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August 12, 2008 | Vol. 58, No. 14

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In This Issue

Dear PEI Member:

The U.S. EPA has issued a letter to gasoline retailers, warning that it is illegal under the Clean Air Act (CAA) to sell ethanol blends above E10 for use in gasoline-only vehicles and engines. Ethanol blends up to E85 may be sold, of course, for use in flexible-fuel vehicles and engines.

The CAA authorizes EPA to assess significant civil penalties for improper blending of fuel and for misfueling motor vehicles and non-road engines. To ensure proper fueling, EPA suggests that retail gasoline stations selling gasoline blended with more than 10 percent ethanol for use in flexible-fueled vehicles or engines provide labels on dispensers and restrict access to pumps dispensing blends over E10. EPA cites card-lock systems as a way to restrict access and reduce the likelihood of violations. The letter from EPA goes on to say that setting other pumps away from those pumps dispensing fuel containing greater than 10 percent ethanol, in combination with labels and card lock systems, "could also help prevent violations." It is important to note that these are only voluntary recommendations, and not regulatory requirements.

In a related matter, a recent survey of petroleum equipment firms compiled by PEI suggests that less than 10 percent of the refueling facilities in the United States are presently capable of storing, metering and dispensing E20 without eventual equipment failure due to incompatibility with E20. Survey respondents cited the following equipment currently in use at existing refueling sites that they believed needed to be retrofitted to accommodate E20: dispensers, submersible pumps, hanging hardware, release-detection equipment, tanks, piping and spill containment. Those responding to the survey were not sure if the equipment currently in use could store, meter and dispense E15 without developing compatibility problems somewhere down the road. PEI shared the findings of its survey with EPA officials July 30.

The Environmental Protection Agency announced August 7 that it denied a request from Texas Governor Rick Perry to cut the federal biofuels mandate in half for a year. The amount of biofuels required by law remains at 9 billion gallons in 2008 and 11.1 billion gallons in 2009. Perry asked EPA in April to drop the Renewable Fuels Standard (RFS) to 4.5 billion gallons in 2008 because it was artificially raising food prices. EPA denied the waiver request because it did not find that the RFS caused "severe economic harm."

A bill offered by US Rep. Rahm Emanuel (D-IL) would compel U.S. automakers to make 10 percent of their fleets run on natural gas by 2018
. The measure would also offer new incentives to make natural gas more readily available for drivers, and could enable the installation of natural gas dispensers at some 20,000 gasoline stations across the United States.--Oil Daily, August 4, 2008. 

EPA Warns About Unauthorized Ethanol Blending

EPA Rejects Ethanol Waiver Request

Alternative Fuels

In This Issue

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India has reportedly shelved plans to develop a biofuels industry amid growing concern about the role of biofuels in rising food prices and their effect on the environment. A government committee set up to consider plans to produce biodiesel in India rejected the proposal, according to India's Economic Times.
, Brazil's state oil company, opened its first biodiesel plant July 29. The plant, located in the northern state of Bahia, has production capacity of 57 million liters per year. Petrobras will build two additional plants with equal capacity this year in the states of Minas Gerais and Ceara. By 2012, Petrobras expects to produce 940 million liters of biodiesel annually. Brazil's government raised the required biodiesel content of diesel fuel from 2 percent to 3 percent in July, and by 2013 plans to increase the blend to 5 percent.

A new list of contacts for each California air pollution control district
who can provide information on enhanced vapor recovery (EVR) is available here.
"The country will lose 5,000 gas stations this year, more than twice as many as last year and the worst dropout rate since the 2001 recession."--The Kiplinger Letter, July 25, 2008.
The results of a California Air Resources Board (CARB) study of emissions from ORVR vehicles at a facility with no Stage II vapor recovery is now available. The study is entitled Measurement of Gasoline Vapor Emissions from Vehicles Equipped with Onboard Vapor Recovery.

Dover Fluid Management, a division of Dover Corporation, has named David Crouse president of OPW Fueling Components. Crouse has 17 years of experience in the petroleum equipment industry. He spent 6 years with OPW Fueling Components in various capacities, initially as the vice president of international sales. He has served as president of OPW Fuel Management Systems and later as president of OPW Fluid Transfer Group.

has bought Akpet, a Turkish gasoline retailer which supplies petroleum products to 693 dealer customers. 
Albertson's LLC, Boise, Idaho, has announced that it has sold its 15 fuel centers in Florida to DBR Lease Exchange LLC. With the sale of the fuel centers, Albertson's has left the fuel market to concentrate on selling food and drugs.
Heartland Inc., Cumberland Gap, Tennessee, has signed a letter of intent to acquire the stock of Lee Oil Co., Lee's Food Marts, and Lee Enterprises Inc., Middlesboro, Kentucky. Lee Oil operates 14 Lee Food Mart locations in Tennessee and Kentucky.
Harbinger Capital Partners, a private equity firm, has taken a 6.6 percent stake in Sunoco, Philadelphia, Pennsylvania.
EZ Energy Ltd., a subsidiary of EZ Energy USA Inc., Mansfield, Ohio, will buy 15 stations and convenience stores in central Pennsylvania from BP Products North America.

Preliminary data shows that US oil consumption is down 860,000 barrels per day in the first seven months of the year compared with the same period last year. Overall global oil demand is still rising thanks to China and the Mideast, and was up an estimated 540,000 barrels per day in July. The big question for gasoline retailers in the United States now is whether the lower demand is simply the result of consumers cutting back temporarily because of high prices or whether the changes are structural.

Harry Harlan
, a 40-year veteran of Lincoln Industrial, died last month at his home in Rosharon, Texas, after a long battle with cancer. He started with the company as a salesman in Southern California and received numerous promotions over his long career. Harry is survived by his wife of 41 years, JoAnn; a son, Wade; and two daughters, Shannon and Devon.
William R. (Bill) Rasmussen, founder of Nu*Star, Inc., Shakopee, Minnesota, passed away peacefully July 29 in his home. He was 74. Bill was an original investing board member of the Minnesota North Stars, was active in varied business pursuits and philanthropic interests, and led Nu*Star until the time of his death. Survivors include his wife, Joette; nine children; and twelve grandchildren.

Massachusetts service and construction company
. Bolduc Mechanical Services, Inc., 20 Sylvester Hamilton Road, Chester, Massachusetts 01011, has applied for service and construction division membership. Dennis K. Bolduc is vice president of the firm, which was established in 1985. Bolduc installs and services automotive lifts, lubrication equipment, exhaust systems and compressors. Sponsored for PEI membership by John Nolan, JWKennedy, East Providence, RI.
Ohio petroleum storage tank contractor. Genesis Contracting, Inc., 6505 Angola Road, Holland, Ohio 43528, has applied for membership in the service and construction division of PEI. James Gordon is the chief financial officer for the firm, which was established in 1998. Genesis designs, permits, installs and removes underground and aboveground storage tank systems. Sponsored for PEI membership by Bruce F. Larson, OWLarsonCo, Clarkston, MI.


  • Atris Petroleum Machinery Co., Ltd., Zhengzhou City, Zhengzhou, China (mfr)
  • Strandberg Associates, Menlo Park, CA (aff)
  • Ramon Casillas Navarro, Autoservicio Tesistan, Zapopan, Jalisco, Mexico (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.