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December 20, 2007 | Vol. 57, No. 25

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In This Issue

Dear PEI Member:

Yesterday President George W. Bush signed the Energy Independence and Security Act. The signing was expected after the Senate stripped a $21.8 billion tax package with incentives for renewable energy and energy efficiency from the bill, mostly paid for by repealing billions of dollars of tax breaks for the oil industry, to avoid a Republican filibuster and threatened presidential veto.

For PEI members, the most important section of the law is the one that establishes a five-fold increase in the use of biofuels in motor fuel to 36 billion gallons a year by 2022. Some 21 billion gallons must come from non-corn sources, such as wood chips, switchgrass and other cellulosic materials. The law does not include a mandate for the installation of E85 dispensers at retail outlets.

The Act also requires an increase in the Corporate Average Fuel Economy (CAFE) standard for passenger cars, light trucks and SUVs to a fleet-wide average of 35 miles per gallon by 2020, which will eventually reduce U.S. oil demand by 2 to 4 million barrels a day. It is the first increase to automobile efficiency standards in more than three decades.

The legislation also increases energy efficiency standards for appliances, lighting, and commercial and federal buildings.

PEI's Recommended Practices for Installation of Bulk Storage Plants (PEI/RP800-08) is currently available for public comment through January 15, 2008, at www.pei.org/RP800. A paper copy of the draft document was mailed December 20 to the official representatives of all PEI member companies in the Unites States and Canada.

Bush Signs Energy Bill

New Publications

Government Fleet Card Study

Ethanol Regulated Under UST Program


Don't miss out on the 2008 Young Executives Winter Conference!


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How to Test Cathodic Protection on Underground Storage Tanks has been made available by NACE International. The 120-page, spiral-bound book was written by Alex Ralston, president of PEI member Petcon, Inc., Richland, Mississippi. The book covers testing cathodic protection of underground storage tanks and piping covered under the federal underground storage tank regulations. The publication (Item #38477) can be purchased from the NACE web site: www.nace.org.

Recommended Practice for the In-service Inspections of Aboveground Atmospheric Fiberglass Reinforced Plastic (FRP) Tanks and Vessels (FTPI 2007-1) has been released by the Fiberglass Tank and Pipe Institute. The 27-page document includes information on inspector qualifications, periodic preventive maintenance inspections, certified external inspections, certified integrity inspections, internal inspections and alternate non-intrusive inspection methods. The document also includes report forms for monthly, annual and periodic preventive maintenance, certified inspections, and a section on aboveground fiberglass tank fabrication. To obtain a copy of the recommended practice, go to www.fiberglasstankandpipe.com.

Federal fleets have a statutory and regulatory duty to measure and report the use of alternative fuels under the provisions of the Energy Policy Act of 2005 and Executive Order 13423 (January 4, 2007). The majority of federal fleets purchase alternative fuels at commercial retail sites using GSA SmartPay® contracted fleet cards. The fleet cards collect extensive data regarding fleet operations and refuelingincluding fuel typefrom retailer point of sale equipment. But, as a report prepared for the Department of Energy's Federal Energy Management Program points out, the fuel type reporting from retailer POS systems is only accurate 40 to 50 percent of the time. As a result, federal fleet managers cannot use the reports available from fleet card companies to demonstrate compliance with the requirements to use alternative fuels in alternative fuel vehicles

The report, prepared by Vista Consultants, LLC, examines the current status of the fleet card industry from card to fleet manager and proposes several approaches to solving the reporting issues encountered when alternative fuels are purchased. Click here for a copy of the 81-page report.

In response to questions from members of the House Energy and Commerce Subcommittee on Environment and Hazardous Materials, George Gray, EPA assistant administrator for research and development, said that an underground storage tank containing an ethanol-gasoline blend is fully subject to UST regulatory requirements. Gray said, "Pure ethanol is not a regulated substance; however, gasoline is a petroleum product, and petroleum is a regulated substance. Therefore, an [underground storage tank] storing E85 is a regulated UST, because it stores an accumulation of regulated substances."

