posted 4 years ago
The unprotected steel will rust. If you're using it for wash water in a shop, maybe that's not an issue. If you're piping it into a pressure system for a residence, it will stain sinks, clothing, you name it.
There won't be any residual contamination from the propane, although there may be a few drops of oil. Dish soap and warm water will cure that.
Theoretically, after using the tank for a while, the interior could be treated with a rust converter like phosophoric acid. The sheen of rust would be converted to a different form of iron oxide that is more stable. I haven't done this, so I don't know if it would work inside a tank.