Risk management for liquefied petroleum gas (LP) dealers is unique due to the volatile nature of the product and current litigation trends. The following recommended best business practices should be incorporated into all LP dealers' operations.*
Hiring the right employees and providing them with proper training is a key step in safeguarding your operations. Keep the following best practices in mind when developing company policies and procedures:
All employees need to perform frequent safety checks before providing a customer with fuel. It should be standard practice to document all interactions with customers.
Below are review and check guidelines that all employees should be following:
Propane dealers are considered professionals in the propane industry and have a duty to warn the customer if a system is not fit for service. When a system is found not fit for service, the following actions should be taken:
1. Place red tag on the main fuel valve listing the reason(s) the system should not be in service.
2. Give a copy of the red tag to the customer. A copy should also be retained by the dealer.
3. Correct all substandard conditions before the system is placed back into service.
4. Give customers materials that warn them of the hazards of propane and document the interaction.
All employees who may take a call from a customer that is "out-of-gas" must be trained in the proper handling procedures. When a customer is out-of gas, this may indicate the fuel system has a failure. In all cases, determine the reason a customer is out of gas and complete a leak check before any refueling of the system occurs.
If the customer is not at home, place an out-of-gas notice on the tank supply valve and at the house entrance. This out-of-gas notice must be completed in addition to any note made on the sales slip. The dealer should also retain a copy of this notice.
Additionally, pilot lights should always be reignited by LP suppliers.
Bulk storage containers must contain all safety features required by the LP Gas Code, NFPA 58®, including:
Department of Transportation (DOT) guidelines must be followed for all vehicles and drivers, in addition to the following guidelines:
Cylinders must be requalified according to industry standards, which includes the following guidelines:
Locations that pump liquid propane for forklift cylinders or 20-pound cylinders should properly train all personnel involved in the liquid transfer and be equipped with the proper pumping equipment. Locations that do not have trained personnel or adequate pumping equipment should not be provided with LP fuel.
Propane dealers are responsible for adequately informing their customers about the proper use and storage of propane, as well as how to detect warning signs of a gas leak. Documentation of Duty to Warn mailings to all customers on an annual basis is required. The material in the mailing must contain:
Important information on steps to take if you smell gas, odor fade, propane gas detectors, carbon monoxide safety, lighting of pilot lights, and general appliance maintenance and safety tips. A scratch-and-sniff test must be included.
Contact information for customer to notify the supplier if the customer moves, changes gas appliance or make any form of alteration to the propane system.
*These guidelines are not to be considered all-inclusive. Additional industry guidelines from the National Propane Gas Association, National Fire Protection Association, regulatory codes and governmental sources should also be incorporated into operations.