When tank removal is needed
- Switching dealers — your old dealer collects their leased tank; new dealer installs theirs
- Selling the home with a leased tank — buyer may take over the contract or arrange removal
- Fuel conversion — replacing propane with natural gas, electric heat pump, or other
- End of life — rare; ASME tanks last 30+ years but rust, damage or relocation may force replacement
The removal procedure
Licensed technicians handle removal. The typical sequence:
- Disconnect the tank from the regulator and gas line
- Evacuate residual propane by pumping back into the truck or another tank
- Cap or remove regulator and underground line as needed
- Load and remove the tank from the property
- Backfill the hole (for underground tank removal) and restore landscaping
What it costs
Leased tank pickup fee: $100–$300 typical, depending on dealer and state. Some states cap this through anti-fill laws. Underground tank removal: add $500–$2,000 for excavation and backfill. Residual propane: typically refunded to you at the dealer's current retail rate, unless the contract specifies otherwise.
FAQ
Who pays for tank removal?
For leased tanks: the customer pays a pickup fee; the dealer does the work. For customer-owned tanks being removed (e.g. converting to natural gas): the homeowner pays for licensed removal service ($300–$1,500 aboveground, $500–$2,000+ underground).
Can I remove an underground propane tank myself?
No. Tank removal — especially underground — requires a licensed propane technician and typically a permit from the local fire marshal or building department. DIY removal violates code and creates serious safety risk.
Do I get refunded for propane left in the tank?
Usually yes. Most US dealers refund residual gas at the dealer's current retail rate. The exact refund mechanism varies — confirm in writing before pickup.