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March 9, 2010 | Vol. 60, No. 5

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In This Issue
Dear PEI Member:

PEI, along with other industry trade groups and stakeholders, invites members in North America to complete a brief survey describing your first-hand experience with ultra low sulfur diesel (ULSD) fuel. The survey is available at

This survey addresses accelerated corrosion (rust), unexpected operational problems, gasket or seal problems, and/or premature failure of equipment and parts associated with the storage, transportation and dispensing of ULSD fuel. We encourage you to respond to the survey whether or not you have encountered any of these problems. Your input to this brief (five question, two minute) survey will provide the industry with information to determine next steps, if any, that the groups should take.

We are asking all PEI members and other newsletter readers with any first-hand experience with ULSD to participate. That includes equipment manufacturers, service providers, and tank owners. Those who have already shared what you know on the PEI Forum are asked to complete the survey as well, so we have all data available in a single place. Deadline for completing the survey is Tuesday, April 6.

Other industry groups seeking responses to the survey include the National Association of Convenience Stores, Petroleum Marketers Association of America, NATSO, SIGMA, American Petroleum Institute, EPA's Office of Underground Storage Tanks (through a third party), Steel Tank Institute, National Biodiesel Board, National Association of Fleet Administrators, and the American Trucking Association.

ULSD Survey

GM and E85

Fueling Sites Change Hands

In This Issue

PEI and Industry Events »


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General Motor's growing output of vehicles capable of running on ethanol-gasoline blends will not help cut greenhouse gas emissions or US dependence on foreign oil until the small network of stations dispensing higher-blends of ethanol is greatly expanded, GM vice chairman Tom Stevens said in a February 16 speech at the Renewable Fuels Association conference. Half of GM's vehicle line-up will be able to run on E85 by the 2012 model year, said Stevens. GM has produced 4 million of the 7.5 million flex-fuel vehicles that are already on the road in the US.

"Today there's 2,200 (E85 fuel stations) that are out there but that's not enough," said Stevens. We need 12,000 or more ethanol stations "to have ethanol fuel available for every one of our customers within about 2 miles of where they live," Stevens said.

OMNTEC Mfg., Inc.
, Ronkonkoma, New York, has appointed Kurt Gibson as eastern regional sales manager. He will be based in Atlanta, Georgia.
PumpTex Inc.
, Beaumont, Texas, has appointed Jody Kirk to be responsible for sales in the central Texas area, which includes San Antonio and Austin. The company also appointed Randy Chamberlain to lead a new division that focuses on the installation and removal of aboveground and underground fueling systems.
Terra Industries
has agreed to be acquired by Yara International ASA in a deal that is worth around $4.1 billion. Meanwhile, CF Industries Holdings Inc. said March 5 that it has begun an unsolicited $4.8 billion bid for Terra. 

"EPA hinted strongly that it would approve the 50% increase
in the amount of ethanol to be blended into the fuel supply from 10% to 15% when it released its RFS2 proposal. Almost 100 pages are devoted to the infrastructure that would be needed to make such a change work. But the document repeatedly uses the term 'partial waiver,' indicating that the agency is contemplating lifting the limit only for cars built after 2001."Kiplinger's Biofuels Market Alert, February 17, 2010.
The latest payment data show that 49.2 percent of fuel payments are on plastic, and debit payments (14.7 percent) now exceed payments on oil company proprietary cards (10.3 percent).Lundberg Letter, January 26, 2010.
The Occupational Safety and Health Administration (OSHA) is seeking public comment on a proposed rule that would restore a musculoskeletal injury column on the form used by employers to record worker injuries and illnesses (75 FR 4728). The rulemaking, which would amend the agency's recordkeeping regulation (29 CFR 1904), is only intended to improve data gathering and would not require employers to implement ergonomic measures in the workplace, the agency said.
(EPA) "foresees a major buildup in E85 facilities. Overall, the EPA estimates it will take $3 billion to upgrade the E85 facilities enough to meet the requirements of the RFS2."Kiplinger's Biofuels Market Alert, February 17, 2010.

Shell International Petroleum Company Limited and Cosan S.A. February 1 announced they have signed a non-binding memorandum of understanding, with the intention to form a $12 billion joint venture in Brazil for the production of ethanol, sugar and power, and the supply, distribution and retail of transportation fuels. Shell has around 2,740 branded sites in Brazil, while Cosan has a distribution network of more than 1,700 service stations.
Southern Counties Oil Co., a California Limited Partnership (SC Fuels), announced February 10 the successful completion of its acquisition of United Fuel & Energy Corporation (United Fuel) through a merger of United Fuel with and into Goldstream, Inc., a wholly-owned subsidiary of SC Fuels. SC Fuels delivers commercial fuels in 10 western states and has a network of 185,000 commercial cardlocks, truckstops and retail stations nationwide. United Fuels is comprised of more than 115 unattended fueling sites, bulk plants and offices in Texas, New Mexico and Oklahoma.
7-Eleven Inc., Dallas, Texas, has contracted to purchase 16 convenience stores from MHC Convenience LLC, parent company of the chain of 20 Mother Hubbard's Cupboard stores in Illinois and Iowa.Quad-Cities Online, January 27, 2010.
Capitol Petroleum Group LLC, Springfield, Virginia, has purchased 29 locations in northern Virginia from ExxonMobil.

