Beyond Bending Tell You How
Buying a property with underground fuel tanks comes with its fair share of risks, and it’s important to be aware of them before you make a purchase. Fuel tanks can be found on commercial, industrial, and residential properties, and they’re typically used to store fuel for heating systems, generators, and other equipment. While they are a convenient way to keep fuel on-site, they can also be a liability if not properly maintained. In this blog post, we’ll discuss what you need to know before buying a property with underground fuel tanks.
Understanding Underground Fuel Tanks
Underground fuel tanks are large containers that are buried underground and used to store fuel, such as gasoline, diesel, or oil. They’re typically made of steel or fiberglass and can hold anywhere from a few hundred to several thousand gallons of fuel. These tanks are used in a variety of settings, including gas stations, farms, and industrial sites.While underground fuel tanks can be a convenient way to store fuel on-site, they also come with a number of risks. Over time, these tanks can deteriorate and leak, which can contaminate the soil and groundwater. In addition, fuel tanks can pose a fire hazard if not properly maintained.
The Risks of Buying Property with Underground Fuel Tanks
If you’re considering buying a property with underground fuel tanks, it’s important to be aware of the risks involved. Here are some of the key risks you should know about:
Environmental Liability
One of the biggest risks of buying a property with underground fuel tanks is the potential for environmental liability. If the tanks leak or spill, they can contaminate the soil and groundwater, which can be expensive and time-consuming to clean up. In addition, you may be held liable for any damage caused by the contamination, which can result in costly lawsuits and fines.
Financial Liability
In addition to the environmental liability, buying a property with underground fuel tanks can also come with financial liability. If the tanks require repairs or replacement, you’ll be responsible for the costs. In addition, if the tanks need to be removed, the cost of excavation and disposal can be significant.
Safety Risks
Fuel tanks can also pose safety risks if they’re not properly maintained. A leak or spill can create a fire hazard, and the fumes from the tanks can pose a health risk to those nearby. In addition, if the tanks are not properly secured, they can be a target for theft or vandalism.
Evaluating the Risks
Before buying a property with underground fuel tanks, it’s important to evaluate the risks involved. Here are some steps you can take to assess the risks:
Conduct a Phase I Environmental Site Assessment
A Phase I Environmental Site Assessment (ESA) is a comprehensive study of a property’s history and current condition. It can help identify any potential environmental liabilities, including underground fuel tanks. A Phase I ESA typically includes a review of historical records, an inspection of the property, and interviews with current and former owners.
Conduct a Tank Inspection
If underground fuel tanks are present on the property, it’s important to conduct a tank inspection. This can help identify any leaks or other issues with the tanks. A tank inspection typically includes an internal and external inspection of the tanks, as well as testing of the surrounding soil and groundwater.
Review the Property’s Insurance Coverage
Before buying a property with underground fuel tanks, it’s important to review the property’s insurance coverage. Make sure the insurance policy covers any potential environmental or financial liability related to the tanks.
Mitigating the Risks
Once you’ve evaluated the risks of buying a property with underground fuel tanks, there are steps you can take to mitigate those risks:
Maintain the Tanks
Proper maintenance of underground fuel tanks is critical to reducing the risk of leaks or spills. Tanks should be inspected regularly and any necessary repairs should be made promptly. In addition, tanks should be properly secured to prevent theft or vandalism.
Monitor the Tanks
Regular monitoring of underground fuel tanks can help identify any potential issues before they become major problems. This can include monitoring for leaks or spills, as well as monitoring the quality of the fuel stored in the tanks.
Plan for Tank Removal
If the underground fuel tanks are no longer needed or are too costly to maintain, it may be necessary to remove them. Planning for tank removal in advance can help reduce the costs and disruption associated with the process.
Conclusion
Buying a property with underground fuel tanks can be a risky proposition, but with proper evaluation and mitigation, those risks can be minimized. If you’re considering buying a property with underground fuel tanks, it’s important to work with experienced professionals who can help you assess and manage those risks.
