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Dear PEI Member:

We asked about 30 distributors over the past two weeks to rate current business conditions for their companies. On a scale of 1 to 10, with "1" being the poorest, "5" average, and "10" the best year ever, the average rating for current business was a 7.

Regulatory compliance equipment and construction/service work was cited as the primary business driver by 50 percent of those polled. Basic service work and equipment/construction of "new fuel" facilities ran a distant second and third, respectively. 

Responses varied widely when our distributors were asked about the one issue that keeps them up at night. Dealing with single-station retail owners, coping with increasing costs (fuel, labor, insurance), finding good employees, collecting receivables, and drumming up retail petroleum construction projects were mentioned most often. It was our sense that the retail side is hurting more as the price at the pump increases. State and local governments have pulled some projects as fuel costs eat into available money. Members tell us that the federal government is not experiencing the same financial pressures and continues to spend money on refueling systems. Commercial and industrial accounts are still going OK.

I was fortunate last week to participate in a small meeting with Dr. Edward P. Lazear, chairman of the Council of Economic Advisers. He characterized the economy as "flat, bruised (not broken), with unimpressive, slow growth." Citing government figures showing two straight quarters of annualized gross domestic product of 0.6 percent, he said the country is not in a recession and looks for "a solid third quarter, unless something unexpected or unanticipated happens." We hope he's right.

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API TO REVISE RP 1626/SEEKS COMMITTEE MEMBERS
API is beginning the process of revising API Recommended Practice 1626, Storing and Handling of Ethanol and Gasoline-Ethanol Blends at Distribution Terminals and Service Stations. This document, originally written in 1985 and reaffirmed in 2000, will reflect current fuel formulations and equipment technology by adding to the information currently in the recommended practice as well as adding new topics.

Because PEI members have expertise pertinent to RP 1626, API is interested in two or three individuals from the PEI membership to serve on the API committee responsible for the document. Interested parties should write Bob Renkes at rrenkes@pei.org with a brief sentence or two about their experience on the subject by May 27. We will forward that information on to API who will make the final decision. Note: Since API had already developed a standard on this subject and indicated at the beginning of the year that they were going to revise it, the PEI Board of Directors decided against PEI developing a standard of our own. In other words, this API recommended practice will be the only document to cover the storage and handling of ethanol for the foreseeable future.

GUARDIAN SELLS SOUTH CAROLINA BRANCH TO JONES & FRANK
Guardian Fueling Technologies, Jacksonville, Florida, has sold the assets of its branch office in Columbia, South Carolina, to Jones & Frank Corporation, headquartered in Norfolk, Virginia. Guardian will continue to operate its current five branch offices throughout Florida and will soon be announcing the opening of a sixth branch office in the Florida Panhandle.

PETROLEUM MARKETING NOTES
Kum & Go LLC, West Des Moines, Iowa, has announced it will sell 21 stores in 7 states via sealed-bid auction. The company is in the process of divesting itself of smaller convenience stores in non-core markets in favor of larger-format stores.
Alimentation Couche-Tard Inc., Laval, Quebec, has agreed to purchase 83 stores in the St. Louis, Missouri, and central Illinois area from Spirit Energy LLC. Couche-Tard is purchasing the sites, doing business as Convenient Food Mart, through its Mac's Convenience Stores subsidiary and will operate under the Circle K banner.
Lukoil will purchase 75 fueling stations in Bulgaria from Petrol, a Bulgarian fuel distributor, as part of the settlement of a legal dispute.
Parkland Income Fund, Red Deer, Alberta, has agreed to acquire the fuel supply and marketing business of NOCO Energy Canada for $8.5 million Canadian. The acquisition includes 56 independently owned and operated Esso (Imperial Oil), Sunoco and NOCO retail gas stations and 69 wholesale accounts outside the Greater Toronto area.
Irving Oil Limited and Alimentation Couche-Tard have expanded their existing partnership whereby 252 Irving Oil convenience stores located in Atlantic Canada and New England would be operated by Couche-Tard.
Cosan, Brazil's largest sugar and ethanol producer, has acquired Esso's network of 1,500 fueling stations in Brazil.
Nakash Enterprises, LLC, has purchased Shell's interest in 20 branded locations in the Sacramento, California, area.

