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September 14, 2010 | Vol. 60, No. 18

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In This Issue
Dear PEI Member:

A first-rate program for PEI's annual convention and tradeshow in Atlanta (October 5-8) has been planned by the 2010 PEI Education Committee. All of our speakers in Atlanta are experts in their field and many have had long-term relationships with PEI and our members. Here is the lineup:

Dan Thurmon, Kick-Off Breakfast, Wednesday, October 6. Dan's high-energy presentation is like none you've ever seen before. It's so good that members of the Association Executives Council of the National Association of Wholesaler-Distributors ranked Dan as one of the top six speakers on the national circuit this year. His audiences range from Fortune 500 companies to our troops in Iraq and Afghanistan. His topic: Off Balance on Purpose. This event has limited seating and requires a separate ticket.

Jeff Leiter is back with us once again to talk about the regulations that are expected to drive our business in the years ahead. PEI and Jeff go back well over two decades; he understands our business and speaks our language. His Regulatory Update session will be presented twice on Wednesday, October 6, to ensure that those who want to hear his presentation will have the opportunity to do so.

If you care about how developments in Washington will affect your business, you are in for a rare treat with Jade West's session on the Political Outlook (Wednesday, October 6). Jade is senior vice president for government relations for the National Association of Wholesaler-Distributors (NAW). Prior to joining NAW, she was staff director for the U.S. Senate Republican Policy Committee and served as executive director for the U.S. Senate Steering Committee. We have known Jade since she came to NAW in 2002. There is no person better to talk about the midterm election and national issues impacting distribution. She is a great speaker and her topic is timely. We guarantee you will not be bored.

There is growing evidence that social networking can be a powerful ally to businesses. Which strategies are the most effective and how can PEI members use them successfully? Dave Nelsen will explain how to tap into powerful social networks, social media, and internet communication tools in his Social Media presentation, offered twice on Wednesday, October 6.

President of the oldest economics research firm in the country, Alan Beaulieu's Institute for Trend Research has correctly predicted historic turning points in the economy for 60 years with a 96 percent accuracy rate. Alan, who also is senior economic advisor to the National Association of Wholesaler-Distributors, was our highest ranked speaker last year. We brought him back because he is one of the few individuals who makes economics interesting while providing easy-to-understand action strategies for companies involved in distribution. His Economic Update will be presented Wednesday, October 6.

PEI 2010 Convention Speakers

ADA Regs. Revised

Canada To Require E5


In This Issue

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Two panels dealing with fuels issues will be offered prior to the PEI Membership Brunch on Thursday, October 7. One panel, comprised of industry experts and federal regulators, will provide the latest information on the waiver request of Growth Energy to make E15 available to vehicles that are not flex-fuel compatible. The other panel of experts will share the latest information available on the effect of ultra low sulfur diesel (ULSD) on petroleum marketing equipment. Plan on splitting your team up since these sessions will be offered simultaneously.

Philip Verleger will deliver the keynote address during PEI's annual membership meeting and brunch. He will speak on the Future of Petroleum Motor Fuels and Trends in the Current Fuels Market. We talked to Dr. Verleger last Friday about his presentation and are certain you will find it very thought-provoking. Bob Renkes will conclude the session and speak about the Outlook for the Petroleum Equipment Industry after Dr. Verleger's talk.

PEI has put together an outstanding group of sessions for attendees in Atlanta. Admittance for all sessions is by badge only. If you have not yet registered for the 2010 PEI Convention, you can take advantage of advance registration discounts for a few more days. Click here to register or for more information.

On July 23, 2010, Attorney General Eric Holder signed final regulations revising the U.S. Department of Justice's ADA regulations, including its ADA Standards for Accessible Design (2010 Standards), which cover fuel dispenser layout and accessibility. We anticipate the official text will be published soon in the Federal Register. The final rules will take effect six months after the date on which they are published in the Federal Register. Compliance with the 2010 Standards is permitted after that date, but not required until 18 months after the date of publication.

The regulations include a general "safe harbor" under which elements in covered facilities that were built or altered in compliance with the previous 1991 Standards will not be required to be brought into compliance with the 2010 Standards until the elements are subject to a planned alteration.

