Oil Tank Removal in NJ: What the Rules Require

Residential heating oil tanks of any size, and commercial tanks of 2,000 gallons or less, are classed as unregulated by NJDEP. Only NJDEP certified individuals and firms can perform services on them. Removing or abandoning a tank needs a demolition permit from the local construction office, and a sketch of where the tank was has to be provided before the certificate of approval is issued. NJDEP recommends removal even without a leak. If the tank has leaked, report it to the DEP hotline. JWSR is not an NJDEP certified closure firm, so we do not take on the tank removal itself.

Where we stand

We are not an NJDEP certified closure firm. Our credentials are a New Jersey Home Improvement Contractor registration, a US DOT number, Certified Excavator of New York status and NUCA membership. None of those is the NJDEP tank closure certification. The rule says only certified people can do that work, and we would rather say so plainly than sell you a job we are not certified to do.

If you call us about a tank, we will tell you which part of the job is certified closure work and which part, if any, is ground work we do. We will not promise a price or a date for work we are not certified to carry out.

What the rules require

What	What the rules say
Which tanks count	NJDEP classes residential heating oil tanks of any size, and commercial tanks of 2,000 gallons or less, as unregulated. The definition is in N.J.A.C. 7:14B, and the bulletin quotes it: a tank used to hold heating oil for on-site consumption in a residential building, or a tank of 2,000 gallons or less used for that purpose in a nonresidential building.
Who can do the work	Only NJDEP certified individuals and firms can perform services on unregulated heating oil tanks. Tank closure has its own certification, separate from tank installation and from subsurface evaluation.
Remove it or leave it	NJDEP strongly recommends removing out-of-service underground heating oil tanks even when there is no sign that the tank has leaked. Abandonment in place is allowed.
The permit	Removing or abandoning a tank needs a demolition permit, even when it is done alongside other work. The permit should say how the tank is to be removed or abandoned in place.
The sketch	Before the certificate of approval is issued, the property owner or contractor has to provide a sketch showing where the removed or abandoned tank was.
Fill and vent pipes	The bulletin says inspectors must make sure fill and vent pipes are removed whenever a tank is removed or abandoned. It notes that fuel has been pumped into basements and into the ground after a fill pipe was left in place.
Who checks the work	Plan review and inspection fall to the local fire subcode official under N.J.A.C. 5:23-3.4. The certificate of approval closes out the permit once the tank is removed and disposed of, and the excavation is filled with certified clean material.
Sludge and waste	Tank sludge, rags and oily water go to a permitted facility under N.J.A.C. 7:26 for solid waste and N.J.A.C. 7:26A for recycling. The bulletin names used oil recycling and permitted wastewater treatment as options for oily liquids.
If contamination is found	Report it to the DEP hotline at 1-877-927-6337. Cleanup, including removing contaminated soil, goes through the NJDEP Unregulated Heating Oil Tank program. The number comes from the bulletin, so confirm it before you rely on it.
High groundwater	The bulletin warns that filling methods may not suit areas with high groundwater, because a tank that is filled in place can become buoyant and move.

Source: NJ DCA Bulletin 95-1B, which quotes N.J.A.C. 7:14B and cites N.J.A.C. 5:23, 7:26 and 7:26A. The unregulated heating oil tank program is at nj.gov/dep/srp/unregulatedtanks. Last reviewed 2026-10-13.

Remove it or leave it

The bulletin lists accepted methods for both. Removal means clearing the oil from the tank and piping, excavating to the tank, cleaning it, removing it and disposing of it at a proper facility. Abandonment in place means cleaning the tank and filling it with sand, pea gravel, plastic gravel, foam or cement slurry, and removing the fill and vent pipes.

Insurers and mortgage companies are the usual reason tanks come out, according to NJDEP. They do not want the liability, whether or not the tank was abandoned properly, and the bulletin notes an increase in previously abandoned tanks being removed. Abandoning one is allowed, but it does not make the question go away.

What to check before you hire anyone

Ask for proof of NJDEP certification for tank closure, for the firm and for the crew doing the work. The bulletin says these are separate certifications.
Ask who is pulling the demolition permit and who is preparing the sketch of where the tank was.
Ask where the tank, its sludge and any oily water are going. The bulletin requires permitted facilities.
Call the local construction office. The fire subcode official does plan review and inspection under N.J.A.C. 5:23-3.4, and the office is the one that closes the permit out.

Common questions

Do I have to take an oil tank out in New Jersey?

The state recommends removal, and abandonment in place is allowed. NJDEP's stated reason for pushing removal is liability: insurance companies and mortgage lenders often will not accept the risk of a tank in the ground, whether or not it was properly abandoned. Ask your lender and your insurer what they need, and ask the construction office what permit applies to your address.

Can I remove the tank myself?

Only NJDEP certified individuals and firms can perform services on unregulated heating oil tanks, so do not start the work until you have checked who is certified to do it. A certified firm should be able to show you its closure certification.

Can the tank be abandoned instead of removed?

Yes. The bulletin lists accepted methods, which include cleaning the tank, removing the fill and vent pipes, and then filling it with sand, pea gravel, plastic gravel, foam or cement slurry. NJDEP still recommends removal, and the bulletin notes that previously abandoned tanks are being dug up more often, so an abandoned tank is not necessarily a finished one.

Does a tank removal need a permit?

Yes. A demolition permit is required for removal or abandonment, even when the work is part of a larger job. The permit should specify the method, and a sketch of the tank's location has to be provided before the certificate of approval is issued.

What happens if the tank has leaked?

Report the contamination to the DEP hotline at 1-877-927-6337. The cleanup, including removing contaminated soil, then goes through the NJDEP Unregulated Heating Oil Tank program. The bulletin describes this sequence. The local construction office closes out the permit once the tank is removed, disposed of and the excavation is filled with certified clean material.

Code and source references

NJ Department of Community Affairs, Bulletin 95-1B, the primary source for the permit, sketch, certification, pipe, waste and contamination requirements on this page.
N.J.A.C. 7:14B, the definition of an unregulated heating oil tank, as quoted in Bulletin 95-1B.
N.J.A.C. 5:23-3.4, 3.20 and 3.21, the construction code sections the bulletin cites for responsibilities, plan review and inspection.
N.J.A.C. 7:26 (solid waste) and 7:26A (recycling), which the bulletin cites for disposal.