January 7, 2019 | Vol. 69, No. 1

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Dear PEI Member:

Charlie Burns, president of Oscar W. Larson Co., Clarkston, Michigan, became the 69th president of the Petroleum Equipment Institute on Jan. 1. He succeeds Robert Peavey, president of PumpTex Inc., Beaumont, Texas. Bill Mascott, president of Mascott Equipment Co., Portland, Oregon, is PEI’s 2019 vice president.

Burns’ first action was the appointment of 224 individuals to serve on 25 PEI committees in 2019. As has been true in recent years, the number of qualified PEI members who applied for committee positions this year exceeded the number of open committee positions. PEI greatly appreciates all who offered their time and talent to serve the association.

If you are interested in serving on a PEI committee in 2020, email your committee preferences and a brief summary of your qualifications to PEI Executive Vice President Rick Long at rlong@pei.org.

You can find a complete list of the 2019 committees and committee members here.

REGISTER NOW FOR SERVICE & CONSTRUCTION MANAGERS CONFERENCE
Early bird registration for the 2019 PEI Service & Construction Managers Conference ends Jan. 14. The March 14-16 event in Louisville, Kentucky, features roundtable discussions, networking and three general sessions presented by Randy Disharoon: “Creating the Winning Culture,” “Building the Dream Team” and “Leaving a Lasting Legacy.” Disharoon, who has an extensive background in distribution and manufacturing, was certified as a nuclear engineer by age 23 and was leading training courses for Naval officers by age 25.

Early bird registration is $315 for PEI members and $585 for nonmembers. Beginning Jan. 15, rates increase to $415 for PEI members and $745 for nonmembers.

Conference sponsors are Cim-Tek Filtration, Davisware, Esco Manufacturing Inc., Fatboy Electric, Franklin Fueling Systems, Freedom Electronics LLC, Husky Corp., ICON Containment Solutions, Morrison Bros. Co., MSI Data, Performance Ink, PMP Corp., RDM Industrial Electronics Inc., United Rentals Trench Safety and Universal Valve Co.

PEI Committee Appointments

Service & Construction Managers Conference

Phillips 66, Honda Partner on Payment

YE Conference Early Bird Deadline

Top OSHA Violations

Amazon to Sell Gas?

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

For more information and to register, click here.

PHILLIPS 66, HONDA PARTNER ON IN-VEHICLE PAYMENT SYSTEM
Phillips 66, which previously announced plans to bring app-based mobile pay to all of its branded stations this year, began 2019 with another step toward fuel payment convenience. According to a Jan. 4 press release, Phillips 66 is collaborating with Honda to integrate fuel payment technology into Honda vehicles’ in-dash infotainment systems.

The technology will allow Honda owners to select a nearby Phillips 66, 76 or Conoco station, reserve a pump and pay for fuel from their vehicle without using a mobile device. The release did not indicate which Honda vehicles will be equipped with the technology or when the rollout will begin.

YOUNG EXECUTIVES CONFERENCE EARLY BIRD RATES END TODAY
Early bird registration for the 2019 PEI Young Executives Winter Conference, Feb. 6-8, aboard the Queen Mary in Long Beach, California, closes today, Jan. 7. PEI members between the ages of 21 and 45 are invited to spend two days networking with and learning from peers and distinguished presenters. Click here to learn more and register.

TOP OSHA VIOLATIONS FOR 2018
As reported in PEI’s January 2019 SafePractices newsletter, the U.S. Occupational Safety and Health Administration (OSHA) announced its top safety violations for 2018. The top 10 violations were:

Fall protection — general requirements
Hazard communication
Scaffolding
Respiratory protection
Lockout/tagout
Ladders
Powered industrial trucks
Fall protection — training requirements
Machine guarding
Eye and face protection

All PEI members may receive a free subscription to SafePractices and its companion newsletter, SafetyLetter. If you do not currently receive these newsletters, click here to subscribe.

