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December 4, 2009 | Vol. 59, No. 25

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In This Issue
Dear PEI Member:

The U.S. Environmental Protection Agency (EPA) announced December 1 that it expects to make a final determination in mid-2010 regarding whether to increase the allowable ethanol content in fuel.

In a letter to Growth Energythe biofuels trade association that had asked EPA to allow the use of up to 15 percent ethanol in gasolineEPA said "although all of the studies have not been completed, our engineering assessment to date indicates that the robust fuel, engine and emissions control systems on newer vehicles (likely 2001 and newer model years) will likely be able to accommodate higher ethanol blends, such as E15." EPA went on to say that "should the test results remain supportive and provide the necessary basis, we would be in a position to approve E15 for 2001 and newer vehicles in the mid-year timeframe. Of course, if the data highlight potential problems, then the decision may need to be delayed until all testing is received and reviewed."

EPA also announced in the letter that it has begun the process of crafting the labeling requirements that will be necessary if the blending limit is raised. There was no mention of petroleum equipment compatibility.

We've posted the full text of the Growth Energy letter to EPA on our website.

The House Committee on Transportation and Infrastructure approved the Hazardous Material Transportation Safety Act of 2009 (H.R. 4016) on November 19. This legislation contains a section that would address wetlines (external product piping on cargo tanks). For newly manufactured cargo tanks, the bill requires the Secretary of Transportation (Secretary) to prohibit the transportation of Class 3 flammable liquids (e.g., gasoline) in wetlines two years after the date of enactment of this Act. The bill allows the Secretary to authorize any alternative means of compliance for newly manufactured vehicles if the Secretary determines that the alternative provides an equivalent level of safety.

EPA E15 Waiver

Wetlines Legislation

RP Topics Requested

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With respect to the existing fleet, the bill requires the Secretary to conduct a rulemaking within three years of the date of enactment regarding the prohibition of transporting these flammable liquids in wetlines in existing cargo tank trucks. The rulemaking would take into consideration all of the effects of prohibiting wetlines, including cost, benefits and methods of compliance. The rulemaking would require notice in the Federal Register and the opportunity for public comment. The Secretary would establish the deadline for compliance. The Secretary is also authorized by the bill to extend the date for compliance with the general rule on a case-by-case basis if it is in the public interest. However, if a final rule is not in effect within three years, then a deadline of December 31, 2020, would go into effect.

PEI is seeking to identify topics that might provide subject matter for future technical documents. Submitted ideas for recommended practices should meet all of the following requirements:

  • The subject matter involves practices and/or procedures used in the petroleum equipment industry and serves the greater good of the industry,
  • The topic has not been adequately covered in documents produced by others, and
  • The expertise exists among PEI members to write the document.

If there is a topic that you believe PEI should consider developing as a recommended practice, we would like to hear from you. Email Bob Young ( with your suggestions. Please include the purpose and scope of the proposed document, along with the intended audience. We will compile the responses and forward them on to a PEI ad hoc committee for its review and recommendations.

. The state proposes to reorganize and consolidate its existing underground storage tank (UST) system rules and add some new regulations. For motor fuel dispensing facilities, the state would increase the maximum UST size from 20,000 to 30,000 gallons. UST components would have to be listed for the intended use by a national third party organization. The state would also allow certification by a licensed professional engineer or annual inspections by a licensed contractor to substitute for the third party listing for compatibility purposes for petroleum products only. Requirements for observation wells for newly installed USTs would be eliminated. The proposal would phase out the use of tank lining as a method of corrosion protection by terminating new linings after January 1, 2011, but allow existing linings to remain so long as they continue to pass routine lining inspections. The 300+ page proposal is available on our website.
North Carolina. The state's Program Evaluation Division (PED) estimates that it will take at least $549 million over 25 years at current funding levels to complete the cleanup of the commercial tank backlog in the state. To address the backlog and future cleanup liability in the state, the PED recommends that lawmakers increase funding for the commercial and noncommercial programs. Implementation of a risk-based system of financial responsibility for commercial tank owners and cleanup cost sharing by noncommercial UST owners also was recommended to generate additional revenue. North Carolina currently does not require noncommercial tanks owners to have financial responsibility for cleanups.
Wisconsin. The Wisconsin Department of Commerce has prepared a handy one-page summary of "significant" aboveground and underground storage tank upgrade requirements. The deadlines extend from February 1, 2010, to December 31, 2014.

