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March 23, 2016 | Vol. 66, No. 6

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In This Issue

Dear PEI Member:

The technical committees responsible for drafting the Code for Motor Fuel Dispensing Facilities and Repair Garages (NFPA 30A) and the Flammable and Combustible Liquids Code (NFPA 30) have issued first draft reports in response to changes suggested by the public. Both committees are now accepting comments to their draft reports through May 16, 2016. There are over 40 amendments to the codes in all, and six changes that could impact PEI members and their customers in jurisdictions that follow these codes. All six are located in NFPA 30A.

On-demand fueling services (Section 9.6) were discussed in detail in the February 3, 2016, TulsaLetter. Although the technical committee voted to allow this new practice of providing on-demand fueling services by a 20-2 vote, it’s our sense that the committee was very interested to hear more input from the regulated community on this potentially controversial topic.

Double-poppet shear valves (Section 6.3.9) would be required on all new installations in which a pressure system is utilized. The committee agreed with a public comment that a double-poppet shear valve provides an additional level of protection against fire because it retains liquid on both sides of the shear point of the valve.

The committee agreed that line leak detectors used on submersible pumps are not capable of sounding an audible or visual alarm as currently required by Section 6.4.2 of NFPA 30A. The relevant sentence of Section 6.4.2 would read as follows if the change suggested by the committee is made: “Each pump shall have installed on the discharge side a leak detection device that will provide an audible or visible indication restricts or shuts off the flow of product if the piping or a dispenser is leaking.”

Proposed Changes To Fire Code

Imperial Oil Sells Stations in Canada

GOI To Enter Mexican Market

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The technical committee determined that emergency shutoff devices need to control other systems commonly installed at fuel islands, including vacuums, windshield washing fluid dispensing systems, and compressed air supplies. The committee recommends that the following sentence in Section 6.7 of NFPA 30A be expanded to isolate that equipment: “Emergency shutoff devices or electrical disconnects shall disconnect power to all dispensing devices; to all remote pumps serving the dispensing devices; to all associated power, control, and signal circuits; and to all other electrical equipment in the hazardous (classified) locations surrounding the fuel island; and shall mechanically or electrically isolate other fluid transfer systems serving the fuel dispensing area.”

Concern was expressed to the committee that material such as wood, bagged ground cover, cartons of consumable products and other combustibles displayed near the fuel dispenser could obstruct the view of the attendant and/or consumer and would constitute a fuel load that should not be in the area of the fuel dispenser. To address these issues, the committee proposes to add a new Section governing display of materials to read: “The storage or placement for display or sale of products shall be prohibited within 20 feet of any fuel dispenser.” 

The committee recognized that the development of system components for alternative fuels like CNG, LNG, hydrogen and LP-Gas is proceeding concurrently with the development of listing standards. Accordingly, the committee proposed to change Section 12.2.3 governing those devices by requiring them to be listed or approved. This change would give the authority having jurisdiction more flexibility in evaluating the equipment involved in new installations.

To review all of the changes to the documents and/or comment on the action proposed by the committee(s) responsible for their content, refer to NFPA’s list of codes & standards and click on the appropriate document.

Imperial Oil Ltd. has reached a deal to sell 497 Esso-branded retail gasoline stations to five fuel distributors for $2.8 billion. Quebec-based Alimentation Couche-Tard Inc. will purchase 279 retail stations from Imperial in Ontario and Quebec for roughly $1.7 billion Canadian. 7-Eleven Canada Inc. will pick up 148 sites in Alberta and British Columbia. The other distributors involved in the deal include Parkland Fuel Corp. (17 sites in Saskatchewan and Manitoba), Harnois Groupe Pétrolier (36 sites in Quebec) and Wilson Fuel Co. Ltd. (17 sites in Newfoundland and Nova Scotia). Under the deal announced earlier this month, the stations would be owned and operated by distributors, while Imperial would continue to supply fuel. About two-thirds of the 1,700 Esso retail stations currently in Canada operate under a similar model.

London-based Gulf Oil International (GOI) expects to launch retail fuel franchising in northern Mexico in the next few weeks. GOI is set to become the first foreign fuel brand to enter Mexico as a result of Mexico’s liberalization of its energy industry. Beginning January 1, 2016, gasoline stations in Mexico have not had to be a franchise of state-owned Pemex. Part of the Hinduja Group, GOI owns the right to the Gulf brand for all countries except Portugal, Spain and the United States.

