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September 4, 2014 | Vol. 64, No. 18

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In This Issue

Dear PEI Member:

Membership in the newest PEI program—PEI Women—is now open. Any woman who works for a PEI member company is encouraged to join. Women members of PEI’s Operations and Engineering Division and female regulators also may join. Among other benefits, the program will include a session at the PEI Convention, a conference in the spring, networking at these events and via social media, a mentoring program, and online learning opportunities. Lifetime membership is available for a one-time fee of $100.

The idea for this program grew out of a standing-room-only session/reception at last year’s PEI Convention in Atlanta. Fifteen attendees at that meeting then gathered last January in San Antonio to begin formulating preliminary ideas. Following that meeting, PEI President Phil Farrell appointed nine women to further develop the program as members of the PEI Women Committee. Members of that committee include Kristi Peterson, Xerxes Corporation (chair); Nichol Benavides, Petroleum Solutions, Inc; Lisa Blassingame, NOV Fiber Glass Systems; Chris Blumberg, Southeastern Petroleum Systems; Paola Bravo, S. Bravo Systems Inc.; Joyce Couch, Husky Corporation; Lynn Fry, RSSE; Michelle Saab, Wayne Fueling Systems; and Susan Regier, P.S.I. Equipment Sales, Inc.

The Committee has now developed initial programming for the group. First up is the PEI Women session at the PEI Convention on Tuesday, October 7, from 2:00 to 3:30 p.m., at the Westgate Las Vegas Resort & Casino (formerly the LVH). All women are invited to attend to learn more about PEI Women and how the group will help women in the industry; to hear a short presentation by renowned demographer Ken Gronbach on the changing roles of women in the workplace; and, most importantly, to network with peers.

Planning for the inaugural PEI Women’s Conference is underway. The conference is slated for April 29-May 1, 2015, in downtown Denver. Be sure to save the date. Early-bird registration will open January 1, 2015.

To become a charter member of PEI Women, click here.

On August 22, the U.S. Environmental Protection Agency (EPA) sent its final Renewable Fuel Standard (RFS) targets for 2014 to the White House as the long-delayed rule enters its final round of review before public release. It is unclear how long the rule will remain at the White House’s Office of Management and Budget (OMB). Such reviews can take up to three months, but OMB can move quickly at times. Last year, OMB took just over 30 days to send the final biofuel targets back to EPA.

PEI Women: Accepting Members

2014 RFS Requirements At OMB  

LNG/CLNG Committee Appointed

PEI Convention Notes

In This Issue


PEI and Industry News »


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More than 260 days have passed since the 2014 RFS targets were first proposed in November 2013. The continued uncertainty over the final 2014 requirements creates compliance challenges for biofuel producers, oil and gas refiners, and other groups subject to the rule. By the time the rule is published, companies will have about three months to make any necessary adjustments to comply with the regulation, which is applicable for the entire calendar year.

2014 PEI President Phil Farrell has appointed 13 people to serve on a committee charged with writing Recommended Practices for the Design, Operation and Maintenance of Liquefied Natural Gas/Liquefied Compressed Natural Gas Vehicle Fueling Facilities (working title). Members include: Scott Zepp (chair), Consolidated Utilities Corp., Boston, MA; Jim Ames, BLU LNG Transfuels LLC, Salt Lake City, UT; Kelly Crellin, Brugg Pipesystems LLC, Rome, GA; Patrick Fiedler, Fielder Group, Los Angeles, CA; Jimmy Ford, Power Integrity Corporation, Greensboro, NC; Brett Hovland, Shell Oil Company, The Woodlands, TX; Joseph H. Hoyt, FNX LNG Solutions LLC, Plantation, FL; Michael Keilty, Endress+Hauser Flowtec AG, Division USA, Estes Park, CO; Paul Pitney, Husky Corporation, Pacific, MO; Jon Rathbun, Bennett Pump Company, Spring Lake, MI; Greg Thomas, C. E. Thomas Company, Gardena, CA; Ted Williams, American Gas Association, Washington, D.C.; and Tom Wyper, Wayne Perry, Inc., Buena Park, CA.

The PEI Convention at the NACS Show (October 7-10 in Las Vegas) is just a month away. Make sure you have covered all your bases to ensure a terrific convention experience.