APPOINTMENTS AND PROMOTIONS
JGD Associates, Inc., Avon Lake, Ohio, has hired Glenn W. McArdle, P.E., as engineering manager. He has previously held management positions in operations, engineering and construction while employed at TravelCenters of America and BP Oil Company.
Emco Wheaton Retail Corporation, Wilson, North Carolina, has appointed Doug Pliszka as regional sales manager for the Great Lakes area. He will represent the company in Michigan, Indiana, Kentucky, Ohio, West Virginia, western Pennsylvania and western New York.
Dixon Pumps, Billings, Montana, has hired Alan R. Phipps as its North American sales manager.

DEATHS
DeVan Shumway, who was editor and publisher of Oil Daily from 1978 to 1989, died last month at Johns Hopkins Hospital in Baltimore. He was 77. In 1971 he went to work for President Richard Nixon as assistant director of communications for the White House and in 1972 he became the public relations director for Nixon's reelection committee. He is survived by his wife Judy Shumway, seven children from two previous marriages, 27 grandchildren and three great-grandchildren.

MEMBERSHIP APPLICATIONS
Georgia distributor. Thompson Petroleum Services, P. O. Box 456, Byron, Georgia 31008, has applied for distributor division membership. Archie Thompson, Jr., is vice president of the firm, which was established in 2005. The company sells, installs and services retail and commercial petroleum dispensing systems and lubrication handling equipment. Thompson Petroleum Services represents Blueline, ClayBailey, CntmtSoltn, CPI, Divrsified, EmcoWheatn, FairfldInd, Federal, MetalProd, ModernWeld, PemcoFL, PtrTechnik, Pneumrcatr, PwrInteg, Riverside, ServiceWld and WesternFG. Sponsored for PEI membership by Christopher T. Brown, BrownEqpCo, Macon, GA.
Storage tank manufacturer. Rhino Tuff Tanks, LLC, 411 West Congress Street, Maple Lake, Minnesota 55358, has applied for manufacturer division membership. Jason S. Ramert is sales manager for the firm, which was established in 2007. The company manufactures stackable poly bulk liquid storage tanks which are sold through distributors. Sponsored for PEI membership by Marion L. Long, WalshLong, Naperville, IL.
California fueling facility design firm. Fuel Solutions, Inc., 12340 Santa Monica Boulevard, Suite 133, Los Angeles, California 90025, has applied for affiliate division membership. Richard Remillard is senior project engineer for the firm, which was established in 1994. The company designs fueling facilities (CNG, diesel, biodiesel, gasoline, ethanol and hydrogen) for fleets and also performs safety and condition audits of existing fueling facilities. Sponsored for PEI membership by Roy T. Lawrence, FuelSltns, Irvine, CA.
Washington manufacturers representative. MCD Reps, Inc., 2944 NW 8th Way, Camas, Washington 98607, has applied for affiliate division membership. Michael T. McDermott is president of the firm, which was established in 2007. The company represents FuelTechWA, HuskyCorp, LSI, NatlEnvir, PemcoFL, PetroClear and SquareD in California, Nevada, Idaho, Alaska, Arizona, Hawaii, Oregon, Washington and British Columbia. Sponsored for PEI membership by Gregg Miller, NWPump, Portland, OR.
Delaware engineering and construction firm. Project Growth Technologies Inc., 111 S. West Street, Suite 5, Dover, Delaware 19904, has applied for membership in the service and construction division. Thomas Wright is project manager for the firm, which was established in 2005. Project Growth Technologies is an engineering firm specializing in service and construction. Sponsored for PEI membership by Edward R. Maxwell, EastnState, Palmer, MA.
Florida service company. GasTech, Inc., 2151 Lucille Lane, Melbourne, Florida 32935, has applied for service and construction division membership. Jim Page is the president and central Florida service manager for the firm, which was established in 2005. GasTech services most dispensing systems. Sponsored for PEI membership by Martin Rak, PtrPlusFL, Deland, FL.
Montana tank cleaning and inspection company. Optic Fuel Clean of MT, LLC, 111 Saint Philip Road, Wibaux, Montana 59353, has applied for service and construction division membership. Patti Begger is an owner of the firm, which was established in 2007. The company cleans and inspects fuel in storage tanks. Nominated for PEI membership by Shelly K. Sundeng, OpticMN, Fargo, ND.

ADMITTED TO PEI

• CompX Security Products, Maudlin, SC (mfr)
• Williams & Company Consulting, Inc., Kansas City, MO (aff)
• LOC Software, Laval, Quebec (aff)

©2008
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.