March 24, 1998

Dear PEI Member:

There were 337 of us in St. Louis earlier this month for PEI’s Petroleum Equipment Service Managers Conference. The feedback we received from the conference evaluations confirmed that it was one of the best educational programs we have presented in some time. By the morning coffee break on the first day of the two-day program, members were telling us the conference had already paid for itself.

It was obvious even before we left Tulsa that enthusiasm and support for the conference was high. During our planning sessions last year, we scheduled two promotional mailings and hoped to have between 125 and 150 people attend. When we hit 150 three weeks before the conference, we canceled the second mailing and scrambled to find suitable meeting space to accommodate the larger crowd. Although we were able to move into somewhat larger rooms, the general sessions were still shoulder-to-shoulder and the roundtables cramped and noisy. Nevertheless, the service managers understood the situation and made the best of it.

We covered an amazing amount of material over the weekend. Presentations were made on promoting the service department, interpersonal relations, and hiring techniques. The more popular roundtable discussion topics included improving service productivity and efficiency, service excellence, the value of a customer, service technician administrative paperwork, bill- able hours formulas, motivating employees, reporting and regulating truck inventory, and service truck policies. Attendees told us the most gratifying aspect of the conference was that it provided service managers a forum to exchange ideas and share common problems. Some were frustrated that all the problems didn’t get solved in St. Louis, but at least it was a step in the right direction.

This was a conference designed by service managers for service managers. That’s probably why it went so well. The entire conference was planned by five individuals who began working last May with PEI staff over the telephone to develop topics and a format that worked best with a large group of service managers. The planning committee members were Susan Allen, Southern Petroleum Systems, Orlando, FL; Mandy Hill, Franzen-Hill Corporation, Tulare, CA; John C. Keller, Jr., Station Equipment & Maintenance,

Victoria, TX; Bob Mathews, Northwest Pump & Equipment Company, Portland, OR; and Ben J. Stallings, Double Check/Tri-State, Kansas City, MO.

A special word of thanks also goes to our corporate sponsors. Not only did they provide financial assistance to help keep costs as low as possible, they also joined in at the roundtables and generally contributed to the overall success of the conference. The sponsors were Central Illinois Manufacturing Company, Champion Laboratories, Computer Processing, ESCO Services Inc., Gilbarco Inc., Husky Corporation, PMP Corporation, RDM Industrial Electronics, Tronitec, and Wayne Division, Dresser Industries.

EPA’s Office of Underground Storage Tanks (OUST) is developing a series of fact sheets on methyl tertiary butyl ether (MTBE) and has just published the first three fact sheets of the series. The first fact sheet provides an overview of MTBE and MTBE issues; the second discusses remediation of MTBE-contaminated soil and groundwater; and the third discusses the use and distribution of MTBE and ethanol. If you want copies of these fact sheets, you may order them from NCEPI, EPA’s publications center, by calling (800) 490-9198. You can also download the fact sheets from OUST’s Web site at www.epa.gov/OUST/mtbe/.

EPA projects that the remaining fact sheets in the series will discuss health effects, analytical methods, state surveys of MTBE experience, and other ethers. EPA expects the next fact sheets in the series to be completed by late spring. Once all the fact sheets are available, they will be issued as one publication. We will let you know when they are available.

Massachusetts. Owners and operators of underground storage tanks may be able to recover expenses incurred as the result of taking response actions or paying third party claims, the Department of Revenue announced last month. The announcement was in response to a new rule that amended 503 CMR 2.00 by adding procedures for reopening the underground storage tanks petroleum product cleanup fund to owners and operators of UST systems. For more information, contact William Alpine of the DOR Underground Storage Tank Program at (617) 727-8500.

Ohio. The Bureau of Underground Storage Tank Regulations (BUSTR) now regards statistical inventory reconciliation (SIR) as an acceptable method of leak detection, provided the SIR user applies and receives approval from the BUSTR bureau chief prior to using SIR as a release detection method. BUSTR has issued a five-page compliance guidance document that will be used to evaluate SIR methods from this point on. For a copy, fax PEI your request for "BUSTR SIR Compliance Document."

