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Dear PEI Member:

Business conditions are mixed. A few members are having a great year, most are doing okay, and a handful are experiencing a downturn, although thankfully no one is going broke. How companies are doing depends on the area of the country, customer and product mix, and regulations (both existing and anticipated).

Customers. For the most part, the retail fueling side is not doing well and this has hurt construction and equipment sales. Low margins (except for the last two months) and the high cost of doing business experienced by customers have put a severe crimp in ground-ups and retail equipment sales. So has the prospect of PCI compliance upgrades. The commercial, governmental and manufacturing side is doing much better. It seems like the refueling side (card-locks) of that business improves dramatically as the price of product goes up. The vehicular service part of the industry is also doing just fine. The mining industry, transit companies, military, tank trucks, hospitals, fixed-base airports, etc. are bright spots.

Service. Again, mixed. Those who say it's going gangbusters point to service of out-of-warranty equipment that should be replaced but won't be because of the costs. Companies not doing well in service--although the minority--cite an increasing number of customers doing simple repair and maintenance tasks on their own to save money.

Competition. It seems to be stronger in metropolitan areas, although most distributors doing business there seem to know what their costs are and price accordingly. We hear of less competition in the rural areas, making business in the small towns more attractive.
 

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The future. There is some uncertainty down the road, centered around both the industry and the general economy. Many will have to work harder to stay in the same competitive position as the low-hanging fruit has already been picked.

PEI OFFERS CHASE PAYMENTECH CREDIT CARD PROCESSING PROGRAM
PEI is proud to announce an alliance with Chase Paymentech to provide discounted credit card processing for our members. Since 1985, Chase has processed payments for merchants in both brick-and-mortar and cyber storefronts throughout the United States and Canada. The company processed more than $719 billion in transactions in 2007.

We believe that the program PEI has negotiated with Chase Paymentech will save the majority of our members both time and money. We have tested the Chase program with members of PEI's Board of Directors. In a side-by-side comparison with the directors' existing credit card processing programs, the Chase program would have lowered the fees of the directors by an average of 25 percent and resulted in a per-company savings of over $2,800 a year. Additional benefits include:

• No application fee, annual fee or batch fees
• Compatibility and easy integration with many point-of-sale systems and terminals
• Discounted virtual terminal access and E-Commerce solutions
• Seamless conversion to this program
• No change in banking relationship
• Quick funding (usually 24 hours)

For a no-cost, side-by-side comparison of your current processing fees to the Chase program, simply send two months of recent credit card processing statements in confidence to Craig Olson at craig.olson@paymentech.com or fax to (214) 849-4927. A Chase Paymentech representative will be in Chicago, near the PEI Registration area at this year's PEI Convention. Comments or questions about the program can be directed either to Craig at Paymentech or Chris Bouldin cbouldin@pei.org at PEI.

PLANNING COMMITTEE MEMBERS FOR PEI'S SERVICE AND CONSTRUCTION MANAGERS CONFERENCE SOUGHT
PEI will sponsor its 2009 Service and Construction Managers Conference March 19-21, 2009, at the Hyatt Regency St. Louis Riverfront Hotel (formerly the Adam's Mark) in downtown St. Louis, Missouri. Individuals interested in serving on the planning committee for the conference should contact Bob Young at PEI byoung@pei.org. The planning committee's work is handled via telephone conference call.

CONOCOPHILLIPS LEAVES RETAIL SECTOR
ConocoPhillips exited the retail market in the United States in late August, selling its nearly 600 retail outlets to PetroSun West LLC, a West Coast-based gasoline retailer and marketer. ExxonMobil, Shell and BP have either announced or are in the process of shedding retail outlets as well, choosing to focus in their wholesale distribution operations and upstream assets.

OSHA PROPOSES TO FINE EMPLOYERS FOR LACK OF PPE
Employers who fail to provide personal protective equipment and training to each employee for whom they are required would be exposed to liability on a per-employee basis, according to an Occupational Safety and Health Administration proposed rule published August 19 (73 FR 48335).
The proposal would amend OSHA's standards for construction, general industry, and maritime to clarify inconsistencies in some of these standards regarding an employer's duty to provide PPE and training.
OSHA said clarifying inconsistencies in standards would allow it to assess an appropriately high penalty in cases of flagrant violations by using its "egregious violation" or "violation-by-violation" policy. Under this policy, OSHA said it can propose penalties based on each employee exposed to a single violative condition rather than each standard violated.

BRIEFLY NOTED
Tanknology Inc., Austin, Texas, has added an international licensee in the Philippines. Tanknology Philippines Inc., based in Manila, is led by its managing director, Gary Hulse. Telephone: (632) 910-0386. Fax: (632) 635-2864. Email: ghulse@tanknology.com.au.
PetroTechnik Inc., Cresskill, New Jersey, has hired Don DeAngelo as regional sales manager. Headquartered in Dallas, DeAngelo will focus on the company's pressure grade piping products that are manufactured for use in the oil field markets.
Guardian Fueling Technologies, Ft. Lauderdale, Florida, has announced that Craig Fitzsimmons has joined the company as fueling systems specialist/sales for select accounts throughout the company.
OPW Fueling Components, Cincinnati, Ohio, has named Arthur Boroff director of vapor recovery sales. He was most recently vice president of sales and marketing for Healy Systems.

MEMBERSHIP APPLICATIONS
Mexico installation and service company. Controil, S.A. de C.V., Hierro #8, Fracc. Industrial Morelos, Ecatepec, Mexico 55329, has applied for service and construction division membership. Jorge Landin is general manager for the firm, which was established in 2001. The company sells and installs piping, manholes and vapor recovery equipment. Sponsored for PEI membership by Jose Antonio Benavento Pinero, TIPSA, San Luis Potosi, Mexico. 

ADMITTED TO PEI

• Bolduc Mechanical Services, Inc., Chester, MA (S&C)
• Genesis Contracting, Inc., Holland, OH (S&C)
• Mark Gruggett, Kroger Company, Denver, CO (O&E)
• Dale Wittlief, Delta Sonic Car Wash, Buffalo, NY (O&E)

©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.