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Mark 3 or 4 holes equally spaced around the perimeter of the circle not less than 7/16" from the edge of the circle. Center drill the marks. Drill through with the 7/8" step drill. If you are using a larger step drill be sure to stop at the 7/8" mark. Or be sure that the distance from the edge is no less than half of the diameter of the drill you are using.
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Now you can get the blade of the saw in the keg. Cut around the circle. Be sure to stay inside the line. Be sure the keg is secure when you cut it. It vibrates alot. I usually use a corner of my brickhouse to shove it into.Keep the blade cool with some cold water. All of this can be avoided if you have access to a plasma cutter. If not, start sawing.
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After the keg is cut and the guts have been extracted, you will grind it until it is round and smooth. I rest my hand against the inside of the top ring and use it to guide the grinder in a nice circular motion. Check the hole size with your lid periodically to insure a good fit. After this step some finish sanding will be needed.
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The kettle should now look like this. Yes, I said kettle. It's not a keg anymore. Use your hands to make sure there are no sharp edges you will cut yourself on later when your brewing. I recommend wearing gloves when you do this. Be careful.
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Now it's time to drill the 7/8" hole for the valve. Be sure it is high enough above the weld to accomodate whatever type fitting you will use. Drill it so that the hole is centered between the handles of the keg. Remove any burrs from around the hole.
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