LP Gas - June 2016

Download as pdf or txt
Download as pdf or txt
You are on page 1of 68

THE PROPANE INDUSTRYS PREMIER INFORMATION SOURCE | www.LPGASmagazine.

com

JUNE 2016

Slice of the market: How one


project is pushing propane
into golf course equipment
Rail revolution: Filling supply
gaps with infrastructure

Safety Pulse
Retailers, experts share top
safety concerns impacting
the propane industry today

VOLUME 76 | NUMBER 6

Weve moved off-grid


cooking forward 30 years!

ELITE

SIGNATURE

CLASSIC

36 Elite Stainless Of-Grid - UGP 36E OF1

30 Signature Stainless (updated cooktop) - UGP 30 SS

NEW! 24 Classic White- UGP 24G OF1 W

NEW! 24 Classic Black - UGP 24G OF1 B

Call us today for details


1-877-427-2266
[email protected]
www.UniqueOffGrid.com
2016 Unique Off-Grid Appliances. All rights reserved. No power, no problem is a registered trademark of Unique Off-Grid Appliances.

S
A

NA
G
T UR A L

OFF-GR
I

TE
BAT RY I

ITION
GN

All our ranges are CSA certiied for North America (LPG/NG)

NE

Diferentiate yourself as a dealer carry


Unique appliances and immediately
double/triple your of-grid appliance
business!

N PROP
A
SO
N

With cast iron cooking surfaces, 9-volt battery


ignition and beautiful design, Unique has
changed the of-grid cooking landscape. No
standing pilots, no matches, no old wire grates
and no open burners with double clean up. With
great looks and better functionality customers
will be thrilled with our ranges.

RU

Give your customers what


theyve been searching for!

Domestic
Propane Tanks

1000gal

500gal

Delivery and Unload

Rust Free Interiors

The Best Warranty

www.metsa.com

+1(800) 609-TANK

VO L U M E 76

NUMBER 6

JUNE 2016

The propane industrys premier information source

Features
32 |

SLICE OF THE
MARKET
Results of a study on
propane-powered turf
equipment could boost the
fuels standing.

38 |

RAIL REVOLUTION
Propane companies
turning to rail
infrastructure investments
to ill market voids.

42 |

SAFETY PULSE
Retailers, industry experts
share top safety concerns
impacting propane today.

32

Departments
6 | OPENING DELIVERY
| Standing out from the
competition

8 | PHOTO DROP | A gallery of

38

photos from industry events

10 | VITAL SIGNS | Millions


of salaried workers eligible
for overtime pay under new
regulations.

28 | DATAPOINTS | EIA says a


strong El Nio weather pattern
reduces winter heating demand.

50 | SAFETY FIRST | Leaders must


ask the key question Why?
and train others to do the same.

42
On the cover | Photo courtesy of Istock.com/Murat Domkhokov

www.LPGasmagazine.com

June 2016 LPGas | 3

ADD
The Right Propane
Software Solution

ADD Energy E3 is the leading software


solution for propane distributors. Stay
ahead of back office operations like
receivables, credit, billing, and pricing,
so you can focus your attention on
selling and delivering. Turn loads of
data into actionable information with
Atlas Reporting, and keep drivers and
service technicians connected to the
home office with Raven and Pegasus
mobile solutions.

64

52 | MARKETING MIX | Collecting customer email


addresses, cellphone numbers good for business.

54 | LETS TALK | Proper safety procedures are in


lockstep with compliance, risk mitigation.

55 | PRODUCT SHOWCASE | Gas detection training


app, propane cylinder holders and more

64 | SNAPSHOT | Traditional marketing strategy proves


efective for Montana-based retailer.

ONLINE. Visit www.lpgasmagazine.com to get the latest


propane industry news. Also visit us at facebook.com/
lpgasmagazine and twitter.com/lpgas_mag.
LP Gas (ISSN 0024-7103) is published monthly by North Coast Media LLC, IMG Center, 1360 East 9th
Street, Suite 1070, Cleveland, OH 44114. Subscription rates: For US, Canada and Mexico, 1 year
$49.95 print and digital; two years $73.92 print and digital. All other countries, 1 year print and digital
$134.95, 2 years $199.95. For air-expedited service, include an additional $75 per order annually. Single
copies (prepaid only) $10 plus postage and handling. For current single copy or back issues, call 847763-4942. Periodicals postage paid at Cleveland OH 44101 and additional mailing offices.
POSTMASTER: Please send address change to LP Gas, PO Box 2090, Skokie, IL 60076. Printed in the
U.S.A.
Copyright 2016 North Coast Media, LLC. All rights reserved. No part of this publication may be
reproduced or transmitted in any form by any means, electronic or mechanical including by photocopy,
recording, or information storage and retrieval without permission in writing from the publisher.
Authorization to photocopy items for internal or personal use, or the internal or personal use of specific
clients is granted by North Coast Media, LLC for libraries and other users registered with the Copyright
Clearance Center, 222 Rosewood Dr, Danvers, MA 01923, phone 978-750-8400, fax 978-750-4470. Call
for copying beyond that permitted by Sections 107 or 108 of the U.S. Copyright Law.

To ADD more to your


propane business,
contact us at 800.922.0972
www.addsys.com

4 | LPGas June 2016

SUBSCRIPTIONS: Subscriptions to LP Gas are available by calling 847-763-4942.


For single back issues, call 847-763-4942.
North Coast Media LLC provides certain customer contact data (such as customers names, addresses,
phone numbers and e-mail addresses) to third parties who wish to promote relevant products,
services and other opportunities which may be of interest to you. If you do not want North Coast
Media LLC to make your contact information available to third parties for marketing purposes, simply
call 847-763-4942 between the hours of 8:30 am and 5:00 CT and a customer service representative
will assist you in removing your name from North Coast Medias lists.

www.LPGasmagazine.com

1360 East 9th St., Suite 1070


IMG Center
Cleveland, OH 44114
855-460-5502
www.LPGasmagazine.com

Editorial
Editor in Chief:
Brian Richesson
216-706-3748
Fax: 216-706-3711
[email protected]
Senior Editor:
Kevin Yanik
216-706-3724
Fax: 216-706-3711
[email protected]
Associate Editor:
Megan Smalley
216-363-7930
Fax: 216-706-3711
[email protected]
Digital Media Content Producer:
Allison Barwacz
216-706-3796
[email protected]
Art Director:
Kim Traum
[email protected]

Production
Production Services Manager:
Chris Anderson
216-978-5341
[email protected]

Advertising Sales & Marketing


President and CEO:
Kevin Stoltman
216-706-3740
Fax: 216-706-3712
[email protected]

Account Manager:
Ryan Gerard
216-363-7932
Fax: 216-706-3711
[email protected]
Classified Representative:
Kelli Velasquez
216-706-3767
Fax: 253-484-3080
[email protected]
Senior Audience Development
Manager, List Rental:
Antoinette Sanchez-Perkins
216-706-3750
Fax: 702-586-2790
North Coast Media
8756 Castle View Ave.
Las Vegas, NV 89129
[email protected]
Marketing Manager:
Scott Gebler
216-363-7932
[email protected]
Marketing & Sales Manager,
Buyers Guide:
Chloe Scoular
216-363-7929
[email protected]
Digital Operations Manager:
Bethany Chambers
216-706-3771
[email protected]
Web Developer:
Jesse Malcmacher
216-363-7925
[email protected]

VP Finance & Operations:


Steve Galperin
216-706-3705
[email protected]

Reprints & Permissions:


Brett Petillo
877-652-5295
[email protected]

VP Graphic Design & Production:


Pete Seltzer
216-706-3737
[email protected]

Subscriptions/Back Issues/
Customer Service:
847-763-4942
Fax: 847-763-9694
www.lpgasmagazine.com/lp-gascontent/subscriber-services

Publisher:
Brian Kanaba
216-706-3745
Fax: 216-706-3711
[email protected]

Email contact: [email protected]

Only Lock Americas


Security Locks Can
Protect Your Business!
Dont let your competitor ill Your Tank.
Lock out your delinquent customers.
You may be liable if your customer tampers with
an Unsecure, Non-locking Outlet Valve Plug.

Editorial Advisory Board

any device that can be opened with ordinary household


tools could not be considered a locking device.
Jones v. Centerpoint Energy, May 25, 2011

Jaime Alberti
Sales & Marketing,
Hilco Transport Inc.,
Wilmington, NC

Dale Delay
President,
Cost Management
Solutions,
Livingston, TX

Patrick Hyland
Director of Industry
Programs, Propane
Education & Research
Council, Cleveland, OH

Tom Jaenicke VP of
propane marketing
services, Warm Thoughts
Communications,
Charlevoix, MI

Prevent unauthorized ills.

Prevent unauthorized reconnections.

