Natural gas is a clear, odorless gas used for cooking and heating as an alternative to electricity. A natural gas utility is the entity that controls the flow of natural gas through the pipelines to supply product directly to the consumer. A natural gas retailer is a business that carries the product via truck to small storage tanks located on a customer's property. Natural gas is a hazardous material, and the tanks and pipes designed to hold natural gas require highly trained professionals for installation, maintenance and repair. You can become a natural gas retailer by learning the laws and safety procedures involved in keeping and transporting this volatile material and by setting up and maintaining a safe storage area.
Find a piece of property for your business. Natural gas is listed as a hazardous by federal, state and local governments. The regulating agency at each level of government has its own regulations concerning the property where a natural gas retailer may do business. Consult your attorney to learn the statutes that apply to your locale.
Pay a licensed natural gas contractor to install the tanks, electronics and other hardware you need to conduct business safely. Attend every training course offered by the contractor as well as those offered by the manufacturers of the products installed on your property. Take the supervisors who work for you to the training classes so that someone who is properly qualified will be on site at all times during business hours.
Purchase and maintain at least one truck that is capable of safely hauling natural gas. Register each truck with the Department of Transportation and submit to its regulations concerning upkeep and operation of a vehicle hauling hazardous materials.
Pay your attorney to draft a standard service contract. Supply a copy of this contract to your state's regulatory agency. Do not use your contract until it is approved by the state.
Send the approval letter from the state regulatory agency, along with a complete financial statement, to the utility company where you will do business. Each utility has different qualifications for proving a company's creditworthiness. Fill out the paperwork required by the utility that will oversee your business.
Report any changes in your corporation to the state regulatory agency immediately. This includes, but is not limited to, the name or location of your company as well as the name of your contact personnel.
- Always respond immediately to any correspondence from your state's regulatory agency and the utility supervising your operations. Any lapse in response time may result in loss of your license and civil fines.
- Natural gas is a hazardous material. Always handle the equipment with care, keep smokers and open flame away from your place of business, attend every safety course offered by contractors, manufacturers and the government and stay in touch with your attorney so that you remain compliant with current laws.
- Always have an attorney draft, or at least review, every contract you intend to use during the course of doing business. One erroneous phrase in a contract makes the entire document null and void and leaves you open to the loss of your business, civil fines and possible criminal prosecution.
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