No problem as long as there are no hiccups along the way.

For my other companies this wasn't a problem as one of my partners is located in the state that has the subordinate LLC. 

A contractor who does not want to have such paperwork, or infers that a permit is not needed, can be a serious problem. A

Ran into this problem a year ago when closing a deal.

Thankfully not directly my problem as the home owner is my tenant and therefor the one I evict.

The last time we came across this problem a few months ago, I spent a lot of time on the phone with Columbia Gas representatives, and with PUCO (Public Utilities Commission), who first told me they could "help with my situation", then later that "there's nothing they can do".

Shaun,I run into this problem a lot with clients when we need them to form a LLC for the subject property on hard money loans.  

Make sure the holes are drilled past the bottom of the tank (approx. 5' below grade, but check w/ your consultants on the recommended depth).All the while, use this problem as a negotiating point with the Owner.

Let's go back to that.You are selling a solution to the seller's problem.  A

@Patrick Reagan I grappled with this problem a while ago (there is thread on my particular situation somewhere on this forum).