February 9, 2018 | Vol. 68, No. 3

respond | preferences | login | unsubscribe

Dear PEI Member:

The National Conference on Weights and Measures (NCWM) held its 2018 interim (nonvoting) meeting Jan. 21 – 24 in St. Pete Beach, Florida. Several issues of importance to PEI members were on the agenda.

Credit card skimmers took center stage at the meeting, with Florida enforcement officials leading technical presentations and conducting a “skimmer field trip” to educate attendees on the growing danger these devices present to retailers and consumers alike.

The statistics in Florida—which is widely regarded as ground zero for skimmer fraud—are staggering. In 2017, inspectors located and removed 654 skimmers in the Sunshine State. According to the National Crime Victimization Survey, an average skimmer captures 100 credit card numbers and causes a loss of $1,000 on each card. If these estimates are accurate, skimmer fraud in Florida topped $65 million in 2017.

The sophistication of today’s skimmers is only increasing the danger. Cellular-enabled skimmers now capture and transmit credit card data in real time. Once the device is in place, the thieves no longer have to return to the site to harvest the data. At the interim meeting, Florida regulators introduced a proposal to require additional safeguards against unauthorized dispenser access, thereby making it more difficult for the bad guys to install skimmers. The proposal was referred to committee for further development.

Two proposals discussed in St. Pete Beach appear headed to a vote at this summer’s annual NCWM meeting.

One is designed to clarify E15 dispenser labeling requirements. The cause of the confusion? Federal Trade Commission (FTC) guidelines consider E15 a flex fuel, while the U.S. Environmental Protection Agency (EPA) classifies the blend as gasoline. NCWM delegates will seek to resolve the conflict this summer.

NCWM Interim Meeting Report

Ethanol Passes the Blend Wall

Fewer C-Stores Selling Fuel

FPMA Reorganizes and Joins PMAA

Respond to this Newsletter

by e-mail to the editor, Rick Long at rlong@pei.org

or join the discussion in the Petroleum Equipment Forum

Also likely to be voted on is a proposal to require that every retail fuel receipt identify the dispenser used for the transaction in addition to the price per gallon and number of gallons dispensed. This change would help weights and measures officials more easily check the site’s payment systems. Fuel customers also would be able to quickly confirm the accuracy of their receipts.

Another proposal to lower the maximum allowable water level in underground storage tanks (USTs) from 1 inch to 0.25 inch was removed from the docket and is unlikely to make a return anytime soon. Although reducing water in USTs is a worthy goal, three offsetting concerns won the day in St. Pete Beach:

The costs for retailers to comply with the stricter standard;
Questions about whether today’s technologies can make such a precise measurement;
Doubts that reducing the water level will substantially decrease microbial contamination.

The 103rd annual NCWM meeting will be held July 15 - 19 in Tulsa, Oklahoma. If you are planning to attend, be sure to drop by PEI’s headquarters to say hello.

ETHANOL EXCEEDS BLEND WALL IN MOST OF THE U.S.
Data released by the U.S. Energy Information Administration (EIA) on Feb. 1 shows that ethanol in the nation’s transportation fuel supply surpassed the hypothetical 10 percent blend wall in 2016. The 10.02 percent nationwide average for the year compares to 9.91 percent in 2015. Minnesota, at 12.4 percent, reported the highest ethanol percentage. Iowa was second at 11.4 percent. Texas, at 10.4 percent, passed the blend wall for the first time. In total, 30 states and the District of Columbia reported ethanol content greater than 10 percent.

FEWER C-STORES ARE SELLING FUEL
The latest NACS/Nielsen Convenience Industry Store Count shows a slight increase in the number of U.S. convenience stores, but a slight decrease in locations selling motor fuel. According to the survey, a record 154,958 c-stores were in operation at the end of 2017. That’s up 0.3 percent (423 stores) from the 2016 totals. However, the number of locations selling fuel dropped by 1.0 percent to 122,552. The study attributes the decrease to two emerging trends: a greater number of retailers focusing on in-store foodservice and an increase in urban, walk-up stores.

FLORIDA PETROLEUM MARKETERS ASS’N JOINS PMAA
The Florida Petroleum Marketers Association (FPMA), which disbanded in 2014 after more than 70 years of operation, has been reestablished. On Jan. 29, the Petroleum Marketers Association of America (PMAA) accepted FPMA as a regular state association member. Ned Bowman is the new executive director of FPMA. For more, see www.fpma.org.