A final federal rule that would require training and periodic evaluation of employees who operate forklifts and other industrial trucks will be published this spring, according to a letter from OSHA Administrator Charles N. Jeffress to Rep. Thomas E. Petri (R-WI). The rule is expected to apply to general industry, maritime and construction employers.

Rep. John Ensign (R-NV) has introduced a bill in the House of Representatives (H.R.3376) that would provide tax incentives for the use of natural gas-derived fuels for vehicles. The bill would provide a 50¢ federal income tax credit for the purchase of each gasoline gallon equivalent of methanol, propane, or compressed or liquefied natural gas used as a fuel in vehicles placed in service after December 31, 1997. The tax credit would expire December 31, 2004. The bill will be referred to the House Committee on Ways and Means.

INDUSTRY NOTES

Eaton Metal Products, Co., Denver, Colorado, has formed a subsidiary: Eaton Sales & Service. Officers of the subsidiary include Douglas E. Kimball (president), Kirby A. Boutelle (general manager administration), and Kenneth Korneychuk (general manager operations). Eaton Sales & Service provides sales, service and installation of petroleum equipment in Albuquerque, NM; Casper, WY; Colorado Springs, CO; Denver, CO; Grand Junction, CO; Phoenix, AZ; and Salt Lake City, UT. Announcement of the formation of the subsidiary was made by Timothy J. Travis, president and CEO of Eaton Metal Products Company.

Plasteel International Inc., headquartered in Escondido, California, has licensed the partnership of Tecnoeco Andina and Taller El Retoño C.A., Barquisimeto, Estado Lara, Venezuela, to manufacture Plasteel® tanks in Venezuela.

Jack Pittman & Associates has moved its office from Stone Mountain to 1263 Beaver Ruin Road, Norcross, Georgia 30093. Phone: (770) 638-9555. Fax: (770) 638-8995.

OIL COMPANIES AND CAR MAKERS ANNOUNCE STRATEGIC ALLIANCES ON FUELS, VEHICLES

General Motors Corp. and Amoco Corp. announced a joint development program last month that is designed to produce a new generation of cleaner burning, high mileage diesel vehicles. The joint technical venture will require the two partners to develop an advanced diesel combustion engine and a compatible fuel system. Under the program, GM will create a line of hybrid vehicles that can run on diesel or electric power, while Amoco develops cleaner burning diesel fuels.

Ford Motor Co. and Mobil Corp. announced a strategic alliance this month to speed the development and integration of new fuel and vehicle technologies. The creation of a broader market for vehicles powered by natural gas and other alternative fuels is envisioned by the companies. The longer-term project focuses on the technology needed to develop a commercially viable compact fuel processor for fuel cell-powered vehicles. The processor would extract hydrogen from hydrocarbon-based fuels such as gasoline and diesel, which would be converted by the fuel cell to generate electric power to drive the vehicle.

The Texas Natural Resources Conservation Commission will conduct free workshops in April on 1998 UST compliance issues. Workshops will be held in Brownwood, Big Spring, Lubbock, Amarillo, Wichita Falls, Gatesville, Beeville, Laredo, Del Rio, La Grange, Waco, Plano, Paris, Longview and Palestine. Contact the state PST Technical Services Section at (512) 239-6718.

The California State Water Resources Control Board is sponsoring its annual underground storage tank conference April 7-9, 1998, at the Los Angeles Airport Marriott Hotel. To register, contact the CSUS Business Services Bureau at http://www.csus.edu/bsb. Telephone: (916) 278-4960 or (800) 858-7743. Fax: (916) 278-4865.

SCS Engineers is holding two workshops in Virginia next month on the UST upgrade requirements. The seminars will be held April 20 in Virginia Beach and April 22 in Tyson’s Corner. Contact Todd Hansen for more details. Telephone: (703) 471-6150. E-mail: thansen@scseng.com.

BUSINESS NOTES

Gasoline deliveries for January were up nearly 6 percent from last January, according to the American Petroleum Institute’s Monthly Statistical Report. The month’s warm weather made for unusually favorable driving conditions in a number of major gasoline-consuming regions of the United States. Distillate, on the other hand, dropped 3.6 percent from last January because of reduced heating demand, despite continued strong growth in highway diesel demand driven by healthy economic growth, reported API.

