Tank Agreement - LP Gas Agreement

LP Gas Agreement

The following terms and conditions apply:

1. EQUIPMENT: Company will install and maintain equipment at Customer’s property. The propane tank(s) and equipment listed below will remain property of Company and will not become part of the real property where it is installed.

2. CUSTOMER RESPONSIBILITY (EQUIPMENT): Customer agrees to notify Company prior to any modifications being made to the residence or building that may affect Company’s equipment, delivery, or serviceability. Customer shall not make nor authorize any third party to make any modifications to the residence or building where the tank is located that could result in the tank location becoming out of compliance with the Dept. of Agriculture and/or local governing authority codes. Customer will be liable for any damages resulting from such action including but not limited to Company’s cost to re-install or re-locate the tank so that all code requirements are met. Company has the right to suspend deliveries until the equipment meets all code requirements or remove its equipment if Customer refuses to comply.

3. MAINTENANCE: Company will have the right at all reasonable times to enter Customer’s property to install, repair, service, remove, move, disconnect, or inspect the tank(s) and equipment furnished by Company. Customer shall not attempt to install, repair, service, remove, move, disconnect, or in any manner tamper with any and all equipment provided by Company.

4. DELIVERY: Company will have the right at all reasonable times to enter Customer’s property to deliver propane. For reasons including but not limited to changes in customer usage, appliance changes in the home, system changes, actions of suppliers, acts of God, and/ or weather conditions, Company does not and cannot guarantee that Customer’s tank(s) will never run empty regardless of Customer delivery type (will call or autofill.) While Company will make every reasonable effort to deliver propane to Customer, Company will not be responsible for any damages resulting from tank being out of propane. Customer should periodically check the tank gauge percentage and notify company if level is low.

5. SAFETY: Customer agrees to operate equipment in a safe and lawful manner. Company will not be liable for any damages or injuries incurred due to negligence or misuse by Customer or any third party. By signing below Customer acknowledges receipt and understanding of the propane safety information provided.

6. DAMAGES/SERVICE INTERRUPTION: Company is not liable for damages or injuries resulting from acts of God or any other circumstances beyond Company’s control including, but not limited to, flooding, hurricanes, tornadoes, lightning, wind, and heavy snow or ice. In the event of inclement weather, Company will make every effort to deliver to Customer; however, Company may suspend delivery if roads or weather conditions place employee(s) or property at risk.

7. SERVICEABILITY: Customer acknowledges that a safe driveway or delivery area is available. Company is not responsible for damages resulting from improper foundations or from normal wear and tear related to weather and/or age of driveway or entrance area.  Customer further agrees to keep driveway clear and passable from debris, snow, ice, or other impairments. Delivery service may be suspended if driveway is not passable.  

8. ASSIGNMENT: Customer agrees to notify Company in the event the property is sold. This agreement will terminate upon the sale of the property and cannot be assigned or assumed by the new property owner. If the property is sold, the propane in the tank remains the property of Company and cannot be conveyed to Buyer if Seller has not paid for the propane in tank.

9. PAYMENT TERMS: Company agrees to provide propane service to Customer as long as Customer pays account in accordance with company terms.  Payments are due in full within thirty (30) days of the invoice date for customers with approved credit.  Finance charges will be assessed at a rate of 1.5% per month on any past due balance.  Any and all other payment arrangements must be approved by Company.  Customer shall be liable for all charges related to returned checks or bank drafts as provided in G.S. 6-21-3 and G.S. 25-3-506. Customer shall additionally be liable for any fees or charges incurred from a collection agency and/or reasonable attorney’s fees and court costs in the event debt collection is required. Company reserves the right to remove equipment, adjust or disconnect its equipment, and/ or suspend delivery upon Customer’s failure to comply with payment terms. Company agrees to notify Customer prior to removing equipment.

10. CANCELLATION: This agreement will remain in effect for one (1) year and continue thereafter unless terminated by either party by giving ten (10) days notice.  If customer requests termination, Customer agrees to pay Company’s costs to remove its equipment (see Item 12 - TANK REMOVAL).

11. TANK LEASE/USAGE REQUIREMENT: Company has provided tank(s) for the purpose of delivering propane to Customer. A 100 gallon capacity tank will be assessed a tank rental (plus tax) that is billed annually regardless of propane gallons used annually.   If minimal or no propane has been delivered within a twelve month period, Company reserves the right to implement fees and/or delivery or rental charges on tanks with a 200 gallon or greater tank capacity.

12. TANK REMOVAL: If tank(s) need to be removed for any reason including but not limited to non-payment or if Customer no longer uses propane, Company has the right to remove the tank(s) and any other Company owned equipment from the property. Customer agrees to pay Company’s costs to remove its equipment. Customer also agrees to pay a re-stocking fee per gallon of an amount set by Company if more than 5% remains in tank when it is removed from the property. These amounts would be deducted prior to Customer receiving reimbursement for any credit balance remaining on account. Note: for UNDERGROUND TANK(S) – In addition to Customer being responsible for the cost of tank removal, Customer will also be responsible for any and all reparations to the yard or landscaping.

13. PROGRAMS AND FEES: Company reserves the right to make changes, add, and/ or discontinue any and all existing programs, plans, services, charges, or fees at its discretion without prior notice.

Important Propane Safety Information