Here is %full_individual_name%'s Tulsaletter
April 12, 2010 | Vol. 60, No. 8

respond | preferences | login | unsubscribe

In This Issue
Dear PEI Member:

PEI, together with representatives from eleven other trade associations and various government agencies, met last week in Washington, D.C. to review results of a survey asking about problems associated with the storage, transportation and dispensing of ultra low sulfur diesel (ULSD) fuel.

Nearly 1,200 people with first-hand ULSD experience responded to the survey. Collectively, 42 percent of the respondents indicated that they are receiving more reports within their organization of equipment operational problems, premature failures, accelerated corrosion, rust, gasket or seal problems, and/or equipment warranty issues related to ULSD within the last several years than they did before ULSD was introduced. Respondents included North American tank owners, fuel suppliers, service providers, equipment manufacturers, tank/equipment regulators, and cargo tank motor vehicle owners.

Among the various groups participating in the survey, the percentages reporting greater issues with ULSD were as follows:

  • Equipment service providers (66%)
  • Equipment manufacturers (53%) 
  • Tank owners (40%)
  • Fuel suppliers who may also own tanks (39%)
  • Tank or equipment inspectors/regulators (37%)
  • Cargo tank motor vehicle owners (20%)

Sixty-nine percent of the total number of respondents either identified themselves as tank owners or fuel suppliers who may also own tanks.

The problems were widespread and not confined to any particular area of North America. Respondents had reported first-hand knowledge of nearly 5,000 locations with problems, although a portion of that number were probably counted more than once. Problems encountered most often include:

  • Filters clogging/requiring more frequent replacement
  • Seal/gasket/O-ring deterioration
  • STP replacement/column pipe wear/motor problems
  • Tanks rusting/leaking (includes tanks on vehicles)
  • Meter failure
  • Line leak detectors damaged or broken
  • Automatic nozzle shutoff failure/shorter lifespan
  • Tank probes malfunctioning
  • Check valves not seating
  • Shear valves not sealing/failing tests
  • Swivels failing/shorter lifespan
  • Dispenser leaks/failure/premature replacement
  • Solenoid valves clogged/failing
  • Corrosion on the riser pipe
  • Pipe failure

ULSD Survey Results

Stage II Vapor Recovery

Industry Notes

In This Issue

Now Open!
Convention Registration & Housing Reservations
Register 5 or more attendees and save with Group Discounts!


PEI and Industry Event & News »


return to top of page


Respond to this Newsletter

by e-mail to the editor, Robert Renkes at

or join the discussion in the Petroleum Equipment Forum

to unsubscribe or change preferences see below.

The consensus of the group that gathered in Washington last week was that the survey results were inconclusive as to the potential causes of these issues. The Clean Diesel Fuel Alliance (CDFA) will now lead the effort to determine why these problems are occurring. As a first step, the CDFA will develop guidance on monitoring and maintenance of fuel distribution and dispensing equipment. The CDFA also will explore the best ways to gather additional information so all interested parties can get a better understanding of the nature of the issue. PEI will continue to remain engaged in the process to ensure our members' interests are represented.

Organizations whose members participated in the survey include the Petroleum Equipment Institute, Steel Tank Institute, Petroleum Marketers Association of America, NATSO, NACS,  SIGMA, American Petroleum Institute, National Biodiesel Board, National Association of Fleet Administrators, American Trucking Association, New England Fuel Institute, National Association of Corrosion Engineers, as well as state and local underground storage tank offices, and others.

The survey was conducted during a four-week period in March/April 2010.

On January 19, 2010, the U. S. Environmental Protection Agency (EPA) proposed regulations (Proposed Rule Regarding the National Ambient Air Quality Standards for Ozone or "Ozone NAAQS") to tighten the standards controlling ozone emissions into the atmosphere. EPA proposed setting the primary standard in a range between 0.060 part per million (ppm) and 0.070 ppm. In 2008, EPA had set the primary standard at 0.075 ppm, a level higher than was recommended by EPA's Clean Air Scientific Advisory Committee. EPA chose to revise the 2008 standard after several states and environmental groups filed lawsuits challenging the standards as too weak to protect human health. Lawsuits challenging the 2008 standard are being held in abeyance while EPA reconsiders the ozone standards.

This proposed rulemaking is important to PEI members because new areas of the country could be designated "severe" or "extreme" ozone non-attainment areas. Language in the Clean Air Act states that an area's being designated as in either severe or extreme non-attainment requires the appropriate authority to require the installation of Stage II vapor recovery equipment at motor fuel outlets unless the Administrator of EPA has determined that onboard vapor recovery equipment is in "widespread use." EPA, to date, has not defined the term and therefore is not in a position to declare that onboard vapor recovery is in widespread use.