Proits went up when we started locking our tank Now were putting locks
on all our new tanks Brian Wanner, Silvertip Propane
The Fill Valve Lock has paid for itself with the lock, there are no discussions,
no arguments, just bills settled before delivery. Mike Green, Greens Propane
Greg Noll
Executive Vice
President,
PMAK
Topeka, KS

Larry Osgood
President,
Consulting
Solutions LLC,
Monument, CO

Jim Renaldo
Director, Sales &
Marketing, Renaldo
Sales & Service Inc.,
North Collins, NY

Mike Walters
Vice President, Safety
& Training, Superior
Energy Systems,
Columbia Station, OH

LP Gas does not verify any claims or other information appearing in any of the advertisements contained
in the publication, and cannot take any responsibility for any losses or other damages incurred by
readers in reliance on such content. LP Gas welcomes unsolicited articles, manuscripts, photographs,
illustrations and other materials but cannot be held responsible for their safekeeping or return.

www.LPGasmagazine.com

Lock Americas Fill Valve Lock and POLock


Stop unauthorized reconnections!
Protect your business against a possible liability lawsuit.

951-277-5180 800-422-2866
Fax: 951-277-5170
9168 Stellar Court, Corona, CA 92883
www.laigroup.com
[email protected]

June 2016 LPGas | 5

EDITOR IN CHIEF | BRIAN RICHESSON

What sets you apart?


One mans curiosity leads to valuable business insights from retailers

gentleman approached me during the Propane Expo in Nashville with an interesting question about retail companies.
Talking at our trade show booth, he
asked: With propane delivery functions
being equal, what really sets one retail
propane operation apart from another?
You hear companies tout their service, but thats a very general description and so many say it. I told him
about progressive companies operating
in a variety of newer, nontraditional
markets like autogas and utilizing technology to gain efficiencies.
But I felt he wanted more.
So, with that experience in mind,
I reached out to about 10 retail propane companies and posed the same
question to them. I received a number
of interesting responses from these
sources operating on the front lines of
the industry.
Here are some differentiators for retail operations and, in some cases, dynamics that influence a companys ability to separate from the competition.

A diversification of business
offerings and programs
Managements vision to uncover the
right opportunities in the right markets
leads to diversification, says Mike Gioffre of Paraco South.
A marketers ability to create multiple gallon streams that reduce the
dependency on winter weather/heating gallons will help grow non-winter
gallons, even out ratios and boost
business.
Reliable Propane in Clarence Center, N.Y., has gotten creative with its
Honor Tank program.
We leave several grill cylinders
outside our building with 5 pounds of
gas for after-hours use, explains Ken
Albrecht, the companys owner. A
customer can use the tank overnight
and return it the next business day. We
then fill their tank the next day but
dont charge for the gas used overnight.
This program gets people talking and
has reduced the amount we spend on
advertising.

Technology and social media


Communication with customers
and potential customers
The person answering the phone
needs to be polite, friendly and helpful, says Joe Buschur of McMahans
Bottle Gas. Go out of your way to
answer any questions the caller may
have and offer any suggestions that you
can.Then, after you get the person as
a customer, make sure your drivers are
polite and friendly because they are the
face of your business.As long as you are
reasonably competitive [on price] and
friendly, you should be able to keep that
customer.
6 | LPGas June 2016

Todays propane consumer has a set


of different demands and expectations than the typical customer from
10 years ago, explains Mark Zimora
of Energy Distribution Partners, and
keeping pace with those expectations
will pay dividends to the savvy propane
marketer.
Interactive websites and the ability for customers to communicate via
social media are just a couple of examples, he says. Our industry has traditionally been slow to adapt to change,
and in todays marketplace that sluggishness can be more costly than ever.

Community involvement
A retailers community service initiatives and events can make a big difference in the market, says Joe Stariha of
Propane Strategies, who shared several
suggestions. These include sponsoring
youth sports, participating in parades
(while tossing a lot of candy to the
crowd) and designing a bobtail for a
charitable organization (and then becoming a full partner with it).
Pick a theme and also pick a local
organization that benefits from these
donations, he says. National organizations are good, but you need to embrace your local organizations.

Employees and relationships


Jim Renaldo of Renaldo Sales & Service
and Norco Propane Energy Services
says it all comes down to relationships.
The most important relationship we
need to nurture and develop is the one
we have with our own employees, he
says. These are the people that youve
entrusted to help grow the business. If
youre not inspiring them, mentoring
and challenging them, youre in neutral
and wont be going anywhere fast.
Along the same lines, George Koloroutis of ThompsonGas says a companys employees make the difference.
The marketer that focuses on
having the right people in the right
places and provides a culture in which
those people can thrive will run circles
around his competition. LPG

[email protected]
www.LPGasmagazine.com

PhotoDrop

Randy and Denise Doyle of Blossman Gas

Greg Gilbert of Autumn


Wind Associates led

have an unexpected guest behind them,


as Dan Binning of Kiva
Energy photobombs them
during this years LP Gas Hall
of Fame induction event in
Nashville, Tenn. Nominations
are currently open for the
2017 class.

educational sessions on
irrigation engines and autogas
during the Western Propane
Trade Show in Reno, Nev.

Western
Propane
Trade Show
attendees got an

up-close look at
this propane tank
exhibit and the tank
components.

This bobtail

Insurance program provider Energi

These two bobtails parked outside the Reno


Events Center signaled another year of the
Western Propane Trade Show.

was parked
strategically at
a motel across from
the Silver Legacy hotel
in Reno, Nev. Western
Propane Trade Show attendees got a good
glimpse of the truck up for sale while walking to
the show at the Reno Events Center.

showcased its mobile training center


during the Western Propane Trade Show.
Inside, attendees could get behind the wheel of a
delivery vehicle simulator.

8 | LPGas June 2016

www.LPGasmagazine.com

Meet the
Energy Distribution Partners

Hall of Fame
Energy Distribution Partners is proud to announce
the latest company to join our EDP family:

Lyons LP Gas joins the other respected propane companies


whose owners have chosen EDP to help them transition their businesses
and start the next chapter of their lives:

If youve built a high-quality propane operation


and are ready to begin your next chapter, contact EDP.
For a conidential conversation, contact

Brett Krause at 312.254.5954

E D P L P . N E T

[NEWS

B R I E F S]

EDP announces three


transactions in Midwest
Energy Distribution
Partners (EDP) acquired
Lyons LP Gas Co. Inc. and
announced merger plans
with two other retail propane operations, Shute
Oil & Propane and Autore
Oil & Propane Co.
Based in Lyons, Ohio,
Lyons LP Gas has been in
business for 50 years, providing propane service
to about 4,500 customers. The company, which
serves residential, commercial and agricultural
customers, also has an
office in Addison, Mich.
Shute Oil & Propane,
headquartered in
Rudyard, Mich., provides
customers with propane,
heating oil, gas and diesel fuel. The company,
which has nine full-time
employees, launched
in 1966 and serves
nearly 2,300 customers in Michigans Upper
Peninsula.
Autore Oil & Propane,
which provides propane,
heating oil, gasoline,
diesel and lubricants,
operates from its headquarters in Cedarville,
Mich. Its been in business since 1955.
EDP, marking its ninth
transaction in the past
four years, says it plans to
continue its growth strategy in the propane and
midstream industries.

MFA Oil solidiies


presence in Oklahoma
MFA Oil Co. acquired
Terrys Propane Inc., a
retail propane operation

INDUSTRY NEWS & NUMBERS

Millions of salaried workers now eligible


for overtime pay under new regulations

he U.S. Department of Labor (DOL)


percentile of earnings of full-time salaried
announced that employers will be
workers in the lowest-wage census region,
required to pay workers who earn up
currently the South (the $913 per week,
to $47,476 per year, or $913 per week, $47,476-per-year full-year worker);
overtime if they put in
2. Sets the total annual
more than 40 hours
compensation requireThe new threshold
per week.
ment for highly compenPreviously, the Fair
sated employees subject
will make 4.2 million
Labor Standards Act reto a minimal duties test
quired overtime pay for
to the annual equivalent
salaried workers
workers who earned up to
of the 90th percentile of
eligible for overtime.
$23,660 per year, or $455
full-time salaried workers
per week.
nationally ($134,004, up
The higher income
from $100,000); and
threshold will make 4.2 million salaried
3. Establishes a mechanism for automatiworkers eligible now for overtime pay,
cally updating the salary and compensation
DOL says.
levels every three years to maintain the
According to DOL, the final rule:
levels at the above percentiles and also to
1. Sets the standard salary level at the 40th
Continued on page 12

[ P R O PA N E M A S T E R L I M I T E D PA R T N E R S H I P CO M PA R I S O N ]
Fiscal
Year
Company
End
AmeriGas (APU)
Sept.
Ferrellgas (FGP)
July
NGL Energy Partners (NGL) March
Suburban Propane (SPH)
Sept.
Average:

Recent
Quarter Price
Current
Current Est. Tax
End (5/17/16) Distribution Yield Deferral
March $44.27
$3.76
8.5% 75%
Jan.
19.87
2.05
10.3
90
Dec.
13.32
1.56
11.7
80
March 31.69
3.55
11.2
80
10.4%

Debt/
Capital
66%
97
64
58
71%

Gross
Gross Gross Proit Gross Proit Retail Gallons Sold
Company
Revenue Proit
Margin
(Per employee)
(millions)
AmeriGas
$2,105 $1,324 63%
$155,807
1,077
Ferrellgas
1,267
646
51
178,208
569
NGL Energy Partners 1,093
236
22
75,991
164
Suburban Propane
1,093
618
68
169,454
418
Average:
51%
$144,865

Percent
Change
-11%
-8
0
-15
-9%

Total Units
Outstanding
(millions)
92.9
98.0
107.1
60.8

[ L A S T T W E LV E M O N T H S ]

Dollar igures in millions, except for per-unit data.


