A propane supplier considers many factors to determine the cost to a customer. This could result in neighbors with the same size tanks getting different prices depending on a number of circumstances:

• How many gallons a year is the customer expected to use?
• Is the propane for needs (large uses, such as home heating, cooking appliances, water heater) or for decorative appliances (small uses, such as gas logs, gas lights)?
• Is the customer on a scheduled delivery plan or do they deliver only upon customer request?
• Does the customer own the house or rent it? (Yes, that makes a difference to some propane companies)
• What is the frequency of deliveries?
• Does the company or customer own the tank?
• Is the price quoted an “introductory offer” good only for a certain period that may go up later?
• Are there additional fees, such as a fuel surcharge, regulatory compliance fee, etc., or are they included in the price already?

Cost Considerations Conclusion: So, if you call a propane supplier and ask “How much to fill my 500 gallon propane tank?” expect them to answer your question with a number of questions. They are trying to determine their cost of the propane and service to you so they can answer your question and provide options to you. It is worthwhile to ask about any possible fees (regulatory compliance, HazMat, special delivery, fuel surcharge, out-of-gas charge, etc.) that may or may not be included in the cost so that you have no surprises later. 

Propane cost: The price per gallon, the number of gallons delivered, and the total (price per gallon times the number of gallons) must be listed for residential deliveries. The total cost must be shown for all deliveries.

Sales tax: Sales tax for delivered heating fuels is not included in the cost per gallon.  State law requires that be sales tax be added to the selling price. The state sales tax rate is 4.75% and the local sales tax rate is 2% or 2.25%, except for 2.5% in Mecklenburg County. This makes the total sales tax rate 6.75% to 7.25%, depending on the county,   The sales tax will probably be charged on the entire amount, including extra charges, listed below.

Charges: Many companies add on extra charges that they feel reflect their cost for doing business. Some companies include these charges in the propane cost per gallon. Others list them separately to keep the quoted price per gallon lower. These are often a flat fee per delivery.

"RC Charge" or "Reg. Com. Charge" is regulatory compliance charge.  It is a charge many propane companies add to the bill to reflect that it costs them something to comply with state and federal regulations.  It is not a tax.  It is a charge that the propane company keeps as a way to compensate them for their costs in complying with the rules. 

"T Fuel Charge" or "Fuel Surcharge" is similar.  It stands for transportation fuel charge and reflects the cost of fuel the propane company pays to operate their trucks.  This may vary month to month as fuel prices change.
There may be other charges, too. Some companies add a fee for delivering a hazardous material (HAZMAT). Ask your supplier about fees listed on the bill. You are entitled to know the entire cost for delivery, as required in the next paragraph. 

State law (NC G.S. § 81A-26, Sale from bulk) requires that deliveries “… shall be accompanied by a delivery ticket containing the following information:” (The items are paraphrased.)

• the name and address of the vendor
• the name of the purchaser
• the date delivered
• the quantity delivered (Printed by the printer on the delivery meter, 02 NCAC 38 .0702. In addition, this may be handwritten.) 
• the common name of the product (propane)
• the price per gallon (required only for residential deliveries)
• any charges associated with the delivery (regulatory compliance fee, HazMat fee, fuel surcharge, etc.)

You are entitled to receive a paper copy at time of delivery. You may elect to receive an email copy, but this must be agreed to by all parties.

When you are comparing propane costs, be sure to ask about fees for deliveries. If they call it a tax, then all companies must charge it and it is to be forwarded to the government agency responsible for collecting that tax.  If they call it a charge or fee, then it is an added price the company is collecting for themselves. NCDA&CS and, specifically, the LP-Gas inspection program do not require or collect any regulatory fees.

A larger delivery usually means a lower cost per gallon than a smaller delivery.  Each time the truck stops to make a delivery, there are certain fixed costs that must be covered. These include, but are not limited to:

• driving time
• tank inspection time
• hook-up and unhooking time
• completing the delivery ticket and giving it to the customer.

If these fixed costs must be covered by the price of a small delivery, the amount per gallon will probably be pushed higher.

