February 7, 2013 | Vol. 62, No. 03

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Dear PEI Member:

The National Association of Wholesaler-Distributors (NAW) is the trade association that represents the wholesale distribution industry. Its members include more than 100 national line-of-trade associations that represent virtually all products that move to market via wholesale distribution. PEI has been a member of NAW since the 1960s.

The chief staff officers that work for NAW member trade associations gather twice a year to discuss issues affecting their members and associations. We spent a substantial amount of time during our January meeting talking about the problems that keep distributors up at night. Four issues came up time and again. Distributors in other industries are increasingly concerned that: 

  • Attracting and engaging the new generation of workers into mature industries is a recurring challenge.
  • Effectively allocating―and sometimes reallocating―a distributor's resources (people and money) in a changing environment is a dilemma for distributors uncomfortable with/unwilling to change.
  • A combination of mature markets and a stagnant economy is driving consolidation as distributors conclude the best way to grow is to buy the competition.
  • Finding pathways for continued profitable growth in today's uncertain environment requires more risk taking and innovation than many family-owned distributors are willing to assume. 

These issues represent a profound and fundamental challenge to the risk-adverse, tactically focused owner/operator distributor that represents the bulk of distributors in the United States. While we can't be certain if PEI distributors would respond in a similar manner when asked what problems keep them up at night, the PEI staff and elected leadership will be listening to understand your challenges and seek ways the association might help address those problems.

The PEI Bulk Plant Installation Committee is soliciting comments to revise PEI's Recommended Practices for Installation of Bulk Storage Plants (PEI/RP800-08).

PEI will follow the same procedure in revising RP800-08 that has been used with updating other PEI recommended practices. If you have suggestions or recommendations for improving RP800-08, submit them online at www.pei.org/rp800. Instructions for completing the form are provided on the website.

PEI members, regulators, tank owners, insurance companies and trade associations are encouraged to submit comments. All comments must be received at PEI by Monday, March 18, 2013, to be considered by the committee. If you have any questions or need further information, contact Bob Young at byoung@pei.org or 918-236-3966.

Feedback from NAW Meeting

PEI/RP800 To Be Revised

Update: PEI's Service & Construction Manager's Conference

NCWM Interim Meeting

In This Issue



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If you have not registered for PEI's Service and Construction Manager's Conference to be held April 4-6 at the Sheraton St. Louis City Center Hotel in St. Louis, Missouri, now is the time to do so. Learn more, view a list of attendees or register now at www.pei.org/sc2013. Registration fees go up March 4.

Add Central Illinois and Gilbarco Veeder-Root to the list of companies sponsoring PEI's Service and Construction Manager's Conference. Other sponsoring companies include Esco Services, Husky Corporation, Morrison Bros. Co., OPW Fuel Management Systems, PMP Corporation, RDM Industrial Electronics, Samson Corporation and Universal Valve Company. If your company is interested in becoming a sponsor, contact Bob Young at byoung@pei.org.

The 2013 interim meeting of the National Conference on Weights and Measures (NCWM) was held January 27-30 in Charleston, South Carolina. Several topics related to fuels and equipment were discussed―most of which will remain in the discussion phase through 2013.

For more than a year, an NCWM committee has been working on requirements for displaying various types of post-purchase pricing discounts at the pump and on receipts. At the January meeting, representatives from Gilbarco and VeriFone presented details on the way dispensers and POS systems handle fuel discounts. The committee expects to provide proposed examples of retail receipt formats and other guidelines by April of this year.

Other proposals presented in Charleston included adding a new compressed natural gas (CNG)-to-diesel equivalence measurement―much as CNG measurements are now often expressed in "gasoline gallon equivalents"; a requirement for 10-micron filters on diesel dispensers; and additional identification on gasoline nozzles to prevent misfueling. All three proposals generated a good deal of discussion during the open hearings, but none were deemed ready for a vote at NCWM's annual meeting this summer.