Revenue and gross proit data are based on total propane gallons sold.
Employee data is based on most recently completed iscal year.
NGLs revenue and gross proit data include the sale of distillates and
other natural gas liquids.

Gross Proit
(Per gallon)
$1.17
0.80
0.16
1.48
$0.90

Sharon Lui analyst, Wells Fargo Securities LLC

Source: FactSet, partnership reports and Wells Fargo Securities LLC

10 | LPGas June 2016

www.LPGasmagazine.com

APRIL

[NEWS
[ H E AT I N G D EG R E E - DAYS BY S TAT E ]
State
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
D.C.
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey

April
120
676
71
146
159
616
526
365
273
10
143
0
412
463
422
479
262
238
55
738
352
577
631
647
94
281
543
409
175
680
441

Deviation
Deviation
From
Last 12
From
Norm
Months Norm
-31
2095
-795
-246
9282 -1957
-66
1884
-287
-36
2765
-759
-90
2145
-502
-49
6550
-891
4
5076 -1025
-6
3083
-963
1
3270
-808
-8
420
-278
-16
2293
-605
0
0
0
-141
5970
-968
-11
5333 -1054
-13
5899 -1026
-19
6147
-948
-68
4227
-918
-73
3682
-958
-5
1322
-471
32
7193
-859
-12
3973
-902
4
5367
-1074
49
5833
-1152
-2
7322 -1477
-25
1922
-654
-52
4307
-938
-140
6892 -1453
-50
5580
-976
-112
3254
-566
27
6436
-1190
-9
4477
-997

LOWER THAN HIGHER THAN


AVERAGE
AVERAGE
HEATING
HEATING
DEGREE DAYS DEGREE DAYS

New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
United States

346
531
219
702
456
161
363
473
545
147
552
221
65
463
750
289
336
336
635
659
354

-34
3
7
0
-14
-39
-108
-5
-4
8
-42
-27
-8
-88
57
-30
-140
-66
10
-58
-29

4277
4871
2929
7878
4872
3062
4688
4968
5042
2262
6645
3363
1508
5874
7160
3639
4790
4367
6721
7334
3778

PERCENT
RETURN
NOT
MEANINGFUL

-581
-1278
-615
-1615
-1131
-707
-483
-972
-878
-548
-1241
-658
-499
-769
-992
-864
-746
-956
-1109
-1006
-808

Data courtesy of the Climate Prediction Center/National Weather Service

[BY LEO MICHAEL]

B R I E F S]

based in Washington,
Okla.
Terrys Propane is the
sixth company MFA Oil
has acquired in its fiscal
year, which began Sept.
1, 2015.
The purchase of
Terrys Propane solidifies our presence in the
Oklahoma City area and
is a complementary fit
with R&S Propane Inc.,
another company we
recently acquired, says
Don Smith, MFA Oils
director of mergers and
acquisitions, in a press
release. Terry Reynolds,
the former owner of
Terrys Propane, has
agreed to stay on and
manage both operations for us. The ability to
bring Terry into our company was a key part of
this acquisition, and we
are very excited to have
him join the MFA Oil Co.
team.
Other acquisitions
MFA Oil has made in
its current fiscal year
are Lybarger Oil Inc. in
Garnett, Kan.; Elaine
Petroleum Distribution
Inc. in Elaine, Ark.; S&S
Oil and Propane Co. Inc.
in Emporia, Kan.; and
Brownfield Oil Co. in
Moberly, Mo.

Parkland Fuel purchases


propane assets
Parkland Fuel Corp., a
distributor and marketer
of fuels and lubricants,
signed an agreement
to purchase assets from
Girard Bulk Service Ltd.s
commercial and residential propane business in
Continued on page 12
www.LPGasmagazine.com

June 2016 LPGas | 11

[NEWS

Continued from page 10


ensure that they continue to provide useful and effective tests for
exemption.
The effective date of the final
rule is Dec. 1, 2016. The initial
increase to the standard salary
level will be effective on that date.
Future automatic updates to that
threshold will occur every three
years, beginning Jan. 1, 2020.

B R I E F S]
Continued from page 11
Saskatchewan, Canada.
Paul Lapensee, Parklands vice
president of commercial operations,
says the company will serve its new
customers under the Bluewave Energy
banner.
Bob Espey, Parklands president and
CEO, notes the acquisition complements the companys existing operations in the region.

EPA takes action against unapproved


propane refrigerants

The initial increase to the standard


salary level takes effect Dec. 1, 2016,
with updates every three years.

Our whole mission here is


about strengthening and growing
the middle class, says Tom Perez,
secretary of labor, in an interview
with NPR. In order to do that, we
need to ensure that middle-class
jobs pay middle-class wages.
According to NPR, the new rule
was more than two years in the
making.
DOL initially proposed an
income threshold of more than
$50,000 but scaled that back
because of complaints that the
proposed threshold did not reflect
pay scales in low-wage parts of the
United States.
The new threshold will cover
about 35 percent of salaried workers, Perez says.
Critics are urging Congress to
block the new rule, NPR adds. LPG
12 | LPGas June 2016

The U.S. Environmental Protection


Agency (EPA) issued a warning about
the safety hazards related to the use of
propane in existing motor vehicle and
home air-conditioning systems.
The warning is directed at homeowners, manufacturers of propanebased refrigerants, home-improvement contractors and air-conditioning
technicians.
According to EPA, a number of
refrigerants with 22a or R-22a in
the name contain highly flammable
hydrocarbons, such as propane, and
are being marketed to consumers and
contractors who want to recharge
air-conditioning systems that are not
designed to use propane or flammable refrigerants. EPA adds that using
these refrigerants in systems that are
not designed for them can create a
fire or an explosion.
The agency plans to investigate
instances where propane-based
refrigerants have been illegally marketed and used as substitutes for
HCFC-22 (R-22). EPA took enforcement
action in several recent cases of unapproved marketing and sales of propane refrigerants.
As the summer cooling season gets
started, we want to make sure consumers and equipment owners know
what is going into their system is safe,
says Janet McCabe, acting assistant
administrator for EPAs Office of Air
and Radiation, in a press release.
EPA adds that it encourages technicians and contractors to consult its

website (www.epa.gov) for more information. The agency also recommends


homeowners confirm that their airconditioning service provider follows
all manufacturer recommendations.

Water Heating Technologies recalls


14,000 gas water heaters
Water Heating Technologies recalled
some of its American Standard gas
water heaters.
According to the Consumer Product
Safety Commission (CPSC), some
of the gas water heaters installed
between May 2015 and February 2016
have a space between the burner
flange and the combustion chamber
that allows flammable liquids or gases
to contact burning flammable vapors
inside the combustion chamber.
This poses a risk of fire or explosion,
according to CPSC.
The recall applies to about 14,400
units that were installed across the
United States. The gas water heaters,
which come in 30-, 40- and 50-gallon
capacities, are white with an American
Standard logo on the front. Model
numbers included in the recall begin
with GN and GSN.

Signature Truck Systems expands


sales coverage to eastern states
Signature Truck Systems, a manufacturer of propane delivery trucks,
expanded its business to service the
Northeast and East Coast regions of the
United States.
According to Mike VanDenBoom,
president of the Michigan-based company, market demands presented it
with opportunities to expand and provide sales coverage to eastern states.
Brian Reynolds will serve as
Signature Truck Systems sales manager for the eastern region. He has
more than 15 years of experience in
the energy marketplace.
Signature refurbishes bobtails and
builds new bulk trucks, service vehicles, crane vehicles, cylinder trucks,
transports and refined fuel trucks.
Continued on page 14
www.LPGasmagazine.com

RAISE YOUR GAME WITH

THE NEW CAMPAIGN.


PUT THE NATIONAL PROPANE BRAND
CAMPAIGN TO WORK FOR YOU.
Download campaign materials from the online catalog at
propanecouncil.org/resources and use them to tell consumers
in your area about propane.
Need help? Call the Help Desk at 202-464-9029 or
write to [email protected].