See the answer for the previous question for some of the considerations. If your usage has declined significantly, you may need to discuss with your supplier whether or not you should get a smaller tank.  A smaller tank means the supplier has less capital invested at your site. Conversely, if your home is way out of the way or at the limit of the supplier’s delivery area, there may be benefits to having a larger tank that needs filling only once or twice a year, thus keeping delivery costs down. You should discuss the options with your supplier.

There are many possibilities.  You should discuss them with your supplier.  They include:

• A fixed rate plan might be a good option for you. If so, be sure you understand your obligations (such as, a minimum number of gallons purchased a year) and benefits (such as no price increase even if the general price soars).
• Take deliveries when it is convenient for the supplier rather than only when you want them.
• Find out if you can buy a tank and what the advantages (lower price per gallon) and disadvantages (responsible for its maintenance) are. One advantage is that you may shop around to different companies for the best price, but be sure there are not other prices or fees for a new company to inspect the tank before making a delivery.
• Certain upgrades to your house may help. Check on replacing your tank water heater with an on-demand water heater. Added insulation or weather stripping might help save energy and keep you more comfortable.

Propane suppliers, like most businesses, want to meet their customer’s expectations. When they know a customer’s usage and have a commitment (contract) from them, it helps them plan what propane they need to purchase.

State law prohibits one company from filling a tank belonging to another company. This is as it it should be. The company that has their tank at your house deserves a return on that investment, and their margin on the propane they sell you is a large part of that return. They may also charge rent on the tank if you do not buy a prescribed amount of propane each year. That is their privilege. You do not have the right to ask another company to fill that tank, no matter how much less they charge. You may shop around for the best price if you own the tank yourself, and that is the return you get for your investment of buying a tank.

You probably don't want this answer, but it depends... Most of the time in North Carolina, when a propane company sets a tank, they keep ownership of it. This is especially true for above ground tanks. Buried tanks become the property of the homeowner more often, but not always. If you are going to have a tank buried, ask your propane company what their policy is and what the advantages and disadvantages of tank ownership are.
If the propane company wants to keep the tank, they have that right. If they file a UCC-1 form with the county for a tank on the property, then they have clear documentation that they intend to keep ownership of that tank, even if the house sells and a disclosure statement does not point out that the tank is not included in that sale. The UCC-1 expires after a specified time period and must be renewed to remain in effect.
The propane company, as the supplier, is required to have their tank labeled with their company name so you and any subsequent house owners know who to contact for deliveries and service. Too often, they fail to meet this requirement, leaving the buyer unaware of the status of the tank. You can help them meet this requirement by letting them know if the label disappears or gets obscured. Also you, as a customer, are not permitted to remove or obscure that label.

There is a requirement to disclose what equipment is not included in the transfer of the property, especially those items that are attached to the house or property. A change in the law in 2012 added the following statement in the "Fixtures" section of the 2-T Realtor Offer to Purchase and Contract form:

   "NOTE: Seller and Buyer should confirm whether fuel tanks, antennas, satellite dishes and receivers, alarm systems, and other items listed above are leased or not owned by Seller and should be entered in the blank above."

This includes the propane tank. Already in that section was other wording about fixtures. A partial quote of that section is:

   "The following items, if any, are deemed fixtures and are included in the Purchase Price free of liens: ... fuel tank(s) whether attached or buried and including contents, if any, as of Settlement, ..."

There is also a requirement for a Disclosure Statement when a house is sold. The Real Estate Commission requires the following statement to be in the section that identifies the house's fuel sources:

   "If the fuel source is stored in a tank, identify if the tank is above ground or below ground, and whether the tank is leased by the seller or owned by the seller."

If you are unsure or if there is no mention of the status of the propane tank or its contents, ask the real estate agent to provide the required disclosure before closing day. These are not requirements that fall under our program and we have no authority to enforce them.

You should note that these statements put some burden on the buyer to make sure that they ask for confirmation of full disclosure. If the buyer makes it clear that they have made the effort to confirm the status of fixtures, and if the propane tank and its contents were not excluded, then they may have a legitimate claim of ownership should the question come up. However, do not consider this as legal advice. Work with your attorney and realtor to assure compliance with legal requirements during negotiations, settlement, and closing.

