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May 3, 2012 | Vol. 62, No. 10

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In This Issue
Dear PEI Member:

The PEI Board of Directors met April 20 in Santa Fe, New Mexico, and made a number of policy decisions related to membership services and association operations. Here is a summary.

Two New Recommended Practices. The directors approved two new recommended practices for immediate development:

  • Recommended Practices for the Installation of Compressed Natural Gas Delivery and Storage Systems for Vehicle Refueling; and
  • Recommended Practices for the Installation of Fueling Systems for Emergency Generators and Fuel Oil Fired Boiler Systems.

We are currently forming a steering committee whose sole purpose is to develop a scope statement for the CNG document. If you are interested in being a part of this "scope" committee contact Bob Young at PEI The process should take no more than three weeks and all work will be handled by conference call. Formation of the two committees that will be responsible for writing the new recommended practices will begin this summer.

10-Groups for Service Managers. The directors voted to extend PEI's highly successful 10-Group program to service managers. These groups will be separate and distinct from the 10-Groups currently available to principals of Distributor, Service and Construction, and Affiliate Division member companies. Look for these groups to form this summer.

Committee Recommendations Approved. Reports from PEI's Education and Convention, Strategic Long Range Planning, Safety, Investment and Young Executives Committees were reviewed. Some board action of general interest to PEI members include:

  • A budget of $2,753,687 for the fiscal year that began April 1. No dues increase for the 20th consecutive year.
  • Two conferences in 2012/13: one for Service and Construction Managers and the other for Vehicle Lubrication and Maintenance Equipment.
  • The formation of a special survey for distributors on technology.
  • The extension of PEI's Safety Audit Program to members of the service and construction division of PEI, in addition to PEI distributor members in the United States.
  • The establishment of a new Strategic Long Range Plan for the association.
  • Approval of the 2012 PEI Convention program in Las Vegas, October 7-10.

PEI Board Meets in Santa Fe

E15 Moves Another Step Closer to the Marketplace

Lundberg: Fewer Oil Jobbers

In This Issue



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PEI President Joey Cheek, Tampa, Florida, presided at the midyear meeting. Other officers and directors attending the meeting included:
Terry Cooper, Marion, IA (Vice President)
Phil Farrell, Kansas City, MO (Treasurer)
Dennis Rethmeier, San Diego, CA (Immediate Past President)
Bob Renkes, Tulsa, OK (Executive Vice President)
James Ether, Saratoga Springs, NY (District 1)
Scott Hafer, Reading, PA (District 2)
Joey Batchelor, Jacksonville, FL (District 3)
Tim Woofter, Hartford, OH (District 4)
Mike Hoffman, Mobile, AL (District 5)
Susan Gozdowski, Forest View, IL (District 6)
Bret Swan, Minneapolis, MN (District 7)
Mark Cowie, Houston, TX (District 8)
John Moore, Fresno, CA (District 9)
Eva Chambers, Simsbury, CT (District 10)
Bret Carlyle, Columbus, OH (District 11)
Brad Baker, Pacific, MO (District 12)
Joey Arn, Jacksonville, FL (District 13)
Chris Lawson, Irving, TX (Service and Construction Division)
Rick Long, Tulsa, OK (General Manager)

The Reformulated Gasoline Survey Association (RFGSA) is poised to begin taking samples as part of an annual survey required by the Environmental Protection Agency (EPA) as a precondition to E15 being introduced into commerce for use in 2001 and newer vehicles. Once the survey is under way, the ethanol industry will have satisfied the final federal requirement to E15 availability. State-specific regulations, pending litigation and other technical issues "make predicting the exact timeframe for the growth of E15 sales volume unwise," according to the Renewable Fuels Association.

The RFGSA, funded by 99 ethanol producers, will collect and test more than 7,500 gasoline samples to check for oxygenate content and Reid Vapor Pressure (RVP), among other things. If E15 is detected, the RFGSA will verify that the retailer has properly displayed E15 labels as required by EPA. The launch of the E15 Fuel Survey is expected very soon.

Press reports about the survey have increased the industry's interest in PEI's UST Component Compatibility Library. The Library contains statements from 22 manufacturers of underground storage tank components regarding equipment compatibility with gasoline containing more than 10 percent ethanol or diesel containing more than 20 percent biodiesel. The compliance letters are used by tank owners to demonstrate compliance with the compatibility requirement of 40 CFR 280.32.

Manufacturers who would like to be included should email their compatibility statements to Manufacturers submitting letters to date include: Acterra, Ameron International, Bravo Systems, Brugg Pipesystems, Containment Solutions, Hamilton Tanks, Highland Tank, KPS, Metal Products Company, Mid-South Steel, Modern Welding, Morrison Bros., National Environmental Fiberglass, NOV Fiber Glass Systems, Nupi Americas, Omegaflex, Owens Corning, Service Welding, Stanwade, Vaporless Manufacturing, Western Fiberglass and Xerxes.