The fire that destroyed PEI headquarters two years ago took with it some of our newsletters (TulsaLetters) and a few PEI Directories and PEI Journals. Although we have been able to recover most of what we lost, we are still in need of the following:

  • TulsaLetters from 1987 to 2005, inclusive
  • The 1981 and 1991 editions of the Petroleum Equipment Directory
  • The 2nd and 4th quarter editions of the 2008 PEI Journal

If you have any of those issues, please contact Sondra Sutton at ssutton@pei.org or 918-236-3967.

Scully Signal Company
 has appointed Eric Kirleis as CEO. He previously was in charge of the North American Division of Gefran Company, a manufacturer of industrial sensors and controls. Robert G. Scully, who has served as president and CEO since 1964, will remain chairman of the board. Scully announced that Katrina Scully Ohl has been named executive vice president and will continue her role as a board member. Beth Bauman will be responsible for operations, and Bob McGonagle will continue as director of sales and service.  
Caliber Professional Sales Services, Sherman, Texas, announced that Brad Hitesman became a full partner with a 50 percent ownership of the company effective January 1, 2016. Brad was a founding member of Caliber, which was established in 2014.

Mike Panyard
 retired January 31 after spending 46 years in the industry—primarily with Tokheim—and the last 12 with Petroleum Parts, Inc. (PPI). Mike plans to enjoy time with his wife, three children and four grandsons, in addition to restarting his golf game.

Royal Dutch Shell Plc
 and Saudi Refining Inc., a wholly owned subsidiary of Saudi Arabian Oil Company, have signed a non-binding Letter of Intent to develop a plan that could ultimately split Motiva Enterprises’ assets between the two owners.
Star Fuel, Oklahoma City, Oklahoma, has been sold to World Fuel Services, Miami, Florida. Star Fuel’s annual sales volume is estimated at about 225 million gallons, sources said.
GPM Investments LLC and its affiliates have closed on the acquisition of 42 convenience stores with fuel and 20 dealer supply contracts in Virginia and Kentucky from Fuel USA.
7-Eleven has put 13 stations and convenience stores in New England up for sale. Twelve of the stores are located in Massachusetts and one is in New Hampshire.

Chester Cadieux
, co-founder of the Tulsa-based QuikTrip convenience store chain, died March 14 at his home in Tulsa. He was 84. Chester had a heart for people, especially those in need of vital services for their families. Although he never made a big deal of it, all you had to do was ask and he and his organization were available to help countless people when they needed it most. Chester is survived by his wife, Debbie; children, Cathy Cadieux, Chris (Keil) Cadieux, Chet (Casie) Cadieux, Carey Ward, Cheri (Michael) Steele, and Bryan Butler; 10 grandchildren and three great-grandchildren.

The application period for the 2016-2017 PEI Foundation Charles D. Kemp Scholarships will close March 31, 2016. Scholarship recipients are selected on academic achievement, character, financial need and the applicant’s intent to contribute to the future of the fuel and energy handling industry. Eligible applicants must be a dependent of a full-time employee of a PEI member company and have a pre-declared major of business, engineering, distribution studies or similar degree program. The scholarship awards are $1,000 each. All eligible applicants are invited to review the scholarship guidelines and complete an application. 

Texas manufacturers’ representative
. Five Star Marketing, 400 Industrial Boulevard, Unit 208, Mansfield, Texas 76063, has applied for affiliate division membership. Jacob Fuller is a sales representative for the company, which was established in 1970. The company covers Arkansas, Colorado, Kansas, Louisiana, New Mexico, Oklahoma and Texas. Sponsored for PEI membership by Brian Fedro, GPI, Wichita, KS.  
California testing company. Del Real Testing, 5133 W. Avenue L10, Quartz Hill, California 93536, has applied for service and construction division membership. Ricardo D. Martinez is owner of the firm, which was established in 2007. The company provides testing services to owners of aboveground and underground storage tanks. Sponsored for PEI membership by Glen Corkill, SourceIL, Addison, IL.
Georgia engineering and environmental consultant. Maxis Engineering, LLC, 501 Hickory Ridge Trail, Suite 110, Woodstock, Georgia 30188, has applied for service and construction division membership. Barry Holbert is a principal with the company, which was established in 2010. The company provides engineering, environmental and remediation services. Sponsored for PEI membership by Dennis Manders, C&MEqp, Watkinsville, GA. www.maxisengineering.com 


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© 2016
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.