Underground propane tank?

[Hugh Griffith]

Anyone see this before? I've seen a bunch of buried oil tanks and a gas tank or two on residential properties, but not a pressurized tank buried under ground. It is an estate appraisal and no one is available to verify anything. The heir thinks that the tank has been there for a long time, probably has propane; and is still hooked up to the gas logs in the fireplace. I feel that this is a safety issue(although I would prefer an underground vs aboveground tank in case of an explosion-less collateral damage), but not certain if mentioning the tank is sufficient(with all my disclaimers) or requiring some type of inspection would be prudent. Any experience or thoughts? Thanks!

 

[DJBanas]

I would definitely request an inspection of the tank. There may be leaking into the soil from underneath. The tank may be 90% rusted through and will give way in a year or two. Many more bad things can happen....all of which can pose a big legal and liability headache for you. Since you are aware of the tank's existence you should note it on the report and request the inspection if for no other reason than CYA.

 

[Mike Kennedy]

Suggest treating it similar to underground old oil tank - potential hazard / environmental risk ......depending on market - possibly also functional obsolescence. Definitely "subject to inspection". Did Purchase 2 years ago - same issue - contract and loan contingent upon removal with replacement above grade.

 

[Stone]

Suggest treating it similar to underground old oil tank - potential hazard / environmental risk ......depending on market - possibly also functional obsolescence. Definitely "subject to inspection". Did Purchase 2 years ago - same issue - contract and loan contingent upon removal with replacement above grade.

Really?

I've seen a few up here, though it is significantly more expensive to place one below ground, so not that often. Personally, I would mention it and move on.

A below ground tank certainly isn't going to get run into by anything. Guess I'll have to give it more thought next time. Hmmmm.

 

[Otis Key]

We see propane tanks underground all the time out here. It's no big deal. They bury them to, as Michael said, to avoid them being hit, but more for asthetic reasons. All you see is the red cap, which many of the HO's tend to plant bushes around, much the like of the propane company delivery guys.s Mention the propane tank and move on, but don't know about that there oil tank stuff.

 

[Carnivore]

Definitely do something.

Does the term Phase one mean anything.

 

[Wayne Tomlinson]

I have seen many of those over the years That type installation is done with a particular type valve set-up and appears to meet gas codes.

Since the heirs are aware of it, it is still in use, I am wondering why it is any more than a mention in the report.

It is for an estate, not a lender, you are not being the "eyes on site" in this case. The people just want a value for establishing basis down the road, or possibly for settling the estate. Let them make the disclosure when the time comes. You will likely have some bit of a problem establishing any type of value for an adjustment in value.

Wayne Tomlinson

 

[Hugh Griffith]

Suggest treating it similar to underground old oil tank - potential hazard / environmental risk ......depending on market - possibly also functional obsolescence. Definitely "subject to inspection". Did Purchase 2 years ago - same issue - contract and loan contingent upon removal with replacement above grade.

An oil tank is more of an environmental problem; whereas a pressurized tank could present other concerns. It appears that this tank probably was designed to be underground and could be OK. I have located an independent inspector, licensed by the state, who will test the tank and will go that route. Being in the Sunny South, I don't see as many heating systems as I do A/C. Thanks again!

 

[Restrain]

It was common to bury them. New regs require them to be above ground. There is no real cost as the propane company will replace the tank with a new one, other than the monthly rental. Note it and truck on.

 

[John LaBelle]

These are quite common in MA & NH. Check with local building department to make sure they are legal. If they are legal, state it's there and say something like "this appraisal assumes the tank conforms to state environmental guidelines. If it does not conform, the opinion of value can change by an unspecified amount. Upon transfer of a property, it is the lender's responsibility to certify compliance."