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December 7, 2011 | Vol. 61, No. 23

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In This Issue
Dear PEI Member:

EPA's proposal to revise its 1988 underground storage tank (UST) regulations was published in the November 18 Federal Register. The changes deal with the technical, financial responsibility and state program approval regulations. This proposal establishes federal requirements that are similar to key provisions of the Energy Policy Act of 2005 and updates certain 1988 UST regulations. The changes that impact PEI members were discussed in the October 31 TulsaLetter. Since that time, members have asked questions about EPA's proposal, some of which we will share here.

When do comments to the proposed rules have to be filed? Comments must be received on or before February 16, 2012. Instructions and tips for preparing comments are located on the first two pages (71708-9) of the proposal.

Does PEI intend to comment on the regulations? Probably yes, although the comments will be focused on EPA's proposed references to the association's recommended practices. Members that wish to respond to EPA's proposalespecially to questions specifically proposed in the Federal Registershould do so individually.

Will PEI publish a more detailed analysis of this proposed regulation? Yes, we are in the process of preparing a 12-page report for the next issue of the PEI Journal. The printed and online versions of the PEI Journal will be available in January.

How much business might this mean for the average PEI member? The regulatory requirements generally focus on additional testing and inspection of existing equipment, and do not reflect large-scale investments in equipment. EPA estimates that the average regulated facility will spend $890 per year in complying with the rule. Motor fuel retailers, which account for roughly 80 percent of UST systems, are expected to bear approximately 70 percent of the total costs.

The October 31 TulsaLetter mentioned that EPA knows of one code of practice currently being developed by PEI that will address testing of spill, overfill, release detection and secondary containment equipment. What is the status of that recommended practice? The PEI committee responsible for that document will meet December 15 and December 22 to resolve remaining issues. We anticipate that the committee will complete the draft of PEI's Recommended Practices for the Testing and Verification of Spill, Overfill, Release Detection and Secondary Containment Equipment (PEI/RP1200) in January. We expect the recommended practice will be made available to interested parties for comment in mid- to late-January.

Staff from Oakridge National Laboratory (ORNL) and the National Renewable Energy Laboratory (NREL) will host a free webinar on test results of fueling infrastructure equipment/materials with various ethanol blends.

EPA UST Proposal Published in Federal Register

Webinar: Ethanol's Impact on Petroleum Equipment

PEI's RP400 and RP600 to be Revised

Charles D. Kemp Scholarship Applications Available

In This Issue


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The webinar will cover the coupon exposure tests of plastics to various ethanol blends and a reference fuel. The presentation also will cover the impact ethanol blends have on metals and elastomersinformation covered in a January 2011 meeting among representatives from ORNL, NREL, Underwriters Laboratories and companies whose equipment was tested.

The webinar will be presented one time: Thursday, January 5, 2012, 2:00 pm, EST. Participants can join the event directly and listen in by calling 877-546-1573. Visit the link today and bookmark it for later reference. Contact Kristi Moriarty at or via phone (303-275-4477) with any questions.

The committees responsible for writing Recommended Procedure for Testing Electrical Continuity of Fuel-Dispensing Hanging Hardware (PEI/RP400) and Recommended Practices for Overfill Prevention for Shop-Fabricated Aboveground Tanks (PEI/RP600) are in the process of revising those documents. Any interested party is eligible to comment and offer changes to the document(s).

If you have suggestions or recommendations for revisions to either document, you can submit them now online. Instructions for completing the form are available at or All comments must be received at PEI by Tuesday, January 17, 2012, to be considered. If you have any questions or need further information, contact Bob Young ( or call 918-236-3966.

Senators Robert Menendez (D-NJ), Harry Reid (D-NV), Richard Burr (R-NC) and Saxby Chambliss (R-GA) have introduced companion legislation to H.R. 1380, the Alternative Transportation to Give Americans Solutions Act (NAT GAS ACT) of 2011, that would encourage the use of domestic natural gas to fuel vehicles. The House bill was introduced on April 6 and currently has 181 bipartisan co-sponsors.

