Cylinder Ownership, Leases and Rentals

What it is

• Customer-owned cylinders (COC): the customer bought the cylinder. The supplier refills it for a fill charge. The owner is responsible for keeping it within its requalification date and in good condition.
• Rented cylinders: owned by the supplier. The customer pays rent (often called demurrage) for each day or month the cylinder is in their possession, plus the gas.
• Leased cylinders: the customer pays up front for a long-term lease of a supplier-owned cylinder, usually for a set number of years. Gas is billed per fill.
• Exchange programs: the customer swaps an empty cylinder for a full one of the same size and gas. The cylinder handed back may not be the same one that was brought in.

How to identify

• Check the cylinder's neck ring, collar or stamping for the owner's name.
• Check the supplier's account records and rental or lease agreements.
• Check the requalification (retest) marks stamped on the shoulder. A cylinder past its due date cannot be refilled until it is requalified.

Ownership comparison

Key points

• Many suppliers will not fill another company's cylinder, or will only fill customer-owned cylinders that are in date and in good condition.
• A customer may be charged rent for cylinders they forgot they had. Count cylinders on site and reconcile with the monthly rental statement.
• Lost or damaged rented cylinders are billed at a replacement charge in the agreement.
• Requalification intervals depend on the cylinder specification and are set by DOT in 49 CFR 180.209.
• Return empties promptly to stop rent.
• Keep cylinders upright, chained and capped whatever the ownership. See Compressed Gas Cylinder Storage and Handling.

Common mistakes

• Buying cylinders to "save rent" without counting the cost of retests and repairs.
• Holding idle rented cylinders for months.
• Bringing an out-of-date customer-owned cylinder for a fill.
• Mixing ownership tags so cylinders are returned to the wrong supplier.

Governing standards: 49 CFR 180.205 and 180.209 (cylinder requalification); CGA C-1 and CGA C-6 (cylinder testing and inspection); the gas supplier's rental and lease agreement.

Reference only. Verify against the current governing code or standard, the manufacturer's data and the project documents before use. Apps for Distributors disclaims liability arising from reliance on this reference.