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August 26, 2008| Vol. 58, No. 15

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In This Issue

Dear PEI Member:

It has been a little over two years since refineries were required to produce a diesel fuel with much lower sulfur levels (S15) than previously used (S500). The switch-over went smoothly and, quite frankly, we didn't expect to see any problems in storing, metering or dispensing the new ultra low sulfur diesel fuel. We are now, however, receiving reports that the new fuel is adversely affecting some petroleum equipment.

It seems in some cases that ultra low sulfur diesel is corroding metal components of the diesel storage system and causing filters and strainers to clog with rust. One member investigated several storage systems--all with fiberglass tanks--and found corrosion in the tank riser pipes, inside the STP housing, at the pipe above the STP and the pipe fittings at the STP, and inside the strainer housing. Another member reports rust inside the dispenser fittings before the strainer. Contributors to the PEI Forum ( report gasket and seal problems in pumps and meters and rust clogging PLLDs, functionals, etc.            

The reports we are receiving do not appear to reference isolated instances, but instead identify a problem that ultra low sulfur diesel marketers and users might have to deal with as long as they use fuel made to the ASTM D-975 specification. Comments are invited.

Runoff elections have been completed in PEI Manufacturer Districts 10 and 12, and the Affiliate Division. The three newly-elected directors, together with the four elected last month, will join eight incumbent directors on the 2008-2009 PEI Board of Directors. The seven directors will be installed October 6 as members of the PEI Board during the association's annual membership meeting and lunch at PEI's convention in Chicago. The three members elected last Friday to the PEI Board of Directors are:

Compatibility Problems with ULSD?

PEI Runoff Election Results

Chicago Convention Registration List Available

In This Issue

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  • Al Eichorn, PMP Corporation, Avon, Connecticut. He will represent Manufacturer District 10. Eichorn will succeed Randy Dixon, Dixon Pumps, Billings, Montana.
  • Robert J. Milo, Universal Valve Company, Inc., Elizabeth, New Jersey. Milo will represent Manufacturer District 12 and succeed Martin Pettesch, also from Universal Valve Company.
  • Erik Long, Walsh, Long & Company, Inc., Naperville, Illinois. Long will represent the Affiliate Division. He will succeed Robert Dendy, Petro Energy, Inc., Houston, Texas. 

Preregistration for PEI's Convention October 5-7 in Chicago is up 3 percent compared to the same time last year. Log in here to view and download the most recent list of those attending the convention.

The Automotive Lift Institute, Inc. (ALI) is in the process of revising its Standard for Automotive Lifts - Safety Requirements for Installation and Service. This standard provides guidance to the installer and service technician for the installation and service of automotive lifts including the required qualification, training, reporting and documentation for installers and service personnel. The standard also provides sample forms and checklists for use by installers and service personnel attempting to comply with the standard.

Brazil's Ultrapar Participacoes
said August 14 that it will buy Texaco's fuel distribution assets in Brazil for about $715 million. Texaco will sell a network of about 2,000 service stations and 48 terminal operations. After the deal is completed, Ultrapar will have more than 5,000 service stations throughout the country, which will give it about 23 percent of Brazil's fuel market.
Ireland's DCC said it reached an agreement to buy Chevron's fuel distribution subsidiary in the United Kingdom for $41 million.
Brazil's Petrobras has signed a deal to buy Exxon Mobil Corp.'s stake in Esso Chile Petrolera for $400 million. The assets include 209 service stations, among other things.

Petroleum Solutions Inc.
, headquartered in McAllen, Texas, has hired Mike Vegeais as corporate sales manager. Vegeais, who has spent the last 28 years with Gilbarco in various sales management roles, will join PSI September 1.
AE Biofuels
opened an integrated cellulosic ethanol demonstration plant earlier this month in Butte, Montana. The 9,000 square-foot facility is the first to integrate the use of both cellulose- and starch-based feedstocks. 

New York distributor
. Franklin Equipment Services Corporation, 22-04 119th Street, 2nd Floor, College Point, New York 11356, has applied for distributor division membership. Sarah W. Klein is president of the firm, which was established in 2007. The company represents B&KTkGauge, CNIMfg, CntmtSoltn, Diversified, Federal, Fibrelite, Flex-Ing, Formex, Gasboy, GasAdProd, Gilbarco, HuskyCorp, LSI, OPW-FC, PetroMeter, PMPCorp, Universal, VST, Vaporless and VeederR in the New York City metropolitan area. Sponsored for PEI membership by Robert J. Milo, Universal, Elizabeth, NJ.
Colombia distributor
. AIC Ltda., Calle 70Abis #17-29, Bogota, Colombia, has applied for distributor division membership. Juan Carlos Lopez is the general manager for the firm, which was established in 2003. AIC represents Federal, Franklin and LSI. Sponsored for PEI membership by Jay Walsh, Franklin, Madison, WI.
Positive displacement pump manufacturer
. Roper Pump Company, P. O. Box 269, Commerce, Georgia 30529, has applied for manufacturer division membership. David E. Neisler is marketing manager for the firm, which was established in 1857. The company not only manufactures positive displacement pumps, helical gear pumps, and progressive cavity pumps, but also designs and develops custom engineered pumps which are sold through PEI distributors. Sponsored for PEI membership by Phil Farrell, DoublCheck, Kansas City, MO. 

California manufacturers representative
. William Robbins Associates, Inc., P. O. Box 1936, Lafayette, California 94549, has applied for affiliate division membership. Bill Robbins is president of the firm, which was established in 1986. The company represents Ameron, Cim-Tek, PMPCorp and Xerxes. Sponsored for PEI membership by Al Eichorn, PMPCorp, Avon, CT, and Kristi Peterson, Xerxes, Minneapolis, MN.
Alberta service and construction firm. Bar W Petroleum & Electric, Division of United Farmers of Alberta, 200 Burnt Lake Business Park, 28042 Highway 11, Red Deer, Alberta T4S 2L4, has applied for service and construction division membership. Darcy C. Teichroeb is senior manager for the firm, which was established in 1988. The company specializes in computerized fuel systems and provides electrical contracting and service. Sponsored for PEI membership by Paul McKay, KellrEqLtd, Calgary, AB.
Indiana pump service firm. Tech Petroleum, 7525 Woodmar Avenue, Hammond, Indiana 46323, has applied for service and construction division membership. Chodray A. Akbar is president of the firm, which was established in 1997. The company provides parts, offers service, and repairs dispensing pumps and signage. Sponsored for PEI membership by Doc Boehme, BottomLine, Osakis, MN, and Rod Smith, Freedom, Kennesaw, GA.
Maryland storage and dispensing systems installer. Total Environmental Concepts, Inc., 15 Park Avenue, Gaithersburg, Maryland 20877, has applied for membership in the service and construction division of PEI. Theodore Bedell III is president of the firm, which was established in 2000. The company installs and services petroleum storage and dispensing systems. Sponsored for PEI membership by Galen C. Heaps, PetroSupMD, Laurel, MD.


  • Turner's Pump Shop, Dothan, AL (dis)
  • CAD Fuel Design, Roanoke, VA (aff)
  • DTE Group Pty. Ltd., Yangebup, Australia (aff)
  • Shenyang Daming Motor Co., Ltd., Shenyang, Liaoning, China (aff)
  • Penn Environmental Services, Gibsonton, FL (S&C)
  • Premium Electric, LLC, Glen Burnie, MD (S&C)
  • CDP Inc., Mandan, ND (S&C)
  • Damon Bastin, Hess Corporation, Coral Springs, FL (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.