We purchased a used home one year ago. On the premises is a buried 500 gal propane tank which was the fuel source for an inground pool heater (not used for anything else). The tank existence was disclosed to us. But there was no indication that the tank was not owned by the seller. (I am told there is a tag on the tank, but it is not particularly visible).

The gas company claims it is their tank based on the listing of the tank in "their inventory".

Apparently the standard contract for the gas company is to require a minimum annual payment equal to one full tank.

According to the gas company representative, they would not normally bury a tank that was being used solely for a pool heater.

According to the gas company, there have been no payments (and no deliveries of propane) for the past seven years. (Which makes sense as the previous owners had not opened their pool for seven years).

This all came to light as we desire to set up an automatic stand-by electrical generator, and we may open the pool next summer. So we contacted a gas company to do the hookup and eventually provide us with propane.

The gas company wants me to sign a contract which includes acknowledging their ownership, and acquiescing to the minimum annual purchase requirement. (As well as some other odious requirements concerning removal costs).

Under the circumstances, can they just claim they own the tank based on its listing in their inventory? Or do they need more proof? On whom is the burden of proof?

A possible scenario is that the prior owner, who was the developer of this area (about 10-12 homes) was just given the tank by the gas company at that time. That would be supported by their failure to collect any rental for seven years, as well as the burial of the tank which is a non-standard practice. I do not have contact with the previous owner, so I cannot confirm any of this.

Thank you

Have the gas company produce a sign contract, no contract, no claim, if the produce one have it verified, than contact an attorney since they abandond the tank.

As I understand it, its fairly standard that the propane supplier retains ownership of the tank.

Very seldom does the gas company ever sell the tanks, but provide them to be used if you buy the gas (propane) from them, if you wish to get gas form another company they have to remove their tank.

So this is fairly easy, just ask them to remove their tank from your property.

But as noted, if they can not provide a signed contract from a previous owner where they signed to lease the tank from them.

Or you can merely buy some 100 lb tanks and fill them and forget the underground tank.

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Originally Posted by Fr_Chuck

So this is fairly easy, just ask them to remove thier tank from your property.

But as noted, if they can not provide a signed contract from a previous owner where they signed to lease the tank from them.

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Well, I would prefer to keep this underground tank, and just purchase propane from time to time, without being subject to the usual minimum annual purchase amount that they usually impose on leased tanks (but did not impose on the previous home owner for the past seven years).

Even if the usual situation is that the propane company retains ownership, it is also usual for them to charge an annual rental if no propane purchases are being made -- and they have not been doing so.

They are presently looking for a contract with the previous owner. The marketing representative stated they could not show that to me, however.

What you would prefer and what you'll get are too different things. In the absence of proof that the tank was given to the previous owner, I believe the propane company will win out based on custom.