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 - The Day Mom Drove the 8N - by Brian Browning. My Dad was wanting to put in a garden but couldn't operate the 8N and handle the old horse drawn plow he had found and rigged up to use with the tractor. Well, he decided to go get Mom out of the house and have her drive the tractor while he walked behind the plow. You got to understand that while my Mom is a hard worker who will always help whenever she can... she had never operated farm machinery before that day. Dad got her out there, explained how the clutch was the same as in our o
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