How to Repair a Leaking Underground Oil Tank

Surprise! This was the scene at our house yesterday:

Here’s what happened. A few weeks ago we had the soil around our home’s underground oil tank tested so we could confidently tell any potential buyer that everything was in good condition. To our dismay, the tests revealed a small leak. We felt blindsided. After years of using a rain barrel, compost bin, energy-efficient appliances and even cloth diapers to reduce our environmental footprint, we discovered that our buried oil tank had been quietly leaking beneath the surface. It was the last thing we expected.

Fortunately, the Virginia Department of Environmental Quality (DEQ) takes these situations seriously and offers financial assistance for cleanup. That program meant we only needed to cover a $500 deductible for removal of the old underground tank and the contaminated soil around it, while the state covered the majority of the typical $2,000 remediation cost. That help made a big difference. We did, however, pay roughly $1,300 to install a new above-ground oil tank. While that was an extra expense, an above-ground tank has the clear advantage of being visible and therefore far less likely to leak unnoticed in the future.

The silver lining is that we’re essentially leaving a safer, updated system for the next homeowner. Coincidentally, the house we’re moving into also recently got a new above-ground tank, so we’ll be inheriting another tank that’s fresh and reliable. It’s oddly satisfying to know both properties will have modern, visible tanks rather than hidden, aging ones.

When crews excavated our old tank, they estimated it was around 30 years old. Seeing it unearthed was a stark reminder that even durable equipment eventually fails. The corroded exterior looked awful, yet the visible damage was surprisingly small—a dime-sized hole near the bottom. Technicians warned that other holes could be obscured by compacted dirt or residue, so appearances can be misleading. Even a tiny breach like that is enough to contaminate surrounding soil over time.

On the bright side, oil doesn’t travel far in compacted soil like ours, so the contamination was fairly contained. The DEQ’s remedy usually involves removing the tank and excavating the affected soil. In our case, the hole they dug to reach the tank was substantial. They had to remove two azalea bushes to create space for the excavation, but the driveway and large trees were spared. After removing the contaminated soil, the crew filled the excavation with gravel and topsoil and then replanted the azaleas they had carefully preserved. They did caution that they couldn’t guarantee the shrubs’ survival, but the effort to restore the area was appreciated.

Although it’s bittersweet to spend money correcting a problem that predates us, we feel better knowing the contamination was addressed promptly and professionally. We also like the idea that the new above-ground tank improves the environmental safety of our property for future occupants. It’s a relief to close that chapter as we prepare to move, and oddly enough it feels a bit like good house karma—especially since the sellers of our new home experienced a similar issue and upgraded to an above-ground tank as well.

Has anyone else dealt with oil tank problems or other unexpected, un-green discoveries in their home? Finding out about an environmental issue right before the holidays is a particular kind of stressful. We learned a lot from the experience, and we hope sharing it helps others consider testing and inspecting their tanks before small problems become big ones.

P.S. If you’re interested in creative recycling ideas, we came across a clever DIY play kitchen made from an old TV unit that’s inspiring for repurposing furniture and keeping reuse in mind.