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August 19, 2014 | Vol. 64, No. 17

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Dear PEI Member:

PEI is now accepting comments on its draft of Recommended Practices for the Design, Installation, Operation and Maintenance of Compressed Natural Gas Vehicle Fueling Facilities (PEI/RP1500). Individuals interested in reviewing and/or commenting on the draft document before publication can download a read-only copy and submit comments online at www.pei.org/RP1500. Comments are due by Wednesday, September 10. The PEI CNG Vehicle Refueling Systems Committee will review the comments September 16-19 before issuing the recommended practice in final form in November.

The 114-page draft document is PEI’s most ambitious undertaking in more than 25 years of issuing recommended practices. Not only is it the longest recommended practice written by PEI, it discusses the design, installation, operation and maintenance of fueling facilities that are still relatively rare in the United States. Since the identity of CNG facility owners and operators is not widely known to us, we encourage you to pass this information on to interested parties for review and comment. Like all of our recommended practices, we want to get it right the first time and your help in disseminating this draft will go a long way in issuing a recommended practice that will be useful to everyone.

Members of the PEI CNG Vehicle Fueling Systems Committee include Steve Bernstein (chair), Jones & Frank; Eric Beavers, Beavers Petroleum Equipment Co. Inc.; Julian T. Canuso, Jr., Oxford Engineering Company; Jason Carr, Stantec; Michael L. Eaves, Clean Energy; Andy Grimmer, ANGI Energy Systems, LLC; J. Benjamin Hieber, PWI, Incorporated; Kevin Kalafut, P.B. Hoidale Company, Inc.; Bryan Novy, Kwik Trip, Inc.; Richard Olsen, Hunt Guillot & Associates; Carl P. Overturf, PECO Energy; Sufyan Qarni, Sparq Natural Gas, LLC; and Scott Zepp, Consolidated Utilities Corp.      

Runoff elections for the final new positions on the PEI Board of Directors have been completed.  Winners include Brad Baker, Husky Corporation, Pacific, Missouri (District 12) and Cassie Stewart Mullen, Linq3, New York, New York (Affiliate Division). Baker and Frank De Poli, Elaflex Latin America, Buenos Aires, Argentina, tied in the District 12 runoff election and the winner was determined by lot.

RP 1500 Draft

PEI Board Elections

Hydrogen Fuel Cell Update

OPW Acquires Liquip

In This Issue


PEI and Industry News »


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“Several manufacturers are now gearing up to sell hydrogen fuel-cell vehicles in the US, creating another source of long-term competition for petroleum in the market for transportation fuels. Three Asian automakers—Honda, Toyota and Hyundai—plan to start mass marketing of their hydrogen fuel-cell models in the US later this year and in 2015. The same manufacturers are simultaneously rolling out their fuel-cell models in other markets, notably Japan, Germany, the UK and Scandinavia.

“Hyundai has already started leasing a fuel-cell version of its ix35 Tucson sport utility vehicle this summer in California. Toyota and Honda plan to start selling their fuel cell-powered FCV-R and FCX Clarity passenger cars, respectively, in the US next year. California is viewed as an ideal location for launching fuel-cell cars because it is a big market with strict environmental laws.

“It is not yet clear how sales of fuel-cell cars will be affected by the current limited availability of hydrogen fueling infrastructure. Fuel-cell cars face a chicken-and-egg dilemma—consumers want to see fueling stations before they buy vehicles, but the auto industry wants to be sure there is sufficient demand for the vehicles before it starts mass-producing them and investing in fuel infrastructure.

“California already has nine hydrogen fuel stations up and running. New hydrogen stations are eligible for state government grants totaling $20 million per year, which are available at least through 2023. The subsidies could be extended beyond that date, but California regulators and promoters of fuel-cell vehicles tend to agree that they can be phased out once 100 stations are built.

“So far the main investors in California’s hydrogen fuel stations have been industrial gas companies, such as Air Products, Linde and Air Liquide, which already sell hydrogen for other uses, such as oil refining and fertilizer manufacturing. However, other players are also getting involved. Toyota, for example, is providing a bridge loan to energy technology firm First Element Energy to build 68 fuel stations in the Los Angeles and San Francisco areas by 2016.

“The business case for hydrogen fueling stations has been improving, with capital costs per station now running between $1 million to $1.5 million, down from $3 million several years ago.”—Oil Daily, August 14, 2014.

OPW, Cincinnati, Ohio, signed a definitive agreement to acquire all the outstanding shares of Liquip International, Smithfield, NSW, Australia. Liquip designs and manufactures bulk liquid handling and storage solutions in the petroleum, aviation and chemical markets. Liquip expects to generate revenue of approximately $40 million USD in 2014.

Petroleum Solutions, Inc., Edinburg, Texas, has hired Shawn Brooke as director of construction. Based in the company’s San Antonio office, Brooke can be reached at sbrooke@petsolinc.com or 210-661-2489. Stan Spofford has joined PSI as corporate account sales manager and will work out of the corporate office in Edinburg. Contact Spofford at sspofford@petsolinc.com or 956-686-9582.

The California State Water Resources Control Board (SWRCB) has reached a $1 million settlement with the City of Glendale for alleged violations of regulations concerning storage of hazardous substances in underground storage tanks (USTs) at 11 facilities owned by the city.

The lawsuit is the first enforcement action by the SWRCB’s Office of Enforcement under the SWRCB’s Government Owned and/or Operated Tank (GOT) initiative that started in 2010 with the assistance of the US Environmental Protection Agency. It is the second enforcement action by the State Water Board against a public entity for UST violations. The GOT initiative aims to level the playing field with respect to compliance and enforcement between privately and publicly owned and operated USTs.

Tank gauge manufacturer
. Qingdao Accugauge Instrument Co., Ltd., No. 16, Shanghai Road, Free Trade Zone, Qingdao, China 266555, has applied for manufacturer division membership. Zhao Miao is marketing department manager for the company, which was established in 2001. The company manufactures automatic tank gauges which are sold through distributors. Sponsored for PEI membership by Zhou Liang, Censtar, Zhengzhou City, China. www.exaccu.com
Costa Rica installation and repair contractor. Fommor S.A., 250 Metros Oeste Del Colypro, Porton de Cortina Blanco, Desamparados De Alajue, Costa Rica 20110, has applied for service and construction division membership. José G. Fonseca Mora is an engineer for the firm, which was established in 1990. The company sells, installs and repairs gas station equipment. Sponsored for PEI membership by Victor Garduno Demeneghi, Alvic, Mexico, D.F., Mexico.
Jamaica maintenance company. Barwood Petro Trading, 313 2 North, Greater Portmore, Portmore, St. Catherine, Jamaica, has applied for service and construction division membership. Paul Barnett is owner of the firm, which was established in 2006. The company maintains and sells petroleum equipment. Sponsored for PEI membership by Rod Smith, Freedom, Kennesaw, GA.
Kansas compressed natural gas system provider. Midwest Energy Solutions Inc., 2002 West 39th Avenue, Kansas City, Kansas 66103, has applied for service and construction division membership. Michael Batten is president of the firm, which was established in 2009. The company builds compressed natural gas fueling systems. Sponsored for PEI membership by Phil Farrell, DoublCheck, Kansas City, MO. www.mwes4u.com


  • Custom Cooler Inc., San Dimas, CA (aff)
  • Shield Environmental Associates Inc., Lexington, KY (aff)
  • GEMS Environmental Management Services, Concord, CA (S&C)
  • D & J Services, Inc., Knoxville, TN (S&C)
  • Anne Virgets, Lavigne Oil Co., Baton Rouge, LA (O&E)


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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.