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Dear PEI Member:

• How's your service dispatching? Is it efficient? Do you ask the right questions when the service call is received? Does your on-call system work as well as it can?
• Is your service vehicle fleet well-suited for what you do? Do you handle vehicle security well? Are you able to get all the tools you need on the truck?
• Do your incentives work for your top-paid service technicians? Are you happy with your evaluation methods? Do your evaluation methods increase technician productivity?
• Are you happy with the technology you are using in your service department? Do you have same-day billing and daily inventory tracking? Can you track repair history by site, equipment and tech?
• Do you follow the best industry practices when you estimate a job? Do you have appropriate estimating/job costing software?
• Are your standard forms for change orders useful? Are you pleased with the procedures your company uses to address change orders with customers?
• Are you able to keep and report profits by job?
• Are your contracts with customers and subcontractors as foolproof as possible?
• Is your current GPS system reliable, interactive, state-of-the-art, and accepted by your employees?
• Do your service, sales and construction departments work harmoniously to maximize profits and minimize conflict?
• Does your company keep its employees happy and loyal? Do you avoid burning out your service techs?
• Do you do a great job defining the cost of training your employees to your customers and manufacturers?

If you answered each of those questions in an affirmative manner, your managers seem to have things well under control and life should be good. If, however, the questions elicited some "Nos" or "Don't I wish", you should give serious consideration to having someone from your company attend PEI's Service & Construction Managers Conference April 26-28 in St. Louis. With over 100 people already registered, we only have room for about 35 more. Registration deadline is April 13, 2007. For complete information, visit our web site. Housing deadline has been extended until April 1. Click here to reserve a room.

NESCAUM/EPA STAGE II VAPOR RECOVERY MEETING MAY 1
The Northeast States for Coordinated Air Use Management (NESCAUM) and the U.S. Environmental Protection Agency (EPA) have announced a meeting to discuss Stage II vapor recovery system issues on May 1, 2007, at the Radisson Manchester in Manchester, New Hampshire. Topics include presentations on EPA's vapor recovery and dripless nozzle studies, widespread use analysis, ORVR incompatibility, and issues relating to the transition from a Stage II to an ORVR program, which includes proper removal of Stage II vapor recovery equipment. Roundtable discussions will be held on each of the topics and industry input is specifically sought. If you are interested in participating in this meeting, have questions, or would like to speak at the meeting, contact Lisa Rector at (802) 899-5306 or lrector@nescaum.org. Meeting space is limited, so don't delay in responding.

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CALIFORNIA MARINA FUELING PROJECT REPORT
The California State Water Resources Control Board's Marina Fueling Facility (MFF) Project included a statewide study to evaluate the status of MFFs. The major finding of the research was marina fueling systems in California are not designed, constructed, or operated to prevent fuel releases. The full 24-page report is available at www.pei.org/frd. It was also determined that existing laws and regulations are inconsistent across regulatory programs and in many cases no requirements exist at all. The State Water Board staff recommends the following steps be taken to protect coastal and inland waters from fuel releases:

• Upgrade or install fully double-walled systems;
• Use appropriate continuous electronic leak detection between the primary and secondary containment;
• Have all piping used in aboveground applications approved by an independent testing organization in accordance with industry standards;
• Use anti-siphon devices; and
• Have an emergency shut-off switch.

SENATORS URGE UL TO LIST E85 DISPENSERS
According to the Rapid City Journal, 14 senators have written Underwriters Laboratories urging the testing group to list E85 dispensers. "Potential vendors of E85 may have significant problems installing new equipment as a result of risk management issues associated with no UL listing," the senators wrote. One of the senators, South Dakota's John Thune, said the lack of a listing has had a "chilling effect" on the installation of new E85 dispensers and that he might consider legislative action if UL doesn't act, the paper said.

MINNESOTA TO PUSH E20
Minnesota is expected to request that EPA approve the use of E20 in vehicles. Since EPA has limited time to act on such a request under the Clean Air Act, Senator John Thune (R-SD) has written EPA to begin preparations for a review. A close review and analysis would be necessary because EPA would have to ensure that E20 does not impair the emissions control systems of vehicles before granting the waiver. Experts say regular vehicles will have to be retooled to use ethanol content beyond 10 percent per gallon of gasoline. I wonder if anybody from Minnesota or Senator Thune's office thought about the petroleum marketing equipment that would be used to store, meter and dispense the E20?

