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October 15, 2014 | Vol. 64, No. 20

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In This Issue

Dear PEI Member:

The 2014 PEI Convention was one of the best the association has sponsored in years, with total registration exceeding our last convention in Las Vegas by nearly three percent. Here are the highlights.

Distributor members are feeling positive about business. According to a recent survey of U.S. distributors, PEI members are experiencing a very good year, ranking 2014 a “6.8” with “5” being average and “10” being their best year ever. They expect 2015 to be even a shade better, giving next year a “7.0” on the same scale. As evidence of their upbeat attitude, members cited construction, commercial sales and installation, equipment/facility upgrades, service and equipment and related services for compressed natural gas as high points.

Manufacturers responding to the same survey ranked 2014 a “6.6,” down from “7.4” in 2013. Manufacturer members expect 2015 to mirror 2014. Twenty-five percent of manufacturers responding to the survey cited new products and/or technological advances as the primary reason they are satisfied with business conditions today and optimistic about 2015. Fifteen percent of the survey’s respondents mentioned new facilities under construction as the primary reason business is good.

Kevin McKinney, president of McKinney Petroleum Equipment, Mobile, Alabama, was elected to serve as the 65th president of PEI. On January 1, McKinney will succeed Phil Farrell, president of Double Check Company, headquartered in Kansas City, Missouri, in PEI’s top position. McKinney is currently serving as PEI vice president.

Steve Trabilsy, president of Accurate Tank Technologies, Aurora, Illinois, was elected vice president for 2015. Trabilsy has just completed his term as treasurer of the association, and has previously served on the PEI Board of Directors representing District 10.

2014 PEI Convention Summary

UST Rule at OMB

Regulatory Briefs: CA, MO, PA

In This Issue


PEI and Industry News »


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Seven people were installed as new PEI directors during the annual meeting in Las Vegas. They are J. Benjamin Hieber, PWI, Incorporated, New Oxford, Pennsylvania (District 2); Andy Mercer, R. W. Mercer Company, Jackson, Michigan (District 4); Tad Cooper, Acterra Group, Inc., Marion, Iowa (District 6); Stephen E. Dixon, P. B. Hoidale Company, Inc., Wichita, Kansas (District 8); Lucy Sackett, Gilbarco Veeder Root, Greensboro, North Carolina (District 10); Brad F. Baker, Husky Corporation, Pacific, Missouri (District 12); and Cassie Stewart Mullen, Linq3, New York, New York (Affiliate Division).

The PEI board met twice during the convention. The board:

  • Appointed Craig Hoyer of Kubat Equipment & Service Co., Denver, Colorado, as treasurer of the association.
  • Voted to establish an ad hoc committee to develop a plan by which PEI would design, develop and publish two self-directed training manuals and accompanying tests for potential hires and entry-level service technicians, respectively. The committee will present the plan to the PEI Board of Directors for review at its April 2015 meeting.  
  • Appointed Phil Farrell to a three-year term on the PEI Foundation’s Board of Directors.
  • Heard a report from PEI staff on the progress of rebuilding PEI’s headquarters office. The building will be paid for in cash using the insurance proceeds and money from PEI’s reserve fund. As of today, trenches have been cut and dug in the existing slab in preparation for laying the utilities. The contractor plans to have the building ready for occupancy by May 2015.

The educational sessions and entire convention program planned by the 2014 PEI Education and Convention Committee were extremely well attended and received high marks. Presentations by most of the speakers, together with a final registration list and floor plan, and a complete list of attendees (downloadable for PEI members only), are available from the PEI convention page.

A sincere thanks to all of you who volunteered to help us put on this convention. The 10-Group chairmen, Education and Convention Committee members, Find Red volunteers, PEI Priority Club members and session presenters all played a huge part in the overall success of our convention in Las Vegas. We appreciate your help.

Mark your calendars for next year’s show October 11-14, 2015, in Las Vegas.

The White House Office of Management and Budget (OMB) has begun (as of September 25) reviewing a final Environmental Protection Agency (EPA) rule that should expand monitoring and inspection requirements for certain underground storage tanks (USTs). OMB has 90 days in which to review the rule, first proposed in 2011. According to the agency’s regulatory dashboard, the final rule is scheduled to be published in the Federal Register in October. Our best guess is that it will appear in the Federal Register either in December 2014 or January 2015.   

Susser Petroleum Partners
has signed an agreement to acquire Aloha Petroleum for approximately $240 million. Aloha Petroleum currently markets through about 100 Shell, Aloha and Mahalo branded stations in Hawaii, about half of which are company operated. Aloha also has an extensive wholesale fuel distribution network and six terminals on the islands. Susser Petroleum Partners also announced that it plans to change its name to Sunoco LP later this year.
Marathon Petroleum Corp.’s Speedway LLC
subsidiary closed its acquisition of Hess’ retail operations and related assets. Marathon will acquire 1,256 company-operated Hess sites, as well as another 86 Hess-branded sites. Marathon plans to convert Hess’ retail branded stations to Speedway over a three-year period.
Chevron Corp. will pay $1.6 million to settle allegations that the company inaccurately reported sources of other payments for cleaning up leaking UST sites when seeking reimbursements from the state’s cleanup fund, the California Water Resources Control Board (SWRCB) announced September 25. The complaint accused Chevron of seeking reimbursements for remediation costs from the state’s Underground Storage Tank Cleanup Fund after already recovering cleanup costs for the same sites through insurance claims, litigation and/or settlements, the SWRCB said in a written statement.

