Tanks & gauges
Leasing vs owning a propane tank
When you lease a propane tank, the propane company owns it, sets it and keeps it in service, and you buy your propane from that company. When you own the tank, it is your equipment to maintain and paint, it normally stays with the property, and you choose who fills it.
Updated · American River Gas office, Newcastle
The short version
American River Gas delivers to both leased and customer-owned tanks, so either path works with us. The difference is who is responsible for the steel, the valves and the paperwork.
- Leased: the company owns the tank and handles its upkeep. You get propane from the tank's owner.
- Owned: you own the tank and its care. A qualified dealer who agrees to serve it can fill it after a safety check.
- Either way, the piping, regulators and appliances in and around your home still need a leak check whenever service is set up or interrupted.
How a leased tank works
The company sets the tank, connects it and keeps the tank in good working order. Because the company owns it, it is normally the only company that fills it. The lease agreement spells out what is included, so read it and ask questions before you sign.
Leasing is often the simplest route for a new setup: no tank purchase, and one call handles delivery, service questions and any tank problems. It also suits people who might sell the house in a few years.
How an owned tank works
Owning puts the tank in your hands for the long run. Every tank carries a data plate showing its water capacity, the pressure it was built for and whether it is made for above-ground or underground use. Keep a photo of that plate with your house records.
Paint is part of the job. A tank that was powder coated should not be painted, because paint will not stick. A painted tank can be repainted only after it is cleaned of dirt and rust, with an industrial oil-based primer and an oil-based alkyd finish in a light, heat-reflective color. Dark colors let the propane heat and expand, which can open the relief valve. Call our office before you paint.
When an owned tank joins our service, it gets a new-customer leak test before gas is turned on. That is standard for every new setup, leased or owned.
What stays the same either way
Leased or owned, the tank is only one part of the system. The line to the house, the regulators and every appliance connection have to be sound, and a leak test is required after new installations, repairs, shut-offs, out-of-gas events and new appliances. A system that fails its check is red tagged and stays off until the problem is fixed.
Safety habits do not change with ownership either. Keep objects off the tank, keep pets from being tied to it, and keep the path clear for the driver. If you smell gas, leave the building first, then call 911 and us from outside.
Buying or selling a home with a tank
A leased tank belongs to the company, not the house. The new owner sets up an account with that company, or arranges a change. An owned tank normally conveys with the property, so it belongs in the sale paperwork. Either way, call us before closing so deliveries and billing move to the right person.
Questions to ask before you choose
If you are not sure where you stand, call (530) 888-7438. We can look at the tank, explain your options and set up a new tank on either basis.
- Who owns the tank now, and is there paperwork to prove it?
- How old is the tank, and what does its data plate say?
- What is included in a lease: setting the tank, service calls, moving it later?
- How long do you expect to live in the house?
- Is the tank the right size for how you use propane today?
Questions
Straight answers
Can another company fill a tank I lease?
Normally no. A leased tank is owned by the company that set it, and that company fills it. Check your lease agreement for the details.
Who pays for repairs on a leased tank?
The lease agreement says what the company covers. Generally the owner keeps its tank in service, while appliances and house piping are the homeowner's.
Can I switch my own tank over to American River Gas?
Yes. We deliver to customer-owned tanks. A new-customer leak test is done before the gas is turned on.
Can I paint my propane tank?
Only if it was originally painted, not powder coated, and only with oil-based primer and a light, heat-reflective alkyd finish. Call us before you start.
Which is better for a house I plan to sell soon?
Leasing usually keeps things simpler, since the tank stays with the company and the buyer just sets up service. Owning makes more sense when you expect to stay for many years.
Related
Keep reading
Sources: OSHA 29 CFR 1910.110, storage and handling of liquefied petroleum gases (container distances, markings, underground installation) (opens in a new tab) · Propane Education & Research Council: getting your propane system inspected (opens in a new tab) · NFPA 58, Liquefied Petroleum Gas Code (opens in a new tab)
Newcastle yard · since 1966
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