A question has come up in my line of work as a distribution designer for a local electrical utility provider in that a diesel powered emergency generator with a 300 gallon capacity fuel tank is being installed next to our 150 KVA padmount transformer. I have been advised that the customer's emergency generator must be kept at least 20' from the location of our transformer because of the hazardous location clasification of the diesel fuel tank on the generator. In my line of work as a utility provider we are considered to be the "Authority Having Jurisdiction" and in such have the authority to make decisions above the enforcement of the electrical code but I cannot help feeling that possibly we are making an error in classifying this as a hazardous location and are there by creating an added exspense to the customer in having them move the generator to a new location. Are there any possibly reasons including primary voltages, that special precautions should be considered with this installation and that possibly the generator should be kept 20' from our transformer.