[NEWS

B R I E F S]
Continued from page 12

Progress Tank names independent


sales agent for truck-mounted tanks
Progress Tank, a manufacturer of
truck-mounted tanks, named Midwest
Petroleum Equipment and Truck Sales
as an independent sales agent, serving
Iowa, Minnesota, North Dakota, South
Dakota and Wisconsin.
Midwest Petroleum Equipment and
Truck Sales will offer Progress Tank
brand truck-mounted propane and
refined fuel tanks. Its owner, James
Reining, has more than 25 years of
experience in the aboveground storage tank business for propane and
refined fuels. Reining will serve as
the companys first independent
sales agent to cover the propane and
refined fuels markets.
Progress Tank is a Wabash National
Corp. brand.

Regs on propane jurisdictional


systems gain committees attention
The House Energy & Commerce
Committee approved an amendment
to H.R. 5050, the Pipeline Safety Act
of 2016, to include a study on regulations affecting propane jurisdictional
systems.
According to the National Propane
Gas Association (NPGA), the managers
amendment was approved by a voice
vote and included the committees
passage of H.R. 5050.
Propane systems that serve more
than 10 customers from a single
tank or more than two if the system
crosses a public way are subject to
the Pipeline and Hazardous Materials
Safety Administrations jurisdiction
and regulations. Propane jurisdictional systems are subject to the same
federal regulations as much larger

gas and distribution systems and utilities. NPGA says these regulations are
in addition to state and local codes,
which are typically based on NFPA 58.
Simplifying the regulations gives
all energy customers, not just propane
customers, access to more options,
says Rick Roldan, NPGA president
and CEO, in a press release. Propane
jurisdictional systems are safe, ease
consumer adoption of propane and
allow our marketers to serve more
customers with fewer trips.
U.S. Reps. Bob Latta, R-Ohio,
and Peter Welch, D-Vt., worked on
bipartisan language to have the
Transportation Research Board examine the current network of federal,
state and local regulations that affect
these propane systems. This study will
identify duplications and inefficiencies in these regulations and make
recommendations on how to improve
safety, reduce unnecessary costs
and streamline federal requirements
associated with propane jurisdictional
systems that serve fewer than 100
customers.
NPGA says H.R. 5050 will need
to be combined with H.R. 4937,
the PIPES Act of 2016, which was
recently approved by the House
Transportation & Infrastructure
Committee, for consideration by the
House of Representatives.

PERC updates Gas Check program,


CETP course approach
The Propane Education & Research
Council (PERC) has made several
changes to its Gas Check program and
Certified Employee Training Program
(CETP) courses.
Stuart Flatow, PERCs vice president
of safety and training, says propane
retailers recommended a simpler
version of the Gas Check program
to make it easier for technicians to
complete. Flatow says PERC created
a video on how to properly complete
all Gas Check forms. The updated
program also reduces the number of
Continued on page 16
14 | LPGas June 2016

www.LPGasmagazine.com

FOCUSED ON PROPANE.
MORE THAN EVER.
Ferrellgas has made headlines recently by completing several non-propane acquisitions. Its part of
a larger strategy we have in place to diversify our business. But weve been a propane company for
nearly 80 years now, and were more focused than ever on growing our core business.

Thinking about selling your business? Give Ferrellgas a call today


to arrange a confidential discussion about your options.

ERIC KRUGER

NANCY COOP

J.D. BAIN

VP of Propane Acquisitions

Business Development Executive-West

Business Development Executive-East

913-661-1540

510-418-7839

352-250-5675

[email protected]

[email protected]

[email protected]

I have bought and sold several


businesses over the years, and I would
highly recommend Ferrellgas. All
promises were kept and they delivered
every step of the way. My employees
were treated with respect and welcomed
to the Ferrell family. I would absolutely
deal with Ferrellgas again should the
opportunity arise.
MIKE WARREN
President, Warren Energy Group
Salt Lake City, Utah

Thinking about selling your business?


Give Ferrellgas a call today to arrange a
confidential discussion about your options.

ERIC KRUGER
VP of Propane Acquisitions

913-661-1540
[email protected]

Blue Flame Blog


PROPANE-RELATED REFLECTIONS FROM WWW.LPGASMAGAZINE.COM

| KEN ALBRECHT

Taking a detour from distractions leads to more deep work


The world is full of distractions, and
many of those distractions keep us
from using our time wisely.
For example, the average person
spends between one to 10 hours a
week online. Is it any wonder that
we find it difficult to accomplish any
meaningful or productive work? Once
we are distracted, it takes an average
of 20 minutes to return to a task.
Cal Newport, author of Deep
Work: Rules for Focused Success in a
Distracted World, tells us that the No.
1 power tool for time management is
the time block. He suggests that we

isolate ourselves from all distractions


for a certain period of time to do deep
work. It is best to start small, perhaps
with a one-hour time block.

The average person spends


between one to 10 hours a
week online.
Multitasking, on the other hand,
is a false belief that many of us have
bought into. It may look impressive,
but, in reality, multitasking is simply
jumping from one subject to another,

which causes mental exhaustion.


If you want to do deep work, learn
to say no to nonessentials. We like
to please others, so we accept almost
every job that we are asked to do.
Simply say no if you honestly cant
do it. It may create some awkwardness
among your coworkers for a while, but
it will be worth it in the long run. We
do our best work when we bring the
full power of concentration to it.
Ken Albrecht is president of Reliable
Propane in Clarence Center, N.Y. Visit
www.reliablepropane.com.

[NEWS

BOBTAIL ERGOLOAD OPTION

ASK ABOUT STOCK UNITS

DESIGNED TO DELIVER

Decades of experience
Manufactured in the USA
Customized to your application
Design certiied engineers in-house
Vessel built to your speciications

(800) 992-8981

16 | LPGas June 2016

westmor-ind.com

[email protected]

B R I E F S]
Continued from page 14
forms retailers need to complete from
three to two.
We wanted to provide more flexible guidelines, as its a voluntary program, Flatow says.
He adds that the Gas Check program information can be purchased
or downloaded at PERCs Propane
Marketer Resource Catalog.
In addition, PERC wants to introduce
a blended learning option to CETP
courses, requiring class attendees to
review the material in an online course
before attending an in-person session.
Teaching adults can be difficult,
Flatow says. We want to find different
approaches to train people in CETP.
The Colorado Propane Gas
Association tested the blended learning option with PERC where members
took the course online and then in
person. Flatow says students in the
course scored a 100 percent pass rate.
In other safety news, PERC says
it has also updated its Dispensing
Propane Safely materials.
www.LPGasmagazine.com

[ PEOPLE]
Cargas Systems
The software and
consulting company promoted
several of its team
members to support recent growth.
Fred Bowers was
promoted to manBowers
ager of product
development. He will supervise software engineers in the Cargas energy
division.
Cory Grimm was
promoted to serve
as Cargas manager
of consulting. He
will supervise the
system consultants
and project managers in the Cargas
energy division.
Grimm

The company
promoted Ian
Libhart to manager
of product quality.
He will supervise
the quality engineers, business analysts and training
Libhart
content specialists
in the Cargas energy department.
Rob Mallon now
serves as Cargas
manager of technical services. He
will supervise the
software engineers
who are responsible
for custom software Mallon
in the business
solutions division.
Also, Cargas promoted Keith Neff
to manager of technical services. He

will supervise software engineers in


the Cargas energy
division who are
responsible for data
conversion, custom
report development and custom
Neff
programming
related to the companys software.

Stellar Industries
Alan Marsh, a retired employee of
Stellar Industries Inc., died March 30 at
age 73. Marsh joined Stellar Industries
in 2008 as a national sales representative and worked with the Iowa company until his retirement in 2015. He
previously worked
for Auto Crane as
a regional sales
manager for 12
years. All of us will
cherish the fond
memories of working with [Marsh] at
Stellar [Industries],
Marsh
says David Zrostlik,
president of Stellar
Industries, in a press release. He
was a very energetic and wise man
who couldnt wait to meet the next
customer and please the current
customer. Stellar designs and manufactures trucks and truck equipment.
It offers service trucks for the propane
industry.

NGL Energy Partners


Christopher Beall was appointed to
the board of directors of the partnerships general partner, NGL Energy
Holdings LLC. Beall brings experience
in the financial markets and industry
experience to the board. He has more
than 16 years of experience in direct
investments, investment banking
and finance. Beall currently serves on
the boards of directors at Northstar
Transloading, ADS Waste Holdings
Inc., Ports America Cos. and Northstar
Terminals, as well as Amtrak.
Continued on page 20
18 | LPGas June 2016

www.LPGasmagazine.com

Go to propanemarc.com
to download this program today.

