Dear PEI Member:

Last summer, PEI and five other trade associations developed a comprehensive survey on underground storage tank (UST) enforcement issues. PEI mailed that survey to all state and territorial UST program managers on August 10, 1998. By November, PEI had received responses from all 50 states. The responses were posted on PEI's Web site (www.pei.org).

Although UST program managers were given the opportunity to amend their answers to our questions any time after they returned the initial survey, few did. As a result, the information shown on our Web site grew old and stale with time. Many PEI members and their customers who visited our site this year questioned whether the responses were still valid, especially in light of the U.S. EPA enforcement strategy announced in December.

PEI had two options: Either remove the information from our Web site or aggressively seek to update the responses. We chose the latter. Letters and e-mails were sent to the states in February and March, encouraging them to review the information we showed and to make changes where appropriate. Twenty-five states (Alabama, Alaska, Arizona, Hawaii, Florida, Iowa, Kansas, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Oklahoma, Oregon, Rhode Island, Pennsylvania, South Carolina, Tennessee, West Virginia, Washington and Wisconsin) and the Virgin Islands have already made changes that are reflected on our Web site. Additional responses from the states will be posted as received. To access the response of a particular state, visit www.pei.org/epa and click on the state you want to review.

The survey also asked questions about compliance with the December 22, 1998, underground storage tank deadline. Using the numbers submitted by the 26 respondents and extrapolating for the other 25 states, this is what we now know about the UST equipment, construction and services market in the United States:

• There are around 770,000 active underground tanks in the U.S. This represents a drop of 80,000 USTs (9.7 percent) from the figures we published last November. We attribute the substantial decline to several factors: tank owners taking the deadline to heart, facilities shut down but not reflected on the state's database, and an increase in the number of UST systems temporarily closed.
• State records show that almost 84 percent of the tank systems in the United States now comply with the 1998 deadline. That represents a vast improvement over the 55 percent compliance rate we reported last fall.
• There are nearly 63,000 UST systems temporarily out of service. This is over and above the 770,000 active USTs that we estimate exist in the U.S.
• Compliance rates will continue to rise over the next several months as state inspection teams visit more noncompliant tank owners and state databases are updated.

What does all this mean to PEI members involved in providing underground storage tank equipment and services? There are still plenty of UST systems (770,000 x 16% = 123,000) to work on nationwide, but the number will vary by state. We expect that UST compliance work will keep members busy through the summer, but not at the same hectic pace we experienced last fall and winter. Clean-up work should stay strong throughout 1999.

Federal law provides that temporarily closed USTs which are either in compliance with EPA's new tank standards or have been upgraded in accordance with the agency's existing tank requirements can remain temporarily closed for an indefinite period of time. USTs that do not meet these standards, however, must be permanently closed within one year. Although we don't have any information on how many temporarily closed USTs are in compliance, our guess is that most are not in compliance. We expect, therefore, that owners and operators of the majority of the 63,000 temporarily closed UST systems will be placing orders and scheduling work right up until the end of the year.

BP AMOCO TO ACQUIRE ARCO

Atlantic Richfield Co. (Arco), the seventh-largest U.S. oil company, has agreed to sell out to BP Amoco PLC in a stock swap valued at about $25.7 billion. The purchase means that the combined company would control more than two-thirds of Alaska's oil production. In addition, the acquisition would give BP Amoco a firm place in the West Coast refining and retail market, considered by experts to be the most lucrative in the U.S. Arco's share of the downstream market on the West Coast stands at about 22 percent.

Arco and BP Amoco, presuming a large workload at the Federal Trade Commission, say they don't expect to close the deal until the end of the year.

The Bay Area Air Quality Management District (BAAQMD) recently reached a settlement with Equilon Enterprises for penalties related to the operation of faulty bootless nozzles at 20 Contra Costa County gasoline facilities. BAAQMD found that 46 percent of the 548 nozzles tested at 25 Shell stations during routine testing last year were not compliant with the District's vapor recovery standards. In addition to the financial penalty, Equilon also agreed to retrofit faulty equipment, follow prescribed maintenance procedures, train operators, and submit to BAAQMD testing.

• Argentina's YPF S.A. has expressed an interest in buying a stake in Brazilian state firm Petroleo Brasileiro (Petrobras). Joao Carlos de Luca, head of YPF Brazil, said that YPF is studying a strategic investment in Petrobras and is waiting to see how the Brazilian government plans to offer a 31.7 percent stake in the company by year-end. The government now holds 81.7 percent of Petrobras and by law must retain a majority stake of at least 50 percent plus one share. It hopes to raise cash to pay down massive fiscal debt.
• The current economic situation in Brazil has caused Gulf to reduce its station building projects in Brazil during 1999 from 100 to 70 sites.

• There are currently 120,000 private automobiles running on LPG in France.
• Teboil will look to reduce the number of its stations in Finland and has not scheduled any new construction this year.
• Eteka will build 30 to 40 stations in Greece this year.
• BP currently has 18 stations in Poland that sell LPG. Sixty additional sites are expected to be built and outfitted with LPG dispensers. Its goal is to offer LPG at 90 percent of its stations in that country.
• There were 16,851 stations operating in Germany on January 1, 1999. This is 497 less than a year earlier.

