Skip to main content
CityRuleLookup

Texas Statewide Rule

Texas Requires a State License to Store LP-Gas Commercially

Some RestrictionsApplies statewide across Texas (2026)

Key Facts

Governing law
Nat. Resources Code Ch. 113
Enforcing agency
Railroad Commission of Texas
Commercial storage
RRC license required
Safety code
NFPA 58 via 16 TAC Ch. 9
Local rules
Preempted statewide
Last verified: July 31, 2026

Summary

Selling, transporting, dispensing, or storing propane (LP-gas) in Texas requires a license from the Railroad Commission of Texas under Natural Resources Code Chapter 113. Only the ultimate consumer storing propane for personal use is exempt, and Commission rules preempt local ordinances statewide.

Sec. 113.081. LICENSE REQUIREMENT. (a) Unless otherwise stated in this chapter, a person may not engage in any of the following activities unless that person has obtained a license from the commission authorizing that activity: ... (4) product activities: the sale, transportation, dispensation, or storage of LP-gas in this state, except that a license is not required to sell LP-gas where the vendor never obtains possessory rights to the product sold or where the product is transported or stored by the ultimate consumer for personal consumption only.

Full Breakdown

The Railroad Commission of Texas (RRC) licenses anyone who sells, transports, dispenses, or stores LP-gas commercially under Natural Resources Code Section 113.081(a)(4). The RRC's LP-Gas Safety Rules in 16 Texas Administrative Code Chapter 9 adopt NFPA 58 for how storage containers are built, sited, and filled (authorized by Section 113.052), and Section 113.054 makes those rules preempt any city or county propane ordinance. A retail or wholesale dealer must pass an actual Commission inspection of its bulk storage equipment before a license issues (Section 113.089). A homeowner storing propane for personal consumption needs no license; installation is performed by RRC licensees.

Violations & Penalties

Engaging in commercial propane storage, sale, or transport without the required Railroad Commission license, or violating the LP-Gas Safety Rules, is prohibited and exposes a person to RRC enforcement, administrative penalties, and license denial, suspension, or revocation.

Frequently Asked Questions

Do I need a license to store propane at my home?
No. Natural Resources Code Section 113.081(a)(4) exempts propane stored by the ultimate consumer for personal use. Only commercial sale, transport, dispensing, or storage requires a Railroad Commission license.
Can my city set its own propane storage rules?
No. Section 113.054 makes Railroad Commission LP-gas rules preempt local ordinances. A city or county may petition the RRC for stricter rules only by proving they enhance public safety.

Sources

See something wrong?

Help us keep this page accurate. If you notice an error or outdated information, let us know.