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Dear PEI Member: The years immediately
following publication of the 1988 federal underground storage tank (UST)
regulations saw the replacement of large numbers of leaking and suspect USTs
across the U.S. This development was a natural outcome of the regulations’
design, construction, installation and related standards for the nation’s
regulated tank systems, as well as the financial accountability
requirements imposed on tank owners.
As those
once-new tanks approach 30 years of service, owners, installers,
contractors, remediation firms and regulators are facing increasingly
complicated questions. Are these now-aging tanks still sufficiently
protective of human life and the environment? Are they insurable? What, if
anything, do manufacturers’ warranties suggest about the tanks’ near- and
long-term integrity?
A recent
study from the Missouri Petroleum Storage Tank Insurance Fund (PSTIF)
illustrates one state’s attempts to understand and address today’s aging
USTs.
The Missouri
General Assembly established the PSTIF in 1989 to help the state’s tank
owners meet federal and state financial responsibility requirements. In
1992, the PSTIF began offering tank owners insurance coverage for the costs
associated with UST leaks and spills.
To help
legislators gauge the ongoing need for the program, state law requires
that the PSTIF report every two years on the availability and affordability
of commercial insurance as an alternative for tank owners to meet their
financial responsibility obligations.
The most
recent report was released by PSTIF on Jan. 23. The 224-page study reveals
that as of June 30, 2017, 50.6 percent (3,406) of the 6,731 USTs insured by
the PSTIF are 25 or more years old or of unknown age. The aboveground
storage tank (AST) population is only slightly younger: 42.4 percent (1,342)
of the 3,162 PSTIF-covered ASTs are 25 or more years old or of unknown age.
Commercial insurers participating in the
2018 study reported they are willing to cover older tanks; however, before
doing so, many providers undertake site-specific analyses to help quantify
their risks. These steps often include: |
Missouri Tank Insurance Study
Purchasing & Inventory Conference Registration Opens
ASTSWMO Corrosion Observation Tool
Early Bird Ends Soon for PEI Women Conference
Biodiesel Tax Credit Restored
Comments on RP200 and RP600 Close March 9
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
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- Physical inspection of the tank
- Sophisticated tank integrity tests
- Environmental site assessments
- Review of claims and remediation histories.
Based on
these evaluations, the insurers decide whether and on what terms they will
insure the tank. When coverage is offered, commercial insurance policies for
older tanks often carry higher premiums, higher deductibles or both. In some
cases, the insurer will condition coverage on the tank owner’s agreement to
undertake maintenance, repair or remediation activities.
Taking all of these findings together, the
study’s authors reach two basic conclusions:
- Commercial insurance likely would be available for all
tank owners and operators in the state.
- That insurance, however, might not be affordable for
older tank systems, particularly those with tanks that are 25 or more
years old.
Missouri’s
conclusions might not be mirrored in every state. But the PSTIF is asking
the questions every state will soon have to answer.
REGISTRATION OPENS FOR PEI PURCHASING
AND INVENTORY CONFERENCE
The
2018 PEI Purchasing & Inventory Managers Conference will offer multiple
networking and learning opportunities June 7-9, at the Doubletree by Hilton
Orlando at Seaworld in Orlando, Florida. During the two-day conference,
Jason Bader, president of The Distribution Team, will present three general
sessions:
- “Turning Buyers Into Investors”
- “Finding the Balance: Inventory Turns and Customer
Service”
- “Gross Sales Is for Vanity; Profit Is for Sanity”
Conference participants also will
participate in roundtable discussions on topics of special interest to
purchasing and inventory professionals, including:
- Compensation plans
- Cores and warranty management
- Customer freight policies
- Cycle counts
- Inventory control with bar codes
- Service management software.