One of the most discussed items involved the elimination of 85-octane gasoline. Automotive manufacturers are anxious to purge this offering from the retail station. They currently must design engines to tolerate such low octane gasoline even if the vehicle's specification calls for a higher grade. But refiners and retailers in mountain states remain reluctant to give up their most popular grade. This proposal will likely continue to generate both interest and discussion.

The NCWM annual meeting is scheduled for July in Louisville, Kentucky. PEI will be present to monitor votes and other actions of interest to our membership.

, Simsbury, Connecticut, has partnered with Red Leonard Associates, Inc., Cincinnati, Ohio, to represent the Red Jacket brand in the midwestern and northeastern United States, and Canada.
"Nationally, retail gasoline margins in 2012 averaged 14.5 cents per gallon on regular grade, just one-tenth of one penny beneath that of 2011, the all-time record. 2011's 14.6 cents was one-tenth of one penny above the prior record, 2008's 14.5 cents. Last year's margin was third largest in history, identical to 2008's. Although a tough year for so many gasoline retailers, 2012 goes down in history as a banner margin year."―Lundberg Letter, January 4, 2013.  

The U.S. Court of Appeals for the District of Columbia Circuit has suspended a rule requiring oil refineries to blend cellulosic biofuels into gasoline, agreeing with the oil industry that the policy is unfair because such fuels are not widely available. The federal court said the Environmental Protection Agency (EPA) needs to exercise reasonable discretion when it sets annual blending targets under the Renewable Fuel Standard (RFS) but had failed to do so with respect to last year's targets.

The EPA will likely issue the renewable fuel standard volume requirements for 2013 as a proposed rule rather than a direct final rule, EPA assistant administrator Gina McCarthy told BNA in an interview January 18. Issuing the standards, which were due November 30, 2012, as a direct final rule would have bypassed the lengthier proposed rule and public comment process. However, EPA would have been required to proceed with the proposed rule process had it received any adverse comments on the direct final rule, which were expected given the petroleum industry's resistance to the renewable fuel standard.

Sump containment manufacturer
. Icon Containment Solutions LLC, 870 Robinson Drive, North Salt Lake City, Utah 84054, has applied for manufacturer division membership. Jason Mitchell is president of the firm, which was established in 2011. The company manufactures sump containment, which is sold through distributors. Sponsored for PEI membership by Brad Hoffman, Tanknology, Austin, TX. www.icontainment.com
Oklahoma meter manufacturer. Turbines, Inc., P. O. Box 933, Altus, Oklahoma 73522, has applied for manufacturer division membership. Karen Downing is executive director of the firm, which was established in 1975. The company manufactures meters that are used in portable fueling stations and other applications. The meters are sold through distribution. Sponsored by PEI membership by Gregg Miller, NWPump, Portland, OR. www.turbinesincorporated.com 
Payment processing company. Vantiv, 8500 Governors Hill Drive, Cincinnati, Ohio 45249, has applied for affiliate division membership. Bob Balogh is vice president, mid-market sales for the firm, which was established in 1971. The company is a payment processing company providing convenience store specific POS solutions. Sponsored for PEI membership by Darren Thomas, FranHill, Tulare, CA. www.vantiv.com
Cayman Islands tank inspection firm. Caribbean Services & Development Inc. Ltd., P. O. Box 11510, George Town, Grand Cayman, Cayman Islands KY1-1009, has applied for service and construction division membership. Desmond Ebanks is owner of the firm, which was established in 2011. The company offers API certified tank inspection and NDE testing, and pipeline transfers and inspection. Sponsored for PEI membership by Alberto A. Solares, SolTech, Miami, FL.
Texas environmental and industrial remediation firm. Environmental Logistics Company, P. O. Box 3238, McKinney, Texas 75070, has applied for service and construction division membership in PEI. Mark Gilbreath is general manager of the firm, which was established in 2001. The company provides environmental and industrial remediation and compliance services. Sponsored for PEI membership by Susan Bush, JayBallEqp, Richardson, TX. www.envirologistics.com


  • Doug Durrington, City of Springfield, Springfield, MO (O&E)
  • Michael Zubel, Landmark Industries, Houston, TX (O&E)


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© 2013
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.