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September 19, 2018 | Vol. 68, No. 18

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In This Issue

Dear PEI Member:

PEI staff members recently returned from the 26th National Tanks Conference & Exposition. The New England Interstate Water Pollution Control Commission (NEIWPCC) hosted the event Sept. 11-13 in Louisville, Kentucky. Federal and state regulators, manufacturers, environmental firms, fuel marketers, testing companies and industry associations attended the conference to learn what stakeholders are thinking about, what they are talking about and what may be ahead. Here are the highlights of what we heard.

Sump Testing. State regulators continue to wrestle with sump testing options. The hydrostatic testing method recommended in PEI/RP1200: Recommended Practices for the Testing and Verification of Spill, Overfill, Leak Detection and Secondary Containment Equipment at UST Facilities and endorsed by the U.S. Environmental Protection Agency (EPA) in the 2015 federal underground storage tank (UST) regulations is or will be recognized in most states. When alternative low-water-level test methods are allowed, they often are subject to requirements beyond those in the technical compendium accompanying the 2015 federal rule. New Mexico, for example, allows low-water-level testing in only limited circumstances. The PEI/RP1200 hydrostatic test must be used at the time of sump installation and on every fourth three-year inspection (i.e., every 12 years). States also are implementing penalties for owners and operators who inappropriately tamper with the sensor used in low-level sump testing.

Aging UST Systems. Regulators are growing more concerned about the risks associated with tanks that have reached the end of their 30-year warranty. Several regulators and industry professionals wanted to discuss a suggestion PEI made recently in the PEI Journal and the L.U.S.T.Line: namely, that states should work together closely to compile and aggregate data on their UST systems. Comparable data on tank age, type and the frequency and source of failures nationwide would increase the industry’s understanding of the risks associated with older tanks—and encourage better strategies for reducing those risks.

Internal Corrosion. Every regulator we spoke with reported increased internal corrosion in gasoline and diesel UST systems. One conference presenter emphasized how temperatures above 76 degrees can accelerate the bacterial growth that is behind most corrosion. Expect more studies on the correlation between temperature and corrosion.

National Tanks Conference Report

PEI Convention Registration and Education

Summertime E15 Restrictions End

Webinar on Proposed CAFE Standards

Pennsylvania Tightens Anti-Skimming Laws


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Emergency Generator Day Tanks. These tanks are gaining greater regulatory attention as their numbers increase and their risks become more apparent. In many cases, day tanks have no secondary containment, no overfill protection, are filled automatically and lack adequate venting. We expect increased state regulation of day tanks in the future, including greater reliance on the procedures in PEI/RP1400: Recommended Practices for the Design and Installation of Fueling Systems for Emergency Generators.

Recommended Practices. PEI’s recommended practices were mentioned frequently in conference education sessions. In conversations with PEI staff, attendees also offered suggestions for future recommended practices or for new content in existing PEI documents, including additional sump testing protocols; procedures for the design and installation of high-throughput facilities; incorporation of stormwater management practices into fueling facility design; and more guidance on reducing and managing water intrusion into UST systems.

Less than two weeks remain to save $150 with advance registration to the 2018 PEI Convention, Oct. 7-10 in Las Vegas. Why should you attend? One reason is the educational lineup at this year’s event. Use the guide below to plan your personalized schedule.

All About Business. Interested in strategies to build your business? Start with Herb Meyer's Kick-Off Keynote on Monday, Oct. 8, “A Global Intelligence Briefing for PEI Members” ($30 ticket required). Among his many credentials, Meyer is a recipient of the National Intelligence Distinguished Service Medal.

Next, consider these business-oriented Monday choices:

  • A look into the future of electric vehicles from John Eichberger, executive director of the Fuels Institute (Sneak peek: EVs are coming … and with them are opportunities);
  • “Why Leaders Fail and the 7 Prescriptions for Success,” a tactical session on leadership by Mary Kelly, Ph.D., US Navy (Ret); and
  • The ever-popular “Economic Update” from Brian Beaulieu, ITR Economics.

