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For decades, oil was the primary source of heating for most homes in British Columbia. However, after 1960 oil the practice of burying oil tanks declined, and homes began transiting to other heating sources. One of the major issues with underground oil tanks was the potential for severe environmental and health consequences as a result of oil leaks or spills contaminating nearby soil and groundwater.
Over sixty years later, underground oil tanks remain a real concern for many homeowners who may knowingly or unknowingly still have these decommissioned tanks buried on their properties. This issue often arises when a home is involved in a real estate transaction and the buyer includes an oil tank inspection as part of their conditional offer, or when renewing a mortgage or insurance policy and an oil tank certificate is requested.
If the existence of an underground oil tank is confirmed, property owners are required to have the tank removed as well as conduct contaminated soil remediation if testing indicates there is soil contamination.
All remaining underground oil tanks are provincially regulated under the BC Fire Code (BCFC). According to the BCFC, owners of residential heating oil storage tanks are required to follow proper engineering practices when removing, abandoning, or temporarily taking tanks out of service. This includes specific guidelines on how to safely remove the tank, ensure that any residual fuel is properly disposed of, and prevent environmental contamination. The BCFC also outlines procedures for testing the surrounding soil for contamination and mandates remediation if necessary to meet environmental safety standards.
In addition to the BCFC, property owners may be subject to local bylaws that mandate the removal or decommissioning of abandoned or unused residential heating oil storage tanks, as well as the provincial Environmental Management Act and Contaminated Sites and Hazardous Waste Regulations. Under these laws, if an underground oil tank has leaked and contaminated the site, the current owner may be required to conduct soil remediation to mitigate the environmental impact.
Under the Environmental Management Act, cleanup responsibilities and contaminated soil remediation can fall to the current owner, a previous owner, or any party that caused contamination. This also includes situations where contamination has migrated to a neighbouring property, or a seller knowingly sold a property with a hidden underground oil tank and failed to disclose its existence in the Property Disclosure Statement.
Due to the ongoing potential for liability issues, it is strongly advised for those who suspect their property may have an underground oil tank to have their property inspected by an oil tank locator.
If an underground oil tank is identified on a property, it must be removed by a qualified contractor following engineering practices as outlined in the BCFC. In addition to safely removing the oil tank and any remaining contents, contaminated soil must be removed and disposed of at an authorized facility. If further remediation is required, the property owner will need to hire a qualified professional to collect and analyze soil samples to confirm that all contaminated soil has been removed.
In cases of significant contamination, property owners may need to notify the Director of Waste Management. A notification of independent remediation is typically filed when remediation is carried out by the property owner or other responsible parties, and the cleanup efforts are documented. This ensures transparency and may be required for future legal or real estate transactions.