Published since 1951...
January 8, 2007 | Vol. 57, No.1

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In This Issue

Dear PEI Member:

Calvin Bishop, president of D & H Pump Service, Inc., headquartered in El Paso, Texas, became the 57th president of the Petroleum Equipment Institute January 1. He succeeds J. Stephen Hieber, president of PWI, Incorporated, New Oxford, Pennsylvania, in that post. Bruce Larson, president of The Oscar W. Larson Co., Clarkston, Michigan, is PEI's vice president for 2007.

One of Bishop's first duties was to appoint committees for 2007. An all-time record 136 people were named to serve on 18 PEI committees, and 19 individuals were appointed to a PEI committee for the first time. We regret we were not able to appoint everyone to a committee.

We appreciate the willingness of all these committee members to contribute their time and talents to serve the association and the industry. Many PEI committees welcome new members each year. If you are interested in serving on a committee in the future, contact me at rrenkes@pei.org. Here is a complete list of members who have agreed to serve on the Institute's committees in 2007.

Education Committee. Responsible for planning seminars, surveys, industry manuals, convention sessions, and other educational programs for PEI members.
Dennis Rethmeier, WesternPmp, San Diego, CA, chairman
Derrick Biermann, Biermann, Chicopee, MA
Steve Dixon, Hoidale, Wichita, KS
Phil Farrell, DoublCheck, Kansas City, MO
J. Benjamin Hieber, PWIinc, New Oxford, PA
Stephen Klesic, UntdEnvPA, Sewickley, PA
Martin Pettesch, Universal, Elizabeth, NJ
Peter Ward, Glasgow, Riviera Beach, FL

Election Committee. Supervises board elections and tabulates ballots. Members of this committee are established by the PEI Constitution.
Jim O'Day, ODayEqpCo, Fargo, ND, chairman
Kirk N. Mercer, MercerCo, Jackson, MI
J. Stephen Hieber, PWIinc, New Oxford, PA

Executive Committee. Composed of the president, vice president, immediate past president, and two members of the board of directors, this committee is established by the PEI Constitution and makes interim decisions on behalf of the board.
Calvin Bishop, D&HPumpSer, El Paso, TX, chairman
Bruce Larson, OWLarsonCo, Clarkston, MI
J. Stephen Hieber, PWIinc, New Oxford, PA
Joey Cheek, JMPSoltns, Tampa, FL
Fred Seymour, J8EqpCo, Denver, CO

Exhibitor & Convention Advisory Committee. This committee is responsible for making recommendations to the PEI Board of Directors and staff regarding the PEI convention and the combined tradeshow with NACS.
Scott G. Clawson, RYKO, Grimes, IA, chairman
Tim Bland, Alemite, Gresham, OR
Eva Chambers, VeederR, Simsbury, CT
Tom Green, J8EqpCo, Denver, CO
Brenda Johnstone, CStoreCan, Winnipeg, Canada
Christian Larsen, FarWestSls, Tempe, AZ
Richard Long, RDMElec, Nebo, NC
Richard McLaughlin, ReitzPA, Brookville, PA
John Moore, Banks&Co, Fresno, CA
 

PEI Committee Appointments

EPA's FR Guidance

Missouri FR Seminar

Ethanol and Biodiesel Notes

Stage II VR Lifted in Some Areas

EPA and Ethanol Sales

Record Year for Gasoline Margins

Maryland Proposed UST Regs

Refueling Fires in South America

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Insurance Committee. This committee monitors the association's insurance programs and legislation that impacts the insurance needs of PEI members.
J. Stephen Hieber, PWIinc, New Oxford, PA, chairman
Ed Ettl, BadgerOEqp, Milwaukee, WI
Larry Gentry, GentryCo, Lafayette, IN
John T. Hardin, Hardinís, Winston-Salem, NC
Fred W. Jones, WestechEqp, Salt Lake City, UT
Mark Leak, LeakPtrEqp, DeWitt, MI
William Mascott III, MascottEqp, Portland, OR

