Throughout neighbourhoods in Greater Vancouver’s 21 municipalities, there are long-forgotten underground fuel storage tanks buried and hidden in yards and basements.

These tanks were extensively used for home heating fuel until the 1970s when natural gas became readily available.

Tanks never required registration or permits, so it’s impossible to know how many exist. 

First, Realtors should understand any property could contain an underground storage tank.

Realtors involved in the listing or sale of a property that contains, or may contain, an underground or above-ground tank should be aware that because of the potential environmental concern, a tank can expose sellers and buyers t significant financial loss and liability.

If a buyer’s agent reasonably suspects there may be a tank, the Realtor must use reasonable efforts to determine if one is present.

A buyer’s agent should advise buyers to:

• have the property inspected for fill and vent pipes;
• seek expert opinion especially if the storage tank is thought to be leaking; and
• consult with lenders and insurance companies regarding policies about underground or above-ground tanks.

A buyer could also include the tank removal as a condition of sale.

If a listing agent has reason to believe that a property contains an out-of-use underground oil tank?

The Realtor should warn the seller to determine if one is there. Otherwise, the discovery of a tank later may expose the seller to significant liabilities.

Information on the Property Disclosure Statement about a tank must be accurate. A seller may need to consult an environmental and legal professional about whether the tank is a material latent defect.

A seller must disclose the presence of an unused or abandoned underground or above ground storage tank (as a latent defect) in writing.

Realtors should always advise clients to seek the services of a qualified professional such an as engineer. 

In BC, the polluter pays according to the Ministry of Environment’s Remediation Liability Overview.

This can include a current owner, a previous owner, and even a producer or transporter of a substance that caused the contamination.

Property owners who innocently acquired the site. An innocent owner or previous owner must prove:

• at the time they bought the property it was already contaminated;
• they had no way of knowing the property was contaminated; and
• they asked the previous owner about whether there had been a tank on the site. 

The life span of a tank is approximately 25 years. As tanks age and corrode, heating oil, gas, diesel fuel and other toxic substances can leak into surrounding soil. This can contaminate neighbouring properties and the groundwater system and can even cause a fire or an explosion.

Cleanup costs vary and there are cases where homeowners have paid as much as $123,000. 

In BC, residential fuel storage tanks are regulated by the BC Fire Code, Part 4, which covers the installation, maintenance, repair, removal, and abandonment of tanks.

Toxic leaks are governed by the BC Environmental Management Act and the Contaminated Sites Regulation. Municipalities may also have bylaws or policies and additional requirements for removing or abandoning tanks are administered by the local fire department.

Your Board’s Underground Fuel Storage Tank bylaws fact sheet links to each municipal bylaw and includes:

• costs of fees and permits;
• requirements for remediation and inspection;
• guidelines for dealing with leaking tanks and abandoning tanks in place; and
• penalties.      

The City of Vancouver estimates there are as many as 20,000 remaining tanks in the city which are under:

• the city’s Fire Bylaw which follows a CCME Code of Practices for tank removal and decommissioning; and
• the city's Sewer and Watercourse Bylaw No. 8093, section 5.3 which requires property owners to remove a tank that will not be reused or has been out of service for two years.

If a property owner suspects there is a tank, they should first hire a certified company to scan their property.

If the scan confirms there is a tank, the owner must:

• hire a qualified professional such as an engineer to oversee the process of removal and remediation, and confirm contaminated soils are properly assessed and managed, and work meets BC Ministry of Environment standards;
• pay $300 for a tank removal permit from the City of Vancouver Fire Prevention Office at 456 West Broadway, Suite 306, Vancouver;
• comply with conditions on the permit, which is kept in the city's permits and licence's data resource centre; and
• hire qualified contractors experienced in tank removals.

During the tank removal, all contaminated soils must be removed. Soil must be tested on the property and on neighbouring properties until contamination is no longer present. Clean fill is then brought in. 

If contaminants have leeched onto a neighbouring property, neighbours must be formally notified as detailed in the Contaminated Sites Regulation sec. 57 and 60.1 and provide a copy to the local municipality. 

Along with the tank removal permit, a property owner will be given a Final Tank Removal/Closure Report template. This report template requires:

• a site sketch;
• tank information;
• proof of disposal work completed;
• field observations;
• soil sampling completed; and
• analytical results and photos.

Supporting information must be attached including lab certificates detailing what was pumped out of the tank, a receipt from the facility where the tank was taken, and the amount of soil brought in. A conclusion statement must be also be completed and stamped by a qualified professional.

The professional overseeing the removal will complete and sign this template which the property owners send to the Environmental Contamination Team at ust.reporting@vancouver.ca.

The city has this useful bulletin, Residential Storage Tank Removal.

The Fire Chief determines whether or not a tank must remain.

The property owner must hire a qualified professional to decommission the tank by emptying it and filling it with an inert material such as sand.

Note: In some areas of the Board such as Pemberton and the Gulf Islands tanks are still used.

Property buyers and sellers should review the BC Contaminated Sites Registry, a list of contaminated sites, sites under investigation, and remediated sites. 

• Remediation liability

If you have questions about fuel storage tanks, contact Harriet Permut at hpermut@rebgv.org