AMAZON TO SELL GAS?
The lead article in the Dec. 20, 2018 TulsaLetter discussed the potential disruption Amazon Business could bring to the petroleum equipment industry.

One financial analyst thinks Amazon could also disrupt gasoline sales. Following reports that Amazon might open 3,000 of its cashierless Amazon Go stores and expand the number of Whole Foods Markets, a D.A. Davidson research report suggested the next logical step is for Amazon to enter retail fueling.

Davidson cited several potential benefits from such a move. Thousands of gasoline stations would provide Amazon with a major new revenue stream. The new locations would allow Amazon to enhance and expand its rapidly growing Amazon Prime delivery services. Perhaps most important, Amazon would gain massive and constantly updated data on its customers’ shopping preferences.

CALIFORNIA RELEASES AST REPORTING GUIDE
The California Environmental Reporting System (CERS) issued a guide to help owners and operators properly report a tank previously identified as an underground storage tank (UST) but now determined to be be a “tank in an underground area” (TIUGA) subject to the state’s Aboveground Petroleum Storage Act (APSA). The eight-page guide can be found here.

In March, CERS will simplify its reporting process for changing the status of these tanks.

CASEY’S UNCERTAIN ABOUT EMV STRATEGY
In Casey’s General Stores’ most recent earnings call, CFO WIlliam Walljasper said the company has not yet decided how it will roll out EMV processing at the pump. Walljasper said Casey’s is weighing two possible strategies: upgrading dispensers at all of the company’s 2,000 locations or limiting EMV upgrades to locations that have a higher risk of fraudulent transactions.

Beginning Oct. 1, 2020, fuel marketers that have not equipped their dispensers to accept chip card payments will be liable for fraudulent card transactions in the forecourt.

DEATHS
Bonnie Mascott, 94, former secretary-treasurer of Mascott Equipment Co., died Dec. 18. Bonnie and her husband Bill founded Mascott Equipment in 1960. She remained an active member of PEI for the next 34 years. She is survived by: three daughters, Marlene, Terri and Cindy; her son, Bill; 11 grandchildren and five great-grandchildren.

MEMBER NEWS
Jones & Frank named Gary Riemer vice president of service operations. For the past 23 years, Riemer was with CNH Industrial, most recently as manager of supply chain optimization. He holds a Bachelor of Science in Mechanical Engineering from the University of Illinois and an MBA and Master of Engineering Management from Northwestern University.
OPW named Gary Campbell general manager of PDQ Vehicle Wash Systems. Campbell most recently was Dover’s vice president of integration for global mergers and acquisitions. He has a Bachelor of Science in Chemistry from Wabash College and an MBA from the University of Michigan.
Petroleum Containment Inc. appointed Far West Sales to represent the company in Colorado, Idaho, Montana, Oregon, Utah, Washington and Wyoming.

BRIEFLY NOTED
“Massachusetts is shrinking its popular electric vehicle rebates in an effort to stretch the program’s dollars … . … The recently announced changes to the program will extend the program to June 30, 2019, and lower the rebate to $1,500 as of the new year. Only electric vehicles powered by batteries or fuel cells will be eligible for rebates; plug-in hybrids and zero-emission motorcycles will no longer qualify. Vehicles with prices over $50,000 will also be ineligible moving forward.”—Energy News Network, Dec. 20, 2018
“For the most part, the forecasts for this year call for slowing, not declining, growth in real GDP, and while the risk of a downturn rises as the year progresses, a recession is not necessarily in the cards for 2019. For instance, I would peg the risk of a recession over the next 12 months at around 20 percent, increasing to about 40 percent by year’s end and into 2020.”—Monday Economic Forecast, Jan. 7, 2019

ADMITTED TO PEI

Petroline, Santiago, Chile (distributor)
Hou Ip Engineering Co. Ltd., Macao, China (service and construction)

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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.