Membership Committee. Encourages application for membership in PEI from qualified companies.
Susan Maples, RBMCo, Knoxville, TN
Mike Panyard, PtrParts, Ft. Wayne, IN
Chris Santy, Patriot, Atlanta, GA

Safety Committee. Plans programs and publications (SafetyLetter, Safe Practices, Dos and Don'ts, safety posters, etc.) for use by members to enhance public and workplace safety.
Archie Muckenfuss, SoPmpTnkNC, Charlotte, NC, chairman
Mark Barron, PtrSolutns, McAllen, TX
Brian Derge, Tanknology, Austin, TX
Norman Hobson, Daleís, Boise, ID
Doug Hurt, Neumayer, St. Louis, MO
Martin Meyer, MMSerEqp, Silver Grove, KY
Chris Monroe, Monroe, Arlington, TX
Steven Radvak, ComplMgmt, Phoenix, AZ
Drew Tyo, JonesFrank, Raleigh, NC

Strategic Long Range Planning Committee. Established by the PEI Constitution, this six-person committee is composed of the president, vice president, treasurer, and the three immediate past presidents. It develops long range plans and objectives, and serves as an advisory group to the PEI Board of Directors.
Calvin Bishop, D&HPumpSer, El Paso, TX, chairman
Bruce F. Larson, OWLarsonCo, Clarkston, MI
Blair D. Shwedo, SEPSinc, Charlotte, NC
J. Stephen Hieber, PWIinc, New Oxford, PA
Kirk N. Mercer, MercerCo, Jackson, MI
Jim O'Day, ODayEpCo, Fargo, ND

Young Executives Committee. The committee establishes and develops programs for members of the PEI Young Executives Committee.
Bradley F. Baker, HuskyCorp, Pacific, MO, chairman
Butch Armstrong, RBMCo, Knoxville, TN
Alvaro Coronado, IntlAvios, Guadalajara, Mexico
Sherrie Keller, MMSerEqp, Silver Grove, KY
Shawn Kiefer, DixonPumps, Billings, MT
Jodi McDonald, OilEqpWI, Madison, WI
Bryan Newcomb, PetMarCo., Oklahoma City, OK
Alan Phipps, Cim-Tek, Bement, IL
Jeff Schmidt, WalshLong, Wayland, MI
Christopher M. Tiso, ATSEnvSer, Sparta, NJ

Aboveground Tank Installation Committee. Responsible for PEIís Recommended Practices for Installation of Aboveground Storage Systems for Motor-Vehicle Fueling (RP200) and for monitoring technical developments related to the installation of these systems.
Kirk N. Mercer, MercerCo, Jackson, MI, chairman
Steve Bernstein, JonesFrank, Charlotte, NC
Robert E. Bonnewell, BTCSer, Blair, WI
Mark Hinderliter, Hinderlitr, Evansville, IN
Mike Raymond, MascottEqp, Seattle, WA
Mark Sisco, EastCstAsc, Roseland, NJ
George H. Watkins, emeritus member, Fayetteville, GA
Bill R White, WhitesPump, Lubbock, TX
Timothy K. Woofter, Stanwade, Hartford, OH

AST Overfill Protection Committee. Responsible for developing and writing PEI's Recommended Practices on the Proper Installation, Inspection, Testing and Maintenance of Overfill Protection Devices for Shop-Fabricated Aboveground Storage Tanks (RP600).
Sonny Underwood, MidSouth, Cape Girardeau, MO, chairman
John Albert, MDA, Jefferson City, MO
Tracy Barth, MFAOil, Columbia, MO
Terry Cooper, PtrEqp&Ser, Marion, IA
Brad Holmes, ClayBailey, Kansas City, MO
Sam Lillard, VaDEQ, Richmond, VA
Phil Myers, Chevron, San Ramon, CA
Alfred Reid, BrowardEPA, Fort Lauderdale, FL
Dana Schmidt, STI, Lake Zurich, IL
Amy Wessel, Morrison, Dubuque, IA

