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June 14, 2010 | Vol. 60, No. 12

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In This Issue
Dear PEI Member:

We'd characterize business as "good" for about one-third of our members, not so good for another third, and about average for the last third. If that sounds like it's all over the map, well, it is.

Let's start with the happy campers. For them, PCI is a godsend for their service departments, the sale of PCI-related equipment, and dispenser upgrades. A diversified customer base helps, as does a sustained period of improved gasoline margins. A few members are actually enjoying their best year in the past decade, which is even more noteworthy when you consider the banner years many experienced from 2007 to 2009. These companies also seem to be located in economically strong regions of the country.

Those experiencing a below-average year seem to be equipment distributors and installation contractors in relatively depressed areas where convenience stores are overbuilt and credit is still tight. Layoffs and cutbacks are a big part of their business strategy.

The group in the middle isn't exactly singing the blues because they are comparing 2010 with several very good years. They tell us that they may not achieve the same sales and profits as 2008 and 2009 but will still end up in the black.

Things will begin to change as we enter the second half of 2010. PCI will begin to lose some steam and there isn't a huge national program standing in the wings to take its place until EPA makes its move to allow E12 or E15 sometime later this summer. Then, frankly, we aren't sure what to expect.

The ORVR (onboard refueling vapor recovery) "widespread use" definition, necessary before the country can move away from Stage II vapor recovery, has been "elevated as a priority" at EPA, according to Janet McCabe, EPA Principal Deputy Assistant Administrator for the Office of Air and Radiation, as reported in PMAA's Weekly Review (WR-10-20). EPA plans to issue a proposed rule on the subject in August or September 2010. PMAA reports "the proposed rule will undergo a public comment period and will proceed through the normal rulemaking process." That means EPA will not define "widespread use" until 2011, at the earliest.

Business Conditions

Stage II Vapor Recovery

NFPA & Mid-Level Ethanol Blends


In This Issue

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The proposed Tentative Interim Amendment (TIA) to the National Fire Protection Association's Code for Motor Fuel Dispensing Facilities and Repair Garages (NFPA 30A) that would provide the authority having jurisdiction with the ability to approve dispensing devices currently listed for E10 for use with mid-level alcohol blended motor fuels is moving forward. On June 7, the proposed TIA achieved the necessary 75 percent majority vote needed from the Technical Committee on Automotive Service Stations to proceed to the next step in the code change process. The public comment closing period on the TIA is June 18, 2010. Public comments will be circulated to the technical committee on June 21, 2010. 

Gov. Phil Bredesen signed legislation into law last month that authorizes the state's petroleum underground storage tank cleanup fund to be used for investigating, identifying, cleaning up, monitoring, and maintaining petroleum sites and locations from which underground storage tank systems have been removed. Previous to the change, the Tennessee Petroleum Underground Storage Tank Act limited the use of the fund for activities at a site or area where the tank was located. The law also changes the definition of those financially responsible for investigation, cleanup, monitoring, and other costs related to petroleum tank releases as individuals or entities whose intentional or negligent actions directly caused such releases. Prior to the change, "responsible parties" were limited to owners and operators of the site or leaking tank.

The Hyatt Regency is PEI’s headquarters hotel for the 2010 PEI Convention at the NACS Show (October 5-8 at the Georgia World Congress Center) in Atlanta. Additional room blocks for PEI attendees are also available at the Westin. Rooms are filling up fast, so register for the Convention and book your hotel as soon as possible. All housing is made through Connections Housing and not through the individual hotels.

will sell its retail fuel business in Australia to 7-Eleven Stores Pty Ltd. The sale will cover 295 service stations, most in metropolitan areas of eastern Australia. 
Marathon Oil has entered into a nonbinding letter of intent to sell most of its downstream assets in Minnesota to a group of private investors for about $800 million. The assets include 166 SuperAmerica convenience stores.
Sunoco Inc. CEO Lynn Elsenhans said at the Sanford C. Bernstein Strategic Decisions Conference that although she is not against blending more than 10 percent of ethanol into gasoline, the issue of whether such blending would void vehicle warranties is a major concern.  

Colorado software solution provider
. Infor Global Solutions, 5555 Tech Center Drive, Suite 300, Colorado Springs, Colorado 80919, has applied for affiliate division membership. Thad Zylka is vice president, sales for the firm, which was established in 1982. The company provides software solutions to the petroleum distribution industry. Sponsored for PEI membership by Gregg Miller, NWPump, Portland, OR.
Maine software provider. The Scan Group, Inc., 10 Forest Falls Drive, 8-B, Yarmouth, Maine 04096, has applied for affiliate division membership. Elizabeth Adams is president of the firm, which was established in 2001. The Scan Group has a proprietary back-office software package exclusively designed for convenience stores. Sponsored for PEI membership by Jerry Tigges, OilEqpWI, Madison, WI.
Fuel dispenser manufacturer. Hefei Zhongsheng Fueling Equipment Manufacture Co., Ltd., Luyang Industry Zone, Heifei City, Anhui Province, China 230041, has applied for affiliate division membership. Paul Pu is foreign trade manager for the company, which was established in 2005. The company manufactures fuel dispensers and components. Sponsored for PEI membership by Betty Bao, AileOilEqp, Shanghai, China.
California construction services firm. Cedar Landmark Development, 14748 Pipeline Avenue, Suite H, Chino Hills, California 91709, has applied for service and construction division membership. Rabin Sater is president of the firm, which was established in 2008. The company provides commercial construction services and specializes in the retail and fueling industry. Sponsored for PEI membership by B. A. Scowley, ShldsHarpr, Martinez, CA.
Ontario installation and maintenance firm. Albert's Gas Station Maintenance Inc., 108 Elmwood Avenue, Cambridge, Ontario N1R 4Y6, has applied for service and construction division membership. Albert Budding is president of the firm, which was established in 1997. The company maintains and installs equipment at service stations. Sponsored for PEI membership by Chris Vassos, WalecoInc, Mississauga, Ontario.


  • American Compliance Technologies, Bartow, FL (S&C)
  • Kinetik Industrial Group LLC, Miami, FL (S&C)
  • Kenneth Retif, Retif Oil & Fuel, New Orleans, LA (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.