March 10, 2003
To: All customers with fuel oil heating equipment and storage
tanks
Dear Customer,
We have searched our records from our database and have found
that you will more than likely be affected by changes in the regulations
governing fuel oil heating appliances and storage tanks.
Changes in Regulations
Custom
Vac Limited is a member in good standing with the
Canadian Oil Heat Association (COHA) and has been following changes
in regulations in other Provinces over this last year in regards
to fuel oil heating appliances and storage tanks. Our Province
has not yet made changes to the r egulations to date but we can
assume that this is only a matter of time.
The B139 Canadian Standards
Association (CSA) Fuel Oil Code, is, what we as installers and
service providers must follow. However, the Insurance carriers
have set a much higher standard. Before they will grant insurance
coverage on your home or building they will likely force you to
upgrade your appliance and/or fuel oil storage tank possibly even
the chimney.
Environmental Issues
You may be aware of
the heightened environmental concerns since they have been shown
in documentaries on TV. Canada still has a considerable number
of homes and buildings that utilize fuel oil for space heating
and domestic hot water. The increased liability that the Insurance
providers have been facing reached a breaking point with higher
and higher numbers of storage tank failures especially in Atlantic
Canada. As such, we have been recently contacted by not only Insurance
companies but also by owners of these types of appliances to inform
us that they require an inspection or upgrade to their present
heating appliance and/or storage tank.
The Proactive Approach
Custom Vac Limited
is taking the proactive approach in that we are presently
upgrading ourselves by taking in-house training using materials
provided by COHA such as the "Basic Inspection Program." In addition,
we are reviewing the requirements that have been recently adopted
in Ontario with respect to tagging and documentation of both,
the condition or the heating appliance and storage tank(s). While
we do understand that this is not being enforced here to date
the clean-up costs and potential for you to be denied coverage
by your Insurance carrier is not worth the risk.
Over this last year Custom Vac moved to installing
ZCL Composites double wall fuel oil storage tanks. We made the
decision to install this product for many reasons but the main
ones are that it fits the best in most retrofit applications,
comes with a 25 year warranty and $1,000,000.00 coverage in the
event of tank failure. Due to many site conditions it is not always
possible to install these tanks, as such, we may have to continue
in these situations installing steel tanks.
You may be saying to yourself at this point, "I just install a
new tank outside." It is true that you can do this, but in reality
the best research conducted to date proves that fuel oil storage
tanks installed inside where they are at a constant temperature
dry and clean is the best. The number of storage tank failures
that we have dealt with over the many years, confirm this. In
addition, the regulations call for containment pans if installed
outdoors.
Customer Impact and Options
So, what does this mean to you and why are we sending you notification
at this time? Quite simply, many of these appliances have well
exceeded their normal life expectancy of operation and for those
of you with heating appliances that have exceeded 25-years should
consider replacing these with new 80% efficient appliances. In
addition, the fuel oil storage tanks should also be replaced at
this same time. Another option for those of you that have the
availability of gas would be to have us convert you from oil to
gas or from oil to electricity. What would be the best is to schedule
an in-home meeting with you to discuss the various costs and options.
For this feel free to contact Denise at 204-775-7744 anytime to
arrange this.
Our Commitment to Our Customers
For Custom Vac
this is going to once again be a turning point in the history
of our Company since at the moment we continue to install, service
and maintain all gas, oil, electric and propane appliances. Many
Companies have abandoned oil as finding and training technicians
is not easy. We remain committed to maintaining fuel oil services
to our customers but if the rate of decline continues we may be
forced to eliminate the full parts and labour coverage (Service
Agreements) due to the shrinking pool of Customers. In that event
we have every intention to continue to offer our services. What
is helping at the moment is that many Companies have abandoned
their customers, which we are acquiring.
This summer's annual servicing and inspections will be done following
a more aggressive cleaning and inspection than possibly done in
prior years. As such we did not want you to be surprised if we
red tag your appliance or fuel oil storage tank. In addition,
for example in Ontario fuel oil delivery agents can no longer
supply fuel to tanks that have not been inspected and their serial
numbers recorded. As such they must have the tanks inspected by
qualified technicians or oil cannot be delivered.
In closing, oil heat is in our opinion the most comfortable heating
source, and cannot be beat. Having said that; it is important
that while we achieve a higher level of comfort, we must also
realize that everything has a normal useful life. Many of the
appliances that we have been maintaining well exceed 25 years.
By today's standards these appliances are very inefficient and
have the potential for an oil spill creating untold problems not
to mention the environmental damage.
Thank you
Brian Baker
President
Note:
This letter has been sent to all customers within our database
as of March 10, 2003 in either the "Active" or "Inactive" coding.
In addition, is being held on file as record of our due diligence
in informing our customers of the issues regarding Fuel Oil Heating
Appliances and Fuel Oil Storage tanks.
