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Oil Tank Removal and Replacement in the Philadelphia Area

By Tom Alvarez · Sources verified by the editorial team on Oct 31, 2026

Many older houses in Bucks, Montgomery, Chester and Delaware counties and in South Jersey still have an oil tank in the basement or buried in the yard. Some are still in use. Others were left behind after a switch to gas or a heat pump. A tank becomes a problem when you sell, when an insurer asks about it, or when it leaks. This guide covers what removal, abandonment and replacement cost, which rules apply in Pennsylvania and New Jersey, and what to do if you find a leak. If you're deciding whether to leave oil heat altogether, start with our oil-to-gas and heat pump conversion guide.

Remove, abandon or replace?

Option What it means When it fits
Remove Pump out the oil, clean the tank, take it out, check for leaks and fill the hole if it was buried. Fill and vent pipes come out too. Most common for basement and aboveground tanks. NJDEP "strongly recommends the removal of all out-of-service underground heating oil tanks even when there is no evidence the tank has leaked."
Abandon in place (closure in place) Clean the buried tank and fill it with an inert material such as sand, pea gravel, foam or cement slurry, then remove the fill and vent pipes. When the tank is hard to reach, such as under a driveway, porch or addition. NJ DCA says "tank abandonment is allowed," but buyers, insurers and lenders may still want it removed.
Replace Remove the old tank and install a new one, often a 275-gallon basement or aboveground tank, sometimes double-walled. When you're keeping oil heat and the tank is old, rusting or leaking.

New Jersey's Department of Community Affairs says there has been "an increase in previously abandoned tanks being removed," driven by "insurance and mortgage companies that do not want the liability" (NJ DCA Bulletin 95-1B). NJDEP also says that a tank abandoned in place by a certified contractor with permits isn't proof it never leaked. It knows of "many situations" where such a tank was later removed and contamination was found (NJDEP UHOT FAQ).

Your township or construction office decides whether it will permit abandonment in place.

What tank removal costs

No source we found gives a removal price based on a solid sample of Philadelphia-area jobs. The table shows what each source says, labeled by geography.

Source and geography Aboveground or basement Buried (underground) Overall
Angi, national (updated Sep 8, 2026; 266 projects) $400–$1,000 aboveground; "Specialty tanks" such as those built into basements or reinforced with concrete, $2,000–$7,000 $1,500–$3,000 $1,357 average; most pay $593–$2,153
HomeAdvisor, national (updated Jun 19, 2026), by size $300–$1,000 aboveground at 550 gallons or less $1,000–$1,500 underground or basement at 550 gallons or less; $2,800–$3,000 at 3,000 gallons $1,357 average; $593–$2,153 (the same figures as Angi)
HomeGuide, national (Apr 12, 2023) $500–$2,000 basement; $400–$1,800 aboveground $800–$3,400 $400–$3,400
HomeGuide, by state (Apr 12, 2023) n/a n/a Pennsylvania $700–$2,200; New Jersey $600–$2,700
Angi, Philadelphia page (updated Aug 22, 2026) $415–$1,030 aboveground $1,540–$3,080 $1,243 average; $636–$1,964 normal range

How to read these numbers. Angi and HomeAdvisor publish the same $1,357 average and the same range, so we don't treat them as two independent sources. HomeAdvisor's own page lists the top of its range as both $2,153 and $2,155. HomeGuide's state ranges are the closest thing to regional data we found, but they date from 2023. Angi's Philadelphia page sits at an "oil tank removal" address and its price box is labeled "Oil Tank Removal Cost Philadelphia, PA." But its text describes "Water or fuel tank installation," and its local figures run about 3% above Angi's national ones (our comparison). Angi doesn't say how many Philadelphia jobs the figures reflect.

Costs that can be added on

These are national figures from Angi unless noted.

Item National cost
Soil testing $50–$200 per sample or $300–$1,000 per project (Angi); HomeAdvisor says about $300 for aboveground tanks and closer to $500 for underground
Soil remediation if the tank leaked $50–$200 per cubic yard or $1,000–$10,000 per project (Angi); about $500–$10,000 (HomeAdvisor); $2,500–$17,000 (HomeGuide, 2023)
Removing piping, vent lines or monitoring wells $200–$800
Disposing of leftover oil $2–$5 per gallon or a flat $100–$500
Backfilling and grading $5–$15 per sq ft
Permits $50–$500 depending on your municipality (Angi); $30–$160 (HomeAdvisor)
Abandonment in place instead of removal $600–$3,400 (HomeGuide, 2023)

The three sources disagree on remediation. Once a leak is found, the price depends on how far the oil spread, and none of these ranges is a ceiling.