Online retail sales are projected to reach $17 billion by 2001, up from $2.4 billion last year, according to Forrester Research Inc.

A nationwide survey by Environmental Information Ltd. (EI) of Minneapolis, Minnesota, shows a 26 percent decline in professional environmental service firms from 1994 to 1996. "Not only have there been no new markets" EI senior analyst Cary Perket said, "but regulatory reform efforts have erased expected demand from past environmental legislation and regulations." The company estimates that the use of risk-based analysis of underground storage tanks decreased the market by $9.4 billion from what was originally anticipated.

Members of PEI’s manufacturer division have reserved 198 of the 686 booths available for Convex 98 in Indianapolis, Indiana. The most current list of members who have reserved space can be found under the Convex 98 link at PEI’s web site: www.pei.org.

Applications for exhibit space must be received at PEI by 5:00 p.m., CST, April 3, in order to receive the benefit of accrued priority points. Booth applications received after the deadline will be assigned on a space available basis without benefit of priority point standing. Applications must be accompanied by 50 percent of the total space charge. Faxed applications will be accepted only if payment is by credit card.

DEATHS

Ruth Ball, owner and president of Jay Ball Equipment Co., Inc., Dallas, Texas, passed away January 28, 1998, at the age of 77. She was preceded in death by her husband, Harold Jay Ball and son, Ronald Jay Ball. Survivors include her daughter, Susan Bush; five brothers and three sisters.

LATIN AMERICA OIL COMPANY UPDATE

• Shell announced March 4 that it plans to open 100 service stations in Venezuela by the end of the year. All of the Shell stations will be on existing station sites, but half of them will be completely rebuilt.
• ESSO will build an average of five new stations a month in Brazil. All will be located in major cities other than Rio de Janeiro and Sao Paulo.
• Ipiranga Atlantic will open 100 new stations this year in Brazil, all equipped with four islands and a car wash.
• Terpel will open around 70 new stations this year throughout Colombia.
• Pemex will open 300 new stations in Mexico in 1998, despite forecasting a $2.3 billion loss due to a drop in crude oil prices. Mexico’s economy is expected to grow nearly five percent this year.

PROMOTIONS AND APPOINTMENTS

David L. Kaehler, Gilbarco’s manager of engineering since 1990, has been promoted to president of Gilbarco, North America. Mark Snowberger, who had served as president, will now manage the company’s interests in China. Peter Jackson has replaced Kaehler as manager of engineering.

Arning Engineered Canopy Systems, Inc., Cassville, Missouri, has appointed Doug Adams & Associates to represent its line of canopy systems, building facias and related products in the Texas, Arkansas, Louisiana, Mississippi and Oklahoma markets.

Jack Pittman & Associates has appointed Eric Lockhart to replace Charlie Swann as its representative in Tennessee and Kentucky.

The Wayne Division of Dresser Industries has announced two additions to its sales department. James A. McCormick has been named director of sales, with responsibility for all U.S. sales of Dresser Wayne products. Brian Farrell is now Shell national account manager. Both McCormick and Farrell came to Dresser Wayne from First Data Oil Services, a division of First Data Corp.

American Petroleum Equipment & Construction, Inc., with corporate headquarters in Birmingham, Alabama, has hired Vince Ray as sales representative for its Silverhill (Mobile, Alabama) office.

Steeltec Manufacturing Inc., Marietta, Georgia, has promoted Jim Hobson to national sales manager. He will be responsible for the company’s direct salespeople, major accounts and the marketing department. The firm has hired Doug McNeil as region manager for Georgia, Alabama, South Carolina, North Carolina and eastern Tennessee. He will oversee all business activities in this region from his Marietta, Georgia, office.

Fairfield Industries, Inc., Fairfield, New Jersey, has appointed J.U.R. of Blue Jay, California, to market its complete product line in California, Arizona and Nevada.

