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December 15, 2014 | Vol. 64, No. 24

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Dear PEI Member:

The U.S. Environmental Protection Agency (EPA) has delayed finalization of the long-awaited 2014 Renewable Fuel Standard (RFS) Renewable Fuel Obligations until 2015. EPA's notice, in part, said:

“On November 29, 2013, EPA published a notice of proposed rulemaking to establish the 2014 RFS standards. The proposal has generated significant comment and controversy, particularly about how volumes should be set in light of lower gasoline consumption than had been forecast at the time that the Energy Independence and Security Act was enacted, and whether and on what basis the statutory volumes should be waived. Most notably, commenters expressed concerns regarding the proposal’s ability to ensure continued progress toward achieving the volumes of renewable fuel targeted by the statute.

“EPA has been evaluating these issues in light of the purposes of the statute and the Administration’s commitment to the goals of the statute to increase the use of renewable fuels, particularly cellulosic biofuels, which will reduce the greenhouse gases emitted from the consumption of transportation fuels and diversify the nation’s fuel supply.

“Finalization of the 2014 standards rule has been significantly delayed. Due to this delay, and given the ongoing consideration of the issues presented by the commenters, EPA is not in a position to finalize the 2014 RFS standards rule before the end of the year. Accordingly, we intend to take action on the 2014 standards rule in 2015 prior to or in conjunction with action on the 2015 standards rule.”

EPA Delays Final 2014 RFS

PEI 2015 Service & Construction Managers Conference

Registration for PEI Women Conference Open

Charles D. Kemp Scholarship Applications Available

Regulatory Briefs





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Here are some of our thoughts about EPA’s announcement and its impact on PEI members and their customers:

  • EPA originally proposed in November 2013 to lower the blending requirements to 15.21 billion gallons, a reduction in the Congressional mandate of about 3 billion gallons. EPA made this proposal because it didn’t think the fuel sector could absorb any more ethanol. EPA’s announcement gives cautious hope to the ethanol industry that the agency will fundamentally rethink how it proposes the annual fuel levels.  
  • On December 3, an OnCue Express station in Oklahoma City became the first U.S. retail gasoline station since 2010 to sell regular gasoline for under $2 a gallon. The national average—hovering around $2.74 last week, also the lowest since 2010—is down 51 cents in a year and continues to fall. If lower-cost gasoline is available for years to come, will the public drive more, consume more gallons and move the nation away from the “blend wall” most believe we have already hit?
  • The “decision to not decide” perpetuates the uncertainty that has plagued the continued evolution of biofuels production and marketing for a year. A predictable marketplace will only be achieved if the RFS is allowed to be the market-forcing mechanism. Until then, a strong move to E15 or E85 blends will not occur.
  • The RFS will be an issue in the 114th Congress. It is expected that legislation will be introduced next year to either reform or eliminate the RFS. The next chair of the Senate Environment and Public Works Committee is James Inhofe, an Oklahoma Republican, who is a strong critic of the RFS. Inhofe will probably hold hearings in 2015 attacking the RFS. However, ethanol’s support is bipartisan and along geographical lines. Even though Republicans will control both chambers of Congress next year, common ground for reform might be as elusive as ever, leading us to believe that attempts to weaken the RFS will not succeed.   

PEI 2015 Service & Construction Managers Conference
If you are responsible for your firm’s service or construction department, consider attending PEI's 2015 Service & Construction Managers Conference, March 19-21, in Orlando, Florida.

The two-day conference will offer a combination of general sessions and roundtable discussions specifically geared to the needs of service and construction managers. The conference will include presentations by Mike Staver on three topics of interest to both groups:

  • Leadership Isn’t for Cowards: How to Lead Courageously in a Turbulent Age
  • How to Create an Exceptional Customer Experience: How It Was Is Not How It Is
  • Talent for Keeps: How to Attract, Retain and Engage Top Performers

Those attending the conference also will have an opportunity to discuss issues with other managers from across the nation in a roundtable format. General management roundtable topics for both service and construction managers include:

  • Human Resources/Employee/Personnel Management
  • Office Management
  • Customer Relations
  • Manufacturer/Distributor Relations

Roundtable topics for service managers include:

  • Customer Service
  • Jobsite Safety
  • Service Department Management
  • Service Technicians

Topics specifically for construction managers include:

  • Construction Projects
  • Construction Employees
  • Construction Safety
  • Construction Management

Registration for PEI members prior to January 21 is $295 ($545 for nonmembers). Beginning January 21, the fee goes up to $395 for members and $695 for nonmembers. The fee includes all conference materials, three general sessions, four roundtable sessions, three meals and two receptions. You can register at www.pei.org/SC2015 or call Sondra Sutton at 918-236-3967. A list of people pre-registered for the conference will be posted on the PEI website in the near future.

The conference will be held at the DoubleTree by Hilton Orlando at SeaWorld, Orlando, Florida. Conference registration does not include sleeping room accommodations. Conference attendees can secure the PEI $139 single/double conference rate and make reservations by clicking here. Reservations must be made prior to February 28 to receive the special rate.

