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April 14, 2014 | Vol. 64, No. 7

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Dear PEI Member:

The PEI Board of Directors met last week in Tucson, Arizona, and made a number of policy decisions related to association operations and membership services. Here is a summary.

Rebuilding PEI Headquarters. The directors voted to use insurance proceeds and funds from PEI’s reserve account to rebuild the association’s headquarters building that was destroyed by fire February 11. No special member assessment or dues increase will be necessary to pay for the new building. Target date for completion is March 2015.

New Recommended Practice. The board approved the development of a recommended practice on the design and installation of LNG refueling systems. Volunteers to serve on the committee responsible for writing the document will be sought later this month.  

PEI Women. A program designed to serve the interests of women members will be developed by a new ad hoc committee, known as the PEI Women Committee. Foundational matters, such as target audience, programming, membership, governance and branding, will be considered by the committee at its first meeting later this spring.  

Budget approved. A $3,249,808 budget for the fiscal year that began April 1 was approved by the board. No dues increase for 2014-2015 was required, marking the 21st year in a row that PEI members have paid dues based on the same dues schedule.

Committee Recommendations Approved. Reports from PEI’s Education and Convention, Strategic Long Range Planning, Safety, Investment and Young Executives Committees were reviewed and approved. Here are some of the committees’ recommendations of general interest to PEI members that were approved by the directors.

  • Explore the possibility of placing the SafetyLetter on a dedicated page on the PEI Forum.
  • Offer three business education summits over the next 20 months. Each summit will cover two or three different subject matter areas of importance to top level managers of PEI member companies.
  • Investigate the idea of creating a mentoring program for PEI members.
  • Hold the 2015 Young Executives Winter Conference in San Diego.
  • Make no change to PEI’s current membership criteria and application processes.
  • Consider the usefulness and ramifications of developing training criteria for technicians in the industry.

PEI Midyear Board Meeting

Future of Methanol

Discount for Cash Growing in U.S.

Texas Stage II Decommissioning


In This Issue


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PEI President Phil Farrell, Kansas City, Missouri, presided at the midyear meeting. Other officers, directors and staff attending the meeting included:
Kevin McKinney, Mobile, AL (vice president)
Terry Cooper, Marion, IA (immediate past president)
Steve Trabilsy, North Aurora, IL (treasurer)
Bob Renkes, Tulsa, OK (executive vice president)
Susan Scott, Trenton, NJ (District 1)
Jody Porter, Yeadon, PA (District 2)
Joey Cheek, Tampa, FL (District 3)
Bill Morgan, Cleveland, OH (District 4)
Susan Maples, Knoxville, TN (District 5)
Bob Stenstrom, Rockford, IL (District 6)
Jason Munson, Sioux Falls, SD (District 7)
John Keller, San Antonio, TX (District 8)
Ryan Rethmeier, San Diego, CA (District 9)
Al Eichorn, Avon, CT (District 10)
Kendra Barzak, Columbus, OH (District 11)
Tim Weiss, Dubuque, IA (District 12)
Dick Basham, Poca, WV (District 13)
Liz Concannon, Minden, NV (Affiliate Division)
Ron Kingsbury, Owings, MD (Service & Construction Division)
Rick Long, Tulsa, OK (general manager)

The deadline to complete PEI’s 2014 Employee Compensation Survey has been extended once again, this time until April 18. The survey, which has 36 participants to date, needs at least 60 to remain significantly significant. The survey is available to PEI distributor members. Completed forms are sent by participants directly to the Profit Planning Group in Boulder, Colorado. If you do not have a copy of the survey form and would like one, contact Chris Bouldin at 918-236-3964 or cbouldin@pei.org.

The Environmental Protection Agency (EPA) will issue a final rule
in the late spring or early summer on EPA’s Renewable Fuels Standard (RFS) proposal. Additionally, EPA expects legal challenges to any RFS standard that the Agency will need to justify in court.—EPA  Administrator Gina McCarthy speaking April 7 to attendees at the annual meeting of the North American Agricultural Journalists.
Tesla Motors’ planned U.S. factory should double production of batteries in six years and should help lower the price tag of its electric cars by 30 percent. The company’s goal is to produce enough lithium-ion cells to supply up to 500,000 cars annually. Last year, all manufacturers combined sold fewer than 100,000 electric vehicles in the U.S.—Kiplinger Letter, March 21, 2014.
Missouri will allow in-state gasoline retailers to market and sell E15 as early as May 30.

