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April 5, 2011 | Vol. 61, No. 7

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In This Issue
Dear PEI Member:

Registration and housing are now open for the 2011 PEI Convention at the NACS Show in Chicago, October 1-4, 2011. The event will occur at McCormick Place, just 3 miles from the city's major hotels.

PEI headquarters will be at the Sheraton Chicago Hotel and Towers. This is where many PEI events will take place, including the 10-Group Meetings and Breakfast, the Young Executives Roundtables and Reception, and the After-Hours Lounge. Several other downtown hotels also have room blocks reserved for PEI members, including the Crowne Plaza, the Doubletree and the Hyatt Regency. Consider making your reservations early so you can take advantage of the variety of housing options and choose what best suits your needs.

The PEI Convention will open with Kick-Off Breakfast keynote speaker Michael Durant, whose story is the inspiration behind the best-selling book and Academy Award-winning film Black Hawk Down. Durant has turned his experiences as the pilot of the Black Hawk helicopter Super Six Four, which was shot down in Mogadishu, Somalia, into a compelling and powerful story of survival and motivation.

The PEI Board of Directors is convening later this week for its mid-year meeting, and will finalize the convention sessions that have been proposed by the PEI Education Committee. As always, PEIís sessions promise to bring you the latest information about issues that impact your business. Look for more information in upcoming communications.

PEI is pleased to provide deep discounts for early registrants. Full early-bird registration is only $295 for PEI members and $495 for non-members. Full registration includes admission to the education sessions, all three days of the trade show, the PEI Industry Reception and the NACS Welcome Reception. Early-bird rates are available for a limited time only, so register now to get the biggest savings.

Special group discounts also are available to companies that bring five or more employees to the convention. This year, spouses also qualify for group registration discounts.  Go to for further information and to register and reserve housing. If you need assistance with registration or hotel reservations, donít hesitate to call us at 918-494-9696.

The United States Environmental Protection Agency (EPA) wrote a letter March 24 to industry representatives in response to "a number of inquiries" EPA has received asking "whether it is currently legal for retail gasoline stations to sell gasoline blended with more than 10 percent ethanol for use in motor vehicles and nonroad engines."

PEI 2011 Convention Registration/Housing Open

EPA Clarifies E15 Use

Report: More Ethanol, Less Gasoline

In This Issue

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April 28, 2011
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EPA reiterated that E15 blends cannot be sold for use in 2001 and newer conventional- fueled vehicles until EPA completes the conditions of the E15 waivers granted for using E15 in those vehicles. Those conditions include the registration of the fuel mandated by the Clean Air Act and the issuance of labeling requirements for pumps dispensing E15. Both of these conditions are expected to be completed by EPA within the next several months. Until that time, E15 may be sold only for use in flexible-fueled vehicles or engines.

To avoid significant civil penalties for improper fuel blending, EPA suggests that retail gasoline stations currently selling gasoline blended with more than 10 percent ethanol for use in flex-fueled vehicles "take appropriate steps" to prevent misfueling. EPA wrote that the likelihood of violations can be reduced if the retailer selling more than 10 percent ethanol affixes "warning labels to all pumps dispensing this product informing the public that the product may only be used in flexible-fueled vehicles or engines." EPA also encouraged fuel providers to "employ other strategies at their facilities that are cost-efficient and effective in further reducing the risk of misfueling." 

Gasoline demand in the United States is expected to decline during the present decade as vehicles become more fuel-efficient and more ethanol is blended into gasoline. That is one of the key findings contained in a new report, Global Petroleum Market Outlook 2011, published by international consultant group Purvin & Gertz. The portion of the report that centered around ethanol―according to the Oil Dailyconcluded that:

  • The percentage of ethanol in the U.S. gasoline supply pool will rise 14 percent from current levels by 2020. Most of the increase in U.S. consumption will come from an increase in the use of E10. E15 likely will be in use, too. However the degree to which it will make inroads remains uncertain.
  • Corn-based ethanol produced in the U.S. will continue to dominate supply, but there also will be a sharp rise in imports of ethanol produced from sugar cane in Brazil.
  • There will be a slight rise in the use of E85 in flexible-fueled vehicles.
  • Cellulosic ethanol does not have much of a future in the U.S. because the technology needed to produce it is too expensive.

Twelve groups
representing auto, marine, motorcycle, outdoor power equipment, personal watercraft and snowmobile groups filed a petition last week with the U.S. EPA, asking the agency to ensure the continued sale and availability of gasoline blends no greater than 10 percent.
South Dakota Governor Dennis Daugaard signed the "Blender Pump Freedom" bill into law last month. The law gives gasoline station owners the ability to install ethanol blender pumps and other biofuel-related offerings without having to receive franchise agreement approval.
Sales of E85 in Iowa reached an all-time high last year of 9.31 million gallons, a 43 percent increase over 2009 sales, according to the Iowa Renewable Fuels Association.

