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Operational compliance presents opportunities for PEI members. By Allen Porter With the implementation of the Energy Policy Act of 2005 came an intensified focus on the federal regulations governing underground storage tank (UST) systems. In particular, the renewed emphasis is on providing teeth to the regulations in the form of inspections, violations and resulting penalties, in many cases prohibiting the delivery of fuel to tanks that are not in compliance. Operational compliance has become a particularly hot topic across the country, as state and local regulators are receiving funds from the federal Environmental Protection Agency (EPA) to help bolster their compliance efforts. When the federal UST regulations were first adopted in 1988, the EPA relied upon states to enforce the regulations. While some states, i.e., California, took up the issue with a vengeance, most simply did not have the funds to enact and enforce compliance programs on the scale the EPA envisioned. That is changing. In 1986, Congress enacted the Leaking Underground Storage Tank (LUST) Trust Fund, which was to be used to oversee and enforce cleanups, including paying for cleanups at sites where responsible parties could not be identified or held accountable for damage caused by their leaking tanks. This fund was financed by a 0.1 percent federal tax on each gallon of motor fuel sold in the United States. As of a year ago, the balance in the LUST Trust Fund exceeded $2.5 billion. The Energy Policy Act of 2005 expanded the definition of eligible uses of this money, with a particular emphasis on enforcement activities. Opportunities This intensified focus on UST system compliance is materializing in several ways this year. One of the most widespread issues is that of tank system inspections. Some of the major opportunities involving inspections include: Records Verification Related to inspections is the issue of records. A key component of the inspection of a UST site by a regulator is the verification that all applicable records and certifications are up-to-date and presentable. This includes such documents as: Few sites are able to comply with all of the records requirements. A review by a qualified expert almost always turns out to be time and money well spent, as infractions become costly very quickly. Equipment Upgrade and Replacement When the federal EPA regulations took effect in 1988, there was an overabundance of equipment manufacturers selling UST operators a better way to monitor their UST systems. A large percentage of those companies have since gone out of business or stopped selling leak detection systems, making availability of parts and service nearly impossible. In other cases, equipment was installed in order to meet the regulations, but has not been properly serviced and maintained in the ensuing years. Leak detection equipment upgrades, service and system replacement offer a tremendous opportunity for the distribution marketplace in 2008 and beyond, as the renewed emphasis on regulatory compliance brings to light many old systems that are either not functioning, or cannot be certified as functioning consistent with the regulations. Opportunities in this Market The myriad laws and regulations can be daunting for even the most sophisticated of operators, which is evidenced by the high number of violations and notices of non-compliance issued to them each year. The year 2008 is expected to be a year filled with UST site inspections all across the country. A significant number of the sites inspected will be in violation of the regulations, which will cost operators money through fines and lost revenue. The business opportunity for the PEI member is to get in front of that potential problem, by helping their customers ensure that they’re truly prepared for their inspections and are, in fact, in complete compliance with all the necessary regulations. Allen Porter is president and chief executive officer of Tanknology Inc., headquartered in Austin, Texas, and on the Web at www.tanknology.com. This article may be viewed at: http://www.thepeijournal.org/content/2q08/sf-enforceenergyact.php

