lease or buy propane tank

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  • Hunterjjd

    Active Member
    Jun 29, 2011
    118
    amerigas was raping us so i dug up their tank and told them to pick it up, they weren't happy thinking they had us 'over a barrel.'

    switched providers but ended up just leasing their tank. should have bought though to keep my options open.

    really wish i could find someone who would price off some established index vs just charging us whatever they want each time.
    Wish I had recorded the lady and the guy when I told them, YES your tank is dug up and sitting in my yard, COME GET IT.

    Like they had never had someone dig up a tank before
     

    Gorba

    Deplorable Member
    MDS Supporter
    Aug 24, 2018
    341
    Annapolis
    Buy the tank for the reasons already stated above. Also, remember that a 100 gal tank only holds 80 gals, a 500 gal tank holds 400 gals. 20% must be reserved for expansion space.
     

    XCheckR

    Ultimate Member
    MDS Supporter
    Mar 20, 2013
    4,202
    HdG
    Buy.

    We have 1000 buried. I buy a full tank once a year in August. Lots of options and best pricing.

    I run insta hot and furnace (x2) in coldest part of winter plus standby generator.
     

    slowpoke

    Ultimate Member
    Feb 2, 2011
    1,114
    Annapolis
    We have owned ours for 20 years, but every time we set up with a new supplier I have to provide evidence that I own the tank. So definitely keep your documentation.
     

    motorcoachdoug

    Ultimate Member
    MDS Supporter
    I would buy the tank. If you can afford it buy 2 of them,bury them next to each other and connect them together also then come winter depending on the size of the tanks that you brought, you will not have to worry about running out unless you got really small tanks and or you really used the propane plus think about getting a home genny and connecting it to the tanks to be used as a backup power source as well.
     

    adit

    ReMember
    MDS Supporter
    Feb 20, 2013
    19,507
    DE
    amerigas charges extra per gallon at each fillup. when I discovered I was paying about $1 per gal extra for tank rental... I got my own tank installed. Btw - ironically Amerigas was best deal to install my tank for me.

    now I play southern state against amerigas and others and get the best price. they won't play best price unless you are getting 250 or more gallons... make it worth their while.

    bury 500 in the yard, good for 25 years or so. and buried they usually will fill to 85% instead of 80%. (muffled bomb I guess!)

    They will fill more because you don't have the temperature swings.

    I have BJ's fill my 20lb tanks. The guy there bleeds all the air out. If left in the direct sun I've seen them "blow off" the excess pressure (your arse will pucker if it ever happens to you).

    Wish I had recorded the lady and the guy when I told them, YES your tank is dug up and sitting in my yard, COME GET IT.

    Like they had never had someone dig up a tank before

    The last one we rented (many years ago) we had planted tree/shrubs all around the yard.

    Supplier wouldn't lower his rates, or sell the tank so we could buy at lower rates. There was no way for them to get equipment in there to dig it up. Told them to bring a few guys, some shovels, and come get their tank. They were willing to sell it at that point (300 gallon tank, paid $500 for it).

    so you have a contract where they charge you the index plus some fixed spread? when i switched some years back no one would do that.

    No. That is how they calculate their tank rental propane rates.

    If you are buying large amounts of propane you can get creative. A friend of mine goes through a ton of propane (pizza place). He actually has a negotiated fixed rate per gallon and a meter on his tank feed (has 4 300 gallon tanks) . He only pays on propane as he uses it. The propane company tops off the tanks every week in the summer.

    Buy.

    We have 1000 buried. I buy a full tank once a year in August. Lots of options and best pricing.

    I run insta hot and furnace (x2) in coldest part of winter plus standby generator.

    This.

    Buy in the off season (varies, but usually starts in February/March, August is pushing it). Monitor the rates, they change every Monday. They are usually published here (historical info available as well) within 2 days. https://www.indexmundi.com/commodities/?commodity=propane&months=12

    We have owned ours for 20 years, but every time we set up with a new supplier I have to provide evidence that I own the tank. So definitely keep your documentation.

    Yes, it's a game they like to play.
     

    Batt816

    Ultimate Member
    MDS Supporter
    Dec 1, 2018
    4,087
    Eastern Shore
    Buy.

    We have 1000 buried. I buy a full tank once a year in August. Lots of options and best pricing.

