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July 16, 2009 | Vol. 59, No. 16

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In This Issue
Dear PEI Member:

PEI has published a new recommended practice that provides a concise summary of the design considerations and general guidelines for the proper installation of centralized fluid-distribution systems for various types of vehicle-related fluids.

Recommended Practices for the Design and Maintenance of Fluid-Distribution Systems at Vehicle Maintenance Facilities (PEI/RP700-09) was written to fill a void in the industry that has existed for decades. Although vehicle-fluid-distribution systems are technically sophisticated, until now there was little published literature on the design of these systems. And because most of the fluids involved do not pose substantial fire or health hazards, there are few regulations governing these systems. The absence of both industry guidance and regulatory standards has resulted in the installation of many systems by people who are unfamiliar with the high air and fluid pressures present in these systems and the flow characteristics of lubrication fluids. PEI hopes to improve the quality of these installations with these recommended practices.

This recommended practice will help facility designers and installers:

  • build systems that are safe and reliable,
  • ensure that the systems operate conveniently and efficiently while requiring a minimum amount of service, repair or replacement, and
  • provide the required flow rates over a broad range of end-user applications. 

The recommended practices apply to stationary, centralized fluid-distribution systems for vehicle-related new and used fluids such as motor oil, gear oil, transmission fluid, hydraulic fluid, grease, antifreeze and windshield washer fluid. The equipment covered includes supply containers (e.g., tanks, totes, drums, kegs, pails), piping and tubing, pumps, compressors, hoses, reels, control handles, and other equipment typically used to construct these systems.

The practices described in the document are the consensus recommendations of the PEI Vehicle-Maintenance Fluids Equipment Committee. The committee includes representatives from equipment manufacturers, distributors and contracting companies specializing in the design, service and installation of lubrication equipment. Phil Parker, Samson Corporation, is chairman. Members are Harrell "Doc" Blair, McKinney Petroleum Equipment; Bruce B. Doughty, Sytex West, Inc.; Bill Parker, Lincoln Industrial Corporation; Don Smith, Balcrank Products; Stephen Spiros, Superior Equipment Company; and Charles Stookey, Reliable Hydraulics, Inc. Marcel Moreau, Marcel Moreau Associates, served as consultant to the committee.

PEI Issues RP on Lube Equipment Design/Maintenance 

End of Hot Fuel Debate

PEI Election Results

Natural Gas Bill Introduced


In This Issue

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If you design and/or install vehicle-fluid-distribution systems, you should have a copy of this document. We urge you not to use the draft mailed earlier this year since public comments to that draft resulted in significant changes to the document. PEI/RP700-09 is copyrighted and may not be photocopied or otherwise reproduced. Order online ($40 for members; $95 for nonmembers) at

The National Conference of Weights and Measures has voted to withdraw two proposals which would would have required or permitted the use of automatic temperature compensation (ATC) devices on retail fuel dispensers. The proposals, which have been under discussion for several years, were scheduled to be voted on at the Conference's annual meeting July 14-17, 2009. However, after the vast majority of delegates criticized the proposals during an open discussion period, the Conference's Laws and Regulations Committee unanimously recommended to withdraw both proposals. The votes in favor of the recommendation to withdraw were 36-2 in the Conference's House of Representatives and 30-8 in the House of Delegates.

The final statement approved by the Conference notes several reasons for this action, among them:

  • The consensus in the conference against ATC
  • Additional regulatory and enforcement costs to Weights and Measures officials during a very difficult economic climate
  • Recent studies indicating that ATC would not be cost beneficial for either consumers or industry
  • The possibility of fewer retailers in the marketplace, as a result of burdensome implementation costs
  • The special financial hardship that ATC would cause for rural retailers
  • The difficulty of educating consumers so that they could make meaningful value comparisons

As a result of this action, ATC has now been removed from the NCWM agenda, unless and until some additional proposal is submitted.

The tabulation of ballots has been completed in the nominating election of PEI board members from our odd-numbered districts and the service & construction division. Three members received enough votes in the nominating stage of the election process to be elected to the board without having to participate in a runoff election. Two members ran unopposed and have already been certified winners by the PEI Election Commission. The two nominees from District 9 and the service & construction division who received the greatest number of points now go into a runoff election. Ballots for the runoff will be mailed July 23. Here are the election results, according to J. Stephen Hieber, PWI, Incorporated, New Oxford, Pennsylvania, chairman of the PEI Election Commission.

Distributor District 1 - The new director is Kenneth J. Hayden, Northeast Petroleum Technologies, Schenectady, New York.

Distributor District 3 - The new director is Jared M. Samon, Norris & Samon Pump Service, St. Petersburg, Florida.

Distributor District 5 - The new director is Doug Maze, M & W Equipment Co. Inc., Huntsville, Alabama.

Distributor District 7 - The new director is Steve Sulland, Valley Petroleum Equipment, Inc., Grand Forks, North Dakota.

Distributor District 9 - The two nominees in the runoff are Bill Mascott, Mascott Pump & Equipment Co., Portland, Oregon, and Bob Mathews, Northwest Pump & Equipment Co., Portland, Oregon.