Austin, TX –Tanknology Inc, the nation’s largest provider of environmental compliance services for petroleum systems, has announced the company is now offering a new set of services to assist the tens-of-thousands of petroleum operators across the country who must now comply with new Stage I Vapor Balancing Regulations. An EPA Final Rule issued in January of this year requires that a large percentage of operators across the United States install Stage I vapor balancing equipment at gasoline dispensing facilities. The first deadline with widespread impact associated with this new rule was a reporting requirement, which was to be filed last week – no later than May 9, 2008. Tanknology’s new services, designed specifically to meet the compliance requirements of this new EPA regulation, include: Allen Porter, Tanknology’s President and Chief Executive Officer, said that initial indications are that a large number of operators across the country are being affected by the new rule. “A majority of our customers have a significant number of sites that must comply with this new regulation,” Porter said, “and we created these new services specifically in response to this new rule. “Our services specific to the new requirement consist of a compliance assessment, to determine whether the site is in compliance with the regulations, and, if not, to define the specific upgrades required. Our qualified field technicians will the replace the necessary components to bring the site into compliance and conduct all required testing,” Porter said, adding that the regulation stipulates periodic testing and inspections and that Tanknology’s systems are designed to manage the ongoing system compliance. Exactly what operators must to do to ensure compliance with the new rule depends upon their monthly throughput and whether they are already in compliance with state, local or tribal regulations governing Stage I systems. Gas stations subject to the rule were required to file an Initial Notification form (or, in some limited cases, a Notification of Compliance Status form) no later than May 9, 2008. Here is a summary of the requirements for gas stations: Stations with throughput less than 10,000 gallons per month: Stations with throughput of 10,000 gallons or more per month: All of the above management requirements, plus: Stations with throughput of 100,000 gallons or more per month: All of the above management requirements, plus one of the following three options: For more information about Tanknology’s Stage I Vapor Balancing Services, contact Tanknology at 1 (800) 964-1250, or via the web at www.tanknology.com, where a copy of an EPA document summarizing these requirements, as well as the Federal Register publication of the regulations can viewed and downloaded. . Based in Austin, Texas, Tanknology operates across America and around the world, providing UST environmental compliance testing and related services at more than 37,000 sites per year, for more than 3,000 customers. Internationally, Tanknology licensees span more than 20 countries, providing services to the largest petroleum retailers in the world. For more information about Tanknology’s services worldwide, call Tanknology at 1 (800) 964-1250 or visit Tanknology on the web at www.tanknology.com.

Austin, TX — Tanknology Inc, the nation’s largest provider of environmental compliance services for petroleum systems, announced today that it has received the necessary regulatory approvals to conduct line testing at fueling facilities in the Suffolk and Nassau Counties of Long Island, New York. According to Allen Porter, President of Tanknology, the required technician certifications were recently completed, allowing the company to begin the testing of fuel lines at stations throughout the two counties. “Suffolk and Nassau Counties have very diligent environmental requirements and mandate comprehensive testing and certification of technicians in order to certify them to conduct tests in their jurisdictions,” Porter said. “We are pleased to now be in a position to perform these required annual tests for customers throughout the area.” For information about line testing, or Tanknology’s full range of environmental compliance services, New York area customers can contact Tanknology’s Eastern Regional Office at 1-800-666-2605. “It is fitting that a milestone of this magnitude occurred for us at a Cumberland Farms site, Porter said. “Tanknology has a long-standing partnership with Cumberland Farms and we have tremendous respect for their approach to environmental protection. This is a company that goes well beyond what is merely required for compliance with local, state and federal regulations. Protecting the environment is a very serious commitment at Cumberland Farms and we are proud to be their environmental compliance partner.” Based in Austin, Texas, Tanknology operates across America and around the world, providing UST environmental compliance testing and related services at more than 37,000 sites per year, for more than 3,000 customers. Internationally, Tanknology licensees span more than 20 countries, providing services to the largest petroleum retailers in the world. For more information about Tanknology’s Tank Deflection and Deformation Testing services, call Tanknology at 1 (800) 964-1250, ext. 228 or visit Tanknology on the web at www.tanknology.com.

