Jersey Shore Business Journal

May 14, 2008

An affordable way to remove underground tanks

By COLUMB HIGGINS
Staff Writer
CLERMONT -- For most homeowners, underground storage tanks are out of sight and out of mind.
But that could change soon. Rising energy prices are prompting many South Jersey residents to rethink their underground oil tanks. Insurance companies are also phasing out coverage of the tanks for fears of future leaks, and mortgage companies are increasingly reticent to lend money for properties with the tanks.
In many cases, the underground storage tanks have overstayed their welcome.
“The potential for leaks is a huge environmental hazard,” said Paul Deblasio, of Northstar Environmental Services.
The Clermont company has removed hundreds of underground tanks from Cape May and surrounding counties.
“Mortgage lenders, banks, buyers, you might not be able to sell a house or get a loan if you don’t remove it. It’s a big problem,” he said.
Some homeowners don’t even know they have an underground tank, Deblasio said. The previous owner may have cut the vents off and laid concrete over the area and the buyer won’t find out until he or she has a survey done, or a leak is noticed.
The potential for leaks has prompted the New Jersey Department of Environmental Protection (NJDEP) and the New Jersey Economic Development Authority (NJEDA) to establish a fund that helps homeowners remove the tanks.
Larry Hanna, a spokesman for the New Jersey Department of Environmental Protection (NJDEP), said there are more than 16,000 underground tanks in New Jersey. He said that at any one time, thousands of those tanks are leaking hazardous material, mostly old heating oil. These leaks can pose a threat to drinking water and the surrounding area.
“At any given time we have estimated 4,000 leaking tanks in New Jersey,” said Hanna. “We have programs to assist homeowners to remove the leaking tanks, and we have expanded the program to help homeowners to take the tanks out before they start leaking.”
The Petroleum Underground Storage Tank Upgrade Remediation and Closure Fund was established in 1997, but initially it only applied to tanks that leaked. In 2006, Gov. Jon Corzine signed legislation that allowed homeowners to be proactive, and apply for a grant to remove an underground tank before it leaks.
The fund reimburses eligible homeowners for up to $1,200 to remove an underground tank, and up to $3,000 to install a new above ground tank.
Deblasio said Northstar removes about 50 tanks a year. The program is a boon to homeowners, he said, because the cost to remove a leaking tank can be much higher.
“A hazardous material leak could cost $50,000, $60,000, $100,000 to remediate,” he said. “The tanks get old, rusty. They sit on rocks and holes are punched through them. In some cases the soil itself rusts through the tanks and old oil starts leaking out. There are thousands of these tanks throughout the state.”
The tanks can run from 300 to 2,000 gallon sizes. The largest underground tanks, or those that are resting beneath a house, have to be completely cleaned out and abandoned in place, Deblasio said.
“These tanks have been in place for 40 or 50 years in some cases,” Deblasio said. “They aren’t getting any better. I’ve been trying to tell people to take advantage of the program because it’s not always going to be there.”
Northstar Environmental Services does tank surveys and can furnish a homeowner with a proposal for removal, Deblasio said. An owner can then apply to the NJDEP for a grant to remove the tank.
Hanna said interested homeowners can contact the NJDEP for information regarding the program and whether they are eligible. Most state residents will be eligible, he said.
“People are afraid that if they pull their tank they’re going to see a large bill that they don’t want,” Hanna said. “If home insurance says it won’t pay, this program is one of the ways you can move forward.”
Call 609-263-6666 for the Northstar Environmental Services or 609-984-1795 for the state DEP.

Columb Higgins can be e-mailed at chiggins@catamaranmedia.com or you can comment on this story by calling 609-624-8900.