January 8, 2014 | Vol. 65, No. 1

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In This Issue

Dear PEI Member:

Phil Farrell, president of Double Check Company, Inc., Kansas City, Missouri, became the 64th president of the Petroleum Equipment Institute on January 1. He succeeds Terry Cooper, president of Acterra Group, Inc., headquartered in Marion, Iowa, in that post. Kevin McKinney, president of McKinney Petroleum Equipment, Mobile, Alabama, is PEI’s vice president for 2014.

One of Farrell’s first duties was to appoint committees for 2014. In all, 219 people were named to serve on 22 PEI committees, with 12 individuals appointed to a committee for the first time. The breakdown of committee members by membership division is more inclusive than that in most other distributor-based trade associations: 44% distributor, 16% manufacturer, 12% service and construction, 12% affiliate, 9% operations and engineering, and 7% government/trade association.

In past years we published the complete list of all committee members in this newsletter. The inclusion of all of those names got too unwieldy for this publication so we have made them available here:

PEI Committee Rosters

We appreciate the willingness of all committee members to contributor their time and talent to serve the association and the industry. If you are interested in serving on a committee in the future, contact Bob Renkes with your committee preferences at rrenkes@pei.org.

NPN Magazine, known for many years as National Petroleum News, has ceased publication. For those of us at PEI with a sense of two organizations' history, it’s like losing a great friend.

When Jimmy Newberry of Memphis and Fred Coffield of South Bend returned to their petroleum equipment businesses after World War II, they missed the sense of camaraderie they had enjoyed during the war effort. In late 1950, Newberry wrote a letter to NPN in which he expressed his conviction that there was a need for a national association of oil equipment jobbers and his interest in forming such an association. He solicited NPN’s help in publicizing an organizational meeting. Newberry’s letter was routed to A.W. "Al" Boulton, the then publisher of National Petroleum News who, by fortuitous circumstance, received a similar letter a few days later from Fred Coffield.

Farrell Appoints PEI Committees

NPN Ceases Publication

UL Issues Guidance on Isobutanol

Thoughts on EMV

In This Issue


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The origins of PEI as seen in the
pages of NPN from 1951.


Boulton responded to the Newberry and Coffield letters, not merely by putting the two men in touch with each other, but by publicizing the organizational meeting in NPN’s editorial pages. NPN covered the meeting in Louisville and ran a four-page feature article on the newly organized National Association of Oil Equipment Jobbers (NAOEJ), complete with photographs of officers and directors.

The importance of the role played by NPN and Al Boulton in the formation of NAOEJ—PEI’s predecessor organization—cannot be overstated. In those days NPN was a weekly, edited and published in Cleveland. Boulton was the son-in-law of Warren Platt, the man who founded the publication in 1909. In the petroleum marketing industry, NPN’s influence was immense in the early 1950’s, and was to become even more so a few years later when the publication was sold to McGraw-Hill and its editorial offices were moved to New York City. Once, in the early 1960’s, NAOEJ conducted a survey of its members to see what trade publications they read. NPN was at the top of the list, with 100 percent readership. It was the industry bible.

NPN continued its strong editorial support of the new association for many years. For a decade or more the magazine also sponsored a reception for all registrants on the opening evening of NAOEJ’s annual convention. This continued backing by the industry’s leading trade journal was of enormous importance in getting the new association off the ground. Without it the fledgling organization known today as PEI probably would not have survived.

NPN’s support of PEI and its programs continued through the years until the magazine was shuttered. Keith Reid, NPN’s most recent editor-in-chief, now can be reached at keithreid@comcast.net or 847-630-4760. Debbie Reschke-Schug, NPN’s managing editor, can be contacted at aeiohu@hotmail.com or 312-560-2398.

Last month Underwriters Laboratories (UL) announced that fuel storage and dispensing products intended to handle isobutanol-gasoline blends, up to 16 percent isobutanol by volume and compliant with applicable ASTM International fuel quality standards, will not require special investigation by UL if they are listed for use with applicable UL standards that require testing with 25 percent or higher ethanol blends. This includes fuel dispensing equipment listed to the UL Subject 87A Outline of Investigation for Power-Operated Dispensing Devices for Gasoline and Gasoline/Ethanol Blends with Nominal Ethanol Concentrations up to 85 Percent (E0 – E85).

