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April 10, 2008 | Vol. 58, No. 06

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In This Issue

Dear PEI Member:

The PEI Board of Directors met March 28-29 in Savannah, Georgia, and made a number of policy decisions related to membership services and association operations. Here is a summary.

New Recommended Practice. The directors considered six new recommended practice topics and approved one for immediate development: Installation of On-Water and Off-Water Marina Fuel Systems. Members interested in participating on this recommended practice committee should contact Bob Young at PEI ( to learn more. All appointments to the committee will be made this summer by PEI President Bruce Larson.

Foundation to Award College Scholarships. A foundation will be formed to provide a mechanism where scholarships can be awarded to deserving students entering college. A formal announcement of the scholarship program will be made after the foundation is established.

Formation of a PEI Advisory Consultant Group. PEI will contract with a group of experts who would be available for brief telephone consultations with members at no charge. The service will be available to all members and likely cover such topics as inventory, credit and collections, personnel, financial improvement, technology, sales, safety, regulations/legal, family business issues, strategic planning, and tax.       

Committee Recommendations Approved. Reports from PEI's Education, Strategic Long Range Planning, Safety, Convention Advisory, and Young Executives Committees were reviewed and approved. Some of the committees' recommendations of general interest to PEI members include:

PEI Midyear Board Meeting

Purchasing/Inventory Managers Conference






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  • A budget of $2,304,650 for the fiscal year that began April 1. No dues increase for 2008-2009.
  • The 2009 PEI Young Executives Conference to be held February 5-7, 2009, in Costa Rica (tentative).
  • Dos and Don'ts safety brochures converted to PDF files and offered free of charge online.
  • Two conferences in 2009: One for Construction & Service Managers and the other for Branch Managers.
  • PEI sponsorship of the University of Industrial Distribution, a unique educational program designed specifically for distributors and manufacturers marketing through industrial distributors. 
  • Explore the idea of holding events designed specifically for PEI members at select regional petroleum marketer shows.
  • Online tests designed to assess knowledge of PEI's recommended practices.

PEI President Bruce Larson, Clarkston, Michigan, presided at the midyear meeting. Other officers and directors attending the meeting included:
Blair Shwedo, Charlotte, NC (Vice President)
Peter Ward, Riviera Beach, FL (Treasurer)
Calvin Bishop, El Paso, TX (Immediate Past President)
Bob Renkes, Tulsa, OK (Executive Vice President)
John Scandurra, Newburgh, NY (District 1)
Scott Hafer, Reading, PA (District 2)
Don Wood, Orlando, FL (District 3)
Andy Mercer, Jackson, MI (District 4)
Susan Maples, Knoxville, TN (District 5)
Terry Cooper, Marion, IA (District 6)
Duane Grippe, Fargo, ND (District 7)
Richard Dixon, Wichita, KS (District 8)
Bob Hill, Tulare, CA (District 9)
Randy Dixon, Billings, MT (District 10)
Jeanne Murphy Murck, Herndon, VA (District 11)
Martin Pettesch, Elizabeth, NJ (District 12)
Dick Basham, Poca, WV (District 13)
Bob Dendy, Houston, TX (Affiliate Division)
Steven Hamilton, Basehor, KS (Service & Construction Division)
Connie Dooley, Tulsa, OK (Director of Administration)

Over 60 individuals are currently registered for PEI's 2008 Purchasing and Inventory Managers Conference scheduled for May 16-17 at the Wyndham Chicago O'Hare in Rosemont, Illinois. Advance registration for the conference ends Friday, April 11. After that time, member price increases from $295 per person to $395 per person. You can download a copy of the conference brochure which includes housing information, general session and roundtable discussion topics, and speaker information by visiting A list of companies represented at the conference is also available online.
Sponsors for the 2008 Purchasing and Inventory Managers Conference include Central Illinois Manufacturing; ESCO Services, Inc.; Morrison Bros.; RDM Electronics; PMP Corporation; and Riverside Steel, Inc. PEI can accommodate two additional sponsors. For information on participating as a sponsor, please contact Sondra Sutton at (918) 494-9696.

