LP-Gas, CNG & LNG Company License FAQs

Any business that engages in LPG, CNG or LNG activities in Texas must be licensed.   These activities include selling, transporting, dispensing or storing LPG, CNG or LNG and manufacturing, installing, servicing or repairing LPG, CNG or LNG containers, systems and appliances. Some exceptions apply: For LPG, see Tex. Nat. Res. Code §113.081. For CNG and LNG, see Tex. Nat. Res. Code §116.031.

Application forms:

LPG Form 1
CNG Form 1001
LNG Form 2001

License categories are based on the LPG/CNG/LNG activities your company is engaged in. 

LPG – https://texreg.sos.state.tx.us/public/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=16&pt=1&ch=9&rl=6

CNG – https://texreg.sos.state.tx.us/public/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=16&pt=1&ch=13&rl=61

LNG – https://texreg.sos.state.tx.us/public/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=16&pt=1&ch=14&rl=2013

An LPG company representative is the individual designated to the Commission by a license applicant or licensee as the principal individual in authority and, in the case of a licensee other than an LPG Category P licensee, who actively supervises the conduct of the licensee’s LPG activities.

A CNG or LNG company representative is an owner or employee of a licensee designated by that licensee to take any required examinations and to actively supervise the licensee’s CNG or LNG operations.

Please use the checklist for the fuel type you are applying for:

LPG – https://www.rrc.texas.gov/alternative-fuels/liquefied-petroleum-gas-propane/certification-and-company-licensing/licenses/license-checklist/

CNG – https://www.rrc.texas.gov/alternative-fuels/compressed-natural-gas/certification-and-company-licensing/licenses/licensing-checklist/

LNG – https://www.rrc.texas.gov/alternative-fuels/liquefied-natural-gas/certification-and-company-licensing/licenses/licensing-checklist/

Fees vary by category. Click to view a complete list.

LPG License fees 

CNG License Fees 

LNG License Fees 

A new license is required in the name of the corporation. The following forms and the required license fee must be submitted, as well as an ACORD Certificate of Insurance for the required insurance coverage.
LPG Form 1
CNG Form 1001
LNG Form 2001

A license is good for one year.

Yes.  A copy of your company’s wall license needs to be displayed at each of your outlets.

The Railroad Commission mails renewal forms to each licensee 60 days before the license is set to expire.  You may return the forms to the Commission by mail and enclose a check, or you may pay by credit card online by clicking here and email your forms and your online payment receipt to the Commission at lplicense@rrc.texas.gov.”

If the corporation will remain the same, except for new officers, you must submit a revised LPG Form 1, CNG Form 1001, or LNG Form 2001, indicating the new officers and any changes in the company representative

Yes, you may keep your license active by simply renewing it annually. A licensee that performs no LP-gas, CNG or LNG activities requiring a license may file the appropriate Statements in Lieu of Insurance on Railroad Commission:

• Workers Compensation - LPG Form 996B, CNG Form 1996B, or LNG Form 2996B
• Motor Vehicle - LPG Form 997B, CNG Form 1997B, or LNG Form 2997B
• General Liability - LPG Form 998B, CNG Form 1998B, or LNG Form 2998B

A site operated by an LPG/CNG/LNG licensee from which any regulated LPG/CNG/LNG activity is performed.

LPG Form 1A, CNG Form 1001A, or LNG Form 2001A, require the outlet’s name, address and phone number, and the operations supervisors’ name and Social Security number.

An operations supervisor is the individual who is certified by the Commission to actively supervise a licensee’s LPG/CNG/LNG activities and is authorized by the licensee to implement operational changes.

No. Your licensing fee covers all your company’s outlets.

You need to add the outlet to your current license by submitting LPG Form 1A, CNG Form 1001A, or LNG Form 2001A.

In general, any cargo tank motor vehicle or container delivery vehicle that principally transports LPG/CNG/LNG is required to be registered with the Railroad Commission.

Yes. The current operator must register any truck operating in Texas.

Yes

Yes. A bobtail that is used as a backup is required to be registered before it is used for LP-gas service.