Bulk Plant Construction Committee. Responsible for developing and writing Recommended Practices for the Construction of Petroleum Bulk Plants (RP800).
Terry Cooper, PtrEqp&Ser, Marion, IA, chairman
Georges Boyazis, IPP, St. Augustine, FL
A. Roy Creley, LakesReg, Belmont, NH
Wayne Geyer, STI, Lake Zurich, IL
Douglas L. Jones, PumpMaster, Tyler, TX
Mark Lipa, Neumayer, St. Louis, MO
Dave Mac Donald, PrvntSpill, Huntington, IN
Bill Morgan, CollinsEqp, Cleveland, OH
Charlene Numrych, LqdCntrols, Lake Bluff, IL
Brian Savage, SavageAscs, Berkeley Heights, NJ
John Steward, Blackmer, Grand Rapids, MI
Rick Zillig, Morrison, Dubuque, IA

Electrical Continuity Testing Committee. Responsible for writing PEIís Recommended Procedure for Testing Electrical Continuity of Fuel-Dispensing Hanging Hardware (RP400).
Blair D. Shwedo, SEPSinc, Charlotte, NC, chairman
Richard Benscoter, HuskyCorp, Pacific, MO
Don Birdwell, PetMarCo, Oklahoma City, OK
Craig Boche, Goodyear, Norfolk, NE
Bruce Bragg, Catlow, Tipp City, OH
Clark Conklin, NebrStFM, Lincoln, NE
Mike Conner, QuikTrip, Tulsa, OK
Brent Erekson, CochisePtr, Phoenix, AZ

Fuel Dispensing Equipment Committee. Responsible for writing PEIís Recommended Practices for Inspection and Maintenance of Motor Fuel Dispensing Equipment (RP500).
Joey D. Batchelor, Guardian, Jacksonville, FL, chairman
Dick Basham, IRPCOinc, Poca, WV
Bruce Bragg, Catlow, Tipp City, OH
A. Roy Creley, LakesReg, Belmont, NH
Bobby Dutcher, AtlPtrEqp, Tucker, GA
Jim Howard, Hess, Woodbridge, NJ
Gordon Johnson, Gilbarco, Greensboro, NC
Joseph Laschke, HuskyCorp, Pacific, MO
Glen Mulder, DRWService, Chicago Heights, IL
Virgil A. Musil, Kroger, Denver, CO
Gary E. Stewart, QualityAZ, Burbank, CA
Charley Sunderhaus, OPW-FC, Cincinnati, OH

Pneumatic & Hydraulic System Installation Committee. Responsible for developing and writing Recommended Practices on the Proper Selection, Sizing and Installation of Pneumatic and Hydraulic Transmission Systems for the Lubrication Industry (RP700).
Phil Parker, Samson, Swannanoa, NC, chairman
Harrell ďDocĒ Blair, McKinney, Mobile, AL
Bruce Doughty, SyTexInc, Las Vegas, NV
John C. Miller, OrangePtEq, Orange, CA
Mike Moe, Graco, Minneapolis, MN
Fred Mowczan, Coilhose, East Brunswick, NJ
Bill Parker, Lincoln, St. Louis, MO
Don Smith, Balcrank, Marietta, GA
Stephen Spiros, SuperiorEq, St. Louis, MO
Charles Stookey, RelHydra, Smyrna, GA

Tank Installation Committee. Responsible for PEIís Recommended Practices for Installation of Underground Liquid Storage Systems (RP100).
Leland M. Freeman, PtrSolutns, Victoria, TX, chairman
Blake Bammer, GuardTech, Jacksonville, FL
Jack Carmitcheal, DoublCheck, Kansas City, MO
Michael W. Farmer, FarmerCo, South Williamsport, PA
Duane Grippe, ODayEqpCo, Fargo, ND
Maurice J. Hubbard, JMPSoltns, Fort Myers, FL
G. Douglas Mets, WesternPmp, San Diego, CA
Jim OíDay, ODayEqpCo, Fargo, ND
Tim Smith, USEPA, Washington, DC
Greg Thomas, CEThomasCo, Gardena, CA
Bill R White, WhitesPump, Lubbock, TX

