Underground Propane Tank Systems: Sales, Installation, Costs & Maintenance

When it comes to underground propane tank installation, it’s of vital importance for propane salespeople, company representatives, customers and contractors to plan and set their expectations prior to any installation, especially with underground ASME containers. Sales personnel should emphasize to the consumer that propane allows an opportunity to gain independence from the power grid and is both efficient and reliable. 

They should discuss with customers their present energy situation and future appliances. (Note: The Propane Education & Research Council has brochures on propane containers, which should be distributed to the customer.) How will climate change impact your area, such as potential frequent electrical grid interruptions due to natural disasters like high winds, fires, floods and hurricanes? Is gas cogeneration and solar in their future?

How will electric companies prioritize customers in times of duress? Will they prioritize AI data centers, telecommunications, emergency response, hospitals, nursing homes, industrial and commercial accounts, or the homeowner? These pre-installation conversations could promote a range of questions, such as adequate tank sizing, interior and exterior pipe sizing, and system components. If home heating with propane, what is the annual K-factor for the area and estimated annual usage? Are there plans for any home expansion or room additions? What about future swimming pools, sheds or structures that could cause tank placement issues?

Customers should understand that propane is an oil-based product, and price fluctuations are common. Explain your company’s policy for price escalation and deescalation. Are there tank lease charges, delivery fees and environmental fees?

Does the customer prefer to be “automatic fill” or on a “will-call” delivery method? Who is going to monitor the tank percentage gauge? Today’s fuel monitoring technology can go a long way in retaining satisfied customers, especially where there is incremental use, i.e., generators, pool and spa heating, planting, and year-round or seasonal accounts.

Why an Underground Propane Tank?

Why go underground? The customer should understand the advantages and disadvantages an underground propane tank. If property size is not an issue, an aboveground tank may be preferable. Is the home in a deed-restricted neighborhood that requires underground bulk tanks? Is there a homeowners’ association that needs to be contacted and the installation preapproved?

A preliminary visit to the customer’s location should be a company requirement so all parties are reading from the same page. To eliminate any misunderstandings and unhappy customers, a written tank and equipment lease agreement between the supplier and the customer is necessary.

State laws may dictate a change of supplier-written notifications and the consent of the homeowner. Is the lease and equipment agreement transferable? Unless affixed with a suitable locking mechanism, any inactive tank over 100-gallon water capacity requires pressure testing every 12 months. Predetermine who is going to bear this cost should the home be sold.

Though not always a wise decision, many customers may prefer to own their underground propane tank. In these cases, a predetermination as to maintenance costs, including piping, regulators and liability, should be agreed upon and understood in advance.

As most states enforce National Fire Protection Association (NFPA) 58 and building codes, the latest requirements must be understood by all parties. Underground tank installations need on-site evaluation answering a few basic questions, like tank size and dimensions, vaporization rates, property excavation, tank setback codes (national and local) to buildings, property lines and sources of ignition.

Underground ASME tanks require periodic, documented cathodic protection inspection per NFPA 58 (2017) within 180 days of the installation and every three years thereafter. Who is responsible for conducting these inspections and maintaining records? Who pays?

Before you dig, purchase and service orders should be documented and agreed upon by all parties, including, but not limited to, permit requirements and costs, possible tank tie-down engineering drawings (required from an authority having jurisdiction), and obtaining and line-locating other utilities.

Does the customer understand there will be excavation equipment on their property and inevitable landscape disturbance requiring sod replacement? Customers should consider how the heavy equipment and disturbance may impact neighbors’ peace of mind and property.

Conduct an on-site evaluation to determine flood zones and flood potential, saltwater incursion, fertilizer and chemical saturation, and other corrosive considerations. Soil boring tests on commercial property should always be considered beforehand. What is the history of the property’s use?

Underground propane leaks always follow the path of least resistance, so consideration must be made as to the proximity of sewer lines, septic tanks, drain fields and French drains, and the gas line’s location. Underground gas line markers are mandatory and clean backfill is extremely important.

Of utmost importance is that the tank is 100% fully coated with no scratches or bare metal exposed. Anodes are properly sized and installed. Clean backfill can prevent any settlement issues.

Metallic or plastic company ID tags with the propane supplier’s name and contact phone number are required. Decals on underground tanks are not sufficient.

Post-tank installation should include a walk-through with the customer to explain tank shut-off valves, data plate information, percentage gauge measurements, avoidance of chemical saturation around the tank, care and emergency response criteria. Safety and duty-to-warn information must be provided to a consumer who purchases an underground propane tank.

All gas check documents must be completed and signed by the company and consumer.

For further resources on the ins and outs of propane equipment and navigating common questions marketers have, check out BPN’s Equipment section.