How much does oil tank removal cost?
How much does oil tank removal cost?
$800 – $3,400 average underground oil tank removal cost
$500 – $2,000 average basement oil tank removal cost
$400 – $1,800 average above-ground oil tank removal cost
Oil tank removal cost
Oil tank removal costs $400 to $3,400, depending on the size, location, and condition. Underground oil tank removal is more labor-intensive and costs more than a basement or above-ground tank disposal. A leaking, old, or corroded residential fuel tank takes more time and costs more to remove.
| Tank type | Average cost to remove |
|---|---|
| Underground oil tank | $800 – $3,400 |
| Basement oil tank | $500 – $2,000 |
| Above-ground oil tank | $400 – $1,800 |
Underground oil tank removal cost
Removing a buried underground storage tank (UST) costs $900 to $3,600, depending on the tank size. A leaking underground storage tank (LUST) increases costs exponentially because it requires remediation measures.
| Capacity | Average cost |
|---|---|
| 550 gallons or less | $900 – $1,600 |
| 1,000 gallons | $1,500 – $2,400 |
| 1,500 gallons | $2,100 – $2,700 |
| 2,000 gallons | $2,300 – $2,900 |
| 3,000 gallons | $2,800 – $3,600 |
Excavation costs $500 to $2,500, not including remediation for contamination. Oil tank removal estimates typically include excavation costs.
Basement oil tank removal cost
Removing a basement oil tank costs $500 to $2,000, depending on accessibility. If the tank is too large to fit through basement doors, it may need to be crushed or cut to fit. Some cities require an oil burner technician to disconnect the supply line, which can cost extra.
While indoor tanks are less likely to leak oil into the ground and require remediation, indoor leaks still require cleaning to avoid fires and illness.
Above-ground oil tank removal cost
Above-ground oil tank removal costs $400 to $1,800, depending on tank size and accessibility. An above-ground storage tank (AST) typically requires less labor to remove than other tank types.
Oil tank decommissioning and abandonment costs
Abandoning or decommissioning an oil tank costs $600 to $3,400 on average. Contractors drain and clean the tank, fill it with up to 5 cubic yards of foam or concrete, and test nearby soil for contamination.
Current regulations only allow abandonment when the tank is located under a building or patio and cannot be removed without damaging structures or underground utilities.
Oil tank removal and disposal cost factors
| Factor | Average cost |
|---|---|
| Oil pumping and disposal | $50 – $150 |
| Tank removal and disposal | $250 – $600 |
| Soil testing | $250 – $550 |
| Fill dirt | $150 – $600 |
| Patching supply line holes | $xxx – $xxx |
The following factors affect oil tank removal and disposal costs:
Size and condition of tank – Large tanks are harder and more costly to remove. Tanks that are dented, rusted, or older than 15 years should be removed carefully to avoid spills or further damage.
Accessibility and location of tank – Above-ground tanks are the simplest to install and replace. Removal is more expensive if a basement is hard to access or the tank is underground.
Oil pumping and disposal fees – Removing oil still in the tank costs $50 to $150, depending on location and company.
Soil testing – Oil contamination soil testing costs $250 to $550 and should always be done when removing a tank. Some contractors include soil testing in their estimates.
Permits – Oil heating permits cost $30 to $160 and are issued by local agencies or fire departments.
New tank / replacement – An oil tank replacement costs $1,200 to $4,600, depending on the type, location, and accessibility.
New oil furnace – An oil furnace costs $2,500 to $6,000 installed. Removing and replacing the oil tank is often recommended when installing a new furnace.
Furnace inspection – A standard furnace inspection costs $70 to $130 and ensures there are no leaks or damage.
Cutting and removing fuel lines / patching holes – A carpenter charges $40 to $100 per hour to close off supply lines and patch any holes in the home’s exterior or interior.
Fill dirt – When replacing or removing an underground tank, fill dirt costs $5 to $25 per yard or $150 to $600 on average.
Average oil tank removal cost by location
Oil tank removal costs $300 to $3,300, depending on location. Oil heating is primarily used in the Northeast and Pacific Northwest states.
| State | Average cost |
|---|---|
| Connecticut | $500 – $3,000 |
| Maine | $400 – $1,500 |
| Massachusetts | $400 – $2,500 |
| New Hampshire | $500 – $3,300 |
| New Jersey | $600 – $2,700 |
| New York | $600 – $2,600 |
| Pennsylvania | $700 – $2,200 |
| Washington | $500 – $2,500 |
Oil tank remediation cost
If a tank leaks oil into the ground, remediation costs $2,500 to $17,000 and must be reported to the Environmental Protection Agency (EPA). Remediation includes removing contaminated soil, washing the ground, and using lime or concrete to stabilize the area.
Old oil tank removal considerations
Oil tanks older than 15 years should be removed or decommissioned. The older the tank, the more likely it is to leak and need remediation. Old tanks also make selling a home more difficult.
Frequently asked questions
How can you tell when an oil tank needs to be removed?
An oil tank may need to be inspected or removed if:
The tank leaks.
It has clogged pipes.
It is 15 years or older.
It produces less heat than usual.
There is dead vegetation around it.
It is rusted, dented, or corroded.
The oil lines are split or cracked.
It has a faulty vent alarm or fuel gauge.
There is an odor in the home or yard.
Can I remove my own oil tank?
Disconnecting and removing an oil tank is a hazardous job best left to professionals. Contractors typically take oil tanks to a salvage yard, but local landfills may take a clean, empty tank.
Should I buy a house with an underground oil tank?
Many lenders will not approve a mortgage for a home with an underground oil tank because of the potential cost of remediation and contamination. Ask your real estate agent if removing or decommissioning the fuel tank can be added to the contract as a condition of sale.
Does homeowner’s insurance cover oil tank removal?
Most homeowners’ insurance policies do not cover oil tank removal, but some companies offer separate policies for oil tanks. Most states offer financial assistance for leak remediation.
How much does water tank removal cost?
Removing a water tank costs $100 to $500. Water heater tank removal is a more common, less hazardous, and less specialized job than oil tank removal.
Getting quotes for oil tank removal services
Before hiring a contractor for oil tank removal near you, be sure to:
Read company reviews on HomeGuide and Google.
Look for companies certified by North American Technician Excellence (NATE) or the American Society of Heating, Refrigeration, and Air-Conditioning Engineers (ASHRAE).
Choose licensed, insured, and bonded contractors with 5+ years of experience.
Compare tank removal quotes from at least three different companies.
Remember, the lowest bids typically signal low-quality work.
Get written copies of project estimates, permits, contracts, and warranties.
Confirm the estimate includes all material, labor, and equipment costs and the installation schedule.
Create a payment schedule instead of making the full payment upfront.
Questions to ask
How long have you been removing oil tanks?
Are you licensed, bonded, and insured?
What certifications do you have?
Can I see references from your previous jobs?
Does the estimate include all labor and materials fees?
Does the estimate include soil testing for contamination?
Does your company handle remediation if the soil is contaminated?
Does the estimate include hauling away the tank and removing all debris?
How long will the job take?
Will you obtain all necessary permits and manage the inspections?
How long is the warranty, and what does it cover?
What is the payment schedule for this project?
What financing options do you offer?