ATLANTA NACS SHOW UPDATE
With over 80 percent of the exhibit space sold in the Petroleum Equipment & Services Area of the NACS Show, booth space is selling quickly. To date we have 115 PEI members showing equipment in over 440 booths. There are only about 100 booths remaining in the Petroleum Equipment & Services Area. As before, the NACS Show is organized into six areas, with the Petroleum Equipment & Services section containing most PEI members' products. The Technology area is located adjacent to Petroleum Equipment & Services. There is a separate entrance for the Petroleum Equipment & Services area, making it easy to get in and out of the trade show. The list of exhibiting companies and a floor plan is available at www.pei.org/show/exhibits.asp.

DISPENSER COMPANY NEWS
Dresser, Inc. has reached an agreement for a consortium of financial advisors to acquire the company. The consortium is led by Riverstone Holdings LLC, and includes one of the company's current owners, First Reserve Corporation. Patrick M. Murray, Dresser's chairman and CEO, said in the company's March 12 announcement that the acquisition means "it's business as usual." The transaction is expected to close in 60 to 120 days. After the transaction closes, Murray will retire and John Ryan will become chief executive officer. Ryan was named Dresser's president and COO in December 2004.
Senator Barbara Boxer (D-CA) believes that automatic temperature compensation would benefit consumers and wants automatic temperature compensation equipment deployed in California as soon as possible.--March 14, 2007, telephone conference call with Martin Gafinowitz, president of Gilbarco Veeder-Root.

BILL WOULD MAKE EMPLOYERS PAY FOR PPE
A bill that would compel OSHA to issue a standard requiring employers to pay for personal protective equipment (PPE) was introduced March 6 in the U.S. House of Representatives. The "Protective Equipment for America's Workers Act" directs the Labor secretary to implement OSHA's proposed PPE standard within 30 days of being signed into law. OSHA first formally proposed a standard requiring employers to pay for the costs of faceshields, lanyards, lifelines, protective clothing, and other PPE in 1999.

RETAIL MARGINS DOWN
After enjoying healthy profit margins for some time, U.S. retailers and wholesalers are now suffering due to the recent sharp climb in refined product prices. Since the beginning of the year, retail margins have been trending downward as prices at the pump have lagged behind the sharp increases seen at the refinery. "February and March have wiped out all the profits of January, " Oil Price Information Service reported earlier this month. "In six short weeks--from mid-January to early March--nationwide gasoline margins have dropped 80 percent to average just a nickel per gallon nationwide."

NEW C-STORE DATA RELEASED
The number of convenience stores in the United States grew 3.2 percent over the past year and now stands at 145,119 according to the National Association of Convenience Stores (NACS). Over 79 percent of those C-stores sell gasoline. The number of one-owner stores--those that are owned and operated as a one-store business or franchise--increased to 62 percent of all stores in the United States. Five years ago the number of one-owner operators was 50 percent. 

EU SETS RENEWABLES TARGET
As part of its ongoing bid to combat climate change, the European Union (EU) adopted a wide-ranging set of binding energy and environmental measures on March 9. A 10 percent flexible target for biodiesel and bioethanol use in cars and trucks by 2020 was also set--provided it can be achieved in a cost-effective way, subject to production being sustainable.

INTERNATIONAL PETROLEUM MARKETING NOTES
Chevron Oil Products Indonesia has been granted a temporary retail license in Indonesia, marking its first move into the country's downstream retail sector. Until foreign licenses were granted at the end of 2005, state-owned Pertamina had a retail and distribution monopoly on petroleum products. Royal Dutch Shell now runs four retail outlets in Indonesia, while Malaysia's Petronas plans to open 21 gasoline stations this year. France's Total is also interested in entering the retail market, according to local reports.
LUKoil plans to finalize the purchase of 376 stations in Europe from ConocoPhillips in the second quarter of 2007. The purchase will enable the company to enter the markets of the Czech Republic, Slovakia and Belgium, and to strengthen its position in Poland, Hungary and Finland.--PetrolPlaza, March 5, 2007.

HONORS, PROMOTIONS AND ELECTIONS
Power Integrity Corporation, Greensboro, North Carolina, has named Mike Long and Associates, Inc., Mooresville, North Carolina, its 2006 Rep of the Year.
Dover Resources has promoted David Crouse to president of its OPW Fluid Transfer Group, Riverside, Missouri, effective April 1, 2007. Since 2005, Crouse has been president of OPW Fuel Management Systems, based in Chicago, Illinois.
The Kansas Petroleum Equipment Contractors Association elected the following PEI members as association officers at their meeting earlier this month: Richard D. Dixon, P. B. Hoidale Company (president); Phil Farrell, Double Check Company (vice president); David Broyles, Broyles (vice president); and Steven W. Bryant, HCS Petroleum Equipment (secretary/treasurer).
OPW Engineered Systems, Lebanon, Ohio, has appointed Jeff Reichert to the position of director, quality and productivity.
Universal Valve, Elizabeth, New Jersey, has announced that Windward Marketing Group, Inc., Overland Park, Kansas, has been named its 2006 Rep of the Year.

