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 - Grain Threshing in the Early 40's - by Jerry D. Coleman. How many of you can sit there and say that you have plowed with a mule? Well I would say not many, but maybe a few. This story is about the day my Grandfather Brown (true name) decided along with my parents to purchase a new Ford tractor. It wasn't really new except to us. The year was about 1967 and my father found a good used Ford 601 tractor to use on the farm instead of "Bob", our old mule. Now my grandfather had had this mule since the mid 40's and he was getting some age on him. S
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