I've followed this thread since inception.
Reading the linked "Propane Tank" method made the hair on the back of my neck stand on end (DANGER!).
No matter what rinsing procedure you use and no matter how many times you rinse the (once containing gasoline) barrels, you are still at risk of enough fuel being present to achieve an explosive fuel/air ratio (
stoichiometric proportion). This is why you FILL the container with water. Minimizing the air volume minimizes the potential sources of fuel and volume of a potential explosive fuel/air mixture.
You could alternatively fill the barrel with a noble gas (like argon) to eliminate the source of oxygen however, water is more available, easier and cheaper.
I don't know how to place the dots any closer together for you.
I suspect that the drum head cutter that you show in the picture may not work because of the small drum diameter. The cutters that I'm familiar with are for 20 gallon (19.5" diameter) minimum drums. 16 gallon drums are 15" diameter.
If it were my task: I would fill the drum with water, grind (angle grinder + type 27 wheel) through the top rim of the bead (where the head is sealed to the drum cylinder) all the way around the drum. When I think I've finished grinding, the head is still "stuck" so, I drain a couple of gallons of water from the drum and I use a large ball peen hammer to beat the head into submission. The pounding has always identified areas where more grinding is required. I refill the drum with water when grinding. Ultimately, the head is removed, leaving a super sharp and dangerous barrel rim. I change the type 27 wheel for a flap disc and smooth all the sharp edges. I would not worry about disposing of the "contaminated" water. As a result of working around gasoline engines, I have washed clothes and rags that had more gasoline present than the drum. Swish some detergent in the water and dump it.
The process takes much longer than I'd like, is messy and tedious but the barrel won't explode. YMMV.