January 21, 2016 | Vol. 66, No. 2
Dear PEI Member:
No trade association wants to talk about the companies that donít renew their membership. Itís like explaining to your board of directors why you didnít get certain jobs or why you lost money on the jobs you won. But thatís what we are going to look at so we might get a sense on how the industry fared in 2015 and what 2016 might look like.
First, a little background. PEI has 374 domestic distributor members. During the past year, only 11óless than 3 percent of PEIís domestic distributor membershipóeither proactively cancelled their membership for some reason or were dropped for nonpayment of dues.
Of the 11, three of those companies became branches of companies that acquired them, so it was expected that they would cancel. As for the other eight, two left the industry and six were dropped because we couldnít get them to respondónobody answered the phones or responded to voicemail and email. Scattered throughout the country, the eight were fairly small: three had sales in the $1 million-$3 million range while the other five had revenue under $1 million. For all we know, they might still be in business, but they are certainly not as aggressive as they once were.
Iíve been accused of being Pollyanna-ish in my views,
which tend toward the optimistic when it comes to the flexible, almost
naturally buoyant domestic petroleum equipment economy. But PEIís
distributor membership numbers have buttressed our views now for years, and
losing only 11 distributor members in one year, while regrettable, is no big
whoop. Once again, no bankruptcies. No panic-filled phone calls. No gnashing
of teeth. Just a few companies slipping away, quietly, into the night. The
industry did well in 2015, and 2016 looks to be as good if not better.
by e-mail to the editor, Robert Renkes at email@example.com
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NCWM INTERIM MEETING
Diesel filters. The current language in Handbook 130 requires a 30-micron filter on all retail diesel dispensers. A proposal to require 10-micron filters on diesel dispensers with a flow rate of 15 gallons per minute (gpm) or less will be voted on this July at the annual meeting in Denver. The new voting item differs from proposals in previous years because it exempts most northern states in the winter months. This is the language that will be considered in Denver:
Water in retail storage tanks. Handbook 130 currently allows up to 1 inch of water in tanks storing diesel, gasoline, gasoline-ether blends, and kerosene sold at retail. A proposal from regulators in Colorado would reduce the allowable amount of water in tanks storing fuels to 1/4 inch. This proposal was assigned to a focus group of industry stakeholders for further discussion. It will not be voted on in July.
CNG-Diesel Equivalent. Since the 1990s, natural gas as a motor fuel has been sold at retail using a gasoline gallon equivalent (GGE) calculation. A proposal to add a new diesel gallon equivalent (DGE), or method of sale, to the existing GGE standard used for CNG and liquefied natural gas (LNG) was not passed last year by delegates to the NCWM. An almost identical proposal will be considered again this July in Denver.
Labeling requirements for vehicle refueling. The NCWM changed portions of Handbook 130ís labeling requirements to be in accord with the Federal Trade Commissionís (FTC) final amendments to its Fuel Rating Rule. The FTC rule appeared in the January 14, 2016, Federal Register and has an effective date of July 14, 2016.
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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.