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November 5, 2009 | Vol. 59, No. 23

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In This Issue
Dear PEI Member:

Attendance at PEI's annual convention in Las Vegas was up six percent over last year, and the mood of PEI members at the convention was essentially one of optimism. Exhibitors in the Petroleum Equipment & Services and Technology sections of the trade show not only seemed pleased with the number of people at their booths, but also commented favorably on the quality of the attendees and strong international traffic.

The best way to experience our convention is to be there. For the benefit of those who couldn't be in Las Vegas, here is a brief summary of the convention's highlights.

Peter H. Ward, president of Glasgow Equipment Service, Inc., Riviera Beach, Florida, was elected to serve as the 60th president of PEI. On January 1, Ward will succeed Blair D. Shwedo, president of SouthEastern Petroleum Systems Inc. (SEPS), Charlotte, North Carolina, in PEI's top elected position. Ward is currently serving as PEI vice president.

Replacing Ward as vice president will be Dennis Rethmeier, president of Western Pump, Inc., headquartered in San Diego, California. Rethmeier has just completed his term as treasurer of the association, and has previously served on the PEI board representing Distributor District 9. Joey Cheek, president of JMP Solutions, Tampa and Ft. Myers, Florida, was appointed treasurer of the association by the PEI Board of Directors.

Eight new members were also installed as members of the association's board of directors during the Las Vegas convention. They are Ken Hayden, Northeast Petroleum Technologies, Inc., Schenectady, New York (District 1); Jared Samon, Norris & Samon Pump Service, St. Petersburg, Florida (District 3); Doug Maze, M & W Equipment Co. Inc., Huntsville, Alabama (District 5); Steve Sulland, Valley Petroleum Equipment, Inc., Grand Forks, North Dakota (District 7); William J. Mascott, Mascott Equipment Company Inc., Portland, Oregon (District 9); Philip J. Parker, Samson Corporation, Swannanoa, North Carolina (District 11); Dennis Grappin, Hose Master, Inc., Cleveland, Ohio (District 13); and Terry Perry, Petroleum Solutions Inc., Raleigh, North Carolina (Service & Construction Division).

Convention Recap


Ethanol Blender Pumps


In This Issue

PEI and Industry News »


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The educational sessions planned by the 2009 Education Committee were top notch and well attended, with most concurrent sessions playing to a standing-room only audience. Handouts provided for the sessions by the speakers are available on the Convention Education Session page. You can also purchase digitally-recorded audio of most sessions from a link on that page. The audio of the sessions can be easily exported to your portable MP3 player.

We want your opinion about the convention. Tell us what went right and what needs to be fixed. An email was sent to all attendees Thursday, October 29, with a link to a brief convention survey. Please take a few minutes to complete it. We take your comments seriously and strive to improve the convention experience for all attendees year after year. If you did not receive the survey link, email and he will email it to you.

It takes an extraordinary number of people to make the PEI convention the premier event for our industry. Over 95 people10-Group chairmen, education and convention committee members, session presenters and leaders, Find Red team membersvolunteered in some manner at the PEI convention. Our sincere thanks to all of you.

"Today E85 sales barely register, and accurate sales data are hard if not impossible to get. Both of these facts will change. First, E85 sales will mushroom, starting next year. Why? Two reasons: The price will be right, and it will be an outlet for refiners needing to boost ethanol sales to meet annual increases in the renewable fuel mandate as the 10% blend market becomes saturated. Sources say the Southeast will be the second region, behind the Midwest, to see sharp increases in the number of service stations selling E85. The second reason the E85 market is in for a sea change lies in the automakers themselves. They will need accurate E85 sales data to make their case for fuel economy credits, which they desperately need to meet the roughly 5% annual increase in fuel economy standards."--Kiplinger's Biofuels Market Alert, October 14, 2009.

