TulsaLetter from the Petroleum Equipment Institute

Vol. 62, No. 10

Thu, 03 May 2012 06:00:00 GMT

May 3, 2012 | Vol. 62, No. 10

respond | preferences | login | unsubscribe

Dear PEI Member:

The PEI Board of Directors met April 20 in Santa Fe, New Mexico, and made a number of policy decisions related to membership services and association operations. Here is a summary.

Two New Recommended Practices. The directors approved two new recommended practices for immediate development:

Recommended Practices for the Installation of Compressed Natural Gas Delivery and Storage Systems for Vehicle Refueling; and
Recommended Practices for the Installation of Fueling Systems for Emergency Generators and Fuel Oil Fired Boiler Systems.

We are currently forming a steering committee whose sole purpose is to develop a scope statement for the CNG document. If you are interested in being a part of this "scope" committee contact Bob Young at PEI byoung@pei.org. The process should take no more than three weeks and all work will be handled by conference call. Formation of the two committees that will be responsible for writing the new recommended practices will begin this summer.

10-Groups for Service Managers. The directors voted to extend PEI's highly successful 10-Group program to service managers. These groups will be separate and distinct from the 10-Groups currently available to principals of Distributor, Service and Construction, and Affiliate Division member companies. Look for these groups to form this summer.

Committee Recommendations Approved. Reports from PEI's Education and Convention, Strategic Long Range Planning, Safety, Investment and Young Executives Committees were reviewed. Some board action of general interest to PEI members include:

A budget of $2,753,687 for the fiscal year that began April 1. No dues increase for the 20th consecutive year.
Two conferences in 2012/13: one for Service and Construction Managers and the other for Vehicle Lubrication and Maintenance Equipment.
The formation of a special survey for distributors on technology.
The extension of PEI's Safety Audit Program to members of the service and construction division of PEI, in addition to PEI distributor members in the United States.
The establishment of a new Strategic Long Range Plan for the association.
Approval of the 2012 PEI Convention program in Las Vegas, October 7-10.

PEI Board Meets in Santa Fe

E15 Moves Another Step Closer to the Marketplace

Lundberg: Fewer Oil Jobbers

Respond to this Newsletter

by e-mail to the editor, Robert Renkes at rrenkes@pei.org

or join the discussion in the Petroleum Equipment Forum

to unsubscribe or change preferences see below.

PEI President Joey Cheek, Tampa, Florida, presided at the midyear meeting. Other officers and directors attending the meeting included:
Terry Cooper, Marion, IA (Vice President)
Phil Farrell, Kansas City, MO (Treasurer)
Dennis Rethmeier, San Diego, CA (Immediate Past President)
Bob Renkes, Tulsa, OK (Executive Vice President)
James Ether, Saratoga Springs, NY (District 1)
Scott Hafer, Reading, PA (District 2)
Joey Batchelor, Jacksonville, FL (District 3)
Tim Woofter, Hartford, OH (District 4)
Mike Hoffman, Mobile, AL (District 5)
Susan Gozdowski, Forest View, IL (District 6)
Bret Swan, Minneapolis, MN (District 7)
Mark Cowie, Houston, TX (District 8)
John Moore, Fresno, CA (District 9)
Eva Chambers, Simsbury, CT (District 10)
Bret Carlyle, Columbus, OH (District 11)
Brad Baker, Pacific, MO (District 12)
Joey Arn, Jacksonville, FL (District 13)
Chris Lawson, Irving, TX (Service and Construction Division)
Rick Long, Tulsa, OK (General Manager)

FINAL FEDERAL HURDLE TO SALE OF E15 TO BE CLEARED SOON
The Reformulated Gasoline Survey Association (RFGSA) is poised to begin taking samples as part of an annual survey required by the Environmental Protection Agency (EPA) as a precondition to E15 being introduced into commerce for use in 2001 and newer vehicles. Once the survey is under way, the ethanol industry will have satisfied the final federal requirement to E15 availability. State-specific regulations, pending litigation and other technical issues "make predicting the exact timeframe for the growth of E15 sales volume unwise," according to the Renewable Fuels Association.

The RFGSA, funded by 99 ethanol producers, will collect and test more than 7,500 gasoline samples to check for oxygenate content and Reid Vapor Pressure (RVP), among other things. If E15 is detected, the RFGSA will verify that the retailer has properly displayed E15 labels as required by EPA. The launch of the E15 Fuel Survey is expected very soon.

Press reports about the survey have increased the industry's interest in PEI's UST Component Compatibility Library. The Library contains statements from 22 manufacturers of underground storage tank components regarding equipment compatibility with gasoline containing more than 10 percent ethanol or diesel containing more than 20 percent biodiesel. The compliance letters are used by tank owners to demonstrate compliance with the compatibility requirement of 40 CFR 280.32.

Manufacturers who would like to be included should email their compatibility statements to compliance@pei.org. Manufacturers submitting letters to date include: Acterra, Ameron International, Bravo Systems, Brugg Pipesystems, Containment Solutions, Hamilton Tanks, Highland Tank, KPS, Metal Products Company, Mid-South Steel, Modern Welding, Morrison Bros., National Environmental Fiberglass, NOV Fiber Glass Systems, Nupi Americas, Omegaflex, Owens Corning, Service Welding, Stanwade, Vaporless Manufacturing, Western Fiberglass and Xerxes.

PEI NOTES
PEI Convention Group Registration Discounts Available. PEI offers group discounts to companies who register five or more people for the PEI Convention, October 7-10, 2012, in Las Vegas, Nevada. Spouses qualify as group registrants. Groups must register by July 31 to receive the discounts. Click here for more information, or call 918-236-3967.

The second quarter PEI Journal has been printed and shipped, and is also available online. This edition features many useful articles including:

LUNDBERG: TREND TO FEWER JOBBERS CONTINUES
The April 26, 2012, Lundberg Letter examined the decline in the number of petroleum marketers―defined by the Lundberg editors as major branded jobbers, independent jobbers and large chains―from 1970 to 2012. It was the best summary I have read on the subject since Lundberg wrote about the subject in 2009. The article contained the major reasons the number of petroleum marketing companies have declined and, in my view, will continue to fall in the years ahead. They include:

Larger jobbers gain economies of scale and efficiencies.
Well-run jobberships often gobble up smaller inefficient ones.
Long-time owners desire to exit the business, and sell.
Encroaching high volume chains.
Inability to secure loans.
Insufficient cash to handle temporary margin squeezes.
Greater need for financing due to higher costs to hold fuel inventories.
Refiner minimum gallonage requirements.
Increased usage of dealers by jobbers (making it easier to manage a larger chain).
Continued depressed U.S. economy, employment and gasoline demand.
Rapid expansion ambushes jobbers with surprises like dealer turnover and related cash flow problems.

