TulsaLetter, published since 1951...
October 5, 2007   | Vol. 57, No. 20

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Dear PEI Member:

On October 1, EPA Administrator Stephen L. Johnson signed a proposed rule to amend the Spill Prevention, Control, and Countermeasure (SPCC) rule at 40 CFR Part 112. EPA hopes that the amendments will clarify, tailor and streamline SPCC requirements so they will encourage greater compliance with the SPCC regulations.

On May 10, 2007, EPA issued a rule extending the compliance dates for owners and operators of facilities preparing or amending and implementing SPCC Plans until July 1, 2009. At the time the compliance dates were extended, EPA served notice that it expected to propose the revisions issued earlier this week, so their appearance at this time is not a surprise.

The pre-publication version of the October 2007 amendments is 217 pages. It will take some time to fully analyze the ramifications the amendments might have on PEI members and their customers. A quick reading of the amendments suggests that EPA specifically proposes to:

  • Exempt hot-mix asphalt, pesticide application equipment and related mix containers used at farms, and heating oil containers at single-family residences from the SPCC requirements.
  • Allow the use of an SPCC Plan template for a subset of qualified facilities known as "Tier 1" qualified facilities (i.e., with no individual oil storage container with a capacity greater than 5,000 gallons up to an aggregate of 10,000 gallons). The owner or operator of such a facility was provided an option to self-certify his SPCC Plan in the 2006 amendments to the SPCC rule.
  • Revise the facility diagram requirement to clarify how containers, both fixed and mobile, are identified on the facility diagram.
  • Define "loading/unloading rack" to clarify the equipment subject to the provisions for facility tank car and tank truck loading/unloading racks to include "a platform, gangway, or loading/unloading arm; and any combination of the following: piping assemblages, valves, pumps, shut-off devices, overfill sensors, or personal safety devices."
  • Provide more flexibility to the general secondary containment requirement.
  • Allow an owner or operator to tailor his security measures to the facility's specific characteristics and location. A facility owner or operator would be required to describe in the SPCC Plan how he secures and controls access to the oil handling, processing, and storage areas; secures master flow and drain valves; prevents unauthorized access to starter controls on oil pumps; secures out-of-service and loading/unloading connections of oil pipelines; and addresses the appropriateness of security lighting to both prevent acts of vandalism and assist in the discovery of oil discharges.

More information about this proposed amendment will be available after we have had a chance to read it more thoroughly. EPA has provided 60 days for comments. In the meantime, if you want to read the pre-publication copy, it is available from the EPA web site. Jeff Leiter, partner in the law firm of Leiter & Cramer, LLC, will devote some time during his presentation on November 8 at the PEI convention in Atlanta to discuss these proposed amendments.

SPCC: Proposed Amendments

PEI: Proposed Amendments

Illinois: Proposed Amendments


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PEI's Constitution and Bylaws have served the association well since we changed our name from the National Association of Oil Equipment Jobbers to the Petroleum Equipment Institute in 1966. But times change, and the 2007 PEI Board of Directors believe that the rules directing the governance of the association must change as well.

The PEI Board of Directors will recommend numerous changes to the PEI Constitution and Bylaws when we meet at the Annual Membership Meeting on November 8 in Atlanta. Many of those are editorial in nature, some correct errors in the document, and a few offer substantive changes. On September 26, PEI President Calvin Bishop wrote a letter to all Official Representatives of PEI member companies which was accompanied by a document showing all the changes proposed by the PEI Board of Directors. The letter explained the substantive amendments and invited questions and comments to be addressed to either Calvin (cbishop@dhpump.com) or Bob Renkes (rrenkes@pei.org) of the PEI staff in advance of the Annual Membership Meeting. The most dramatic substantive change would be the creation of a Service and Construction Division, which would allow PEI to better identify and serve the hundreds of contractors in the association. Calvin Bishop's letter and the complete set of changes is available here.

PEI's Annual Membership Meeting will be held from 11:30 a.m. to 12:30 p.m. on Thursday, November 8, at the Georgia World Congress Center. A complimentary buffet lunch will be served. Please make plans to attend.

Shell plans to sell its last 1,800 direct-op sites in the United States by the end of 2009. Affected markets include Los Angeles, San Francisco, Seattle, Washington, D.C., Chicago, Boston, Southeast Florida, and New York.
ConocoPhillips and Archer Daniels Midland Co. plan to develop "biocrude," a crude-like substance made from crops, wood and switchgrass that can be turned into gasoline or diesel. The ADM-Conoco venture is in the early stages, and it will be at least five years before biocrude can be made, said Lou Burke, manager of Conoco's biofuels division.
Venezuela's state owned oil company Petroleos de Venezuela (PDV) may be interested in purchasing ExxonMobil assets (a refinery, 500 Esso-branded service stations, and some gas fields) in Argentina, according to Argentine and Brazilian newspapers.
Petrobras is considering forming a consortium to buy ExxonMobil's downstream assets in Brazil, Argentina, Uruguay, Paraguay and Chile, Brazil's Gazeta Mercantil said earlier this week.

. The Office of the State Fire Marshal (OSFM) has proposed amendments to 41 Ill. Adm. Code 170, implementing some of the federal mandates required by the Energy Policy Act of 2005. The amendments require that all new and replaced tanks and piping have secondary containment with interstitial monitoring and under-dispenser containment to contain and detect releases. The OSFM chose the secondary containment option as the simplest and least costly method of compliance with the federal energy policy act mandates, although licensure of UST installers and certification of installations is currently required under the UST program in Illinois.

We've made the proposal available for download. The document is lengthy and may take some time to download. The formal public notice comment period ends in 45 days from September 28.

Marketing communications firm
. DeanHouston, Inc., 659 Van Meter Street, Suite 501, Cincinnati, Ohio 45202, has applied for affiliate division membership in PEI. Dale A. Dean is president of the firm, which was established in 1988. DeanHouston is a full-service marketing communications firm which focuses on helping companies serving the petroleum industry increase sales and net revenue. Sponsored for PEI membership by Craig McNeill, OPW-FC, Cincinnati, Ohio.
Environmental compliance management firm. DJS Consulting, Inc., The Center for Compliance Focus, 1000 Spanish River Road, 4B, Boca Raton, Florida 33432, has applied for affiliate division membership. Daniel Spandau is president of the firm, which was established in 2000. DJS Consulting provides environmental compliance document management web portal services, management and dealer training, audit services, regulatory assistance, inspections and expert witness services. Sponsored for PEI membership by Lee Nicholson, OMNTEC, Ronkonkoma, NY.


  • Fort Smith Petroleum Equipment Inc., Fort Smith, Arkansas, from the affiliate division to the distributor division


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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.