David, does water condensation develop in propane tanks?  Ours has set for 10 years and before I refill it I was wondering it there is something that shold be done with it?

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Condensation is an issue when you purge new tanks. Thats why you purge with LP vapor not liquid. The change of state from liquid to vapor will chill any water vapor in the tank and it will remain. All LP added should be moisture free and water should not be a concern. If it sat with a valve open or no valve, I would just purge with vapor before I filled from a dispenser. Over time, oil tends to collect in the tank. Usually not a problem as long as you dont overfill, then it will flow into the regulator and beyond. Some oil collects inthe reg and hose from the reg to the manifold. I would pull one end of the hose, drop it to the ground and see if I get any oil. It will pool inthe line and cause the LP to bubble through which will wreck havoc with pilots. Big outfits dont want to hassle with the expense of getting the oil out of their systems and they regularly overfill for brief periods. That means the oil just get kicked down the line to your tank and appliances. Lp is a refined product and oil is a part of that. Is your answer somewhere in there?? Hehe

OK, if I understand you correctly, I do not have to worry about condensation due to temperature fulctuations like one does with a gasoline tank.  Correct?

Yes...I've never read about any concerns in this issue and find it hard to see how moisture might get introduced to the system. thank you posting in this fashion. I like it where folks can search and find a topic like this and I dont have to repeat myself. I get a little wordy and tire easily of listening to myself...hehe

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