MEMBERSHIP APPLICATIONS
Georgia distributor. Ford's Equipment, P. O. Box 2115, Macon, Georgia 31206, has applied for distributor division membership. Walter Pearman is the primary contact for the company, which was established in 1965. The company represents Catlow, Franklin, IRPCOinc, OPW-FMS, Smithpipe, TMS and Xerxes. The firm sells and services underground and aboveground petroleum tanks and lube equipment. Sponsored for PEI membership by Andy N. Thompson, Jr., CentralInd, Savannah, GA.
Fuel pump security system manufacturer. Loxahatchee Electronics Corp., 9150 Belvedere Road, Suite 113, Royal Palm Beach, Florida 33411, has applied for manufacturer division membership. John Garrity is president/CEO of the firm, which was established in 1991. Loxahatchee's equipment monitors the access panels of fuel dispensers and protects against credit card skimmer installation. The products are sold through distributors. Sponsored for PEI membership by Ronald Walker, AlliedElec, Bristol, PA.
Natural gas training and consulting firm. Natural Gas Vehicle Institute, 3120 South Durango Drive, Suite 304, Las Vegas, Nevada 89147, has applied for affiliate division membership. Annalloyd Thomason is vice president and general manager for the firm, which was established in 1989. The company provides training and consulting services for fleets and industry representatives interested in natural gas as a transportation fuel. Sponsored for PEI membership by Jerry Schmitz, PetMarCo, Oklahoma City, OK. www.ngvi.com
Software developer. Ontrak Software, LLC, 770 Jim Wilson Road, Indian Land, South Carolina 29707, has applied for affiliate division membership. Dr. Bob Harris is vice president of marketing for the firm, which was established in 2010. The company provides software for use by distributors, wholesalers and value-added resellers. Sponsored for PEI membership by Jacob Jackson, Pump&Tank, Greensboro, NC. www.ontrak.com
Building control products manufacturer. Global Control Solutions, LLP, 6307-C Angus Drive, Raleigh, North Carolina 27617, has applied for affiliate division membership. Jeff Luther is vice president of building controls for the company, which was established in 2011. The company manufactures building control products used in environmental refrigeration and lighting control for convenience stores and other commercial applications. Sponsored for PEI membership by Earl Parks, TMS, Raleigh, NC. www.globalcontrolsolutions.net
Alabama tank cleaning firm. Petro Tank Solutions, LLC, 5440 Woodford Drive, Birmingham, Alabama 35242, has applied for service and construction division membership. Rob Steber is the primary contact for the company, which was established in 2011. The company specializes in underground and aboveground fuel tank cleaning. Sponsored for PEI membership by Lauritz Spann, Panhandle, Molino, FL. www.petrotanksolutions.com
Bahamas maintenance and repair firm. AFD Management Services, Pear Dale Road, Nassau, Bahamas 5991-SS, has applied for service and construction division membership. Freeman Deveaux is CEO of the firm, which was established in 2006. The company maintains and repairs petroleum equipment at service stations, marinas and consumer sites. Sponsored for PEI membership by Carlos Solares, Solares&Co, Bayamon, Puerto Rico.

ADMITTED TO PEI

Greenlight Solutions, LLC, West Alton, MO (dis)
ANGI Energy Systems, LLC, Milton, WI (aff)
Deposit Control Systems, Inc., Cohoes, NY (aff)
United Technologies, Fort Myers, FL (aff)
Outsite Networks, Inc., Norfolk, VA (aff)
S. M. Miller Construction Co. Inc., Grove City, OH (S&C)

Manage Your Subscription

This newsletter is a member benefit of the Petroleum Equipment Institute. To unsubscribe by email click here or manage all your newsletter subscriptions online at www.pei.org/membersonly.

Do not reply to this message.
This newsletter is sent from an unattended mailbox.
To respond to this newsletter use these options.

PEI® and the PEI mark are registered trademarks
of the Petroleum Equipment Institute.
Copyright © 2012 All rights reserved.

The TulsaLetter (ISSN 0193-9467) is published two or three times each month by the Petroleum Equipment Institute. Robert N. Renkes, Executive Vice President, Editor. Opinions expressed are the opinions of the Editor. Basic circulation confined to PEI members.

Vol. 62, No. 9

Wed, 18 Apr 2012 06:00:00 GMT

April 18, 2012 | Vol. 62, No. 09

respond | preferences | login | unsubscribe

Dear PEI Member:

A delivery driver from Florida Rock & Tank Lines was refilling an aboveground storage tank at the 5th Wheel BP gas station in St. Augustine, Florida, on August 18, 2011. According to the U.S. Department of Labor's Occupational Safety and Health Administration (OSHA), the tank had a broken liquid level gauging system. Gasoline overflowed from the tank. Vapors then combined with heat from the running delivery truck to trigger an explosion. Click here for pictures of the accident. According to published reports, the resulting fire took several hours to put out. The delivery driver suffered third-degree burns and spent several weeks in the hospital.

Following a six-month investigation, OSHA proposed a $70,000 fine against Florida Rock & Tank Lines, along with a citation for a willful violation for "failing to provide a means for the delivery driver to determine if the storage tank had enough capacity for additional gasoline." Coomes Oil was cited for one serious violation with a proposed penalty of $7,000 for "failing to provide employees and delivery drivers a means to determine the gasoline levels in the aboveground storage tank."

The fire, injuries and property damage would not have happened if PEI's Recommended Practices for Overfill Prevention of Shop-Fabricated Aboveground Tanks (PEI/RP600) had been followed. Published first in 2007 and just now revised, the document continues to fill the need for a comprehensive reference guide that the industry and regulators can use to minimize aboveground tank overfill incidents.

The second edition of PEI/RP600 has been reviewed and revised to provide better clarity to some provisions of the document. The 27-page document supersedes and replaces the previous edition of PEI/RP600. All comments solicited since 2011 and submitted by industry representatives were considered by the committee at its meeting earlier this year.