THIS FUNDAMENTAL TRAINING

JUST GOT
BETTER.
DISPENSING PROPANE SAFELY
NOW COVERS OPERATIONS
FOR VEHICLES AND MOWERS.
This program details the many tasks associated
with safely and efectively dispensing propane
into several types of propane cylinders and tanks.
With the latest version, your team can also brush
up on safe dispensing for propane autogas vehicles
and propane mowers. Go to propanemarc.com
today to download or purchase the program
materials, which include:
DVD training video.
CD with training materials: detailed dispensing
instructions, quizzes, answer keys, and a
completion certiicate.
Dispensing Propane Safely is organized into modules
that allow you to select topics relevant to certain job
responsibilities. Ensure your team is properly trained by
taking advantage of this important program.
propanemarc.com

About the Program


Dispensing Propane Safely is an employee training program funded by
the Propane Education & Research Council that details the many tasks
associated with the safe and effective dispensing of propane into several
types of propane cylinders and tanks. The program is organized into
modules that allow you to select what material is covered based on
your job responsibilities. The following training tools are available:
DVD
CD training manual that includes detailed dispensing instructions,
quizzes, answer keys, and an employee completion certicate

DISPENSING PROPANE SAFELY

The rst three modules in the program apply to anyone dispensing propane:
1. Introduction to Dispensing Propane Safely
2. Properties and Characteristics of Propane
3. Dispensing Station Equipment
Additional modules that can be selected based on job requirements:
4. DOT Cylinders
5. Filling Small Cylinders
6. Refueling, Maintaining, and Troubleshooting Forklift Cylinders
7. Refueling Motorhomes and Other Vehicle-Mounted ASME Tanks
8. Dispensing Propane Safely for Mowers
9. Dispensing Propane Autogas
A resources section is also available on the DVD and includes additional
videos on:
Composite Cylinders
Retail Cylinder Exchange Operations

Propane Education & Research Council


1140 Connecticut Ave. NW, Suite 1075
Washington, DC 20036
202-452-8975
www.propane.com
2016 Propane Education & Research Council

[ PEOPLE]
Continued from page 18

Algas-SDI

NPGA

Algas-SDI restructured its operations, launching two distinct business groups, and promoting two key employees.
Todd Meadows and Mike Zimmer will serve as directors
of the LP-Gas Products group and the Gas Systems group,
respectively. Kirsten Bellar will serve as director of sales for
the LP-Gas Products group. Additionally, the company hired
John Searle as director of strategic business development.
Algas-SDI designs and manufactures products and systems
for the propane industry, including a variety of vaporizers.

Eric Kuster was hired as director of safety and certification. He comes to the association from Fairmont Insurance
Co. and has worked for multiple propane retailers. He also
served as chairman of NPGAs CETP certification committee and the Propane Education & Research Councils safety
and training working group. Kusters background gives him
a good perspective on safety issues facing the industry,
including training, certification, liability, audits, depositions, codes and regulations, NPGA says.

Bergquist Inc.
Scott Biggs was promoted to serve as regional sales
manager of the South. He launched
his career with the company in 1998
as an inside sales representative at its
distribution center in Bowling Green, Ky.
Biggs most recently worked as the companys area sales manager for Kentucky,
Tennessee and West Virginia. Andy
Carnes will take on Biggs position as an
area
sales manager, the propane equipBiggs
ment distributor adds.

THE SOCIAL SCENE


A sampling of notable tweets and posts from LP Gas
social media pages.
twitter.com/lpgas_mag
facebook.com/lpgasmagazine

A new North Carolina-based #propane rail terminal


aims to add supply reliability in the Southeast.

@USDOL released a final rule updating overtime


regulations.

#Video: @ICFIs Mike Sloan discusses #propane as an


emerging and growing fuel in the engine market.

ICYMI: @AllianceAutoGas started a 5,500-mile trip

this month using a 2016 bi-fuel 3.5-liter @Ford F-150 V6


truck.

LeeTran, a paratransit service in Fort Myers, Fla.,

added 15 propane autogas-fueled shuttles to its fleet.

@westmorind is promoting propane-related


ASME & NATIONAL BOARD CERTIFIED
DOT REGISTERED

FULL SERVICE TANK TRAILER/BOBTAIL REPAIR


PRESSURE VESSEL REPAIR & MODIFICATIONS
PERFORM ALL REQUIRED ANNUAL TESTING
ON PROPANE TANKS INCLUDING HYDRO-TESTS
REBUILD VALVES AND PUMPS
INSTALL/REPAIR PROPANE METERS AND BASE SYSTEMS
CUSTOM FABRICATING AND WELDING SHOP
PUMP, VALVE, AND HOSE REEL PARTS IN STOCK

35 Years of Service | Serving Northeast Ohio


and surrounding areas

330-296-7519 | tanktrailerrepair.com
20 | LPGas June 2016

job opportunities through its high school welding


competition.

Were in Reno for the Western #Propane Trade Show.


Always great to gauge the industry in this part of the
country.

An updated version of an online U.S. DOE tool

offers unique perspective on propane autogas, other


alternative fuels.

@EPA issued a warning about the #safety hazards

related to the use of propane in home air-conditioning


systems.

Pets are playing a prominent role in businesses


#digital strategies.

Georgias @BibbSchools making effort to grow its


#autogas bus fleet, featuring the @ROUSHcleantech
LPG fuel system.

www.LPGasmagazine.com

FOCUS ON
SPONSORED BY

Online tool helps fleet managers analyze alternative fuels

he Department of Energys
(DOE) Argonne National Laboratory released an updated version of its Alternative Fuel LifeCycle Environmental and Economic
Transportation tool (AFLEET) to reflect
the latest advances in alternative fuels
and updated emissions data.
Sponsored by DOEs Clean Cities
program, AFLEET serves as a free online tool. According to Argonne, the tool

helps users assess what types of vehicles


and alternative fuels will work best for
them. Argonne recommends managers
who purchase and maintain fleet vehicles use the tool exclusively.
The updated version of AFLEET
includes information on gaseous hydrogen fuel cell vehicles, state-based fuel
pricing, private station fuel pricing and
fueling infrastructure costs. Updates to
existing input in AFLEET include new

Autogas dispensers approved

[NEWS BRIEFS]

Paratransit service commits

about half of fleet to autogas:


LeeTran, a paratransit service in Fort
Myers, Fla., added 15 propane autogas-fueled shuttles, bringing the
public transit agencys propane fleet
to 20. Autogas vehicles now comprise 45 percent of LeeTrans entire
paratransit fleet. The new shuttles
each use a Ford E-450 chassis with a
6.8-liter V10 engine, and they come
equipped with a Roush CleanTech
autogas fuel system. The shuttles,
each traveling about 30,000 miles
per year, also include an extended
64-usable-gallon fuel tank. Robert
Southall, LeeTrans maintenance
manager, says the company pays
about 50 cents per gallon on autogas compared to $1.46 per gallon
for diesel. LeeTran plans to convert
its entire paratransit fleet to autogas
within the next five years.

for fueling island locations:


Superior Energy Systems electronic propane autogas dispensers
have received Canadian Standards
Association listings per Underwriters
Laboratories UL 495 and CAN1-12.4
standards, the company announced.
The listings include approval of the
dispensers mass flow meter technology. They also signify the units
meet all National Fire Protection
Association standards for approved
propane autogas dispensers,
the company adds. According to
Superior, its PRO-Vend 1000, PROVend 2000, and the PRO-Vend 1500
and PRO-Vend 2500 dual-hose
propane autogas dispensers can
now be placed on fueling islands,
alongside gasoline and diesel, in
private fleet or centralized fueling
locations in the United States and
Canada. Superiors electronic propane autogas dispensers have also

S2G: A REAL WORK TRUCK.


Learn more and start building your S2G today at
FCCCcommercial.com/S2G, or by calling Freightliner
Custom Chassis at (800)FTL-HELP. For ordering
details, contact your local dealer.

22 | LPGas June 2016

light-duty vehicle costs and vehicle air


pollutant emission factors.
According to Argonne, AFLEET
developers have conducted case studies
that evaluate the environmental benefits
of fleets that run on propane, such as
propane-fueled school buses or delivery
trucks. In all of AFLEETs propaneoperated vehicle case studies, the use of
propane displaced about 1,000 gallons of
diesel per vehicle annually, on average.

Superior Energy Systems dispensers


can now be placed on fueling islands.

received National Type Evaluation


Program (NTEP) certification from
the National Conference of Weights
and Measures and are fully NTEP
certified for every state in the U.S.,
the company adds. Superior also
manufactures mechanical dispensers, such as the PRO-Vend 3000
for stationary applications and the
3000P for portable applications.

Georgia school district runs

25 percent of buses on autogas:


The Bibb County School District in
Macon, Ga., has grown the number
of Blue Bird Propane Vision Type C

www.LPGasmagazine.com

buses it operates from 31 in 2014


to 53 today, representing a quarter
of its total fleet. Equipped with the
Roush CleanTech propane autogas
fuel system, each Blue Bird Propane
Vision bus runs on a Ford 6.8-liter
V10 engine with a Ford 6R140 automatic transmission. Additionally, the
school district can fuel its propane
autogas buses at a station located on
the grounds of its bus garage, which
features a 4,000-gallon propane tank.
Currently, the school district pays 95
cents per gallon for propane autogas
compared to $1.33 for diesel. The district also expects to receive $111,000
in tax credits for using the alternative
fuel. The district recently approved
a plan to purchase more propane
autogas buses, and it will replace
outdated diesel buses with propane
autogas, as needed, according to a
Roush CleanTech case study.