Start off Tuesday, Oct. 9, by attending the PEI Membership Breakfast and Meeting for the annual State of the Industry address, featuring insights and analysis from PEI Executive Vice President Rick Long. Then, check out two other business sessions:

  • A discussion of tangible action steps that will save you money on taxes and healthcare from Gene Marks, CPA, The Marks Group; and
  • An analysis of the future of distribution in a marketplace that now includes digital disruptors, presented by Modern Distribution Management President and COO Ian Heller on (e.g., Amazon Business).

Industry Matters. If you are more interested in the technical side of the industry, this year’s program has plenty of options for you:

  • On Monday, representatives from the EPA Office of Underground Storage Tanks (OUST), including Director Carolyn Hoskinson, will cover need-to-knows about the federal UST compliance deadline coming just days after the convention.
  • Also on Monday, a panel of industry heavy hitters will discuss fuel quality and corrosion: Scott Boorse, PEI; Jeff Dzierzanowski, Source North America; Ryan Haerer, EPA OUST; and Rebecca Monroe, GM/Top Tier Fuel.
  • On Tuesday, learn how to build a culture of safety in your organization from true safety experts: Buddy Bayliss, B C & C LLC; Blake Hess, The Oscar W. Larson Co.; Stacy Irons, United Rentals Trench Safety; Derek Rethmeier, Western Pump Inc.; and Art Sodermark, Platinum Engineering & Safety.

The Convention also offers a full track in Spanish for Latin American attendees on Monday, as well as several other sessions that will be simultaneously translated into Spanish.

Summer restrictions on the sale of E15 for non-flex fuel vehicles throughout most of the U.S. expired Sept. 15.

Warm summer temperatures cause fuels to evaporate and increase ground-level ozone. To reduce this effect, the Clean Air Act restricts summertime sales of highly volatile fuels, as measured by Reid vapor pressure (RVP). In most jurisdictions, the allowable summertime RVP for non-flex fuel vehicles is 9 psi. E15 has an RVP closer to 10 psi.

Ethanol advocacy groups are continuing their pursuit of a regulatory waiver that would allow year-round E15 sales.

The EPA has proposed substantial reductions in the federal Corporate Average Fuel Economy (CAFE) standards.

The Fuels Institute, in conjunction with Stratas Advisors, will present a free webinar on the likely implications of the proposed standards at 2 p.m. EDT, Tuesday, Sept. 25. Will consumers change their vehicle purchasing habits and fuel consumption? How will vehicle manufacturers respond? What might the proposed changes mean for your business?

Click to learn more and preregister for the webinar.

New Pennsylvania laws to deter and punish credit card skimming at gasoline dispensing facilities took effect Aug. 28.

Under previous law, prosecutors had to prove a skimming defendant’s intent to defraud. The new legislation makes the act of placing a skimming device on a fuel dispenser or ATM a crime. The state no longer has to prove intent. The law also makes possession or sale of a skimming device a crime. First-time violators will be charged with a third-degree felony. Repeat offenders will face second-degree felony charges.

PEI named Mary Ann Hill the association’s accounting and office manager. Hill comes to PEI after four years at PennWell Corp., a global publishing and events company based in Tulsa, Oklahoma. At Pennwell, Hill was the staff accountant for the company’s petroleum group. Before joining PennWell, she worked with Ducommun Inc. She has a Bachelor of Business Administration in Accounting from Northeastern State University.

At the 2018 PEI Convention, Hill will be assisting members at the PEI Registration counter. Come by to introduce yourself and say hello.

Hill may be reached at mhill@pei.org or 918-236-3967.