The recommended practices are the consensus recommendations of the PEI Aboveground Storage Tank Overfill Prevention Committee: Sonny Underwood (chairman), Mid-South Steel Products; John Albert, Missouri Department of Agriculture; Tracy Barth, MFA Oil Company; Chris Collura, JMP Solutions; Terry D. Cooper, Acterra Group; Brad Holmes, Clay & Bailey Mfg. Co.; Alfred Reid, Broward County Environmental Protection Department; Dana Schmidt, Steel Tank Institute; and Jeff Smith, Liquid Automation, LLC.

If you install, maintain, own, fill, regulate or manage aboveground storage tanks, you should have a copy of this publication. PEI/RP600-12 is copyrighted and may not be photocopied or otherwise reproduced. Learn more and order online ($40 for members; $95 for nonmembers) at www.pei.org/rp600.

INTERESTED IN LEARNING MORE ABOUT ELECTRIC VEHICLE CHARGING?
With gas prices climbing and new models arriving in showrooms, hybrid and electric cars have achieved their greatest share yet of the U.S. auto market. That, in turn, causes PEI members to think about potential opportunities to serve the market that refuels those vehicles.

RP600 Revised

Electric Vehicle Conferences

Oil Company News

PEI Member Notes

PEI and Industry News »

Respond to this Newsletter

by e-mail to the editor, Robert Renkes at rrenkes@pei.org

or join the discussion in the Petroleum Equipment Forum

to unsubscribe or change preferences see below.

There are three conferences with trade shows being held this spring/summer that are available to PEI members who want to know more about the market for electric car charging equipment.

26th International Electric Vehicle Symposium (EVS26) will be held May 6-9, 2012, at the L.A. Convention Center in Los Angeles, California. More than 160 exhibitors, 200 presenters and approximately 3,000 people are expected to attend this international event. The host organization is the Electric Drive Transportation Association. There is a charging/infrastructure educational track offered. Visit www.EVS26.org to register.
The Electric Vehicle Charging Station Conference provides a very unique opportunity to help equipment distributors understand what opportunities there are for the sale, distribution, installation and servicing of this equipment. Sponsored by the National Association of Electrical Distributors (NAED), the conference is scheduled for June 20-21, 2012, at the Hyatt Regency at DFW Airport, Dallas, Texas. The target audience includes distributors responsible for new market sales, energy specialists, contractors and end users. PEI members receive the NAED registration rate. Go to www.naed.org/EVCS to register.
Plug-In 2012 Conference & Exposition, organized by the Electric Power Research Institute, will take place July 23-26, 2012, at the Henry B. Gonzalez Convention Center in San Antonio, Texas. This is the organization's fifth annual conference, which includes a track on vehicle charging (infrastructure). PEI staff were among the 600 people who attended Plug-In last year. We were impressed by the information provided at the sessions and the 50 exhibitors. To register, visit www.plugin2012.com.

Consumers bought a record 52,000 gas-electric hybrids and all-electric cars in March, up from 34,000 during the same month last year. The two categories combined to make up 3.64 percent of total U.S. auto sales, their highest monthly market share ever, according to Ward's AutoInfoBank. And though their share of the market remains small, it's a big leap from the start of the year, when hybrids and electrics made up 2.38 percent of new car sales. It will be interesting to see if PEI members want a place at the electric vehicle refueling infrastructure table.

OIL COMPANY BRIEFS
Thorntons Inc., Louisville, Kentucky, announced last week that it will expand into the Florida regional metro market of Tampa-St. Petersburg-Clearwater. The first location is set to open in Spring 2013 in Clearwater. Thorntons' strategic plan for the region is to add 15 to 20 stores in the area over the next three years.
Chattahoochee Oil Company, Inc., headquartered in West Point, Georgia, has closed on its acquisition of Wilson Oil Company based in Auburn, Alabama. The combined company services more than 225 retail dealers and commercial, farming and industrial accounts, distributing motor fuel and oil products both on its own trucks and by common carrier.
Management company Aving Rice LLC has placed all 35 Jumpin Jimmy's convenience stores on the auction block. All the stores are located in central Illinois and offer gasoline to their customers. The sealed bid auction will conclude June 5.

PEI MEMBER NOTES
Petroleum Solutions, Inc. (PSI), McAllen, Texas, opened a branch office last month at 10935 US Highway 69 N, Tyler, Texas. Phone: (903) 535-9595.
IRPCO, Poca, West Virginia, has appointed Merthan Enterprises of Woodbury, Minnesota, to represent the company in Minnesota, Wisconsin, North Dakota and South Dakota.
Petroleum Solutions, Inc. has hired Neil Nix as branch manager, overseeing its office in San Antonio. Phone: (210) 661-2489.

DEATHS
Merv Carder, Sr., founder of M. Carder Industries in 1970, died March 24 in Fenton, Missouri. He began his career in the petroleum equipment industry in 1958 as a foreman at Husky Corp. He held many patents and was the co-inventor of the one-handed hold-open latch used on so many nozzles today. Merv left the company he founded to his children Merv Carder, Jr.; Kim Kaempfe; Randy Carder, Connie Gibbs and Chris Carder.

MEMBERSHIP APPLICATIONS
Manufacturer of valves and couplings for CNG fuel systems. Oasis Engineering Ltd., 129 Birch Avenue, Tauranga, New Zealand 3110, has applied for manufacturer division membership. Andy Cameron is managing director for the firm, which was established in 1982. The company manufactures high-pressure valves, couplings and manifold systems for the operation and control of CNG fuel systems. The equipment is sold through distributors. Sponsored for PEI membership by Manny Mandilaras, Kraus, Winnipeg, Manitoba. www.oasisngv.com
Connecticut installation and service company. Fuller Installations Inc., 9 Louis Street, North Haven, Connecticut 06473, has applied for service and construction division membership. Lee Fuller is president of the firm, which was established in 1965. The company specializes in the repair and maintenance of fuel dispensing equipment. Sponsored for PEI membership by Al Eichorn, PMPCorp, Avon, CT.

Manage Your Subscription

This newsletter is a member benefit of the Petroleum Equipment Institute. To unsubscribe by email click here or manage all your newsletter subscriptions online at www.pei.org/membersonly.

Do not reply to this message.
This newsletter is sent from an unattended mailbox.
To respond to this newsletter use these options.

PEI® and the PEI mark are registered trademarks
of the Petroleum Equipment Institute.
Copyright © 2012 All rights reserved.