UST System Inspection and Maintenance Committee. Responsible for developing and writing Recommended Practices for Inspection and Maintenance of Underground Storage Tank System Equipment (RP900).
Brad Hoffman, Tanknology, Austin, TX, chairman
Scott C. Boorse, Wawa, Wawa, PA
John Burwell, Xerxes, Minneapolis, MN
Laura Chaddock, SWRCB, Sacramento, CA
Peter Cochefski, OPW-FMS, Hodgkins, IL
Glenn Farmer, D&HPumpSer, Amarillo, TX
Duane Grippe, ODayEqpCo, Fargo, ND
Ann Hines, AOMA, Little Rock, AR
Jim Howard, Hess, Woodbridge, NJ
Ed Rachins, MutualOil, Brockton, MA
Steven J. Radvak, ComplMgmt, Phoenix, AZ
Joyce Rizzo, JD2Env, West Chester, PA
John Scandurra, Conklin, Newburgh, NY
Sonny Underwood, MidSouth, Cape Girardeau, MO
Brian Wiegert, RoundsAsc, Waukee, IA

Vapor Recovery Installation Committee. Responsible for writing PEIís Recommended Practices for Installation and Testing of Vapor-Recovery Systems at Vehicle-Fueling Sites (RP300).
B. J. Benton, UntdPumpGA, Suwanee, GA, chairman
Victor Ayala, D&HPumpSer, El Paso, TX
Scott C. Boorse, Wawa, Wawa, PA
John W. Bracknell, AAATank, Braselton, GA
Pete Delderfield, DeltaPtrFL, West Palm Beach, FL
Larry R. Gregory, ExxonMobil, Fairfax, VA
Stephen A. Purpora, Protanic, Saukville, WI
Dennis Rethmeier, WesternPmp, San Diego, CA
James A. Spiros, SuperiorEq, St. Louis, MO
Jeffrey Underland, PtrSersMD, Baltimore, MD

UPDATE ON EPA'S FINANCIAL RESPONSIBILITY GUIDANCE
We understand that EPA's final grant guidelines covering financial responsibility requirements for manufacturers and installers of underground storage tank equipment have been prepared and will be released soon. In the meantime, we will catch you up on where we believe the states stand with the regard to the choice they will soon make between requiring secondarily contained UST systems near water supplies or requiring financial responsibility for tank manufacturers/installers.

  • We wrote in the November 28, 2006, TulsaLetter, that we knew of two states that were strongly considering the financial responsibility option: Missouri and Idaho. While Missouri is still working on their financial responsibility regulations, Idaho's proposed underground storage tank act now requires secondary containment, not financial responsibility.
  • Randy Carlson of the Kansas Department of Health and Environment, Bureau of Environmental Remediation, Storage Tanks Section, notified us last month that Kansas is planning to implement the financial responsibility options of the Energy Policy Act, rather than secondary containment.
  • We hear from three Midwestern states that while the state UST regulators are heavily committed to secondary containment, the petroleum marketers are pushing financial responsibility and want to make sure that option gets a fair hearing.

INTERNET SEMINAR FOR TANK MANUFACTURERS AND INSTALLERS DOING BUSINESS IN MISSOURI
The Missouri Department of Agriculture will sponsor an Internet seminar for tank manufacturers and installers doing business in Missouri from 10:00 a.m. to 11:30 a.m. on Wednesday, January 17. The purpose of the seminar is to provide information and give participants an opportunity to ask questions about Missouri's financial responsibility requirements.

To participate, you need a telephone and computer with an internet connection. Although there is no cost to participate in the seminar, you need to pre-register by January 10. Email Kerry.Kaullen@mda.mo.gov with your name, company, mailing address and telephone number. Registered participants will receive email confirmation no later than Friday, January 12, with the web site address and toll-free number necessary to participate in the seminar. 

BRIEFLY NOTED
Emco Wheaton Retail Corporation
, Wilson, North Carolina, has hired Mark Wickman as district manager for Texas, New Mexico, Oklahoma, Arkansas, Louisiana and Mississippi.
Alimentation Couche-Tard, Inc., Laval, Quebec, has purchased 13 Groovin' Noovin convenience stores in Florida from Richcor Inc.
Armada Oil & Gas Co., Dearborn, Michigan, has acquired 30 BP stations in the Toledo/northwest Ohio area.

