You’re days away from closing on a property. The buyer’s happy, the paperwork’s ready, and then the environmental report lands on your desk:
“There’s evidence of an undocumented underground storage tank on-site.”
Just like that, your clean deal suddenly feels cursed.
At CRG Texas Environmental Services Inc., we’ve seen this story more times than we can count. We call these “ghost tanks” – undocumented underground storage tanks (USTs) that were buried, abandoned, or simply forgotten. And much like ghosts, they have a way of resurfacing when you least expect them – usually right before a property sale.
If you’re selling property that might have had old fueling or industrial use, here’s why these undocumented tanks can haunt your transaction – and how to send them peacefully into the afterlife.
What Exactly Is a Ghost Tank (or Undocumented Underground Storage Tank)?
A ghost tank, also known as an undocumented underground storage tank, is a buried fuel or chemical tank that was never properly removed, closed, or recorded with the state. Think of old gas stations, mechanic shops, or farm properties from decades ago – before environmental regulations required detailed reporting and closure records.
Many of these undocumented USTs were simply emptied and left in place, often without the property owner even knowing they existed. Over the years, new buildings go up, ownership changes hands, and the paperwork gets lost in the shuffle.
Then, during a Phase I Environmental Site Assessment (ESA), something odd appears – an old Sanborn map showing “Fuel Dispensing,” or aerial imagery revealing a suspicious concrete pad.
That’s when alarm bells start ringing.
And if the buyer’s lender sees a red flag related to possible contamination or an undocumented underground tank? The deal pauses faster than you can say “title delay.”
Why Undocumented Underground Storage Tanks Are a Deal Breaker
From a buyer’s or lender’s perspective, undocumented underground storage tanks scream liability. Even if the tank hasn’t leaked, it represents a potential contamination source. That means expensive testing, possible remediation, and delays – all of which affect property value and closing timelines.
We once worked with a property owner in Pasadena, Texas, who was selling a small commercial lot that had once been a repair shop in the 1970s. Everything looked good until the buyer’s consultant noted “potential undocumented UST use” in old records.
Sure enough, our team conducted a scan using ground-penetrating radar (GPR) and found a 2,000-gallon steel tank still buried beneath the lot. It wasn’t leaking – thankfully – but the seller had to remove it and confirm clean soil before the bank would approve financing.
The good news? We handled the removal, sampling, and TCEQ closure documentation in just a few weeks, and the sale went through without further issues.
The bad news? If they hadn’t acted quickly, that same undocumented tank could’ve cost them the entire deal.
How Ghost Tanks Hide in Plain Sight
Undocumented underground storage tanks are tricky because they don’t give off obvious signs. You can walk over one for years and never know it’s there.
They’re often discovered through:
- Phase I Environmental Site Assessments (ESAs): These reports dig into historical property use and often uncover old fueling operations or industrial activity.
- Construction or renovation work: Excavation crews sometimes hit metal or piping no one knew existed.
- Soil or groundwater contamination: Petroleum odors or stained soil can trigger deeper investigations.
- Local permitting or TCEQ file reviews: Sometimes, a simple record search reveals unclosed or undocumented tanks from decades ago.
It’s not uncommon for these tanks to be from the 1950s-1980s, long before double-walled systems and corrosion-resistant materials became standard.
And because steel corrodes, those undocumented USTs – even if forgotten – can pose risks if they begin leaking.
The Real Cost of a Buried Surprise
Let’s be real: no one wants to spend money on something they can’t even see. But ignoring a ghost tank or undocumented underground storage tank can cost far more in the long run.
Here’s what’s typically involved once one is discovered:
- Tank removal and disposal: Excavating and safely removing a UST must follow strict Texas Commission on Environmental Quality (TCEQ) regulations.
- Soil and groundwater sampling: After removal, environmental professionals test for petroleum hydrocarbons to ensure the area is clean.
- Remediation (if contamination exists): If fuel leaked, soil or groundwater cleanup may be required.
