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Utah Department of Public Safety

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LPGas: Liability Insurance, Fire Safety Analysis, Internal Valves, & 2009 NFPA 54

M E M O R A N D U M

TO:   LP Gas Distributors

FROM:   Brent R. Halladay, Chief Deputy State Fire Marshal

DATE:   February 9, 2009

SUBJECT:   Liability Insurance & NFPA 54 - 2009 Edition

As directed by the Utah Liquefied Petroleum Gas Board, I am sending this memorandum to inform and receive input from the LP Gas industry on several items of interest.  The Board will be convening at the next LP Gas Board meeting on March 6, 2009 at 10 AM at the Murray City Hall, Council Chambers, 5025 South State Street, Murray, Utah.  The Board wishes to receive input from the LP Gas Industry on the following:

  1. The LP Gas Board is continuing to take input on the requirement that each application for a license would require proof of public liability insurance.  The requirement would be for at least $100,000 for each incident and $300,000 for total coverage.  The Board has informed you as LP Gas Distributors of this proposed requirement and has at the last two Board meetings taken input from the Distributors.  The Board has directed staff that all dispensers and HVAC contractors be notified of this proposal since it will also affect their license.  If you have leases for dispensing systems you will probably receive questions on this requirement and the coverage if any you would provide for your leased dispensing system and container.
  2. The Board has also directed staff to evaluate the Fire Safety Analysis required in NFPA 58, Section 6.25.3.2, 2008 edition, and see if the product generated from this analysis is of value to the fire service or authority having jurisdiction (AHJ).  The Board has also directed staff to make inquires of the fire service and get the feelings of the fire service and their evaluation of this product.  Please let us know or come testify to the Board if you have completed your Fire Safety Analysis and the reception you received from the fire service upon presentation to them.
  3. By July 1, 2011, ASME containers over 4000 gallons water capacity shall have all liquid withdrawal openings in existing installations equipped with either an internal valve that is fitted for remote closure and automatic shutoff using thermal fire actuation or have an emergency shutoff valve that is installed in the line downstream as close as practical to a positive shutoff valve in combination with an excess-flow valve installed in the container.  The State Fire Marshal Deputies involved in the LP Gas inspections have noted that the progress in completing this has been very slow and delays are very common.  The Board and staff understands this is a very costly update that is required for safety, and encourages the LP Gas industry to start planning and implementating this upgrade for existing containers.  Waiting to the last minute to complete this upgrade would cause some containers to be red tagged after the required date of completion.
  4. The Board will also be evaluating the changes proposed in the 2009 edition of NFPA 54 at the next Board meeting.  It is proposed that the currently used 2006 edition of NFPA 54 be upgraded to the 2009 edition.  The Board invites all who have an interest in this document to be in attendance at the Board meeting for the evaluation.

If you cannot be in attendance at the Board Meeting please contact Chief Deputy Brent R. Halladay, Office of the State Fire Marshal, 5272 South College Drive, Suite 302, Murray, Utah 84123.  You can also call me at 801-284-6350 (Office) or 801-232-2398 (Cell).  I will present your concerns or letter to the Board in your behalf.  Thanks so much.