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A leaking underground oil tank is an expensive problem. "Removing contaminated soil, abandoning the old tank and installing a new one could cost thousands of dollars," says Gary Dymsky of Newsday.
Says Dymsky, "there are an estimated 70,000 underground tanks on Long Island - about 40,000 in Nassau County according to the DEC. Their life expectancy, from the time of installation, is less than 20 years. About 25 percent of these containers fail each year."
The DEC can hold you responsible for all cleanup costs. What's worse is that your homeowners insurance probably won't cover the cleanup costs associated with a leaking oil tank. Home buyers are afraid of "unprocessed" underground oil tanks while some mortgage lenders won't approve loans, fearing their clients potentially face large environmental cleanup costs and could default on the mortgage.
Taking care of the problem now is considerably less expensive than paying for an environmental cleanup later!