A popular and cost-effective solution for the testing of older fiberglass USTs Austin, TX – Underground Storage Tank operators who were early adopters of fiberglass tanks when they were introduced to the petroleum market in the 1970s were attracted to them particularly because they wouldn’t corrode, causing potentially catastrophic fuel leaks. What they didn’t realize, however, was that certain early production fiberglass tanks that remained in operation for more than 30 years could present potential risks of their own down the road. What some are now finding is that changes to site conditions over the years and the introduction of new chemical additives that unexpectedly weakened the tank’s fibers, are sometimes causing structural deformation or deflection of the tanks, which is leaving the operators victim to the very leaks they were trying to avoid. In response to this phenomenon and a need for operators to verify the structural integrity of older fiberglass tanks, Tanknology Inc., of Austin, TX, is introducing the next generation of its proprietary Tank Deflection and Deformation Testing System, which is specifically designed for the unique challenges posed by older fiberglass USTs. There are multiple causes for tank deflection and deformation. Among them: Tanknology’s unique and specially-designed Fiberglass Tank Deflection and Deformation Testing System is the most accurate and cost-effective method for verifying that the fiberglass tanks at a site have not become deformed. The technology system employs a proprietary bottom flatness measurement device that verifies whether the roundness of the tank is within the specified tolerance of the tank manufacturer. The Tanknology system does not require removal of the fuel from the tank and, more importantly, expensive and risky manned entry into the tank is not necessary. The upgraded generation of the system provides for faster testing, without compromising accuracy, allowing Tanknology technicians to perform the tests with minimal disruption to a site. “Many of the problems that we are now seeing with older fiberglass USTs simply weren’t contemplated when these tanks went into the ground,” according to Allen Porter, President and CEO of Tanknology. “These are not isolated problems; we’re seeing them all over the country. Many of our customers who operate these older tanks are utilizing our Tank Deflection and Deformation Testing System in order to verify the structural integrity of their tanks and buy a little more time before having to replace them. It’s a very economical approach to a potentially catastrophic problem.” Based in Austin, Texas, Tanknology operates across America and around the world, providing UST environmental compliance testing and related services at more than 37,000 sites per year, for more than 3,000 customers. Internationally, Tanknology licensees span more than 20 countries, providing services to the largest petroleum retailers in the world. For more information about Tanknology’s Tank Deflection and Deformation Testing services, call us at 1 (800) 964-1250, ext. 228 or visit us online at www.tanknology.com.

Austin, TX – Tanknology Inc. announced today two recent additions to its growing network of International Licensees.  These two Tanknology partners cover growing markets in Nigeria and Pakistan. Nigeria: Lagos-based Mayflower Oil and Gas Co. offers environmental, engineering, and project management services to the petroleum/petrochemical industry. Mayflower’s clients span a broad array of the petroleum and petrochemical industry, from exploration to retailing, making the company a dominant player in the Nigerian market. Mayflower has been certified by Tanknology to perform testing of Underground Storage Tanks (USTs), using the company’s proprietary SureTest® tank testing system, in addition to its U3 Ullage testing and line testing systems. Ignacio Allende, Tanknology’s Director of International Operations, said that Mayflower’s clients and relationships in all facets of the petroleum industry in Nigeria make them a strong partner for Tanknology in the country. “Mayflower knows the market very well and the company is already having considerable success with environmental programs for major oil companies in the region,” Allende said. Mayflower established Tanknology Nigeria as a subsidiary division to perform tank testing and related environmental services. Pakistan: Based in Karachi, Tekcellent Private Limited is Tanknology’s newest international licensee. Tekcellent provides environmental engineering and related services, including soil and groundwater assessment and remediation services and environmental testing for UST facilities in Pakistan and the Middle East/South Asia region. “Tekcellent is a leader in the Pakistan market,” Tanknology’s Allende said. “The company was a pioneer in environmental impact assessment and remediation in Pakistan, as one of the first companies focused on the impacts of the petroleum industry on the environment. Now they are pioneering again, with the introduction of Tanknology’s market-leading testing services for the petroleum retailing market in the region.”  “We are working to aggressively expand our international presence, primarily though independent licensee partners like Tekcellent and Mayflower,” Allende said. “We are always on the lookout for companies with strong local ties and expertise in their country’s petroleum industry. Tanknology’s industry-leading technologies, training and ongoing licensee support provides a strong basis for a company to become successful in a growing segment of the petroleum marketplace. Based in Austin, Texas, Tanknology operates across America and around the world, providing UST environmental compliance testing and related services at more than 37,000 sites per year, for more than 3,000 customers. Internationally, Tanknology licensees span more than 20 countries, providing services to the largest petroleum retailers in the world. For more information about Tanknology’s services worldwide, call us at 1 (800) 964-1250 or visit us online at www.tanknology.com.

