Otoe-Missouria Tribe gives members, community another option

PK Propane plans to maximize and capitalize on a minimum requirement.

The start-up Oklahoma retailer marked its one-year anniversary in January after the Otoe-Missouria Tribe saw a need for a local propane supplier to help tribal members and anyone else struggling to pay high heating costs.

“The primary reason [for the new company] was to assist our elders during the wintertime,” says Lester Harragarra, company manager and an Otoe-Missouria Development Authority board member. The authority is responsible for managing the tribe’s current and future economic development ventures.

“The need was recognized by the current chairman, John Shotton, for assisting these elderly people on fixed incomes,” Harragarra adds. “Some propane companies had a minimum amount of delivery, and it was difficult for some people on fixed incomes to meet, especially with escalating prices of heating during the wintertime.”

PK Propane is working to make a name for itself in the area, using its lower costs and customer service, being reliable and timely on deliveries, to separate from the competition, Harragarra says. The company is located on tribal land, halfway between Ponca City and Stillwater.

“The most important thing is we’re open to service anybody,” Harragarra says.

With the tribal leaders not having an extensive background in propane, PK Propane hired two employees at the outset from a larger company in the Tulsa area to get the venture up and running, Harragarra adds.

PK Propane now reaches about 300 mostly residential customers in a 50-mile service area with one bobtail, while it seeks another, and it fills forklift, RV and 20-pound cylinders. After the heating season, the company wants to begin securing more commercial accounts in the Ponca City and Stillwater areas, leading to more steady, dependable business year-round.

Asked about starting a business in today’s unstable economic climate, Harragarra says, “There’s always some apprehension about how successful it would be. There were some large up-front costs buying the equipment needed to dispense and transport propane, in addition to training staff, but we felt like we’re in it for the long term and we want to continue to grow our business.”

TEAM: Randy Shotton, site manager; Abe Dent and Deswood Koshiway, delivery drivers/service technicians; Melissa Dunn, customer service representative

LOCATION: Red Rock, Okla.

FOUNDED: 2011

EMPLOYEES: 4

CUSTOMERS: About 300

STORAGE: About 18,000 gallons

ONLINE: www.pkpropane.com