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February 28, 2018 | Vol. 68, No. 4

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In This Issue

Dear PEI Member:

The years immediately following publication of the 1988 federal underground storage tank (UST) regulations saw the replacement of large numbers of leaking and suspect USTs across the U.S. This development was a natural outcome of the regulations’ design, construction, installation and related standards for the nation’s regulated tank systems, as well as the financial accountability requirements imposed on tank owners.

As those once-new tanks approach 30 years of service, owners, installers, contractors, remediation firms and regulators are facing increasingly complicated questions. Are these now-aging tanks still sufficiently protective of human life and the environment? Are they insurable? What, if anything, do manufacturers’ warranties suggest about the tanks’ near- and long-term integrity?

A recent study from the Missouri Petroleum Storage Tank Insurance Fund (PSTIF) illustrates one state’s attempts to understand and address today’s aging USTs.

The Missouri General Assembly established the PSTIF in 1989 to help the state’s tank owners meet federal and state financial responsibility requirements. In 1992, the PSTIF began offering tank owners insurance coverage for the costs associated with UST leaks and spills.

To help legislators gauge the ongoing need for the program, state law requires that the PSTIF report every two years on the availability and affordability of commercial insurance as an alternative for tank owners to meet their financial responsibility obligations.

The most recent report was released by PSTIF on Jan. 23. The 224-page study reveals that as of June 30, 2017, 50.6 percent (3,406) of the 6,731 USTs insured by the PSTIF are 25 or more years old or of unknown age. The aboveground storage tank (AST) population is only slightly younger: 42.4 percent (1,342) of the 3,162 PSTIF-covered ASTs are 25 or more years old or of unknown age.

Commercial insurers participating in the 2018 study reported they are willing to cover older tanks; however, before doing so, many providers undertake site-specific analyses to help quantify their risks. These steps often include:

Missouri Tank Insurance Study

Purchasing & Inventory Conference Registration Opens

ASTSWMO Corrosion Observation Tool

Early Bird Ends Soon for PEI Women Conference

Biodiesel Tax Credit Restored

Comments on RP200 and RP600 Close March 9



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  • Physical inspection of the tank
  • Sophisticated tank integrity tests
  • Environmental site assessments
  • Review of claims and remediation histories.

Based on these evaluations, the insurers decide whether and on what terms they will insure the tank. When coverage is offered, commercial insurance policies for older tanks often carry higher premiums, higher deductibles or both. In some cases, the insurer will condition coverage on the tank owner’s agreement to undertake maintenance, repair or remediation activities.

Taking all of these findings together, the study’s authors reach two basic conclusions:

  1. Commercial insurance likely would be available for all tank owners and operators in the state.
  2. That insurance, however, might not be affordable for older tank systems, particularly those with tanks that are 25 or more years old.

Missouri’s conclusions might not be mirrored in every state. But the PSTIF is asking the questions every state will soon have to answer.

The 2018 PEI Purchasing & Inventory Managers Conference will offer multiple networking and learning opportunities June 7-9, at the Doubletree by Hilton Orlando at Seaworld in Orlando, Florida. During the two-day conference, Jason Bader, president of The Distribution Team, will present three general sessions:

  • “Turning Buyers Into Investors”
  • “Finding the Balance: Inventory Turns and Customer Service”
  • “Gross Sales Is for Vanity; Profit Is for Sanity”

Conference participants also will participate in roundtable discussions on topics of special interest to purchasing and inventory professionals, including:

  • Compensation plans
  • Cores and warranty management
  • Customer freight policies
  • Cycle counts
  • Inventory control with bar codes
  • Service management software.

Confirmed conference sponsors are Cim-Tek Filtration; Davisware Inc.; ESCO Services Inc.; Freedom Electronics Inc.; Husky Corp.; Morrison Bros. Co.; Performance Ink Inc.; PMP Corp.; RDM Industrial Electronics; and Universal Valve Co. If your company would like to sponsor this event, contact Bob Young at byoung@pei.org or 918-236-3966

Early bird registration is $295 for PEI members ($545 for nonmembers). To learn more, register and book your hotel room, click here.

The American Petroleum Institute (API) is seeking volunteers to serve on the Document Group charged with revising API Recommended Practice 1637, Using the API Color-Symbol System to Mark Equipment and Vehicles for Product Identification at Gasoline Dispensing Facilities and Distribution Terminals. Most, if not all, of the work will be conducted by phone and web conference. To participate in the Document Group, applicants must volunteer by March 5. More details and a short application form are available here.

The Association of State and Territorial Solid Waste Management Officials (ASTSWMO) released a tool for describing and reporting incidents of UST corrosion. Created by ASTSWMO’s Emerging Fuels Task Force, the Corrosion Observation Tool is a simple form regulators, inspectors, contractors and UST owners and operators may use to submit information on UST system corrosion observed during tank inspections, maintenance, repairs and removals. ASTSWMO intends to use data collected through this effort to analyze UST corrosion trends and address potential problems before they become widespread. Interested parties can access and submit the form here.

Money-saving early bird registration for the fourth annual PEI Women Conference, May 2-5, at the Catamaran Resort Hotel & Spa in San Diego, closes March 7. This year’s program includes:

  • Retired U.S. Navy veteran Mary Kelly, Ph.D., speaking on “Creating an Executive Presence: Effective Strategies for Women.”
  • A panel of PEI Women members discussing challenges—and solutions—they have found in a male-dominated industry.
  • Tips from keynote speaker Kay Frances to better manage stress in her session “Times Have Changed!”
  • Personal insights from PEI President Robert Peavey and a presentation from PEI Executive Vice President Rick Long on the future of the petroleum equipment industry.