Brazil's largest sugar and ethanol group, Cosan, said last month it had set up a joint venture company with Brazilian firms Copersucar and Crystalsev to build and operate a dedicated ethanol pipeline between Paulinia and the coast. Meanwhile, state-controlled oil company Petrobras said it will carry out a technical study for the construction of a 570-mile ethanol pipeline linking plants in Mato Grosso do Sul to a southern port in Parana. Brazil has several pipelines that can transport both gasoline and ethanol, but until recently, ethanol production has been too small to justify building a pipeline dedicated to ethanol transportation alone. Today, ethanol is mainly brought by truck from sugarcane producing states in the interior to the major cities of Sao Paulo and Rio de Janeiro on the coast.
Marathon Oil plans to convert to 100 percent ethanol-blended fuel at 16 of its Midwest terminals beginning May 1.
Alternative Fuel Distributors
unveiled plans last month to build and operate 1,000 convenience stores that will sell E85. The company expects to open the first 100 stores by the first quarter of 2009 in Pennsylvania, New Jersey, Maryland and Delaware. Company-owned convenience stores will be branded under the "Go Green Station" trademark. Alternative Fuel Distributors plans to sell shares through an initial public offering as a way to raise funds to help pay for the construction of the 1,000 stores.
Energy Information Administration data shows that in 2007 ethanol's market penetration in nine southern and southeastern states—Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina and Tennessee—was essentially zero. That situation is changing quickly as marketers in those states begin to sell E10 to take advantage of tax incentives and relatively high gasoline prices. Hess, Marathon, Shell and Murphy have already begun selling E10 in Florida. RaceTrac has begun selling ethanol blends in Florida and Georgia. Marathon began blending ethanol last year in Tennessee and South Carolina, and plans to add Georgia, North Carolina, Alabama and Florida in 2008, according to press reports.   

The PEI Aboveground Tank Installation Committee is in the process of revising PEI's Recommended Practices for Installation of Aboveground Storage Systems for Motor Vehicle Fueling (PEI/RP200-03). Any interested party is eligible to comment and offer changes to the document. If you have suggestions or recommendations for revisions to RP200-03, you can submit them online or download a form to mail or fax at Instructions for completing the form are also available on this website. All comments must be received at PEI by Wednesday, April 30, 2008, to be considered by the committee. If you have any questions or need further information, contact Bob Young ( or call 918-494-9696.

A survey of 52 retail gasoline stations on Long Island has found continuing contamination from methyl tertiary butyl ether (MTBE), four years after the gasoline additive was banned from New York, the state Department of Environmental Conservation (DEC) reported in a recently conducted study. Testing in the survey uncovered 32 petroleum spills that had not been previously reported, DEC said. The 52 gas stations, surveyed between 2002 and 2006, did not have known histories of MTBE-blended gasoline spills and were located in an aquifer recharge zone, DEC said. The report on MTBE contamination has been posted at the New York DEC website.

Sun Capital Partners Inc.
, Boca Raton, Florida, has acquired Worsley Operating Cos. and Li'l Cricket Food Stores Inc. Worsley, headquartered in Wilmington, North Carolina, operates 124 convenience stores in North and South Carolina. Li'l Cricket, Spartanburg, South Carolina, owns and operates 88 convenience stores in South Carolina.
Sinclair Oil Corp., Salt Lake City, Utah, has purchased 14 Fiesta Mart convenience stores in Oklahoma from Arkansas Valley Petroleum Inc.
Alimentation Couche-Tard Inc.
, Laval, Quebec, has agreed to acquire 15 Speedway convenience stores in central Illinois from Speedway SuperAmerica LLC.
Motiva Enterprises has sold its interest in 22 Fairfield, Connecticut-area Shell-branded gasoline stations to Connecticut Dealers Stations, and 372 Wilton Associates.