The International Code Council
has named the following PEI-associated people to its 2008 UST/AST Exam Development Committee: Roy Creley, Lakes Region Environmental; Richard J. Pochman, Mascott Equipment Company; George Watkins; and Bob Young, Petroleum Equipment Institute. Each will serve a three-year term.
Mark VII Equipment Inc., the U.S. subsidiary of WashTec AG of Germany, announced earlier this month that Craig Campbell has been named director of business development for distributor markets at WashTec. Campbell will relocate to Augsburg, Germany, and be responsible for business development in indirect markets in Western Europe, the Middle East, Africa, Latin America, Australia and New Zealand.
Valero Energy Corp., San Antonio, Texas, announced that Greg King has resigned as president of Valero Energy and will leave the company December 31, 2007.
Guardian Fueling Technologies has named Mike Durkin manager of the company's Fort Myers, Florida, branch operation. Durkin formerly worked for Baird Petroleum, Gilbarco/Veeder-Root and Red Jacket (Marley Pump).
Butler Capital Corporation, Hunt Valley, Maryland, has promoted Shirah Kellman to the position of business development manager. In her new position, Kellman assumes oversight of the company's Car Care Finance and Convenience & Gas Finance Divisions.

We have been asked by two members if there is any data available on the effect of ethanol blends (E10 and E85) on onboard vapor recovery canisters. We are not aware of any. Members with information on the subject can email Bob Renkes at rrenkes@pei.org

The Arizona Daily Star reports that the Pima County Board of Supervisors is considering requiring Stage II vapor recovery in the unincorporated areas in the county. Stage I vapor recovery has been required in the county since 1994. On December 18, the supervisors unanimously voted to convene a special committee to study the Stage II issue and report back in three months, and to offer a recommendation in six months.

Deadline for registration and housing for the PEI Young Executives 2008 Winter Conference is January 7.
The conference will be held at the Westin Cancun from February 7 to 9. Steven S. Little will present the program on The Seven Irrefutable Rules of Small Business Growth. Go to www.pei.org/ye for more information.
UPP Systems of PetroTechnik Inc.
, with a U.S. sales office in Cresskill, New Jersey, has named Mike Long & Associates, Inc., Mooresville, North Carolina, as its Manufacturer's Representative of the Year.

Colbea Enterprises LLC
has acquired Motiva's interest in 34 Shell-branded sites in Rhode Island. Colbea Enterprises was a joint venture with equal ownership by Motiva and East Side Enterprises LLC.
CEFCO Convenience Stores, Temple, Texas, has purchased Deweese Enterprises, Inc., Meridian, Mississippi, and its chain of 45 Super Stop! convenience stores. CEFCO, which had 78 stores prior to the acquisition, is the retail arm of Fikes Wholesale, Inc.
Motiva Enterprises has sold 10 of its Shell-branded retail locations in the Houston area to The Lewis Group for an undisclosed price. Lewis has operated Shell stations throughout the Houston area for more than four years.

Brazil's Petrobras and South Korea's Samsung Group have signed a memorandum of understanding calling for joint technical, financial and trade studies for future production of sugar cane-based fuel (ethanol) for the South Korean market.
Repsol YPF SA plans to open 10 to 15 stations a year in Portugal over the next 5 years.--PetroPlaza, December 11, 2007.

Leo J. LeBlanc
, former owner of Enterprise Brass Works (EBW) and Advanced Polymer Technology Inc., died December 18. He was 81. He bought EBW in 1978 and founded APT in 1991. He sold both companies to Franklin Electric in 2000. Leo served on the PEI Board of Directors from 1990 to 1992. He was named Michigan Small Business Person of the Year and national runner-up Small Business Person in 1991. He was preceded in death by his wife, Olga. He is survived by a son, Pat, and two daughters, Cathy Goeckel and Lisa Foster.

Leo was known for his tenacity, bluntness and fierce competitive spirit. Everyone who knew him has at least one "Leo LeBlanc" story to relate– some, perhaps, not particularly flattering, but classic Leo nonetheless. I suspect he would want to be remembered in no other way.


  • Mike Villa, United Fuel & Energy Corp., Midland, TX (O&E)
  • Chandramouli Thandavan, Emarat-OE, Dubai, United Arab Emirates (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.