C-STORE UPDATES
7-Eleven Inc. completed an acquisition of 1,030 Sunoco LP convenience stores in 17 states. The $3.3 billion transaction was finalized after the parties agreed to address Federal Trade Commission (FTC) antitrust objections. Under the terms of the final agreement, 7-Eleven will sell 26 of its retail locations to Sunoco, and Sunoco will keep 33 stores it had intended to sell to 7-Eleven.
Enmarket is purchasing 34 E-Z Shop stores in South Carolina from Brabham Oil Co. Inc. The acquisition will increase the company’s total store count to 122.
ExtraMile Convenience Stores announced plans to double its nearly 800 retail locations in the western United States by 2027.
The Kroger Co. agreed to sell 762 c-stores in 18 states to EG Group, a UK-based convenience retailer, for $2.15 billion. The stores operate under several different names, including Kwik Shop, Loaf 'N Jug, Tom Thumb, Turkey Hill and Quik Stop.
McDougall Energy Inc. signed an agreement to open 20 Circle K franchises in Ontario, Canada over the next five years.
Motiva Enterprises LLC intends to add 250 new 76-branded c-stores during 2018, with a particular focus on Alabama, Louisiana, Mississippi, Tennessee, the Carolinas and Florida.

PEI MEMBER NEWS
Bennett Pump Company appointed Spencer Hines president, following the retirement of Tom Thompson. For the past four years, Hines has been vice president of Bennett’s parent company, Hines Corporation. From 2010 to 2014, Hines served Bennett in several capacities, including vice president of operations.
Hose Master named Tim Quarry regional sales manager for the west coast, a territory that includes California, Nevada, Arizona, Utah, New Mexico and Hawaii. The company also appointed Caliber Professional Sales Service as its manufacturer’s representative in New Mexico, Texas, Oklahoma, Arkansas and Louisiana.

DEATHS
Orville Kubat, founder of Kubat Equipment & Service in Denver and the 1988 president of PEI, died Feb. 1 at age 95. Kubat started the company (then known as Guaranteed Pump Service) in 1949 and rebuilt in 1965 after a devastating flood completely destroyed the business’ building and inventory. Kubat retired from the industry in 1994, after selling the company to Gene and Craig Hoyer. Survivors include his wife Pat and two children, Gail Browning and Lynette Kubat.
Chester M. “Chet” Purdy died Jan. 27 at age 89. Purdy’s 44-year career in the petroleum equipment industry included sales and leadership positions with Buckeye Iron Works and EMCO Wheaton; ownership of his own distributorship, Purdy Equipment; and work as a manufacturer’s representative with JL Hansen Associates and Purdy Enterprises. He retired in 1998. Survivors include his children, Diane, Linda, Mike and Paul.

MEMBERSHIP APPLICATIONS
Florida manufacturer. Ditek Surge Protection, 1720 Starkey Road, Largo, FL 33771, has applied for manufacturer division membership. Dave Gattis is director of new product development of the firm, which was established in 1988. The company manufactures surge protection solutions for video surveillance, fire, networking, communications, intrusion detection, access control and AC power systems. The products are sold through distributors. Sponsored for PEI membership by Kelly Crellin, Brugg Pipesystems LLC, Rome, Georgia.
www.diteksurgeprotection.com

Virginia petroleum consulting firm. C2C Professional Services LLC, 1195 Cedar Gate Road, Monroe, VA 24574, has applied for affiliate division membership. Mark Opoka is president of the company, which was established in 2006. The firm ensures exacting adherence to plan specifications to allow a cleaner, more sustainable transfer of fossil fuels. Sponsored for PEI membership by Stephen Roach, Progressive Builders Inc., Greenville, South Carolina.

Georgia controls company. CD Controls LLC, 55 Gateway Drive, Lavonia, Georgia 30553 has applied for affiliate division membership. Darryl Yarbrough is vice president of business development for the firm, which was established in 2005. The company designs and manufactures integrated electrical switchgear and energy management control systems. Sponsored for PEI membership by Dave Burgoon, SloanLED, Ventura, California.
www.cdcontrols.com

Turkey petroleum market import company, Pehlivan Petrol Ekipmanlari San Ve Ticaret LTD STI, Serifali Mahallesi Mevdudi Sokak No 40/A, Umraniye, Istanbul, 34775, Turkey, has applied for affiliate division membership. Umut Pehlivan is general manager of the firm, which was established in 2008. The company produces, commercializes and imports products for the petroleum market. Sponsored for PEI membership by Wang Li, Zhejiang Jiasong Technology Co., Ltd., Wenzhou, Zhejiang, China.
www.akaryakitekipmanlari.com