Richard George “Dick” Todd
, 78, died Sept. 1. For many years, Todd served as president of LeBlanc & Theriot Equipment Co. He was a native of Drumright, Oklahoma, and a veteran of the U.S. Army. Survivors include: his wife of 57 years, Will Ell Nebel Todd; daughters Katherine Todd Monjure (David) and Will Ell "Lelly" Todd Childress (Mark); and six grandchildren.

Jones & Frank named Keith Shadrick CEO, effective Oct. 1. Shadrick joined the company in 2016 as vice president of supply chain operations. In 2017, he was promoted to senior vice president of operations. Jim Bolch, who has served as CEO for the past three years, will remain with Jones & Frank as executive chairman of the board of directors.
Pope & Associates Inc. announced the retirement of Caroline Robbins, inside sales manager, after 12 years with the company. Leath Rice will assume the role of inside sales manager.
Tanknology Inc. announced the transfer of its Italian international license to Ecology System. Based in Mantova, Italy, Ecology System acquired the license from Tanknology di Olson Rodney, after Rod Olson’s retirement.

“BMW has confirmed it will drop diesel-powered cars in the U.S. after 2018.
The Germany luxury brand will instead focus on plug-in hybrid vehicles.”—GreenCarReports, Sept. 11, 2018
“India, the second most populated country in the world, has set a new focus on CNG as a viable alternative fuel for today and the future. Dharmendra Pradhan, Minister of Petroleum and Natural Gas, said that by 2030 some 10,000 CNG stations will be open in India.”—PetrolPlaza, Sept. 7, 2018
“Chinese electric carmaker Nio raised roughly $1 billion in its initial public offering Wednesday on the New York Stock Exchange. In August, Nio [NYSE: NIO] announced that it hoped to raise $1.3 billion in its initial public offering. Wednesday's launch around $6 per share fell short of that, but trading jumped Thursday and Friday well above its initial price to around $12 per share. The company planned to use the funds to develop future electric cars for the U.S. and Chinese markets and to develop self-driving software.”—GreenCarReports, Sept. 14, 2018
“Audi is looking to show electric-car shoppers they will soon have much more to choose from than Teslas. Volkswagen AG’s Audi plans to introduce 12 fully electric vehicles in its main markets by 2025 and expects these models and hybrids to account for about a third of the brand’s global deliveries, the company said Sept. 17 in a statement.”—Bloomberg Environment, Sept. 17, 2018

Uruguay engineering firm.
ISA, Boulevard España 2094, Parque Rodó, Montevideo 11200 Uruguay, has applied for affiliate division membership. Leonardo Noach is director of the company, which was established in 1991. ISA develops software for retail and other fueling facilities. Sponsored for PEI membership by Walter Dura Rey, Bilpa SA, Montevideo, Uruguay.

Wisconsin software company. MSI Data, 500 W. Brown Deer Road., Suite 200, Bayside, WI 53217, has applied for affiliate division membership. Mike Pandl is vice president of marketing for the firm, which was established in 2010. MSI Data manufactures software for managing fleet operations. Sponsored for PEI membership by Susan Burkhardt, Neumayer Equipment Co., St. Louis.


  • Clarksons, North Shore, Auckland, New Zealand (distributor)
  • Neo Bros Ventures Corp., Makati City, Metro Manila, Philippines (distributor)
  • Baker Manufacturing Co. LLC, Evansville, Wisconsin (affiliate)
  • duAlaska Inc., Anchorage, Alaska (affiliate)
  • Innovatec-IC-SpA, Santiago, Chile (affiliate)
  • PPM Consultants, Monroe, Louisiana (affiliate)
  • XpresSystems Inc., New Prague, Minnesota (affiliate)
  • Automated Fuel Technologies LLC, Garland, Texas (service & construction)
  • Oklahoma Environmental Services, Oklahoma City, Oklahoma (service & construction)
  • Patriot Petroleum Solutions, Fort Collins, Colorado (service & construction)
  • Show Me Petroleum Equipment Co., Springfield, Missouri (service & construction)


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Petroleum Equipment Institute
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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.