Manufacturer District 11 - The new director is Phil Parker, Samson Corporation, Swannanoa, North Carolina.

Manufacturer District 13 - The new director is Dennis Grappin, Hose Master, Inc., Cleveland, Ohio.

Service & Construction Division - The two members in the runoff are Terry L. Perry, Petroleum Solutions Inc., Raleigh, North Carolina, and Mike R. Choate, Applied Petroleum Technologies Ltd., Corpus Christi, Texas.

Visit our website for information on outgoing directors and the geographic areas represented by each director.

A bill, sponsored by Robert Menendez (D-NJ) and Orrin Hatch (R-UT), was introduced in the Senate July 8 that would extend tax credits for natural gas vehicles and refueling stations for 10 years. It would also create incentives for federal, state and local governments to buy natural gas-powered vehicles. Senate Majority Leader Harry Reid (D-NV) is also a sponsor of the legislation, causing some political observers to believe that the language could be attached to other bills during a busy legislative year.

The bill was announced only a week after the Potential Gas Committee increased its estimate of U.S. potential gas resources by almost 40 percent to 2,074 trillion cubic feet. The revised estimate is equivalent to about 100 years of supply at current consumption rates and supports arguments that a large percentage of the U.S. automobile fleet could be powered by domestic natural gas reserves. The Potential Gas Committee is affiliated with the Colorado School of Mines.

Linter North America
, a subsidiary of Linter Investments of Spain, one of the Moratiel Group of companies, has acquired Balcrank Corporation, headquartered in Weaverville, North Carolina. C. Roy Mendenhall will serve as vice chairman and chief executive officer of Linter, North American Corporation. Holdings of the Moratiel Group include Samoa Industrial, Gijon, Spain, who owns Samson Corporation, Swannanoa, North Carolina. The Moratiel Group, in its press release, said that it anticipates no change in either company's brand identity, sales representation, pricing or distribution.

, Sherman, Texas, announced that Mark Cherry, company president, has recently acquired an equity position in FLEX-ING.
Jones & Frank Corp. has received the Distributor of the Year award from Gilbarco/Veeder Root for the Southern Region - 2008.
Exxon Mobil Corp. is partnering with Synthetic Genomics Inc. to study and develop algae-based biofuels.--The New York Times, July 13, 2009.

Fuel management systems manufacturer
. Sound Operating Services LLC, P. O. Box 80176, Lafayette, Louisiana 70598, has applied for manufacturer division membership. Bobby Cobb is the primary contact for the company, which was established in 2008. The company manufactures fuel management systems which are sold through distributors. Sponsored for PEI membership by Kristi Peterson, Xerxes, Minneapolis, MN.
Argentina corporate imaging firm
. Grana Industria Publicitaria S.R.L., Bartolome Podio 50, Rafaela, Santa Fe, Argentina, has applied for affiliate division membership. Gabriel Carlos Grana is the primary contact for the firm, which was established in 2008. The company provides imaging for stations and convenience stores in Argentina. Sponsored for PEI membership by Eduardo A. Borri, Bertotto, Marcos Juarez, Argentina. 
Brazil import/export firm
. Mosbeck Comercio Importação e Exportação Ltda., Rua Colorado, 455, Santana do Parnaiba, São Paulo, Brazil 06415-210, has applied for affiliate division membership. Cristina Ghelfi is manager of the firm, which was established in 1993. Sponsored for PEI membership by Marcel Borlenghi, Suatrans, São Paulo, Brazil.
Alberta general contractor
. New West Equipment Services Ltd., 5082 80th Avenue S.E., Calgary, Alberta T2C 2X3, has applied for service and construction division membership. Keith Beggs is the primary contact for the company, which was established in 1994. The firm provides on-site fuel and maintenance service, and tank rentals/sales. Sponsored for PEI membership by Paul McKay, KellrEqLtd, Calgary, Alberta.
Florida installation and service contractor
. Petroleum Construction, 8503 Alton Avenue, Jacksonville, Florida 32211, has applied for service and construction division membership. Clayton Fields is president of the firm, which was established in 2005. Petroleum Construction designs and builds all types of aboveground and underground retail and commercial fuel storage and dispensing systems. Sponsored for PEI membership by Bill Tegethoff, ANSDis, Tucson, AZ.
Florida installation and service contractor. FABTECH Industrial Services, 10 Palm Lane, Ponte Vedra Beach, Florida 32082, has applied for service and construction division membership. James Laidler is owner of the firm, which was established in 1986. Besides providing general welding services, the company welds petroleum pipe and tank catwalks. Sponsored for PEI membership by F. R. Scudder, MecoAtl, Atlanta, GA. 
Indiana service and construction firm
. EEC, Inc., 5519 Rossyln Avenue, Indianapolis, Indiana 46220, has applied for service and construction division membership. Robert Dalton is the vice president of construction for the firm, which was established in 1996. The company builds and remodels convenience stores, and installs tanks and other equipment. Sponsored for PEI membership by Kirk N. Mercer, MercerCo, Jackson, MI.


  • Raymond Leather, Cumberland Gulf Group of Companies, Framingham, MA (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.