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February 28, 2012 | Vol. 62, No. 05

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In This Issue
Dear PEI Member:

The Environmental Protection Agency (EPA) said February 17 that it has approved health effects and emissions testing on E15, clearing another hurdle on the way for E15 to be introduced into commerce for use in model year 2001 and newer light-duty motor vehicles.

EPA issued its approval after reviewing emissions testing performed by Southwest Research Institute and an analysis submitted by Growth Energy and the Renewable Fuels Association (RFA) that showed previously approved health effects testing results for E10 are comparable to E15.

The Clean Air Act requires testing to be completed and approved by EPA before any new fuel can be registered and sold in the marketplace. Growth Energy and RFA are making their E15 health effects testing results available free of charge to any fuel or fuel additive manufacturer that wants to register E15 for sale, which will lessen the burden for those seeking to complete the individual registration process. However, EPA stressed in its February 17 documentation that the Growth Energy/RFA documents do not constitute a completed application. Individual applicants also must submit specific information about the company in the registration application and may not begin selling E15 until EPA approves the application, a process that can take up to a month. An RFA spokesperson said last week that there are "ten registrations sitting on EPA's desk waiting for their processing."

Registration, although a prerequisite to introducing E15 into the marketplace, by itself does not mean E15 can immediately be sold. Fuel and fuel additive manufacturers wishing to register E15 must obtain EPA approval ofand implementa misfueling mitigation plan and a survey plan before selling E15. In addition, other federal, state and local requirements as well as practical concerns, such as dispenser and tank compatibility, must be addressed. Since a number of states restrict the sale of some gasoline-ethanol blends, state law changes may be needed before E15 may be sold in those states.

Dan Gilligan, president of the Petroleum Marketers Association of America and a speaker at PEI's annual convention last October in Chicago, suggested at that time that Iowa could be the first state in the nation to offer a significant amount of E15 for use in 2001 and newer vehicles. I attended an ethanol workshop last month in Des Moines, I think he's spot-on. In talking to the petroleum marketers in Iowa, it's clear that the ethanol blend is already available through numerous blender pumps used to fuel flex-fuel vehicles, giving those retailers a head start in offering it to customers when the time comes. Iowa also offers incentives to retailers who sell mid-level blends of ethanol and it has a statewide renewable fuel standard, which further spurs retailers to make alternative fuels available. I am not certain that automobile liability issues have been resolved to everyone's satisfaction and I understand there is reluctance from many marketers to sell E15 without an official ASTM octane rating, but there seem to be enough marketers in Iowa to offer a substantial amount of E15 to the public relatively quickly once those issues are resolved.

EPA's E15 Emissions and Health Effects Approval

Companies Sold/Acquired



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Most petroleum marketers in other states will take their time before offering E15. In talking to station owners at the Western Petroleum Marketers Association (WPMA) show last week in Las Vegas, misfueling liability, equipment upgrades and customer acceptance have them taking a wait-and-see approach to marketing E15. In an unscientific and informal survey of 15 petroleum marketers at the WPMA show, eleven told me they had no immediate plans to sell E15 as soon as it became legal to do so; two said they would try it here and there; one said his company would offer E15 "over my dead body," and one said he was going to market it aggressively to differentiate his company from the competition. All but onethe dead body guyagreed that they inevitably will have to offer E15 unless there is a change in the federal law (RFS2). Most thought/hoped that the mass change to E15 would occur five to ten years down the road.

Tom Fassas of Petro Serv, Inc.
, Richmond, Kentucky, has purchased the assets of Towery Equipment Company, Louisville, Kentucky. Doug McFarland, Towery's previous owner, will serve as a consultant to both companies.
Western Petroleum LLC, Vernal, Utah, has agreed to be acquired by Pilot Flying J, based in Knoxville, Tennessee. Western Petroleum distributes Chevron, Sinclair and Conoco products to the oil and gas drilling and hydraulic fracturing industries. Western serves customers in the Rocky Mountains, the Northern Plains, Texas, Oklahoma, Louisiana and Pennsylvania. 