    I run insta hot and furnace (x2) in coldest part of winter plus standby generator.

    ^^this^^

    If you are thinking of a generator definitely buy a tank. your price is based on your usage. Those with cooking accounts only pay 3 times more than those with whole house heating. A generator needs a stored amount so you will have a big tank, using low gallons. Your tank lease will be high. You can shop prices with your own tank up to the end of August, but definitely stay away from AMERIGAS or suburban, especially AMERIGAS. In your area (Milton) Tri-gas or Sharp will probably offer good pricing. Not sure if Grays goes that far or not but they are by far the most honest and fair of all the company's around. Don't ask me how I know but I may or may have not used to work for Amerigas:lol2:
     

    firemanyz

    Active Member
    MDS Supporter
    Apr 25, 2011
    519
    Eastern Shore
    Another vote for Gray’s gas. They are located in Denton and are very fair people. If they will come to Milton I’d use them no questions. Also right near Milton is Bakers fuel and they are worth getting an estimate from. Good luck
     

    TapRackBang

    Cheaper Than Diamonds
    Jan 14, 2012
    1,919
    Bel Air
    OP: Like most have said, BUY IT! Much more flexibility.

    A 100 gallon tank is a waste of time/money.
    Not necessarily. If you buy a single tank larger than 125 gallons, NFPA regulations require it to be a minimum distance from the house (10 ft to 500 gal, 25 ft over that). Meanwhile you can stack as many 100 gallon (or smaller) tanks as you want right up against the house (minimum distances from windows and intakes applies). In some cases, that's better. Installation is cheaper. Replacing or adding tanks is easier and cheaper. Not hard to hide behind a bit of privacy fencing. I realize that may not work if you need 400+ gallons or don't have a place to put them that is aesthetically OK.

    I'm in a small house and have two 100 gal tanks right against the back. I use propane for cooking, heating, and hot water. One tank developed a fill valve problem. Costs too much to replace it, so I got a new tank and swapped them out. With two tanks I have enough I can go almost three seasons without a fill, and 20-30 days in the deepest cold of Winter. I'll probably add a third tank so I can go longer in the Winter and give me more margin to shop around.

    bury 500 in the yard, good for 25 years or so. and buried they usually will fill to 85% instead of 80%. (muffled bomb I guess!)
    The space is for the propane to expand when it gets hot. If the tank is buried, the maximum temperature will be much lower than an above-ground tank, so less expansion room is needed.

    If you own your tank, do you have to get it pressure tested periodically?
    If it's an ASME tank, no. Most large stationary tanks are ASME. My tanks were new in 1985 IIRC and have not been retested. So long as the exterior of the tank is kept in good, rust-free condition, they will last decades upon decades. Note they have to be completely emptied by licensed dealer before they can be moved off property. Can't just haul them to the junkyard when they are done.

    DOT tanks ("cylinders" technically) meant to be transported full (BBQ, 30, 40, and 100 lb tanks usually) do have to be retested 12 years after manufacture, and every five years after that.
     

    adit

    ReMember
    MDS Supporter
    Feb 20, 2013
    19,507
    DE
    They want to put in 100 gallon tank (fireplace, stove, water heater). I want to go to 300 gallon for possible other uses in the future.

    A 100 gallon tank is a waste of time/money.

    Get a 275/300, or 500/1000 and bury it. You won't get any price breaks with 70-80 gallon deliveries.

    After about 2.5 - 2.75 refills the tank should pay for itself.

    OP: Like most have said, BUY IT! Much more flexibility.

    Not necessarily. If you buy a single tank larger than 125 gallons, NFPA regulations require it to be a minimum distance from the house (10 ft to 500 gal, 25 ft over that). Meanwhile you can stack as many 100 gallon (or smaller) tanks as you want right up against the house (minimum distances from windows and intakes applies). In some cases, that's better. Installation is cheaper. Replacing or adding tanks is easier and cheaper. Not hard to hide behind a bit of privacy fencing. I realize that may not work if you need 400+ gallons or don't have a place to put them that is aesthetically OK.

    I'm in a small house and have two 100 gal tanks right against the back. I use propane for cooking, heating, and hot water. One tank developed a fill valve problem. Costs too much to replace it, so I got a new tank and swapped them out. With two tanks I have enough I can go almost three seasons without a fill, and 20-30 days in the deepest cold of Winter. I'll probably add a third tank so I can go longer in the Winter and give me more margin to shop around.

