Furnace oil tanks need inspections.
Leaky old tanks are environmental hazards that must be replaced under new regulations.
by Cathy Olliffe

If you're new in town you probably know all about the new home heating inspections going on. But if you're like the rest of us you're probably so in the dark that you might as well be standing inside your furnace oil tank.  When people around the Highlands who heat their homes with oil were asked informally if they'd heard anything about oil tank inspections, they all said no.

On the other hand, anybody who has moved into a new (or new-to-them) oil-heated home or who started a new account with a fuel oil supplier since May of this year will have had to have their oil tank inspected and approved by an oil-burner technician licensed by the Technical Standards and Safety Association (TSSA).

Beyond those rules, all fuel oil suppliers, such as Brian Black of Sid Stamp Fuels in Minden, have five years to do a comprehensive inspection of every customer's heating system. Not just the oil tank, but the furnace, the chimney, the fuel lines and the ducts ­ "their complete heating system," Black says.

That's a lot of extra work for suppliers. Offhand, Black couldn't say exactly how many customers he has but he figures around "a couple of thousand." Five years isn't a great deal of time to inspect all those homes but Black is planning to do 20% a year. Many of Sid Stamp inspections will be done in conjunction with regular seasonal furnace check-ups because it will be more convenient for the customer and the inspector and it will also save the customer money.

Naturally it's the customer who will have to pay to have their heating systems inspected. Again, Black wasn't exactly sure how much an inspection will cost because most of his are tied into furnace cleanings but he figures it will be in the neighbourhood of $50.

The price isn't bad but if the inspector sees work that needs to be done, the cost could quickly rise. Replacing an oil tank, he says, could cost $600 to $1,000 "depending on the amount of work that needs to be done." He agrees the new regulations "are a pain in the neck" but he's in favour of the new regulations because "it's going to prevent a lot of problems. The last thing you need is a leaking oil tank."

He's seen a lot of bad oil tanks over the years and he's happy to see pressure being put on people to get rid of them. If an inspector finds minor problems, the customer will have up to 90 days to correct them. If it's an immediate hazard, the oil company will not be allowed to give the customer oil until the hazard is removed or a new oil tank is in place.

Domestic heating oil tanks have been under scrutiny in recent years. According to the internet Environmental Science & Engineering magazine, www.esemag.com ­ May 2002, storage tanks that are unprotected or not maintained represent a potential for environmental pollution. "There are between 1.2 million and 1.5 million homes that heat with oil in Canada," the magazine says. "Over the last few years, there has been a startling number of tank failures and the trend will grow as traditional steel oil heating storage tanks corrode.

"The majority of steel fuel oil tanks rust from the inside out. Because of condensation, water and sludge accumulate at the bottom of tanks. This combination creates an ideal environment for internal rust or corrosion of the steel tank wall. "More often than not, this damage is not visible and manifests itself as a catastrophic tank failure."

The magazine goes on to say that leaking tanks are also a result of improper tank maintenance, damp locations and mechanical damage. Outdoor installations are more susceptible to condensation as a result of day-night temperature changes and humidity. Exterior rusting is noticeable by the small pinholes on the tank.

And there's more. "Nearly 40% of all fuel leaks reported to  local and provincial ministries of environment are from domestic, heating oil storage tanks in private homes. The Insurance Bureau of Canada, Atlantic Division, says that claims paid for clean-up as a result of leaks from heating oil systems account for 5% of all claims paid under homeowners' policies. Oil leaks from storage tanks and line ruptures have caused insurance claims to jump by about 50% in the past few years. Clean-ups can cost between $20,000 and $125,000 or more. Some clean-up costs can grow to greater than the value of the house."

Black confirms that it's not just the industry and governments that want inspections done ­ the driving force is the insurance business.  Several insurance companies are now offering refunds to their clients to encourage them to replace their furnace and storage tank systems. Tank and furnace manufacturers are also offering rebates to customers for furnace and tank replacements.

The Atlantic provincial governments and, most recently, the TSSA in Ontario have introduced new regulations for heating oil storage tanks to counter oil spills. The rules require only licensed installers install and regularly inspect tanks. Tanks would have to be tagged and registered and oil deliveries made only to tanks that have the registration tag. 

"Therefore, " the magazine says, "the responsibility for tank maintenance has been divided among the owner, the installer and the oil company."  Manufacturers of storage tanks have improved their products and warranties. Several new tank products have been marketed during the last few years. Steel tanks have gone to a heavier gauge to mitigate the effect of corrosion and perhaps increase the lifespan. New technologies for non-metallic tanks have emerged so that internal corrosion ceases to be an issue.

Because oil tanks are usually hidden in the backyard or the basement, homeowners can go months or years without giving them so much as a glance but Black says people should be paying attention. He says there are two important and obvious signs that a tank needs to be replaced:

1) Check to see if there are any leaks. If there are, your tank needs to be replaced immediately.

2) Check to see if there is a date on the tank. If there's no date, Black says it's probably at least 20 years old. While the TSSA Fuels Safety Program says there is no age limit set for the life of tanks, Black says if it's 20 years old it's probably due to be replaced.

According to a Home Heating Fuel Tank Safety brochure produced by the Federated Insurance Company, "tanks should be replaced every 15-25 years, depending on the design and steel thickness."   But Black has had to replace a tank that was only five years old, so age is no guarantee. 

The brochure says one litre of fuel oil can contaminate one million litres of drinking water. "The homeowner/tank owner must become aware of this potential loss situation and take steps to reduce their loss exposure. Contamination clean-up can cost in excess of $50,000, so it is in everyone's interest to prevent a leak from occurring."

Here are some tips from that brochure:

• Whenever possible, tanks with an end outlet product line connection should have any sludge and water removed annually by a reputable tank contractor.
   
• Homeowners should frequently inspect the vent and fill pipes and the tank bottom for leaks and spills.
   
• Be cautious when rubbing your hand along the bottom of the tank to check for damp or wet spots. The slightest pressure may cause a pin hole leak in a corroded tank.
   
• If frost heaving or ground settling causes your tank to move, have the tank leveled immediately.
   
• On indoor installations, route or protect your oil produce line from physical damage by installing the line around the perimeter of the basement wall.
   
• Never install a used or rebuilt tank.
   
• When replacing your tank, ensure that no water or sludge is transferred from the old tank into the new one. It is recommended, if practical, to use the old tank until it is empty.
   
• Keep your tank filled during the summer so less water from condensation accumulates inside.
   
• Have your tank and accessories checked as part of your annual furnace maintenance.

 

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