Utah Department of Public Safety

State Fire Marshal - LP Gas Board Meeting Minutes

UTAH STATE LPG BOARD
June 22, 2012
Meeting Minutes
Awaiting Formal Approval

BOARD MEMBERS PRESENT

Tom Clark, LP Gas Board Member, Acting Chair
Paul Bedont, LP Gas Board Member
Tracy Halladay, LP Gas Board Member
C. Brandon Hone, LP Gas Board Member
M. Jay Iverson, LP Gas Board Member
Richard Martin, LP Gas Board Member

STAFF PRESENT
Brent Halladay, State Fire Marshal’s Office

Coy Porter, State Fire Marshal's Office

Boyd Cook, State Fire Marshal's Office

Janet Read, State Fire Marshal’s Office
Mat Sacco, State Fire Marshal’s Office
Lana Taylor, Assistant Attorney General

PRESENT

Corey Christensen, Propane Advantage

Glen Ellingford, Western Petroleum

Curt Gord, Thomas Petroleum
Rich Maughan, Freeway Propane

Chris Swensen, The Presidio Group
Craig Thain, Thomas Petroleum

Rob Wolfley, Garkane Propane
Joel Wyner, Safeguard Insurance

Item #1  The meeting was called to order at 10:00am in the Murray City Hall with Chairman Tom Clark presiding.  Chairman Clark welcomed everyone to the Board meeting. State Fire Marshal Halladay stated that Board Member Chief Jay Downs was unable to attend the meeting due to coverage problems at his department.

Before moving on, Chairman Clark welcomed new Board Member, Richard Martin to the Board and invited him to introduce himself. Mr. Martin stated that he was with Blue Flame in Santaquin. He and his wife purchased the company a little over a year ago. Born and raised in Jackson, WY in the HVAC and Propane business. Since children were raised, he decided to move down to a milder climate and purchased Blue Flame in Santaquin. He stated that he looks forward to serving on the Board.

 

Item #2 on the agenda was the approval of the minutes of the March 16, 2012 Board Meeting. Chairman Tom Clark asked the Board Members to read the minutes. They did and there were no additions or corrections. Board Member Chief Bedont made the motion to approve the minutes as written and C. Brandon Hone seconded the motion. All Board members voted in favor. The March 16, 2012 Board Meeting Minutes were approved as written.

Item #3 on the agenda was the presentation by State Fire Marshal Brent Halladay to Chairman Tom J. Clark of a plaque in recognition of his outstanding service over the past eight years on the Board. The plaque to commemorate Chief Jay Downs, Smithfield Fire Department, eight years service on the Board will be presented to him personally when Brent next meets with him.

 

Item #4 on the agenda was the presentation by Coy Porter of the proposed language changes to the current rule to conform to applicable insurance practices. Also slated, was a discussion of an increase in minimum general liability insurance to $1 million per occurrence/$2 million total. Chief Deputy Porter provided handouts for federal requirements with regard to liability insurance for companies involved in the transportation of propane.

 

Chief Dep. Porter presented the following changes:

  •  R710-6-3.2
    • The application for a license to engage in the business of LPG as required in 3.1 of these rules, shall be accompanied with proof of public general liability insurance.  The public general liability insurance shall be issued by a public liability insurance carrier showing coverage of at least $100,000 for each incident, and $300,000 in total coverage.  The licensee shall notify the SFM within thirty days after the public general liability insurance coverage required is not longer in effect for any reason.

He recommended Board vote in favor of the changes. Coy Porter also pointed out that there are two topics for consideration by the Board. One was the amount of liability insurance required by the State. He requested that the industry consult with their insurance carriers to make sure they are in compliance with federal requirements. Currently, the State requires $100,000/$300,000 and this lower amount was meant for the dispensers, not the distributers who are involved in transportation and subject to federal rules. The other was the change in the language of R710-6-3.2 from “public” to “general” liability insurance.

 

Discussion began with Chris Swenson, Presidio Group, who wanted clarity with regard to what was intended by “public liability”. There are two different purposes that could be covered – auto liability insurance for transportation and general liability to cover the company operations of dispensing propane. It was pointed out that concern had arisen that auto liability insurance was being used to cover company operations. More discussion ensued with regard to increased requirements to $1 million/$2 million and concern was expressed for the small businesses and HVAC contractors or plumbers as to their ability to afford the larger insurance policy. Joel Wyner pointed out that the premium on the larger policy would only incur a small increase, not a severe one. Board Member Martin was in favor of the increased coverage because of the exposure and wished to expand the language in the rule to specifically include the HVAC and plumbing contractors. Coy Porter pointed out that originally this subject arose over concern that auto insurance was being used for general liability of a company. He calls for the Board to review and establish a minimum for all involved in propane.

