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May 29, 2014 | Vol. 64, No. 10

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In This Issue

Dear PEI Member:

We are receiving an increasing number of inquiries about EMV (Europay MasterCard Visa). In fact, it probably accounts for half of the calls and emails I have received this month.

Most PEI members and their customers understand that EMV is not a mandate, but a liability shift. After October 1, 2015, merchants that decline to use EMV-compatible POS (point-of-sale) technology for in-store transactions will be liable for any in-store fraudulent transactions. And after October 1, 2017, fuel marketers that have not replaced or retrofitted their automated fuel dispensers with EMV-compliant equipment will assume responsibility for fraudulent transactions in the forecourt. It is important to note and explain to your customers that no retailer will be precluded from using card payments after those dates—they will just assume a greater liability for counterfeit cards.

That said, PEI members are being asked by many of their large customers for advice about the steps they can take now as they begin the process of determining if and when to become EMV compliant. We asked Gray Taylor, executive director of Conexxus, the convenience store industry’s technical standards and technology organization, for his advice on what to tell retailers. Taylor also consults with NACS on card payments technology policy issues—like EMV. Here are Taylor’s recommendations to all retailers:

• Get with your equipment vendor(s) and survey your sites. Make sure wiring to islands is in good shape.
• Determine what can be economically upgraded and what should be simply replaced. Every terminal asset should have a high and low “useful life” value put on it.
• Any new equipment should, to the extent it can, be “EMV ready.” Stop buying old platforms, if possible.
• Get an estimate of liability shift cost increases from your major brand or acquirer (if private branded). This is critical to determining cost recovery.
• Determine a high replacement and low replacement capital plan. This might be a significant expense.
• Design an implementation plan with your major oil companies and vendors for upgrading the chain, even if you don’t plan on implementing right away. Make sure to put lots of contingencies in the plan. There is still a lot of uncertainty, and channel overload is assured.

Guardian Fueling Technologies, Inc. and JMP Solutions, Inc. have reached an agreement that will allow Guardian to purchase the assets of JMP Solutions. The combined company will have fully functional facilities supporting equipment distribution, service and construction operations in Ft. Lauderdale, Miami, Ft. Myers, Tampa, Orlando, Ocala, Jacksonville, Pensacola, Alabama, Georgia and Mississippi. Joey Cheek, president of JMP Solutions, will join the Guardian team as executive vice president. A closing date will be announced in the coming weeks.

The Hess Corporation said May 20 that it would sell its retail arm, including 1,256 stations in 16 states, to Marathon Petroleum for $2.6 billion. The combined businesses reported roughly $27 billion in pro forma revenue last year, as well as 6.2 billion gallons in annual fuel sales and $4.8 billion in merchandise sales. Marathon’s Speedway subsidiary owns and operates 1,480 stations in nine states. All Hess stations will become Speedway locations when the deal closes, which is expected late in the third quarter.

Minnesota will begin its 10 percent biodiesel mandate on July 1, becoming the first state to mandate the fuel blend. The increase to 10 percent biodiesel will only be in place during the summer months (April-October), with the mandate reverting back to 5 percent in the winter months. Minnesota has had its 5 percent mandate in place since May 2009.
Iowa Governor Terry Branstad signed into law on May 21 an extension of a tax credit for gasoline containing 15 percent ethanol. The E15 credit pays 3 cents per gallon for the 15 percent ethanol blended into gasoline sold from January 1 to May 31, and 10 cents per gallon for sales from June 1 to September 15.           
Missouri will allow the sale of E15 beginning June 1. It will become the 13th state to approve the sale of the 15 percent ethanol blend.
Hyundai says the first hydrogen-powered Tucson Fuel Cell crossover utility vehicles have arrived in the Unites States, marking a major milestone for the hydrogen fuel vehicle sector. These vehicles, which are mass-produced on Hyundai assembly lines overseas, will be offered for retail sale in the Southern California market in June. Hyundai notes that availability of the Tucson Fuel Cell vehicle will expand to other regions in the United States as the hydrogen refueling structure grows.

Terry H. Rosfelder will retire from Sunoco at the end of June. Terry has served Sunoco during his career as a field engineer, manager of engineering, and as a regional manager in charge of transportation, terminals and the environment. He plans to spend more time with his wife and family, pursue some of his hobbies and do some consulting.
Debbie Keech retired April 30 from Pope & Associates after 10 years with the company and 33 years of dedicated service to the petroleum equipment industry. Debbie plans to spend time enjoying life with her husband, Joe.    

Hawaii distributor. Hydra-Air Pacific Inc., 3169 Koapaka Street, Honolulu, Hawaii 96819, has applied for distributor division membership. Robert F. Morneau, Jr., is president of the firm, which was established in 1985. The company is an industrial supply firm representing CentralIL, Divrsified, EBW, EmcoWheatn, ESCO, Federal, Gilbarco, GormanR, GPI, HoseMaster, LSI, MCarderInd, Morrison, PetroClear, PIUSI, PMPCorp, Pneumrcatr, PTCoupling, Smithpipe, Tuthill, Universal and WesternFG. Sponsored for PEI membership by Lucy Sackett, Gilbarco, Greensboro, NC. www.hydraairpacific.com
Texas CNG fueling equipment manufacturer. J-W Power Company, 15505 Wright Brothers Drive, Addison, Texas 75001, has applied for manufacturer division membership. Genny Van Ness is business development, senior marketing coordinator for the firm, which was established in 1960. The company manufacturers CNG fueling equipment systems that are sold through distributors. Sponsored for PEI membership by Scott Jones, JonesFrank, Raleigh, NC, www.jwenergy.com
New Jersey insurance liability carrier. Berkley Specialty Underwriting Managers, 101 Hudson Street, 17th Floor, Suite 1700, Jersey City, New Jersey 07302, has applied for affiliate division membership. Daryl Gottilla is senior claims examiner for the firm, which was established in 2004. The company is an environmental insurance liability carrier catering to companies in petroleum operations. Sponsored for PEI membership by Brian Berkle, ValleyTank, Houston, TX. www.berkleysum.com
New York software company. Linq3, 75 Rockefeller Plaza, 14th Floor, New York, New York 10019, has applied for affiliate division membership. Dominic Schmitt is director partner programs for the firm, which was established in 2007. Industry veterans Cassie Stewart Mullen and Bryan Crossan have recently joined the company’s petroleum retail sales organization. Linq3 is a software company that develops technology that allows lottery tickets to be sold at unmanned POS terminals. Sponsored for PEI membership by Lucy Sackett, Gilbarco, Greensboro, NC. www.linq3.com.
Washington testing and repair firm. Cathodic Solutions, P. O. Box 576, Twisp, Washington 98856, has applied for service and construction division membership. Greg Port is owner of the firm, which was established in 2010. The company tests and repairs cathodic protection systems and performs tank and line tightness testing. Sponsored for PEI membership by Steve Purpora, PurporaEng, Saukville, WI. www.cathodicsolution.com

• Texoma Pump, Duncan, OK (dis)


EMV Advice For Retailers

Guardian Purchases JMP Solutions

Hess Sells to Marathon

Alternative Fuels: MN, IA, MO, CA


In This Issue


PEI and Industry News »



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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.