Early bird registration is $495 ($595 for nonmembers). After March 7, the registration fee increases to $595 for members ($695 for nonmembers). Nonmember registration includes a lifetime PEI Women membership.

To register and book hotel rooms, click here. If you have any questions about registration or lodging, contact Sarah West at swest@pei.org or 918-236-3968.

President Donald Trump signed legislation Feb. 9 retroactively extending the $1 per gallon biodiesel blenders tax credit that had expired Dec. 31, 2016. The extension reinstates the credit for 2017 but does not carry the credit forward into 2018 and beyond, as biodiesel advocates had hoped. According to the U.S. Environmental Protection Agency (EPA), 2.6 billion gallons of biodiesel were sold in the United States in 2017, with domestic production of 1.8 billion gallons during the same time period.

In January, PEI opened a comment period on two widely used recommended practices scheduled to be revised in 2018: PEI/RP200, Recommended Practices for Installation of Aboveground Storage Systems for Motor Vehicle Fueling and PEI/RP600, Recommended Practices for Overfill Prevention for Shop-Fabricated Aboveground Tanks. If you have suggestions for improving either document, visit www.pei.org/rp200 or www.pei.org/rp600 and click the “Comment Now” button. To be considered for this revision cycle, comments must be received by March 9.

By a 97-0 vote, the Iowa House of Representatives on Feb. 21 approved a bill that would make it easier to prosecute individuals who place skimmers in gasoline dispensers. During the past 10 years, only seven of 32 people charged with skimmer fraud in Iowa have been convicted. One reason for the low conviction rate is a requirement that prosecutors prove an intent to defraud the card issuer, user or merchant. The House bill removes the intent requirement, making the act of placing a skimmer in a retail fueling dispenser a crime. A similar measure has been introduced in the Iowa Senate.

Casey’s General Stores Inc.
purchased five convenience stores from Frawley Oil Co. The stores are in Whitewater, Delavan, Elkhorn, Fort Atkinson and Jefferson, Wisconsin. All five locations will be rebranded as Casey’s General Stores.
RaceTrac Petroleum plans to open 30 convenience stores in the Nashville, Tennessee, area by the end of 2023.
Total S.A. expects to open at least 80 gas stations in Mexico in 2018, with up to 250 locations by December 2019. The company launched its first Mexico store Jan. 17.

Bennett Pump Co.
named Michael Pomerantz director of alternative fuel sales. Pomerantz will lead sales of Bennett dispensing products for clean fuels, including hydrogen, compressed natural gas and liquefied natural gas. Pomerantz previously worked for WEH Technologies and CNG Cylinders International.
Mark VII Equipment Inc. appointed Wash-N-Shine Car Wash Systems to sell and service Mark VII products in Kentucky, eastern Indiana and southwestern Ohio.
Petro Towery Inc. purchased a majority of the assets of Somerset, Kentucky-based Ross Petroleum Services. Chad Ross, the founder of Ross Petroleum Services, will remain as a sales associate for Petro Towery in southern Kentucky and northern Tennessee.
SloanLED will acquire Litecorr, a developer and turnkey solutions provider of LED lighting, video screens and point-of-sale products for use in a variety of applications.
Tuthill Transfer Systems named Steven E. Westfall president. Since 2013, Westfall has been president of Tuthill Vacuum & Blower Systems, where he was instrumental in improving that unit’s operational efficiencies, growing revenues and earnings, and increasing market share. Westfall earned his bachelor’s and MBA degrees from Pittsburg State University.

Mississippi distribution company.
Pickett Equipment Company, Inc., 8464 Summit Cove, Olive Branch, MS 38654 has applied for membership in the distributor division of PEI. William Bailey Everett, Jr. is president of the company, which was established in 1968. The firm has been a distributor of fueling products for more than 30 years. Sponsored for PEI membership by Brad Baker, Husky Corp., Pacific, Missouri.

Puerto Rican environmental company. GP2 Environmental Inc., Urb Campo Lago Calle Palmas A11, Cidra, Puerto Rico 00739, has applied for service and construction division membership. Javier Rivera Rodriguez is owner of the firm, which was established in 2011. GP2 Environmental Inc. performs environmental testing and sampling and provides drilling and permitting services. Sponsored for PEI membership by Gabe Messerly, Vaporless, Prescott Valley, Arizona.

Pennsylvania software company. AssetWorks LLC, 998 Old Eagle School Road, Ste 1215, Wayne, PA 19087, has applied for affiliate division membership. Chris Bassett is distributor sales manager for the firm, which was established in 1978. AssetWorks LLC focuses on automated fuel management software for commercial and private fleets. Sponsored for PEI membership by J. Stephen Hieber, PWI, Inc., New Oxford, Pennsylvania.


  • Wenzhou Jiahao Petroleum Machinery Co. Ltd, Wenzhou, Zhejiang, China (manf)
  • Texas Engineering and Consulting Systems Service, Dallas, Texas, (aff)
  • Heidar Teimouri, Pars Oil and Gas Company, Bushehr, Iran (O&E)


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© 2018
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.