ETHANOL AND BIODIESEL
A $590,000 federal grant is available to fuel station owners in North Carolina to pay roughly half the cost of dispensers, storage tanks and other infrastructure necessary to market ethanol and biodiesel in the state.
New Mexico Governor Bill Richardson
signed an executive order last week creating a state government implementation team that is tasked with proposing a one-time tax credit of up to 40 percent for the purchase, construction or retrofitting of alternative fuel filling stations.
The Canadian federal government announced plans last week to require the use of renewable fuels like ethanol and biodiesel in the country's energy supply. Environment Minister Rona Ambrose and Agriculture Minister Chuck Strahl said the renewable fuels standard would require 5 percent renewable content in gasoline by 2010 and a 2 percent renewable content in diesel and home heating oil by 2012.
Iowa ethanol refineries will produce a record 1.5 billion gallons of ethanol in 2006, according to the Iowa Renewable Fuels Association. The refineries produced 1.1 billion gallons in 2005. Iowa leads the nation in ethanol production and has the greatest number (26) of operational refineries.

EPA ALLOWS REMOVAL OF STAGE II VAPOR RECOVERY IN SOME SITUATIONS
The federal Environmental Protection Agency (EPA) has provided guidance to States concerning the removal of Stage II vapor recovery systems from a State's Implementation Plan (SIP). This can happen where States demonstrate to EPA that widespread use of onboard refueling vapor recovery (ORVR) has occurred in specific portions of the motor vehicle fleet in three limited circumstances:

  1. Initial fueling of new vehicles at automobile assembly plants
  2. Refueling of rental cars at rental car facilities
  3. Refueling of flexible fuel vehicles (FFVs) at E85 dispensers

EPA concluded in the guidance letter that if 95 percent of the vehicles in a fleet of new vehicles at an automobile assembly plant or 95 percent of the rental cars at a rental car facility have ORVR, then widespread use will likely have been demonstrated. For E85 locations, if the State could demonstrate that any increase in emissions caused by operating E85 fueling stations without Stage II controls is so small as to clearly not interfere with attainment of the ozone standard, then EPA could find that ORVR is in widespread use for FFVs when refueling at E85 facilities. These facilities could then allow E85 facilities to operate without Stage II controls.

EPA warns that this guidance is only for these three "special sectors" and would not necessarily apply to widespread use determinations for the general motor vehicle fleet. EPA concludes its memorandum by saying that it "is still considering the possible criteria for determining widespread use for the general fleet." The entire memo is available at www.pei.org/frd

EPA POSITION ON ETHANOL SALES
The sale and use of gasoline containing ethanol amounts greater than E10 in a gasoline-only vehicle could cause emissions from the vehicle to increase and is prohibited under the Clean Air Act, said Margo Oge, director of the U.S. Office of Transportation and Air Quality. It is legal to sell gasoline containing up to 10 percent ethanol (E10) for use in any gasoline-fueled vehicle in the United States. Gasoline containing between 10 percent and 85 percent ethanol may only be sold for use in flexible-fueled vehicles that are certified to meet emission standards on E85, Oge said.

PETROLEUM MARKETERS POST RECORD YEAR FOR GASOLINE MARGINS
Retail regular gasoline margins posted their fourth record year in a row, reaching 11.2Ę per gallon in 2006, according to the Lundberg Letter. Margins were highest on the East and Gulf Coasts, and hovered around the 10Ę per gallon range in the Midwest, Rockies and West Coast. "All five regions of the United States had higher average margins in 2006 than they had during the 2002-2005 combined period," reported the Lundberg editors.