Arizona school district adds 73

autogas buses to fleet: The Kyrene


School District in Tempe, Ariz.,
now runs 85 percent of its school
bus fleet on propane autogas. The
school district purchased 25 Blue
Bird Vision propane-powered buses
in 2014, and it added 73 more of the
buses to its fleet this year. Equipped
with Fords 6.8-liter V10 engine,
the schools 98 propane-powered
buses feature Roush CleanTech
propane autogas fuel systems. Eric
Nethercutt, Kyrene School Districts
director of transportation and
facilities, says the school districts
technicians have experienced fewer
problems servicing propane-powered buses than with diesel buses.
Working with propane is as easy as
working on a gasoline engine, he
says in a press release. The school
district adds that its planning to
install an on-site fuel station to further reduce its fuel costs. It pays an
average of $1.15 per gallon for propane autogas.

www.LPGasmagazine.com

Propane in the Park


The Propane Council of Texas
(ProCOT) partnered with Travis
County Parks and Central Texas Clean
Cities Lone Star Clean Fuels Alliance
to host an event called Propane in the
Park at the Southeast Metropolitan
Park in Del Valle, Texas. According
to ProCOT, the community event was held in an effort to educate park
officials, as well as commercial landscapers, on going green with propane.
There are over 150 propane commercial mower models available from
major mower manufacturers, as well as aftermarket options on everything
from commercial walk-behinds to zero-turns, so the options are there,
says Jackie Mason, education and marketing director for ProCOT, in a press
release. ProCOT also created a mower incentive program in 2010 that helps
commercial landscapers, colleges, school districts and city parks departments make the switch to propane. The program provides $1,000 per
mower and up to $7,000 per entity, ProCOT adds.

Propane bus demand growth

prompts dealer to expand:


Canyon State Bus Sales, a Blue
Bird dealer in Arizona, opened a
new 27,500-square-foot facility in
Glendale, Ariz. Canyon State Bus
Sales says the move to Glendale was
partially influenced by the rising
interest in propane autogas-fueled
buses. The company supplied the
Kyrene School District in Tempe, Ariz.,
with 73 Blue Bird Vision propanepowered buses earlier this year. This

new location offers us efficiencies


and growth opportunities to better
serve our customers, particularly
with the significant increase of propane buses that weve sold in the
past three years, says Phil Polizzatto,
president of Canyon State Bus Sales,
in a press release. According to
Canyon State Bus Sales, the facility is
about 60 percent larger than its previous headquarters in Phoenix, and
it allows the company to increase its
staff by 15 percent.

June 2016 LPGas | 23

[IN

T H E K N O W: S A F E T Y ]

Q
A

What are the biggest propane industry safety


concerns of today, and how can retailers reduce
their risks to these exposures?

Safety comes down to three critical components


and tasks. The three critical components are 1)
people, 2) people and 3) people. The three critical tasks are 1) training, 2) proper execution of training and
3) documentation.
The key for retail propane companies is to have highly
conscientious, expertly trained, committed staffs. In the end, it comes down
to properly training your people to
execute their jobs and complete the required documentation.
Ask five people in the propane industry about safety concerns within
their businesses and you will likely get
five different answers. The answers will
Tamera Kovacs
most likely be tied to their responsibility
in the company or based on a recent incident. The absolute
No. 1 way to reduce the risk to exposure, regardless of the
exposure, is proper training and proper documentation.

Jamerson McLean
Corporation
Liability Assessment Services

Customer Gas System Documentation & Implementation


Out of Gas Procedure
Duty to Warn Procedures
Commercial Driver File Review
Hazardous Material Compliance
Security Awareness
Drug & Alcohol Training for Supervisors

Insured Locations

Our insureds have avoided $1,000s of dollars in fnes.


Providing Insurance to the Propane Industry for 35 years.
825 Executive Drive Oviedo, FL 32765
800-393-6640

24 | LPGas June 2016

Everyone hates paperwork, but proper documentation can


save the company big bucks.
Retail propane companies have many different areas
of focus for safety concerns. When safety is mentioned in
the industry, most people automatically think about the
installation at the customers location and the customers
safety. While ensuring the customers safety is important,
each company should have a policy on performing and
maintaining documentation on leak tests for its customers.
Consistency in documentation is critical. How do the leak
test documentation forms look at 8 a.m. compared to the
ones completed at 4:30 p.m.? How
do they compare in the first week
Having proper
after initial training to week 38,
post training? This sounds simple,
documentation but the consistency and completeness of the documentation cannot
helps retailers
be stressed enough.
Companies have other safety
reduce risk.
exposures in addition to the customer. Employee safety is equally
important. Look at the number of employee safety incidents compared to the number of customer incidents. The
employee number is often significantly higher.
Workers compensation is a large number when it comes
to employee expenses. Employee-related expenses make up,
on average, 40 to 60 percent of the companys total operating expenses. Workers compensation can cost a company
in excess of 10 percent of total salaries paid.
The propane business is unique. We go to the customer
rather than have the customer come to us. We have expensive vehicles on the road that require specially trained
employees. All employees who drive a bobtail must have
Department of Transportation (DOT) and hazmat licenses.
Again, training and proper documentation are critical. Make sure all employees are properly trained with
up-to-date DOT files. Drivers must perform and properly
document their pre-trip and post-trip vehicle inspections. It
sounds simple, but those records would be the subject of an
investigation in the event of an accident.
The safety of the company begins with the companys
owners and leaders. Safety, proper training and documentation must be your priority, too. Safety is a team effort and
not just the safety persons responsibility. Your entire staff
must make safety its No. 1 priority. Set goals, track progress
and reward employees for meeting and exceeding the companys safety goals. It all comes down to good people making the right decisions. LPG
Tamera Kovacs is a financial consultant and industry expert
in business valuations and sales with Propane Resources.
She can be reached at [email protected] or
913-262-0196.
www.LPGasmagazine.com

Thank You for Making Us #1


Thank you to each and every LP Cylinder Service customer. Its because of you that we are the #1
refurbisher in the industry. Since 1980, our mission has remained the same to provide our
customers with outstanding quality and service while continuing to innovate and grow our operations.

quality

service

innovation

American Proud 100% USA


Specialized in refurbishing
Tracking of essential container
Superior
durability
and
quality
made parts and components
DOT and ASME cylinders and
data to assist with asset
Superior
customer
service
installed
tanks
of all sizes
- from 20#
management and integrate
100%
American
Made
Parts
And
Components
Durable coatings protect your
to 1000 gallon
with your data system
cylinders and tanks and outlast Tried
Family
& operated
theowned
rest?
Now refurbish
Patented polypropylene lids
with
the
BEST!
the requaliication cycle
for over 35 years
and domes to match your
Exclusive quality control
Exceptional, personalized
company colors
system ensures safety and
transportation service
Now serving our customers
compliance for you and
from TWO facilities get
your customers
your cylinders & tanks back
to work FAST!

Visit us at Booth #510

Youve tried the rest, now refurbish with the best!


www.lpcylinder.com L.P. Cylinder Service Shohola, PA, USA 570-685-7924

[ E V E N T S]

JULY 12-13 PERC Council Meeting

in Napa Valley, Calif. For more information, contact Anna Lombardo at


[email protected] or
202-452-8975.

JULY 17-19 Virginia Propane Gas

Association Summer Meeting at the


Hilton Virginia Beach Oceanfront
Hotel in Virginia Beach, Va. For
more information, contact Darlene
Hawk-Meigs at [email protected] or
941-347-7596.

JULY 20-22 Michigan Propane


Gas Association Annual Summer
Convention at the Crystal Mountain
Resort in Thompsonville, Mich. For
more information, contact Geri Root
at [email protected].

JULY 27-29 Pacific Propane Gas

26 | LPGas June 2016

Association Summer Meeting at the


Semiahmoo Resort in Blaine, Wash.
For more event information, contact
Mollie ODell at [email protected] or
202-355-1332.

JULY 29-AUG. 1 Crossroads Propane Expo & Conference at the Fort


Worth Convention Center in Fort
Worth, Texas. For more information,
visit www.crossroadspropexpo.com.

JULY 31-AUG. 2 Missouri Propane


Gas Association Family Outing and
Annual Meeting in Camdenton,
Mo. For more information about
the event, contact Estelle Zewe at
[email protected].

JULY 31-AUG. 2 Ohio Propane Gas


Association Summer Meeting at the
Hilton Cincinnati Netherland Plaza
Hotel in Cincinnati, Ohio. For more

information, contact Geri Root at


[email protected].

