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October 20, 2010 | Vol. 60, No. 20

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In This Issue
Dear PEI Member:

On October 13, the U.S. Environmental Protection Agency (EPA) waived a limitation on selling fuel containing more than 10 percent ethanol for model year 2007 (MY2007) and newer cars and light trucksabout 42 million vehicles and 20 percent of the nation's fleet. The waiver applies to fuel that contains up to 15 percent ethanol (E15). A decision on the use of E15 in model year 2001 to 2006 (MY2001-2006) vehicles will be made after EPA receives the results of additional Department of Energy (DOE) testing, which is expected to be completed in November. No waiver is being granted this year for E15 use in model year 2000 and older cars and light trucks or in any motorcycles, heavy-duty vehicles, or non-road engines because currently there is no testing data to support such a waiver.

EPA Administrator Lisa P. Jackson made the decision after a review of DOE's extensive testing and other available data on E15's impact on engine durability and emissions. EPA's decision represents the first of a number of actions that are needed before the country can move towards commercialization of E15 gasoline blends.

Additionally, several steps are being taken to help consumers easily identify the correct fuel for their vehicles and equipment. First, EPA is proposing E15 pump labeling requirements, including a requirement that the fuel industry specify the ethanol content of gasoline sold to retailers. There would also be a quarterly survey of retail stations to help ensure their gasoline dispensers are properly labeled.

For fuel quality purposes, E15 must meet ASTM International standards for ethanol. In addition, its Reid Vapor Pressure is limited to 9.0 pounds per square inch so that MY2007 and newer motor vehicles can meet evaporative emissions standards with E15 during the summertime gasoline volatility season (generally May 1 to September 15).


EPA Approves E15 Waiver

Equipment Companies Sold

SPCC Compliance Date Extended


In This Issue

PEI and Industry Events »


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It is important to note that EPA's waiver decision allows but does not require the use of E15 in MY2007 and newer cars, light-duty trucks, and SUVs. Moreover, a multitude of other decisions have to be made at both the federal and state levels before E15 can actually be distributed to consumers. Marilyn Herman, president of Herman & Associates, estimates that 37 states have more than 90 laws and/or regulations on the books that currently restrict E15 blending.

This E15 waiver decision is by no means an assurance that a widespread E15 market will develop quicklyin fact, it probably won't because fuel retailers see too many costs and liabilities associated with selling the fuel. We believe early adopters of E15 are likely to be small marketers in ethanol-producing areas of the country. Here are some of the big steps that must occur before E15 can be commercialized:

  • The regulatory program proposed by EPA to help mitigate the potential for misfueling engines, vehicles and equipment with blends greater than 10 percent ethanol must be published in the Federal Register. That should happen this month.
  • A 60-day period for comments to the proposed misfueling rule will begin on the day the proposal is published in the Federal Register.
  • A public hearing on the proposed misfueling rule will be held on November 16, 2010, at the Millennium Knickerbocker Hotel in Chicago, Illinois. The hearing will begin at 10 a.m. and continue until everyone has had a chance to speak. PEI will attend that meeting.
  • We expect EPA to make a decision to permit E15 to be used in MY2001-2006 light-duty motor vehicles in December 2010. 
  • Depending on the nature and number of comments received, EPA is expected to issue a final rule on its pump labeling requirements in 2011. Although the proposed label contains only 38 words, we expect it will take EPA at least until the summer of 2011 to finalize the language of the label and issue the rule. In the meantime, work will continue on the numerous legislative, regulatory and industry hurdles to the implementation of E15.

Dresser, Inc.
, headquartered in Addison, Texas, announced that an agreement has been reached for Dresser to be acquired by GE for $3 billion. The deal includes all Dresser businesses. Dresser is the parent company of PEI member Dresser Wayne, located in Austin, Texas. 
Husky Corporation, Pacific, Missouri, has acquired the assets of BJ Enterprises of Waynesboro, Virginia. The operations of BJ Enterprises, a manufacturer of tank gauges, tank monitors, and filter crushers with a focus on the quick lube industry, have been completely relocated and integrated into Husky's operation in Pacific.

Casey's General Stores Inc.
, Ankeny, Iowa, has entered into an agreement with Harper Oil Co. Inc., Springfield, Illinois, to purchase up to 19 of its 26 Harper On The Way convenience stores in Illinois.
BP West Coast Products LLC, La Palma, California, is selling 28 ARCO-branded retail sites in California (Sacramento, San Francisco, Los Angeles and San Diego areas), Oregon (Eugene and Portland), and Washington (Seattle).
Sam's Mart, Matthews, North Carolina, has closed on the purchase of 20 former ExxonMobil On the Run sites in the Charlotte, North Carolina, area.  

White-Tucker Company
, Houston, Texas, will celebrate its 100th anniversary with an open house on October 28.
S. Bravo Systems, Inc., Commerce, California, has appointed JV & Associates as its representative in Florida.

