I know what you are thinking, why build this when you can buy a refill adapter ready made for your tank. I used to use one, but you can only fill your bottles about 2/3rds full. This method allows you to completely fill a bottle. much the same way as they were originally filled in the factory. and with the quarter turn valve, the refill process is quick and easy.
Disclaimer: this is the way I refill cylinders. I do not claim to be an expert, and I take no liability for mistakes you make. BE SURE TO DO THIS OUTSIDE preferably with a bit of a breeze and no near, flames, sparks, cinders, etc. Propane is highly flammable and this can be dangerous if you don't use common sense. If you blow yourself up, don't blame me!
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My local gas dealer will always check the hydrostatic test date on my 20# grill tank before refilling, and if there's any question, they will not refill the tank. They're the experts so I respect their professional opinion. I go and swap the tank out for a new one at my local orange or blue mega-store.
Pressurized, flammable gas is nothing to fool around with, and any time one refills a container under pressure without a way to measure the resulting pressure of the container, especially in reference to its maximum safe internal pressure, could create a massive safety hazard.
Yes, perform this at your own risk, but understand that the larger tank could impart a significant amount of pressure on the smaller one, beyond its capacity. This could create a timebomb in a 1-lb propane canister.
I don't recall... Just Eyeball it... It needs to be slightly larger than the pin sticking up. Some valve stem tools might not even need to be bored. What is important is that the slotted portion of the tool can reach the threaded screw.