Emco Wheaton Retail Corporation, Wilson, North Carolina, has appointed Porter Associates, Inc., West Chester, Pennsylvania, as its representative in the Northeast. Porter Associates will provide representation in Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, Rhode Island, Vermont, eastern New York, eastern Pennsylvania, and Washington, D.C.
Craig McNeill has tendered his resignation as president of OPW Fueling Components, Cincinnati, Ohio, effective June 30, 2008. McNeill worked for OPW for more than 22 years, serving the last five years as president. Dover Fluid Management has begun a search process to recruit a new president for OPW Fueling Components.
FLEX-ING, INC., Sherman, Texas, has appointed Doug Adams/Jimco to represent its company in Oklahoma, Texas and New Mexico.
The Steel Tank Institute and Steel Plate Fabricators Association Divisions of STI/SPFA, Lake Zurich, Illinois, have hired Vivian Bartt as manager of communications and administration. 

Edward George Ettl
, president of Badger Oil Equipment Co., Milwaukee, Wisconsin, died March 21 after a short battle with cancer. He was 76. Ed spent 16 years with oil companies and industrial supply firms before joining Badger in 1969, where he served first as vice president and then president. He was very active in PEI over a 30-year period, serving on several committees, as a director representing his distributor district, and as PEI president in 1986. Ed will be remembered for his steadfast support of PEI and its programs. Survivors include his wife, Arlene, and four children. Two sons, Steve and Doug, and a son-in-law, Jeff Cain, currently work for the company.

Northeast Petroleum Technologies, Inc.
, Schenectady, New York, celebrated its 10th anniversary March 19, 2008.
Enrique Freyre S.A.C., Lima, Peru, will observe its 80th year in business in November 2008.

The Georgia Tank & Environmental Contractors Association (GTEC) will offer a three-day cathodic protection testers certification course May 19-21 in Atlanta. On May 22, experienced cathodic protection testers can take "Advanced Cathodic Protection Troubleshooting and Repair." PEI members receive a discount. For more information, contact Bill Greer at or call GTEC: (770) 426-1133. 

Security lock manufacturer
. CompX Security Products, P. O. Box 200, Maudlin, South Carolina 29662, has applied for manufacturer division membership. Craig Lambert is marketing director for the firm, which was established in 1903. The company manufactures high security locks for CRIND doors and lower doors on gasoline dispensers. They are sold through distribution. Sponsored for PEI membership by Gregg Miller, NWPump, Portland, OR.
Missouri environmental consulting firm
. Williams & Company Consulting, Inc., 9237 Ward Parkway, Suite 220, Kansas City, Missouri 64114, has applied for affiliate division membership. Patrick Vuchetich is senior project manager for the firm, which was established in 1929. The company provides environmental consulting for the petroleum marketing industry. Sponsored for PEI membership by Richard D. Dixon, Hoidale, Wichita, KS.
Quebec software provider. LOC Software, 1650 Place de Lierre, Laval, Quebec H7G 4X7, has applied for affiliate division membership. Julie Veniez is the primary contact for the company, which was established in 1984. LOC Software provides software from different partners to provide total store control in multiple types of environments. Sponsored for PEI membership by Paul Barnabe, Multipro, Montreal, PQ.


  • OneSource Petroleum Supply, Stuarts Draft, VA (dis)
  • Liquid Automation Systems, LLC, Pelham, AL (mfr)
  • Transtank Pty. Ltd., Brendale, Queensland, Australia (mfr)
  • Lemelin Environmental Services, Inc., Chicopee, MA (S&C)
  • Giles Construction, Ltd., Maumee, OH (S&C)
  • Coulson Petroleum Services, North Little Rock, AR (S&C)
  • Rappahannock Petroleum LLC, Winchester, VA (S&C)
  • Alpolic Materials/Mitsubishi Chemical FP America, Inc., Chesapeake, VA (aff)
  • Bison Commercial Leasing, Syosset, NY (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.