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If you can clean the inside of the propane tanks to where it doesn't even make a sheen if water is sprayed over those surfaces then they are permittable, at least in Alabama they would be. Any tanks that held substances that can leech back into the enviroment have to be cleaned and inspected. Also round tanks after cleaning have to be made so as to not roll in the event of a storm {put legs or pipes sticking out so as to stop rolling}. Sounds like to me the person trying to permit them was not aware of the reef protocol.

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