  • If you haven’t already, register now to receive Advance Discounts of up to $150 per attendee.
  • Reserve housing now while rooms are still available.
  • Purchase your Kick-Off Breakfast tickets.
  • Join Find Red to further your networking opportunities and help PEI at the same time by greeting and helping attendees find their way around the Las Vegas Convention Center.
  • To help you make the most of your time, click here to view the current list of exhibitors and attendees, the schedule-at-a-glance, and detailed descriptions of all PEI sessions and events.  

Deadline for comments to the draft of PEI’s
Recommended Practices for the Design, Installation, Operation and Maintenance of Compressed Natural Gas Vehicle Fueling Facilities (RP/1500) is September 10. Go here to download the document and submit comments.
Veeder-Root, Simsbury, Connecticut, has acquired software-as-a service (SaaS) provider FuelQuest Inc., Houston, Texas. FuelQuest provides software and services to suppliers, distributors, retailers, carriers and fleets that use transportation fuels throughout the world.
Franklin Fueling Systems, Madison, Wisconsin, has appointed Balaji Swaminathan to the position of marketing director. He will lead Franklin’s team of product managers in managing their respective product lines.

New York.
New York rules for bulk storage of petroleum and chemicals, as well as for management of used oil, would be revised and updated to reflect statutory and regulatory changes under a proposal issued last month by the state Department of Environmental Conservation. To simplify compliance, the proposal would consolidate existing state and federal rules for underground storage tanks (USTs)—except for provisions governing financial responsibility—into one rule. The proposal would also reflect the requirements of the federal 2005 Energy Policy Act, including: facility operator training requirements; authority to prohibit delivery of petroleum and hazardous substances to tanks that are leaking, may be leaking or are being operated in significant noncompliance; and requirements of piping and dispenser secondary containment. Public comments are due November 4 on the proposal, which reflects informal comments received in response to the issuance of a draft in August 2013. The Department also plans an online briefing and a series of public meetings around the state about the plan. PEI/RP100 (installation of USTs) and PEI/RP200 (installation of aboveground storage tanks) are incorporated into the proposed rule by reference.

The lead scavengers ethylene dibromide (EDB) and 1,2-dichloroethane (DCA) were present in leaded gasoline nationwide from the early 1920s to the late 1980s, and were removed from leaded fuels in the late 1980s due to the potential risk lead poses. The trouble is that EDB and 1,2-DCA persist in the environment today due to historic releases from USTs, and scavengers are a serious potential groundwater contaminant and risk to human health and the environment.

In 2013, the Association of State and Territorial Solid Waste Management Officials (ASTSWMO) LUST Task Force surveyed all 50 states to identify what the states are doing to investigate and remediate these lead scavengers. Based on the answers of the 35 states that responded, the LUST Task Force found:

  • There is still great variation from state to state regarding how lead scavenger issues are addressed;
  • In most states, the percentage of sites with lead scavengers as a contaminant of concern is less than 20 percent of their total site population;
  • Of the responding states, just 14 said they routinely monitor their storage tank sites for the presence of lead scavengers. Eleven states said they do not monitor for additive contamination, and nine said they “sometimes” monitor. Some of the states that don’t routinely monitor for lead scavengers said they did in the past but stopped because they weren’t finding them; and
  • Remediation of lead scavengers almost always occurs in conjunction with efforts to clean up other contaminants, and current mitigation technologies appear to be sufficient.

The 49-page Lead Scavengers Survey Report should be of interest to environmental service companies, remediation contractors and UST owners, especially those doing business in the 35 states that responded to the survey. The state-by-state responses are noted in an appendix to the document.

In September 2004, the Environmental Protection Agency (EPA) filed an administrative complaint against Duncan Petroleum Corp., Dover, Delaware, citing violations of federal regulations designed to detect and prevent leaks from underground storage tanks (USTs) at five Maryland gasoline stations. That complaint was settled in a February 2006 consent agreement which imposed a $65,000 penalty, and required measures to ensure continued compliance with UST safeguards.

After Duncan Petroleum failed to carry out the compliance measures, EPA inspected 13 additional Duncan Petroleum stations, documenting UST violations at each facility. In December 2008, after providing multiple opportunities to settle the matter, the United States Justice Department filed a civil action against Robert Duncan and Duncan Petroleum. After two days of jury trial, the claims were resolved in August 2010 by a stipulated order, agreed to by Robert Duncan, requiring payment of a $2 million penalty by December 15, 2010.