The 1991 Standards set the maximum height for side reach at 54 inches above the floor. The 2010 Standards lower that maximum height to 48 inches for a forward or side reach to a gas pump and/or card reader. The new Standard also states that at least one pump for each type of fuel must be accessible. The 2010 Standards exempt gas pump nozzles from the technical requirement for activating force.

At a later date, we will provide more information about the alterations provisions and the "technically infeasible" exception to the Standards as it relates to dispensers with internally-mounted card readers.

On September 1, the Government of Canada announced that regulations requiring an average renewable fuel content of five percent in gasoline have been finalized and will come into effect starting December 15, 2010. Canada will implement a requirement for two percent renewable content in diesel fuel and heating oil, subject to successful demonstration of technical feasibility under the range of Canadian conditions, which would be put in place by an amendment to the Renewable Fuels Regulations.

South Dakota has begun testing E30 in some of the state's flex-fuel vehicles (FFVs) as part of a yearlong study to determine the most cost-effective fuel blend for those vehicles. A test pool of 86 model year 2009 Chevrolet Impalas is being used to compare the cost per operating mile of higher blends of ethanol and E10. Half of the pool is being fueled with E10 for the entire year while the remaining 43 vehicles were fueled for six months with E85 and will use E30 for the remainder of the study.

Test results from the E85 portion of the study showed that the fuel did not improve operating costs per mile. While E85 cost 23 cents per gallon less than E10 during the six-month test period, it resulted in a 23 percent decrease in miles per gallon, equating to a nearly even operating cost per mile when compared to E10. The state began using E30 in the test group in July and so far has not compiled any preliminary results of E30 versus E10 or E85.Ethanol Producer Magazine, September, 2010.

Franklin Fueling Systems, Madison, Wisconsin, has acquired all the outstanding shares of PetroTechnik Limited, Ipswich, Suffolk, United Kingdom. PetroTechnik's consolidated annual sales are about $38.6 million. Don Kenney, president of Franklin Fueling Systems, stated, "The acquisition of PetroTechnik and its subsidiaries in the UK, France, Brazil, India and China, doubles Franklin Fueling's global pipe and containment sales, doubles our revenue in Europe and increases our overall non-U.S. sales by 50 percent." John Boudry, chief executive officer of PetroTechnik, will provide consulting services throughout the integration.    

The Clean Diesel Fuel Alliance (CDFA), a partnership of public and private organizations created to facilitate the transition to ultra low sulfur diesel (ULSD), has published Guidance for Underground Storage Tank Management at ULSD Dispensing Facilities. The guide is intended to provide basic information about how to prevent the spread of bacteria and fungi in tanks and how to identify symptoms of contamination. It also provides information about corrosion issues reported by respondents to a PEI survey conducted this spring. Download the full guide here

. The State Water Board has determined that diesel exhaust fluid (DEF), with an approximate urea solution of 30 percent, is not a hazardous substance as defined in Section 25281 of the Health and Safety Code. As a result, underground storage tanks storing DEF are not regulated under Chapter 6.7 of the Health and Safety Code.
Dallas. U.S. District Judge Ed Kinkeade denied an injunction sought against a Dallas ordinance that gives CNG-fueled taxicabs the right to go to the front of the cabstand at Dallas Love Field. The ordinance was passed by the Dallas City Council in an effort to improve the city's air quality. The injunction was sought by the Association of Taxicab Operators USA, whose members drive gasoline-powered cabs.
New Jersey. The New Jersey Department of Environmental Protection has adopted regulations to reduce the sulfur content of heating oil to 15 parts per million (ppm). The transition to ultra low sulfur heating oil will be phased in over six years with an interim 500-ppm standard for 2014, followed by 15 ppm in 2016.  
Suffolk County, New York. Of the county's 542 gasoline stations, 61 have yet to comply with the county's requirement that all underground storage tanks be secondarily contained. Suffolk County granted some extensions through May. Fines increased in August to $1,000 per noncompliant tank per month. The fines increase in November to $2,000 per tank per month.

