Oklahoma Administrative Code Title 420 - Oklahoma Liquefied Petroleum Gas Board
Oklahoma Administrative Code Title 420 — Detailed Explanation (with Oklahoma case law)
What is Title 420 OAC?
Title 420 of the Oklahoma Administrative Code contains rules adopted by the Oklahoma Liquefied Petroleum Gas Board (the "Board") to regulate the handling, storage, transportation, and use of liquefied petroleum gas (LPG) in Oklahoma.
The Board’s authority is granted by the Oklahoma Liquefied Petroleum Gas Regulation Act, primarily codified in Title 52, Oklahoma Statutes, Sections 420.1–420.17.
The rules in Title 420 implement and expand on the statutory framework to:
Promote safety in the LPG industry
Set licensing and permit requirements
Establish technical standards for LPG equipment and installations
Define enforcement procedures for violations
Key Components of Title 420 OAC
1. Permits and Registration
Anyone engaging in LPG-related activities (manufacturing, transporting, installing, selling) must obtain a permit from the Board.
Different classes of permits exist, tailored to the scope of the activity.
Permit holders must comply with all safety and insurance requirements specified by the Board.
Permits can be suspended or revoked for violations of the rules.
2. Technical and Safety Standards
The code adopts technical standards related to storage tanks, piping, pressure testing, and appliance installation.
The Board requires that installations and equipment meet safety specifications to prevent leaks, explosions, or other hazards.
3. Insurance Requirements
Permit holders must maintain liability insurance covering public and property damages.
Minimum coverage limits are set by the Board and required as a condition of holding a permit.
4. Enforcement Procedures
The Board or its Administrator can investigate complaints or violations.
Violations may lead to warnings, fines, permit suspension, or revocation.
The rules provide for due process protections: notice, hearing, evidence presentation, and appeal rights.
Relevant Oklahoma Case Law Interpreting Title 420 and the Board’s Authority
1. Gorum v. Oklahoma Liquefied Petroleum Gas Board, 235 F. Supp. 406 (W.D. Okla. 1964)
Issue: Whether Oklahoma’s statute restricting permits to nonresident companies unless there is reciprocity with their home state violates constitutional protections.
Holding: The court upheld the statute, affirming the Board’s authority to impose residency or reciprocity requirements on permit applicants.
Significance:
Confirmed the Board’s statutory power to regulate who may hold LPG permits based on residency and reciprocity.
Allowed Oklahoma to regulate LPG businesses in a way that protects local interests and safety, without violating Equal Protection or Due Process.
2. MGA Insurance Co. v. Fisher-Roundtree, 159 F.3d 1293 (10th Cir. 1998) (applying Oklahoma law)
Issue: Whether insurance policies held by LPG permit holders must include “completed operations” coverage as required by the Board’s insurance rules.
Holding: The court ruled that the Board’s insurance requirements become part of the permit holder’s insurance policy by operation of law, even if the policy excludes certain coverages.
Significance:
Established that the Board’s insurance regulations under Title 420 are mandatory and enforceable.
Insurers and permit holders must comply with minimum coverage requirements.
Protects the public and customers from uninsured risks associated with LPG operations.
3. In re Traders Compress Co., 381 F. Supp. 789 (W.D. Okla. 1973)
Issue: Whether the Board’s regulations can limit a supplier’s ability to cancel LPG contracts when cancellation threatens public safety.
Holding: The court recognized the Board’s authority to enforce regulations ensuring continuous supply of LPG to safeguard public safety.
Significance:
Demonstrated the Board’s regulatory power extends beyond licensing and safety standards to the public interest in an uninterrupted LPG supply.
Confirmed that public safety concerns under Title 420 can override contractual freedoms.
How These Cases Relate to the Code’s Enforcement and Regulatory Role
The Board’s rulemaking and enforcement under Title 420 are grounded firmly in the Oklahoma Legislature’s grant of authority.
Courts uphold these rules unless they clearly violate Oklahoma constitutional protections.
Insurance and technical standards set by the Board are considered essential conditions for permit validity.
The Board’s power to protect public safety can extend to overseeing business practices such as contract enforcement in LPG supply.
Procedural fairness is required in enforcement actions, including hearings and appeals.
Summary: Practical Effect of Title 420 OAC and Case Law
Permit requirement: All LPG-related operations must be licensed by the Board.
Safety standards: Must strictly comply with Board technical requirements.
Insurance: Must carry minimum liability insurance as required.
Enforcement: The Board may suspend/revoke permits for violations, but must follow due process.
Court support: Oklahoma courts uphold the Board’s authority and regulations, emphasizing public safety and proper regulation of the LPG industry.
RELATED Blog
0 comments