September 10, 2012 | Vol. 62, No. 20

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In This Issue
Dear PEI Member:

PEI members in the United States have been telling us since 2007 that unexpected corrosion of metal components has been occurring in systems storing and dispensing ultra low sulfur diesel (ULSD). Reports and pictures received from members show corrosion coating the majority of metallic equipment in both the wetted and unwetted portions of underground storage tanks (USTs) storing ULSD.

To investigate the problem in an objective manner, eight stakeholders in the industry, including PEI, funded a research project through the Clean Diesel Fuel Alliance (CDFA). That project, undertaken by Battelle Memorial Institute, now has been completed, and a 146-page PDF report discussing the findings has been posted on the PEI website.

The report concludes that corrosion in systems storing and dispensing ULSD is likely due to the dispersal of acetic acid throughout tank systems. The acetic acid is likely produced by Acetobacter bacteria feeding on low levels of ethanol contamination. The cross-contamination could be due to switch loading or manifolded vent systems, although the report urges further study to establish the "causal link." The acetic acid is deposited throughout the system when it is dispersed into the humid vapor space (ranging from 72 percent to 95 percent) by the higher vapor pressure and by disturbances during fuel deliveries. This results in a cycle of wetting and drying of the equipment concentrating the acetic acid on the metallic equipment and corrodes "it quite severely and rapidly."  

Battelle recommends further research on this issue. For example, Battelle suggests that a larger and more diverse sample set, with the sites sampled multiple times over a period of time. In particular, Battelle proposes that steel USTs and tanks without corrosion problems be investigated. Furthermore, Battelle advises that the source and magnitude of the ethanol contamination should be determined.

The author of the report, Anne Marie Gregg, will discuss Battelle's findings in greater detail during an educational session October 8 at 10:30 a.m. at the 2012 PEI Convention in Las Vegas. She will then be joined by Prentiss Searles, general manager of the CDFA, at noon on the same day at PEI 1-on-1 to discuss where the industry goes from here.

CDFA Releases Battelle ULSD Report

Members Sought for Stakeholders Committee on Leak Detection Protocols

U.S. 2025 Fuel Economy Target

EPA Opens Comment Period on RFS Waiver Requests

PEI and Industry News »


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Battelle is in the process of setting up a Stakeholder Committee to provide input on forthcoming revisions to the EPA Leak Detection (LD) Protocols. Originally developed in the 1990s, the present-day protocols address neither current fuel formations nor newer leak detection technologies. Battelle envisions that the Stakeholder Committee will serve as a sounding board for the protocol revision process to help ensure that the final products are accurate, complete, useful and useable.

Battelle is working with the U.S. EPA's Office of Underground Storage Tanks to develop an initial list of interested parties to participate on the Stakeholder Committee and has asked PEI to help it identify possible participants. Stakeholder Committee participants should have knowledge in one of the following areas:

  • Leak detection equipment manufacture
  • Laboratory-based equipment testing procedures
  • Emerging fuels

The protocol revision process will begin with an in-person workshop October 24 in Columbus, Ohio. The workshop is being coordinated with the National Work Group on Leak Detection Evaluation (NWGLDE) meeting scheduled for Monday, October 23. More information is posted on the NWGLDE website under AGENDA Meeting Fall 2012 and VENDOR INVITATION MEMO along the right side of the page.

Battelle hopes to finalize the Stakeholder Committee roster by September 13. If you are interested in either becoming a member of the Stakeholder Committee or in receiving periodic progress updates but not available to actively participate on the committee, contact Anne Marie Gregg gregga@battelle.org of Battelle by September 13.

The federal government has finalized a long-term average fuel economy target for cars and light trucks of 54.5 miles per gallon (mpg) by 2025, almost double what they get today. The goal is in line with a deal reached last summer between the Obama administration, automakers and environmental groups. If it survives the tinkering of future administrations, the new standard is expected to contribute to a flattening of U.S. oil consumption or even reduce it in the long run. A fuel economy target of 35.5 mpg is already in effect.