Vol. 62, No. 8

Wed, 11 Apr 2012 06:00:00 GMT

April 11, 2012 | Vol. 62, No. 08

respond | preferences | login | unsubscribe

Dear PEI Member:

The U.S. Environmental Protection Agency (EPA) has approved the first applications for registration of ethanol for use in making E15. The approvals were granted to 20 companies, including ethanol giant Archer Daniels Midland Company, in 12 states. The registration of manufacturers of E15 brings the country another step closer toward the production, sale and use of E15 in gasoline-fueled cars and light trucks model year 2001 and newer.

The EPA registration approvals announced April 2 follow an extensive technical review required by law. While EPA is facilitating the use of E15, the agency is not requiring the use or sale of the fuel. EPA's press release states that "registration is a prerequisite to introducing E15 into the marketplace. Before it can be sold, manufacturers must first take additional measures to help ensure that retail stations and other gasoline distributors understand and implement labeling rules and other E15-related requirements."

Under current law, gasoline retailers may be held liable for customer misfueling. In addition, retailers that sell E15 must have the necessary equipment (tanks, piping, dispensers, hose, nozzles, etc.) that has been certified as compatible with E15.

To help remove the technical barriers to the widespread use of E15, on March 29 Senators John Hoeven, Roy Blunt, Amy Klobuchar, Mike Johanns and Mike Crapo introduced the Domestic Fuels Act of 2012 in the Senate. The proposed bipartisan legislation would provide misfueling protection for retailers who abide by EPA's E15 labeling requirements. The proposed legislation also would require the EPA Administrator to "promulgate, or if applicable revise, regulations setting standards for determining whether any underground storage tank, underground storage tank system, and associated dispensing equipment is compatible with any fuel or fuel additive that is authorized and registered...." The Senate bill goes on to provide that those regulations "shall include minimum standards and processes for certification by the Administrator, owner, operator, manufacturer, or any other entity identified by the Administrator to ensure compatibility." The bill provides that any equipment listed by a nationally recognized testing laboratory as compatible with a fuel is deemed compatible under the regulations.

Nine trade associations have sent letters to key members in the House and Senate in support of the proposed legislation. The bill enjoys a cross-section of support from the following groups: American Fuel & Petrochemical Manufacturers, American Petroleum Institute, Growth Energy, National Association of Convenience Stores, NATSO, OPEI, Petroleum Marketers Association of America, Renewable Fuels Association and SIGMA.

PEI CONVENTION AT THE NACS SHOW: REGISTRATION/HOUSING OPEN
Registration and housing are now open for the 2012 PEI Convention at the NACS Show. This year's convention is scheduled for October 7-10, 2012, in Las Vegas, Nevada. The trade show will be held October 8-10 at the Las Vegas Convention Center. Exhibitor booth space is sold out (waiting list has been established), ensuring another year of exciting new products and technologies on display that you don't want to miss.

EPA Registers E15 Manufacturers

Domestic Fuels
Act of 2012

PEI Convention Registration/Housing Open

John Hartmann

PEI and Industry News »

Respond to this Newsletter

by e-mail to the editor, Robert Renkes at rrenkes@pei.org

or join the discussion in the Petroleum Equipment Forum

to unsubscribe or change preferences see below.

Full registration includes admission to all educational sessions, all three days of the trade show, the PEI Industry Reception and the NACS Welcome Reception. The cost for early-bird registration is $295 for PEI and NACS members and $495 for nonmembers. Companies registering five or more for full registration qualify for an additional group registration discount. Spouses also qualify for group registration.

The PEI headquarters hotel is LVH―the Las Vegas Hotel & Casino (formerly the Las Vegas Hilton). PEI also has room blocks at Harrah's and Planet Hollywood Resort & Casino. Book early to take advantage of the greatest selection of rooms.

Visit www.pei.org/convention for full details on events, registration and housing options.

INDUSTRY NOTES
JohnDow Industries, Barberton, Ohio, has recently completed the asset purchase of Austin Engineering Inc., also of Barberton. The company acquired the Zip-Boot™ and Flex Protectors™ lines of products. JohnDow Industries is a manufacturer of automotive shop equipment and supplies.
Jerry Specht, construction manager at Northwest Petroleum Service, Inc., Wausau, Wisconsin, retired March 13 after 17 years with the company and 44 years in the petroleum industry.

CONVENIENCE STORE SALES TOPPED $680 BILLION IN 2011
Convenience store sales, both at the pump and inside the store, set new records in 2011, according to data released April 4 by NACS. While motor fuels revenues jumped 27.1 percent to $486.9 billion, gallons sold per store declined 0.4 percent compared to 2010. Motor fuels gross margins increased from 15.8 cents to 18.4 cents per gallon before expenses, but dipped on a percentage basis, falling from 5.64 percent to 5.23 percent. Overall, 71.4 percent of total sales were motor fuels, but motor fuels only accounted for 35.9 percent of profit dollars.

TRUCK STOP OPERATOR TO PAY $950,000 TO SETTLE ALLEGED UST VIOLATIONS
TravelCenters of America will pay $950,000 to resolve alleged violations of underground storage tank (UST) and hazardous waste laws at a truck stop in Coachella, California, under a settlement announced last month. Riverside County and state prosecutors had accused TravelCenters of multiple violations of UST laws, including failing to have adequate containment and detection equipment on the tanks, and tampering with or disabling sensors. Prosecutors also accused the company of not labeling and covering hazardous wastes as required by law and failing to train employees on safety procedures. TravelCenters did not admit any wrongdoing in the agreement.

DEATHS
John P. Hartmann, who served as president of PEI in 1979, died April 2 in Evanston, Illinois. He was 76. John was an accomplished educator and publisher in our industry. Hartmann Management Services published the acclaimed independent study course Technology of Underground Liquid Storage Systems in 1992 and the quarterly magazine Petroleum Equipment & Technology (PE&T) from 1996 to 2004. John served as a consultant in the '80s and '90s on three recommended practices published by PEI. He was also an active member of several NFPA committees where he was known as a man who stood by his convictions. Survivors include four sons (Steve, Tom, Joe and Frank), a daughter (Jeanne) and nine grandchildren.

