New Jersey Unregulated Heating Oil Tanks & The Deed Notice “Light”

There are essentially no bigger headaches when purchasing or selling a residential property, than the infamous Underground Storage Tank (UST).  Whether identified intentionally or unintentionally, the presence of a UST stirs up confusion, and anxiety for all parties involved…realtors included.  Of course, someone always knows “a guy” that can take care of the situation and makes things right, so to speak, but be on the lookout for firms or individuals that are not certified.  In accordance with the Underground Storage of Hazardous Substances Act and UST Rules (N.J.S.A. 58:10A-21, N.J.A.C. 7:14B-16.1)-Individuals or business firms providing services for unregulated heating oil tanks must be certified.  In addition, UST work must be completed in accordance with the New Jersey Uniform Construction Code (NJUCC), and local permits are required prior to the removal of a tank.  Simply put…don’t let the guy, who knows a guy with a backhoe, perform any work on your property without the proper credentials and permits. 

For many practitioners in the environmental consulting world, and the Unregulated Heating Oil Tank (UHOT) community, small heating oil tanks have the potential to cause incredibly costly headaches with remediation fees skyrocketing to well over $100,000 in many cases, just to scrape out every last bit of contaminated soil.  Oftentimes, the chase takes you under a house and structural supports are required, which just adds to the anxiety of a homeowner.  Fortunately, some insurance carriers pick up the tab, but some don’t, and some stick their head in the sand (which is the topic for another day); however, New Jersey is in the process of proposing new rules and guidance that may offer an alternative:  the Deed Notice “Light”

The new rule (“N.J.A.C. 7:26F”) has been in the hopper for several years and is slated to be proposed in the next year. Once promulgated, it would allow for small amounts of residual contamination to remain in-place…with no restrictions and a No Further Action (NFA) issued by the NJ Department of Environmental Protection (NJDEP).  Small amounts means ≤ 15 cubic yards (e.g.  +/- 9ft. long x 7.5 ft. deep x 6ft. wide).  In addition, when contamination is not accessible a homeowner will be allowed to pursue a UHOT Deed Notice or the Deed Notice “Light.”  Of course there are many caveats that would need consideration, but this option gives the homeowner an opportunity to put the brakes on “chasing” contamination and end the remediation, with no requirement for NJDEP Remedial Action Permits or future inspections and/or certifications.  It’s estimated that the Deed Notice “Light” would be a less than desirable outcome because it will reduce the value of a property, but when faced with steep remedial expenses, it’s a viable option.  

When the new rule comes out and these options are available for consideration, do yourself a favor and utilize the services of experienced and certified consultants and contractors to help you make a sound decision, and above all else…make sure you don’t use the guy who knows a guy that has a backhoe.  Odds are they are only going to compound the situation. Nobody needs that.

Stay tuned for future updates and musings, as well as others, from Cardinal Environmental. We hope that you find these posts informative, and relatively useful, and your feedback is always welcome. For further information please don't hesitate to contact us at tfrancis@cardinallsrp.com, or www.cardinallsrp.com.