Austin, TX – The PetroScope system from Tanknology of Austin, TX, has been approved by the London Fire Marshall for remote video internal tank inspections on Underground Storage Tanks in the United Kingdom. Tanknology’s system enables the thorough inspection of the interior of a UST, completely avoiding costly and dangerous excavation and manned tank entry. Tanknology is now offering the PetroScope system for sale to end users and independent licensees throughout Europe, as well as providing the remote tank inspection service to customers via existing licensees in some areas.  The PetroScope system includes a robotic camera that is used to view the complete interior of an underground storage tank. It provides a safe and low-cost method to observe the tank’s interior in minute detail. Allen Porter, Tanknology’s President and CEO, said, “Our remote tank inspection system has been proven in thousands of tank inspections around the world to provide a thorough assessment of the tank’s condition, in remarkable detail. The video-based system captures every second of the inspection, providing a highly detailed permanent record of the tank’s condition on the day of the inspection. “Detailed documentation of the tank’s condition to this extent is invaluable to operators, especially in conjunction with sale or purchase transactions,” Porter said. “But perhaps even more important is the ability to perform such a thorough inspection without having anyone enter the tank to conduct it. Regulators and operators around the world are highly enthusiastic about the safety and environmental benefits of this approach to tank inspections.”   Tanknology, the world’s largest provider of environmental compliance solutions for UST operators, is actively pursuing international licensees for the PetroScope system, as well as its full line of compliance testing services. To discuss purchase or licensing opportunities, please call us at 1 (512) 380-7129 or email us at international@tanknology.com. Based in Austin, Texas, Tanknology operates across America and around the world, providing UST environmental compliance testing and related services at more than 37,000 sites per year, for more than 3,000 customers. Internationally, Tanknology licensees span more than 20 countries, providing services to the largest petroleum retailers in the world.   For more information about Tanknology’s Tank Deflection and Deformation Testing services, call us at 1 (800) 964-1250, ext. 228 or visit us online at www.tanknology.com.

Austin, TX – Tanknology Inc. announced today the promotions of several executives into key management positions. Kevin Keegan has been named Chief Operating Officer. In this newly-created position, Keegan will oversee all of the operational aspects of Tanknology’s domestic UST testing and environmental compliance business. Keegan is a 17-year veteran of Tanknology, the world’s largest UST environmental compliance services company. Based in the company’s Elgin, IL office, Keegan is widely regarded as one of the petroleum industry’s leading experts on UST compliance related issues, according to Allen Porter, Tanknology’s President and CEO. Keegan will oversee four new regional divisions within the US, which will be directed by newly-named regional vice presidents: Mark Shaw – Vice President, Western Division, including the west coast, Hawaii, Alaska and the Southwestern states of Arizona, New Mexico, Colorado and Wyoming C.J. Schultz – Vice President, Eastern Division, including New England, and south through the Mid-Atlantic States to Virginia. Brian Derge – Vice President, Southern Division, including the East Coast from North Carolina to Florida and the Gulf Coast states of Louisiana, Arkansas, Oklahoma and Texas. Todd Ferguson – Vice President, Northern Division, including the northern portion of the country from the Canadian Border spanning from North Dakota eastward to Western Pennsylvania and the states south to the northern borders of Oklahoma, Arkansas and Tennessee. According to Porter, this new divisional structure in the US, which will be overseen by Keegan, is designed to help the company create maximum uniformity and consistency in products and services across the country. It will also help in the cross-utilization of resources. “Given the seasonal fluctuations in our business from one region to the next, this divisional alignment will facilitate the effective deployment of our technicians and equipment in order to position ourselves to best service our nationwide and regional customer base,” Porter said.   Porter added that Tanknology has also created the new position of Vice President of Quality Assurance and Technical Development. 15-year Tanknology veteran Bill Callaway has been promoted to this position, which reports directly to the CEO. Callaway will be responsible for managing the company’s extensive Quality Control process, including regional QC managers, as well as developing new and enhanced training processes and quality systems, leading the company’s quest to remain the industry-leader in quality service delivery. Based in Austin, Texas, Tanknology operates across America and around the world, providing UST environmental compliance testing and related services at more than 50,000 sites per year, for more than 3,000 customers. Internationally, Tanknology licensees span more than 25 countries, providing services to the largest petroleum retailers in the world. For more information about Tanknology’s services worldwide, call us at 1 (800) 964-1250 or visit us online at www.tanknology.com.