AUG. 10-11 Northeast Propane


Show at the Holiday Inn in Boxborough, Mass. For more information,
contact Caryn Gwizdala at caryng@
pgane.org or 888-445-1075.

AUG. 14-16 Georgia/South Carolina Connection Convention at The


King and Prince Beach & Golf Resort
in St. Simons Island, Ga. For more
information, contact Corky Clark at
[email protected] or Jenni McKeen at
[email protected].

SEPT. 11-14 NPGA Fall Technology,


Standards & Safety Committee Meeting at the Marriott in Pittsburgh.
For more information, contact Katie
Hathaway at [email protected]
or 202-355-1335.

www.LPGasmagazine.com

PROPANE INDUSTRY NUMBERS

EIA: Strong El Nio contributes to reduced winter heating demand


U.S. heating degree-days
Heating degree-days

1,000

average of previous
10 winters
winter 2015-16

difference
from normal

0%

800

-17%

-27%

600
-14%

-26%

400
200
0

-12%

October November December January

February

March

Source: U.S. Energy Information Administration, Short-Term Energy Outlook, April 2016

28 | LPGas June 2016

Heating degree-days compared to the previous 10-winter average.

U.S. total heating degree-days in winter months


Heating degree-days
4,500
4,000

NOAA plus 10%


NOAA forecast
NOAA minus 10%
actual

3,500
3,000
0

08-09 09-10 10-11

11-12

12-13 13-14

14-15

15-16

Source: U.S. Energy Information Administration, National Oceanic and Atmospheric


Administration, Climate Prediction Center

The number of heating degree-days across the United States was


down 12 percent compared with NOAAs September 2015 forecast.

In addition to record-high winter temperatures reducing


the demand for space heating, abundant natural gas supplies
and low crude oil prices helped to lower heating fuel prices.
Throughout the 2015-16 winter, residential propane prices
remained relatively flat, averaging $1.98 per gallon. On average,
EIA says, U.S. households paid 15 percent less for propane this
winter. As of April 1, U.S. propane inventory had risen to 64.9 million barrels, which is 6.9 million barrels higher than one year ago
at the same time. LPG
www.LPGasmagazine.com

ISTOCK.COM/MCCAIG

ropane demand decreased 16 percent in


the 2015-16 winter compared to the 2014-15
winter, according to the Energy Information
Administration (EIA).
EIA adds that heating oil and residential electricity demand also decreased by 45 and 6 percent,
respectively, this winter compared with last winter.
Above-normal temperatures during the 2015-16 winter
were the main factor in lowering heating demand and
winter fuel expenses. The 2015-16 winter season, which
goes from October through
March, was 15 percent warmer
An El Nio
than last winter, driven in part
typically lasts by one of the strongest El Nio
events in decades.
nine to 12
El Nio is a large-scale warming event that affects temperamonths.
ture and precipitation patterns
in the Pacific Ocean. It occurs
every three to five years as a result of warmer-thannormal ocean temperatures in the east-central equatorial Pacific. An El Nio typically lasts nine to 12 months.
EIA reports the 2015-16 El Nio was one of the strongest on record, and it contributed to the warm winter
weather experienced in the United States.
Warm winter temperatures reduced the overall
number of U.S. heating degree-days. At the national
level, the number of heating degree-days was 18 percent lower than the previous winter season and 12 percent lower than the National Oceanic and Atmospheric
Administrations forecast in September 2015.

ON THE ROAD
TO A SAFER
TOMORROW

At Ditech, safety is not just a word. It is our focus, our


mindset and our continued destination as an organization.
Everything we do begins and ends with safety. We believe
that safety is a way to truly measure any company; if you
care about safety, then you care about everything else.

1-855-REFURB1 ditechtesting.com

75 T H A N N I V E R S A R Y

Propane Safety
[ SAFET Y

E D U C AT I O N ]

Education serves as a component of safety


Education is a critical component of promoting safety in the propane
industry.
Today, education serves as a key to retaining the best safety practices, as
retailers are responsible for training their employees, whether in-house and
at safety meetings, through their state associations or with industry-sponsored programs. Without safety education, it would be tough for propane
marketers to resolve potentially hazardous situations in the field.
Since LP Gas magazines inaugural year, 1941, safety education has been
important to the propane industry. In 1941, RegO helped to promote propane safety education by releasing its Pocket Guide. Compiled with the
help of the Bastian-Blessing Co., the RegO Pocket Guide educated readers on the best practices in the industry. LP Gas magazine ran some of the
pages of the Pocket Guide each month. The guide included information on
how to do business in the industry safely, explaining how to fill a cylinder
properly, how to avoid getting water in an LP gas system and how to check
for excess flow on valves. RegO also sold a Pocket Guide binder for readers
to save Pocket Guide pages for 50 cents.
RegO says the goal of its Pocket Guide was to help propane marketers
increase sales and promote safety.

[FIRE

PR E V E N T I O N]

Industry attentive to propane fires


When it comes to propane safety, fire is often a concern.
In honor of Fire Prevention Week Oct. 5-11, 1941, LP
Gas magazine analyzed the number of propane- and
gas-related fires that occurred during a 10-year time
period for its November 1941 issue.
According to estimates from state fire marshals
reports, gas and gas appliance fires ranked 24th
on its list of fire types that caused the most damages. Only 4,000 gas and gas appliance fires were
reported between 1931 and 1940, costing about
$1.9 million in damages. Despite being ranked
lower than other types of fires, the industry
remained alert to the possibility of propanerelated fires.
As written in a Rochester Criterion Gauges
advertisement in the September 1941 issue,
Guesswork has no place in the handling of
highly volatile liquids.

30 | LPGas June 2016

Guesswork has no place in


the handling of highly volatile
liquids.
Rochester Criterion Gauges
advertisement

www.LPGasmagazine.com

IT DOESNT RUST!

NO RUST. NO CORROSION. NO REPAINTING.


Why are Viking Cylinders a better cylinder for your exchange business?
LOWER OPERATIONAL COSTS HIGHER MARGINS SAFER
INCREASED CUSTOMER LOYALTY INCREASED PROFITABILITY

Tel: 866.470.3737
E-mail: [email protected]

Our lightweight composite LPG cylinders have the best safety record in the industry and will not
BLEVE. Trusted by over 10 million businesses and families worldwide. Approved for use in all 50
states and over 70 other countries. Contact us to learn how we can help you grow your business.

vikingcylinders.com/norust
Viking Cylinders is a registered
trademark of Hexagon Ragasco AS.

G O L F CO U R S E M A N AG E M E N T

Slice
of the

market

The results of a study involving


propane-powered turf equipment
could elevate the fuels standing
among decision-makers
BY KEVIN YANIK | SENIOR EDITOR

[email protected]

cott Corwin wasnt about to say


no to free turf equipment.
Corwin, the golf course superintendent at the Vinoy Renaissance St. Petersburg Resort
& Golf Club in St. Petersburg, Fla., had
the opportunity to trial four pieces of
propane-powered equipment as a participant in a yearlong Propane Education
& Research Council (PERC) program,
hosted in partnership with Audubon
International and R&R Products Inc.
The Vinoy received three R&R Products mowers and a bunker rake from the
company through the program, which
included nine participating golf courses
across the United States.
You always have to look out for your
company, and my No. 1 priority is to
take care of the Vinoy, Corwin says.
My job is to make sure we are doing the
right thing for the company and the golf
course.
Because Corwin is approaching retirement, he originally had the thought
that participating in the program and
introducing alternative fuel equipment
32 | LPGas June 2016

to the Vinoy would be a nice lasting


mark on his legacy at the property. But as
Corwins experience with the propanepowered equipment grew, he realized
the equipments benefits stretch beyond
the greener image the Vinoy can now
promote.
According to PERC, which gathered
data from participating courses, the
Vinoy achieved 45 percent fuel savings
over diesel with the fairway mower and
trim mower it used in the demonstration. In addition, the Vinoy experienced
25 percent fuel savings over gasoline
with the greens mower and bunker rake.
The Vinoy, however, isnt the only
course to report significant fuel savings
to PERC. Between the nine participating courses, fuel savings of between 20
and 50 percent were reported compared
with competitive diesel- and gasolinepowered models.
The average gallon-per-hour use of
the propane equipment positions propane competitively, as well. According
to PERC, the fuel consumption of the
propane-powered greens mower and
bunker rake was on par with gasoline.
The propane-powered fairway mower

and trim mower were slightly less efficient than their diesel counterparts, but
propane still has a winning argument
when considering the prices of the two
fuels.
The [golf course] market is in its infancy and sending four pieces of equipment [out] doesnt sound like a whole lot,
but the momentum is starting to swing
heavily toward propane, says Jeremy
Wishart, the deputy director of business
development for PERC, who has worked
closely with the research program.