First, it is clear that this is a subject where we have no authority to determine the outcome or force the propane company to release records. It is a matter that must be resolved between the involved parties.

The best thing you can do is to find the receipt or bill of sale to show that you purchased it. There may not be a separate bill; it may be included on a bill for propane at the time it was installed. Another option might be to examine the bills for propane to see if there is any reference to your rate being based on owning the tank. If you find any type of rate classification, take it to the propane company and ask them to identify the characteristics of that rate and if it indicates if the tank is customer-owned or rented.

If you have a cancelled check or a credit card statement showing a large payment to the propane company at that time, it may be for purchasing the tank. Compare the check or statement to your propane bill to see if there is a correlation.

Have you ever paid tank rental to the propane company?  If not and if you have gone for a year without a delivery, it is a good indication that they do not consider the tank theirs.

There has been a lot of activity recently of propane companies being bought. Sometimes records of transactions prior to the sale may be missing or harder to find.  If you to press for them to find the records for installing your tank, they may find them. That should clear up any confusion.

Your problem is not a new problem. Former propane suppliers are sometimes slow to remove their tanks when the account is taken over by a new supplier. They are busy in the winter, so that could be a reason for their delay.

Our legal section has supported the actions shown in the following paragraph. However, there is nothing in the state laws that gives us authority to require a propane company to remove a tank not in use. New rules in the LP-Gas Code, 2017 edition, gave us authority to require that some unsafe situations be corrected, usually by picking up a disconnected tank.

We suggest that you send the former supplier a letter, preferably certified, detailing the circumstances.  List the times you have asked them to remove the tank, stating who you spoke with and the date, if you can. List any past written communication you have had with them about this. You may also state that they have until [a certain date], and we suggest that it be at least two calendar weeks, before you will consider the tank abandoned and dispose of it as you see fit. If they do not respond, do not remove the tank, or do not contact you requesting a different date, then you may contact your current supplier to explain that the former supplier failed to remove the tank and that they may have it if they will remove it.

Keep in mind that the former supplier may not appreciate this action and may take steps against you. Follow-up action is between you and the propane company.

The North Carolina General Assembly created the LP-Gas Law in 1955, adding it to the already existing Gasoline and Oil Inspection and Regulation Law.  A key provision in the law assigns responsibility to the Commissioner of Agriculture to administer the law, including performing inspections.  The text of the responsibility section follows:

§ 119-57.  Administration of Article; rules and regulations given force and effect of law.
It shall be the duty of the Commissioner to administer all the provisions of this Article and all the rules and regulations made and promulgated under this Article; to conduct inspections of liquefied petroleum gas containers and installations; to investigate for violations of this Article and the rules and regulations adopted pursuant to the provisions thereof, and to prosecute violations of this Article or of such rules and regulations adopted pursuant to the provisions thereof.

With this assignment, the General Assembly was recognizing that locations that store LP-Gas in a manner that does not conform to generally-accepted standards are presenting a hazard to their owners, to their neighbors, and to the general public.  Even when the tank is located far from public property, it has been demonstrated by accidents that injury and death can occur at surprising distances.

We do not charge a fee for performing an inspection. 

We inspect a sampling of tanks located at residences and at business so that we can monitor how well the propane companies are doing installations and how well they are maintained. Since most tanks belong to the supplying propane company, the results of inspections will be directed to the propane company. If the consumer owns the tank, the results of the inspection will be directed to the consumer.

Our inspections are mostly based on the Liquefied Petroleum Gas Code (LP-Gas Code).  This code is published by the National Fire Protection Association (NFPA), an internationally-recognized organization of experts at protecting people from the hazards of fire.  What’s important is that these codes and standards are developed by experts who are intimately familiar with the equipment, processes, and hazards.  The committee that writes the LP-Gas Code is made up of fire marshals and other enforcement officials, equipment manufacturers, LP-Gas industry members, insurance industry representatives, and consultants with special expertise on LP-Gas matters.  They meet regularly to determine if new rules are needed or if existing rules should be modified or discarded.  The ratio between types of members on the committee makes sure that the realities of the world are considered as they attempt to make the use of propane and other LP-Gases as safe as it can reasonably be made.

