Having a bee nest under your lawn can be a problem. This guide is about getting rid of underground bumble bee nest.
How should I go about getting rid of a bumble bee nest in the ground? They take offense at our mowing the lawn. I've heard those nests can get very large under ground if left alone.
Lynn from Albany, NY
Uh -dumping fuel on the ground is not very environmentally smart - not to mention illegal in many locations. I have read of dumping soapy water with bug spray mixed into it into the nest at night, as well as covering it tightly with plastic trash bags so they overheat and cannot escape (weigh it down with logs). The OSU website gives some info on different kinds of bees that nest in the ground and some chemicals you can use: http://ohioline.osu.edu/hyg-fact/2000/2143.html
I had that same problem a couple of years ago.
After being stung twice, I emptied an entire can of wasp/hornet spray onto the area.
Those cans are designed to spray a stream about 25 feet, so you don't have to get too close to the nest.
It also killed the grass in that area for several months, but I considered that a very small price to pay.