Establishing secure connection…Loading editor…Preparing document…

Propane Service Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

PROPANE SERVICE AGREEMENT

This Propane Service Agreement (the Agreement) is entered into by and between Customer Name: and Service Provider Name: . Effective Date:

WHEREAS

WHEREAS, Customer owns or occupies the premises at Service Address: (the Premises); and

WHEREAS, Provider is engaged in the business of supplying, delivering and servicing propane and related equipment and agrees to provide such services to Customer under the terms set forth herein; and

WHEREAS, the parties desire to set forth their respective obligations, payment terms, and other conditions in writing.

CUSTOMER AND ACCOUNT INFORMATION

Tank Size:   Tank Location/ID:

SCOPE OF WORK

Provider shall supply, deliver and, if applicable, install, inspect and maintain propane equipment and cylinders at the Premises in accordance with accepted industry standards and applicable codes. Provider's obligations include safe delivery of propane to the tank specified above, routine safety inspections, and emergency response as specified below. Provider is not responsible for pre-existing defects in equipment not owned by Provider.

Automatic delivery (Provider monitors usage and schedules deliveries)    Will-call delivery (Customer requests delivery)

PAYMENT TERMS

Customer shall pay Provider for propane delivered and services performed at the rates and on the schedule set forth below. Payment obligations are independent of use and shall survive termination as provided herein.

Late Fee: . Provider may suspend deliveries for accounts delinquent beyond thirty (30) days after written notice. Customer remains liable for all amounts due, collection costs and attorneys' fees incurred to enforce payment.

TERM AND TERMINATION

Term Start Date: . Term End Date: .

Either party may terminate this Agreement for convenience upon written notice to the other party no fewer than days prior to the intended termination date. Provider may terminate immediately, or suspend service, for Customer's material breach, including nonpayment, unsafe site conditions, or denial of reasonable access to tanks and equipment.

CONFIDENTIALITY

Each party shall hold confidential all non-public business or technical information disclosed by the other party in connection with this Agreement. Confidential information shall not include information that is public through no fault of the receiving party, independently developed without use of the other party's confidential information, or lawfully received from a third party. Confidentiality obligations survive termination for a period of two (2) years.

SAFETY, ACCESS AND MAINTENANCE

Customer authorizes Provider and its agents to access the Premises and tank location for deliveries, inspections and repairs. Customer shall maintain clear and safe access, free of debris, snow, ice and obstacles. Customer shall promptly notify Provider of leaks, damage, or suspected hazards. Provider is not responsible for damage or delays caused by concealed defects, vandalism, tampering, or third-party damage.

Access Authorization: Customer authorizes Provider access as stated above.

INDEMNIFICATION, LIMITATION OF LIABILITY AND FORCE MAJEURE

Customer agrees to indemnify, defend and hold Provider harmless from liabilities, losses and claims arising from Customer's negligence, misuse of equipment, or failure to maintain safe access. Provider's liability for any claim arising from this Agreement shall be limited to direct damages not to exceed the total amounts paid by Customer to Provider in the twelve (12) months preceding the claim. Neither party shall be liable for delays or failures due to events beyond its reasonable control, including but not limited to severe weather, shortages of propane supply, labor disputes, or governmental actions.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to conflict of law principles.

ENTIRE AGREEMENT

This Agreement, including any attached schedules or addenda, constitutes the entire agreement between the parties with respect to the subject matter and supersedes all prior negotiations, representations and agreements, whether written or oral. Any amendment shall be in writing and signed by both parties.

MISCELLANEOUS

Notices shall be in writing and delivered to the billing address or other address provided by the parties. If any provision is held invalid, the remainder shall continue in full force. Headings are for convenience only and do not affect interpretation.

Customer (Print Name):

By:

Date:

Service Provider (Print Name):

By:

Date:

Enter text✕

What a Propane Service Agreement Covers

A Propane Service Agreement is a written contract between a propane supplier and a customer that defines delivery terms, pricing, payment schedules, equipment responsibilities, safety and emergency procedures, access for service, maintenance obligations, and termination rights. Typical provisions specify tank ownership or lease, refill triggers or automatic delivery, billing cycles, prorations for partial deliveries, liability and indemnity clauses, force majeure, and the governing state law. For electronic execution, the agreement can be signed under U.S. e-signature law (ESIGN and UETA) when parties satisfy intent, consent, attribution, and retention requirements.

Why a Clear Agreement Matters for Supply and Safety

A well-drafted Propane Service Agreement reduces service interruptions, clarifies cost allocation, and documents safety and access obligations between supplier and customer.

Why a Clear Agreement Matters for Supply and Safety

Typical Parties and Roles for This Agreement

Who signs and uses this agreement varies by property type and business role.

  • Residential homeowners and tenants who receive propane deliveries and require clear refill and billing terms.
  • Commercial building owners and facility managers who schedule deliveries, manage bulk tanks, and allocate costs across operations.
  • Retail or service providers (e.g., restaurants, greenhouses) that depend on uninterrupted propane supply for business continuity.

Clearly identifying parties and roles up front reduces disputes and simplifies service coordination.