A press release from The White House calls attention to specific incentives to encourage early adoption and introduction into the marketplace of advanced technologies to improve vehicle performance, including:

  • Incentives for electric vehicles, plug-in hybrid electric vehicles and fuel cell vehicles;
  • Incentives for hybrid technologies for large pickup trucks and for other technologies that achieve high fuel economy levels on large pickups;
  • Incentives for natural gas vehicles; and
  • Credits for technologies with potential to achieve real-world greenhouse gas reductions and fuel economy improvements that are not captured by the standard test procedures.

Margaret Montgomery
, who served on PEI's administrative staff from 1974 until her retirement in 2004, died September 3. She was 74. We knew Margaret from her work at a printing company that we used in the 1970s. So impressed were we with her work that Howard Upton hired her to be in charge of printing and publications at PEI. Being part of a small office, Margaret also was called on to help with the convention, the PEI Directory and other taskslike typing and retyping the TulsaLetter―which she did day in and day out, year after year without the aid of a computer. Our small staff was blessed to have had the pleasure to work alongside such a wonderful colleague and you, our members, could not have asked for a more dedicated employee. 
Barbara J. Mendenhall
, one of the first employees of Samson Corporation and wife of Samson co-founder Roy Mendenhall, died August 21. She was 72. Barbara seemed to do everything in the early years of Samson, from pulling orders and packing boxes to keeping the books and writing the paychecks. Roy and Barbara worked at Samson from 1993 through October 2006. Roy can be reached at 539 Old Field Road, Murrells Inlet, South Carolina 29576. 

OPW Fueling Components
, a Dover Company, has appointed Lewis Bell as director of training. Lewis joins OPW from Gilbarco Veeder-Root.
DeanHouston Inc., Cincinnati, Ohio, has been included in the 2012 Inc. 500l5000 list of the nation's fastest growing private companies, ranking No. 3120.
Workers in the private sector whose job benefits include paid sick leave are less likely to be injured on the job than employees without the benefit, according to a report by researchers at the National Institute for Occupational Safety and Health. Employees with paid sick leave were injured on the job 28 percent less often than other workers, the researchers found after analyzing survey data from 2005 through 2008.

Presidential candidate Mitt Romney has released a plan that promises to dramatically increase domestic energy production and achieve North American energy independence by 2020. Romney's energy plan calls for the government to facilitate private-sector-led development of new technologies and "support increased market penetration and competition among energy sources by maintaining the Reformulated Fuel Standard (RFS) and eliminating regulatory barriers to a diversification of the electrical grid, fuel system or vehicle fleet." Romney's plan also would strengthen and streamline regulations and permitting processes to "encourage the use of a diverse range of fuels including natural gas in transportation."

The U.S. EPA is requesting public comments on the RFS waiver requests that were filed by Arkansas Governor Mike Beebe and North Carolina Governor Beverly Perdue in mid-August. The request was published in the Federal Register on August 30. Comments will be accepted for 30 days, unless an extension is sought and granted. Publication in the Federal Register begins the clock on the 90-day period in which EPA must rule on the petition request. That makes a decision likely in mid-November, after the November 6 election.

The Missouri Petroleum Storage Tank Insurance Fund (PSTIF) has recently drafted several changes to its participation laws. They include new Department of Natural Resources leak detection requirements for high-throughput underground storage tanks (USTs), modifications for rules insuring aboveground storage tanks, and more flexibility for owners who buy or build a new facility or who put a previously-empty tank back into service. The proposed rule changes will be published in the September 17 issue of the Missouri Register. Public comments will be accepted through October 17, 2012.

We can still use a little help in greeting and assisting PEI convention goers in finding their way to PEI events and sessions at the Las Vegas Convention Center. Find Red volunteers contribute between 1 and 2 hours during the middle days (October 8 and 9) of the convention. It's a great way to meet people and help PEI at the same time. Contact Carletta Denison at cdenison@pei.org for further information. Our thanks to the individuals and organizations that have already signed up to help:  