Confirmed
conference sponsors are Cim-Tek Filtration; Davisware Inc.; ESCO Services
Inc.; Freedom Electronics Inc.; Husky Corp.; Morrison Bros. Co.; Performance
Ink Inc.; PMP Corp.; RDM Industrial Electronics; and Universal Valve Co. If
your company would like to sponsor this event, contact Bob Young at
byoung@pei.org or 918-236-3966
Early bird
registration is $295 for PEI members ($545 for nonmembers). To learn more,
register and book your hotel room,
click here.
API TO REVISE COLOR CODING SYSTEM AT
FUELING FACILITIES
The American Petroleum Institute (API) is seeking
volunteers to serve on the Document Group charged with revising API
Recommended Practice 1637, Using the API Color-Symbol System to Mark
Equipment and Vehicles for Product Identification at Gasoline Dispensing
Facilities and Distribution Terminals. Most, if not all, of the work will
be conducted by phone and web conference. To participate in the Document
Group, applicants must volunteer by March 5. More details and a short
application form are available
here.
ASTSWMO RELEASES CORROSION OBSERVATION
TOOL
The Association of State and Territorial Solid
Waste Management Officials (ASTSWMO) released a tool for describing and
reporting incidents of UST corrosion. Created by ASTSWMO’s Emerging Fuels
Task Force, the Corrosion Observation Tool is a simple form
regulators, inspectors, contractors and UST owners and operators may use to submit
information on UST system corrosion observed during tank inspections,
maintenance, repairs and removals. ASTSWMO intends to use data collected
through this effort to analyze UST corrosion trends and address potential
problems before they become widespread. Interested parties can access and
submit the form
here.
EARLY BIRD ENDS MARCH 7 FOR PEI WOMEN
CONFERENCE
Money-saving early bird registration for the fourth annual
PEI Women Conference, May 2-5, at the Catamaran Resort Hotel & Spa in
San Diego, closes March 7. This year’s program includes:
- Retired U.S. Navy veteran Mary Kelly, Ph.D., speaking
on “Creating an Executive Presence: Effective Strategies for Women.”
- A panel of PEI Women members discussing challenges—and
solutions—they have found in a male-dominated industry.
- Tips from keynote speaker Kay Frances to better manage
stress in her session “Times Have Changed!”
- Personal insights from PEI President Robert Peavey and
a presentation from PEI Executive Vice President Rick Long on the future
of the petroleum equipment industry.
Early bird
registration is $495 ($595 for nonmembers). After March 7, the registration
fee increases to $595 for members ($695 for nonmembers). Nonmember
registration includes a lifetime PEI Women membership.
To register
and book hotel rooms,
click here. If you have any questions about registration or lodging,
contact Sarah West at swest@pei.org or 918-236-3968.
BIODIESEL
TAX CREDIT RESTORED
President Donald Trump signed legislation Feb. 9
retroactively extending the $1 per gallon biodiesel blenders tax credit that
had expired Dec. 31, 2016. The extension reinstates the credit for 2017 but
does not carry the credit forward into 2018 and beyond, as biodiesel
advocates had hoped. According to the U.S. Environmental Protection Agency
(EPA), 2.6 billion gallons of biodiesel were sold in the United States in
2017, with domestic production of 1.8 billion gallons during the same time
period.
COMMENTS
ON RP200 AND RP600 CLOSE MARCH 9
In January, PEI opened a comment period on two
widely used recommended practices scheduled to be revised in 2018:
PEI/RP200, Recommended Practices for Installation of Aboveground Storage
Systems for Motor Vehicle Fueling and PEI/RP600, Recommended
Practices for Overfill Prevention for Shop-Fabricated Aboveground Tanks.
If you have suggestions for improving either document, visit
www.pei.org/rp200 or
www.pei.org/rp600 and click the “Comment Now” button. To be considered
for this revision cycle, comments must be received by March 9.
IOWA
HOUSE APPROVES ANTI-SKIMMING BILL
By a 97-0 vote, the Iowa House of Representatives
on Feb. 21 approved a bill that would make it easier to prosecute
individuals who place skimmers in gasoline dispensers. During the past 10
years, only seven of 32 people charged with skimmer fraud in Iowa have been
convicted. One reason for the low conviction rate is a requirement that
prosecutors prove an intent to defraud the card issuer, user or merchant.