 

Chairman Clark requested the Board first consider approval of the language change and then direction to the State Fire Marshal’s Office to research national norms for insurance requirements and invite Industry comments. Chief Bedont moved that the language changes in R710-6-3.2 be approved as presented and that the Board direct the Fire Marshal’s Office to research what insurance minimums other states require and elicit Industry comments with regard to an increase to $1 million/$2 million.  Richard Martin seconded the motion. The Board voted unanimously to approve.

 

Item #5 was a request by Chief Deputy Porter to the Board to review the responsibility of the distributors to properly train the dispensers who were exempted by Senate Bill 140. State Fire Marshal Halladay began by stating that Senate Bill 140 defined and exempted the final consumer from certification by the State. A handout was provided to the Board of the proposed change to R710-6 to add 4.10.5, which provides a clarification in the Rule to be in agreement with UCA 53-7-308 to exempt the final consumer. He points out that Counsel has suggested that the Board define the term “transferred” in the Rule. After discussion, the Board felt there might be enough confusion in the Industry to warrant the addition of a definition to the Rule. Board Member Brandon Hone motioned that the Staff be directed to define “transfer” to be presented at the next Board Meeting. Tracy Halladay seconded the motion. All members voted “aye”.  SFM Halladay stated that, if approved, the definition would become R710-6-2.16 and UCA would be moved to 2.17.

 

Item #6 Chief Deputy Porter again informed the Board of the two Board Members who will have completed their two-term limit at the end of June:  Chairman Tom J. Clark, the Board at-large member, and Chief Jay D. Downs, a Board Fire Service member. Tracy Halladay will complete his first term on the same date and can be reappointed for a second term.

 

Item #7  The Board considered the recommendation of Tracy Halladay to be reappointed by the Governor for a second term. Chief Downs so motioned. Brandon Home seconded the motion. All voted in favor. Tracy Halladay’s name will be presented to the Governor for reappointment to a second term.

 

Item #8  Explanation of nomination process. A letter was sent out to the Industry to nominate an LP Gas member to replace Chairman Tom Clark. Three qualified nominations were received and instructions sent to each to complete an online application to the Governor’s Office. The Governor then will make his selection. A sheet was handed out to the Board with the nominations for the LP Gas member and as well as nominations of the fire service members to replace Jay Downs.

 

SFM Halladay then asked that the Board return to Item #5 to review whether or not the Board wishes to have a standard for training of the final user by the propane distributor as stated in Senate Bill 140. The Board discussed the options and the use of a video and test available for free from propanesafety.com, which was highly recommended for training by both Board and audience members. Chief Deputy Porter pointed out that the final user was difficult to track, which is why training by the distributor is so important. Also, the importance of documentation of the training was pointed out. Chairman Clark finally concluded that there was no need for the Board to require a specific training standard as it was already required in NFPA Standard 58. The website for propanesafety.com will be posted on the State Fire Marshal website for future reference by the Industry. Deputy Boyd Cook then stressed to the Industry that they submit plans for all installations from wet legs to large installations to the changeover of equipment by a new supplier to insure that they were up to the current code.

 

Item #9 Old Business  Brent told the Board that a letter that outlined the changes in the 2011 Edition of NFPA 1192 with regard to RVs was sent out to the RV technicians and concerns. Comment was solicited but none was received.  Tracy Halladay motioned that the 2011 Edition of NFPA 1192 be adopted by the Board as an incorporated reference in the Rules. Rich Martin seconded the motion. All voted in favor. Brent told the Board that the revision would be sent to Administrative Rules and take effect in approximately two months.

 

Item #10 New Business  Rich Maugham of Freeway Propane got up to request that the probation the Board imposed upon Freeway Propane as a result of an accident be officially lifted. SFM Halladay confirmed that Freeway Propane had followed the terms of their probation and that he would send a letter to Freeway Propane to officially remove the probation.

 

Item #11  The date for the next LP Gas Board meeting was set for September 28th. SFM Halladay pointed out that until the new appointments to the Board were made by the Governor, all current members were to attend. Chairman Clark adjourned the meeting.

 

NOTE:  SUBSEQUENT TO THE CLOSE OF THE MEETING, A CONFLICT WITH THE ROCKY MOUNTAIN PROPANE GAS ASSOCIATION FALL CONFERENCE WAS POINTED OUT. THE NEXT BOARD MEETING WAS RESCHEDULED FOR FRIDAY, OCTOBER 12TH.

[Last Update - Friday, 08-Mar-2013 16:27:01 MST]