Both bills include an extension and expansion of income tax credits for the purchase of natural gas vehicles and the installation of a natural gas fueling infrastructure. Production tax credits for vehicle makers to manufacture natural gas vehicles are also included in both bills.

The House bill includes a 50-cent-per-gallon excise tax credit per gallon sold, while the Senate version does not. Furthermore, the Senate bill would charge a temporary user fee on the sale of liquefied natural gas and compressed natural gas sold for use as a motor fuel to fund the new tax credits. The fee would ramp up by steps over a 10-year period, from zero in the first two years to 12.5 cents per gallon in the last two.

Each year, the PEI Foundation awards Charles D. Kemp Scholarships to deserving dependents of PEI member company employees. The scholarship awards are $1,000 each, or another amount determined by the PEI Foundation Board of Governors.

Scholarship applications for the 2012-2013 academic year are now open. To be eligible, an applicant must be a dependent of a full-time employee of a member company in PEI's manufacturer, distributor, service & construction, or affiliate divisions. The applicant must also plan to enroll as an entering full-time freshman for the 2012-2013 academic year at an accredited four-year college or university. Recipients are selected based on academic achievement, leadership, character, need and the applicant's intent to contribute to the future of the petroleum and energy handling equipment industry.

For additional information and to download the complete scholarship guidelines and application form visit Deadline for completed applications is March 31, 2012.

New Hampshire
. On November 29, the state's Department of Environmental Services amended its Stage II vapor recovery regulations (Env-Wm 1404.7). Beginning January 1, 2012, the amended rule eliminates the requirement to install Stage II controls on new or significantly modified gasoline dispensing facilities and to allow existing Stage II systems to be decommissioned. In addition, the regulation now requires facilities that currently have Stage II equipment to decommission the equipment by December 22, 2015, which is the same deadline tank owners have for removing any part of an existing single-walled underground storage tank system without secondary containment and leak monitoring. The rule requires that the Stage II system be decommissioned in accordance with all of the steps listed in Section 14 of PEI's Recommended Practices for Installation and Testing of Vapor-Recovery Systems at Vehicle-Fueling Sites (PEI/RP-300). The amendment applies to any gasoline storage tank or gasoline dispensing facility that (1) is subject to Stage I requirements; (2) is located in Hillsborough, Merrimack, Rockingham or Strafford county; and (3) has an annual throughput for any year of ≥420,000 gallons of gasoline or was constructed after November 15, 1990 (regardless of throughput).
Utah. The Utah Department of Environmental Quality (DEQ) has amended its UST rules to allow for up-front loan payments to contractors from the Utah Petroleum Storage Tank (PST) loan fund. Previously, proceeds were paid to the owner only after the work was done. The amended loan procedures allow a UST owner to apply for one initial disbursement of up to 40 percent of the approved loan amount. The owner/borrower must begin work on the project no later than 60 days after the initial disbursement. The procedure was modified to allow UST owners to make a partial payment to the UST installer before the work begins.        

Brenntag AG
has completed the acquisition of Multisol Group Limited (UK), the holding company of the Multisol Group. Multisol is a specialist in the distribution of lubricant additives and high-quality base oils in Europe and Africa.
ConocoPhillips said December 3 that its downstream business (refining and marketing) will receive the same $1.2 billion capital budget it received in 2011, with $1 billion going to its U.S. businesses and $200 million being funneled abroad.
Getty Petroleum Marketing Inc., a fuel marketer acquired in March by Cambridge Petroleum Holding Inc. from Lukoil OAO, filed for Chapter 11 bankruptcy protection December 5. Its Gasway Inc., Getty Terminals Corp. and PT Petro Corp. units also sought protection.
SOCAR, the state oil company of Azerbaijan Republic, on November 16 signed a sale and purchase agreement to acquire ExxonMobil's Swiss affiliate, Esso Schweiz GmbH. Esso Switzerland includes a retail station network with more than 170 service stations, of which 63 are company owned.

