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September 10, 2009 | Vol. 59, No. 20

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In This Issue
Dear PEI Member:

If this is as bad as it's going to get, we can probably live with it. I suspect that's what most PEI distributors will say when they compare the results of the 2009 Distributor Profitability Report (2008 data) with the report from the previous year.

2008 did not measure up to the industry's 2007 record numbers on practically any level, except gross sales. Still, when you figure that data submitted for the current report by PEI distributors included all 12 months when the United States was officially in a recessionthe National Bureau of Economic Research says it began December 2007―I suspect most members are grateful the numbers aren't any worse. Here is a snippet of what is included in the 45-page report:

  2009 (2008 Data) 2008 (2007 Data)
Sales $7,502,972 $7,168,019
Pre-tax profits 3.1% 3.4%
Return on Assets 9.3% 9.9%
Return on Net Worth 16.7% 18.8%

Participating distributors should have already received their company-specific results. Email Keith Wilson ( if you did not receive your copy. The industry-wide report will be mailed to all participants soon. Nonparticipating distributors may purchase the report for $295.

EVR Enforcement Advisory 402 "Policy for Service Stations that do not meet the September 1, 2009 In-Station Diagnostic Deadline" has been issued to provide information on how air districts will enforce the September 1, 2009, ISD deadline. ISD monitors the performance of vapor recovery systems and triggers alarms when failures occur. The advisory is available at

CARB estimates that, as of early August 2009, over 80 percent of the approximately 5,800 gasoline dispensing facilities subject to the September 1, 2009, ISD deadline have "already completed or are on the path to completing ISD installation." CARB also estimates that nearly 93 percent of the regulated gasoline dispensing facilities in the state have already "completed the installation or are on the path to completing" the installation of EVR Stage II equipment, which had an April 1, 2009, deadline.

2009 Distributor Profitability Report

CARB and EVR Enforcement

PEI Convention News

Alternative Fuels


In This Issue

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The New PEI Journal
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Registration is up 18 percent
for our October 21-23 convention, compared to the same time last year. Registration is still open and will be available online until the close of the convention. Save $100 by registering through October 9.
If you register for the convention before September 21 and have a U.S. or Canadian address, your badge and credentials will be mailed to you beginning next week. The official convention program will be included with your credentials.
New this year is the PEI Meeting Point. Located on the trade show floor, this designated lounge area is designed to give PEI members a place to meet with their customers and business associates. Look for this blue PEI Meeting Point logo on the show floor.
Convention shuttles will serve all official hotels that are not within walking distance of the Las Vegas Convention Center. For a complete list and shuttle bus schedule visit our Convention Hotel Information page.
The list of people registered through August 31 is available for download on the PEI Members Only page.

OPW Fueling Components
, Cincinnati, Ohio, has appointed Fernando Whitaker to the newly created position of managing director - Latin America. His responsibilities include all Latin America markets. He will be based out of the company's Itatiba, Brazil, facility and report directly to OPW Fueling Components president David Crouse.
Blueline Technologies has moved 30 miles north of its previous location in Yuba City to larger facilities in the Oroville Airport Business Park. The new address is 2001 Challenger Avenue, Oroville, CA 95965. Phone: (530) 532-4700. Fax: (530) 532-4900.
Gerry McKay, president of Keller Equipment Supply Limited for 30 years, announced his retirement effective July 31, 2009. Gerry represented Distributor Division District 9 on the PEI Board of Directors from 1993 to 1995.
Hamilton Service Co., L.L.C., Basehor, Kansas, has hired Roger Ford as its director of sales. Ford comes to Hamilton Service with over 30 years of experience in the petroleum industry.

The U.S. Energy Department will award nearly $300 million to the Clean Cities Program to help communities buy alternative-fuel vehicles, Vice President Joe Biden and Energy Secretary Steven Chu said August 26. The funding, which will come from the government's economic stimulus package, will help pay for more than 9,000 alternative-fuel and energy-efficient vehicles and establish 542 fueling and recharging stations for the vehicles. One project will complete a 700-mile regional liquid natural gas (LNG) fueling corridor connecting infrastructure in Southern California and LNG fuel stations being developed in Utah. The Bureau of National Affairs reports that another program will add 55 E85 fueling stations throughout California.

Exxon Mobil Corp.
has sold 25 stations in the Hampton Roads area of Virginia to Doswell Ventures, an affiliate of Woodfin Oil Co., Mechanicsville, Virginia.
Florida Sunshine Investments has purchased all 47 stores operated in bankruptcy by Appalachian Oil Co. Inc. (Appco), Blountville, Tennessee. The stores are located in eastern Tennessee, southeastern Kentucky and southwest Virginia.
Sunoco Inc. said it will sell its retail heating oil and propane distribution business to Superior Plus Corp. for $82.5 million in cash.

Lawrence Joseph McKinney
, who served as president and chairman of the board of McKinney Petroleum Equipment, Mobile, Alabama, died August 16. He was 72. Larry served in the U.S. Navy as a lieutenant in the office of the Chief of Naval Operations at the Pentagon. A lifelong resident of Mobile, Larry was heavily involved in local civic activities. Survivors include his wife of 24 years, Shirley Allen McKinney; his six children, Kerry Ellis, Kelly Nielsen, Kevin McKinney, Kristine Wendling, Kim Norris and Chad Carpenter; and 12 grandchildren. Kevin currently serves as company president and Shirley as secretary/treasurer.

Tennessee environmental consultant
. Titan Management Group LLC, 1006 Flagpole Court, Suite 104, Brentwood, Tennessee 37027, has applied for affiliate division membership. Audrey Gaynor is the primary contact for the company, which was established in 1999. Titan is an underground storage tank operational compliance and information management services organization. Sponsored for PEI membership by Benjamin Thomas, ThomasAsc, Clinton, WA.
Bermuda installation and service contractor
. Somers Electrical and Mechanical Company, 48 Par La Ville Road, Suite 128, Hamilton, Bermuda HM11, has applied for service and construction division membership. Philip Sheere is vice president of the firm, which was established in 2000. The company is a general contractor that installs fuel tanks. Sponsored by PEI membership by Ronald Ecleberry, ModernWeld, Owensboro, KY.
California tank testing and installation firm
. Shen and Associates Inc., 20628 East Arrow Highway, Covina, California 91724, has applied for service and construction division membership. Emery Shen is president of the firm, which was established in 2005. The company installs equipment and provides tank and environmental testing. Sponsored for PEI membership by Gregg Miller, NWPump, Portland, OR.


  • Lutz Pumps, Inc., Norcross, GA (mfr)
  • ESL Power Systems, Inc., Corona, CA (mfr)
  • Micro Matic USA, Inc., Sparks, NV (mfr)
  • Mac Victor Power, LLC, Fredericksburg, VA (mfr)
  • Rovanco Piping Systems, Joliet, IL (mfr)
  • Convenience & Carwash Canada, Winnipeg, Manitoba (aff)
  • Yara North America, Inc., Tampa, FL (aff)
  • GEO Trading Solutions, LLC, Miami, FL (aff)
  • YongJia TongLian Petroleum Equipment Co., Ltd., Wenzhou, ZheJiang, China (aff)
  • FuelSystems, LLC, Dothan, AL (S&C)
  • Conservasa, S.A., Santo Domingo, D.N., Dominican Republic (S&C)
  • Statewide UST Inspectors LLC, Boston, MA (S&C)
  • Select Service, LLC, Putnam, CT (S&C)
  • Reiter Oil & Gas Inc., Surrey, ND (S&C)
  • Weston Solutions Inc., San Antonio, TX (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.