Robert Duncan failed to pay the agreed penalty, claiming an inability to pay. After analyzing his financial information, the government discovered that six months prior to trial, Robert Duncan conveyed assets worth about $10 million to several LLCs, trusts and foundations under his control.

In August 2011, the United States filed a new complaint against Mr. Duncan and affiliated parties, seeking to void these asset transfers pursuant to the Federal Debt Collection Procedures Act. On the eve of the trial in March 2014, Mr. Duncan stipulated that the government had sufficient evidence to establish that most of the transfers were fraudulent, and the United States agreed to delay proceedings to permit him to settle his liability by selling and refinancing assets. As of last month, the United States received total payments in settlement of the federal lawsuit of $2,889,351.41, which includes the $2 million penalty imposed in 2010, plus interest, as well as attorney’s fees and costs exceeding $450,000, and daily stipulated penalties exceeding $300,000.

Gregory K. Spiros
, codes and compliance coordinator for Superior Equipment Company, St. Louis, Missouri, passed away August 3. He is survived by his wife, Margie; a son, Adam; and brothers Stephen, Jimmy and Matthew. Greg is the son of Patricia Brown and Gerry Spiros and the late James H. Spiros.

Mexico distributor
. Equipos Industriales Del Noroeste, S.A. de C.V., 1734 South Street Aldama, Col. Anahuac, Los Mochis, Sinaloa, Mexico C.P. 81280, has applied for distributor division membership. Leopoldo Frias Garcia Parra is director for the firm, which was established in 1984. The company represents Bennett, Catlow, CentralIl, Federal, Franklin, HuskyCorp, Leotec, OPW-FC and RedJacket. The firm repairs and services the equipment it sells. Sponsored for PEI membership by J. Gregory Hockman, HockmnLews, West Orange, New Jersey. www.einsa.com.mx
California international trade firm. Swift Petrochemicals, Inc., 4640 Admiralty Way, Suite 500, Marina Del Rey, California 90292, has applied for affiliate division membership. Ibiyemi Durosinmi-Etti is vice president of the firm, which was established in 2012. The company is an oil and gas industry business engaged in the international trade of oil and gas equipment. Sponsored for PEI membership by Min Jiang, BlueSky, Wenzhou, China. www.swiftpetrochemicals.com  
Tennessee microbiological tools firm. Microbial Insights, Inc., 10515 Research Drive, Knoxville, Tennessee 37932, has applied for affiliate division membership. Anita Biernacki is vice president operations for the firm, which was established in 1992. The company provides diagnostic tools to aid clients in understanding and managing biological processes for environmental remediation, microbial induced corrosion and microbial source tracking. Sponsored for PEI membership by Bill Lawson, AtlantcMfg, Milton, DE. www.microbe.com
Construction and removal contractor. Genesis Contracting, Inc., 6505 Angola Road, Toledo, Ohio 43528, has applied for service and construction division membership. James Gordon is chief financial officer for the company, which was established in 1998. Genesis specializes in the installation, removal and upgrade of storage tank systems for petroleum based products. Sponsored for PEI membership by B. F. Larson, OWLarsonCo, Clarkston, MI. www.genesis-contracting.com
California services firm. JTP Gas Station Service, Inc., 12224 Milldale Court, North Hollywood, California 91605, has applied for service and construction division membership. Hagop Ter-Petrossian is CEO of the firm, which was established in 2013. The company services and repairs equipment for service stations, and tests vapor recovery equipment. Sponsored for PEI membership by Gregg Miller, NWPump, Portland, OR. www.jtpgasstationservice.com


  • Imagen Maldonado, S.A. de C.V., Tecamac, Estado de Mexico, Mexico (dis)
  • Multiserve Petroleum Equipment Ltd., Milford, Nova Scotia (dis)
  • Locking Systems International, Inc., Orlando, FL (mfr)
  • Greer Inc., Lakewood, WA (mfr)
  • Clark Welding Service, Appalachia, VA (aff)
  • Phucharoen Construction & Service Co., Ltd., Nakhon Sawan, Thailand (S&C)
  • Northwest Environmental Solutions, Inc., Sumner, WA (S&C)
  • Bill Bowden, My Goods Market, Pleasanton, CA (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.