The U.S. EPA has extended the compliance date for revised Spill Prevention Control and Countermeasure (SPCC)
plans for petroleum bulk plants to November 10, 2011. The deadline extension does not remove the regulatory requirement for owners and operators of facilities in operation before August 16, 2002, to maintain and continue implementing an SPCC Plan in accordance with the SPCC regulations then in effect.
Diesel cars accounted for just 40 percent of new car sales in Europe last year, according to J.D. Power Automotive Forecasting. That is down from a peak of 54 percent in 2007. Diesel fuel's price advantage over gasoline is eroding, as wholesale diesel prices have gone above gasoline for the first time this year. Even at the pump, where diesel is taxed less than gasoline, diesel is currently only 10 percent cheaper than gasoline, compared to 15 percent this time last year.Oil Daily, September 29, 2010.
Mayor Annise Parker of Houston, Texas, plans to shut down two-thirds of the city's 99 fueling stations as a cost-cutting measure intended to reduce the city's potential liability for leaking fuel storage systems.

Over the next couple of years, tens of thousands of electric vehicles (EVs) will be sold throughout the world. These new battery-powered vehicles have much longer ranges than their predecessors―up to 250 miles in the case of the Tesla Roadster, but mostly around 100 miles―and are likely to be the first to sell in large numbers. J.D. Power Automotive Forecasting predicts that by 2020, annual sales of electric vehicles will reach 2 million. Banking Giant HSBC is even more optimistic and puts the figure at 9 million vehicles. That's short of the 61 million petroleum-powered vehicles sold around the world in 2009 but still a huge leap from the 5,000 or so EVs sold last year. But serious questions still remain about the infrastructure―or rather, the lack of infrastructure―to charge them. The problem is that all the proposed recharging models, such as home/work plug ins, battery swap stores, and electric/gasoline hybrid vehicles, have flaws.―Power Struggles, Charging Tomorrow's Cars, Gerard Wynn and Kwok W. Wan, Reuters, September 10, 2010.  

Raymond D. Thompson
, founder of Ray's Petroleum Equipment, Inc., headquartered in Wichita, Kansas, passed away September 15 after a lengthy illness. He was 77. Ray started his company in 1976 and sold his locations to Double Check Company in two separate transactions (2002 and 2006). Survivors include his wife of nearly 54 years, Sue; a son, David; and two daughters, Debra Knight and Kris McElhiney. 
Vivian Bartt
, manager of membership and communications for STI/SPFA, died September 28 in Barrington, Illinois. She also was editor of the group's Tank Talk publication. Survivors include her husband, Edward, and daughter, Nicole Maffia.
Colonel John F. Rhemann, Sr., father of Forrest Rhemann (president of Petroleum Equipment Co., Inc., Richland, Mississippi) died October 5. He served as a Marine in the Pacific in World War II, in the U.S. Air Force in Korea, and flew many missions during four deployments in Vietnam. During his military career, he received two Legions of Merit, two Distinguished Flying Crosses, a Bronze Star, and 14 Air Medals.
Robert (Bob) H. Arn, founder and CEO of Petroleum Containment, Inc., Jacksonville, Florida, passed away October 7 at the age of 78. He is survived by his wife, Janet; four children; 21 grandchildren and 29 great-grandchildren.

Idaho industrial coating firm.
Northwest RCI, Inc., 1815 American Legion Boulevard, Mountain Home, Idaho 83647, has applied for service and construction division membership. Jessica Roberts is a partner with the firm, which was established in 2005. Northwest RCI specializes in extreme service area applications and applies both tank linings and blast mitigation coatings. Sponsored for PEI membership by Steven R. Leonard, LeonardEqp, Twin Falls, ID.   
Missouri installation and service company. All-American Pride, LLC, P. O. Box 872, Oak Grove, Missouri 64075, has applied for service and construction division membership. Ida M. Barnhill is owner of the firm, which was established in 2008. All-American installs and removes storage tanks; installs and repairs lube equipment, leak detectors, hoses and fittings; and cleans tanks. Sponsored for PEI membership by Ken Wilcox, WilcoxAscs, Grain Valley, MO.
Wisconsin import/export firm. HMI USA, Inc., 6100 West Donges Bay Road, Mequon, Wisconsin 53092, has applied for affiliate division membership. Steve Plier is vice president of global sourcing for the firm, which was established in 1985. HMI USA is customer-focused to control all aspects of the sourcing processfrom factory location, tooling and product engineering to quality inspection, logistics, warehousing and distribution. Sponsored for PEI membership by Glenn K. Walker, VST, Springboro, OH.


  • Wiley Equipment Company Inc., El Segundo, CA (dis)
  • E.J. Ward, Inc., San Antonio, TX (aff)
  • SISTEMAS CONICOM S.A.S., Bogota, Colombia (aff)
  • Dosmatic - USA, Carrollton, TX (mfr)
  • FuelWatch, Atlanta, GA (aff)
  • Fitsafe Technologies, Glen Waverley, Victoria, Australia (aff)
  • The Same Electric Company, Aurora, CO (S&C)
  • US Tanx, LLC, Maryville, TN (S&C)
  • ABA-CON Aviation Services, Titusville, FL (S&C)
  • Ted Slack Environmental Services Inc., Kenilworth, NJ (S&C)
  • First Fueling Systems, Inc., Albuquerque, NM (S&C)
  • Arun Kundra, Capital City Travel Center, Monticello, FL (O&E)
  • Juan Madrid, Grupo Estactiones, Medelin, Colombia (O&E)
  • Maha Rifai, ConocoPhillips, Harleysville, PA (O&E)
  • Johnny Thompson, BP, Stockbridge, GA (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.