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September 14, 2017 | Vol. 67, No. 18

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In This Issue

Dear PEI Member:

On Aug. 31, a federal court in Texas overturned a 2016 U.S. Department of Labor (DOL) regulation that raised the overtime eligibility wage threshold for most workers from $23,660 to $47,476 (see June 1, 2016 TL). Last November, the same judge had issued a temporary injunction against the regulation, which had been scheduled to take effect Dec. 1, 2016 (see Nov. 29, 2016 TL).

According to DOL estimates, the change would have brought overtime protection to 4.2 million workers not currently eligible for overtime pay.

In his Aug. 31 summary judgment ruling, U.S. District Judge Amos Mazzant concluded that the DOL rule had given undue weight to employees’ income and not enough consideration to the employees’ duties: “Congress intended for employees who perform ‘bona fide executive, administrative or professional capacity’ duties to be exempt from overtime pay. … Nothing in [the governing law] allows the Department to make salary rather than an employee’s duties determinative of whether a ‘bona fide executive, administrative or professional capacity’ employee should be exempt from overtime pay.”

On Sept. 5, the Trump administration, as expected, notified the court that it would not appeal the ruling. However, the administration has set in motion a new rulemaking process that may well result in a more modest overtime expansion. Through Sept. 25, the DOL is accepting public comments on a wide range of factors and variables including:

  • Whether some increase in the threshold salary is warranted;
  • Whether non-discretionary bonuses and incentive payments should be included when calculating the salary level;
  • Appropriate standards for the executive, administrative and professional employee exemption;
  • Cost-of-living differentials across the United States;
  • The possibility of automatically adjusting the salary threshold by an inflation index.

Overtime Rule Overturned

PEI Foundation Hurricane Relief

Convention Session on UL Standards

ASTSWMO State Assurance Fund Survey


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Every PEI member that engages in interstate commerce or generates annual revenue greater than $500,000 is subject to federal overtime law. Because any expansion of overtime eligibility would increase members’ wage costs, we will continue to monitor and report on developments in this area.

Calls into PEI headquarters have confirmed that Hurricane Harvey and Hurricane Irma left their mark on the PEI community, with high winds and high waters damaging property, flooding homes and disrupting lives and livelihoods of individuals along the Gulf Coast, in Florida and in other locations in the Southeast.

In response to these needs, the board of governors of the PEI Foundation has authorized a hurricane relief fund for full-time employees of PEI member companies who suffered loss as a result of either storm. Here’s how you can be a part of the effort:

Donate: From now until Oct. 19, help your fellow members by making a tax-deductible gift to the PEI Foundation, a 501(c)(3) corporation. Every dollar raised will go to individuals in the PEI community who have suffered loss. PEI members have long shown themselves to be caring and generous people. This is the perfect opportunity to turn that spirit into action. For more information and to make your contribution, click here.

Apply for Aid: If you suffered at least $1,000 of unreimbursed losses from or as a result of Harvey or Irma, the PEI Foundation and your fellow members want to help. To be eligible for aid, the only requirements are that you be a full-time employee of a PEI member company and that your supervisor, a corporate officer or your company’s official PEI representative attest to your loss. Click here to complete the simple, one-page aid application.

Totals on the funds raised and the numbers of individuals helped through the PEI Foundation hurricane relief drive will be announced during the annual membership meeting at the 2017 PEI Convention in Chicago.

The Association of State and Territorial Solid Waste Management Officials (ASTSWMO), in cooperation with the Vermont Department of Environmental Conservation, has released its annual survey of state financial assurance fund programs. Downloadable data tables on the ASTSWMO site summarize the findings on state fund design characteristics, funding mechanisms, fund activities and cost control measures.

A new PEI 1-on-1 session has been added to the education lineup at the 2017 PEI Convention. “Evolving UL Standards for Sumps, Fittings, Accessories and Fiberglass Tanks” (Wed., Oct. 18 at 3:00 p.m.) will help PEI members better understand the new UL 2447 (sumps, fittings and accessories), as well as coming revisions to UL 1316 (fiberglass tanks). Five UL staff members directly involved in the development of these standards and related certifications will be on hand to explain the latest requirements and answer your questions:

  • Roland Riegel, principal engineer for flammable liquids containment products
  • Jeff Prusko and Caitlin D’Onofrio, UL and ULC standards project managers
  • Bryan Michalik, certification engineering manager for gas and oil products
  • Jerilyn Merrill, business development manager for gas and oil products

Spots are still available for the upcoming webinar on the just-released PEI/RP900-17: Recommended Practices for the Inspection and Maintenance of UST Systems. The free, one-hour presentation will summarize the key provisions of this important document, which the EPA has said may be used to comply with the periodic walkthrough requirements in the 2015 federal UST regulations. The webinar (10 a.m. CST on Sept. 19) will be presented by four members of the committee responsible for drafting PEI/RP900-17: Ryan Haerer, EPA Office of Underground Storage Tanks; David Piercey, JD2 Environmental Inc.; Ben Thomas, UST Training; and Brian Wiegert, Rounds & Associates. Learn more and register here.

The Arkansas Department of Environmental Quality (ADEQ) is seeking public input for development of a plan to cut emissions of nitrogen oxides (NOx) in Arkansas, as part of Volkswagen Automotive Group’s nationwide settlement for violations of the federal Clean Air Act. Additional goals for the plan include reduction of other pollutants, economic development and increased adoption of alternative fuel-powered vehicles in Arkansas. The request for information can be found on the ADEQ website.
New York. The New York State Department of Environmental Conservation (NYSDEC) has drafted a proposal for regulatory changes to 6 NYCRR Part 230: Gasoline Dispensing Sites and Transport Vehicles. In addition to updating various out-of-date provisions, the proposal adds new Stage I vapor recovery regulations and eliminates Stage II vapor recovery requirements in light of the advances in onboard refueling vapor recovery (ORVR). For more information on the draft plan or the schedule of public hearings, email Denise Prunier of NYSDEC at denise.prunier@dec.ny.gov.
Oklahoma. Rule changes for fuel inspection, underground storage tanks, aboveground storage tanks, the state’s indemnity fund and corrective action for releases took effect Sept. 11. Unofficial copies of the rule changes can be downloaded from the Oklahoma Corporation Commission’s website.