Oregon construction company. Central Service Inc., 133 NE Greeley, Bend, OR 97701, has applied for service and construction division membership. Lee J. Bennett is owner of the firm, which was established in 2012. The company provides construction and related services for retail and commercial fueling facilities. Sponsored for PEI membership by Ken Neeley, ESCO Services Inc., Tampa, Florida.
www.centralserviceinc.com

Delaware installation firm. Delmarva Petroleum Service LLC, 9483 Clendaniel Pond Road, Lincoln, DE 19960, has applied for service and construction division membership. Travis Walls is managing member of the firm, which was established in 1999. Delmarva Petroleum Service LLC specializes in installations, retrofits and removal of UST and AST systems. Sponsored for PEI membership by Glen Corkill, Source North America Corp., Addison, Illinois.

Georgia service company. Fuel Quality Solutions, P.O. Box 1867, Cleveland, GA 30528, has applied for service and construction division membership. Charles Perry is owner of the firm, which was established in 2001. Fuel Quality Solutions provides ATG installations, tank and equipment testing and related services. Sponsored for PEI membership by Ed Kubinsky, Crompco, Plymouth Meeting, Pennsylvania.
www.fuelqualitysolutions.com

Washington service contractor. Grand Ronde Petroleum Service, LLC, 2839 W. Kennewick Ave. #547, Kennewick, WA 99336, has applied for service and construction division membership. Gary R. Jones is owner of the company, which was established in 2011. Grand Ronde Petroleum Service LLC is a service contractor operating in southeastern Washington and northeastern Oregon. Sponsored for PEI membership by Bob Mathews, Northwest Pump & Equipment Co., Portland, Oregon.

California service and installation company. In Compliance Services LLC, 7255 Piper Road, Bethel Island, CA 94511, has applied for service and construction division membership. Lucas Jones is president of the firm, which was established in 2013. The company designs, installs, tests, repairs and maintains UST & AST fuel systems and PLC, and provides custom fuel system integrations. Sponsored for PEI membership by Eric Hick, CGRS Inc., Fort Collins, Colorado.
www.incomplianceservices.com

Texas installation contractor. Mid Valley Contracting Co., 701 N. Iowa Ave., Weslaco, TX 78596, has applied for service and construction division membership. Virgilio Beltran Jr. is owner of the firm, which was established in 1988. The company is a UST system contractor. Sponsored for PEI membership by Domingo Perez, South Texas Pump Inc., Weslaco, Texas.

Texas environmental technology firm. NanoVapor Inc., 2408 Timberloch Place, Suite B1, The Woodlands, Texas 77380, has applied for service and construction division membership. Rob Krotee is president of the firm, which was established in 2010. NanoVapor provides technologies and services that reduce volatile organic compounds in the energy and aviation industries. Sponsored for PEI membership by Robert Hayes, OPW Fuel Management Systems, Hodgkins, Illinois.
www.nanovapor.com

Kentucky service company. River Cities Builders Inc., 175 Sandy Cove, Greenup, KY 41144, has applied for service and construction division membership. Greg Logan is owner of the firm, which was established in 2012. River Cities Builders Inc. provides installation, service, maintenance and tank removal services for convenience stations. The company also offers building, re-imaging and remodeling services. Sponsored for PEI membership by David Spochart, Bolger Brothers Inc., Altoona, Pennsylvania.
www.rivercitiesbuildersinc.com

New Jersey construction and remediation firm. Salomone Bros. Inc., 17 Demarest Drive, Wayne, NJ 07470, has applied for service and construction division membership. John Lynch is director of the firm, which was established in 1976. Salomone Bros offers fuel facility construction, general contracting, demolition, utility improvements, well drilling, dewatering and comprehensive environmental/remediation services. Sponsored for PEI membership by John Nolan, John W. Kennedy Co., East Providence, Rhode Island.
www.salomone.com

ADMITTED TO PEI

Jeff Strauss, Sunoco Inc., Newton Square, PA (O&E)

Manage Your Subscription

This newsletter is a member benefit of the Petroleum Equipment Institute intended for *|FNAME|* *|LNAME|*. If you no longer wish to receive the TulsaLetter you can unsubscribe from this list.

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.