NORTH AMERICAN PETROLEUM MARKETING ACQUISITIONS AND DIVESTMENTS
Skinny's Inc., Abilene, Texas, has been acquired by Alon USA Energy Inc., Dallas, Texas. Skinny's owns and operates 102 Fina branded convenience stores in Central and West Texas. Alon currently operates 206 stores in West Texas and New Mexico.
The Pantry Inc., Sanford, North Carolina, has acquired 11 convenience stores in the Spartanburg, South Carolina, market from Willard Oil Co. Inc.
Alimentation Couche-Tard, Laval, Quebec, has agreed to buy 53 convenience stores in Oklahoma City, Oklahoma, from Star Fuel Marts. Thirty-nine of the locations have drive-through car washes. The company has also signed an agreement to purchase 28 stores in northwest Ohio from Sterling Stores LLC. The stores will be converted to Couche-Tard's Circle K banner.
BP will sell 83 sites in the Atlanta area that will be either reimaged or developed as ampm franchise stores with BP-branded gasoline outlets.

BRIEFLY NOTED
2007 Safe Tank Best Practices Conference will be held April 17-18, 2007, at the Houston Area Safety Council's NASA facility. Topics include tank cleaning, fall prevention, tank entry, heat stress, hot work, permitting, tank inspection, PPE, inert entry, static electricity, ventilation and environmental issues. To register, contact Alexis Orchowski at 202-682-8397 or orchowskia@api.org.
Michigan Governor Jennifer Granholm has proposed $7 million in her 2008 fiscal year budget for state biofuel infrastructure grants in the amount of $5,000 to $10,000 to meet her goal of having 1,000 biofuel dispensers in the state by the end of 2008.

MEMBERSHIP APPLICATIONS
Florida fuel cleaning service company. Clean Fuel Technologies Inc., 5447 Selton Avenue, Jacksonville, Florida 32277, has applied for affiliate division membership. Brad Runge is president of the firm, which was established in 2006. The company operates an optic fuel cleaning service serving the southeastern United States. Nominated for PEI membership by F. R. Scudder, MecoAtl, Atlanta, GA.
Florida environmental consulting firm. Enviro-Logical Solutions, Inc., 5147 West Clifton Street, Tampa, Florida 33634, has applied for affiliate division membership. Chris Troutman is fuel services manager for the firm, which was established in 1991. The company provides environmental consulting services including environmental assessment, compliance and engineering services. Nominated for PEI membership by Glen Corkill, SourceIL, Addison, IL, and Matt Cothren, UnivStruc, Plant City, FL.
Missouri environmental firm. Genesis Environmental Solutions, Inc., 929 S.E. 3rd Street, Lee's Summit, Missouri 64063, has applied for affiliate division membership. M. Shaun Thomas is president of the firm, which was established in 2004. The company installs, repairs, inspects and removes aboveground and underground storage tanks. Nominated for PEI membership by Doug Hurt, Neumayer, St. Louis, MO.
Virginia installation and service company. The Makar Company, LLC, P. O. Box 1200, Berryville, Virginia 22611, has applied for affiliate division membership. Brian C. Marcheiewski is president of the firm, which was established in 2001. Nominated for PEI membership by Galen C. Heaps, PetroSupMD, Laurel, MD.
Automation technology firm. TouchStar, 5147 South Garnett Road, Suite D, Tulsa, Oklahoma 74146, has applied for affiliate division membership. Michel Murphy is marketing director for the company, which was established in 1996. TouchStar provides comprehensive, adaptive computing and automation solutions for the petrochemical and field service industries. Nominated for PEI membership by Scott T. Ramsdell, Ramsdell, Flandreau, SD.
Texas service specialist. Kennedy Construction Company, P. O. Box 807, Grandview, Texas 76050, has applied for affiliate division membership. Karen Kennedy is president of the firm, which was established in 2001. The company provides hazardous and non-hazardous waste site operations, spill response, site clean up, remediation services and tank removals. Nominated for PEI membership by Fred Monroe, Monroe, Arlington, TX.
Fuel dispenser manufacturer. Chen Fuel Systems Ltd., Industrial Zone No. 3, P. O. Box 262, Maalot, Israel 21071, has applied for affiliate division membership. Reuben Perez is an engineer for the firm, which was established in 1999. Chen Fuel Systems manufactures fuel dispensers and central control data systems. Nominated for PEI membership by Richard Jiang, BlueSky, Wenzhou, China.

Admitted to PEI

• Optic Fuel Clean of CA, Paradise, CA (aff)
• Daiya Engineering & Construction Pte Ltd., Singapore (aff)

©2006
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.