What a replacement tank costs

HomeGuide (Jennifer Carlson, June 23, 2025) gives these national figures for replacing an oil tank:

Replacement National average
Overall $1,200–$4,600 (national average $2,400)
Basement tank $1,200–$3,300
Aboveground tank $1,200–$3,200
Underground tank $1,600–$4,600
New 275-gallon tank alone, single wall $800–$1,900
New 275-gallon tank alone, double wall $1,200–$4,600

HomeGuide says "Most home fuel tanks are 275 gallons," and that replacement takes "4 hours to 1 day on average." Among its cost factors, it lists $250–$600 for removing and disposing of the old tank. If the old tank is buried and you're moving the new one indoors, budget for removing or abandoning the buried tank as a separate job.

In Philadelphia, the residential code limits the fuel oil stored above ground or inside a building to 660 gallons. By our reading, a typical 275-gallon basement tank is well under that. Ask your contractor what size and type of tank your house allows.

Pennsylvania rules

DEP doesn't regulate home heating oil tanks

Pennsylvania DEP says plainly: "Home heating oil tanks are not regulated" (PA DEP Storage Tank Data). The state's Storage Tank and Spill Prevention Act excludes "A tank used for storing heating oil for consumptive use on the premises where stored" (Act 32 of 1989; 25 Pa. Code §245.1). So you don't register a home tank with the state, and the state doesn't require you to remove one.

DEP still has advice for removing a buried tank (PA DEP Residential Home Heating Oil):

  • "Contact at least two reputable environmental professionals and obtain written quotes for the tank removal and contaminated soil cleanup, if necessary."
  • Call PA OneCall (8-1-1 or 800-242-1776) to mark underground utilities before digging.
  • After the tank comes out, check it for holes or corrosion and look for staining or vapors in the hole. "If any contamination is observed or suspected, notify your regional DEP office."
  • "Ensure the fill pipe and vent line have been removed or grouted to prevent accidental delivery of heating oil." Tell your last oil company that the tank is gone.

Cleanup reimbursement for leaking buried tanks

Although DEP doesn't regulate home tanks, it runs the Underground Heating Oil Tank Cleanup Reimbursement Program, paid for by the state's Underground Storage Tank Indemnification Fund (PA DEP):

  • Who qualifies: the owner of a buried heating oil tank of 3,000 gallons or less that heated the property, where a release happened or was discovered on or after January 30, 1998, and a cleanup is finished or under way.
  • Basement tanks don't qualify: "Aboveground heating oil tanks are not eligible for this program. This includes tanks on or above the floor in an underground area, like a basement or cellar."
  • How much: "Reimbursements have a $1,000 deductible." After that, DEP can repay eligible costs "up to a maximum of $4,000," per tank.
  • What isn't covered: removing a tank that didn't leak, installing a new tank, repairing the heating system, and costs that private insurance or another program covers.
  • Funding limits: "Up to $750,000 per year is available for this program through December 31, 2027." Applications are paid "first come, first served" each state fiscal year (July 1 to June 30), and "DEP does not guarantee the availability of program funds." Payments are reported to the IRS.

Philadelphia permit

Philadelphia's Department of Licenses and Inspections says "You need this building permit to install or remove hazardous material tanks" (L&I). The fees:

  • Filing fee: $25 for one- and two-family homes. It's nonrefundable but is "applied towards the final permit fee."
  • Permit: $158 per tank.
  • Surcharges: $3 city plus $4.50 state.

By our arithmetic, one tank comes to about $165.50 in city fees. L&I says "Applications for tank removal will be reviewed within 5 business days." A licensed contractor does the work. L&I requires a DEP certification only "If the tank is regulated by the PA DEP," and home heating oil tanks aren't. The page doesn't mention home heating oil tanks by name. Our reading is that the one- and two-family filing fee means houses are covered, but confirm with L&I before you start. Philadelphia's residential code adds: "Outdoor above- grade fill piping shall be removed when tanks are abandoned or removed" (Philadelphia Residential Code M2201.7).

Suburban townships

Each township sets its own permit rules and fees. Two examples:

  • Montgomery Township (Montgomery County): "A permit is required for the excavation and removal or the closure in place of any underground storage tank, which at any time contained a hazardous material." The contractor must show PA DEP tank-handling certification and $1,000,000 in insurance naming the township, the code official comes out, and "Soil samples shall be taken for each and every removal or closure in place" (Montgomery Township guidelines).
  • Middletown Township (Bucks County): "A permit is required for the removal, abandonment or for new installation of residential oil tanks" (Middletown Township FAQ).

