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June 2, 2008 | Vol. 58, No. 9

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In This Issue

Dear PEI Member:

The U.S. Environmental Protection Agency (EPA) is in the initial planning stages of examining the underground storage tank (UST) regulations that were finalized in 1988 and have asked PEI to provide input on the process.

There are four primary areas where EPA will concentrate its review of the regulations:

  • Technical Fixes - This includes corrections of a technical nature, such as areas where the regulations reference outdated standards.
  • Deferrals - The 1988 regulations contain deferrals of some UST systems from some or most of the technical requirements. Examples include emergency generator USTs (leak detection only), airport hydrant fueling USTs, and field constructed USTs. The decision would be to either continue to defer, regulate or exempt currently deferred systems. There are a few categories of tanks excluded by statute and not on the table for review. They include farm or residential tanks 1,100 gallons or less storing motor fuel for non-commercial purposes, tanks storing heating oil for consumptive use on the premises where stored, and aboveground tanks.
  • Regulatory Gaps - There are a few areas in the regulations where, even after years of implementing the requirement, releases to the environment can still occur. Gaps in areas such as testing requirements for spill buckets and sumps, leak detection for spill buckets and dispenser sumps, vapor releases, installation testing, and applicability to newer alternative fuels could be examined.
  • Deregulation - Regulations that impose a burden on the tank owner and do not improve environmental protection could be revised.

EPA Examining UST Regulations

Higher Ethanol Blends Studied

PEI Board Election Deadline Nears

In This Issue

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PEI has been invited to participate in the process of identifying potential targeted changes to the regulation. PEI members' comments and suggestions to improve the regulations will be collected and compiled by PEI, and then presented to EPA later this month. Members who wish to have input into the process should submit suggestions to Bob Renkes by June 18. Please confine the comments to the four areas identified by EPA and make certain they cover the federal, not state, regulations.

Ethanol proponents are expected to file a long-awaited waiver request asking the Environmental Protection Agency (EPA) to allow a larger percentage of ethanol (15 to 20 percent) into conventional gasoline. Minnesota and the Renewable Fuels Association are developing the waiver request, which if granted by EPA would apply nationally. Currently under the Clean Air Act, EPA allows gasoline to contain no more than 10 percent ethanol.

Meanwhile, the Department of Energy (DOE) and EPA are studying the possible increase in the amount of ethanol allowed in gasoline. Speaking at a forum of the Society of Automotive Engineers, Brian West, a fuels researcher at DOE's Oak Ridge National Laboratory, said that even if every gallon of gasoline contained 10 percent ethanol, it would not be enough to comply with the Energy Act's requirement that the nation's motor fuel supply include 36 billion gallons of renewable fuel by 2022, up from 4.5 billion gallons in 2007. The oil industry estimates that all petroleum in the United States will be an E10 blend by 2010.

The ethanol industry is pushing for higher blends before supply outstrips demand. There seems to be a sense of urgency to file the waiver request amid fears from ethanol proponents that the next presidential administration may not be as receptive to the idea or that Congress may tweak or even undo the Energy Act's renewable fuel standard.

Opponents of the waiver request warn of unintended consequences of increasing ethanol in gasoline, including increases in ozone and other pollution, and damage to vehicles and their engines due to ethanol's corrosive effects.

It is time to begin the process of electing members to the PEI Board of Directors. Under PEI's election procedure, the official representative or a duly appointed alternate must request to have his/her name included on the ballot. A form for that purpose was sent May 22 to the official representatives of PEI member companies from the even-numbered membership districts of the distributor and manufacturer divisions and from the affiliate division. The form must be received in Tulsa by the close of business on Thursday, June 12, for the name to appear on the ballot.

