February 17, 2014 | Vol. 64, No. 3

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Dear PEI Member:

Most TulsaLetter readers are aware that a 15 parts per million (ppm) sulfur specification, known as Ultra Low Sulfur Diesel (ULSD), was phased in for highway diesel fuel from 2006 to 2010. Diesel engines equipped with advanced emission control devices (generally, 2007 and later model year engines and vehicles) must use ULSD fuel. As a result, exhaust emissions from these engines are decreased by more than 90 percent—a very good thing.

It was anticipated that the change to ULSD would impact lubricity, energy content, materials compatibility, and microbial growth. However, accelerated and increased corrosion of diesel storage equipment was not foreseen as a likely outcome. Unfortunately, as we are all painfully aware, severe and rapid corrosion has been observed in systems storing and dispensing ULSD since 2007—an unintended consequence of reducing sulfur in diesel.

Now let’s consider the changes about to be made to gasoline. Beginning in 2006, new Tier 2 regulations lowered the vehicle standard for sulfur in motor gasoline in stages to an average of 30 ppm, with an absolute cap of 80 ppm, down from the previous standard of 300 ppm—a 90 percent reduction. But in an effort to increase the effectiveness of the catalytic converter, which eliminates nitrogen oxides, hydrocarbons and carbon monoxide, EPA has proposed Tier 3 standards that will reduce sulfur in gasoline even further. The proposed standards, which allow federal gasoline to contain no more than 10 ppm sulfur on an annual average basis by January 1, 2017, are expected to be finalized soon.

Talking to tank owners and contractors in the field, there were no adverse consequences to equipment when the country moved from 300 ppm to 30 ppm. But what will happen when we move from 30 to 10? Has the question been asked? Has the effect on equipment been studied? Do the people proposing the sulfur reduction in gasoline know about the industry’s ULSD experience? Or are we just going to cross our fingers, hope for the best and deal with the problem if equipment that stores 10 ppm sulfur gasoline also starts to corrode more quickly.
More questions than answers at this point.

Editors Note: This article was originally prepared for my column (Field Notes) in the next edition of LUSTLine, a publication produced through cooperative agreements between the New England Interstate Water Pollution Control Commission and the U.S. Environmental Protection Agency. LUSTLine is an excellent publication that is produced to promote information exchange on UST/LUST ideas. As I shared a draft of this article with some participants at the recent California Unified Program Conference, they pointed out that not all PEI members receive LUSTLine and urged me to share this article with TulsaLetter readers as well. Current and past issues of LUSTLine are available at www.neiwpcc.org/lustline. To receive notification when new issues are available online, send your email address to lustline@neiwpcc.org.

Low Sulfur Gasoline

Conference on Purchasing & Inventory

Compensation Survey Under Way

In This Issue


PEI and Industry News »



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Register now for PEI's Purchasing & Inventory Managers Conference, June 12-14, 2014, at The Westin Indianapolis to receive the advance registration discount.

The two-day conference will offer a combination of general session presentations and roundtable discussions specifically geared to the needs of purchasing managers and inventory managers. The three general sessions—Turning Buyers Into Investors, Finding the Balance: Inventory Turns & Customer Service and Investing in Profitable Customers—will be presented by Jason Bader, managing partner of The Distribution Team.

Registration for PEI members prior to March 29 is $295 ($545 for nonmembers). Beginning March 29, the fee goes up to $395 for members and $695 for nonmembers. Deadline to register for the conference is Friday, May 16. The registration fee includes all conference materials, three general sessions, four roundtable discussions, three meals, and two receptions. Registration can be completed online at www.pei.org/pi2014. A list of those pre-registered for the conference will be posted on the website in the future.

Conference registration does not include overnight accommodations. PEI has secured a room rate of $159 single/double at The Westin Indianapolis. Hotel reservations must be made prior to May 14 to secure this special rate. Call 888-627-8414 and ask for the PEI Purchasing & Inventory Managers Conference room block or book online here.

