Domestic heating oil tanks under scrutiny

Fiberglass 200 gallon single wall fuel tank.

Storage tanks that are unprotected or not maintained represent a potential for environ-mental pollution. There are between 1.2 million and 1.5 million homes that heat with oil in Canada. Over the last few years, there has been a startling number of tank failures and the trend will grow as traditional steel oil heating storage tanks corrode.

The majority of steel fuel oil tanks rust from the inside out. Because of condensation, water and sludge accumulate at the bottom of tanks. This combination creates an ideal environment for internal rust or corrosion of the steel tank wall. More often than not, this damage is not visible and manifests itself as a catastrophic tank failure. Leaking tanks are also a result of improper tank maintenance, damp locations, and mechanical damage. Outdoor installations are more susceptible to condensation as a result of day-night temperature changes and humidity. Exterior rusting is noticeable by the small pinholes on the tank.

Nearly 40% of all fuel leaks reported to local and provincial ministries of environment are from domestic, heating oil storage tanks in private homes. The Insurance Bureau of Canada, Atlantic Division, says that claims paid for clean-up as a result of leaks from heating oil systems account for 5% of all claims paid under homeowners' policies. Oil leaks from storage tanks and line ruptures have caused insurance claims to jump by about 50% in the past few years. Clean-ups can cost between $20,000 and $125,000 or more. Some clean-up costs can grow to greater than the value of the house.

These are avoidable costs. Insurance companies and governments have recognized that without immediate attention to the problem, leak incidences from domestic tanks will increase and costs for clean-up will skyrocket. Several insurance companies are now offering refunds to their clients to encourage them to replace their furnace and storage tank systems. Tank and furnace manufacturers are also offering rebates to customers for furnace and tank replacements.

The Atlantic provincial governments and most recently the Technical Standards and Safety Association (TSSA) in Ontario have instituted or are studying the possibility of introducing new regulations for heating oil storage tanks to counter oil spills. The rules would require that only licensed installers install and regularly inspect tanks. Tanks would have to be tagged and registered and oil deliveries be made only to tanks that have the registration tag. Therefore, the responsibility for tank maintenance has been divided among the owner, the installer and the oil company.

Manufacturers of storage tanks have improved their products and warranties. Several new tank products have been marketed during the last few years. Steel tanks have gone to a heavier gauge to mitigate the effect of corrosion and perhaps increase the lifespan. New technologies for non-metallic tanks have emerged so that internal corrosion ceases to be an issue. ZCL Composites offers two tank designs: the all fiberglass tank, available in single wall and double wall versions, and the polyethylene tank, secondarily contained in a galvanized steel container. Both of these tanks have been proven, tested and are ULC listed for the storage of fuel oil.

Industry warranties range from 10-25 years and address clean-ups in the event of leaks caused by a faulty tank.

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