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March 17, 2010 | Vol. 60, No. 6

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In This Issue
Dear PEI Member:

Here's a look at how business is going as the first quarter of 2010 draws to a close.

PCI compliance has helped many distributors, service companies and a few manufacturers. On the service side, PCI's impact largely depends on the size of the department and the mix of retail customers. Small service departments are having trouble keeping up with the demand, while companies with larger departments tell us that PCI has meant goodbut not necessarily greatbusiness. With three months to go before the July deadline and distributors in many cases faced with a six-week equipment wait, PCI should continue to drive sales and service for the next three to six months.

PCI has not been a panacea for everyone. It has diverted much of the available money away from rehabs and new builds. The sale of new service station equipment and construction of new retail sites have suffered. Most of the new construction work is concentrated on the governmental/military, commercial and industrial side of the industry. Too many car wash manufacturers chasing too little new business continues to plague the car wash industry.

The sale and installation of diesel exhaust fluid (DEF) equipment has begun. Initial purchasers are fleets and automobile dealerships. Sales to truck stops are spotty. A slow but steady roll-out was expected and that's exactly what we are seeing.

Receivables are growing and continue to require constant vigilance. End-user customers with cash flow problems are stringing out their contractorswho string out their distributorswho string out their manufacturers.

We are told by suppliers that several distributors/contractors are struggling to pay their bills. This is neither indicative nor a precursor of weakness in the industry. The problem, in each of the cases with which we are familiar, has not been with the marketplace, but rather with management: undercapitalization of the company, too rapid expansion, no insurance, neglect, complacency, lawsuits, not knowing the true cost of doing business, etc.

Business Conditions

PEI Foundation Scholarships

ULSD Survey

In This Issue

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March 31 is the deadline for applications for the PEI Foundation's Charles D. Kemp Scholarships
. The scholarships recognize deserving students who are dependents of full-time employees with member companies in PEI's manufacturer, distributor, service & construction, or affiliate divisions. Scholarship selections are based on academic achievement, leadership, character, need and the applicant's intent to contribute to the petroleum and energy handling equipment industry. Awards are granted without regard to race, creed, religion, gender, disability or national origin. You can download the full scholarship guidelines and an application form at PEI members and students should direct any questions about the application process to Rick Long at

If you have first-hand experience with ultra low sulfur diesel (ULSD) and have not responded to an industry-wide survey on the subject, we encourage you to do so before the April 6 deadline at

The Lyden Co.
, Toledo, Ohio, announced March 8 that its retail joint venture Truenorth Energy LLC has acquired 109 Shell-branded sites in the greater Chicago area from its partner, Shell Oil Products US. Truenorth operates and/or supplies 212 sites in Ohio and southwestern Michigan.
Ameron International, Houston, Texas, has appointed JV & Associates as its representative in Florida.
Zeppini Industrial & Comercial S.A. and Ecoflex formed a joint venture March 4. A new brand, Zeppini Ecoflex, was created with a new visual identity and a single line of environmental products for the local and international service station markets.
Tanknology Inc., Austin, Texas, has announced that Ecología y Petróleo (EPSA) of Tampico, Tamaulipas, Mexico has become an international licensee of the company.
The U.S. Senate passed the "American Workers, State and Business Relief Act" on March 10. Included in the bill is a one year extension of the one dollar per gallon biodiesel blender's tax credit. The credit will also be available retroactively for biodiesel produced during the credit's lapse. The biodiesel tax credit expired December 31, 2009. The bill must now be reconciled with the House and signed by the President, which could take another week or two.