The House bill removes the intent requirement, making the act of placing a
skimmer in a retail fueling dispenser a crime. A similar measure has been
introduced in the Iowa Senate.
C-STORE
UPDATES
Casey’s General Stores Inc. purchased five
convenience stores from Frawley Oil Co. The stores are in Whitewater,
Delavan, Elkhorn, Fort Atkinson and Jefferson, Wisconsin. All five locations
will be rebranded as Casey’s General Stores.
RaceTrac Petroleum plans to open 30 convenience stores in the
Nashville, Tennessee, area by the end of 2023.
Total S.A. expects to open at least 80 gas stations in Mexico in
2018, with up to 250 locations by December 2019. The company launched its first Mexico
store Jan. 17.
PEI
MEMBER NEWS
Bennett Pump Co. named Michael Pomerantz director
of alternative fuel sales. Pomerantz will lead sales of Bennett dispensing
products for clean fuels, including hydrogen, compressed natural gas and
liquefied natural gas. Pomerantz previously worked for WEH Technologies and
CNG Cylinders International.
Mark VII Equipment Inc. appointed Wash-N-Shine Car Wash Systems to
sell and service Mark VII products in Kentucky, eastern Indiana and
southwestern Ohio.
Petro Towery Inc. purchased a majority of the assets of Somerset,
Kentucky-based Ross Petroleum Services. Chad Ross, the founder of Ross
Petroleum Services, will remain as a sales associate for Petro Towery in
southern Kentucky and northern Tennessee.
SloanLED will acquire Litecorr, a developer and turnkey solutions
provider of LED lighting, video screens and point-of-sale products for use
in a variety of applications.
Tuthill Transfer Systems named Steven E. Westfall president. Since
2013, Westfall has been president of Tuthill Vacuum & Blower Systems, where
he was instrumental in improving that unit’s operational efficiencies,
growing revenues and earnings, and increasing market share. Westfall earned
his bachelor’s and MBA degrees from Pittsburg State University.
MEMBERSHIP APPLICATIONS
Mississippi distribution company. Pickett
Equipment Company, Inc., 8464 Summit Cove, Olive Branch, MS 38654 has
applied for membership in the distributor division of PEI. William Bailey
Everett, Jr. is president of the company, which was established in 1968. The
firm has been a distributor of fueling products for more than 30 years.
Sponsored for PEI membership by Brad Baker, Husky Corp., Pacific, Missouri.
www.epickett.com
Puerto
Rican environmental company. GP2 Environmental
Inc., Urb Campo Lago Calle Palmas A11, Cidra, Puerto Rico 00739, has applied
for service and construction division membership. Javier Rivera Rodriguez is
owner of the firm, which was established in 2011. GP2 Environmental Inc.
performs environmental testing and sampling and provides drilling and
permitting services. Sponsored for PEI membership by Gabe Messerly,
Vaporless, Prescott Valley, Arizona.
Pennsylvania software company. AssetWorks LLC,
998 Old Eagle School Road, Ste 1215, Wayne, PA 19087, has applied for
affiliate division membership. Chris Bassett is distributor sales manager
for the firm, which was established in 1978. AssetWorks LLC focuses on
automated fuel management software for commercial and private fleets.
Sponsored for PEI membership by J. Stephen Hieber, PWI, Inc., New Oxford,
Pennsylvania.
www.assetworks.com
ADMITTED
TO PEI
- Wenzhou Jiahao Petroleum Machinery Co. Ltd, Wenzhou,
Zhejiang, China (manf)
- Texas Engineering and Consulting Systems Service,
Dallas, Texas, (aff)
- Heidar Teimouri, Pars Oil and Gas Company, Bushehr,
Iran (O&E)
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