Wayne, A GE Energy Business
, is selling part of their direct service operations in Europe to three existing strategic partners: GiA, Wennstrom and KSW. Under the terms of the agreements, GiA will acquire existing Wayne service operations in Czech Republic, Poland and Hungary; Wennstrom will purchase the Wayne service operations in Sweden, Denmark and Norway; and KSW will acquire the Wayne service operations in Germany and Sweden.
U.S. crude production by 2016 would approach the 1970 historic high of 9.6 million barrels per day according to Energy Information Administrator (EIA) Adam Sieminski.—December 16 briefing on the EIA’s Annual Energy Outlook 2014 presented at the Energy Resources and Environment Program at the Paul H. Nitze School of Advanced International Studies at John Hopkins University.
The Environmental Protection Agency (EPA) will accept comments on its proposed renewable fuel standard blending requirements for 2014 (see November 19 TL) until January 28. Comments may be submitted to regulations.gov and should reference Docket No. EPA-HQ-OAR-2013-0479.
A proposed National Labor Relations Board
(NLRB) rule that would have forced private employers to post a “Notice of Employee Rights under the National Labor Relations Act” has been defeated. The proposed rule was struck down by two separate circuit courts of appeal, one on statutory grounds and the other on constitutional grounds. January 2 was the deadline by which the NLRB would have had to file a petition to the Supreme Court to request review of those appeal court decisions or request additional time to do so. The NLRB did not file, so the business community has won a final victory over the over-active NLRB.

The following excerpt from the September 2013 issue of Convenience Store News provides a glimpse into the thought processes of several petroleum marketers at the Convenience Store News 2013 CIO/Tech Summit as they discussed the challenges and opportunities facing their individual organizations and the industry as a whole with regard to EMV.

“On the topic of EMV, retailers expressed skepticism over both the readiness of the technology, which is already in use in 120 countries, as well as the practicality of the implementation dates. EMV is a set of guidelines that requires retailers to convert to a chip and PIN system for POS transactions by October 2015 for in-store and by October 2017 for pump transactions in order to avoid responsibility for fraudulent credit and debit card transactions.

'There’s no doubt that the banks are driving this [EMV implementation], but there are so many questions about the technology right now that they will probably push back the deadline,' Amir Wurzel of Alon Brands weighed in. 'Everyone is waiting to see what happens.'

“Added another retailer: 'We are not convinced these dates are hard deadlines, but the inside-the-store date is probably harder than the pump deadline.'

“The cost of converting to EMV-capable equipment will be substantial. One retailer said he heard an industry consultant peg the cost of converting fuel pumps to EMV at more than $160 billion for the industry—and that figure doesn’t include the cost of retailers’ communication bandwidths at the store level.

“Overall, the attendees agreed there is still much confusion surrounding EMV. 'I’m not opposed to the technology,' said Jim Xenos, vice president of store technology at Oklahoma City-based Love’s Travel Stops & Country Stores. 'But tell us when it will be ready for us to begin testing, what are the use requirements and when it will be used by consumers.'

Mexico distributor
. DYH Mexicana S.A. de C.V., Jesus Godinez Ortega St., Juarez, Chihihua, Mexico 3127, has applied for distributor division membership. Oscar Arizpe Rodriguez is president of the firm, which was established in 1993. The company represents CentralIL, Morrison, OPW-FC, PTCoupling, RedJacket, Tuthill and VeederR. The company services the equipment it sells. Sponsored for PEI membership by Bob Kempf, APSIntl, Loveland, CO. www.dyhmexicana.com
Florida service company
. Petroleum Plus Services, 2875 SE 58th Avenue, Ocala, Florida 34480, has applied for service and construction division membership. Steve Herbert is owner of the firm, which was established in 2008. The company services petroleum station and convenience store equipment. Sponsored for PEI membership by Richard H. Long, RDMElec, Nebo, NC.


  • Al Hamad Trading, Doha, Qatar (dis)
  • CNG Consulting, Chilliwack, British Columbia, Canada (aff)
  • GHD Inc., Santa Rosa, CA (aff)
  • Aegis Petroleum Inc., Medley, FL (S&C)
  • GBI, S.A. de C.V., Mexico, D.F., Mexico (S&C)
  • Unicare Building Maintenance, Inc., Dallas, TX (S&C)


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© 2014
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.