Who Signs and Why

Supplier Representative

Operations or contract manager for the propane company who commits to delivery schedules, emergency response times, and equipment maintenance obligations on behalf of the supplier.

Customer Signatory

Property owner, authorized tenant, or business officer who accepts pricing, authorizes access to tanks, agrees to payment terms, and assumes responsibility for on-site safety compliance.

Key Compliance and Security Details to Include

Encryption: AES-256 at rest
Transport Security: TLS 1.2/1.3
Audit Trail: Timestamped events
HIPAA: BAA required if PHI present
ESIGN / UETA: Legal framework
Access Controls: Role-based permissions

Common Legal and Financial Risks

Late Payment: Interest, service suspension
Missed Delivery: Operational losses
Incorrect TIN: Backup withholding
Improper Termination: Breach damages
Unmaintained Tank: Liability for accidents
Improper eSign: Enforceability challenges

Frequent Preparation Errors to Avoid

  • Omitting a clear refill trigger (gauge reading or estimated usage) leads to missed or duplicate deliveries and billing disputes.
  • Failing to state tank ownership or lease status creates confusion about maintenance and insurance responsibility after installation or transfer.
  • Using vague payment terms such as 'net reasonable payment' leaves open collection disputes and potential late fees misapplication.
  • Neglecting emergency access and shutoff procedures can delay response times and increase safety and regulatory liabilities.

Essential Sections in a Professional Agreement

Include specific, enforceable provisions that allocate cost, risk, and operational duties to minimize later disputes and ensure safety compliance.

Service Scope

Specify delivery method, auto-refill thresholds, and whether emergency deliveries are included or billed separately; avoid ambiguous language about frequency.

Pricing & Fees

List per-gallon price, applicable taxes, service charges, and any variable fuel or seasonal adjustments; define billing cycle and late fee calculation.

Equipment Terms

State tank ownership, inspection responsibilities, repair obligations, and replacement procedures to clarify liability for leaks or failures.

Access & Safety

Grant supplier right of access, specify clearing of pathways, include NFPA and local code compliance expectations, and outline emergency shutoff steps.

Term & Termination

Define initial term, renewal, notice periods for cancellation, and remedies for breach including cure periods and liquidated damages if applicable.

Legal Terms

Include indemnity, limitation of liability, insurance minimums, governing law, and dispute resolution mechanisms such as arbitration or courts.

How to Complete the Agreement, Step by Step

Follow a clear sequence to gather details, confirm safety requirements, and obtain valid signatures to make the agreement enforceable.

  • 01
    Collect Information: Obtain full party names, addresses, tank location, and contact numbers.
  • 02
    Define Service: Select refill method: auto-refill or will-call and set thresholds.
  • 03
    Set Charges: Enter per-gallon pricing, fees, taxes, and billing cycle.
  • 04
    Sign and Date: Execute with authorized signers and record signature method.

Typical Routing and Fulfillment Workflow

A reliable routing process ensures timely delivery, clear invoicing, and a preserved audit trail from request through completion.

  • Order Placement: Customer requests refill or auto-refill triggers supplier.
  • Dispatch: Supplier schedules and dispatches delivery team.
  • Delivery Confirmation: Driver records gauge and customer signs receipt.
  • Billing: Invoice issued per billing cycle with payment terms.

Online Customization Options for Digital Agreements

Configure the online workflow to reduce manual steps and capture required authorizations before dispatching service.

Field Configuration
Delivery Schedule Conditional field: auto-fill based on tank size and historical usage
Auto-Refill Option Checkbox enabling scheduled deliveries and waiver of will-call
Emergency Contact Required field with two contact numbers for same-day response
Signature Authentication Choose email link, SMS code, or stronger KBA where required

Technical Considerations for Electronic Execution

Verify platform capabilities and integrations before enabling e-signature workflows for service agreements.

  • Integrations: Salesforce, NetSuite, Microsoft 365
  • File Formats: PDF, DOCX, HTML supported
  • Authentication: Email, SMS, or advanced verification

Choose a platform that supports audit trails, exportable signed PDFs, and the authentication level you need for enforceability.

Common Contract Deadlines and Notice Periods

Specify measurable deadlines and notice periods to avoid ambiguity around deliveries, cancellations, and billing.

Payment Due:

Net 30 days from invoice date unless otherwise agreed

Delivery Window:

Supplier to deliver within 24–72 hours of order or scheduled auto-refill

Renewal Notice:

Customer or supplier must give 30 days written notice before term renewal

Cancellation Notice:

Either party provides 30 days notice for termination without cause

Emergency Response:

Supplier to respond to service-affecting emergencies within same business day where feasible

eSignature Pricing Comparison for Executing Propane Agreements

When selecting an e-signature provider for recurring service agreements, compare per-user pricing, available trials, bulk-send capability, audit trails, and HIPAA compliance.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial Yes, 7-day trial No No Yes, limited Yes, limited
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently Asked Questions About Propane Service Agreements

Answers to common execution, enforcement, and operational questions when preparing or signing a Propane Service Agreement.


Need help? Contact support

be ready to get more
Join over 28 million airSlate SignNow users