- Regulatory reporting and closure documentation: Proper paperwork is essential to clear the property for sale and future use.
Costs can range from a few thousand dollars for a clean removal to tens of thousands if contamination is confirmed.
In one case, we assisted a commercial property owner in Baytown who had two undocumented tanks beneath an old service station. Because he contacted us early – before listing the property – we were able to remove both tanks, test the soil, and submit a clean closure report to the TCEQ. When the buyer conducted their own due diligence, everything came back spotless. The deal closed without a hitch – and the seller even used our report as a selling point.
How Environmental Professionals Detect and Remove Ghost Tanks
Environmental consultants use several methods to identify and confirm undocumented underground storage tanks:
1. Ground-Penetrating Radar (GPR) Scans
This non-invasive technology allows us to “see” underground using radar reflections. It’s often the first step to confirm the presence of buried metal tanks or piping.
2. Historical Research
Consultants review Sanborn maps, old building permits, aerial imagery, and city directories to trace prior land use. A line that says “Fuel Station” from the 1960s can reveal a lot about what’s below your feet.
3. Soil Borings and Sampling
If there’s reason to suspect contamination, consultants collect soil samples for laboratory testing. This confirms whether hydrocarbons have migrated into the surrounding environment.
4. Removal and Documentation
Once confirmed, the tank must be properly excavated, cleaned, and disposed of at a permitted facility. Consultants then collect confirmation samples and prepare closure reports that satisfy TCEQ requirements.
At CRG Texas, we handle this entire process – from investigation to final paperwork – so our clients can get back to business with peace of mind.
What to Do If You Suspect a Ghost or Undocumented Tank
If you think your property might have a hidden or undocumented underground storage tank, here’s what we recommend:
1. Pause Construction or Excavation
Don’t dig until you know what’s underground. Striking an unregistered tank could cause a release or trigger an emergency response.
2. Call an Environmental Consultant
A qualified professional can perform a site visit, record review, or GPR scan to determine if a tank is present.
(And no – a general contractor isn’t enough. This is specialized work that requires environmental expertise.)
3. Follow Regulatory Guidance
If a tank is found, your consultant will help you coordinate with the Texas Commission on Environmental Quality (TCEQ) to ensure proper closure, testing, and reporting.
4. Keep Records for the Future
Once the undocumented tank is removed, keep copies of all reports, lab results, and TCEQ correspondence. These documents are crucial for proving environmental compliance in future transactions.
Why Acting Early Protects Your Sale
Buyers love transparency – and lenders love documentation.
If you handle potential undocumented UST issues before listing your property, you’ll avoid:
- Last-minute delays during escrow
- Buyer renegotiations or withdrawals
- Price reductions due to “environmental uncertainty”
Think of it like this: handling a ghost tank early isn’t just damage control – it’s smart real estate strategy.
We had a client in Conroe who suspected there might be an undocumented underground tank on their industrial lot. Instead of waiting, they hired us to perform a quick assessment. Sure enough, one tank was found and safely removed. When it came time to sell, the buyer’s consultant reviewed our closure report and approved the site immediately.
The owner later told us, “That one decision probably saved me two months of headaches.”
Don’t Let an Undocumented Underground Storage Tank Haunt Your Future Sale
A ghost tank or undocumented underground storage tank doesn’t have to be a deal killer – but ignoring it can turn a smooth transaction into a nightmare.
With early action and the right environmental partner, you can uncover, remove, and document any hidden tanks before they become a problem.
At CRG Texas Environmental Services Inc., we’ve been helping property owners, developers, and lenders across Texas handle UST discovery, removal, and remediation for over 30 years. We understand the regulations, the science, and the urgency that comes with closing a deal.
If you think your property might be hiding a “ghost” beneath the surface – or an undocumented underground storage tank – don’t wait until closing day to find out.
Let our team investigate, document, and handle everything – so your property’s past doesn’t come back to haunt your future.
Contact CRG Texas Environmental Services today to schedule a UST evaluation or discuss undocumented tank removal with one of our experienced consultants.