PEI members sponsoring the conference are Davisware, ESCO Services, Husky Corporation, Morrison Bros. Co., PMP Corporation and RDM Industrial Electronics. If your company is interested in becoming a sponsor, contact Bob Young at byoung@pei.org.

PEI members responsible for planning the conference are Pete Anstadt, PWI Incorporated, New Oxford, PA; Shawn Brooke, Petroleum Solutions, Inc., San Antonio, TX; Ron Kingsbury, UST Services Corporation, Owings, MD; Nate Lawson, McCon Building and Petroleum Services, Inc., Irving, TX; Ryan Mulvaney, Central Illinois Manufacturing Company, Bement, IL; Marshall D. Ryan, Unified Services of Texas, Inc., Southlake, TX; Billy Thorne, Mid-South Steel Products, Cape Girardeau, MO; and Robert Wileman, Petroleum Solutions, Inc., Houston, TX.

PEI is proud to present the inaugural PEI Women Conference, to be held April 29 – May 1, 2015, in Denver, Colorado, at the Embassy Suites Downtown. The conference is packed with educational sessions, presentations, and numerous opportunities to interact and network.

  • Welcome reception and dinner on Wednesday, April 29.
  • Kick-Off Keynote on Thursday, “Fearless Leadership,” by Carey Lohrenz. Lohrenz was the first female F-14 Tomcat Fighter Pilot in the U.S. Navy. She shares her fascinating experiences operating in one of the world's most challenging environments: an operational aircraft carrier.
  • Two sessions by Gail Alofsin: “Be Your Own Hollywood—Cultivating Your Inner Rock Star!” and “The Foundation of Leadership: They Know It When They See It!” Alofsin is president of Authentic Measurable Performance and adjunct professor at the University of Rhode Island.
  • An update on the new underground storage tank rules, expected to be out this winter, by Carolyn Hoskinson, director of the Environmental Protection Agency’s Office of Underground Storage Tanks. Hoskinson will also share her perspectives as a woman in government.
  • Two sessions by Kathryne Newton, Ph.D.: “The Evolving Role of Women in the Workplace” and “Upgrading Your Communications Skills for the New Business Era.” Newton is professor of Supply Chain Management Technology and is the Graduate Chair in the Technology Leadership and Innovation Department at Purdue University.

See the full schedule here.

Early-bird registration for PEI Women members is $395 ($495 for nonmembers) until January 28. After January 28, the fee increases to $495 for members ($595 for nonmembers). (Note that the nonmember registration fee includes a PEI Women membership.) The fee includes all sessions and materials, lunch, two receptions and two dinners. The room rate at the Embassy Suites is $150 plus tax until April 7. Breakfast is included with the hotel room rate.

An optional tour of the National Renewable Energy Laboratory (NREL) is planned prior to the conference opening on the afternoon of April 29. Space for the tour is limited to 20 individuals on a first-come, first-served basis.

PEI Women Committee members include Kristi Peterson, Xerxes Corporation, chair; Nichol Benavides, Petroleum Solutions, Inc.; Lisa Blassingame, NOV Fiber Glass Systems; Chris Blumberg, Southeastern Petroleum Systems, Inc.; Paola Bravo, S. Bravo Systems Inc.; Joyce Couch, Husky Corporation; Lynn Fry, RSSE; Michelle Kautz, Wayne; and Susan Regier, P.S.I. Equipment Sales, Inc.

Each year, the PEI Foundation awards $1,000 Charles D. Kemp Scholarships to deserving dependents of PEI member company employees.

Applications for the 2015-2016 scholarships are now being accepted. To be eligible, an applicant must be a dependent of a full-time employee of a member company in PEI’s manufacturer, distributor, service and construction, or affiliate divisions. The applicant must also plan to enroll as an entering full-time freshman for the 2015-2016 academic year at an accredited four-year college or university. Recipients are selected based on academic achievement, leadership, character, need, and the applicant’s intent to contribute to the future of the fuel and fluid handling equipment industry.

For additional information and to download the scholarship guidelines and application form, visit www.pei.org/foundation. Deadline for completed applications is March 31, 2015.

. Hold-open clips will be allowed on dispenser nozzles throughout the commonwealth beginning January 1, 2015. The ban on hold-open latches had been in place since the 1970s. The rule change is part of a larger fire code overhaul going into effect at the start of 2015.
Vermont. The state is in the process of amending its Stage I vapor recovery rules to clarify the requirements in its existing Stage I regulation. The only anticipated economic impact is to some gasoline dispensing facilities (GDFs) that may need to install updated equipment to comply with the amendments. The equipment needed and estimated costs will vary from GDF to GDF, depending on the equipment they already have in place. For those GDFs that need to install new components, the estimated cost ranges from $435 to $2,343 per facility. The deadline for public comment has expired. The proposed rule was reviewed by the Legislative Committee on Administrative Rules on December 4.

