How to dispose of a heating oil tank: first have any remaining oil pumped out by a fuel company or tank removal contractor. Then the tank is cleaned of sludge, cut open, and taken for scrap metal. Basement and aboveground tanks are often removed in a few hours by licensed contractors. Underground tanks usually require permits, removal or closure in place under local rules, and soil checks for leaks. Keep all paperwork, because buyers and insurers often ask for it.
Aboveground vs underground tanks
| Tank type | Typical process |
|---|---|
| Basement or garage tank | Pump out, clean, cut, haul for scrap |
| Outdoor aboveground tank | Same; check soil under the tank for staining |
| Underground storage tank (UST) | Permit, excavate or abandon in place, soil sampling |
Rules for residential heating oil tanks vary by state and town, so check with your fire marshal or environmental agency.
Steps for removal
- Check requirements with local permitting, fire, or environmental offices.
- Hire a licensed tank removal contractor; many states license them.
- Pump out remaining oil and sludge. Usable oil can sometimes be transferred to a new tank.
- Disconnect lines and cap fill and vent pipes so no one accidentally delivers oil to a removed tank.
- Clean and cut the tank, then haul it to a scrap yard.
- Inspect for leaks and test soil if required.
- Get documentation, including a certificate of removal or closure.
Why DIY removal is risky
Old tanks contain sludge and vapors that are flammable and hard to clean. Cutting a tank with a torch can cause explosions. Spills require costly cleanup. Many places also require licensed contractors.
Leaks and cleanup
If soil or groundwater is contaminated, cleanup can be expensive. Some states have funds or insurance programs that help homeowners with heating oil tank leaks. Notify the appropriate agency as required.
Switching heating systems
Removing a tank often happens when converting to natural gas, propane, or a heat pump. The old oil furnace or boiler can also be scrapped. See retiring a home furnace.
Leftover fuel
Small amounts of kerosene or heating oil from containers should go to hazardous waste or a used oil collection site if accepted. See how to dispose of kerosene.
Scrap value
Steel tanks have modest scrap value; contractors often include hauling in their price. See scrap yard versus landfill for clean metal.
Buying a house with an oil tank
Ask whether there is or was a tank, including buried tanks from older systems. A tank sweep can detect buried tanks. Ask for removal or closure records.
Signs a tank needs replacing
Rust, weeping seams, damp spots on the bottom, a strong oil smell, and wet or stained ground under outdoor tanks are warning signs. Many older steel tanks corrode from the inside, so a tank can fail even when the outside looks fine. Ask your fuel supplier to inspect it.
How to dispose of a heating oil tank FAQ
Can I remove a heating oil tank myself?
It is risky and may be restricted; licensed contractors are recommended.
What happens to the oil left in the tank?
It is pumped out and may be reused or disposed of properly.
Do I need a permit to remove an oil tank?
Often for underground tanks, sometimes for aboveground ones; check locally.
Is an oil tank worth scrap?
Steel tanks have some scrap value, usually offset by removal costs.
Why cap the fill pipe?
To prevent accidental oil deliveries into a removed tank.
The bottom line
How to dispose of a heating oil tank: have the oil pumped out, then hire a licensed contractor to clean, cut, and scrap the tank. Underground tanks usually need permits and soil checks. Cap old fill pipes and keep all removal paperwork.
Guides and tools
Motor oil and filter guide · Dump cost calculator · All material guides