PEI Convention Group Registration Discounts Available.
PEI offers group discounts to companies who register five or more people for the PEI Convention, October 7-10, 2012, in Las Vegas, Nevada. Spouses qualify as group registrants. Groups must register by July 31 to receive the discounts. Click here for more information, or call 918-236-3967.

The second quarter PEI Journal has been printed and shipped, and is also available online. This edition features many useful articles including:

The April 26, 2012, Lundberg Letter examined the decline in the number of petroleum marketersdefined by the Lundberg editors as major branded jobbers, independent jobbers and large chainsfrom 1970 to 2012. It was the best summary I have read on the subject since Lundberg wrote about the subject in 2009. The article contained the major reasons the number of petroleum marketing companies have declined and, in my view, will continue to fall in the years ahead. They include:

  • Larger jobbers gain economies of scale and efficiencies.
  • Well-run jobberships often gobble up smaller inefficient ones.
  • Long-time owners desire to exit the business, and sell.
  • Encroaching high volume chains.
  • Inability to secure loans.
  • Insufficient cash to handle temporary margin squeezes.
  • Greater need for financing due to higher costs to hold fuel inventories.
  • Refiner minimum gallonage requirements.
  • Increased usage of dealers by jobbers (making it easier to manage a larger chain).
  • Continued depressed U.S. economy, employment and gasoline demand.
  • Rapid expansion ambushes jobbers with surprises like dealer turnover and related cash flow problems.

Georgia distributor
. Ford's Equipment, P. O. Box 2115, Macon, Georgia 31206, has applied for distributor division membership. Walter Pearman is the primary contact for the company, which was established in 1965. The company represents Catlow, Franklin, IRPCOinc, OPW-FMS, Smithpipe, TMS and Xerxes. The firm sells and services underground and aboveground petroleum tanks and lube equipment. Sponsored for PEI membership by Andy N. Thompson, Jr., CentralInd, Savannah, GA.
Fuel pump security system manufacturer
. Loxahatchee Electronics Corp., 9150 Belvedere Road, Suite 113, Royal Palm Beach, Florida 33411, has applied for manufacturer division membership. John Garrity is president/CEO of the firm, which was established in 1991. Loxahatchee's equipment monitors the access panels of fuel dispensers and protects against credit card skimmer installation. The products are sold through distributors. Sponsored for PEI membership by Ronald Walker, AlliedElec, Bristol, PA.
Natural gas training and consulting firm
. Natural Gas Vehicle Institute, 3120 South Durango Drive, Suite 304, Las Vegas, Nevada 89147, has applied for affiliate division membership. Annalloyd Thomason is vice president and general manager for the firm, which was established in 1989. The company provides training and consulting services for fleets and industry representatives interested in natural gas as a transportation fuel. Sponsored for PEI membership by Jerry Schmitz, PetMarCo, Oklahoma City, OK.
Software developer
. Ontrak Software, LLC, 770 Jim Wilson Road, Indian Land, South Carolina 29707, has applied for affiliate division membership. Dr. Bob Harris is vice president of marketing for the firm, which was established in 2010. The company provides software for use by distributors, wholesalers and value-added resellers. Sponsored for PEI membership by Jacob Jackson, Pump&Tank, Greensboro, NC. 
Building control products manufacturer
. Global Control Solutions, LLP, 6307-C Angus Drive, Raleigh, North Carolina 27617, has applied for affiliate division membership. Jeff Luther is vice president of building controls for the company, which was established in 2011. The company manufactures building control products used in environmental refrigeration and lighting control for convenience stores and other commercial applications. Sponsored for PEI membership by Earl Parks, TMS, Raleigh, NC.  
Alabama tank cleaning firm
. Petro Tank Solutions, LLC, 5440 Woodford Drive, Birmingham, Alabama 35242, has applied for service and construction division membership. Rob Steber is the primary contact for the company, which was established in 2011. The company specializes in underground and aboveground fuel tank cleaning. Sponsored for PEI membership by Lauritz Spann, Panhandle, Molino, FL.  
Bahamas maintenance and repair firm
. AFD Management Services, Pear Dale Road, Nassau, Bahamas 5991-SS, has applied for service and construction division membership. Freeman Deveaux is CEO of the firm, which was established in 2006. The company maintains and repairs petroleum equipment at service stations, marinas and consumer sites. Sponsored for PEI membership by Carlos Solares, Solares&Co, Bayamon, Puerto Rico.


  • Greenlight Solutions, LLC, West Alton, MO (dis)
  • ANGI Energy Systems, LLC, Milton, WI (aff)
  • Deposit Control Systems, Inc., Cohoes, NY (aff)
  • United Technologies, Fort Myers, FL (aff)
  • Outsite Networks, Inc., Norfolk, VA (aff)
  • S. M. Miller Construction Co. Inc., Grove City, OH (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.