The White House
said November 18 that 70 electric utility companies across the nation are promising to spend at least 5 percent of their fleet acquisitions budget each year—totaling more than $50 million annually—on the purchase of electric vehicles.—Detroit Free Press, November 18, 2014.
Despite solid growth in the convenience store count, the U.S. is still less saturated with C-stores than it was in 2008. In 2008, population per store had dropped to just 2,079; in 2014 it was 2,105. Back in 1986 there were 3,752 people per store. The number of single store operators continues to grow faster than the number of chain store outlets. Single store operators accounted for 50 percent of total stores in 2000; now they are 63 percent of the total.—Lundberg Letter, November 6, 2014.
Overall diesel demand in the U.S. will start to decline in 2016 in wake of substitutions for diesel in the non-transportation sector and growing use of compressed natural gas (CNG) for heavy-duty vehicles and railroad segments.—An Assessment of the Diesel Fuel Market: Demand, Supply, Trade and Key Drivers,  a report commissioned by the Fuels Institute.

, Poca, West Virginia, has made three territory assignment changes effective January 1. J.U.R. will represent the company throughout California. Merthan Associates will be responsible for Iowa, and Walsh, Long & Company will cover Illinois, Indiana and Michigan.
Modern Welding Company, Inc., Owensboro, Kentucky, will be represented in the Northeastern U.S. by TR2 Corporation of Wayne, New Jersey.

Margaret Ann Slawinski
, a former officer for OILCO Liquid Handling Systems, died November 20 at the age of 83. She served as vice president, board treasurer and chief accounts supervisor in her 40- year career with the company. She was instrumental in designing the internal finance system still used today and continued to operate in various capacities well into 2014. Margaret is survived by her husband, Richard C. Slawinski Sr.; a son, Richard C. Slawinski, Jr.; a daughter, Patricia A. Skochil; four grandchildren and one great-grandchild.
Edward R. (Ned) Maxwell Sr., founder of Eastern States Associates, Inc. in 1955, passed away peacefully on November 21. Ned was always a strong PEI supporter and made certain that Eastern States was one of the first companies to join PEI when affiliate division membership was opened to manufacturers’ representative agencies in 1968. He is survived by his son, Edward, Jr., and three daughters, Pat Neal, Anne Towne and Kati Bepko.
Theodore John Renkes, father of the editor of this newsletter, died November 29 in Atlanta, Georgia. He was 87. Although he had never been in the petroleum equipment business (he was employed by various furniture manufacturers for nearly 47 years), he had taken an intense interest in PEI since 1979 and took every opportunity to ask how the industry and PEI were going. He was a great role model for his boys and a wonderful friend to those who were fortunate to know him. In addition to his wife, Charlotte, and son, Bob, he is survived by another son, David, three grandchildren and two great-grandchildren.  
Austin Avery Hurd Leonard, office manager and inside salesperson for Leonard Petroleum Equipment Co. Inc., Twin Falls, Idaho, passed away November 25, 2014, while visiting friends in Lawrence, Kansas. He was 34. Austin represented the third generation in the business and for over a decade worked alongside his father, Steven, extended family and close friends. He is survived by his parents, Steven and Marion “Mayz” Leonard, four brothers and a sister. 

Mexico service and construction firm
. Uriarte Equipamiento Gasolinero S.A. de C.V., Rio Nazas 1494, Col. Los Pinos, Culiacan, Mexico 80128, has applied for service and construction division membership. Antonio Uriarte is COO of the firm, which was established in 1996. The company installs service station equipment. Sponsored for PEI membership by Artemio Hernandez Medina, RNB, Monterrey, N.L., Mexico.


  • DDC Fuel Services, LLC, Venus, TX (dis)
  • Magnetron USA, Torrance, CA (dis)
  • Petromax Ltd., Dartmouth, Nova Scotia (dis)
  • Spartan Tank & Trailer, LLC, Spartanburg, SC (dis)
  • Banlaw Fuel Management Solutions, Elko, NV (mfr)
  • Petro Defense, Zephyrhills, FL (mfr)
  • Clear Creek Private Investors LLC, Atlanta, GA (aff)
  • Alfred Benesch & Company, Glastonbury, CT (aff)
  • Fuel Marketer News, Cypress, TX (aff)
  • ProTechnology, Ladera Ranch, CA (aff)
  • SOS-Retail Services, Bedford, TX (aff)
  • The Dimension Group, Dallas, TX (aff)
  • Vinamco Import & Export Petroleum Equipments JSC,
    Ho Chi Minh City, Vietnam (aff)
  • CalClean, Inc., Orange, CA (S&C)
  • Fuel King LLC, Rock Hill, SC (S&C)
  • M&M Services, LLC, Medford, OR (S&C)
  • Pedro J. Esteves Inc., Caguas, Puerto Rico (S&C)
  • Southern Petroleum Maintenance, LLC, Arab, AL (S&C)
  • Ricardo Leyva, OXXOGAS – Gas Station, Monterrey, Mexico (O&E)
  • Paul Stewart, Kroger Company, Memphis, TN (O&E)
  • Damon Wright, QuikTrip Corporation, Tulsa, OK (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.