TulsaLetter, published since 1951...
August 24, 2007 | Vol. 57, No. 17

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In This Issue

Dear PEI Member:

The 2007 Distributor Profitability Report shows that distributors in our industry improved their operating performance in 2006 from the previous year in almost all of the critical financial measures. In fact, the 2006 figures posted by PEI distributors as a group represent the industry’s best financial performance since 1999.

In order to examine the differing operating economies between industry segments, distributors are categorized in the report as either “equipment oriented” or “service and installation oriented.” Equipment oriented companies generate at least 50 percent of their revenue from equipment sales, while service and installation oriented companies generate the majority of their revenue from installation/service activities. Installation and service oriented companies reported their best year since 1998. Equipment oriented companies showed their best year since 1999. Distributors classified as installation and service oriented reported far better bottom line results than equipment oriented distributors, a distinction they have enjoyed each year since 2001.

Participating distributors should have already received their company-specific results. The industry-wide report was mailed August 20. Email Keith Wilson (kwilson@pei.org) if you did not receive your copy. Nonparticipating distributors may purchase the report for $295.
Runoff elections have been completed in PEI’s Distributor Division Districts 5 and 9 and the Affiliate Division. The three newly-elected directors, together with the five directors elected last month, will join seven incumbent directors on the PEI Board of Directors. The eight directors will be installed November 8 as members of the PEI Board of Directors during the association’s membership meeting/luncheon at PEI’s convention in Atlanta. The three members elected yesterday to the PEI Board of Directors are:

  • Susan Maples, RBM Company, Knoxville, Tennessee. She will succeed Kevin McKinney, McKinney Petroleum Equipment, Mobile, Alabama. Maples represents distributors in District 5.
  • Bob J. Hill, Franzen-Hill Corporation, Tulare, California. He will succeed Dennis Rethmeier from Western Pump, Inc., San Diego, California, and represents Distributor Division District 9.
  • Steve Hamilton, Hamilton Service Co., L.L.C., Basehor, Kansas. Hamilton represents members in the affiliate division and will succeed Gene Pope, Pope & Associates, Tampa, Florida.

2007 Distributor Profitability Report

PEI Board Election Results

D&H acquires White's Pump

PEI Notes

NC Bid-Rigging Case


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D & H Petroleum and Environmental Services, headquartered in El Paso, Texas, has acquired the facilities and inventory of White’s Pump Service & Supply, located in Lubbock, Texas. The Lubbock location will operate as a branch of D & H, and will be known as White’s Pump Service & Supply, Inc. Bill White will stay on as branch manager; Dale White is sales manager. All phone numbers and addresses for White’s  Pump will remain the same. Calvin Bishop, president of D & H Petroleum and Environmental Services, also serves as 2007 president of PEI. Bill White was PEI president in 1997.

The deadline for advance and group discounts
for the 2007 PEI Convention in Atlanta is August 31. To register and save $100, visit www.pei.org/show.
A paper copy of the draft
of PEI’s Recommended Practices for Inspection and Maintenance of UST Systems (PEI/RP900) was mailed to each PEI member in the United States and Canada on August 22. The draft document is also available at www.pei.org/RP900. Comments are due by Wednesday, September 26.
The third issue of The PEI Journal is available online at www.thepeijournal.org. This website not only contains the current (Third Quarter 2007) issue, but also past issues. The online versions include bonus material not found in the printed editions. Look for the current printed issue to arrive soon—they mailed last week.

The final two defendants charged with conspiring to rig bids and overcharge the North Carolina underground storage tank (UST) trust fund for cleaning up sites contaminated by leaking USTs have been ordered to pay over $350,000 to the state, bringing the total amount recovered in the case to $1 million. Under an order issued by the North Carolina Business Court, CBM Environmental Services of Fort Mill, South Carolina, and its chief executive officer, Catherine Ross Bateman, must now pay the state $350,434 for conspiring to rig bids on state contracts. Other defendants have already paid $735,000 to settle allegations that they plotted to fix prices and lie on bids by swearing that they had not colluded with other firms to peg prices. 

Central Illinois Manufacturing Company, Inc.
, Bement, Illinois, has appointed Walsh, Long & Company, Inc., Naperville, Illinois, to represent its petroleum division in North Dakota, South Dakota, Minnesota, Wisconsin, Michigan, Indiana, and north of Route 136 in Illinois.
Plasteel International Inc., Carlsbad, California, has licensed Diverse Product Engineering of Malaysia to market, sell and manufacture UL-Listed Plasteel® tanks in the Republic of Indonesia. For additional information, contact tanktech@plasteel.com.
Don Wood, Inc., Orlando, Florida, which opened its doors September 1, 1957, is celebrating its 50th year in business. Don Wood began his business at the age of 25 and continues today as president of the company. He was recently elected to the PEI Board of Directors.
GPM Investments LLC is expected to buy 110 gas stations and convenience stores on the East Coast, according to Globes Online. GPM is the parent company of the Shore Stop and Fas Mart convenience store chains. No details on the seller were given.

About one in twelve full-time workers, or 8.2 percent, admitted to using illegal drugs over the previous month, according to a study released by the Substance Abuse and Mental Health Administration.
The study showed that food service workers reported the highest drug-use rate at 17.4 percent, followed by construction workers at 15.1 percent, and workers employed within the arts, entertainment, media, and sports sector at 12.4 percent. Protective service workers reported the lowest drug-use rate, with 3.4 percent admitting to the practice.
Workers admitting to illegal drug use, the study found, are more likely to work for employers without drug and alcohol testing programs. About 29 percent of those who reported illicit drug use said they would be deterred from working for a company that did random drug testing.

Kum & Go, L.C.,
West Des Moines, Iowa, will add 19 new E85 refueling sites at existing retail locations in Iowa and an additional 5 new fueling sites at retail locations in South Dakota and Minnesota. The sites, supported by the Department of Energy, are being promoted by General Motors as part of a broader, ongoing national GM campaign to boost use and awareness of E85 in the United States.
The Texas legislature did not renew funding for the state’s Biofuels Incentive Program. As a result, the 20-cent-per-gallon payments will cease at the end of August.
Imperium Renewables opened its Imperium Grays Harbor biodiesel facility in Port of Grays Harbor, Washington, last week. The facility has an annual production capacity of 100 million gallons a year and is the largest of its kind in the United States, according to Imperium.

Double wall flexible pipe manufacturer
. OmegaFlex Inc., 451 Creamery Way, Exton, Pennsylvania 19341, has applied for manufacturer division membership. Dean W. Rivest is vice president of the firm, which was established in 1975. The company manufactures double wall flexible piping, which is sold through distributors. Sponsored for PEI membership by James R. Parrish, PTCoupling, Enid, OK.

Admitted to PEI

  • Petroleum Recovery Systems Inc., Jacksonville, FL (aff)
  • Carolina Petroleum Services, LLC, Lexington, SC (aff)
  • George Goff, BJ’s Wholesale Club, Inc., Natick, MA (O&E)
  • Patrick Netreba, BJ’s Wholesale Club, Inc., Natick, MA (O&E)


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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.