Dear PEI Member:
How much does it cost to convert a station dispensing
E10 to one that dispenses E15? That and nearly a dozen other questions regarding the cost
of E15 equipment were posed to PEI last month by the U.S. Department of
Agriculture (USDA). We researched that topic over the past three weeks and
our answers to USDA last
The task was not easy. To begin with, the information sought by
USDA is not something most PEI members have at their fingertips considering
that only about 30 stations in the United States―primarily
in the corn belt―currently market E15. And accurate national
estimates are even tougher to come by since each station is different in
terms of physical location, size, existing equipment, and state and local
PEI obtained the numbers shown in our September 6 letter to
USDA by asking a representative sample of PEI distributors/contractors to
provide estimates for the different scenarios posed by USDA. Those
distributor/contractors contributing to the effort were asked not to specify
certain types and brands of tanks and piping, automatic tank gauges,
dispensers, and hanging hardware. They were directed to figure in their own
profit margins and to assume the work was to be done within 10 miles of
their offices. The distributors/contractors were also requested to provide
figures for the specific scenarios written by USDA and not to provide other
options or upgrades that might make more sense to them. Finally, the PEI
members that provided us pricing information were asked not to factor in
costs that would not normally know, like lost profits per day for
the tank owner while the work was being done.
The estimators at the
participating companies worked long and hard―some
over the Labor Day holiday―without compensation and attribution. We
promised that they would not be identified and will honor that commitment by
not naming them. But to each of you who helped USDA with this project, we
offer our thanks.
PETROLEUM MARKETER NEWS
Susser Holdings Corporation has completed the acquisition of
Gainesville Fuels Inc., a wholesale fuel and lubricants distribution
business selling approximately 60 million gallons of diesel fuel annually to
oil and gas producers in northern Texas and southern Oklahoma.
Kwik Trip Inc., La Crosse, Wisconsin, celebrated the opening of its
15th compressed natural gas (CNG) station on August 28 in Janesville,
Wisconsin. The company plans to add an additional 10 stations before the end
of the year.
PAPCO Inc., Virginia Beach, Virginia, has acquired 24 gasoline
stations and their supply contracts from SMO Inc.
South Florida Commercial Properties LLC, an affiliate of Marvin Hewitt
Enterprises, has acquired 20 Chevron stations in south Florida.
Shell Oil Co. is being sued by the State of New Hampshire for $2.4
million for receiving cleanup funds from the state's Oil Discharge &
Disposal Cleanup Fund for which Shell allegedly should have been financially
responsible under New Hampshire state law.
Indonesia plans to increase the mandatory blending requirements for
domestically produced biodiesel this month. The government will require the
blending of 10 percent biodiesel into diesel fuel, up from the existing
mandate of 2 percent for non-subsidized consumption and 7.5 percent for
New York City Mayor Michael Bloomberg signed a bill into law last
week that requires the city fleet to use a B5 biodiesel blend beginning July
1, 2014. Beginning July 1, 2016, the city fleet must use a B20 blend from
April to November. The city will also launch a pilot program prior to
December 1, 2016, to study year-round usage of B20 with no fewer than 5
percent of the city fleet.
PEI Responds to USDA's Request for E15 Equipment Cost
Petroleum Marketing Briefs
Jean Upton Passes Away
PEI and Industry News »
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PEI 2014 CONVENTION DATES: OCTOBER 7-10
The 2014 PEI Convention at the NACS Show will be held October 7-10 in
Las Vegas. The original dates were October 5-8, but member feedback
indicating a preference for a mid-week show caused NACS and PEI to adjust
the future show dates where we could.
Jean Upton, the wife of PEI's former executive vice president and
general counsel Howard B. Upton, Jr., died in Bethlehem, Pennsylvania,
following a stroke. She was 89. Jean and Howard met in Washington, D.C.,
while Howard wrote articles and speeches for Secretary of the Navy James
Forrestal. They were married 64 years. Jean moved from Tulsa to be close to
family in Bethleham after Howard's death in 2009. Survivors include three
children, Pam Brown and husband Greg, Irving, Texas; Barbara Upton and
husband Jack Wright, Easton, Pennsylvania; and Brian Upton and wife
Elizabeth, Los Angeles, California; four grandchildren, Upton Siddons,
Jeffrey Siddons, Sam Upton and Rose Upton; and a great-grandson, Upton
Siddons, Jr. Jean was preceded in death by a daughter and former colleague
of ours at PEI, Marti Siddons.
Valve manufacturer. Zhejiang Jialong Mechanical Equipment Co., Ltd.,
Tangtou Ind. Zone, Oubei Town, Yongjia County, Wenzhou City, Zhejiang, China
325102, has applied for affiliate division membership in PEI. Jason Ye is
international account manager for the firm, which was established in 2001.
The company manufactures and markets adaptor valves, vent valves, quick-connect couplers and bottom-loading systems. Sponsored for PEI membership by
Will Wang, ZLanfeng, Wenzhou, Zhejiang, China.
ADMITTED TO PEI
- Importaciones y Equipos Villavicencio, Villavicencio, Meta, Colombia
- Cesar Menchaca Arizpe, Ipiranga, Durango, Mexico (O&E)
- Steve Callahan, The Kroger Co., Denver, CO (O&E)
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Petroleum Equipment Institute
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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.