    The space is for the propane to expand when it gets hot. If the tank is buried, the maximum temperature will be much lower than an above-ground tank, so less expansion room is needed.

    If it's an ASME tank, no. Most large stationary tanks are ASME. My tanks were new in 1985 IIRC and have not been retested. So long as the exterior of the tank is kept in good, rust-free condition, they will last decades upon decades. Note they have to be completely emptied by licensed dealer before they can be moved off property. Can't just haul them to the junkyard when they are done.

    DOT tanks ("cylinders" technically) meant to be transported full (BBQ, 30, 40, and 100 lb tanks usually) do have to be retested 12 years after manufacture, and every five years after that.

    My point was about getting propane discounts. You're not getting the same deal at 70-80 gallons as you are getting at 250-850 delivered.

    As for buried tank longevity, you do need to change the sacrificial anode bags (usually magnesium chips) periodically. They should be checked every 3 years.

    You also need to be aware of the water table as well. Flood/high waters will upend them, as they float.
     

    fabsroman

    Ultimate Member
    Mar 14, 2009
    35,852
    Winfield/Taylorsville in Carroll
    Thread revival. Actually remembered reading this thread back in April or thereabout.

    Debating whether to sign a contract with Suburban Propane. At first, I was going to do it, because tank rental was only $10 a year if we use $20 of propane a month on a yearly average. Figured we would do that easily just with hot water and showers/baths for 6 people in the household. However, then I started reading the contract and it was like Suburban Propane was asking me to bend over. It isn't liable for any damage or injury that it causes when coming into the yard to remove the tank if we terminate the contract. That applies even if we go through the three (3) years contract term and terminate years down the road. Then, it dawned on me that only the very first delivery of propane is set in stone at $1.29 a gallon. After that, they have me by the cajones for the next 35 months.

    So, how does one go about buying and installing a propane tank? Would probably be looking at a 500 to 1,000 gallon tank in the southern Carroll County area. Do I buy the tank separately and then have somebody install it? Do I buy the tank from the same place that is going to install it? Anybody have any referrals for western Howard County or southern Carroll County?

    Damn, just realized that this thread is in the Delaware forum. Might have to start my own in the Water Cooler or Central Maryland forum.
     

    TapRackBang

    Cheaper Than Diamonds
    Jan 14, 2012
    1,919
    Bel Air
    Contracts are almost never good deals, unless you are the propane company. If they were a good deal for you, they wouldn't offer them!

    Lots of places sell tanks. Decide what size you want, call around for pricing and availability, ask them how much to install. Certified gas fitters can do the installation instead of the propane company. But whoever you buy the propane from will likely require their own leak test before selling you gas.

    Here's an example of tank prices and installation costs:
    https://www.thriftypropane.com/purchasetank


    I just had an old (35 years) 100 gallon tank replaced because the valve was malfunctioning and couldn't be replaced economically (which is nuts). Prices Thrifty shows are in-line with what we paid. But then Aero stabbed me in the eye with a $120 leak test that took 15 minutes. $480/hour is nuts! I'm shopping around after that nasty surprise. Though unless I want to pay for another leak test, I may have to stick with Aero. But at least now I have a gauge on the new tank so I can manage my own refills!
     

    adit

    ReMember
    MDS Supporter
    Feb 20, 2013
    19,507
    DE
     

    CharlieFoxtrot

    ,
    Industry Partner
    Sep 30, 2007
    2,527
    Foothills of Appalachia
    Timely reboot. Let me tell you my saga with Amerigas. We have a smallish tank 120 lbs I think. We use it to run a propane fireplace in the house. Tank is owned by Amerigas. We go through one tank per year so we never make the minimum and we get charged a rental fee for the tank. Tank is probably 10 years old. I just called for my annual refill and they quoted me $4.58/ gallon to fill our tank! I said no I want 2019 prices please. They couldn't explain why it was so high. So I discussed my options with them: bend over and pay their price, buy the tank for $225 + tax, or have them come remove the tank for $135. Still deciding what to do.

    PS just filled up our 500 gallon tank at cabin in PA for 1.56/gallon
     

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