The Committee released a Congressional report a day
earlier that looked at the economic effects of hot fuel nationwide between
June and September. It found the average temperature of gas at the pump was
66.6 degrees and that drivers would pay an additional $1.5 billion to fill
their tanks during that time period. Dennis Kucinich (D-OH), chairman of the
oversight subcommittee on domestic policy, said after the meeting that he
plans to push the industry to consider voluntary steps before taking up the
possibility of national automatic temperature compensation.
In other recent related temperature compensation
developments, Bart Gordon (D-TN) chairman of the U.S. House of
Representatives Committee on Science and Technology, asked the National
Academy of Sciences May 30 to conduct a scientific analysis to determine if
a problem exists and whether the broad use of automatic temperature
compensation devices is warranted. On June 4, the Texas Petroleum Marketers
and Convenience Store Association reported that an automatic temperature
compensation bill introduced in the Texas House did not pass.
PETROLEUM MARKETING NOTES
Petro Stopping Centers, a chain of 69 truck stops based in El Paso,
Texas, sold 40 truck stops to Hospitality Properties Trust. The trust
has leased those truck stops to its subsidiary, TravelCenters of America,
which also acquired 24 Petro franchise agreements and five other Petro
Chevron has sold its fuels marketing businesses in Belgium, the
Netherlands and Luxembourg to a subsidiary of Israeli group Delek
Petroleum in a $460 million deal. The operations include 803
Texaco-branded service stations, two fuel terminals in Belgium and
Luxembourg, interests in six joint venture retailers in the Netherlands, as
well as other related assets.
Thailand will require the use of B2 palm oil biodiesel for all diesel
vehicles nationwide beginning in April 2008, and B5 shortly thereafter,
according to the Thai Energy Ministry.
Colony Capital LLC, Los Angeles, California, has acquired Libya’s
Tamoil SA for $5.4 billion. Tamoil, based in Switzerland and 100 percent
owned by the Libyan government under the name Oilinvest BV, owns three
refineries in Germany, Italy and Switzerland, and 2,500 refueling stations
in Italy. Libya’s government will retain 35 percent of the company.
PROMOTIONS AND APPOINTMENTS
Petro Energy, Inc., Houston, Texas, has hired Tom Case as territory
manager for the North Texas region.
IRPCO, Poca, West Virginia, has appointed H & H Sales Associates,
Inc., Andover, Minnesota, to represent their line of hose products in
Wisconsin, Minnesota, North Dakota and South Dakota. IRPCO also appointed
Peiker/Piatchek Associates Inc., St. Louis, Missouri, to represent the
line in Illinois and Iowa.
Computrol Fuel Systems Inc., Vancouver, British Columbia, has
appointed Richard van Ettinger as regional manager for Quebec and
Northeastern Ontario. Contact van Ettinger via email
firstname.lastname@example.org or telephone: (613) 360-8249.
Far West Sales & Marketing, Tempe, Arizona, has hired Ray Exum has a
full associate. Based in Phoenix, Exum will be responsible for the Las
Vegas, Arizona, and New Mexico markets. Bill Converse will continue to
represent the company in the northern Rocky Mountain states.
Emco Wheaton Retail, Wilson, North Carolina, has appointed Ken
Turcotte as its director of sales and marketing. He has held various
positions in the petroleum industry over the last 13 years, including
eastern regional sales manager for Emco Wheaton Retail.
DISTRIBUTOR PROFITABILITY SURVEY
”There is an ongoing need among PEI members to achieve adequate sales
growth. The trick is how to make it happen.” This is what Dr.
Al Bates of the Profit Planning Group says about sales growth in a recent
Profit Improvement Report prepared for PEI members:
Financial benchmarking results compiled for
PEI and other distribution industries indicate that the most profitable
firms in almost every industry are those that are able to grow slightly
faster than the industry as a whole. The obvious problem is that every firm
cannot grow faster than average.
The quest to grow "faster than the other
guy" has led most firms to look outside the firm's existing operation for
that growth, which focuses on new customers. Since every other firm is
looking to add the same new customers, the process is time consuming,
expensive and difficult. Analysts have argued for years that a more
profitable approach is to focus inside the firm in driving additional sales
volume from existing accounts. The only problem with that logic is
identifying where such opportunities arise.
If you are a PEI distributor member who is looking for tools to use in
planning sales growth, you are encouraged to participate in the Distributor
Profitability Survey that is currently underway. Participants in the survey
will receive an Online Profit Toolkit that will assist in their planning.
This is available only to distributors who participate in the survey.
Deadline for submission is June 30. The Distributor Profitability Report
generated from the responses to the survey is the best benchmarking source
in our industry. If you need to know more about this program and its
benefits to your firm, call PEI (918) 494-9696 or the Profit Planning Group
TENNESSEE UST RULE CHANGES COMING SOON
New rules for underground storage tanks will take effect soon. On June
19, new installation requirements will take effect. On July 24, secondary
containment rules will take effect for new and replacement tanks, piping and
The new installation rules mandate that:
- A pre-installation notification form and fee payment must be
submitted to the Division of Underground Storage Tanks at least 15 days
prior to the installation of any tank and/or new UST construction activities
at the site.