Jones & Frank
has relocated its branch office in Fredericksburg to 1319 Lafayette Boulevard, Fredericksburg, Virginia 22401. Phone: 540-735-9290. Fax: 540-735-9294. 
Royal Dutch Shell
has entered into exclusive talks to sell its downstream operations in Sweden and Finland after signing a nonbinding letter of intent with Finnish energy company St1. The downstream assets include Shell's 77,000 b/d Gothenburg refinery in Sweden and 340 Swedish service stations, as well as 225 service stations in Finland. St1 already owns approximately 650 service stations in Finland, Sweden, Norway and Poland. It also owns six ethanol-producing plants in Finland.
The Southeast Propane Autogas Development Program will convert nearly 1,200 vehicles from conventional gasoline to propane autogas and provide at least 17 propane refueling stations along major routes from Maryland to Florida to Louisiana. The Program is supported by funding from the American Recovery & Reinvestment Act and the U.S. Department of Energy's Clean Cities Program.
About 75 percent of the gasoline sold in Nebraska contains ethanol, primarily E10. According to the Nebraska Corn Board (NCB), the state has 59 E85 locations and five blender pumps. The NCB has financial grants for blender pumps available and currently has 15 applications approved for the pumps. For more information about the blender pump incentive program, visit

Robert W. Ensign, Sr.
, who spent almost 40 years in the petroleum equipment industry, most recently as owner of Ensign Petroleum Equipment Co. of Norwalk, Connecticut, before he retired a few years ago, died September 10. He was 80. Bob served a term (1993-1995) on the PEI Board of Directors, representing Distributor District 1. Survivors include his wife, Margaret (Meg), and two sons, William and Robert, Jr.

California distributor
. Wiley Equipment Company Inc., 126 Arena Street, El Segundo, California 90245, has applied for distributor division membership. Stephen R. Wiley is president of the firm, which was established in 1975. The company sells equipment which it installs and services. Wiley Equipment represents Alemite, Balcrank, Graco, GPI, Grover, Liquidynamic, Natl-Spncr and Samson. Sponsored for PEI membership by Tim Martin, Alemite, Fort Mill, SC.
Automated fuel management system provider. E.J. Ward, Inc., 8801 Tradeway Street, San Antonio, Texas 78217, has applied for affiliate division membership. Markay Ward is vice president of the firm, which was established in 1974. E.J. Ward builds, sells and services the Ward Automated Fuel Management System for dispensing, tracking and reporting fleet fueling. Sponsored for PEI membership by Richard Erickson, DonleePump, Ceres, CA.  
Colombia technology development company. SISTEMAS CONICOM S.A.S., Carrera 13a Numero 101 - 90 Apt 101, Bogota, Colombia, has applied for affiliate division membership. Luis G. Aguirre Abad is the director of engineering for the company, which was established in 2007. The company's software provides fuel level detection, automation and control systems. Sponsored for PEI membership by Fernando Santos, CFSI, Chia, Colombia. 
Florida aviation fuel storage design firm. ABA-CON Aviation Services, P. O. Box 308, Titusville, Florida 32751, has applied for service and construction division membership. Mary Ballard is CFO of the firm, which was established in 2008. The company designs, builds and installs aviation fuel storage facilities. Sponsored for PEI membership by Roy Creley, LakesReg, Belmont, NH.
New Jersey installation and service company. Ted Slack Environmental Services Inc., 180 Market Street, Kenilworth, New Jersey 07033, has applied for service and construction division membership. Theodore P. Slack III is president of the firm, which was established in 1977. The company is an environmental contractor and installs petroleum equipment, including underground and aboveground storage tanks. Sponsored for PEI membership by Wes Yeager, Yeager&Asc, Mendham, NJ.
New Mexico aviation fuel storage system company. First Fueling Systems, Inc., 100 Iron Avenue S.E., Albuquerque, New Mexico 87102, has applied for service and construction division membership. Joelle Swanberg is the primary contact for the company, which was established in 1996. First Fueling Systems provides aviation fuel storage systems, parts and repairs. Sponsored for PEI membership by John Farrell, D&HPumpSer, El Paso, TX, and Tracy S. Neil, Kachina, Albuquerque, NM.


  • Empress Equipsa Tica. S.A., San Jose, Costa Rica (dis)
  • Meridian Manufacturing Group, Lethbridge, Alberta, Canada (mfr)
  • Breslau Engineering, P.C., Lindenhurst, NY (aff)
  • Shore Corporation, Pittsburgh, PA (aff)
  • Neon Nieto S.A., San Jose, Costa Rica (S&C)
  • P&L Gas Dispensers, LLC, Houston, TX (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.