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Propane Tank Rental?

Old 04-22-2011, 07:44 AM
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Default Propane Tank Rental?

This year I got a bill from Suburban Propane for $60 to "rent" the propane tank that is buried outside my house. Of course, Suburban also supplies the propane.

Never received a bill to "rent" a tank before.

Is this a new thing for Suburban? Anyone else getting a bill for tank rental?
Old 04-22-2011, 07:53 AM
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Hey Chris--what size tank? The reason I ask is that I bought my own 100 lb tank @ Lowes for under $100. This size may be too small for your use. But, I run gas logs all winter with one re-fill in Ga. I take it to Ace Hardware to refill it myself for about $80.

Just a thought. Maybe you could bypass the thirsty blood sucker.

Also, I don't have to bury my tank where I live. Maybe yours don't have to be buried. If you could own your own tank--tell them to come dig it up and replant any grass damage they caused by retrieving their stinking tank. (just make sure you have someplace nearby that can purge and fill your tank) (new tanks must be purged first = $8)
Old 04-22-2011, 08:42 AM
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Amerigas did the same thing to me 10+ years ago, so I bought new 250 gallon tanks. I was then able to shop for best price. I've heard that some companies won't fill the tank unless they own it. I guess it depends on the area you live in.

Like Capt. Willie said, How much gas are you using in a year? does it have to be buried?
Old 04-22-2011, 08:47 AM
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Where I live (NC), we have two companies that deliver, neither one will deliver if you don't rent the tank from them.

They went and convinced the Legislature that it’s a safety issue to fill tanks that are not owned by them.
Old 04-22-2011, 08:58 AM
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We don't use but 100 gallons a year for the dryer and tankless hotwater heater.

And tanks do not need to be below grade here; above ground tanks are OK.

I spoke to Detweiller's Propane today and they will be happy to deliver propane to my house if I own the tank. So I am going to try to buy the propane tank from Suburban.
Old 04-22-2011, 12:16 PM
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Originally Posted by chrisrack View Post
We don't use but 100 gallons a year for the dryer and tankless hotwater heater.

And tanks do not need to be below grade here; above ground tanks are OK.

I spoke to Detweiller's Propane today and they will be happy to deliver propane to my house if I own the tank. So I am going to try to buy the propane tank from Suburban.
Before you buy the tank, find out what the liability issues are. Also, some states require the tanks to be recertified every X number of years at a cost of ?. It may be better to get the underground tank off the property and buy a new above ground tank.
Old 04-22-2011, 12:32 PM
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Liability issue--I don't see the stinking issue with my tank do you?
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Old 04-22-2011, 04:37 PM
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Originally Posted by chrisrack View Post
We don't use but 100 gallons a year for the dryer and tankless hotwater heater.

And tanks do not need to be below grade here; above ground tanks are OK.

I spoke to Detweiller's Propane today and they will be happy to deliver propane to my house if I own the tank. So I am going to try to buy the propane tank from Suburban.
How old is the tank? Might be about time to replace it anyway.;?
Old 04-23-2011, 03:24 AM
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Default Gas Tank rental

The company I use installed the tank and gave me a lease agreement, it states they own the tank and regulator, and the yearly fee is $000--. that's right no charge just gives them control over the assembly.
for repair and change out.
Old 04-23-2011, 07:16 AM
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I used to do subcontract excavation work for Suburban and several other gas companies. Suburban does lease the tanks, and in addition at least the office I subbed for, would add the leased tank to the land record at the court house to protect them if the property is sold. If you wish to have a leased tank removed, I would suggest reading the lease agreement first, they typically are for five years and automatically renew annually after that. If you don't call during the renewal window, you may be responsible for a minimum pruchase plus excavation costs for the removal. Generally with the leased tank, you are required to purchase at least the equivalent to one tank of fuel a year. Some companies wave the lease fee if the minimum is met. As far as charging a fee, the gas company has a substantial outlay for the equipment in the ground, and they do need to make their return on the investment. The underground tank will easily last 30 years, if not more with proper cathodic protection and clean backfill around the tank. You can offer to purchase the tank, but be prepared for sticker shock, they don't want to lose a customer. Most people don't want the hassle of digging up the yard to remove it, so the gas supplier almost has a permanent customer with an underground tank. If you go the removal route, make sure there are no encroachments in the tank area. I have seen decks, swimming pools, sheds etc. sitting over a portion of the tank. A 500 gallon tank is about 4x11 feet. Both sides of the tank will need to be removed to free it, so you will probably be looking at a hole of about 8x14 to get it out of the ground. I have installed or removed about 3000 of these things before I got out of the business. If you have any questions, PM me.
Chris
Old 04-23-2011, 07:48 AM
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Originally Posted by chrisrack View Post
This year I got a bill from Suburban Propane for $60 to "rent" the propane tank that is buried outside my house. Of course, Suburban also supplies the propane.

Never received a bill to "rent" a tank before.

Is this a new thing for Suburban? Anyone else getting a bill for tank rental?
My current Fuel Co tried the same thing......I called and asked them about the charge......Long story short is after explaining that the fee was more than the propane that I used and I would change over to a small portable tank or switch companies....they waived the fee!

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