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NFT: Above ground oil tank conversion NJ (central)

rdt288 : 3/27/2015 3:08 am
Hi

Buying s house. Here is scenario.

Above ground oil heat has serviced the house for 50 years but It is forced air and has central a/c

There is gas at the street but no gas in the house

?'s- sure I'm researching but curious of anyone's specific experience

1. Tying the existing gas line from the street to the house? $?
2. What's cost to removal of a/ground oil tank and install of a gas furnace and gas service for cooking to the house. 2k? 5k? 10k?

Great question.  
drkenneth : 3/27/2015 7:38 am : link
The Mrs. and I are looking for houses which will likely have same questions.
The first thing you want to do is have....  
Crispino : 3/27/2015 7:51 am : link
someone determine that there is no abandoned underground oil tank, and hat the above ground tank has never leaked. An underground tank dating back more than 50 years would not have been abandoned per today's practices. Any oil tank and more particularly, any oil spilled and contaminating the soil is a huge problem that can take a lot of time and money to fix. Don't buy that kind of a problem. Make sure to have a specialized inspector ensure there is no underground tank.

The cost of a conversion is not going to be cheap. I would definitely try to get the seller to make a price concession or give back on the closing costs to offset the conversion. A new furnace alone will probably be north of $5,000. All in I'd say it will be closer to the $10,000 than $5,000
. Any decent  
winoguy : 3/27/2015 8:13 am : link
plumbing contractor should be able to give you an estimate to tie into the gas line plus the cost of a new gas boiler. The company that supplies the heating oil should be able to give you a price to pump down the old tank and remove it. Dont know where you are located or all the logistics, but I would think it shouldnt be more than 10k, prolly less.
Check with the local utility about connection costs.  
therealmf : 3/27/2015 8:26 am : link
They may even offer a payment plan.

And like Crispino said, definitely check into the possibility of an underground tank. Could be major money to resolve if they find a leaky one. That cost my sister's inlaws about 25K as the tank was under the driveway and had leaked. And this was 15-20 years ago. EPA is a mother on this stuff.

Buying a house always seems to cost more money than expected. If the oil burner is good, this can be an expense for the future. It's good to get the costs involved but you may want to hold off until you've found any other ailments the house may have. Just a thought. Good luck!


I could see asking for a concession if you find an underground tank  
jcn56 : 3/27/2015 8:30 am : link
but if you've already negotiated a price in good faith knowing that there was an oil boiler and you wanted to convert to gas, are they really going to kick back anything?

If I were the seller, barring some new discovery (like the underground tank if it wasn't disclosed) I wouldn't budge, it's not as if the oil boiler was a surprise.
PSE&G is your source for gas in Central NJ  
oghwga : 3/27/2015 8:33 am : link
They should be able to give you a price over the phone.

Oil tanks, buried or otherwise, are full disclosure in NJ. It's not something they can lie about or mislead you on and your real estate agent should have all the information on that and your closing attorney will also make sure that all is above board.

10K sounds like a reasonable cap if there are no surprises.

Good luck.

Where in central NJ?
If the possible underground tank hasn't been used in over 50 years...  
njm : 3/27/2015 8:39 am : link
the current owner may not even know about it. How long has he/she/they owned the house? This wasn't as big a deal with respect to disclosure to 30-40 years ago.

There are ways a scan can be done to check this out. Buyer beware.
Your lender  
dorgan : 3/27/2015 8:39 am : link
should have specified that the current owner have a Phase 1 environmental report done on the property. If it's had an oil burner for 50 years, talk to your lawyer about it. I'm sure he'll recommend the seller initiate (and pay for) a Phase 1 study.

That study should reveal if the current tank is leaking, has leaked or if there was once an underground tank.

This stipulation of the contract saved me 250K in clean up costs on a property I currently own. The phase 1 study showed possible contamination and the seller had to remediate before I took ownership.

There was an undisclosed underground gas tank, an area where they had dumped motor oil and another area where they had stored hydraulic oil barrels and they had rusted and leaked.

Thanks for pointers  
rdt288 : 3/27/2015 8:52 am : link
This is in middlesex county nj btw
I do fully intend to have the property wanted for underground tanks
When  
liteamorn : 3/27/2015 8:56 am : link
I sold my house with an oil tank in the basement the buyer had the house checked for an underground tank and signs that there never was an underground tank, they basically used a metal detector to look for old piping I believe. NJ Natural gas (if that is your supplier)will run the gas line for free to your house.
rdt288  
bigblue1914 : 3/27/2015 9:09 am : link
I'm a state health inspector a and deal with tank removals all the time. Removal of tank should cost a lot die to it being an above ground tank. The most costly we be to properly dispose of oil thru a company like Monarch or see if the oil company will buy back the oil. Then there is the disposal of the tank and ask the connections. Your probably looking at approx $500-$1000. Anybody charges you more than that is ripping you off. Running a line to the house by PSEG should cost you nothing. However, you will need a licensed HVAC guy connect the line from the house to the heater. Hope this helps.
Jcn, I agree. It's just a negotiating point.  
Crispino : 3/27/2015 2:19 pm : link
I'm just guessing that if the place has been serviced by an above ground tank for 50 years, it's not likely the condition of the heating system is all that great. The seller could hold firm, but you might be able to leverage it depending on the circumstances. The oil tank issue is another story of course. The buyer holds all the cards if there's a leaking tank.
How about an underground oil tank  
spike : 3/27/2015 2:25 pm : link
how much more would it be to remove it and convert to gas?

We are looking at Westchester houses and a lot of the older ones still use underground oil tanks
Thanks again  
rdt288 : 3/27/2015 2:35 pm : link
I'm actually in real estate so the advice reinforces what I was thinking
I appreciate the info about the exact cost

As far as below ground oil tanks, for me personally, it's a non-starter and I wouldn't buy a house with that

The fact that this house has central AC and is above ground makes it ok w me!
BB1914  
rdt288 : 3/27/2015 2:37 pm : link
Thanks.
This is very helpful for me specifically. Thanks again


n comment 12205919 bigblue1914 said:
Quote:
I'm a state health inspector a and deal with tank removals all the time. Removal of tank should cost a lot die to it being an above ground tank. The most costly we be to properly dispose of oil thru a company like Monarch or see if the oil company will buy back the oil. Then there is the disposal of the tank and ask the connections. Your probably looking at approx $500-$1000. Anybody charges you more than that is ripping you off. Running a line to the house by PSEG should cost you nothing. However, you will need a licensed HVAC guy connect the line from the house to the heater. Hope this helps.
RE: How about an underground oil tank  
liteamorn : 3/27/2015 6:53 pm : link
In comment 12206711 spike said:
Quote:
how much more would it be to remove it and convert to gas?

We are looking at Westchester houses and a lot of the older ones still use underground oil tanks

I think your biggest issue underground is leaking, I guess a pressure test would let you know if that is going on. Soil remediation can be a costly endeavor if you have to get into that.
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