7-Eleven Inc.
, Dallas, Texas, said that it plans to convert approximately 475 company-operated convenience stores in the greater Orlando, Tampa/St. Petersburg, Daytona and Fort Myers areas into franchised operations. The company said that nearly 4,100 of the firm's 5,400 stores in the United States are now franchised.
Worsley Operating Company, Wilmington, North Carolina, has finalized its acquisition of Li'l Cricket Food Stores Inc., which operates 88 convenience stores in South Carolina.
Valero Energy Corp., San Antonio, Texas, has signed an agreement to buy 72 convenience stores and fueling kiosks in Arizona, Colorado, Louisiana, New Mexico and Texas from Albertson's LLC, Boise, Idaho. Albertson's will continue to operate fuel centers throughout Florida.
Uni-Marts LLC and six subsidiaries have filed for Chapter 11 bankruptcy protection. The State College, Pennsylvania-based company operates a network of 283 company and dealer-operated convenience stores and gasoline stations in Pennsylvania, New York and Ohio.
Reliance Industries Ltd. recently closed down its 1,432 fuel stations in India because it has not been able to compete with state-owned firms that sell gasoline and diesel at subsidized prices.
New West Petroleum LLC, Sacramento, California, will leave the retail petroleum business by selling its 30 retail sites in California. The company plans to expand its wholesale fuel business.

. The Indiana Department of Agriculture has increased the amount of money it will provide retailers, commercial refueling locations, cities, towns, counties and townships to install E85 fuel dispensers from $5,000 per dispenser location to $20,000. The state has nearly $1 million in grant money available.

Ameron Fiberglass Pipe
, Houston, Texas, has appointed Mark Wickman as its fuel handling market manager. He has extensive experience in the distribution and manufacturing aspects of the petroleum marketing industry. Mark will be based in the Dallas Metroplex.
RDM Industrial Electronics, Inc., Nebo, North Carolina, has appointed RJ Ames Companies as its representative in Minnesota, North Dakota and South Dakota.
Bob Shaw Associates, Diamondhead, Mississippi, now represents S. Bravo Systems Inc., Commerce, California, in Mississippi, Louisiana, Arkansas, Alabama and western Tennessee. 

Turkey distributor
. Saben Akaryakit ve Teknik Malzemeler San. Tic. AS, Saglik Cad. IDE Is Merkezi No. 13, Kat. 2, Gokturk-Kemerburgaz, Istanbul, Turkey 34993, has applied for distributor division membership. Seckin Ozdemir is a board member of the company, which was established in 1953. The company represents EBW, FEPetro and Roseman. The firm installs and services equipment across Turkey. Sponsored for PEI membership by Jay Walsh, Franklin, Madison, WI.
Illinois management consulting company. JMM Management Group, LLC, 2496 Technology Drive, Elgin, Illinois 60124, has applied for affiliate division membership. Jon M. Marinas is president of the firm, which was established in 2002. The company provides comprehensive regulatory/environmental compliance and information technology services. Sponsored for PEI membership by Brad Hoffman, Tanknology, Austin, TX.
New York fuel additive company. Kinetic Fuel Technology, 1205 Balmer Road, Youngstown, New York 14174, has applied for affiliate division membership. Timothy Booth is president of the firm, which was established in 2003. The company provides a bio-based formulation developed to eliminate water contamination in fuels with additives to improve the cleaning effect. Sponsored for PEI membership by Craig Smith, Smith&Sons, Chinchilla, PA.
Missouri service consulting firm. Occu-Tec, 6501 East Commerce Boulevard, Suite 230, Kansas City, Missouri 64120, has applied for service and construction division membership in PEI. Doye R. Ewert is project manager for the firm, which was established in 1983. The company offers comprehensive fuel system testing, maintenance and storage solutions, as well as turn-key emergency and disaster fuel services. Sponsored for PEI membership by Brian Berkle, ValleyTank, Houston, TX.
Mississippi installation and service company. PetroTech, 30055 Bickerstaff Road, Nettleton, Mississippi 38858, has applied for membership in the service and construction division of PEI. Steven B. Gilmore is an owner of the firm, which was established in 2006. The company installs and services petroleum marketing equipment. Sponsored for PEI membership by Rod Smith, Freedom, Kennesaw, GA.


  • Herrington Bradley Construction, Inc., Miami Gardens, FL (S&C)
  • Peters Petro Services, Inc., Reva, VA (S&C)
  • Surge Solutions Group, Inc., West Palm Beach, FL (S&C)



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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.