The prospect that Stage II vapor recovery might be required in new non-attainment areas close to when EPA projects achievement of widespread use (somewhere around 2015) has caused the National Association of Convenience Stores (NACS) and the Society of Independent Gasoline Marketers (SIGMA) to provide official written comments requesting EPA "make its declaration of widespread use as part of any final rulemaking in the Ozone NAAQS proceeding." The groups make the point that installing Stage II equipment in new areas at this time would be "expensive, non-productive and completely duplicative of the on-board recovery equipment."  

E. O. Habhegger Company's
South Jersey branch office moved April 1 to a larger facility to better serve its customers. The new address is 334 North Washington Street, Unit 20B, Hammonton, New Jersey 08037. The phone and fax numbers remain the same.
"Standard for Automotive Lifts - Safety Requirements for Installation and Service" (ANSI/ALI ALIS: 2009) has been adopted as an American National Standard and becomes effective April 20, 2010. Visit for more information or to order the publication.
Royal Dutch Shell plc plans to exit 35 percent of the company's current retail markets as its downstream operation continues to focus on profitability. In keeping with that strategy, Shell Oil Products Africa announced April 1 that it is reviewing ownership options for its downstream businesses in 21 countries in Africa. Shell also announced March 28 that it has signed a sale and purchase agreement to sell its downstream business, including a network of more than 220 retail stations, to a consortium.
The Georgia Tank & Environmental Contractors Association will hold its annual convention and spring seminar May 13-15 at Unicoi State Park in Helen, Georgia. Visit or call 770-426-1133 for more information.

PEI is joining other members of the Association Education Alliance to present an enlightening webinar that will help member companies boost their Internet marketing. The 90-minute program will demonstrate how you can put your company in front of more customers by improving and measuring your Website's search engine rankings. The webinar will be held Tuesday, April 13, at 1 pm EST/noon CST. For more information or to register, visit the PEI Website at

Virginia distributor
. Gas Station Supply, P. O. Box 11196, Lynchburg, Virginia 24506, has applied for distributor division membership. Brian Travis is vice president of the firm, which was established in 2009. The company represents ChampLabs, GeneralInd, Goodyear, HuskyCorp, Morrison and TurnerTank. Sponsored for PEI membership by Brad F. Baker, HuskyCorp, Pacific, MO.
Piping system manufacturer. Tricon Piping Systems, Inc., P. O. Box 361, Canastota, New York 13032, has applied for manufacturer division membership. Hugh Roszel is president of the firm, which was established in 1999. The company manufactures pre-insulated containment piping for aboveground and belowground applications which is sold through distributors. Sponsored for PEI membership by Glen Corkill, SourceIL, Addison, IL.
California general contractor. Jones Covey Group, Inc., 9595 Lucas Ranch Road, Suite 100, Rancho Cucamonga, California 91730, has applied for service and construction division membership. Bob Christie is a principal in the firm, which was established in 2001. The company is a full-service general contractor specializing in the petroleum industry. Sponsored for PEI membership by B. A. Scowley, ShldsHarpr, Oakland, CA.
Florida installation and service contractor. Petroleum Service & Renovations Inc., P. O. Box 451262, Sunrise, Florida 33345, has applied for service and construction division membership. Marty Sweet is president of the firm, which was established in 2000. The company provides tightness integrity testing, meter calibration and marina service. Sponsored for PEI membership by Glen Corkill, SourceIL, Addison, IL.
Pennsylvania tank installation firm. YCP, Inc., 1550 Oak Lane, Dover, Pennsylvania 17315, has applied for service and construction division membership. Stephanie Scott is administrative assistant for the firm, which was established in 2005. The company installs underground and aboveground storage tanks, piping and monitoring systems. Sponsored for PEI membership by Brian D. Sheaffer, PerryPtrEq, Ickesburg, PA.


  • A & H Contracting Services, Inc., Apache Junction, AZ (dis)
  • Equipos & Accesorios S.A., Managua, Nicaragua (dis)
  • ISP Fuel Systems, North Brunswick, NJ (mfr)
  • Intradin (Shanghai) Machinery Co., Ltd., Shanghai, China (aff)
  • Gallium Global Procurement LLC, Houston TX (aff)
  • ENCON Technologies, Santa Fe Springs, CA (S&C)
  • John R. Morgan, Inc., North Franklin, CT (S&C)
  • Tidewater Fuel Distribution Services, Jacksonville, NC (S&C)


Manage Your Subscription

This newsletter is a member benefit of the Petroleum Equipment Institute. To unsubscribe by email click here or manage all your newsletter subscriptions online at

Do not reply to this message.
This newsletter is sent from an unattended mailbox.
To respond to this newsletter use these options.

PEI® and the PEI mark are registered trademarks
of the Petroleum Equipment Institute.
Copyright © 2010 All rights reserved.

return to top of page

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.