Call your township's code office before you hire anyone.

New Jersey rules

NJDEP calls home heating oil tanks "unregulated," but several rules still apply (NJDEP UHOT FAQ; NJ DCA Bulletin 95-1B):

  • No removal mandate without a leak: "If there is no indication of a discharge, there is no state requirement that the tank be removed."
  • Permit: removing or abandoning a tank "requires an application for and the issuance of a demolition permit." The local fire subcode official handles plan review and inspection. Before the town signs off, you or the contractor must provide a sketch showing where the tank was.
  • Buried tanks need certified firms: "A closure certified individual working for a closure certified UST firm is required to remove underground UHOTs." You can look up certification in NJDEP's DataMiner.
  • Basement and aboveground tanks: a licensed HVACR contractor, a licensed plumbing contractor, a homeowner or a DEP-licensed contractor can remove one. "A contractor with an HIC registration cannot remove an aboveground oil tank."
  • Fill and vent pipes: inspectors must make sure they come out. DCA says oil has been pumped into basements and the ground after a fill pipe was left behind.
  • Conversions: DCA gives an oil-to-gas conversion as an example of when code officials must make sure the old buried tank is removed or abandoned.
  • Old abandoned tanks: the construction code doesn't require a permit to remove a tank that has been out of service for a long time, but NJDEP recommends getting one when available.

NJDEP audits tank removal contractors and attends selected removals, and a homeowner can ask NJDEP to audit their removal.

If you find a leak

Signs of a leak, according to NJDEP, include unexplained higher oil use, water in a buried tank, ongoing burner problems, dead vegetation over the tank, oil odors away from the burner, oil staining near the tank, and sheen in a sump or French drain (NJDEP UHOT FAQ).

In Pennsylvania: DEP says to "Report any heating oil release that may have contaminated groundwater or surface water to the local DEP office," and it recommends reporting all heating oil spills. For an environmental emergency, call 1-800-541-2050 (PA DEP). If the tank was buried, keep itemized invoices and proof of payment for a possible reimbursement claim.

In New Jersey:

  1. Report it right away. "Upon discovery of a discharge, the DEP must be notified immediately (within 15 minutes) by reporting the discharge to the hotline at 1-877-WARNDEP (1-877-927-6337)." The homeowner or the contractor can call.
  2. Hire help within two business days. For a buried tank, the owner must hire a certified closure contractor, start closing the tank and hire an environmental professional. For a residential aboveground tank, the owner must hire an environmental professional and start removing the tank (N.J.A.C. 7:26F-2.1).
  3. Expect soil sampling. After a discharge from a buried tank, "at least 5 samples will need to be collected." For an aboveground tank it's at least 2. The actual number depends on the size of the excavation.
  4. Closing the case: after cleanup, the certified company submits a report, and NJDEP charges "a non-refundable $400 review fee" to review it for a No Further Action letter.
  5. Call your insurer before the work starts. NJDEP says "Contact the insurance company prior to removing the tank," because some policies cover part of the cost.

New Jersey's Petroleum Underground Storage Tank Remediation, Upgrade and Closure Fund (UST Fund) still exists, but NJDEP says new residential applications won't be processed until money is available: "Currently there is a 3.5 year wait on all new applications." It stopped accepting applications for tanks that didn't leak on May 3, 2011.

Insurance in New Jersey

The New Jersey Department of Banking and Insurance says "Most homeowners policies exclude pollution liability caused by oil tanks with an option to buy-back $100,000 of pollution liability coverage for an additional premium." That buy-back "may only be offered once," and if you decline it, you "can not buy the coverage on any future policies" (NJ DOBI). Some insurers instead add a surcharge, some include $10,000 of cleanup coverage with $50,000 of liability, and "many companies have underwriting guidelines that may prohibit the writing of risks with oil tanks on the premises or based on the age of the tank." The department "urges all homeowners with oil tanks to have their tanks tested and inspected and to replace old oil tanks." Read your own policy or ask your agent what yours covers. We don't sell or recommend insurance.

Selling or buying a house with a tank

  • Pennsylvania: the seller disclosure form asks "Are you aware of any underground fuel tanks on the property?" and separately about "underground tanks or hazardous substances" (49 Pa. Code §35.335a).
  • New Jersey: the state's seller disclosure statement asks "Are you aware of any tanks on the property, either above or underground, used to store fuel or other substances?" and "If tank is not in use, do you have a closure certificate?" It also asks whether any underground storage tank has been tested (NJ Seller's Property Condition Disclosure Statement). New Jersey's 2024 instructions say these questions are mandatory for residential sellers (instructions).

