Tulsaletter
September 9, 2013 | Vol. 63, No. 18

respond | preferences | login | unsubscribe

Dear PEI Member:

How much does it cost to convert a station dispensing E10 to one that dispenses E15? That and nearly a dozen other questions regarding the cost of E15 equipment were posed to PEI last month by the U.S. Department of Agriculture (USDA). We researched that topic over the past three weeks and provided our answers to USDA last Friday.

The task was not easy. To begin with, the information sought by USDA is not something most PEI members have at their fingertips considering that only about 30 stations in the United States―primarily in the corn belt―currently market E15. And accurate national estimates are even tougher to come by since each station is different in terms of physical location, size, existing equipment, and state and local regulations.

PEI obtained the numbers shown in our September 6 letter to USDA by asking a representative sample of PEI distributors/contractors to provide estimates for the different scenarios posed by USDA. Those distributor/contractors contributing to the effort were asked not to specify certain types and brands of tanks and piping, automatic tank gauges, dispensers, and hanging hardware. They were directed to figure in their own profit margins and to assume the work was to be done within 10 miles of their offices. The distributors/contractors were also requested to provide figures for the specific scenarios written by USDA and not to provide other options or upgrades that might make more sense to them. Finally, the PEI members that provided us pricing information were asked not to factor in costs that would not normally know, like lost profits per day for the tank owner while the work was being done.

The estimators at the participating companies worked long and hard―some over the Labor Day holiday―without compensation and attribution. We promised that they would not be identified and will honor that commitment by not naming them. But to each of you who helped USDA with this project, we offer our thanks.

PETROLEUM MARKETER NEWS
Susser Holdings Corporation has completed the acquisition of Gainesville Fuels Inc., a wholesale fuel and lubricants distribution business selling approximately 60 million gallons of diesel fuel annually to oil and gas producers in northern Texas and southern Oklahoma.
Kwik Trip Inc., La Crosse, Wisconsin, celebrated the opening of its 15th compressed natural gas (CNG) station on August 28 in Janesville, Wisconsin. The company plans to add an additional 10 stations before the end of the year.
PAPCO Inc., Virginia Beach, Virginia, has acquired 24 gasoline stations and their supply contracts from SMO Inc.
South Florida Commercial Properties LLC, an affiliate of Marvin Hewitt Enterprises, has acquired 20 Chevron stations in south Florida.
Shell Oil Co. is being sued by the State of New Hampshire for $2.4 million for receiving cleanup funds from the state's Oil Discharge & Disposal Cleanup Fund for which Shell allegedly should have been financially responsible under New Hampshire state law.

BIODIESEL NOTES
Indonesia plans to increase the mandatory blending requirements for domestically produced biodiesel this month. The government will require the blending of 10 percent biodiesel into diesel fuel, up from the existing mandate of 2 percent for non-subsidized consumption and 7.5 percent for subsidized usage.
New York City Mayor Michael Bloomberg signed a bill into law last week that requires the city fleet to use a B5 biodiesel blend beginning July 1, 2014. Beginning July 1, 2016, the city fleet must use a B20 blend from April to November. The city will also launch a pilot program prior to December 1, 2016, to study year-round usage of B20 with no fewer than 5 percent of the city fleet.

PEI Responds to USDA's Request for E15 Equipment Cost Estimates

Petroleum Marketing Briefs

Biodiesel

Jean Upton Passes Away

PEI and Industry News »

Respond to this Newsletter

by e-mail to the editor, Robert Renkes at rrenkes@pei.org

or join the discussion in the Petroleum Equipment Forum

to unsubscribe or change preferences see below.

PEI 2014 CONVENTION DATES: OCTOBER 7-10
The 2014 PEI Convention at the NACS Show will be held October 7-10 in Las Vegas. The original dates were October 5-8, but member feedback indicating a preference for a mid-week show caused NACS and PEI to adjust the future show dates where we could.

DEATHS
Jean Upton, the wife of PEI's former executive vice president and general counsel Howard B. Upton, Jr., died in Bethlehem, Pennsylvania, following a stroke. She was 89. Jean and Howard met in Washington, D.C., while Howard wrote articles and speeches for Secretary of the Navy James Forrestal. They were married 64 years. Jean moved from Tulsa to be close to family in Bethleham after Howard's death in 2009. Survivors include three children, Pam Brown and husband Greg, Irving, Texas; Barbara Upton and husband Jack Wright, Easton, Pennsylvania; and Brian Upton and wife Elizabeth, Los Angeles, California; four grandchildren, Upton Siddons, Jeffrey Siddons, Sam Upton and Rose Upton; and a great-grandson, Upton Siddons, Jr. Jean was preceded in death by a daughter and former colleague of ours at PEI, Marti Siddons.

MEMBERSHIP APPLICATIONS
Valve manufacturer. Zhejiang Jialong Mechanical Equipment Co., Ltd., Tangtou Ind. Zone, Oubei Town, Yongjia County, Wenzhou City, Zhejiang, China 325102, has applied for affiliate division membership in PEI. Jason Ye is international account manager for the firm, which was established in 2001. The company manufactures and markets adaptor valves, vent valves, quick-connect couplers and bottom-loading systems. Sponsored for PEI membership by Will Wang, ZLanfeng, Wenzhou, Zhejiang, China. www.jlme.cn

ADMITTED TO PEI

Importaciones y Equipos Villavicencio, Villavicencio, Meta, Colombia (S&C)
Cesar Menchaca Arizpe, Ipiranga, Durango, Mexico (O&E)
Steve Callahan, The Kroger Co., Denver, CO (O&E)

Manage Your Subscription

This newsletter is a member benefit of the Petroleum Equipment Institute intended for %full_individual_name%. To unsubscribe by email click here or manage all your newsletter subscriptions online at www.pei.org/membersonly.

Do not reply to this message.
This newsletter is sent from an unattended mailbox.
To respond to this newsletter use these options.

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.