MEMBERSHIP APPLICATIONS
Industrial hose coupling manufacturer. Anco International Inc., 19851 Cajon Boulevard, San Bernardino, California 92407, has applied for manufacturer division membership in PEI. Bill Hosier is vice president of the firm, which was established in 1978. The company manufactures industrial hose couplings used in the petroleum and mining industries. The couplings are sold through distributors. Sponsored for PEI membership by Jeff Berger, DaycoParkr, Springfield, MO. www.ancointernational.com
Portable fuel transfer and storage products manufacturer. JohnDow Industries, 151 Snyder Avenue, Barberton, Ohio 44203, has applied for manufacturer division membership. Mark Pfleeger is vice president sales and new business development for the firm, which was established in 1981. The company manufactures portable fuel transfer and storage products which are sold through distributors. Sponsored for PEI membership by Jeffrey D. Badgley, Reliable, Dayton, OH. www.johndow.com
Car wash chemical manufacturer. Ecolab, 370 Wabasha Street North, St. Paul, Minnesota 55102, has applied for affiliate division membership in PEI. Chad Barlett is senior marketing communications specialist for the company, which was established in 1960. The company provides car wash chemicals to support convenience stores with car wash operations. Sponsored for PEI membership by Gary Hirsh, NewWave, North Highlands, CA. www.ecolab.com
Microcomputer controller manufacturer for fuel dispensers. Wenzhou Blue Sky Electronic, No. 22 Juxin Road, JuGuang Yuan, Wenzhou, China 325029, has applied for affiliate division membership. Tim Zheng is in sales for the company, which was established in 1984. The company develops and manufactures microcomputer controllers for fuel and LPG dispensers. Sponsored for PEI membership by Betty Bao, AileOilEqp, Shanghai, China. www.chinarealtech.com
Colorado installation firm. Platt Rogers, 7076 South Alton Way G1, Centennial, Colorado 80112, has applied for service and construction division membership. Jason Grubb is president of the company, which was established in 2007. Platt Rogers installs petroleum equipment. Sponsored for PEI membership by Fred Seymour, J8EqpCo, Denver, CO.
Missouri service and installation company. H&E Group of Services, 751 Shadow Pine Drive, Fenton, Missouri 63026, has applied for service and construction division membership. Daniel D. Hanson is the primary contact for the company, which was established in 2004. The firm installs and services petroleum dispensing systems and total facility management for convenience stores. Sponsored for PEI membership by Scott Jones, JonesFrank, Raleigh, NC.
Oregon installation and service company. Pump Pipe & Tank Service, P. O. Box 146, Phoenix, Oregon 97540, has applied for service and construction division membership. Dean-A Croy is office assistant for the firm, which was established in 1986. The company cleans up contaminated soil, decommissions storage systems, installs and retrofits equipment, and performs cathodic protection and tightness testing. Sponsored for PEI membership by Mickey Meyer, MMSerEqp, Silver Grove, KY. www.pumppipetank.com
Puerto Rico compliance firm. T & T Environmental Solutions LLC, PMB 274 Western Auto Plaza, Suite 101, Trujillo Alto, Puerto Rico 00976, has applied for service and construction division membership in PEI. Jose A. Rosado is president of the firm, which was established in 2010. The company provides EPA compliance testing. Sponsored for PEI membership by Reed Leighton, Leighton, Colorado Springs, CO. www.ttenvironmentalsolutions.com

ADMITTED TO PEI

E.H. Wolf & Sons Inc., Slinger, WI (dis)
Phillips Fuel Systems Inc., Bridgeport, CT (mfr)
DainLevel Co., Ltd., Seoul, Korea (mfr)
Express Equipment, Inc., Conroe, TX (aff)
SoCal Compliance Services, Rancho Cucamonga, CA (S&C)
Absolute Tank Cleaning, St. Petersburg, FL (S&C)
PCE Petroleum Contractors Enterprise, Land O Lakes, FL (S&C)
Cox's Service Station Maintenance, Franklin, OH (S&C)

Manage Your Subscription

This newsletter is a member benefit of the Petroleum Equipment Institute. To unsubscribe by email click here or manage all your newsletter subscriptions online at www.pei.org/membersonly.

Do not reply to this message.
This newsletter is sent from an unattended mailbox.
To respond to this newsletter use these options.

PEI® and the PEI mark are registered trademarks
of the Petroleum Equipment Institute.
Copyright © 2012 All rights reserved.

Vol. 62, No. 7

Tue, 27 Mar 2012 06:00:00 GMT

March 27, 2012 | Vol. 62, No. 07

respond | preferences | login | unsubscribe

Dear PEI Member:

There has been a lot of talk recently about using domestically-produced compressed natural gas (CNG) to fuel cars and trucks.

Some argue that CNG will remain a fringe phenomenon for the foreseeable future. The high up-front cost of purchasing natural gas vehicles (NGVs), the lack of refueling stations, and the cost to outfit and install those refueling stations top the list of reasons why CNG-powered vehicles won't make major inroads in the U.S. market.

Indeed, there are some tough obstacles to overcome. While some companies and cities have incorporated NGVs into their fleets, so far only one manufacturer, Honda, sells a family automobile in the U.S. that runs on CNG. Honda's suggested retail price for the Honda Civic Natural Gas is $26,255, compared to $20,505 for the gasoline-powered Civic EX―the least expensive gasoline version of the Civic equipped with an automatic transmission. The federal government helped close that price gap beginning in 2005 by granting a tax credit of $4,000 to purchasers of the CNG-fueled Honda, but that credit expired on December 31, 2010. Steve Center, Honda's U.S. vice president for environmental business development, told Bloomberg News recently that Honda's goal is to sell 4,000 to 5,000 CNG vehicles annually, double the previous rate. (To help that along, Honda is installing CNG refueling stations at selected Honda dealers in California). The International Association for Natural Gas Vehicles notes on its website that there were 112,000 NGVs in the U.S. as of December 2010, ranking the U.S. 14th in the world in the number of CNG vehicles on the road―not exactly compelling numbers.

So, what has folks so excited about CNG-fueled vehicles? The answer is simple: Fuel prices. The average retail price of gasoline has increased more than three-fold in the last 10 years. A gallon of gasoline cost $1.18 in 2002. Right now, Americans pay an average of $3.90 for the same gallon of gasoline. With demand for oil in emerging markets expected to maintain its upward trend, even higher prices are likely to result in the future. Natural gas is cleaner, cheaper than gasoline and it is domestically available. To an increasing number of companies, it deserves a look―or, in some cases, another look.

