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May 20, 2011 | Vol. 61, No. 10

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In This Issue
Dear PEI Member:

Visits with members attending the Atlantic Region Energy Expo (May 3-5) and NACStech (May 16-18) gave us some insights into current business climate.

Local conditions in New Jersey, eastern Pennsylvania and southern New York. The majority (60 percent) of the equipment distributors and installation/service contractors that we talked with are "paying the bills," "making ends meet," and "hanging in there." Only one in five characterized business as somewhere between good and great, while a similar percentage said that 2011 has started out "rough." Specific conclusions include:

  • Construction of new retail sites just is not happening. Customers are still having trouble obtaining financing, and small operators are not upgrading their sites. Better financed retailers are holding on to their money. PEI members observed that there is too much competition for available large construction jobs. Members at the AREE show did not express any reason for optimism for new retail construction.
  • Work (equipment sales, service and installation) on the commercial, industrial and governmental (particularly the military) side is strong and profitable. There always seems to be an uptick when gasoline/diesel prices spike, and this year is no exception.
  • Environmental contractors were bullish about the cleanup work they have on the books.  
  • The sale and installation of diesel exhaust fluid (DEF) equipment continues to gain momentum as fleet owners move from jugs to totes to mini-bulks to tanks. It just keeps getting better and better for PEI members working in this market.

  • Cash is king. The well-financed PEI members are better able to weather the storm and take advantage of opportunities as they arise.

National conditions. We talked with between 20 and 30 manufacturers at the two trade shows. Only a few were upbeat.

  • The price of raw materials continues to climb. Companies that can are passing on at least some of the higher costs to their customers. Expect another round of price increases as inflation begins to make a comeback.
  • The sale of service-type equipment related to the dispensing island is down a tad as newly installed POS equipment is still under warranty. The installation of PCI compliance equipment is nearly complete.
  • Corrosion issues with equipment exposed to ultra low sulfur diesel continue to grow.
  • Equipment distributors are taking longer than last year to pay their bills.
  • Manufacturers who are expanding internationally seem more bullish about the immediate future.

Business Conditions

Missouri Proposes Changes to UST Rules

Hydrogen Refueling

Iowa's Renewable Fuels Bill

In This Issue

Accommodations in the official PEI Convention Hotels are going fast!
Register & Reserve Housing Now!

PEI and Industry News »


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According to the Missouri Petroleum Storage Tank Insurance Fund (PSTIF), proposed changes to the rules governing the operation of underground storage tanks (USTs) were published in the May 16, 2011, issue of the Missouri Register.  A public hearing will be held in Jefferson City on June 16 for anyone who wishes to provide oral comments directly to the Hazardous Management Commission. After the public comment period, the Commission is expected to decide what the final rules will contain at its meeting on August 15. The earliest the rule changes could go into effect is December 30, 2011. PSTIF suggests the most important proposed changes are:

  • Tanks no longer will be "temporarily closed." A UST will either be "in use," meaning it still contains product, or it will be "out of use," meaning it's empty.
  • The owner of any tank that still contains product will have to maintain "financial responsibility" for cleaning up leaks (i.e., insurance with the PSTIF or another mechanism).
  • An owner/operator who empties a UST will have to do a site assessment within 12 months or remove the tank; two years would be allowed in certain cases.
  • An empty UST system (tank and piping) will have to be removed after five years.
  • High-volume facilities will have to comply with more stringent leak detection requirements.
  • New UST systems will be required to have under-dispenser containment and tank-top containment.
  • Specific requirements will be imposed on equipment companies who install new USTs, and the Department of Natural Resources will provide more oversight during installation.
  • More stringent requirements will apply to cathodically protected UST systems.

"I personally think natural gas is a logical fuel
to start blending into the supply mix. America has abundant supplies of natural gas. Cars can be converted to natural gas relatively easily. It's cleaner burning and better for the environment."Jay Ricker, chairman of Anderson, Indiana-based Ricker Oil and former chairman of NACS, in the May 2, 2011, issue of Convenience Store News.
"The national roll out of Diesel Exhaust Fluid (DEF) pumps at truck stops across North America is picking up speed in 2011. At the end of April over 125 locations had DEF pumps installed, and Texas led this development with 15 locations now offering bulk DEF across the state."May 2011 Newsletter.
"The ethanol industry has an ally in Agriculture Secretary Tom Vilsack, who has argued for shifting ethanol subsidies into installation of pumps and other infrastructure."―, May 10, 2011. 

Toyota and Shell
have teamed up to open the first public hydrogen fueling station in North America. The Shell station is located in Torrance, California, across the street from Toyota's west coast offices. Air Products provided the onsite equipment, performs station maintenance, and supplies hydrogen through a pipeline from plants in Wilmington and Carson, California.
Proton OnSite has been awarded a $1.7 million contract from the U.S. Army's Tank-Automotive Research, Development and Engineering Center to provide hydrogen refueling infrastructure in Hawaii, and to increase the efficiency and output potential of future commercial hydrogen stations.

The U.S. Environmental Protection Agency (EPA) has issued a complaint to the owners and operators of several upstate New York gasoline stations for violating federal regulations governing 17 underground storage tanks (USTs). The complaint, which seeks $233,000 in penalties, was issued to one individual and three companies that owned or operated gasoline stations in the towns of Mountain Lion, Plattsburg, Peru, Redford and Dannamora. The complaint alleged that the various owners and/or operators failed to:

  • Test the cathodic protection systems in three USTs;
  • Perform automatic line leak detector tests in sixteen USTs;
  • Provide adequate overfill prevention equipment in three USTs;
  • Conduct an annual leak test―or monthly monitoring―of five pressurized underground lines;
  • Properly cap off and permanently close one UST;
  • Report, investigate and confirm a suspected release at one facility; and
  • Keep adequate records of release detection monitoring.

