Frequently Asked Questions

Answers

How much does it generally cost to clean up the contamination caused by an oil tank leak?
It can vary depending upon the severity and time-frame of the leak, the topography and geology of the site, depth to groundwater; soil lithology; and, the proximity of the vessel to your home and bodies of surface water, etc. The cost of an average clean up is approximately $7,000.00 - however - they can range upwards of over $100,000.00 in severe cases.

Does my homeowner’s insurance cover oil tank leaks?
Above all else, it should be understood that each insurance company has varying policy restrictions that may affect the general rule of thumb described below. Further, each insurance policy may contain specific limitations based on the home-owner's policy period; length of coverage; required application disclosures; information submitted by the home-owner's, etc.

In order to understand the answer to this question we need to explain the difference between first-party coverage and third-party coverage. First-party coverage deals with a leak and subsequent clean up that is confined to your property. Third-party coverage deals with a leak and subsequent clean up that spreads to your neighbor’s property. Under New Jersey case law, the definition of third-party coverage also includes the clean up of groundwater, even if it is limited to your property.

Homeowner’s insurance policies generally contain a provision that excludes first party coverage. Therefore, your homeowner’s insurance will pay only for the portion of the clean up which relates to the following: 1. Groundwater impact on your property. 2. Contamination that has migrated to your neighbor’s property.

Do homeowner’s insurance companies charge extra if I have an underground tank?
Recently, some homeowner’s insurance companies have begun adding a surcharge for homes with underground tanks.

Is there a state program that pays for the replacement of underground tanks and how does that program work?
The State of New Jersey has a Petroleum Underground Storage Tank Remediation Upgrade and Closure Fund (UST Fund). Grants are available under this fund to pay for the clean up of a leaking underground tank and the cost of installing a replacement tank. You must meet the following criteria to qualify for a grant under the UST Fund: 1. Your tank must be leaking. 2. Your net income must be less than $200,000 per year. 3. Your net worth, not including the equity in your house and qualified plan funds (e.g., 401(k) or IRA) has to be less than $200,000. 4. There is a $250 application fee that is required by the NJDEP.

Should I replace my oil tank?
Generally, if your underground or above-ground tank is more than 30 years old, it’s probably a good idea to consider replacing it. Most homeowners, upon replacing their UST opt for an above-ground Roth double wall tank that we distribute and install is the best and most cost-effective replacement tank on the market today.

How long does it take to receive soil and groundwater testing results on my property?
Generally, soil results are received within 10 days of sampling. Groundwater results are normally received within 2 to 3 weeks of sampling.

Will my property be restored to its original state?
That depends on your insurance policy. In most cases, site restoration is covered under your home-owner's policy.

When will my property be restored? Do I have to do anything to aid in the process?
After the NJDEP issues the NFA letter the property can be restored. Restoration can not happen prior to receipt of the NFA for the simple fact that the NJDEP may require additional investigation and/or testing prior to issuing the NFA. In short, insurance companies will not pay for site restoration twice under the same claim.

In order to assist in the site remediation process, the home-owner must obtain a minimum of two estimates from local contractors to complete the site restoration. These estimates should be forwarded to Catamount for review.

The winning site restoration contractor gets paid directly from NJM. NJM requires all work to be completed prior to issuing payment to the contractor.

When will the monitoring well on my property be removed?
Once the NFA is received a licensed well driller will obtain the necessary permits (usually takes two weeks) and schedules the well decommissioning. It is strongly encouraged that any site restoration occur after the well is decommissioned.

Will I get a copy of the test results on my property?
Designed and, subsequently improved upon, the waste vendor program for this client. Client wished to go to a very specific checklist format for its audit reporting process based on the types of wastestreams generated. Refined an existing protocol to allow for the new format that cut the auditing and report time by two-thirds. Trained staff on use of the new protocols.

How do I know that the remediation was done correctly? What documentation will I have to demonstrate that the work was satisfactorily completed?
As stated above, the NJDEP receives and reviews all testing results and reports associated with the UST leak and subsequent remediation. The NJDEP reviews these reports (commonly referred to as "Remediation Action Reports") - and if the State's review finds the work was conducted in accordance with NJDEP's regulations - a No Further Action ("NFA") letter is issued. The NJDEP's NFA letter is transferable to the future owners of the property and is accepted means for which to document tank closure.