. SB445 was signed into law September 25. The new law, which takes effect immediately, makes significant changes to the state’s UST Cleanup Fund program. Among other things, the program requires all single-walled USTs to be permanently closed by December 31, 2025; extends the program’s sunset date by 10 years to January 1, 2026; and provides grant and loan money through the Replacing, Removing, or Upgrading Underground Storage Tank (RUST) program to assist small businesses to permanently close single-walled USTs. The complete text of SB445 can be found here.
Missouri. The state’s UST operator training rule is open for comment until October 17, 2014. The proposed rule would require owners/operators of all regulated underground storage tanks to designate a Class A/B operator and at least one Class C operator for each UST in use by July 1, 2016. Such personnel would have to be trained in a manner set forth in the rule. For more information, visit the Missouri Petroleum Storage Tank Insurance Fund for the proposed rules.
Pennsylvania. Proposed House Bill 2276 would create a road tax for vehicles that run on all types of motor fuels. The bill uncouples electric from the other alternate fuels “because currently it is very cumbersome to have electric vehicle owners report and remit the tax.”   

Fuel Marketer News
has named Keith Reid as editorial director and business partner. He was formerly editor-in-chief of National Petroleum News.
Patriot Capital Corporation has named Richard Browne vice-president, marketing. Browne was most recently CMO with Chief Outsiders, a national interim marketing organization. Prior to that, he held senior level sales and marketing positions with Gilbarco Veeder Root, Stanley Works and Black & Decker.

Art Kirk
, vice president at National Energy Equipment, has retired after 42 years in the industry. Art began his career as a shipper/receiver with McIntosh Supply in Vancouver, British Columbia, in 1972. He worked his way through inside sales, purchasing, outside sales, management and partner to eventually lead all operations, sales and service for National Energy Equipment’s branch network of 200 people in Western Canada.
Glenn W. Passavant retired from the U.S. Environmental Protection Agency September 30. Glenn worked for EPA’s Assessment and Standards Division in the Office of Transportation and Air Quality. He was PEI’s vapor recovery contact for decades and was known here for his accessibility and candor. Answers about vapor recovery issues were only a phone call away when Glenn was on the job, and that was greatly appreciated.

South Carolina distributor
. Spartan Tank & Trailer, LLC, 4511 South Pine Street, Spartanburg, South Carolina 29302, has applied for distributor division membership. Thomas E. Webber is owner of the firm, which was established in 2010. The company provides lubrication equipment, petroleum pumps and DEF pumping systems and represents Cardlock, Catlow, FairfldInd, GPI, IRPCOinc, Natl-Spncr, Philly and TotlConSys. Sponsored for PEI membership by Dan Murray, TotlConSys, Fort Wayne, IN. www.spartantank.com
Nova Scotia distributor. Petromax Ltd., 16A Fielding Avenue, Dartmouth, Nova Scotia B3B 1L1, has applied for distributor division membership. Henry Lopez is president of the firm, which was established in 1992. The company supplies and services petroleum equipment for service stations, refineries and bulk plants. Petromax represents Computrol, CntmtSoltn, Graco, Morrison, OPW and Universal.
Sponsored for PEI membership by Chris Vassos, WalecoInc, Mississauga, Ontario. www.petromax.ca
Texas distributor. DDC Fuel Services, LLC, 5033 N. FM 157, Venus, Texas 76084, has applied for distributor division membership. Deborah Denman is president of the firm, which was established in 2013. The company represents ClayBailey, CntmtSoltn, EmcoWheatn, FuelTech WA, ModernWeld, Omntec, Pneumrcatr, RCITech, Simplex, Smithpipe and Xerxes. DDC Fuel Services is also a fuel system contractor specializing in tank installation and removal. Sponsored for PEI membership by Jonathan Levy, Pneumrcatr, Hauppauge, NY.
Industry publication. Fuel Marketer News, 123020 Barker Cypress, Suite 600-203, Cypress, Texas 77429, has applied for affiliate division membership. Gary Bevers is CEO and group publisher for the magazine, which was established in 2013. Fuel Marketer News is a weekly e-newsletter for the downstream petroleum industry. Sponsored for PEI membership by Gary Bevers, Gevo, Englewood, CO. www.fmnweb.com
Project management firm. SOS-Retail Services, 19901 Central Drive, Suite 606, Bedford, Texas 76021, has applied for affiliate division membership. Brent Johnson is senior project manager for the firm, which was established in 1985. SOS-Retail Services is a project management firm that works closely with convenience stores. Sponsored for PEI membership by Christopher M. Lawson, McConSer, Irving, TX.
Oregon petroleum installation contractor. M&M Services, LLC, P. O. Box 1093, Medford, Oregon 97501, has applied for service and construction division membership. Sara Marthoski is official representative for the company, which was established in 2000. The firm installs and decommissions equipment used at petroleum storage and dispensing facilities. Sponsored for PEI membership by Gregg Miller, NWPump, Portland, OR. www.mmservicesllc.com


  • Equipos Industriales Del Noroeste, S.A. de C.V., Los Mochis, Sinaloa, Mexico (dis)
  • Swift Petrochemicals, Inc., Marina Del Rey, CA (aff)
  • Microbial Insights, Inc., Knoxville, TN (aff)
  • Genesis Contracting, Inc., Toledo, OH (S&C)
  • JTP Gas Station Service, Inc., North Hollywood, CA (S&C)
  • Soylo Cooper, Cowboys Travel Center, Dumas, TX (O&E)
  • Eric Dransfield, Coastline Partners LLC, Riverside, CA (O&E)
  • Dwight Larsen, Costco Wholesale, Issaquah, WA (O&E)
  • Mike Running, Cowboys Travel Center, Dumas, TX (O&E)
  • J. Abner Hiraldo Santiago, Sol Puerto Rico Limited, San Juan, PR (O&E)
  • Anthony Seals, Coastline Partners LLC, Riverside, CA (O&E)
  • Mike Sharpe, Costco Wholesale, Issaquah, WA (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.