BJM Pumps
announced that Jay Gallagher, Atlantic regional sales manager, has retired after 15 years with the company. Steve Mosley, who has served as application engineer for the last five years, will replace Gallagher. Mosley is a graduate of the University of Hartford and holds a B.S. in civil engineering.
Dixon Pumps appointed Patrick McAndrew sales manager. McAndrew was previously vice president of sales and marketing for Container Products Corporation and national sales manager for Chemtrol.
Freedom Electronics, LLC named Bob Shepard vice president, marketing. Shepard most recently was vice president of sales and marketing for BETA Fueling. Prior to that, he spent almost 28 years at Gilbarco Veeder-Root.
Seneca Companies’ Waste Solutions division tapped Jeff Preston as operations manager for its Davenport, Iowa, branch. Preston was an outside sales representative for Waste Solutions from 2012 through 2014.
Tanknology Inc. named John Harris vice president of operations and Ric Young regional sales manager for the southeastern region. Harris is a five-year Tanknology veteran and has been in the oil and gas industry since 2008. Young is a Steel Tank Institute (STI) Certified SP001 AST Inspector and a member of STI’s Standards Committee. Both Harris and Young are based in Tanknology’s Suwanee, Georgia office.

Philip Cruzen
died September 9, 2017, at age 64. Cruzen served as president of PEI in 2000, 38 years after his father, Warren Cruzen, was PEI president. Philip began his career in 1975 as an assistant branch manager at Cruzen Equipment Company, Inc. in Memphis, Tennessee, and served as the company’s president/CEO from 1982 to 2006. Most recently, he was an institutional registered representative at Duncan-Williams, Inc.

As a boy, Cruzen earned the rank of Eagle Scout, and as an adult he was active in the Chickasaw Council. He was a member of the Memphis Rotary Club, an avid hunter and conservationist and a lifelong supporter of his college alma mater, the University of Mississippi. He also held leadership positions with the Germantown (Tennessee) Planning Commission, the Germantown Board of Zoning Appeals and the Children's Charity Initiative Committee for Carnival Memphis.

Cruzen is survived by his wife of 41 years, Kathleen Baker Cruzen; son Philip Warren Cruzen, Jr. and his wife Whitney; son Stephen Baker Cruzen and his wife Vickie; daughter Julia Cruzen Scales and her husband Mark; two grandchildren; and his sister, Betty Coe Manuel.

“The comment period on the U.S. EPA’s proposed rule to set 2018 renewable volume obligations (RVOs) under the Renewable Fuel Standard
, along with the 2019 RVO for biomass-based diesel, closed at midnight Aug. 31. More than 44,000 comments were filed on the proposal. … Under statute, the EPA is required to issue a final rule setting 2018 RVOs by Nov. 30.”—Ethanol Producer Magazine, Sept. 1, 2017
“Latin America’s biggest economy is out of recession but not out of trouble. Brazil’s economy eked out 1% growth during the first quarter of the year, after spending the past two years mired in the steepest economic slump in its history. Strong growth in Brazil would stimulate the whole region in 2018 and 2019. But political uncertainty all but ensures that growth will stay meager this year.”—The Kiplinger Letter, Sept. 1, 2017
“Chevron will open 10 Chevron-branded retail fuel stations in Northwest Mexico  before the end of this year, and up to 250 in the next three years in the states of Sonora, Sinaloa, Baja California and Baja California Sur, a company spokesman told OPIS.”—Oil Express Alert, Sept. 11, 2017
“Anglo-Dutch oil major Royal Dutch Shell opened its first gas station in Mexico on Tuesday. … Shell said in a statement it plans to open an unspecified number of additional service stations and that investment in Mexico’s fuel sector could reach about $1 billion over the next decade ‘if current market conditions are maintained.’”—Reuters, Sept. 5, 2017

Ontario distributor. Ingersoll Petroleum Services Ltd., 1245 Port Britain Road, Port Hope, Ontario L1A 3V7, has applied for affiliate division membership. Roderick Ingersoll is president of the firm, which was established in 1999. The company provides automated fuel management systems, commercial refueling equipment, pumps and dispensers. Sponsored for PEI membership by Bob Hayes, OPW-FMS, Hodgkins, Illinois.
Massachusetts fuel testing products provider. Conidia Inc., 60 State Street, Suite 700, Boston, MA 02109, has applied for affiliate division membership. Mike Devine is channel manager for North America for the firm, which was established in 2002. The company provides fuel testing products that can be used wherever fuel is manufactured, stored or dispensed. Sponsored by PEI membership by Sally Locke, Leighton, Cypress, Texas.


  • ARXO Industrial Do Brasil SA, Picarras, Brazil (mfr)
  • Van Lock Company, Inc., Cincinnati, Ohio (mfr)
  • Canary Compliance, Philadelphia, Pennsylvania (aff)
  • Synergy Environmental, Royersford, Pennsylvania (aff)
  • Bazo Construction, Dearborn, Michigan (S&C)
  • ISO Fuel Control Systems/Patco Electrical Services, Duncan, Oklahoma (S&C)


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© 2017
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. Richard C. Long, Editor. Opinions expressed are the opinions of the Editor. Basic circulation confined to PEI members.