Propane Tank Location

[bg71361]

I just went through the whole ordeal of choosing a propane company, and having my tanks set. Here in Maryland, can't speak for any other part of the country. If I initially wanted a 500 gallon propane tank, it would have to be set 10' from the structure and 10' from the property line. In my case only having 15' behind my building I could not use the larger tank. So I opted for 2 of the 100 gallon tank, these tanks are roughly 5' tall and about 3' in diameter. They can be set right next to the building. I made a gravel pad, with concrete pavers. The propane company was just going to set them on 3 cinder blocks laid on there sides. The tanks also had to be 10' from the exhaust, which goes through the wall. And they want the tanks within 100' of were the truck could park. I had one guy that wanted me to put the tanks real close in a spot I did not want them in. Were I wanted them was about 60' feet away, he gave me a boat load of crap, so I told him to take a walk.

See attached pictures for reference only. First is the 500 gallon tank, second is the 100 gallon tank (420lbs)

Bill

 

[capt jack]

I have a guy from the Texas railroad commission standing near me (they regulate propane co's in Texas) here is the code: under 1000 gal. min. 10 ft. from a structure, Over 1000 gal. min. 25 ft. Underground tanks ANY SIZE 10 ft. min., Under 150 gal. have no min. setbacks.
Jack

 

[CurlyDave]

Wow!

10' seems very, very close to the house for that much propane.

Since I have 700' to a property line, I will put the tank a bit further from the house, at least 25', but I won't worry about it.

I checked prices today and a local company wants $1800 to sell me a 500 gallon tank and $75/ year to rent one. 1000 gallon rents for $100/year.

Now, if I take that $1800 and put it in the bank @ 5%, I can get $90 per year interest, so I think I will be renting the tank.

I think I would prefer a 1000 gal one just because we are at the uphill end of a steep road. Two cars went off the road last week when it snowed. I would hate to run out of propane in the middle of a snowstorm when no trucks could get up the road.

How heavy are these tanks? Why can't I just pick one up with my FEL and put it where I want it?

 

[scott_vt]

How heavy are these tanks? Why can't I just pick one up with my FEL and put it where I want it?

Mornin Dave,
I dont have an answer on exactly how heavy the tanks are. When I bought my 330 gal tank from the farmer up the road, the tank was half full, so Im guessing I had at least 150-170 gals in the tank at that time. He has a 60 hp JD and he just barely lifted the tank up to get it on a trailer to tow to my house.

 

[bmac]

Has anyone used a buried propane tank? For our property, I was hoping to do this (and keep it close to the drive for ease of filling).

Planning for the excavation at the same time as other major excavations should help keep the costs down.

Don't know about California. But we buried our 500 gal tank with no problems.

 

[schmism]

How heavy are these tanks? Why can't I just pick one up with my FEL and put it where I want it?

Sunshine Propane

according to that a 250 gallon weighs in at a hefty 540lbs
a 500 gallon is (guess what) bout twice as much 1060
and a 1000 gallon ~ twice that.

so ya if you can hoist around 1000lbs pounds with your FEL ya you can. (i was going to buy a couple of 250 gallon from various private party's and move them myself....)

 

[schmism]

Now, if I take that $1800 and put it in the bank @ 5%, I can get $90 per year interest, so I think I will be renting the tank.

what your missing is what you might end up paying as a "gocha" preiumum on your gas price as other dealers will not fill up tanks you lease from someone else.

so knowing your stuck with bubba's gas service he tacks on $.25 a gallon because he can.

 

[Phils]

what your missing is what you might end up paying as a "gocha" premium on your gas price as other dealers will not fill up tanks you lease from someone else.

so knowing your stuck with bubba's gas service he tacks on $.25 a gallon because he can.

schmism's point is valid in this area. My propane co. of choice ONLY sells tanks. No rentals. 20 years ago they sold their previous propane business to CalGas, then opened another.

Their price now is always the lowest in the area (I occasionally check). They explained that renting tanks cost them a bunch, mostly on rented homes. The people wouldn't pay the bill but it's illegal for them to confiscate the propane or tank, so they'd lose the money.

So for their new company: NO tank rentals. And because of that, lower propane prices. And I CAN get my propane from any company although I never have.

Phil

 

[CurlyDave]

what your missing is what you might end up paying as a "gocha" preiumum on your gas price as other dealers will not fill up tanks you lease from someone else.

I am aware of the issue.

Right now, when I don't have a propane tank, or even a finished house, everyone is quoting very competitive rates. About $0.10 above what the gas stations with propane charge. Certainly the delivery is worth that much.

Fortunately, in Grants Pass, there are numerous gas stations which also sell propane and post their prices prominently. There is no doubt on the best price in the area.

If & when a supplier wants to charge more than a nominal markup over the posted price, I will simply get a friend or neighbor to call & ask about prices. If they quote a "come-on" price to someone else, I can be pretty assertive about wanting that price myself.

Although, most of the people I have met get their gas at competitive prices, even with rented tanks. One of the advantages of the free market & several hungry delivery companies.

 

[3RRL]

Dave,
I like your thoughts about the rental fee vs keeping the $1,800 and earning interest on it, effectively earning enough to pay for the annual rental. Net effect is you get your tank for free and have more to spend on fuel. So if your captive gas company charges you say 10¢ more per gallon, you would could use about 900 gallons a year before it actually starts to cost any more.

On the other hand, if you were to spend the money and buy a tank for $1,800 you'd have to amortize the cost of that tank over the gallons you buy. For example, IF YOU SAVE say 10¢ per gallon, it would take 18,000 gallons to break even. Or about 900 gallons per year for the next 20 years. Excluding service and repairs, if any.
Just something to think about...