"Engine makers are urging EPA to issue guidance saying so-called blender pumps, which allow consumers to choose the level of ethanol blended into gasoline from zero to 85 percent (E85), are unlawful unless they are limited to flexible fuel vehicles (FFVs) that can operate on any combination of ethanol and gasoline up to E85. Industry is also pushing the agency to convene a broad stakeholder meeting this fall to 'initiate the needed dialogue on addressing misfueling, both with regard to blender pumps as well as under any future' renewable fuels standard (RFS) or issuance of a Clean Air Act waiver that would allow higher levels of ethanol into conventional gasoline beyond the current E10 limit, according to recent industry comments filed with the agency."--INSIDE EPA, October 16, 2009.

SFO Fuel and Chevron have agreed to pay a $177,500 penalty and install a geosynthetic clay liner throughout the secondary containment area at a jet fuel tank farm at San Francisco International Airport to resolve Clean Water Act violations, the Environmental Protection Agency (EPA) said October 13. SFO and Chevron self-reported to EPA in October 2008 that they might not have adequate volume in their secondary containment for the tanks at their facility. The seven tanks at the facility, which are located on the shores of San Francisco Bay, can store nearly 15 million gallons of jet fuel. The companies have agreed to come into compliance by September 30, 2010.

Total Control Systems, Fort Wayne, Indiana, has appointed Stefano Michi as director of sales and marketing for Africa and Europe.
PMG Northern Virginia LLC, a newly-formed company created by Petroleum Marketing Group Inc., has purchased 52 stations in northern Virginia from Shell subsidiary Motiva Enterprises LLC.
An 11-percent decrease in traditional petroleum consumption and a 22-percent decrease in gas stations is predicted from 2009 to 2016, according to Gulf Oil president and CEO Joseph Petrowski speaking at the Convenience Store News' Future Forum Virtual Conference and Expo.

Gasoline station equipment manufacturer
. LAFON SAS, 44 Avenue Lucien, Victor Meunier, Bassens, France 33530, has applied for manufacturer division membership. Vincent Derouineau is the primary contact for the company, which was established in 1975. LAFON manufactures gasoline station equipment, storage tanks and aviation equipment, which are sold through distributors. Sponsored for PEI membership by Brad Holmes, ClayBailey, Kansas City, MO.
Energy management system manufacturer
. Dencor Controls LLC, 1450 East Evans, Denver, Colorado 80223, has applied for manufacturer division membership. Matt Essig is president of the firm, which was established in 1974. The company provides energy management systems for convenience stores. The systems are sold through distributors. Sponsored for PEI membership by Daniel J. Esposito, OilEqpSup, Indianapolis, IN.
Alberta service company
. Fleming Reid Petroleum Equipment, P. O. Box 3802, Spruce Grove, Alberta T7X 3B1, has applied for service and construction division membership. Doug Morrison is a director of the firm, which was established in 2006. The company provides service and support for contractors and oil companies. Sponsored for PEI membership by Paul Nelson, R&DMktg, Issaquah, WA.
New Brunswick general contractor
. Phoenix Petroleum Ltd., P. O. Box 3057, Station B, Fredericton, New Brunswick E3A 5G8, has applied for service and construction division membership. Mark Ebbett is general manager for the firm, which was established in 2002. The company is a general contractor and provides service and installation for oil companies. Sponsored for PEI membership by Tiina McCombie, NatlEnergy, Mississauga, Ontario.
Bermuda service contractor
. Specialized Technologies Limited, P. O. Box 76, Flatts, Bermuda, has applied for service and construction division membership. David Bull is CEO of the firm, which was established in 2001. The company installs and services equipment, and also provides welding services. Sponsored for PEI membership by Ronald Ecleberry, ModernWeld, Owensboro, KY.


  • Meco, Inc., La Mesa, CA (mfr)
  • Gas Pump Exchange, Upland, CA (aff)
  • MHF Design Consultants, Inc., Salem, NH (aff)
  • PST Compliance Services, Fort Worth, TX (aff)
  • ORAK Project Management, Training and Consultant, Istanbul, Turkey (aff)
  • Eurotank Environmental Limited, Southampton, Hampshire, UK (aff)
  • Cobb Environmental & Technical Services, Inc., Tupelo, MS (S&C)
  • Big Bear Repair, Butte, MT (S&C)
  • Kristi Northcutt, P F & E Oil Company, Brownwood, TX (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.