Chesapeake Energy, the second largest producer of natural gas in the U.S., has been one of the biggest champions of NGVs. Chesapeake announced earlier this month that it will work with General Electric (GE) to promote the CNG and LNG (liquefied natural gas) infrastructure. Chesapeake and GE will deploy more than 250 of GE's ecomagination™-qualified "CNG In A Box™" fueling systems across the U.S. through 2015. CNG In A Box takes natural gas from a pipeline and compresses it on-site at an industrial location or at a traditional automotive refueling station to turn it into CNG.

Prospects for CNG Refueling Stations

EPA Approves E15 Mitigation Plan

PEI Scholarship Program Deadline: March 31

RP1200 Comment Period Ends

PEI and Industry News »

Respond to this Newsletter

by e-mail to the editor, Robert Renkes at rrenkes@pei.org

or join the discussion in the Petroleum Equipment Forum

to unsubscribe or change preferences see below.

In addition to divulging that it has already spent nearly $4 million with Love's and OnCue to build 40 new CNG stations in Oklahoma, Chesapeake identified the following petroleum marketers and grocery store chains that soon will be offering CNG: Valero, Murphy USA, Stripes, Gulf, Kroger, QuikTrip, 7-Eleven, Kum & Go, Meijer, GetGo from Giant Eagle, Wawa, Sheetz, Lehigh Gas and Dandy Mini Mart. Chesapeake also stated it expects that Clean Energy's Natural Gas Highway will be able to offer LNG truck fueling coast-to-coast and border-to-border by 2013.

The automakers seem to be stepping up the pace as well. Chrysler said earlier this month that its new Ram 2500 Heavy Duty CNG truck will be sold to commercial customers that operate truck fleets. The truck will have natural gas tanks and an 8-gallon fuel tank for gasoline. Chrysler said a small amount of gasoline is needed to start the truck but, after ignition, it runs entirely on natural gas. If the natural gas tanks run out, the engine can switch to gasoline. The company expects to deliver the first trucks in July.

Other automakers are moving into the natural gas market. The day before the Chrysler announcement, General Motors said it would release two 2013-model pickup trucks powered in part by natural gas. The company said it would start taking orders in April for the natural gas-powered 2013 Chevrolet Silverado and GMC Sierra 2500 HD. GM expects to ship these vehicles toward the end of this year. The trucks will be available to both commercial fleet operators and retail customers. Mercedes-Benz and Fiat are said to be keeping an eye on the U.S. to see to what extent the market welcomes NGVs.

Interest in CNG vehicles and stations is on the uptick. We'd like to hear from you about how you think it will shake out. Respond to rrenkes@pei.org with your comments.

EPA APPROVES E15 MITIGATION PLAN
The U.S. Environmental Protection Agency (EPA) issued its approval on March 15 of a Misfueling Mitigation Plan submitted by the Renewable Fuels Association (RFA), bringing the fuel a step closer to being offered to the public. Individual ethanol producers can use the plan when applying to EPA to register their fuels. Many states still have regulatory issues that prevent E15 from being sold, but the RFA suggested that several states―specifically Iowa, Illinois and Kansas―have resolved these issues and are expected to be the first to introduce E15 to consumers. Many gasoline retailers maintain that liability and equipment compatibility concerns will prevent them from marketing E15 until those issues are resolved.

PEI CONVENTION AT THE NACS SHOW 2012
Registration and housing for the 2012 PEI Convention at the NACS Show will open April 2. The event will be held October 7-10 in Las Vegas, at the Las Vegas Convention Center. The PEI headquarters hotel is the newly named LVH (Las Vegas Hotel and Casino), formerly the Las Vegas Hilton. It will be the hub for several PEI events, such as the Young Executives Roundtables and Reception, and the PEI After-Hours Lounge, where PEI members gather after the trade show closes. PEI also has room blocks at Harrah's and Planet Hollywood Resort & Casino.

Exhibit space in the Petroleum Equipment & Services area is going fast, with only 53 booths remaining. Contact Bob Young to discuss exhibit opportunities at byoung@pei.org or 918-236-3966.

The PEI Board of Directors will meet next month, at which time convention sessions proposed by the PEI Education and Convention Committee will be finalized. Click to view a tentative schedule of events. More to come on this as session topics and speakers are confirmed.

Early registrants receive deep discounts. Full early-bird registration is $295 for members and $495 for nonmembers. This includes admission to the education sessions, all three days of the trade show, the PEI Industry Reception and the NACS Welcome Reception. Companies that register five or more employees are eligible for group discounts.

Be ready to register and make your hotel reservations on April 2 to enjoy the greatest savings and selection of hotel options.

STATE ETHANOL NEWS
South Dakota has awarded 80 percent of the grant money ($755,000) set aside to help gasoline station owners install 44 blender pumps at 21 locations in the state. The state's grant program, overseen by the Governor's Office of Economic Development, pays station owners up to $25,000 for the first pump and $10,000 for each pump thereafter. The first round of grants was awarded on a first-come, first-served basis. The rest of the money―$3.5 million during the next five years―will be awarded competitively. The state is taking applications until April 30.
Tom Vilsack warned members of the Renewable Fuels Association that there continues to be a strong need to defend the Renewable Fuels Standard (RFS) mandates on ethanol, as well as to build a broader market for the fuel and to invest in innovative emerging technologies. Vilsack said he sees the ethanol industry as "the platform for our transition to producing more advanced biofuels." He said EPA's decision on E15 is important but maintaining the RFS is a greater priority, citing oil company efforts to modify or eliminate the federal mandate.―Kansas Grain & Feed Association Federal News Friday newsletter, March 9, 2012, reporting on Secretary of Agriculture Tom Vilsack's remarks last month to the RFA's National Ethanol Conference.

PEI FOUNDATION SCHOLARSHIP APPLICATION DEADLINE MARCH 31
The application period for the 2012-2013 PEI Foundation Charles D. Kemp Scholarships closes March 31. Scholarship recipients are selected based on academic achievement, leadership, character, financial need, and the applicant's intent to contribute to the future of the petroleum and energy handling industry.

To be eligible, an applicant must be a dependent of a full-time employee of a PEI member company in the Distributor, Manufacturer, Service & Construction or Affiliate Division. Applicants must be incoming freshmen at an accredited four-year college or university intending to major in business, engineering, distribution studies or a similar field. The scholarship awards are $1,000 each. To review the scholarship guidelines and complete an application, please visit www.pei.org/foundation.

