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Shou
Citizen
Username: Shou
Post Number: 10
Registered: 1-2003
| | Posted on Wednesday, October 1, 2003 - 10:24 am: |     |
Has anyone out there with an in-ground oil tank figured out a risk-free way to convert to gas?
Our heating system is hanging on by a thread and we want to update it before winter and convert to gas, but we have just discovered the clauses in our tank insurance policy that state:
1) you are not covered by insurance if you "voluntarily" pull your oil tank out of the ground before you have had the insurance for 12 months (which we haven't), and
2) if there is a leak which the oil company cleans up as part of insurance you must remain an oil company customer for another 12 months after that!
Now we just bought an old house with an old tank, and though our tank passed a test for leaks when we bought the house, I don't want to risk pulling it out and finding out there's been some minor leaking going on if I don't have insurance.
It seems like the oil company has us right where they want us! From the research I've done (based on our specific situation), it will cost us alot more to install a new heating system if we stay with oil.
Has anyone found a way around this?
Thanks.
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tourne
Citizen
Username: Tourne
Post Number: 199
Registered: 1-2003
| | Posted on Wednesday, October 1, 2003 - 2:10 pm: | |
Typical oil company games! First, I would check with your homeowners insurance to see if you are already covered for any tank leaks. Second, if the tank passed the leak test, than I would not worry about any minor leaks. Check with the town for any requirements on filling/pulling the tank. Switching to gas is the best thing to do. Check with the gas company for any incentives as well as with www.njcleanenergy.com. |
sac
Citizen
Username: Sac
Post Number: 735
Registered: 5-2001
| | Posted on Wednesday, October 1, 2003 - 4:36 pm: | |
My observation (before we switched a year ago) that every practice of the oil company was to make it as difficult to switch as possible. That only gave me more confirmation that it was the right thing to do. Our case in point was our annual maintenance visit, which was scheduled right after our payment for the annual service plan as well as the entire next winter's oil deliveries. At that visit they informed us that we needed a new furnace. We took a chance and made it through the winter. We also did not have an inground tank so we were spared that headache.
Also the "buyers plan" that we subscribed to each year in order to save on the cost also locked us in for underruns. If we didn't use all of the oil that winter, we got a credit. But it could only be used against the next year's oil. If we purchased too little oil in advance, we risked being socked for a big bill.
What we did do was go ahead and make arrangements with a plumber for the new furnace and had them do the required piping work (and get it inspected and approved by the town.) Then we were ready for a very quick replacement of the furnace if it died during the cold weather. That particular winter (2001-2002) was very mild and we got lucky so we didn't have to do that. We did lose a little bit of prepaid oil, despite having underbought that year (since it was SO mild), but that was a smaller price to pay than if we had replaced the furnace at the time they told us about the problem.
Just a possible strategy if you want to try to put it off.
Good luck! |
lah
Citizen
Username: Lah
Post Number: 142
Registered: 5-2001
| | Posted on Thursday, October 2, 2003 - 8:40 am: | |
I don't think that there's a risk free way. We did it and got burned. Homeowners policies will generally cover if there is groundwater contamination. Unfortunately, you can get a lot of ground contamination without hitting the groundwater.
In retrospect, we probably should have tested the soil before we went ahead with removing the oil tank (actually we were trying to sand fill it, but if they find contamination, they will make you remove it rather than sand fill). Testing the soil is not cheap ($300-$400), but it would have allowed us to go after the oil company for the clean up first. DO NOT TEST THE SOIL without telling your oil company and make sure that they agree that how you are testing does not violate the policy. There are so many loopholes in those policies, it's like swiss cheese. I hope you have a better experience than we did. I'm glad we did it because I view the oil tank as a liability that would have just kept growing, but it was painful and expensive. |
Shou
Citizen
Username: Shou
Post Number: 11
Registered: 1-2003
| | Posted on Thursday, October 2, 2003 - 11:42 am: | |
I appreciate the info. lah, thanks for the tip about soil testing!
We're weighing the costs and our options now.
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grw
Citizen
Username: Grw
Post Number: 172
Registered: 12-2002
| | Posted on Friday, October 3, 2003 - 10:16 am: | |
I just went through exactly what you are about to, bottom line, your just going to have to take the chance when you remove the tank. My house is 1910, I was stressed during the whole process however, it all turned out fine. The tank removal cost $1200.00. I didn't have the soil tested first. If you have a steam system like mine, there are no incentives or rebates with PSE@G, the boiler doesn't meet the efficientcy criteria. If you have the soil tested, hopefully you will be fine, you should remove the tank, if you fill it with sand, you might have a problem when you sell.
Good Luck
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