A. L. Underwood
, owner of Mid-South Steel Products, Inc. for 30 years, died March 11 at the age of 85. He began as a salesman for Mid-South in 1954 and bought the Cape Girardeau, Missouri-based company in 1957, working there until his retirement in 1987. He was preceded in death by his wife, Lila. Survivors include two sons, Ron and Sonny; a daughter, Cathy Matthews; and six grandchildren. Sonny and Ron are president and vice president, respectively, of Mid-South Steel Products. 
Emil Pawuk
, president and founder of Emil Pawuk & Associates Inc. in 1958, died March 4 after a long illness. He was 85. A veteran of the U.S. Army and U.S. Air Force, he is survived by his wife of 65 years, Irene; a son, Mark, who worked with his father in the business; and two grandchildren, Kassandra and Kyle. 

Fuel tank cleaning equipment manufacturer
. Fueltec Systems LLC, 3065 Jupiter Park Circle, Suite 3, Jupiter, Florida 33458, has applied for manufacturer division membership. Ron Lenz is manager of the firm, which was established in 2008. Fueltec Systems manufactures fuel tank cleaning equipment and automatic polishing systems that are sold through distributors. Sponsored for PEI membership by Chris Piatchek, PiSquare, St. Louis, MO.
Outdoor lighting manufacturer. Leotek Electronics USA Corp., 1330 Memorex Drive, Santa Clara, California 95050, has applied for manufacturer division membership. Meg Myers is senior internal marketing manager for the firm, which was established in 1992. Leotek Electronics manufactures LED cooler lights and LED outdoor lighting which are sold through distributors. Sponsored for PEI membership by Ian Burton, NuStar, Shakopee, MN.  
Microbial contamination consulting firm
. BCA Inc., P. O. Box 3659, Princeton, New Jersey 08543, has applied for affiliate division membership. Dr. Frederick J. Passman is the principal for the firm, which was established in 1992. The company offers consulting services relating to microbial contamination in the petroleum industry. Sponsored for PEI membership by James L. Hansen, HansenAscs, Rotterdam Junction, NY.   
California fuel systems design firm
. SunWest Engineering Constructors, Inc., 2766 Pomona Boulevard, Pomona, California 91768, has applied for service and construction division membership. Pamela Lawrence is president of the firm, which was established in 1994. The firm offers fuel system design, compliance, testing, maintenance and repair. Sponsored for PEI membership by Blair D. Shwedo, SEPSinc, Charlotte, NC.  
Indiana fuel tank cleaning company
. Clean Fuels of Indiana, 4620 East 900 S., Keystone, Indiana 46759, has applied for service and construction division membership. Michael K. Vanover is the president of the firm, which was established in 2000. Clean Fuels of Indiana provides fuel tank cleaning, fuel decontamination and purification. Sponsored for PEI membership by Daniel J. Esposito, OilEqpSup, Indianapolis, IN.
New York tank installation company. Gemstar Construction Corp., 83 Jewett Avenue, Staten Island, New York 10302, has applied for service and construction division membership. John Saia is president of the firm, which was established in 1991. Gemstar specializes in the installation and removal of underground and aboveground storage tanks. Sponsored for PEI membership by William R. Klein, FranklinNY, College Point, NY.
Wyoming installation and service firm. Alpha Petroleum Services Inc., P. O. Box 1112, Rock Springs, Wyoming 82902, has applied for service and construction division membership. John Kolb is president of the firm, which was established in 1997. The company installs and services petroleum equipment. Sponsored for PEI membership by Kirby Boutelle, EatonS&S, Denver, CO.


  • Simmons, Richardson, TX (mfr)
  • Aucterus, LLC, Arroyo Grande, CA (aff)
  • Solvport, Portland, OR (aff)
  • RMS Solutions, Las Vegas, NV (aff)
  • Equiptank Engineering, Anglesola, Spain (aff)
  • Industrial Gas Technology, Inc., Bowling Green, KY (S&C)
  • Southern Integrated Services, Inc., Atoka, TN (S&C)
  • ProtoCore Technologies, St. Johns, FL (S&C)
  • Ed Burke, Dennis D. Burke Oil Inc., Chelsea, MA (O&E)
  • Clyde Dean, Dean Oil Co., Springfield, TN (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.