- Before petroleum is placed in the tank an air
pressure test or a vacuum test must be conducted in accordance with the
manufacturer’s recommendation and the test results kept for the
operational life of the tank.
The new secondary rules require that:
- All new tanks must be double-walled or jacketed and
must have an interstitial space.
- Interstitial monitoring must be performed monthly on
all new tanks.
- All new pressurized piping must be double-walled or
- Interstitial monitoring must be performed monthly on
all new pressurized piping.
- All new motor fuel dispensers must have a liquid
tight containment sump, designed to allow for visual inspections, which
must be done quarterly. A log of the inspections must be kept showing the
inspections done during the past 12 months.
- If a tank, a piping run or a motor fuel dispenser is
being replaced, the tank owner must install secondary containment and
interstitial monitoring for the replaced tanks and pressurized lines and
secondary containment for the replaced dispenser.
REQUEST FOR COMMENTS: OVERFILL PREVENTION FOR ASTS
A draft of PEI’s Recommended Practices for Overfill Prevention
for Shop-Fabricated Aboveground Tanks (PEI-RP600-07) is available
for comment and can be viewed at
www.pei.org/RP600. Written comments suggesting changes to the document
must be returned to PEI by July 6, 2007, for consideration by the AST
Overfill Prevention committee.
SAE STANDARDIZES COLOR AND VERBIAGE FOR FUEL CAPS
The Society of Automotive Engineers (SAE) has issued a recommended
practice (Standardization of Color and Verbiage for Fuel Inlet Closures,
SAE J2785) developed to standardize fuel inlet closure (e.g., fuel cap)
colors and verbiage by fuel type. While the recommended practice
specifically applies to passenger cars and trucks, it can also be used in
marine, industrial, lawn and garden, and similar applications. The basic
- Black for gasoline
- Yellow for E-85
- Green for diesel
SAE believes that the recommended practice will avoid
instances of refueling vehicles with the wrong fuel which can lead to damage
to the vehicle engine and its emission control system.
PEI BOARD ELECTION DEADLINE
It is time to begin the process of electing members to the PEI Board of
Directors. Under PEI’s election procedure, the official representative or a
duly appointed alternate must request to have his/her name included on the
ballot. A form for that purpose was mailed May 25 to the official
representatives of PEI member companies from the odd-numbered membership
districts of the distributor and manufacturer divisions and from the entire
affiliate division. The form must be received in Tulsa by the close of
business by Friday, June 15, for the name to appear on the ballot.
BAIRD COMPANIES MERGE
Baird Petroleum Equipment Corporation and F.W. Baird, LLC, have
completed their merger, forming a new company known as Baird Petroleum
Equipment, LLC, located in Richmond, Virginia. Officers include Peter Baird
(chief executive officer), Forrest Allen (executive vice president of
operations), Bobby Watkins (vice president of sales), and Mike Durkin (vice
president of service). Tom McCollum has joined Baird as vice president of
the company’s newly-formed car wash division, representing Ryko
Louis R. Witt, Jr., passed away on May 27, 2007, from complications
after suffering a heart attack on May 4. He was 84. He began his career in
the petroleum equipment industry in 1950, working for Allen U. Bevier, Inc.
He went to work for Petroleum Services, Inc., in Baltimore in 1971 and
served as the company’s president from 1981 to 1990. Lou served on the PEI
Board of Directors from 1982 to 1984.
New York distributor. Innovative Petroleum Equipment LLC, 6681 Commerce
Boulevard, Syracuse, New York 13211, has applied for distributor division
membership. Ronald Ritchey is general manager for the firm, which was
established in 2006. The company is a distributor for AustnMohwk, BetaLight,
B&KTkGauge, Blueline, BravoInc, Catlow, Cim-Tek, CntmtSoltn, EmcoWheatn,
Empro, ESCO, FairfldInd, Federal, Fibrelite, Formex, Gasboy, Global,
HighlandTk, HoseMaster, Krueger, MorganBros, Moormann, Natl-Spncr, Omntec,
PMPCorp, Pnemercatr, RedJacket, Richards, Samson, TotlConSys, TMS,
Universal, Vaporless and VeederR. Nominated for PEI membership by Michael
VanLenten, HighlandTk, Stoystown, PA.
Admitted to PEI
- Alvic Mexico, Delegación Cuauhtemoc, Mexico, D.F.,
- Torco de la Laguna S.A., Torreon, Coah., Mexico
- J.E.B. Petroleum Contractors Inc., Hialeah, FL (aff)
- Advantage Environmental Consultants, LLC, Jessup, MD
- Diversified Industries, Goodview, VA (aff)