PEI members sponsoring the conference are ESCO Services, Husky Corporation, Morrison Bros. Co., Performance Ink, Petro Clear by Fram Filtration, PMP Corporation and RDM Industrial Electronics. If your company is interested in becoming a sponsor, contact Bob Young at byoung@pei.org.

A draft of PEI’s Recommended Practices for the Design and Installation of Fueling Systems for Emergency Generators, Stationary Diesel Engines and Oil Burner Systems (PEI/RP1400) is available for public comment at www.pei.org/RP1400. The comment period is open through Friday, April 4.
PEI’s 2014 Employee Compensation Survey is available for PEI distributor members to complete and submit to the Profit Planning Group in Boulder, Colorado. If you do not have a copy of the survey form and would like to receive one, contact Chris Bouldin at 918-236-3964 or cbouldin@pei.org.

The public comment period on EPA’s proposed 2014 renewable volume obligations ended January 28. It is not clear how long EPA will take to digest industry feedback and make its decision.
The new target date for EPA’s Office of Underground Storage Tanks (OUST) to release its new underground storage tank rules is September 30, 2014.

Jules Kenwood, founder of Prairie Oil Services, Saskatoon, Saskatchewan, died January 25 from complications following a massive stroke. Jules founded Prairie in 1967 and worked there until he sold the company and retired in 2000. He is survived by his wife of 55 years, Linda; two daughters, Kelly Fesik and Julie Kenwood; a son, Chad Kenwood of Century Petroleum Construction in Winnipeg, Manitoba; and three grandchildren.
Marianne L. Hieber, wife of former PEI president J. Stephen Hieber of PWI, Incorporated, New Oxford, Pennsylvania, died February 13. She was 62. Marianne and Steve would have celebrated their 43rd wedding anniversary later this month. Marianne usually accompanied Steve to PEI committee and board meetings and those who were fortunate to get to know her were struck by her desire to help others in need. She spent the last 14 years of her varied career with Mental Health America, where she assisted those with mental illness. Survivors include her husband, Steve; son, J. Benjamin Hieber and his wife, Stacy; a daughter, Sarah Elizabeth and her husband, Mac Malkawi; and two grandchildren.

Flexible underground pipe manufacturer. Flexrite Sdn. Bhd., No. 3, Jalan 7/6, Taman Perindustrian Selesa Jaya, Seri Kembangan, Selangor, DE, Malaysia 43300, has applied for manufacturer division membership. Bill Everhart is managing director for the firm, which was established in 2008. The company manufactures flexible underground pipe and components for retail sales businesses. The products are sold through distributors. Sponsored for PEI membership by Nicholas M. Hugh, Forecourt, Bridgwater, Somerset, United Kingdom. www.flexrite-systems.com
Fuel dispenser lock manufacturer. InstaKey Security Systems, 7456 West 5th Avenue, Lakewood, Colorado 80336, has applied for manufacturer division membership. Cita Doyle is director of sales and marketing for the company, which was established in 1980. The company manufactures key controlled door and dispenser locks which are sold through distributors. Sponsored for PEI membership by Sanjay Thakker, GasAdvProd, Clifton, NJ. www.instakey.com 
Station building and maintenance firm. Scott Tyler Mechanical Services, 2049 SR 3001, Meshoppen, Pennsylvania 18630, has applied for service and construction division membership. Shannon Lord is planner for the firm, which was established in 2011. Scott Tyler Mechanical Services builds and maintains fueling stations. Sponsored for PEI membership by Craig Smith, Smith&Sons, Chinchilla, PA.


  • DYH Mexicana S.A. de C.V., Juarez, Chihuahua, Mexico (dis)
  • Petroleum Plus Services, Ocala, FL (S&C)


  • PetroTech LLC, Plantersville, Mississippi, has transferred from the service and construction division to the distributor division of PEI


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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.