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propane business on margin 2X," he said, "because of those tanks. You've got to pay back that capital investment—that $40,000 to buy a hundred tanks." Among other outlays are liability insurance, and training and
licensing technicians. "There's an expensive training process to get a license in any New England state, and it can be lengthy," the expert said. Massachusetts, for example, requires two years of classroom training and field experience, and every state requires classroom education and on-the-job experience. Joe Rose of the Propane Gas Association of New England,
Epsom, N.H., said, "Once any new company enters the propane market, I would strongly encourage them to belong to the associa- tion so that they have the benefits of the training and information that we provide on a regular basis." To get an idea of the benefits of association membership, visit the group's website at pgane. org. The group has nearly 500 member companies throughout the six-state region. In Maine, seven out of 10 fuel oil dealers are in the propane
business, possibly more, David Martin a regional vice president for Webber Energy Fuels in Bangor, Me., said in an interview in January, days before Webber agreed to sell its propane and fuel oil business to Dead River Co., South Portland, Me.
Many family-owned businesses with one to three fuel oil
trucks have diversified into propane to help grow their business, Martin said. If a dealer is selling fuel oil in a rural area, Martin observed, "he's got a customer list that's ready-made. He's got a relationship that's already established and that's pretty critical to this migration into the propane business." There are also markets for propane that are not exploited well
enough, such as agriculture, Martin said. "Propane has a big place in agriculture," he said. "Out in the Midwest, it's used all the time for everything from drying the grain to burning the weeds." Similarities between the fuel oil and propane businesses can
help a fuel oil dealer make the move into propane. "A heating oil dealer is used to filling up at the rack, delivering house to house, having receivables and collecting them and billing," Martin said. But the differences between the fuel oil and propane businesses
should be carefully considered before deciding to go into propane, Martin said. For example, in the propane market, it is possible to buy futures, but not to hedge in the conventional way, Martin said. Propane delivery requires more than just a commercial driv-
er's license with a hazardous materials endorsement, Martin noted, and propane regulations are more extensive and compli- cated than those for fuel oil. l FON
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