If you're selling, gather the paperwork: the removal or abandonment permit, the town's certificate of approval, any soil test results and, in New Jersey, any No Further Action letter. In New Jersey, NJDEP's DataMiner lets you search its records by street address, including whether a No Further Action letter was issued (NJDEP UHOT FAQ). If you're buying a house with a buried tank or signs of an old one, such as a fill pipe or vent sticking out of the ground or a wall, ask your inspector about a tank sweep or test before your inspection period ends. We didn't find a state source on what a tank sweep costs.

How to read a quote

Check that each quote spells out:

  1. Scope: removal, abandonment in place or replacement, and for which tank.
  2. Oil and sludge: pumping, cleaning and disposal of leftover oil, priced per gallon or as a flat fee.
  3. Fill and vent pipes: removal or sealing, which Philadelphia's code and NJ DCA both call for.
  4. Soil testing: how many samples, who takes them, which lab, and whether results come to you in writing. Montgomery Township requires samples for every removal or closure in place.
  5. What happens if they find a leak: in New Jersey, the contract has to include "The maximum contract price that cannot be exceeded without written amendments to the contract." Elsewhere, ask for a written per-ton or per-cubic-yard price for contaminated soil and a cap you have to approve.
  6. Permits: who pulls them and whether the fees are included.
  7. Backfill and restoration: clean fill, grading, and patching the lawn, concrete or driveway.
  8. Paperwork: the permit sign-off, a disposal receipt for the tank and, in New Jersey, the closure documents you'll need when you sell.
  9. Certification: in New Jersey, the firm's NJDEP closure certification for a buried tank. In Montgomery Township, the PA DEP certification the township asks for.

PA DEP advises getting at least two written quotes for a buried tank. If you're switching to heat pumps in New Jersey, PSE&G lists a "Decommissioning Rebate: Up to $2,000 for required decommissioning work" with its full conversion rebate (PSE&G). It doesn't say whether that covers the tank, so ask before you count on it. Our conversion guide has the details on that program and on Atlantic City Electric's.

Contractor registration and contracts

Pennsylvania. The Home Improvement Consumer Protection Act requires contractors who did $5,000 or more in home improvements in the prior year to register with the Attorney General. For a job over $500, the contract must be in writing and include the registration number, the total price and your right to cancel within three business days. On contracts over $5,000, the deposit can't exceed one-third of the price plus the cost of special-order materials (HICPA; PA Attorney General FAQ).

New Jersey. Home improvement contracts over $500 must be in writing, and you can cancel "before midnight of the third business day" after you receive a copy (N.J.S.A. 56:8-151). For tank work, the tank rules above decide who can do the job: NJDEP-certified firms for buried tanks; for aboveground tanks, a licensed HVACR or plumbing contractor, a DEP-licensed contractor or the homeowner, but not a contractor with only an HIC registration. Our sewer line guide covers both states' contract rules in more detail.

FAQ

Do I have to remove an old oil tank I'm not using? Pennsylvania doesn't require it, and New Jersey doesn't require it if there's no sign of a leak. But in New Jersey, a project that leaves a buried tank out of service for a year triggers the fire code's remove-or-abandon rule. Your town may also require a permit, and buyers, lenders and insurers often ask for removal.

Is abandoning a tank in place cheaper? Sometimes. HomeGuide's 2023 national range for abandonment ($600–$3,400) overlaps its removal range. Removal lets the contractor see the tank and the soil under it, while an abandoned tank can still turn up contamination later.

Will Pennsylvania pay for my basement tank removal? No. DEP's reimbursement covers only leaking buried tanks, and it excludes tanks on or above a basement floor and the removal of tanks that didn't leak.

Who can take out a basement tank in New Jersey? A licensed HVACR contractor, a licensed plumbing contractor, a homeowner or a DEP-licensed contractor. A contractor with only a home improvement registration can't.

Does homeowners insurance cover a leaking tank? Often not fully. In New Jersey, most policies exclude oil tank pollution unless you bought the one-time $100,000 buy-back, according to DOBI. Check your policy before work starts.

Thinking about a project?

We don't offer quotes or connect homeowners with contractors. Get at least two written, itemized quotes from contractors registered or certified for your type of tank, and compare them with the checklist above. The costs and rules in this guide come from the sources listed below. Learn how we make money.

Sources