It really depends on your circumstances. Can vapors build up to ignition levels? Sure, if you've got a well sealed, small space, and you let it leak long enough...
Your average pole barn has enough volume and airflow that it would be virtually impossible for the vapors to build up enough to ignite or explode changing the average leaky fuel tank.
You'd really have to be trying hard to get any sort of fire, such as having the heater mere inches away from the leaky gas tank showering hot sparks.
The main risk is with the tank itself. Drained of liquid fuel it could feasibly contain an explosive air/fuel mixture, and a wayward spark falling in just the right place could ignite it. If you use the torpedo heater I would recommend shutting it off before you pull the sending unit out, and not turning it back on until after the tank has been tossed out on the scrap pile.
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Today's Featured Article - Harvestin Hay: The Early Years (Part 2) - by Pat Browning. The summer of 1950 was the start of a new era in farming for our family. I was thirteen, and Kathy (my oldest sister) was seven. At this age, I believed tractor farming was the only way, hot stuff -- and given a chance I probably would have used the tractor, Dad's first, a 1936 Model "A" John Deere, to go bring in the cows! And I think Dad was ready for some automation too. And so it was that we acquired a good, used J. I. Case, wire tie hay baler. In addition to a person to drive th
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