Veeder-Root Company, Simsbury, Connecticut, has announced new Simplicity Petroleum Data Services staff. John Dion is director of operations. Antonio Mancini and Greg Sears will serve as product managers.

Shannon & Associates, Charlotte, North Carolina, has hired Jayson McDowell to represent the company in North Carolina. His address is 609 Westwood Drive, Reidsville, North Carolina 27320. Phone: (336) 634-0714.

7-ELEVEN ACQUIRES RETAILER AND ANNOUNCES COMMITMENT TO GROW

The Southland Corporation announced the signing of a definitive agreement with MDK Corporation of Goshen, Indiana, to acquire 23 red D mart convenience stores in the South Bend, Indiana, area. The transaction is scheduled to close within the next few months. Terms were not disclosed. The acquisition not only strengthens the 7-Eleven presence in northern Indiana, but "also reinforces, along with the significant number of new stores we plan to build this year, our commitment to once again grow 7-Eleven’s store base," said Southland president and CEO Clark Matthews.

Custom cable and scanner manufacturer. Penstock ECR, 8313 S.W. Cirrus Drive, Beaverton, Oregon 97008, has applied for manufacturer division membership. Toby Jensen is sales manager for the firm, which was established in 1984. Penstock ECR manufactures custom cables used for connecting bar code scanners and custom scanner stands which are sold through PEI distributors. Nominated for PEI membership by Philip W. Cruzen, CruzenEqp, Memphis, TN; Coles Marsh, JCVinc, Hughesville, MD;and Kendall H. Johnson, LjohnsEqp, Denver, CO.

Dispensing pump manufacturer. Baransay Akaryakit Pompalari Mak. San. Ltd. Sti., Dereboyu Cad., Isik Sok., No. 2, Ortakoy, Istanbul, Turkey 80840, has applied for manufacturer division membership. Huseyin Baran is president of the firm, which was established in 1985. Baransay manufactures electronic and mechanical fuel dispensing pumps, fuel pumps for trucks, and station accessories. These products are sold through distributors. Nominated for PEI membership by Lars Haglund, Kunsgors, Kunsgor, Sweden; Francis Dubernard, Lafon, Bordeaux, France; and Wolfgang Pein, Tankanlagn, Salzkotten, Germany.

California installation contractor. Station Maintenance Company, Inc., 153 South 7th Avenue, La Puente, California 91746, has applied for affiliate division membership. Sylvia Thompson is office manager for the firm, which was established in 1956. Nominated for PEI membership by Jerry A. Thomas, CEThomasCo, Gardena, CA; Al Goe, GRWEqp, Paramount, CA; and John C. Miller, OrangePtEq, Orange, CA.

Washington manufacturers representative. R & D Marketing, Inc., 22516 S.E. 64th Place, Suite 220, Issaquah, Washington 98027, has applied for affiliate division membership. Don Cartlidge is president of the firm, which was established in 1995. R & D Marketing represents Petro Vend Inc. in the western portion of the United States and Canada. Nominated for PEI membership by Gregg Miller, NWPump, Portland, OR; Ross D. Thomson, PatronEqp, Calgary, AB; and B. A. Scowley, ShldsHarpr, Oakland, CA.

Tank licensor. Titan Tank Company of Florida, Inc., P. O. Box 290873, Tampa, Florida 33687, has applied for affiliate division membership. David T. Palazzo is president of the firm, which was established in 1996. Titan Tank Company of Florida is the worldwide licensor of the Titan Tank. Nominated for PEI membership by Maurice J. Hubbard, J&MPumpSer, Fort Myers, FL; Robert N. Miller, MillerInd, Hialeah, FL; and Joel M. Samon, NorsSamon, St. Petersburg, FL.

ABB Fuel Tech, Brovadvej 56, Bygn. A, Fredericia, 7000 Denmark, has requested that its PEI membership be transferred from the affiliate division to the distributor division. The firm represents Gasboy, Tokheim, Total-Cntmt, EW, FT and TOT. The transfer is sponsored by Michael Panyard, Tokheim, Fort Wayne, Indiana, and Randy Braun, TotalCntmt, Oaks, Pennsylvania.