Since as early as the 1930’s, many Victoria homes have used home heating oil as their primary heating source. The oil has been, and continues to be stored in large storage tanks, which are either located above ground (typically in a basement) or below ground (typically buried in a backyard). This discussion will focus on the potential problems posed by oil tanks buried below ground.
As home owners switch from using heating oil to alternative sources like electric and natural gas, many of the underground oil tanks have been emptied out and forgotten. These tanks are however a potential source of contamination of both soil and groundwater, and for that reason they are regulated by British Columbia’s Environmental Protection Act and the regulations thereto (the “Act”).
Who faces liability under the Act? Potentially, each of the current owner of the property, any prior owners of the property, and anyone who may have transported contaminants either onto the property or from the property onto another property may be liable to remediate the contaminated soil. The costs of remediating the soil can be significant; remediation of contaminated soil on a standard size City of Victoria lot could range up to $200,000 or more, depending on the level of contamination.
In addition, the owners of lots with buried underground oil tanks may face other problems, principally that the property may become uninsurable, because of the potential fire hazard posed by these buried tanks, and that banks and credit unions may not want to grant a mortgage over the property, because of the risk of contamination and the associated costs to clean it up.
With these concerns in mind, what can home owner and potential buyers do to protect themselves? The best thing to do would be to have an approved inspector check for a buried underground oil tank and, if one is found, contact individuals approved to determine the extent, if any, of any contamination, and to subsequently decommission and/or remove the tank from the property. Ascertaining whether or not there is a buried oil tank should also be part of the due diligence involved in the house-buying process; either the potential buyer and/or Realtor should find out if there is such a tank or, if the sellers do not know, then the potential buyer’s Realtor should ensure that the purchase is conditional upon the results of an inspection for such a tank.
This discussion of underground oil tanks is intended only as a brief introduction to the subject. Should you have any questions or concerns with respect to this or any other aspect of real estate law, please contact
Brendan Piovesan at Mullin DeMeo, at brendan@mdlawcorp.com, or (250) 477-3327.
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