ExxonMobil Corp.
said October 27 that it is settling 50 lawsuits related to methyl tertiary butyl ether (MTBE), a move that came about a week after a jury handed down a $105 million verdict against the company in the federal multi-district litigation over the gasoline additive. Under the settlement terms, ExxonMobil would pay $17.5 million and, if certain triggering events occur, take part in the future cleanup of certain MTBE contaminated wells, in exchange for being released from liability in the lawsuits.
Shell Oil Co. will pay $19.5 million to resolve alleged violations of California's hazardous waste and underground fuel storage laws under a stipulated settlement and judgment announced last month. The settlement caps a statewide three-year investigation into underground storage tank operations at more than 1,000 of the company's gasoline stations. Shell did not admit to any liability in the settlement.

Jones & Frank Corp.
, headquartered in Raleigh, North Carolina, has opened a new branch in Cherry Hill, New Jersey, that will serve the Philadelphia and southern New Jersey markets. Phone numbers for the branch: (215) 233-2400 or (856) 767-6659.
Mark Barron, president of Petroleum Solutions, Inc. (PSI), McAllen, Texas, was named to the 5th Annual AGGIE 100, a list of the 100 fastest growing companies in the world owned or operated by a Texas A&M University former student.
Petroleum Containment, Inc., Jacksonville, Florida, announced that Petro Energy, Inc., Houston, Texas, will represent the company in Arkansas, Louisiana, New Mexico, Oklahoma and Texas.
A total of 7.2 million cars were sold in China between January and September, 42 percent more than in the same period of 2008.

New York distributor
. Auster Rubber Co. Inc., 238 North 9th Street, Brooklyn, New York 11211, has applied for distributor division membership. Ken Auster is president of the firm, which was established in 1948. The company distributes petroleum hose and couplings and represents Deighan, EmcoWheatn, Goodyear, Monoflex, PTCoupling and Thermoid. Sponsored for PEI membership by Joe Pasternak, FluidHose, Mississauga, Ontario.
Sump sealing kit manufacturer. B & B Enterprises, Inc., 25436 Fallen Oak, Laguna Niguel, California 92677, has applied for manufacturer division membership. Belinda Bain is president of the firm, which was established in 2001. The company manufactures sump sealing kits for enhanced vapor recovery II canisters and sump penetration fittings for aboveground and belowground fuel storage tanks. The kits are sold through distributors. Sponsored for PEI membership by Ann Thomas, PtrMktgEqp, Placentia, CA.
Construction trade licensing organization. International Code Council, 5460 Workman Mill Road, Whittier, California 91740, has applied for affiliate division membership. Doug Hatch is the program manager for the organization, which was established in 1922. The International Code Council is a membership association dedicated to building safety and fire prevention. It publishes examinations that underground storage tank contractors take in order to be certified/licensed to work in a particular jurisdiction. Sponsored for PEI membership by A. Roy Creley, LakesReg, Belmont, NH.
California service company. J. B. Dewar Technical Services, P. O. Box 3059, San Luis Obispo, California 93403, has applied for service and construction division membership. Ed Ward is manager of the firm, which was established in 2002. The company sells and services fuel and lubricant equipment. Sponsored for PEI membership by Christopher G. Fasse, B&TSSCon, Nipomo, CA. 
Texas service and maintenance company. C & L Parts, 10981 Perlette, El Paso, Texas 79927, has applied for service and construction division membership. Christina Magallanes is owner of the firm, which was established in 2001. The company provides parts, service and repairs to its customers. Sponsored for PEI membership by William Reichhold, Wayne, Austin, TX.


  • LAFON SAS, Bassens, France (mfr)
  • Dencor Controls LLC, Denver, CO (mfr)
  • Fleming Reid Petroleum Equipment, Spruce Grove, Alberta (S&C)
  • Phoenix Petroleum Ltd., Fredericton, New Brunswick (S&C)
  • Specialized Technologies Limited, Flatts, Bermuda (S&C)
  • Terry Harrah,Toot'n Totum Food Stores, Amarillo, TX (O&E)
  • Randall Thompson, Army Air Force Exchange, Dallas, 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.