties

Due to the larger scale and higher potential liability, commercial oil tank removal often involves more planning, inspection, and documentation than residential projects.

Environmental Responsibility and Risk Mitigation

Proper tank removal mitigates environmental and legal risks. Key responsibilities include:

  • Preventing soil and groundwater contamination through proper extraction and cleanup
  • Disposing of fuel and sludge responsibly according to regulations
  • Documenting UST closure for future property transactions
  • Conducting contamination cleanup and site restoration when required

By taking these steps, property owners minimize liability and promote long-term sustainability. Regulatory compliance not only protects the environment but also ensures the property can be safely sold or developed in the future.

Safety Considerations During Removal

Safety is critical when handling underground oil tanks. Potential hazards include explosive vapors, residual fuel, heavy equipment accidents, and exposure to contaminated soil. Precautions should include:

  • Use of personal protective equipment (PPE) such as gloves, goggles, and respirators
  • Adherence to proper excavation procedures to prevent cave-ins
  • Monitoring air quality to detect fuel vapors
  • Professional handling and disposal of all extracted materials

Engaging certified oil tank removal services ensures that safety standards are strictly followed.

Frequently Asked Questions (FAQ)

Q1: How long does underground oil tank removal take?
Removal typically takes 1–3 days for residential tanks. Commercial tanks may require a week or more depending on size, contamination, and permitting requirements.

Q2: Can I remove the tank myself?
DIY removal is strongly discouraged. Professional oil tank removal services have the necessary equipment, training, and permits to safely remove tanks without risking environmental damage or personal injury.

Q3: How much does it cost to remove an underground oil tank?
Costs vary depending on tank size, location, and soil contamination. Residential tank removal can range from $1,500 to $5,000, while commercial removal may exceed $10,000, particularly if soil remediation is required.

Q4: Is soil testing necessary?
Yes. Soil testing identifies contamination and helps determine if cleanup is required, protecting both health and legal interests.

Q5: What happens after tank removal?
The site is backfilled and restored. Contaminated soil is treated or replaced, and documentation is provided for regulatory compliance and future property transactions.

Contact Mayfield Environmental Solutions

Proper underground oil tank removal is an essential step for homeowners and business property owners alike. Whether dealing with residential oil tank removal or commercial oil tank removal, the process safeguards property, protects the environment, and reduces liability.

By understanding the types of tanks, removal steps, costs, and environmental responsibilities, property owners can make informed decisions, mitigate risks, and ensure compliance with all applicable regulations. Engaging professional oil tank removal services guarantees safety, proper disposal, and comprehensive site restoration. Taking these steps not only addresses immediate hazards but also secures long-term property value and environmental stewardship.

Investing in proper tank removal today can prevent costly cleanup, legal issues, and environmental damage in the future, making it a responsible choice for any property owner. For expert assistance with underground oil tank removal, contact Mayfield Environmental Solutions today to schedule a consultation and ensure safe, compliant, and efficient tank removal.


Need Jobsite Assistance?


As seen on the “Jason Alexander Show” for the Los Angeles Fire Cleanup

Free Jobwalks & Quotes

MBE Certified
Hazwoper
US Federal Contractor