Home Inspection Turned Up an Oil Tank: Next Steps in PA
An inspector's note about a fill pipe, a vent line, or an old tank is common in Lehigh Valley homes, many of which were built before 1960 or are still heated with oil (see the town figures below). Here's how buyers and sellers usually handle it.
Typical next steps
- Sweep: confirm whether a buried tank is there. See oil tank sweep.
- Soil test: check whether a known tank has leaked. See soil testing.
- Decide who pays and when: removal, abandonment, or a credit at closing. Discuss this with your agent and attorney.
What the rules say
Pennsylvania's Storage Tank and Spill Prevention Act (Act 32) excludes tanks "used for storing heating oil for consumptive use on the premises where stored" from its underground storage tank definition1, and DEP's regulations exclude them from the aboveground definition too2. DEP states plainly: "Home heating oil tanks are not regulated"3. So no state rule forces a homeowner to pull a working or old home heating oil tank. The real reasons people act are below.
Lenders and disclosure
- Disclosure: PA sellers must disclose known material defects on the property disclosure statement4.
- Lenders: under Fannie Mae's guide, when an appraiser knows of a hazardous condition, the appraisal must note it and be made "subject to" inspection by a qualified professional5. Lenders may ask for testing, soil sampling, or removal/closure documentation6.
- Insurers: standard homeowners policies may exclude gradual leakage and pollution cleanup6,7.
- Title insurance covers title defects, not contamination in the soil7.
- Environmental risk: a leaking tank turns a routine job into a cleanup project8.
Published prices
| Job | Published figure | Source |
|---|---|---|
| Above-ground / basement tank removal | $500–$1,500 | 9 |
| Above-ground tank removal | average $1,100 | 8 |
| Underground heating-oil tank removal | $1,000–$3,000+ | 9 |
| Underground heating-oil tank removal | average $1,900 | 8 |
| Soil sample lab analysis | about $220 each, typically 2–3 samples | 8 |
| Tank sweep (magnetometry), residential lot | $250–$500 (Philadelphia source) | 7 |
Leaks change the picture: cleanup is a separate, larger project8,9. Figures are published ranges, not quotes.
Realtors: see the realtor FAQ.
Lehigh Valley towns with the most oil-heated homes
Municipalities we cover where at least 30% of occupied homes are heated mainly by fuel oil or kerosene, estimated by the Census10:
| Town | Fuel-oil share | Homes (± margin of error) |
|---|---|---|
| Upper Mount Bethel Township | 55.9% | 1,475 ± 243 |
| Lower Mount Bethel Township | 53.5% | 634 ± 117 |
| Washington Township (Northampton) | 53.2% | 1,030 ± 207 |
| Lehigh Township | 47.0% | 2,021 ± 304 |
| Lower Milford Township | 42.4% | 616 ± 132 |
| Plainfield Township | 41.6% | 1,045 ± 282 |
| Coopersburg | 40.3% | 442 ± 96 |
| Wind Gap | 39.9% | 603 ± 142 |
| Bushkill Township | 39.5% | 1,255 ± 210 |
| Pen Argyl | 39.2% | 545 ± 184 |
| Washington Township (Lehigh) | 37.5% | 1,020 ± 207 |
| North Whitehall Township | 33.6% | 2,017 ± 298 |
| Lynn Township | 32.3% | 551 ± 135 |
| Moore Township | 32.2% | 1,113 ± 208 |
| Bangor | 31.7% | 630 ± 197 |
| Williams Township | 31.2% | 818 ± 215 |
| Nazareth | 30.3% | 908 ± 208 |
For comparison: Allentown 14.1%, Easton 8.6%10. These are 5-year survey estimates; small towns have wide margins of error.
FAQ
Does PA DEP require me to remove my home heating oil tank?
No. Tanks storing heating oil burned on the premises are excluded from the state program, and DEP says home heating oil tanks are not regulated1,3. Owners usually act because of a sale, a lender, an insurer, or leak risk.
How much does oil tank removal cost?
Published figures: above-ground $500–$1,5009 (average $1,1008); underground $1,000–$3,000+9 (average $1,9008). Leaks cost more.
Can I sell a house with a buried oil tank in PA?
State law doesn't prohibit it, but you must disclose known material defects4, and the buyer's lender may require inspection or documentation5,6.
Get a free quote
Tell us where the tank is (basement, side yard, buried, or unknown) and whether you're buying, selling, or refinancing. Allentown Tanks will connect you with a qualified local tank contractor. (215) 434-1322 · Request a quote
Sources
- Act 32 §103 (UST definition excludes heating oil for consumptive use)
- 25 Pa. Code §245.1 definitions
- PA DEP Storage Tank Data ("Home heating oil tanks are not regulated")
- 68 Pa.C.S. §7303 seller disclosure
- Fannie Mae Selling Guide B4-1.4-08 Environmental Hazards Appraisal Requirements
- Kash Mortgage Group, PA buyer guide
- Flagstone, Philadelphia oil tank guide
- Curren Environmental, PA oil tank removal cost
- Harned Durham Energy, heating oil tank removal cost
- Census ACS 2020–2024 5-year Table B25040 House Heating Fuel, county subdivision geography (table-based summary file)
- PA DEP Installer/Inspector Certification (certified company list)
- PA DEP Storage Tanks Financial Assistance (Underground Heating Oil Tank Cleanup Reimbursement Program)
- PA DEP, Apply for Oil Tank Cleanup Reimbursement
- USTIF Heating Oil Tank Program (voluntary, tanks of 3,000 gallons or more)
Sources accessed 2026-10-25 by TANKER Traffic.