Yes, you must register any truck or trailer that is used principally for transporting LPG in portable containers.  

Any truck or trailer that delivers LP-gas cylinders but is not used principally for transporting LPG in portable containers is exempt from registration.

If the vehicle is an LPG transport or bobtail or CNG/LNG container delivery unit, submit:

• LPG Form 7, Cargo Tank Registration/Re-registration,
• CNG Form 1007, Truck Registration/Re-registration/Transfer, or
• LNG Form 2007 Truck Registration/Re-registration/Transfer.

If the vehicle is an LPG container delivery unit, submit a Form 7A, Container Delivery Unit Registration/Re-registration.

All units require a $270.00 registration fee.

To register a transport or bobtail that has never been registered with the Railroad Commission, you must also submit the Manufacturer’s Data Report, the DOT Certificate of Compliance and the most recent hydrostatic test if the unit is older than 5 years or 10 if an LPG unit that meets the CFR 49 exemption.

A copy of the results of the test required by CFR 49 for LPG and LNG units or the test required per the special permit for CNG and performed on the unit within the last five years or according to the CNG special permit. For LPG units the test may be required within the last ten years if the unit meets the exemption in CFR 49.

No.

$270.00

Decals are issued by the Railroad Commission’s Alternative Fuels Safety department, Licensing Section.

Placement of the decal varies by the type of vehicle. The correct location for all vehicle types is displayed on the back of each decal.

No. The decal does not transfer to the new owner.

The new owner must submit a transfer fee of $100.00 and the following form:

• LPG Form 7T, Cargo Tank and Container Delivery Unit Transfer, 
• CNG Form 1007, Truck Registration/Re-registration/Transfer, or 
• LNG Form 2007, Truck Registration/Re-registration/Transfer.

The vehicle must have a current (active) decal from the previous owner and may only be transferred to a company that has a current LP-gas license. Once the transfer is completed, the Commission will issue the new owner a new decal.

To request a replacement decal, submit the required $50.00 fee and the following form:

• LPG Form 18B, Statement of Lost or Destroyed LPG Form 4 Decal,
• CNG Form 1018B, Statement of Lost or Destroyed CNG Form 1004 Decal, or
• LNG Form 2018B, Statement of Lost or Destroyed LNG Form 2004 Decal.

Submit  either an LPG Form 18B, CNG Form 1018B, or LNG Form 2018B along with the required $50.00 fee.

No.

No.

No. A decal will not issued if the Commission does not have an inspection record for an LPG unit within the required four-year cycle.

Yes.

Insurance requirements vary according to license category and according to whether the licensee transports fuel and has employees. The types and amounts of insurance are listed in Texas Administrative Code:

• LPG – TAC 9.26, Insurance and Self-Insurance Requirements,
• CNG – TAC 13.62, Insurance Requirements, or
• LNG – TAC 14.2031, Insurance Requirements.

Submit a copy of the ACORD 25 form, or other form approved by the Texas Department of Insurance showing the required insurance for the category of license.

If the applicant or licensee will not be conducting activities and will keep the license active, submit LPG Form 998B, CNG Form 1998B, or LNG Form 2998B.

If a license allows the transportation of LPG/CNG/LNG and the applicant or licensee will not register any units, submit LPG Form 997B, CNG Form 1997B, or LNG Form 2997B.

If an applicant or licensee will not have any employees conducting activities with LPG/CNG/LNG, submit LPG Form 996B, CNG Form 1996B, or LNG Form 2996B

Call TDI or visit the Texas Department of Insurance web site.

A licensee or applicant desiring to self-insure must file LPG Form 28 and Form 28A (Bank Declarations Regarding Irrevocable Letter of Credit and associated documentation), CNG Form 1027 and Form 1028, or LNG Form 2027 and Form 2028 Application To Use Irrevocable Letter of Credit.

Complete requirements are set out in LPG Safety Rule §9.26(i), CNG Safety Rule §13.63-13.64 and LNG Safety Rule §14.2034.

Self-insurance documents submitted to the Commission are reviewed by the Commission’s Office of General Counsel before a license is issued.