EPA issued guidance in 1997 that allows two options for alternative assessments performed after March 22, 1998, for the upgrading of bare steel USTs with cathodic protection. One option is adherence to a national code of practice. The other option is integrity assessment by a vendor procedure that has been successfully evaluated and certified by a qualified independent third party to meet specified performance criteria. Four procedures have now been evaluated and are contained in a list recently published by EPA. PEI has copies of the list. Fax us for "List of Integrity Assessment Evaluations for USTs--Third Edition."

A special year 2000 (Y2K) enforcement policy, published March 10 in the Federal Register, allows EPA to waive all civil penalties and to recommend against criminal prosecution for environmental violations caused during tests designed to identify and eliminate Y2K computer glitches. To qualify for the penalty waiver, companies must immediately correct the violation, notify EPA by February 1, 2000, and meet nine criteria outlined in the policy. Fax PEI your request for "64 FR 11881-4."

Gasoline Installations, Inc., Inwood, New York, has promoted Robert McIntosh to vice president of its Tank and Pump Division. He began with the company in 1967 and has been the senior supervisor and estimator since 1993.

Environ Products Inc., Exton, Pennsylvania, has named Doug Adams Sales Associates (Plano, Texas) and Mike Long & Associates (Charlotte, North Carolina) co-chairmen of Environ's 5% Club which recognizes their outstanding sales performance in 1998.

The Steel Tank Institute (STI) has appointed Jeffrey F. Lowinski deputy director of the association. He will be responsible for the day-to-day management and administration of the Institute, working closely with Wayne B. Geyer, STI's executive vice president.

TFC Canopy, Garrett, Indiana, has promoted Gary Henderson from engineering manager to operations manager. He will be in charge of all purchasing, construction, customer service and engineering for TFC, a wholly owned subsidiary of Centurion Industries.

Total Containment, Oaks, Pennsylvania, has announced the appointment of Ryan Clemens as district sales manager for Florida.

REGULATORY BRIEFS

Connecticut. The state's Public Health Committee held a major public hearing March 30 on SB 630, which proposes to ban MTBE.

Illinois. The state has adopted a voluntary policy for providing fuel to disabled persons. Ask PEI for "IPMA Weekly Information Bulletin."

New York distributor. North American Environmental Services,

9 Monroe Street, Troy, New York 12180, has applied for distributor division membership. Mark G. Pratt is account manager for the firm, which was established in 1989. North American Environmental Services represents FEPetro, Formex, Omntec, RSElec and Xerxes. The company installs, tests and removes tanks and fuel management systems. It also provides environmental and CAD services. Nominated for PEI membership by Keith A. Stewart, TenHoeve, Carlstadt, NJ; Garry Tribley, ValleyNY, Schenectady, NY; and Jay Wright, TotalCntmt, Oaks, PA.

Digital liquid level gauge manufacturer. E.F. Gauge, Inc., P. O. Box 347, Summerfield, Florida 34492, has applied for manufacturer division membership. Craig Hope is a salesman for the firm, which was established in 1997. E.F. Gauge manufactures a solar-powered, digital level gauge with battery backup that is sold through distributors. Nominated for PEI membership by Jim Remington, ConVaultFL, Wildwood, FL; C. Daniel Heimbach, Heimbach, Ocala, FL; and Rene Latigo, SoTnk&Pmp, North Fort Myers, FL.

Transfer pump manufacturer. Decko Products, 501 West Lawson Avenue, St. Paul, Minnesota 55117, has applied for manufacturer division membership. Charles J. Michel, Jr., is president of the firm, established in 1989. Decko makes a multi-purpose transfer pump that is sold through PEI distributors. Nominated for PEI membership by Andrew J. Adams, AdamsTank, Pinellas Park, FL; Michael Hays, CherryAscs, Kansas City, MO; Sandra Fritter, Frittr&Son, Hyattsville, MD; and Fred J. Chrien, QualityOH, Cleveland, OH.

Tank manufacturer. Tecnoeco Chile S.A., Glamis 3161, Santiago, Chile, has applied for affiliate division membership. Gaston Fontaine P. is president of the firm, which was established in 1997. Tecnoeco Chile is a licensed manufacturer for Plasteel and UFUEL. Nominated for PEI membership by Jorge Elizagaray, IndAcero, Quito, Ecuador; Rick Sharpe, Plasteel, Escondido, CA; and Scott S. Webb, UFUEL, Eau Claire, WI.

Ultracon Inc., 9 Post Street, Montrose, Pennsylvania 18801, has requested that its membership in PEI be transferred from the affiliate division to the distributor division in PEI. The company represents Cim-Tek, EBW, EnvironPro, FEPetro, Gilbarco, HighlandTk, LSI, Mohawk, PemcoFL, TanxInc and TFCCanopy. The transfer is sponsored by Craig Williams, CortlandEq, Cortland, New York, and Edward K. Diltz, DiltzEqp, Bloomsburg, Pennsylvania.

Transfer     Triple M Fiberglass Mfg. Ltd.,
Approved     Edmonton, Alberta (from affiliate
             division to manufacturer division)

Vol. 49, No. 7