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Propane Dealers

Industry Code: 69300

Compulsory

Propane distributors or marketers deal exclusively with the product of propane and are primarily engaged in the wholesale bulk distribution and retail dispensing of this fuel to residential, commercial, industrial, agricultural and automotive users.

Operation Details:

These employers operate from distribution outlets which contain bulk storage facilities. The predominant activities are loading, delivery and unloading. Propane is stored in a liquid state and requires specially designed tanks and tanker trucks for storage and transportation purposes.

It is common for these employers to provide retail vehicle fueling services from the bulk distribution outlets. Employers will sell related propane products such as barbecues, appliances, auto conversion kits and replacement parts, etc. Dealers will install and service propane equipment and tanks and may complete auto conversions as part of an integrated propane service.

Underwriting Considerations:

Operations may include trucking directly from a natural gas plant or refinery to the customer. This is acceptable provided there is a purchase and resale of the propane and it is not custom hauling contract. Retail sales of propane for the purpose of fueling vehicles, when exclusive of bulk distribution operations, is classified in the appropriate gas bar or service station classification.

Premium Rate History:

Activities:

Gas, Propane - Sale and Distribution
Propane Gas - Sale and Distribution

Rate Group History:

A number of bulk distribution industries were consolidated under industry 60800 in 1992 following the oil and gas industry review. Propane distribution was added to this rate group in 1996. This rate group recognizes similar activities and equipment required in sale and distribution.

Propane distributors or marketers deal exclusively with the product of propane and are primarily engaged in the wholesale bulk distribution and retail dispensing of this fuel to residential, commercial, industrial, agricultural and automotive users.

Premium Rate History:

Activities:

Gas, Propane - Sale and Distribution
Propane Gas - Sale and Distribution

Operation Details:

These employers operate from distribution outlets which contain bulk storage facilities. The predominant activities are loading, delivery and unloading. Propane is stored in a liquid state and requires specially designed tanks and tanker trucks for storage and transportation purposes.

It is common for these employers to provide retail vehicle fueling services from the bulk distribution outlets. Employers will sell related propane products such as barbecues, appliances, auto conversion kits and replacement parts, etc. Dealers will install and service propane equipment and tanks and may complete auto conversions as part of an integrated propane service.

Underwriting Considerations:

Operations may include trucking directly from a natural gas plant or refinery to the customer. This is acceptable provided there is a purchase and resale of the propane and it is not custom hauling contract. Retail sales of propane for the purpose of fueling vehicles, when exclusive of bulk distribution operations, is classified in the appropriate gas bar or service station classification.

Rate Group History:

A number of bulk distribution industries were consolidated under industry 60800 in 1992 following the oil and gas industry review. Propane distribution was added to this rate group in 1996. This rate group recognizes similar activities and equipment required in sale and distribution.