REGULATORY BRIEFS
Maryland
. The Maryland Oil Control Program is seeking pre-proposal comments on draft underground storage tank (UST) regulation language that it intends to formally propose by March 2007. The draft language indicates that the Program will propose substantial changes to the state's regulations, including requiring an upgrade from single-wall to double-wall piping for 90 facilities with existing USTs in the High Risk Groundwater Use Areas in five counties. The draft also requires all new, upgraded or replaced UST systems to have secondarily contained USTs; includes a clarification where fiberglass and flexible piping systems cannot be installed or used; requires a testing schedule of overfill prevention equipment to verify it is operational; prohibits internal lining from being used unless written approval is received from the state; and eliminates vapor monitoring as an acceptable method of release detection. The 13-page draft amendments and a 3-page proposed regulation summary are available at www.pei.org/frd. Comments can be emailed to gsonberg@mde.state.md.us.

REFUELING FIRES IN SOUTH AMERICA
For the past seven years, PEI has been conducting a safety campaign intended to increase public awareness of the potential danger posed by the discharge of static electricity during the refueling process. In the classic example, motorists start to pump gasoline and then get back in the vehicle. They return to the fueling port and discharge the static electricity they have generated/accumulated when they get close to the nozzle. A fire then ensues. For a complete description and supporting material, see www.pei.org/static.

We have recently been notified by the health and safety manager of a large petroleum marketer in Chile that they experienced two refueling fires in 2006. Both involved automobiles that had a plastic fill pipe between the gas cap and gas tank. The cars involved, a Citroen and Peugeot, are both models not marketed in the United States. Readers are reminded that fires caused by static discharge at the fuel dispenser are not necessarily limited to static discharge from the motorist to the nozzle, but that they may occur inside the vehicle's fuel storage system.  

DEATHS
Keith Crowe
, a partner in Williams, Beck & Hess Inc., West Newton, Indiana, died November 19, 2006, at the age of 54. He spent 25 years in our industry and was well respected for his expertise in petroleum handling applications. He is survived by his wife of 38 years, Billie; a son, Keith; and a daughter, Dawn Geisler. 

MEMBERSHIP APPLICATIONS
Massachusetts testing and compliance firm
. Comprehensive Compliance Management, Inc., 31 West State Street, Granby, Massachusetts 01033, has applied for affiliate division membership. Thomas Presnal is president of the firm, which was established in 2003. The company provides full-service testing and compliance management. Nominated for PEI membership by William H. Ensign, EnsignEqCo, Norwalk, CT.
Minnesota graphic and overlay printer
. Lakeland Graphics, Inc., 6850 Shingle Creek Parkway, Suite 165, Brooklyn Center, Minnesota 55430, has applied for affiliate division membership. Mark S. Johnson is president of the firm, which was established in 1986. The company provides screen printed graphics for warning signs, decals and other signage. Nominated for PEI membership by John Confer, AIR-serv, Mendota Heights, MN.
Ohio engineering firm
. Wellert Corporation, 5136 Beach Road, Medina, Ohio 44256, has applied for affiliate division membership. Kenneth A. Letz is senior project manager for the firm, which was established in 1980. Wellert Corporation provides engineering, environmental, permitting and surveying services. Nominated for PEI membership by Willard C. Able, PetroSysOH, Akron, OH.
Washington manufacturer's representative. SERVNORTHWEST Sales, 126 S.W. 148th Street, Suite C100 PMB29, Seattle, Washington 98166, has applied for affiliate division membership. Jim Norman is the owner of the agency, which was established in 2006. The company represents Catlow, CNIMfg, CPI and Whiteway in Alaska, Washington, Oregon, Idaho and Montana. Nominated for PEI membership by Bill Longstroth, IDPtrEqp, Boise, ID.

Admitted to PEI

  • Grupo Petroum S.A. de C.V., Monterrey, N.L., Mexico (dis)
  • GAMAJET Cleaning Systems, Inc., Devault, PA (mfr)
  • QT Technologies, Boulder, CO (mfr)
  • Zervas Industrial Petroleum Co., Inc., Saginaw, MN (aff)
  • Bovis Lend Lease, New Castle, PA (aff)

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©2006
Petroleum Equipment Institute
P. O. Box 2380
Tulsa, OK 74101-2380

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.

PEIģ and the PEI mark are registered trademarks
of the Petroleum Equipment Institute.
Copyright © 2006 All rights reserved.