Vernon R. McCoy
, a manufacturers representative headquartered in Tulsa, died February 2. He was 92. He began his career in the oil industry in 1952 as a design and construction engineer for Mid Continent Petroleum/Sunray D-X/Sun Oil Company. He retired from Sun in 1972 and owned an independent rep agency until his retirement in 1984. He is predeceased by his wife of 67 years, Nathalee. Vern is survived by five children, of which the oldest, Steve, is employed by Adams Tank & Lift, Albany, Georgia; twelve grandchildren; and eight great-granddaughters.

Arizona equipment distributor
. A & H Contracting, Inc., 1575 East 18th Avenue, Apache Junction, Arizona 85119, has applied for distributor division membership. Catherine Acton is president of the firm, which was established in 1998. The company represents BakerInd, Bennett, BMTTank, CntmtSoltn, ClayBailey, Franklin, FuelForce, FuelMaster, HuskyCorp and Pneumrcatr. The company sells, installs and services all types of petroleum and vehicle service equipment. Sponsored for PEI membership by Bob Chase, Bennett, Spring Lake, MI.
Nicaragua distributor
. Equipos & Accesorios S.A., Rotonda Cristo Ray, 150 vrs. Arriba, Edif. Ramac Apt. 2010, Managua, Nicaragua, has applied for distributor division membership. Mario H. Vallejo F. is the primary contact for the company, which was established in 1962. The company sells equipment and parts, and offers service. Equipos & Accesorios represents Catlow, Davis, EmcoWheatn, Gilbarco, Natl-Spncr, OPW-FC and RedJacket. Sponsored for PEI membership by Lucy Sackett, Gilbarco, Greensboro, NC.
Fuel oil system manufacturer
. ISP Fuel Systems, 1035 Old Georges Road, North Brunswick, New Jersey 08902, has applied for manufacturer division membership. Marc Wiederhorn is vice president of the firm, which was established in 1995. The company manufactures and provides fuel oil systems for data centers, hospitals and financial institutions. The systems are sold through distributors. Sponsored for PEI membership by Georges Boyazis, IPP, St. Augustine, FL.   
Fluid transfer equipment manufacturer
. Intradin (Shanghai) Machinery Co., Ltd., 118 Duhui Road, Minhang District, Shanghai, China 201109, has applied for affiliate division membership. Fendi Fang is a sales representative for the company, which was established in 2008. The company manufactures fluid transfer equipment with a variety of solutions of both industrial and professional fueling applications. Sponsored for PEI membership by Thomas McClain, HenrichEqp, West Babylon, NY.
Texas import/export firm. Gallium Global Procurement LLC, 2800 Post Oak Boulevard, Suite 5320, Houston, Texas 77056, has applied for affiliate division membership. Anthony Childers is international business manager for the firm, which was established in 2008. Sponsored for PEI membership by Oscar Ramirez, BolivarFL, Miramar, FL.
California installation and upgrade contractor. ENCON Technologies, 12145 Mora Drive, #7, Santa Fe Springs, California 90670, has applied for service and construction division membership. Joseph Amaya is director of marketing for the firm, which was established in 1994. The company installs and removes tanks, piping sumps, generators, leak detection equipment, cardlock systems and other equipment. Sponsored for PEI membership by Griffin Williamson, TotalPro, Rialto, CA. 
Connecticut contractor. John R. Morgan, Inc., P. O. Box 39, North Franklin, Connecticut 06254, has applied for service and construction division membership. John R. Morgan, Jr., is president of the firm, which was established in 1992. The firm is involved in electronic board repair, onsite service, and tank installation and removal. Sponsored for PEI membership by Thomas J. Dion, WildcoPtr, Bloomfield, CT.
North Carolina installation company. Tidewater Fuel Distribution Services, 511 Myna Court, Jacksonville, North Carolina 28540, has applied for service and construction division membership. Dale Harris is owner of the firm, which was established in 2007. The company installs aboveground and underground storage systems, oil/water separators, waste oil tanks and lube systems. Sponsored for PEI membership by Butch O'Briant, PtrEqSerNC, Wilson, NC.


  • Growth Energy, Omaha, NE (aff)
  • Priority Sales Associates, Inc., Longwood, FL (aff)
  • Core Electric Limited, Spruce Grove, AB, Canada (S&C)
  • D.R. Mozeley Inc., Charlotte, NC (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.