Source North America Corporation
, based in Addison, Illinois, will open its 13th facility in King of Prussia, Pennsylvania, in mid-March.
Morrison Bros. Co., Dubuque, Iowa, has added Florida to Kelly Briant's territory. Briant is Morrison's southeastern regional territory manager. Bruce Kwasney, Morrison's west-central regional territory manager, has been given the additional responsibility for sales in central and western Arkansas.
Susser Holding Corp., Corpus Christi, Texas, plans to build between 25 and 30 new stores in 2012, compared to 19 in 2011, CEO Sam Susser said on an earnings conference call February 22.
The U.S. military is testing 16 General Motors Equinoxes, which run on hydrogen fuel cells that generate electricity by converting hydrogen gas into water. The automobiles are in Hawaii and fuel at several bases on Oahu that have been equipped to dispense hydrogen.
A bill (H.B. 5895) was introduced in the Illinois House of Representatives February 16 that would allow the Department of Commerce and Economic Opportunity to provide information encouraging gasoline stations to offer E15 as an option to their customers. The bill would also permit the Department to provide information on any financial assistance that may be available to gasoline station owners that would subsidize the cost of providing E15-blended fuel to consumers.
The Environmental Protection Agency has proposed a $62 million fine against Absolute Fuels of Lubbock, Texas, for allegedly producing and selling renewable fuel certificates for renewable identification numbers (RINs) to oil companies without actually producing the renewable fuel the credits were meant to represent.

Wisconsin distributor
. E.H. Wolf & Sons Inc., P. O. Box 348, Slinger, Wisconsin 53086, has applied for distributor division membership. Robert Troeller is the equipment manager for the firm, which was established in 1941. The company sells and services aboveground fuel, lube and DEF systems and represents CentralIL, Graco, HuskyCorp, Krueger, Liquidynam and Usemco. Sponsored for PEI membership by Steven Ettl, BadgerOEqp, Milwaukee, WI.
Fuel transfer system manufacturer. Phillips Fuel Systems Inc., 109 Holland Avenue, Bridgeport, Connecticut 06605, has applied for manufacturer division membership. Patrick Crossin is president of the firm, which was established in 2010. The company manufactures fuel transfer systems and controls, which are sold through distributors. Sponsored for PEI membership by Bill McIndoo, McIndooAsc, Farmingdale, NY.
Tank level gauging system manufacturer. DainLevel Co., Ltd., #320, 3F, Sesingsang Bldg. 698-1, Deungchon-dong, Kangseo-gu, Seoul, South Korea 157-033, has applied for manufacturer division membership. Yean Sang Yoo is the general manager of the firm, which was established in 1995. The company supplies tank level gauging systems that measure and manage the liquid in storage tanks. The systems are sold through distributors. Sponsored for PEI membership by Nehar AlSaidat, Albelal, Amman, Jordan.
Texas petroleum equipment broker. Express Equipment, Inc., 10006 Stidham Road, Conroe, Texas 77302, has applied for affiliate division membership. Angela Baldwin is in sales for the company, which was established in 1989. The company is a broker for aboveground petroleum equipment, parts and accessories. Sponsored for PEI membership by Stephen Scott, BJ2, Longview, TX.
California environmental compliance contractor. SoCal Compliance Services, 11030 Arrow Route, Suite 212, Rancho Cucamonga, California 91730, has applied for service and construction division membership. Dan Harris is a partner in the firm, which was established in 2004. SoCal Compliance Services provides environmental compliance contracting and consulting services for UST and AST systems. Sponsored for PEI membership by B. A. Scowley, ShldsHarpr, Martinez, CA.
Florida fuel/tank cleaning company. Absolute Tank Cleaning, 479 Bayview Drive NE, St. Petersburg, Florida 33704, has applied for service and construction division membership. Luther Carrier is director of operations for the firm, which was established in 2008. The company processes fuel through a filtration unit that removes contaminates from fuel storage tanks. Sponsored for PEI membership by Lucas Ford, Jr., LucasFord, St Petersburg, FL.
Florida petroleum construction firm. PCE Petroleum Contractors Enterprise, 4946 Patagonia Place, Land O Lakes, Florida 34638, has applied for service and construction division membership. Raul (Nick) Necoechea is president of the firm, which was established in 2010. The company remodels and upgrades gasoline service stations. Sponsored for PEI membership by Suzanne Johnson, JohnsonFL, Riverview, FL.
Ohio construction and maintenance firm. Cox's Service Station Maintenance, 151 East Sixth Street, Franklin, Ohio 45005, has applied for service and construction division membership. Raymond L. Agee III is president of the firm, which was established in 1979. The company provides turnkey construction and maintenance of petroleum fuel systems. Sponsored for PEI membership by Chuck Storey, Storey&Son, Cincinnati, OH.


  • Elaflex Latin America, Buenos Aires, Argentina (mfr)
  • SignResource, Maywood, CA (aff)
  • American LED Lighting Solutions, Jacksonville, FL (aff)
  • TranSystems Corporation, Kansas City, MO (aff)


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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.