Smoke Problem - Ideas?

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If anything ever happened your insurance company would have a feild day with that. You also still need adequate draft to evacuate the smoke. It may work it may not. The only way to be sure would to be to run a liner from it up and out. Which if you are doing that why not use a stove or insert and actually get heat
 
Slow and steady wins the race. Go to a local HVAC supply house and buy a sheet of 24/26 ga sheet metal house. Go to Harbor Freight and buy a pair of their electric shears. I just bought a pair that will do up to 14 ga for $59. Cut the pieces to fit and run some experiments blocking off different parts of the fireplace. It would be best to use straight mild steel sheet for this as the galvanizing on the ductwork sheet will smell...badly. You have a couple months left in the season to play around in this voyage of discovery. If you liked the last mason you had in there consult with him on how he thinks the blocks should be done. I wouldn't want to throw a pile of dough at it without additional info and you will be better informed to make the correct mods.
 
Thanks for all the helpful responses. Would a motorized exhaust fan installed on the top of the chimney possibly solve the problem? Any particular model recommended?
 
Thanks for all the helpful responses. Would a motorized exhaust fan installed on the top of the chimney possibly solve the problem? Any particular model recommended?
No it is a very expensive and high maintenance bandaid to try to cover up the real problem which is simply a horrible fireplace design
 
You would be much better off to install an insert and a full, insulated liner. That would be safer and would provide much better heating.
 
I mostly agree with the comment from Jackfre, about covering the open side with sheetmetal.
I'd cover the entire open L side, and do test burns from the other side with the doorset, to see if that fixed the smoking, and to help think through how you want to utilize the fireplace, if you're investing in it.
It's possible that installing another (cheap) doorset on the open side, plus filling the additional open 'L' area with sheet metal could work almost just as easy, and give you the option of burning from that side.
Maybe sheet metal thin enough to cut with hand snips can be used, but you need to attach it securely.

The best fix depends on how you want to use it, and how much money is to be allocated for it.
Do you want to use it from one side or the other, or both?
A lot depends on that question, to determine the best actions to take.

Do you think spending several grand on a top suction fan that must always be on (with a hum) during use will be considered a good solution for you? It may solve the smoke issue, but comes with negatives too. Still, it could be best for you.

Installing a wood or gas insert is a great option and creates heat, if that's how you want to enjoy the fireplace.