For more information on the proper inspection and maintenance of underground storage tank systems, see

NASA has put out the call for a $200-million mission to show how to store and transfer rocket propellants in zero gravity refueling stations. The "In-Space Cryogenic Propellant Storage and Transfer Demonstration" will have to store liquid hydrogen at minus 423 degrees F and shield the fuel from outside heat sources. "We could create a small space economy in propellants and refueling," suggested Chris Moore, deputy director of advanced capabilities division for NASA.     

Comprehensive renewable fuels legislation that includes a 3-cent-per-gallon retailer tax credit for E15 sales was passed by the Iowa legislature earlier this month. The bill now heads to Governor Terry Branstad, who is expected to sign the bill into law. If the bill becomes law, it is believed that Iowa will be the first state to offer an E15-specific incentive for fuel retailers. The bill contains a number of other provisions, including:

  • Misfueling liability protection for retailers;
  • A 16-cent-per-gallon tax incentive for E85;
  • An extension of the biodiesel retailer tax credit for blends of B5 and higher;
  • $3 million in annual funding for Iowa's Renewable Fuel Infrastructure Program which provides grants for installation of blender pumps, E85 pumps and biodiesel dispensers at fuel stations across Iowa; and
  • Codifying the ASTM fuel specification for biodiesel blends between 6 percent and 20 percent biodiesel.

William Souder (Bill) Hockman
, chairman of Hockman-Lewis LLC, West Orange, New Jersey, died April 29 at the age of 71. Bill's career at Hockman-Lewis, which spanned 47 years, saw the company experience enormous growth beginning in the 1970s and continuing into the 1990s. He was also a director in the Resource Foundation, a charitable foundation that sets up micro-lending operations in Latin America so that small entrepreneurs can begin businesses that will lead to the end of the terrible cycle of poverty that persists throughout the region. 

Car wash equipment manufacturer
. Sonny's Enterprises Inc., 5605 Hiatus Road, Tamarac, Florida 33321, has applied for manufacturer division membership. Paul Fazio is CEO of the firm, which was established in 1949. Sonny's manufactures conveyorized car wash equipment, parts and supplies which are sold through distributors. Sponsored for PEI membership by John W. Moore, Banks&Co, Fresno, CA.
Additive and fuel control systems manufacturer. Economy Controls Corp., 9801 Gravois Road, St. Louis, Missouri 63123, has applied for manufacturer division membership. William Freeman is director of the company, which was established in 1975. The company specializes in complete systems and separate components to fill, dispense, measure, inject and transfer liquids. The equipment is sold through PEI distributors. Sponsored for PEI membership by Joyce Hale, IlliniOMEq, Pekin, IL.
Point-of-sale system provider. Altametrics AutoGas, 1381 Wald Road, Suite D, New Braunfels, Texas 78130, has applied for manufacturer division membership. Ted Sarosdy is director of sales for the company, which was established in 1983. The company provides everything needed to run the POS, including register functionality, managing the pumps and connecting to credit card processors. The products are sold through distributors. Sponsored for PEI membership by John Farrell, UntdPumpTX, Schertz, TX.
Wisconsin training firm. UST Training (Powered by Petroleum Training Solutions), P. O. Box 80265, Saukville, Wisconsin 53080, has applied for affiliate division membership. Ben Thomas is a partner in the firm, which was established in 2003. The company provides underground storage tank education via online training to UST operators, technicians and inspectors. Sponsored for PEI membership by William J. Mascott, MascottEqp, Portland, OR.  
Vietnam import/export firm. Vinamco Import & Export Petroleum Equipments JSC, 83, Street 22, Ward 11, Dist. 6, Ho Chi Minh, Vietnam 70000, has applied for affiliate division membership. Tran Thi Le Thuy is vice manager for the firm, which was established in 2004. The company specializes in trading dispenser equipment, petrochemical pumps and flow meters in Vietnam, Laos and Cambodia. Sponsored for PEI membership by Steve Murray, TotlConSys, Fort Wayne, IN.
Texas installation and repair company. Service Station Repair, P. O. Box 7670, Waco, Texas 76714, has applied for service and construction division membership. Darel Newsome is owner of the firm, which was established in 1984. The company installs and services gasoline equipment. Sponsored for PEI membership by Chris Monroe, Monroe, Arlington, TX.
Ontario construction company. Kenstruct Ltd., 24533 Park Road, Pefferlaw, Ontario L0E 1N0, has applied for service and construction division membership. Ken Jamieson is president of the firm, which was established in 2010. The company builds convenience stores, car washes, bulk plants, commercial fueling systems, private fuel outlets and large-scale backup generator systems. Sponsored for PEI membership by Chris Vassos, WalecoInc, Mississauga, ON.


  • Williams Lubrication Equipment, Nashville, TN (dis)
  • Petroserv Inc., Fort Worth, TX (dis)
  • Newberry Tanks, West Memphis, AR (mfr)
  • Bridgeport Chemical LLC, Sikeston, MO (mfr)
  • Gulfcoast Software Solutions, LLC, Clearwater, FL (aff)
  • Arkansas Petroleum Solutions, LLC, Conway, AR (S&C)
  • Beijing JSD Petroleum Equipment Technology Co., Ltd., Kowloon, Hong Kong (S&C)
  • Petroleum Site Works, Inc., College Park, MD (S&C)
  • ATC Associates Inc., Conway, AR (S&C)
  • Hayden Workman Electrical Inc., St. Michael, Barbados (S&C)
  • TRS Petroleum Installation, Inc., Marion, NC (S&C)
  • Dandy Jaya Sdn Bhd, Kuala Belait, Brunei Darussalam (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.