Methanol shows many benefits as a transportation fuel but needs to compete with a crowded alternative fuels market, administration officials said at the 2014 Methanol Policy Forum. It could take a decade to sell enough methanol-fueled vehicles to make investment in the necessary fueling infrastructure economical, Patrick Davis, director of the Energy Department’s (DOE) Vehicles Technologies Office, said March 18. “That’s not unique to methanol,” he said. “That’s unique to any fuel that’s going to enter the market, but nevertheless pretty important.”

The recent boom in natural gas production could revive interest in methanol, Davis said. But despite the possible benefits and recent interest in methanol as a transportation fuel, he said methanol is not a pathway currently being pursued by DOE. “However, with low domestic natural gas prices, methanol could be produced at a price that’s advantageous,” Davis said.

All speaker presentations from the 2014 Methanol Policy Forum are available here.

According to the March 26 issue of the Lundberg Letter, 14.8 percent of U.S. gasoline stations offer a discount for paying cash (DFC) for gasoline. The most common cash discount is 10 cents per gallon, said Lundberg. “DFC is much more prevalent in East and West Coast markets, and less popular in the South and Midwest. DFC is also more prevalent in the dealer class of trade,” reported Lundberg.

Amended 30 TAC Chapter 115 specifies that owners and operators of new gasoline dispensing facilities (GFDs) are not required to install Stage II equipment, and existing facilities in the current program areas may decommission Stage II equipment. Gasoline stations may begin the process of removing Stage II equipment on May 16, 2014, providing that all other requirements for decommissioning have been met, including appropriate notification. Owners and operators of GDFs must submit the decommissioning form to the appropriate Texas Commission on Environmental Quality (TCEQ) regional office 30 calendar days before any physical decommissioning activities begin.

Decommissioning must include the entire site. Owners and operators of GDFs that elect to continue with their Stage II equipment can do so, but must continue to test, repair, replace, retrofit and maintain the Stage II equipment in accordance with current Stage II requirements. All decommissioning must be completed by August 31, 2018. Questions concerning  the Stage II decommissioning process should be directed to Santos Olivarez (512-239-4718) or santos.olivarez@tceq.texas.gov.

Emco Wheaton Retail Corporation
, Wilson, North Carolina, has appointed John Vautier vice president of sales. Vautier, formerly with JV Associates, has 25 years of experience in the petroleum equipment industry during which time he has held several sales management positions.
United Pump and Controls, Inc., Suwanee, Georgia, has promoted Travis W. Benton to operations manager. Benton joined the company on a part-time basis in 2000 and has worked as a field service technician since that time. The announcement was made by BJ Benton, president of United Pump and Controls, and Travis’s father. 
Guardian Fueling Technologies has hired Tony Almond to serve as the regional manager for Southeast Florida and Caribbean operations. He will be based in the company’s Ft. Lauderdale office.

Fuel management systems manufacturer. GIR North America, 448 Place Jacques Cartier, Montreal, Quebec H2Y 3B3, has applied for manufacturer division membership. Christophe Giaume is CEO of the firm, which was established in 2010. The company manufactures fuel management systems with real-time capabilities and web-based software, which is sold through distributors. Sponsored for PEI membership by Jean-Guy Dumas, RDumas,Terrebonne, PQ. www.gir-na.com
Car wash equipment manufacturer. Istobal USA, 1100 Page Street, Bristol, Virginia 24201, has applied for manufacturer division membership. Steve Osborn is southeast U.S. regional sales manager for the firm, which was established in 2004. The company manufactures in-bay automatic, express tunnel, conveyorized and self-serve car wash equipment that is sold through distributors. Sponsored for PEI membership by Gary Hirsch, NewWave, North Highlands, CA. www.istobalusa.com
Maryland environmental consultant. Advantage Environmental Consultants, LLC, 8610 Washington Boulevard, Suite 217, Jessup, Maryland 20794, has applied for affiliate division membership. Jeremy Sheidy is project manager for the firm, which was established in 2002. The firm provides environmental consultation to fuel system owners to oversee tank system installation, removal and compliance inspections. Sponsored for PEI membership by Dwayne Stambaugh, StaMtnceMD, New Windsor, MD. www.aec-env.com
Mississippi fueling system contractor. Prawl, Inc., 937 Highway 15 South, New Albany, Mississippi 38652, has applied for service and construction division membership. Krystal Prawl is vice president of the firm, which was established in 1991. The company is a fueling system contractor that specializes in fueling stations, convenience stores and car washes. Sponsored for PEI membership by Jody Roberson, Petroelec, Searcy, AR. www.prawlinc.com


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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.