Austin, TX – Tanknology Inc. announced today that the company recently tested its one-millionth underground storage tank, an accomplishment that is unmatched in the worldwide petroleum industry. Tanknology is the largest provider in the world of environmental compliance testing solutions for the petroleum industry. In the United States, the company dominates the UST testing and services market, with 11 regional offices covering every corner of the country, servicing customers from the largest major oil companies to regional independents to single-station owners. “We are very excited about reaching this milestone of our one-millionth tank test,” said Allen Porter, President and CEO of Tanknology. “It’s an unprecedented accomplishment in our industry, which we’re very proud of.” Tanknology’s one-millionth test occurred at a new Cumberland Farms convenience store in East Brookfield, Mass. on Sept. 28, 2006. “It is fitting that a milestone of this magnitude occurred for us at a Cumberland Farms site,” Porter said. “Tanknology has a long-standing partnership with Cumberland Farms and we have tremendous respect for their approach to environmental protection. This is a company that goes well beyond what is merely required for compliance with local, state and federal regulations. Protecting the environment is a very serious commitment at Cumberland Farms and we are proud to be their environmental compliance partner.” Based in Austin, Texas, Tanknology operates across America and around the world, providing UST environmental compliance testing and related services at more than 37,000 sites per year, for more than 3,000 customers. Internationally, Tanknology licensees span more than 20 countries, providing services to the largest petroleum retailers in the world. For more information about Tanknology’s services worldwide, call us at 1 (800) 964-1250 or visit us online at www.tanknology.com.

Unique process provides complete water and debris removal without taking tanks out of service. Austin, TX – With ethanol-blended fuel soon on its way to gasoline stations across the country, retailers and commercial operators large and small are beginning to face the realization that their tanks must be in suitable condition prior to the changeover, or they could face a variety of costly problems. Regulatory and industry standards require that a storage tank receiving new ethanol blended fuels be free of all water, debris and accumulated sodium salts. These standards exist for good reason, according to experts; the presence of these constituents in ethanol-blended fuel poses serious consequences for retailers and their customers – they are simply not compatible with ethanol. As the nation’s largest underground storage tank testing and compliance services company, Tanknology, Inc. of Austin, TX has been intimately involved with the industry’s leading oil companies in creating specific protocols for tank inspection and ethanol preparation services that are now available nationwide. According to Allen Porter, President and CEO of Tanknology, the response has been dramatic. “Just in the past month we have contracted with our customers to perform ethanol conversion preparation services on thousands of tanks,” Porter said. While the federal mandate for ethanol blended fuel is being phased in across the country, much of the US eastern seaboard is expected to be receiving ethanol-blended fuel within the next 90 days. “Our customers are realizing that the consequences of not being prepared for the introduction of ethanol into their tanks make this a very serious matter,” Porter said, “and they are wise to take it so seriously. Our experience to-date indicates that more than 50% of the tanks we inspect require some level of preparation services before ethanol-blended fuel can be introduced. Add to that that all gasoline storage tanks have some level of water, none of which can be present in ethanol-blended fuels, and it becomes very clear that this is an issue of significant importance to any operator preparing for the transition to ethanol-blended fuel.” Tanknology’s unique ethanol preparation service provides complete water removal and tank preparation without any interruption in service – tanks remain in operation throughout the process. According to Zane Miller, Tanknology’s Manager of Fuel Filtration Services for the Eastern Region of the US and one the company’s ethanol conversation specialists, it is extremely important that retailers take this issue seriously and have a thorough tank inspection by a qualified technician, prior to the introduction of ethanol. “Retailers would be making a mistake to simply rely upon their Automatic Tank Gauge or dipstick to tell them that they don’t have water in their tank and then proceed with the addition of ethanol-blended fuel,” Miller said. “Those tools are simply not reliable when it comes to ensuring that there is no water in the tank, a condition that is required for the introduction of ethanol. In our experience, more than half the time, un-level tanks result in water collecting in an area of the tank that is not detected by the tank gauge.” “It is widely understood,” Miller said, “that you simply don’t put ethanol-blended fuels into a tank that contains any water. That’s why our ethanol preparation service provides complete water removal.” When water or debris mixes with ethanol-blended gasoline, the fuel will emulsify, creating a variety of significant fuel system problems. These costly issues include degradation of fuel octane ratings to levels below specification, filter clogging, requiring frequent filter replacement; spoiled fuel and, ultimately, customer vehicle drivability complaints and/or damage. For more information about Tanknology’s ethanol conversion tank preparation services, call Tanknology at 1-800-964-0110 or visit Tanknology on the web at www.tanknology.com.