The answer may surprise you, but yes – underground propane tanks are regulated. In fact, there are a number of regulations in place that govern the installation and use of these tanks. While some may view these regulations as burdensome, they are actually in place for the safety of both the homeowner and the propane company.
Table of Contents
Regulations for Underground Propane Tanks
Underground propane tanks are regulated by the National Fire Protection Association (NFPA). The NFPA regulates the installation and use of propane tanks. The regulations for underground propane tanks are designed to protect the public from the dangers of propane.
The regulations require that propane tanks be installed in accordance with the NFPA’s standards. The standards for installation of propane tanks are available from the NFPA.
OSHA has its own standards as well. It is stated in 1910.110 – Storage and handling of liquefied petroleum gases.
What are the Requirements for an Underground Propane Tank?
There are a few requirements for an underground propane tank that are regulated. The tank must be at least 10 feet away from any building, 10 feet away from any property line, and 50 feet from any source of ignition. The tank must also be buried at least 5 feet below the ground.
A state might have its own requirements with regards to the installation. Again, those numbers mentioned above may differ and depend on your state’s local requirements.
What are the Codes and Standards for Underground Propane Tanks?
There are a few codes and standards that regulate underground propane tanks. The first is the National Fire Protection Association (NFPA) 58, which covers the storage and handling of liquefied petroleum gases (LPGs).
The second is the American Petroleum Institute (API) Standard 650, which covers the design and construction of tanks for storing petroleum products. Finally, the Underground Storage Tank (UST) regulations promulgated by the Environmental Protection Agency (EPA) cover the installation and operation of underground storage tanks for a variety of petroleum products, including propane.
What are the Inspection Requirements?
Underground propane tanks are regulated by the National Fire Protection Association (NFPA) and must meet the requirements of NFPA 58. Tanks must be constructed of steel or other approved materials and have a minimum wall thickness of 5/16 inch. The tank must be buried a minimum of 5 feet below the ground surface and have a minimum of 18 inches of soil cover over the top of the tank. A corrosion-resistant coating must be applied to the exterior of the tank. The tank must be equipped with a pressure relief valve and a vapor return valve.
What are the Maintenance Requirements?
Underground propane tanks are regulated by the National Fire Protection Agency (NFPA). The NFPA sets the standards for the installation and maintenance of propane tanks.
The most important regulation for underground propane tanks is the requirement that they be buried at least 10 feet below the ground. This is to protect the tank from being damaged by vehicles or other objects.
Other regulations include the requirement that the tank be surrounded by a layer of gravel, that the tank be inspected every five years, and that the tank be filled by a licensed propane dealer.
What are the Replacement Requirements ?
There are no specific replacement requirements for underground propane tanks, but they must be in good working condition. Tanks that are old or in poor condition may pose a safety hazard and should be replaced.
The inspection and replacement of the tank must be done by the qualified technician of the company. Homeowners are not allowed to do any repair on the tank.
Companies do provide extended warranty of their tank on your property for additional cost. This gives you an option for better maintenance when the tanks gets older to make sure the tank is in good working condition for additional more years.
What are the Safety Requirements?
There are a few safety requirements for underground propane tanks that are regulated. First, the tank must be at least 10 feet from any building or structure. Second, the tank must be buried at least two feet below the ground. Third, the tank must be surrounded by a two-foot wide strip of bare ground. Fourth, there must be a valve at the top of the tank that can be used to shut off the flow of propane. Finally, the tank must be equipped with a pressure relief valve that is set to release at a pressure of 10 pounds per square inch.
What are the Installation Requirements?
In the United States, propane is regulated by the Department of Transportation (DOT) as a hazardous material. This means that there are strict rules and regulations surrounding the installation of underground propane tanks. Please read this page more information.
In order to install an underground propane tank, you must first obtain a permit from your local DOT office. Once you have obtained a permit, you must then have the tank inspected by a certified DOT inspector. The inspection will ensure that the tank is installed properly and meets all safety requirements.
What are the Costs?
The costs of an underground propane tank can vary depending on the size and type of tank. The sizes range between 250 gallons and 1,500 gallons. The most common type of underground propane tank is the 500 gallon tank.
These tanks can range in price from $1,500 to $3,500 depending on the size, capacity and company. Many companies offer financing options for these tanks, so be sure to ask about that when you are considering an underground propane tank. The installation of underground propane tank is more expensive than above ground.
In some companies, they offer free installation as long as you’re contracted with them for long duration.
Can I get a Tax Credit ?
Yes, you may be able to get a tax credit for an underground propane tank. The credit is available for both new and used tanks, and it can be worth up to $1,000 depending on the size of the house or building. There are some restrictions and requirements that you’ll need to meet in order to qualify, but if you do, the credit can help offset the cost of your tank. To learn more see this page.


Mike is an experienced propane technician with over 15 years of professional experience in the field. He has dedicated his career to helping customers with their propane needs, from installation to maintenance and repair. Together with Jeremy, he co-founded this website to provide useful information and guidance to customers seeking reliable propane services.