Jones & Frank
, headquartered in Raleigh, North Carolina, has acquired the assets of Smith & LaMountain and Petroleum Solutions, Inc., both located near Springfield, Massachusetts. The acquisition will allow the company to serve customers on the eastern seaboard from Boston to Atlanta.
Nupi Americas, Inc., Houston, Texas, has appointed five firms to represent the company: RC Ford Associates, Inc. (Illinois, Indiana, Kentucky, Ohio and lower Michigan); S & R Sales, Inc. (North Dakota, South Dakota, Minnesota, Wisconsin and upper Michigan); Centennial Rep Agency, Inc. (Idaho, Montana, Wyoming, Utah, Colorado and New Mexico); Yeager and Associates (Maine, Vermont, New Hampshire, Massachusetts, Connecticut, Rhode Island, New York, Pennsylvania, New Jersey, Delaware, Maryland, Virginia, West Virginia and Washington, D.C.); and Lucas Ford Associates, Inc. (North Carolina, South Carolina, Tennessee, Alabama, Georgia and Florida).
OPW, A Dover Company, has named Ann Miller vice president of human resources. She will report directly to David Crouse, OPW's president.

Nouria Energy Corp. and Nouria Energy Ventures I LLC
have purchased 80 Shell-branded retail gasoline stations located in Massachusetts and New Hampshire from Motiva Enterprises LLC. As part of a simultaneous transaction, Getty Realty Corp. has acquired 66 of those stations in a sale/leaseback transaction with Nouria Energy Ventures.

Steel tank manufacturer
. Newberry Tanks, 205 North Walker Avenue, West Memphis, Arkansas 72301, has applied for manufacturer division membership. Brian Brinkley is vice president and general manager for the firm, which was established in 1951. The company manufactures aboveground and underground steel storage tanks approved by UL, STI, NFPA and EPA. The tanks, which can be used to store all types of petroleum fuels, blended fuels, aviation fuels and bulk oil, are sold through PEI distributors. Sponsored for PEI membership by Kelly A. Mulligan, Morrison, Dubuque, IA.
High-performance epoxy coating and lining manufacturer. Bridgeport Chemical LLC, 291 West McCallen Street, Sikeston, Missouri 63801, has applied for manufacturer division membership. Rob Russell is vice president of the firm, which was established in 1951. Bridgeport Chemical manufactures a thick-film, high-performance epoxy coating and lining for industrial use. The material is sold through distributors. Sponsored for PEI membership by David G. Russell, TankTechMO, Blodgett, MO.
Arkansas installation and testing firm
. Arkansas Petroleum Solutions, LLC, 220 Mill Pond Road, Conway, Arkansas 72034, has applied for service and construction division membership. Nathan Huggins is the owner of the firm, which was established in 2009. The company installs, services, calibrates and tests petroleum marketing equipment. Sponsored for PEI membership by Thomas Brown, NatlPtrEqp, Attalla, AL.
Hong Kong contractor. Beijing JSD Petroleum Equipment Technology Co., Ltd., 704 Prince Edward Road East, Unit 01, 22F, New Trend Centre, Kowloon, Hong Kong, has applied for service and construction division membership. Wayne Tong is a director for the firm, which was established in 2005. The company is a specialized contractor, providing design, construction, installation and maintenance to its customers. Sponsored for PEI membership by Valentina Amadei, NUPI, Castel Guelfo, Italy.
Maryland petroleum equipment installation and service contractor. Petroleum Site Works, Inc., P. O. Box 627, College Park, Maryland 20741, has applied for service and construction division membership in PEI. Clerice Shipley is CEO of the firm, which was established in 2003. The company installs, maintains, repairs and removes storage tanks, piping, monitoring wells and vapor recovery equipment. Sponsored for PEI membership by Galen C. Heaps, PetroSupMD, Elkridge, MD. 

Petroleum Equipment Service, Inc.
, 1901 Memorial Boulevard, Kerrville, Texas 78028, has requested its membership in PEI be transferred from the service and construction division to the distributor division. The company represents Blueline, ChampLabs, Cim-Tek, Flex-Ing, Franklin, HuskyCorp, PetroClear, RedJacket, Smithpipe, Tuthill, Universal, Vaporless, VeederR, VeriFone, WatcoTanks and Wayne. The transfer is sponsored by DruAnn Boler, BolerEqp, Midland, TX, and William I. Reinhart, A&APumpSA, San Antonio, TX.


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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.