This is from Season 3 Episode 19 where Peggy makes a video for the Dallas Cowboys by cobbling together old home movies to show them the personality of the people of Arlen. Presumably, this footage is from before Hank’s hatred for charcoal began—I’m going to take a wild guess and say he became more evangelical about propane when he became a lead.
In the early seasons he grilled on charcoal. Also they sell propane grills that use charcoal, this isn’t actually a conflict, it was more an affectation.