  • Jim Beam, Monroe & Monroe Insurance
  • Scott Boorse, Wawa Inc.
  • Julie Carpenter, Lakeland Graphics, Inc.
  • Brian Durge, Tanknology
  • Chris Farrell, Double Check Company, Inc.
  • Shannon Geurink, Northwest Petroleum Service Inc.
  • Duane Grippe, O'Day Equipment, LLC
  • Brad Hoffman, Tanknology Inc.
  • Jim Howard, Hess Corporation
  • David Jacobs, Flint Loc LLC
  • Brenda Johnstone, Convenience & Carwash Canada
  • David Lawson, 1st Choice Compliance Inc.
  • Mark Lipa, Neumayer Equipment Co.
  • Ryan Lipert, Balch Petroleum Contractors & Builders Inc.
  • Susan Maples, RBM Company
  • Marcel Moreau, Marcel Moreau Associates
  • Jeanne Murphy Murck, Core Engineered Solutions, Inc.
  • David Piercey, JD2 Environmental, Inc.
  • Ryan Shadburn, Western Pump, Inc.
  • Art Sodermark, Platinum Engineering & Safety, Inc.
  • Ben Stallings, Fatboy Electric, Inc.
  • Steve Tretter, Priority Sales Associates, Inc.
  • Jeffrey Wilson, Stantec

Industrial equipment manufacturer
. FG Industrial, 109 Baishui West Road Oubei, Yongjia, Wenzhou, China 325102, has applied for manufacturer division membership. Friendship Ge is general manager of the firm, which was established in 2007. The company manufactures tank truck products, lubrication equipment, composite hose, quick couplings, pumps, valves and flanges. The products are sold through distributors. Sponsored for PEI membership by Rafael Toledo, Equipetrol, Medellin, Antioquia, Colombia. www.fgindustrial.com 
Florida procurement/sourcing service company
. Latin American Trading Services, 2227 NW 79th Avenue, T1034, Miami, Florida 33122, has applied for affiliate division membership. Jose Molina is general manager of the firm, which was established in 2006. The company provides procurement/sourcing services to companies in Latin America. Sponsored for PEI membership by Oscar Ramirez, BolivarFL, Miramar, FL.
Illinois consulting firm. Tetra Tech, Inc., 1634 Eastport Plaza Drive, Collinsville, Illinois 62234, has applied for affiliate division membership. Caleb Kline is a civil and structural engineer with the firm, which was established in 1966. The company provides consulting, design and specialized construction services for petroleum receipt, storage and distribution systems and facilities. Sponsored for PEI membership by Susan Burkhardt, Neumayer, St. Louis, MO. www.tetratech.com
Point-of-sale refurbisher. ReSource Point of Sale, 1525 West Homer Street, Suite 302, Chicago, Illinois 60642, has applied for affiliate division membership. Christy Muscarello is the primary contact for the company, which was established in 2003. The company sells and services new and refurbished point-of-sale and barcode scanning hardware. Sponsored for PEI membership by Andrew J. Adams, AdamsTank, Clearwater, FL. www.resourcepos.com
Florida petroleum contractor. Great Dane Petroleum Contractors Inc., 1330 South Andrews Avenue, Pompano Beach, Florida 33069, has applied for service and construction division membership. Mike Balan is vice president sales and service for the firm, which was established in 1998. The company is a full-service petroleum contractor with maintenance and service departments. Sponsored for PEI membership by Glen Corkill, SourceIL, Addison, IL. www.greatdanepetroleum.com
Malaysia service company. Flofuel Sdn Bhd, 2G, Jalan LJ5, Kawasan Industrial, Lembah Jaya Selatan, Kuala Lumpur, Selangor, Malaysia 68000, has applied for service and construction division membership. Lakhbir Singh is director for the firm, which was established in 2009. The company maintains service stations. Sponsored for PEI membership by Thomas C. L. Tan, Polyflo, Selangor, Malaysia. www.flofuel.com


  • Allied-Ott Petroleum Equipment, Noblesville, IN (dis)
  • Sur-Fit Corporation, Crystal Lake, IL (mfr)
  • Old World Industries, Northbrook, IL (aff)
  • ITW Sexton, Martinsburg, WV (aff)
  • Petroelectric LLC, Searcy, AR (S&C)
  • Lui Technical Services, Inc., Sunrise, FL (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.