Removal of Underground Oil Tank!

[AndrewT]

There is a property we are currently looking at, it involves 2 titles with a house on one block and the other is vacant land. Had a look through the house today and it was quite impressive, old style home but had very nice large rooms in good working order!

So after inspecting the site we actually found that the vacant land used to be the servicing premises for a small bus company and as such there is an underground diesel tank! We are now waiting till Monday so I can get in contact with some removal specialist to find out a rough idea of what it would cost to remove. I also have the access and appropriate tickets to remove the tank with an excavator but our main concern here is obviously if the tank has any sort of leak leading to contamination.

Has anyone on here had any experiences that are similar? I think our first step is to get some soil testing done to determine what is going on.

 

[cu@thetop]

In Qld this land would be considered "contaminated land" which would require expensive remediation.

Do your due dilegence before signing.

 

[chilliblue]

In Qld this land would be considered "contaminated land" which would require expensive remediation.

Do your due dilegence before signing.

Having removed several for work, I agree quite strongly about undertaking your research.

The works can be quite costly and many councils have strict requirements about how they may be removed.

 

[Dazz]

Yes, have had this done on land we own several times.

Even with the Tenant paying for everything, this is not much fun.

Can be worked thru, of course, just takes diligence. The paperwork is horrendous.

Your advantages are it is deisel. When that leaks, it doesn't leak far....it simply adheres to the sand grains and stays in-situ, so can be simply scooped away, and replaced with clean certified soil.

Unleaded petrol on the other hand runs like a *******, and you'll never catch it all.

Of course, the best defence is taking 100 photos of the tanl as you pull it up. No leakages, no holes - happy days. Big leaks, looks like swiss cheese....not so good.

Of course, you won't know this 'til way after you've signed on the dotted line to buy the property.

If you pop your scary risk hat on, people can blow a 30K rectification into a million dollar whinge fest. There is good money to be made if you can scare the bejesus out of the seller and then steadfastly go about cleaning up the site.

Of course, most Buyers are petrified of this, and will simply hear a story or two and run for the hills.

You just need to decide which camp you sit in.

 

[knightm]

Yes, have had this done on land we own several times.


If you pop your scary risk hat on, people can blow a 30K rectification into a million dollar whinge fest. There is good money to be made if you can scare the bejesus out of the seller and then steadfastly go about cleaning up the site.

Of course, most Buyers are petrified of this, and will simply hear a story or two and run for the hills.

You just need to decide which camp you sit in.

I love it - the glass is half full or half empty - choose

 

[Shaneelastic]

just do it yourself...just like removing asbestos, best done in the cover of darkness!!

 

[chilliblue]

just do it yourself...just like removing asbestos, best done in the cover of darkness!!

Unfortunately this cannot be done if the tank is noted with council. Any development on or new will always involve the documented removal of said tank.

 

[AndrewT]

Thanks for the replies so far.

Unfortunately this cannot be done if the tank is noted with council. Any development on or new will always involve the documented removal of said tank.

This is the thing, I have the contract of sale and there is no documentation stating any information about the tank. In fact, I have a "Planning Certificate Under Section 149 Environmental Planning & Assessment Act 1979" which has a section Contaminated Land.

(a) That the land to which the certificate relates is significantly contaminated land within the meaning of that Act - if the land (or part of the land) is significantly contaminated land at the date when the certificate is issued

No

That is states for each title and was issued 7/2011. Shouldn't there be information in there regarding the underground diesel tank?

 

[Aaron_C]

I wouldn't bother with trying to clean up contaminated land as it is a very expensive exercise, and you have too many unknowns.

 

[AndrewT]

I wouldn't bother with trying to clean up contaminated land as it is a very expensive exercise, and you have too many unknowns.

Did some more due diligence today.

Appears that the tank is 510 gallons, so only around 2000 litres. Did the calculations based on the depth of the tank and filler and looks like the tank is only 2metres wide by 1.2 in diameter. Quite Small.

Also, I have sewer inspection cameras so I was thinking of putting a camera inside the tank to see if there is any signs of corrosion etc. Talked to a environmental engineer who said he can do testing for $1600 but too much money to outlay if we don't end up with the place.

My father in law has a mate who specialising in the removal of underground tanks and contaminated land. His going to get me a rough estimate of what it could cost in worst case scenario.

 

[AndrewT]

Thankyou for your advice Dazz.

I am definitely in the camp that wants to push ahead and take the property at a price that justifies the risk. Take into consideration that worst case scenerio, it has to cost ~$90,000+ to remove contamination for us to finish even. It's basically the price of 2 lots of land with a free brick house on one side.

"Man who risks nothing, does nothing, has nothing"