Qualified Tank Services has come to market with what’s called a Fixed Cost Site Remediation. Basically, Qualified has found a need in the market. That need is to help clients limit their liability when buying a house with an underground oil tank.
The last thing that you want to do is buy a house not knowing that it has an oil tank, finding out that it has an oil tank after you purchased it, and get stuck with a clean-up that could cost $5,000, $10,000, $20,000, $30,000, $40,000, $50,000, or $100,000.
This fixed cost site remediation is really geared to buyers of real estate. The perfect situation would be you’re purchasing a property that has underground oil tank. The seller doesn’t want to remove the tank, or he or she doesn’t have the funds to remove the tank or clean up the environmental if there is an issue.
You hire Qualified Tank Services to come in. We bring our specialized equipment which is a Geoprobe. This is a $150,000 piece of equipment. We’ve invested in this equipment so we could provide this type of service.
With our Geoprobe, we’re able to perform what’s called the delineation. The tank could be in the grounds still. It doesn’t have to actually be removed. With the tank in the ground or out of the ground, we can perform what’s called the soil delineation. Our project manager and Geoprobe operator will drill anywhere from six to 12 borings into the ground surrounding the oil tank or surrounding the old oil tank excavation.
He’s going to probe down to try to determine the vertical and horizontal delineation of the actual contamination.
The process basically tells us how deep the contamination went and how far- out the contamination travelled. Once we do this type of inspection, we’re able to give you what’s called the fixed cost remediation.
The fixed cost remediation is one price. That price could be $5,000. It could be $10,000. It could be $15,000. It could be $100,000. It depends on what we find during our investigation process.
Once we have completed our investigation, we’ll give you the fixed cost price. This price will include everything, whatever it takes to get a “no further action letter for the property.” If we told you it’s going to be $10,000, it’s going to be $10,000. We have to take out 100 tons of soil and do a groundwater investigation that would normally cost roughly $25,000. That is the benefit of getting a fixed cost price.
What it does is it limits your liability when purchasing a property. This works well for investors who have to know their numbers going into the purchase of the property. They have to know three numbers: the rehab cost, the ARV, and the purchase cost.
To determine the purchase cost, they first have to determine their ARV. Then, they have to figure out what the rehab cost is. With an oil tank on site, and the fixed cost remediation that we offer, we’re able to work that into the rehab cost.
So, if we tell them it’s $15,000 for the environmental, they know, with confidence going into the project, that it’s going to be $15,000. As opposed to any of the competition out there who give you a quote for, let’s say, $10,000 or $12,000. They’re just throwing numbers on a piece of paper when they tell you it’s going to cost, $10,000 or $12,000, because that’s the average clean-up cost.
If you buy the property and then they hand you an invoice for $75,000, you’re in a lot of trouble. With our fixed cost remediation, we tell you ahead of time that it’s $10,000. It’s not going to be a dollar more or less than $10,000. The price will be $10,000 to get you a “no- further action letter.“
Normally, just to determine a fixed cost price would require a soil delineation. The price of that would be anywhere from $3,500 to $4,500 to perform a full-blown soil delineation with groundwater, if necessary.
Qualified is able to cut those costs down by performing a soil delineation without a lot of the additional costs involved. There are no samples that we run through the lab. We utilize the PID meter to determine the extent of the contamination.
We don’t utilize a sub-surface evaluator because we’re not writing any reports for the New Jersey DEP. We don’t have this sub-surface evaluator put together a report or a CAD drawing with the map showing the sample points with all the depths. It’s just not necessary to determine the cost of the fixed cost remediation.
We’ve cut back a lot of the expenses associated with the normal soil delineation, and we broke it down to basically a Geoprobe for the day with an operator with a PID meter.
That price is $1,500. So, for $1,500 you’re limiting all your liability moving forward. You’re basically getting a price that’s guaranteed, so you know going into purchasing the property that you’re not going to be paying a penny more or a penny less.
This is something that we can merge with our soil testing. So let’s say you hire us to do a soil test on your property. We come out with our Geoprobe to do a soil test and determine on the first soil sample that it’s contaminated.
Our normal soil testing is only three samples. We combine the three samples into one and send that to the lab. We usually charge about $650 for the service. If you hire us and we come out and find that the first sample is contaminated, . At that point, you can advise us that you want to move forward into the fixed cost remediation quote and that process.
Instead of paying $650, you would actually pay $1,500 for the day. We would be able to stay on site and finish the delineation to determine the extent of the contamination to be able to give you that fixed cost remediation.
This needs to be approved ahead of time. You need to tell us going into the soil testing that this is something that you may want if we find contamination. This way, we could put it on the schedule properly.
Don’t hesitate to call our office to get more details. Ask for Teddy Slack Junior, he’s the owner and president of our company. He can give you all the details and the options that come with the fixed cost remediation.
This is a new program that we just rolled out. We’re tweaking all of the details on it, but we have rolled it out. We have offered it to a few customers who are very happy with the product that we rolled out.