PEI RP1200 COMMENT PERIOD ENDS
The public comment period for suggested changes to PEI's Recommended Practices for the Testing and Verification of Spill, Overfill, Leak Detection and Secondary Containment Equipment at UST Facilities closed yesterday. In all, 255 comments were received from tank owners, regulators, equipment manufacturers, testing companies and consultants. The committee responsible for writing the document will meet April 24-26 to begin its review of the comments. Publication of the recommended practice is expected sometime late this summer.

REGULATORY BRIEFS
Connecticut. SB 375, a bill that would phase out the state fund and state assurance for reimbursement for costs associated with a release from an underground storage tank, was the subject of a hearing of the General Assembly's Environment Committee on March 16. So many people turned out for the legislative hearing that an overflow room was opened so people could listen to the proceedings. The Connecticut Petroleum Association spoke out strongly against the proposed legislation.
North Carolina. The state's Gasoline and Oil Inspection Board has approved changes to rules governing the way ethanol and other oxygenated gasoline blends can be labeled. Under the proposed changes, gasoline containing 10 percent or less by volume of ethanol would be required to include a label that states "may contain up to 10 percent ethanol" or similar wording. For blends containing between 10 and 15 percent ethanol, the label would state "contains up to 15 percent ethanol" or similar wording. Any blend containing between 15 and 85 percent ethanol would be required to include a label stating the exact volume percentage of ethanol. E85 blends are not affected by the changes. The rules now go before the North Carolina Rules Review Commission.

APPOINTMENTS AND PROMOTIONS
ZCL Composites Inc. has announced that Ron Bachmeier will assume the role of president and CEO of the company effective August 8, 2012. He has been with ZCL and Xerxes since 1986 and is currently ZCL's chief operating officer. Bachmeier will replace Rod Graham who earlier recommended to ZCL's Board of Directors that it was time to begin a transition to a new, permanent CEO.
The Steel Tank Institute/Steel Plate Fabricators Association (STI/SPFA), Lake Zurich, Illinois, has promoted Marie Scimeca to manager of meetings and Noël Zak to manager of membership and communications.
OPW Fueling Components, A Dover Company, Hamilton, Ohio, has named Brandon Grote district manager responsible for sales activities in Ohio, Michigan, Indiana and Kentucky. In addition to his role as district manager, he will be utilized as a product specialist in dispensing products for key accounts and markets. Grote joined OPW in 2000.

INDUSTRY NOTES
Source North America Corporation, Addison, Illinois, has added a new division to the company: the SOLUTIONS Design Group. The new division will support customers and sales staff with expertise on fueling systems, piping layout and design, compliance and regulatory issues. James V. Gaszynski is director of the SOLUTIONS Design Group.
Casey's General Stores Inc., Ankeny, Iowa, announced March 15 that it will break ground this month on its first site in Kentucky and will likely move into Tennessee before the end of the year.
Sobeys, Stellarton, Nova Scotia, has completed the purchase of 236 Shell retail gasoline locations and related convenience store operations in Quebec and Atlantic Canada.

MEMBERSHIP APPLICATIONS
Missouri distributor. Greenlight Solutions, LLC, P. O. Box 101, West Alton, Missouri 63386, has applied for distributor division membership. Ron Fink is operations manager for the firm, which was established in 2006. The company sells, installs, repairs and maintains petroleum marketing equipment. Greenlight represents Bennett, HuskyCorp, LSI, PtrParts, RDMElec and VeriFone. Sponsored for PEI membership by Richard H. Long, RDMElec, Nebo, NC.
CNG fueling equipment designer. ANGI Energy Systems, LLC, 15 Plumb Street, Milton, Wisconsin 53563, has applied for affiliate division membership. Katrina Bell is the marketing coordinator for the company, which was established in 1983. The company designs, engineers and installs CNG fueling equipment systems. Sponsored for PEI membership by David Crouse, OPW-FC, Hamilton, OH. www.angienergy.com
Diesel fuel storage tank cleaning firm. Deposit Control Systems, Inc., 4 Green Mountain Drive, Cohoes, New York 12047, has applied for affiliate division membership. Tom Myers is president of the firm, which was established in 1996. The company cleans fuel storage tanks and provides other technical services. Sponsored for PEI membership by Patricia George, AlgaeXIntl, Fort Myers, FL. www.dcsbg.com
Third party repair depot firm. United Technologies, 3270 Fowler Street, Suite 11, Fort Myers, Florida 33901, has applied for affiliate division membership in PEI. Thomas K. Tabor is vice president of sales and marketing for the firm, which was established in 2005. Sponsored for PEI membership by Suzanne Johnson, JohnsonFL, Riverview, FL. www.unitedtechnologiesinc.com
Media dispenser display unit provider. Outsite Networks, Inc., 2551 Eltham Avenue, Suite N, Norfolk, Virginia 23513, has applied for affiliate division membership. Cindy Gould is operations manager for the firm, which was established in 1998. The company provides loyalty/marketing equipment and services for the convenience store industry. Sponsored for PEI membership by Charles B. Hubbard, OilEqSS-VA, Chesapeake, VA. www.outsitenetworks.com
Ohio service and installation contactor. S. M. Miller Construction Co. Inc., 5755 Beatty Road, Grove City, Ohio 43123, has applied for service and construction division membership. Steve Miller is vice president of the company, which was established in 1991. The firm is a convenience store contractor. Sponsored for PEI membership by William R. Patrick, X-FPtrEqp, Columbus, OH. www.gosmmco.com

ADMITTED TO PEI

Fluid Solutions LLC, Birmingham, AL (dis)
GN Services, LLC, Spring, TX (S&C)
Russell Barton, Browning Oil Company, Bowling Green, KY (O&E)
Mike Wilson, The Pantry Inc., Sanford, NC (O&E)

Manage Your Subscription

This newsletter is a member benefit of the Petroleum Equipment Institute. To unsubscribe by email click here or manage all your newsletter subscriptions online at www.pei.org/membersonly.

Do not reply to this message.
This newsletter is sent from an unattended mailbox.
To respond to this newsletter use these options.

Vol. 62, No. 6

Tue, 06 Mar 2012 06:00:00 GMT

March 6, 2012 | Vol. 62, No. 06

respond | preferences | login | unsubscribe

Dear PEI Member:

We had the unique opportunity to meet with more than 200 members and their customers in February at various industry meetings, including annual conventions sponsored by the Western Petroleum Marketers Association (WPMA), Petroleum and Convenience-Store Exposition of Mid-America (PACE) and the Southeast Petro-Food Marketing Expo (SE Petro). Based on what they told us, here's our take on the prospects for the rest of the year―and a little beyond.

