3 year old fuel bill

david_21

I purchased my home over 3 years ago. It came with a 500 gallon propane tank (buried). The closing documents reference nothing regarding the tank. My belief at closing was that I owned the tank. It was not marked in any way, nor was there any documentation inside the house or on the H20 heater...etc.

I was recently sent a bill in excess of $500 (from a local propane supplier) for propane that was supposedly in the tank at the time of closing. The supplier is claiming that they own the tank and has provided a document that shows that they have a right of way to it. My title docuements and title insurance have no reference to that.

I don't disagree that there was some propane in the tank at closing. However, how much exactly was there, who would know since there was no documentation of it at that time.

My belief at that time was that the propane in the tank transferred ownership from the previous owner to me, the new owner. Is my perspective flawed in some way, or am I missing something here?

The propane company knew my address... because if what they are claiming is true, theirr tank is buried at that location. The supplier, however, made no effort to contact me over the last 3 years.

If they do indeed own the tank & I were to offer to buy the tank, any ideas what a fair offer may be? It is approximately 10 years old.

Any thoughts or advise about how to respond to them?

Many thanks for your time and thoughts.

Perplexed.

Phil_6

ha ha, that's a good one

I think that letter goes in the garbage. I don't think your prospective is flawed at all. I'm suprised the seller didn't get paid by you for the propane at the closing like they do with oil. His lawyer was slacking.

Gary Fereday

HUH?

What have you been useing for fuel for 3 years? If it is porpane, where have you obtained it from? And where did they place it. A burried 10 year old tank in my estimation is exactly worthless, as it could become a bomb at any moment. If it still theirs I'd demand they get it! NOW pronto! Have the "owners" been filling it and sending you the bill? You really need some expertise on this thing. as I see a liability for you if it leaks, Propane leaks are a explosive burn hazzard!
Have fun with this, perhaps it is Lawyer time!

DonNH

For what it's worth . . .
When we bought our house last year, the propane co. came and filled up the tank, charged us for a full tank, and credited the previous owners for what had been in the tank before they filled it. That appears to be how this co. routinely handles it (Eastern Propane, southern NH).

Might be interesting to see if this is standard practice everywhere.

I'm pretty sure that our tank belongs to the propane co., though they don't specifically charge us a rental. For low usage customers I believe they do. Also, I've heard that in the last year or two the cost of tanks (steel prices) has risen dramatically, so they may be taking a harder line on asserting their ownership.
If they're trying to charge you for the propane that was in the tank, you might want some verification that either they've credited the previous owners or that they hadn't paid for it. Might be that they've been trying to collect from the previous owners to no avail, and are now trying to get it from you.
Are they charging current prices, or the price in effect when you moved in?


Don

jerry scharf_3

what is the deal??

Have you purchased fuel from said fuel company? Have you used the tank to store fuel supplied by another fuel company? Did you use a title insurance company when buying the house?

If the first one is yes, then you have a contract and they are in the driver's seat. Have them provide the exact part of the service agreement that describes how this fee is determined and assessed. If there's ink, you pay the bill, grumble and move on.

If the first two are no and the third one is yes, then you are on very good ground. I would contact the title insurance company. Explain to them that you are not going to pay the bill and that they will have to deal with any liens that are put on the house and any attempts to impact your credit rating will be referred to them for repair and compensation. It was their job to find or be liable for any encumbrances on the house not disclosed.

If the first is no and the second two are yes, then I would try the same route. Just understand that since you have used the tank, the ground is not quite so solid.

Once the air starts to buzz, then you offer to let them take the tank off the site for free, or you will just keep the tank. If you are using the tank, then you need to deal with yor new supplier to pump the tank out and install one of their tanks instead. That might persuade the new provider to work a deal with the old provider to save them the bother.

One last thing. The provider wanting to charge you may try to muck up your credit rating. Keep a watch on these and get a notarized document from the title company saying that the refusal is justified. Then send in the document to the credit reporting agencies to dispute the clain and file a small claims case for the costs you incurred for their attempt to do this. They will either no show or lose, and you then get to put the collections shoe on the other foot. It's some work, but it's sweet revenge.

jerry

George Brown

Ditto to Bigugh! Also, I would alert your title insurance company because if the tank is the propane suppliers they may put a lien on your property. The seller may be liable for not disclosing information about the tank. I would have the supplier remove the tank ASAP and start over with someone else.