There are unique concerns for installing propane containers at the coast and in some mountain settings. Click here to be taken to a web page that describes how containers may be installed when dealing with tight property lines, elevated buildings, and similar situations. 

 If the inspector finds a problem, he generally allows it to be corrected while he is still there.  If corrections are not made before the inspector leaves, our next activity is to send an email or letter notifying the owner of the violation, stating when the corrective action should be completed. If the violation is found again during the second inspection, a warning letter will be sent, warning that the problems must be fixed within a specified time. If there are legitimate reasons that delay correcting the problem, we usually allow an extension of time.  It is only when the inspector returns after the specified time or after we are notified that all corrections have been made, and he finds that the same problems still exist, that we assess a civil penalty.  The amount of the penalty for each problem is based on the degree of harm that could occur if that problem goes uncorrected.

Inspectors do not determine if penalties will be assessed or how much they will be. The inspectors submit their reports and all penalty decisions are made in the Standards Division office. There are opportunities for negotiating penalties and for appealing decisions, all of which are detailed in the penalty letters.

If a penalty is assessed and paid, the money is not credited to our department or program.  It is paid to the school system in the county where the violation occurred.  We receive only a small processing fee.  Collecting fines is not the incentive that drives us, we would prefer that irems are corrected and the ocation is in compliance.  We are trying to make the LP-Gas industry and those they serve as safe as we can.

Generally, the owner of the tank is responsible. The owner may correct the problem themselves or they may contract for a propane company or licensed technician to make the correction. (The LP-Gas Law requires that those who service, repair, or adjust LP-Gas equipment must be licensed to do so, unless it is a customer correcting a tank they own.)

The Propane Education and Safety Council (PERC) has a fact sheet about aboveground customer-owned propane tanks. You are encouraged to see these if you own or are considering buying a tank to serve your property. Click on the links to see the video and the brochure. Please note that the brochure has a couple of minor errors:

• "ASME tanks must be installed at least 10 feet from a building or line of adjoining property." This is true if the tank is larger than 125 gallons water capacity (WC). Also, the wording is actually "... line of adjoining property that can be built upon." This recognizes that tanks may be placed closer to the property line if there is a setback requirement for buildings. Contact your zoning or planning office to determine setback requirements for your area.
• "An ASME tank will have a "clover leaf" marking on the nameplate. This used to be true, but new tanks do not necessarily have the clover leaf.
• "DOT requires periodic recertification of stationary cylinders ..." All DOT-specification cylinders must be requalified periodically. These are containers that do not have an attached nameplate.

 First, keep the tank in compliance with the requirements.

• Many times, tanks are installed at the minimum distances allowed. If you move the tank closer to a building or property line or if you add onto the house or add a building, you may be putting the tank into violation.
• Keep the equipment in good condition. Corrosion can cause a tank it become unsafe. It can also cause devices that must operate to malfunction. Keeping the tank painted is a significant way to extend the tank life.

Next, correct the problem(s) within the specified time or by the end of the extension time approved or get an (another) extension. Do not allow time to expire if you have not made corrections. If the inspector returns and finds the same violation, he will write it again, causing a warning to be sent or penalty to be assessed. Extensions will not be given the day the inspector returns for a reinspection.

If you are accessed a civil penalty, a reduction is possible once correction have been made. Contact the division director to discuss this situation

The LP-Gas Code usually is revised every three years. The code may be viewed, but not printed, at the National Fire Protection Association web site.  You will be directed to create a profile and log-in to see the codes. You may also purchase copies of the codes. There is no charge for reviewing the codes or for creating the profile.

Most requirements of the code are not retroactive. If the tank is in compliance when it is installed, it will remain in compliance even if the rules about its installation are changed. However, if it is moved or upgraded, then it may have to meet the new rules.

There are some rules that may have some effect of being retroactive. For instance, rules new in 2011 about protecting underground tanks from corrosion do not apply to tanks buried before 2011 unless testing shows that there is active corrosion. You can learn more about this requirement at by going to Corrosion Protection for Underground Propane Tanks.