The National Highway Traffic Safety Administration (NHTSA) has opened an investigation into the safety of the Chevrolet Volt's battery pack. A lithium-ion battery pack in a Volt that had been through a crash test in May caught fire three weeks later at a test facility in Wisconsin, according to NHTSA. In lab tests completed in November by government regulators, a second Volt pack began to smoke and throw off sparks while a third battery pack caught fire a week after a simulated crash.

General Motors chairman Dan Akerson said December 1 that General Motors may redesign the battery to address issues raised after federal officials opened the safety probe. "We want to assure the safety of our customers, of our buyers, and so we're just going to take a time out, if you will, in terms of redesigning the battery possibly," Akerson told Reuters Insider. The company also said it would not deliver the Opel-branded version of the Volt in Europe until its engineers and safety regulators had worked out how to deal with the 400-pound battery pack after any accidents.

A bipartisan group of 33 members of the House of Representatives
sent a letter to EPA Administrator Lisa Jackson on November 17 urging the agency to delay the registration of E15 until testing has demonstrated that E15 will not damage engines and misfueling concerns are properly addressed. That said, one of the signers of the letter told me privately last week that he expects EPA will go ahead with its plans to register the fuel sometime this month.
Rep. Jim Sensenbrenner (R-Wis) introduced a bill (H.R. 3431) November 15 that would amend the Clean Air Act by prohibiting EPA from granting a waiver for any fuel or fuel additive that would reduce fuel efficiency or cause or contribute to engine damage. The bill currently has no co-sponsors. It has been referred to the House Committee on Energy and Commerce, which has not scheduled action on the bill.

Eastern States Associates, Inc.
(ESA), headquartered in Palmer, Massachusetts, has hired Tim Murphy to represent the company in the New England area and Tom Ranieri to serve the New York State and central Pennsylvania areas. Both come to ESA with a petroleum sales background. John Flick has also joined the ESA team as an inside sales and customer service representative based out of the company's office in White Plains, New York.
Fleming Reid Petroleum Equipment Ltd., headquartered in Spruce Grove, Alberta, has hired Gord Wedel to be in charge of sales and customer support for the company in Manitoba and Saskatchewan. Wedel has 27 years experience providing technical service and technical support with Kraus Global. Email: Phone: 204-479-8748.
FLEX-ING, Sherman, Texas, has named Eastern States Associates as its exclusive sales representative group for the northeastern portion of the United States including Connecticut, Delaware, Massachusetts, Maryland, Maine, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island and Vermont. FLEX-ING also moved Jason Brown from inside sales manager/retail fueling products to the company's materials requirements planning team. Chris Gaines has replaced Brown as the inside sales contact for all retail fueling products.
Petroleum Solutions, Inc., McAllen, Texas, has hired Cassie Stewart as director of marketing. She will office in the company's Houston branch and will cover all regional offices. Phone: 832-483-4801. Email:
Containment Solutions, Inc., Conroe, Texas, has named Eastern States Associates (ESA) to represent the fiberglass storage tank manufacturer in most of the New England and Mid-Atlantic region.
R-J Sales & Associates Inc., headquartered in Greensboro, Georgia, has been named FLEX-ING's Sales Representative of the Year for 2011.

Ohio signage and consulting firm
. Triumph Signs and Consulting, Inc., 480 Milford Parkway, Milford, Ohio 45150, has applied for service and construction division membership. Joe Smallwood is regional sales manager for the firm, which was established in 2005. The company manages sign and lighting implementations for the petroleum and other industries. Sponsored for PEI membership by Jayme Leonard, LeonardAsc, Cincinnati, OH.


  • BJM Pumps, LLC, Old Saybrook, CT (mfr)
  • Yenen Engineering Ltd., Istanbul, Turkey (mfr)
  • 1st Choice Compliance, Inc., Albany, GA (aff)
  • Albelal Technical Trading Est., Amman, Jordan (S&C)
  • T & P Service, LLC, Palestine, TX (S&C)
  • Joseph Barton, Triple A Fuels, Inc., Dallas, TX (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.