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Underground propane tank/Foreclosed property in NJ

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angelmama

Member
What is the name of your state (only U.S. law)? NJ

We recently purchased an 8 year old home in a rural area of NJ, where everyone has septic tanks, wells, and underground propane tanks. It was a foreclosure purchased from Fannie Mae in July of this year. In order to get our occupancy permit we were required to have the propane turned connected. I contacted the propane company listed on the tank (sticker) but they had gone out of business, however their number routed to another company who stated that they bought out the other company. They told me that in order to hook the tank up I would have to pay for the gas currently in the tank. They reported that the previous owner had "cashed out" the propane left in the tank. They charged me 6$ a gallon. Having no other choice, and no time to ask for proof, etc we paid the $$ and it was hooked up. I later found out that my neighbor directly next door uses the same company on a "will call" basis and a week later got a delivery of propane for less than 4$ a gallon.

Since that time I've asked them for proof of tank ownership. They provided me with nothing except an invoice for propane tank installation from the builder, that appears to be purposefully copied badly and is difficult to read. I asked them to sell me the tank. They refuse. They state that if we want the tank removed we'll have to pay a minimum of 500 but "probably more." They won't provide anything in writing. I know for a fact that they're charging me at least 2$ more per gallon than any other company, and still want to charge me 6$ a gallon.

Meanwhile the company was recently sold to yet another propane company.

They claim that the burden of proof of ownership is on us, and that they own it unless we can "prove otherwise." I never entered into an agreement with any company, my bill of sale says absoltuely nothing about the presence of an underground tank/ownership of it...absolutely nothing is addressed.

I cant find anything regarding consumer protections for NJ propane customers.

Is it true that these people can charge me whatever they want for propane, and/or charge me astronomical fees to remove a tank without proving that they even own it?
 


FarmerJ

Senior Member
Id say that as long as you do not have a signed contract with them , its time to shop around and find another company who will install a new tank above ground ( you may be able to save some money by lifting part of the line out of the ground your self) wether you rent tank or buy one ( I dont know if you should have the propane thats in the one tank transfered to new tank or not ) You are free to tell the company that owns the gas and claims they own the tank that you do not have any contract with them and they are free to remove the tank ( since you bought the home there is no way they can impose a contract on you out of thin air they cannot make you pay them to remove the tank unless you have signed agreement with them , if they wont remove it your still free to arrange for new services w a new tank owned or rented ( customer owned is cheaper per gallon rate though) Most propane deliverys are based on tank size too so if you do a customer owned or a replacement tank make sure its a 500 gallon or larger where I live to get lowest price one must order 200 gallon min.
 

xylene

Senior Member
I'm phrasing my answer as a meme.

What if I told you -

500 dollars to remove an underground tank is chump change.
 

FarmerJ

Senior Member
re reading this instead of when ive just woke OK i see you said you paid for the gas in the one tank so if you change companies you really are better off with customer owned tank and just buying one even if its from someone else , my customer owned tank averages a saving of 20 to 24 cents a gallon This home consumes about 750 gallons of propane a year. As far as paying them to take the tank out, what agreement have you signed that makes you obligated to pay for its removal? if you have not signed one , your still free to gently lift the gas line out of the ground , buy another tank or rent someone elses and buy your propane else where including having the propane you paid for pumped over to the other tank. ( theres one other dealer that i can buy from also that is even cheaper yet but I would have to have 350 gallon min delivery COD. instead of my normal 200 gal cod. AND no you will not find much in the line of consumer protections when your dealing with propane or oil delivery firms. like Most of my states cold weather disconection rules are pointless for propane customers but for the Elect and Metered gas customers its a life saver in winter.
 

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