TulsaLetter, published since 1951...
November 19, 2007 | Vol. 57, No. 23

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Dear PEI Member:

The PEI Convention in Atlanta was probably the best convention the association has sponsored since we combined tradeshows with NACS in 2002. Here are the highlights.

Bruce F. Larson, president of The Oscar W. Larson Co., headquartered in Clarkston, Michigan, was elected to serve as the 58th president of PEI. On January 1, Larson will succeed Calvin Bishop, president of D & H Pump Service, Inc., El Paso, Texas, in PEI's top elected position. Larson is currently serving as PEI vice president.

Blair D. Shwedo, president of SouthEastern Petroleum Systems Inc. (SEPS), Charlotte, North Carolina, was elected vice president for 2008. Shwedo has just completed his term as treasurer of the association, and has previously served on the PEI Board of Directors representing Distributor District 3. He is also current chairman of the Electrical Continuity Testing Committee. Peter H. Ward, president of Glasgow Equipment Service, Inc., Riviera Beach, Florida, was appointed treasurer of the association by the PEI Board of Directors.

Eight people were installed as new directors on the PEI board during the annual meeting in Atlanta. They are Bernie LeBlanc, Petroservice, St. John, New Brunswick (District 1); J. Donald Wood, Don Wood, Inc., Orlando, Florida (District 3); Susan Maples, RBM Company, Knoxville, Tennessee (District 5); Duane Grippe, O'Day Equipment, LLC, Fargo, North Dakota (District 7); Bob J. Hill, Franzen-Hill Corporation, Tulare, California (District 9); Jeanne Murphy Murck, Core Engineered Solutions, Inc., Herndon, Virginia (District 11); Richard L. Basham, IRPCO, LLC, Poca, West Virginia (District 13); and Steven N. Hamilton, Hamilton Service Co., L.L.C., Basehor, Kansas (Service and Construction Division). 

Numerous changes to the PEI Constitution and Bylaws were approved at the General Membership Meeting. Many of the amendments were editorial in nature, some corrected errors in the document, and a few provided substantive changes. The substantive changes included:

  • A new membership division for service and construction companies. Members of the new Service and Construction Division will have one representative on the PEI Board of Directors. Current members of the Affiliate Division will be given the opportunity to transfer their membership to the Service and Construction Division in March 2008.
  • Members of the distributor, manufacturer, affiliate, and service and construction divisions are eligible to vote for distributor members to hold the office of PEI president and vice president.
  • Representatives from regulatory agencies and trade associations affiliated with the industry are permitted to serve on PEI committees, provided the PEI president and committee chairman approve. 
  • Applications for membership to PEI must be accompanied by first-year dues.

PEI Convention in Atlanta

PEI Directory Update

BP to Close Convenience Retail Office


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The PEI board met twice during the convention. Items discussed by the officers and directors in Atlanta included:

  • Staff progress on web-based competency tests based on each of PEI's six recommended practices. The tests should be available in April. Three more recommended practices are scheduled for publication in 2008, complete with online tests.
  • Establishing a committee to explore offering scholarships to students.
  • Investigating the development of additional recommended practices. PEI staff will seek consultants and prepare budgets for the board to consider in March on the following subjects:
    • Preparing Fuel Storage and Dispensing Systems for Ethanol Blends and Biodiesel
    • Electrical Continuity Testing of Transport Vehicle Drop Hose
    • Installation of On-Water Marina Fueling Systems
    • Installation of Fixed Base Operator Aviation Fueling Systems
The majority of the distributor members we talked with at the convention told us business has been very good. Sales and profits are on course to meet or even exceed 2006 levels. Relatively low interest rates help. Both service and construction are strong.  Weak points include areas where the impact of the auto industry downturn have been felt (i.e., most of Michigan) and new car wash equipment. Generally speaking, members are heading into 2008 with a pretty good head of steam.

The initial steps for producing the 2008 edition of the Petroleum Equipment Directory have been taken. Last week all member companies were sent listing proofs via e-mail. Updates or additions can be made through the PEI web site at this time– members not utilizing the online tools will receive a fax form next month to submit changes.

Members who edit their listing online will notice a couple of new features:

  • Enhanced Security— only your primary contact (aka official representative) or web administrator can make changes to your listing.
  • Keywords— these do not show up in the printed Directory, but help web site visitors find your listing.
  • Individual Roster— all individuals who appear in your company profile will receive member benefits and services. But only those you select will appear in your Directory listing, up to a maximum of seven.

Log in to our web site and choose Company Profile from the member menu for more details. The 2008 Directory will be mailed to all PEI members in early February 2008.

BP's U.S. convenience retail unit
announced last week that it will sell all of its 700 company-owned and company-operated convenience stores. The majority of the sites will be sold to franchisees, while some will be sold to dealers and large jobbers. The sale of the convenience stores will be completed over the next two years. BP currently has 13,000 U.S. retail sites. The sale will eliminate 9,500 convenience store positions and 350 business support staff. The U.S. convenience retail office in Naperville, Illinois, will close.
Motiva Enterprises
, the company that markets Shell-branded gasoline in the eastern United States, has sold its interest in 54 sites in the greater Philadelphia and southern New Jersey areas to Bronson Oil Holdings for an undisclosed amount. The stations will remain Shell-branded under a Motiva wholesale supply agreement with ARFA Enterprises, a New Jersey-based wholesaler that has owners in common with Bronson.
The Automotive Lift Institute, Cortland, New York, announced that Gary Kennon of Rotary Lift/Dover Ind. Co., Madison, Indiana, will serve the organization for another year as past chairman of the board.

During September and October of 2004, the California Air Resources Board (CARB) conducted tests to determine the fuel permeation rates of gasoline dispensing facility vapor recovery hoses used in California. CARB staff made the results of its study available in 2005. Since then, CARB staff has re-evaluated the data and found that the previous conclusions drawn by CARB staff about vapor recovery hose permeation rates underestimated actual permeation rates due to misinterpretation of the data. CARB  issued a paper October 29 on its new findings entitled GDF Hose Permeation Study Review that is available at www.pei.org/tulsaletter.

Raymond Franklin "Frank" Grizzell
passed away in his home in Lexington, Kentucky, on November 8, four days shy of his 81st birthday. Frank was the founder and former owner of Kentucky Petroleum Equipment, Inc., of Lexington. He also served as president of PEI in 1984. A graduate of the University of Georgia, he served with the 11th Airborne Parachute Infantry Division in the Pacific Theatre during World War II. He spent his entire working career in the petroleum equipment industry. He is survived by his wife of 55 years, Edna (Eddie); four daughters and their husbands; two grandsons; and two sisters.


  • DeanHouston, Inc., Cincinnati, OH (aff)
  • DJS Consulting, Inc., The Center for Compliance Focus, Boca Raton, FL (aff)



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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.