Members and their retail customers are more bullish on the prospects for the industry than at any time since the recession began in late 2007. In fact, only one member―a distributor in the Southeast―even mentioned the word "recession" in conversation. We were surprised to find out that 2011 was the best year in a decade for a few manufacturers. More than a handful of distributors, rep firms and service contractors also mentioned that they climbed out of the economic doldrums last year and posted excellent sales and profit numbers. Over half of the manufacturers we met with have added to and/or bolstered their product offerings during the past 12 months.

The rising sea evidently has not lifted all ships. Except for a few bright spots here and there, California is still in the toilet and Florida's petroleum marketers may just now be finished licking their wounds after experiencing longer-than-expected post-tank-replacement syndrome. New convenience store entrants into the Florida and Carolina markets should help business in the Southeast.

Although the regulations concerning diesel exhaust fluid (DEF) went into effect in January of 2010, indications are that a tipping point has been reached, in both the commercial and retail sectors of the industry. The movement from jugs to mini-bulk to bulk―particularly underground―solutions has accelerated as more trucks and diesel-fueled automobiles require DEF. And the prospects for DEF storage and dispensing business only improve as time goes on.

There is a buzz in the industry about compressed natural gas (CNG) refueling. We could go on and on recounting what members told us about CNG fueling prospects while attending PEI's CNG Fueling Station Design & Construction Course February 23-24 in Las Vegas, but we will resist the urge. Suffice to say, as soaring gasoline and diesel fuel prices continue to make headlines, and CNG retail prices average just $2.39 per gasoline gallon equivalent, CNG as a way to power truck fleets―and passenger vehicles?―must be considered. By the way, PEI's May CNG Fueling Station Design & Construction Courses in Chicago and Baltimore are sold out.

Business Conditions

Acquisitions

PEI's RP1200

More Industry News »

Respond to this Newsletter

by e-mail to the editor, Robert Renkes at rrenkes@pei.org

or join the discussion in the Petroleum Equipment Forum

to unsubscribe or change preferences see below.

E15 is the industry's 900-pound gorilla. As we said in the last TulsaLetter, E15 is a subject that significantly complicates the lives of petroleum marketers everywhere. They don't want to think about it, much less plan for it. PEI distributors tell us that going through the hassle and expense of equipping a station to handle E15 is NOT a subject of discussion with their customers at this time. Liability issues still have to be resolved, and marketers must be convinced that they can make money selling the product before E15 can be sold. With the price of oil up and the price of ethanol down, E15 may be more economically attractive than before. Ultimately it may not be the price of ethanol, but the value of the RIN (renewable identification number) that will incentivize marketers to go with E15. Time will tell.

Other takeaways from our conversations:

There are finally some new stations being built after years of almost no new retail construction. Some petroleum marketers are responding to their competition, while others are seeking new markets.
Retail fuel margins were great in 2011. Higher-than-normal margins and the availability of cheap capital to credit-worthy borrowers should drive more consolidation on the retail side in 2012.
The service side of the industry is good to very good―but not great―for most service contractors. The recent PCI upgrades are still under normal or extended warranty, hurting parts sales. Some marketers, reluctant to turn loose of their money, are still bagging nozzles rather than fixing their dispensers. But old equipment continues to age and stations must remain operational to attract customers to shop inside the store, so the service end of the business continues to be a consistent bright spot for most PEI contractors.
Past due accounts are making life tough on everyone. Manufacturers tell us that they have not seen their accounts receivable this bad for decades. Equipment distributors are being strung out by everyone―service firms, installation contractors and end-users.
PEI members in California are mildly optimistic about the prospects for outfitting and building hydrogen stations as new rules passed by the California Air Resources Board (CARB) mandate that 15 percent of new cars sold in the state by 2025 run with zero emissions or near-zero emissions. The result would be some 14 million electric, plug-in hybrid and hydrogen cars on California roads within 13 years. Today, 10,000 such vehicles operate in the state.
Sales and installation of equipment to commercial and manufacturing accounts have increased and continue to command higher gross margins.

BUSINESS ACQUISITIONS
ACCENT Environmental Services, Inc., Lufkin, Texas, has purchased the assets of Sumney Pump, Beaumont, Texas. Steve Stokes and Donis Robison will co-manage the Beaumont facility for all UST work under the ACCENT brand.
Global Partners, a publicly traded master limited partnership based in Waltham, Massachusetts, has completed the previously announced acquisition of Alliance Energy LLC. Alliance's portfolio includes approximately 540 gasoline stations in New England, New York, New Jersey and Pennsylvania. Alliance owns or has long-term leases on approximately 253 sites and has supply contracts for the remaining stations.
Carroll Fuel Company, Baltimore, Maryland, has acquired High's of Baltimore, which directly operates 48 High's Dairy Stores in Maryland.

EPA RESPONDS TO QUESTIONS ABOUT PEI'S RP1200
Carolyn Hoskinson, Director of EPA's Office of Underground Storage Tanks (OUST), emailed underground storage tank stakeholders March 1 to update them on OUSTs activities on the proposed changes to the UST regulations. She commented that OUST had received "a number of questions" about PEI's Recommended Practices for the Testing and Verification of Spill, Overfill, Leak Detection and Secondary Containment at UST Facilities (PEI/RP1200). "When final," Hoskinson wrote, "RP1200 could be used to comply with some of the requirements in EPA's proposal."

DEATHS
John A. Savage III, founder of Savage Associates, Inc., Watchung, New Jersey, died March 3 at his home in North Wales, United Kingdom. He was 99. In 1948 he designed for Shell Oil the first petroleum bottom loading system that standardized the sequence of operation currently used worldwide. In 1976 he marketed and installed the first activated carbon absorption system for gasoline vapor processing at marketing terminals, a standard now used throughout the world. Savage Associates is led today by his sons, Brian and Greg, and grandsons, Mark and Ben.

Manage Your Subscription

This newsletter is a member benefit of the Petroleum Equipment Institute. To unsubscribe by email click here or manage all your newsletter subscriptions online at www.pei.org/membersonly.

Do not reply to this message.
This newsletter is sent from an unattended mailbox.
To respond to this newsletter use these options.