A winning argument
Fuel savings are just one benefit participating golf courses experienced putting
propane equipment to use through the
program. (The specific savings participating courses achieved can be seen in
the chart on page 34.)
The benefits of the equipment went
beyond cost savings, though. For example, the propane mowers utilized reduced emissions compared with diesel
units, according to PERC and program
participants.
As an example, based on data collected through May 15, PERC reports
www.LPGasmagazine.com

G O L F CO U R S E M A N AG E M E N T

PHOTOS COURTESY OF PERC

A grounds crew employee at Stone


Mountain Golf Club operates a propanepowered Sand Max 521LP bunker rake
in Stone Mountain, Ga. According to
Stone Mountain, the 521LP consumes 0.8
gallons of propane per hour.

participating courses reduced their


greenhouse gas emissions by 15 percent
and carbon monoxide emissions by 50
percent. The equipments potential environmental benefits, touted ahead of the
programs launch, were one aspect that
attracted David H. Robinson, senior director of golf grounds at Marriott Golf.
Were constantly looking at new
ways we can improve our golf course
operations, Robinson says. We look at

the carbon footprint at all our properties. Weve done the calculations, so this
was a great next step to enable us to reduce our carbon footprint even more.
Three Marriott Golf courses participated in the program, including the
Marriott Desert Springs Golf Club in
Palm Desert, Calif.; Stone Mountain
Golf Club in Stone Mountain, Ga.; and
the Vinoy.
We had some great results at all
three, Robinson says. They were all a
little different. Everybody had different
opinions of the equipment and their operation, but for the most part it was all
really positive.
For Robinson, the environmental
benefits achieved switching from diesel
and gasoline to propane are even more
rewarding than the cost savings the participating Marriott courses achieved.
Yes, the savings and dollar amounts
are great, but when we approach these
different environmental programs and
initiatives thats not the first thing we
look at, he says. The first thing is the
impact to the environment and associates, employees, members and guests
and, ultimately, what it does long term in

Participating
golf courses
Golf courses participating in the
propane equipment research and
demonstration program with the
Propane Education & Research
Council, Audubon International
and R&R Products Inc. are:
Chick Evans Golf Course, Morton
Grove, Ill.
Columbus Municipal Golf
Courses, Columbus, Ohio
Eagles Pride Golf Course,
Tacoma, Wash.
Fernandina Beach Golf Club,
Fernandina Beach, Fla.
George Dunne Golf Course, Oak
Forest, Ill.
Marriott Desert Springs Golf
Club, Palm Desert, Calif.
Reston National Golf Course,
Reston, Va.
Stone Mountain Golf Club, Stone
Mountain, Ga.
The Vinoy Renaissance St.
Petersburg Resort & Golf Club,
St. Petersburg, Fla.

a positive way for the golf course. I think


its fitting perfectly right now for us.
Were certainly not at the point
where we are going to replace all of
our equipment globally with propane,
Robinson adds. But I think over the
next couple of years we are really going
to take a closer look at it. We have some
pretty lofty goals here, getting almost everything that can be converted to propane [to propane]. There probably arent
too many courses around doing that.

Out to change history

Says R&R Products Jim


Coker: The quality of some
golf courses is really based
on the mechanic.

www.LPGasmagazine.com

The propane industry and its potential


customers must hear remarks like Robinsons for it to gain traction in a market
that has largely resisted propane to date.
According to Wishart, the historical
claim among turf equipment manufacturers is that propane has no place in the
Continued on page 34
June 2016 LPGas | 33

G O L F CO U R S E M A N AG E M E N T

About the demoed


equipment
Of the nine U.S. golf courses
participating in the research and
demonstration program starting
in October 2014, seven provided
data on four pieces of equipment
available from R&R Products Inc.
Courses trialed the Reel Max 331LP
finish-cut trim mower, the Reel
Max 544LP and 744LP five-gang
fairway mowers, the Greens Max
2200LP riding greens mower and
the Sand Max 521LP bunker rake.

Continued from page 33


golf course market. Theres simply no
demand for it, opponents argue.
But the market has expressed some
interest of late in developing environmental and sustainability programs. So
PERC seized the opportunity to collaborate with Audubon International, a notfor-profit environmental organization
dedicated to providing people with the
education needed to practice responsible
management of land, water, wildlife and
other natural resources.
The reason we partnered with
Audubon International from the start
was because we wanted to partner with
courses and organizations that were
willing to take that next step and take a
little bit of risk, Wishart says. We purposely chose the courses because they
were already well-engaged in environmental programs. They were known for
stepping out on a limb on their own.
At the same time, we knew those guys
would not be afraid to tell us if an area of
our product or service was lacking.
Propane delivery service is not lacking for the Vinoy, which receives fuel locally from Suburban Propane.
Suburban comes every Monday and
fills us up, Corwin says. Weve never
run out, and I cant say that with gasoline or diesel.
In terms of maintenance, the Vinoy
rates its propane equipment with 9s and
34 | LPGas June 2016

How golf course superintendents rate


their propane-powered demo equipment
Golf course/
location

Equipment
model

Fuel
Fuel
Equipment consumption
savings Maintenance
rating (gallons per hour) (dollars)
rating

Chick Evans Golf Course


Reel Max 331LP
Morton Grove, Ill.
Columbus Municipal Golf Courses Reel Max 744LP
Columbus, Ohio
Reel Max 331LP
Greens Max 2200LP
Sand Max 521LP
Eagles Pride Golf Course
Reel Max 744LP
Tacoma, Wash.
Reel Max 331LP
Greens Max 2200LP
Greens Max 2200LP
Fernandina Beach Golf Club
Reel Max 744LP
Fernandina Beach, Fla.
Reel Max 331LP
Greens Max 2200LP
Sand Max 521LP
George Dunne Golf Course
Reel Max 744LP
Oak Forest, Ill.
Greens Max 2200LP
Sand Max 521LP
Marriott Desert Springs Golf Club Reel Max 744LP
Palm Desert, Calif.
Reel Max 331LP
Greens Max 2200LP
Sand Max 521LP
Reston National Golf Course
Reel Max 744LP
Reston, Va.
Greens Max 2200LP
Greens Max 2200LP
Sand Max 521LP
Stone Mountain Golf Club
Reel Max 744LP
Stone Mountain, Ga.
Greens Max 2200LP
Greens Max 2200LP
Sand Max 521LP
The Vinoy Renaissance
Reel Max 544LP
St. Petersburg Resort
Reel Max 331LP
& Golf Club
Greens Max 2200LP
St. Petersburg, Fla.
Sand Max 521LP

40%

10
9
9
9
10
9
9
9
10
5
9
9
10
9
9
8
7
7
7
10
8
8
8
10
10
10
10
10
9
10
10

1.7
1.9
0.6
0.7
1.25
1.5
0.6
0.6
1.7
2
0.6
0.7
1.8
0.8
0.8
1.8
1.9
0.6
0.9
1.5
0.6
0.6
0.7
2
0.7
0.7
0.8
2.2
2.2
0.8
0.8

45%
45%
20%
20%
45%
45%
30%
30%
50%
45%
30%
30%
40%
25%
25%
35%
35%
20%
20%
40%
25%
25%
25%
40%
25%
25%
25%
45%
45%
25%
25%

10
10
10
10
10
9
10
10
10
5
9
9
10
10
10
9
8
7
7
10
7
7
9
10
10
10
10
10
10
9
9

Ratings range from 1 to 10, with 10 being the most favorable.


Data provided by the Propane Education & Research Council, updated through May 15, 2016.

10s out of 10. Most participating courses rate the R&R Products equipment
favorably in terms of maintenance, as
only one course, the Fernandina Beach
Golf Club in Fernandina Beach, Fla.,
gave a maintenance rating of less than
7 out of 10 to a piece of equipment.
Propane offers a number of advan-

tages from an equipment maintenance


standpoint, Corwin says particularly
over diesel.
Were at Tier 4 [diesel technology]
right now, but pretty soon itll be Tier
5, he says. Whats that going to do for
your equipment maintenance budget?
Continued on page 36
www.LPGasmagazine.com

Continued from page 34


Mechanics arent going to be able to
work on them without computers. So
now they are going to send [equipment]
to get worked on. And its $100 an hour
now to send a mower to get worked on
that you can work on in your own shop.
The quality of golf courses is sometimes dependent on their mechanics

MC-331

abilities, adds Jim Coker, director of


propane applications at R&R Products.
I see a lot of these guys are struggling with budgets, he says.

Building more momentum


Although the turf equipment research
program offers a number of positive
takeaways for propane, work remains to

LP/NH3 TRANSPORT TRAILER

Available in 250 or 265 PSI in any size and axle


coniguration.

Countrysides exible design allows for


customization of many features.

Tank has been constructed in full accordance


with the latest requirements of ASME Code
and DOT Specication MC-331.

Stainless subframe option, air ride


suspension and aluminum wheels
are standard.

QUALITY AND CUSTOMERS


COME FIRST

SA-517 steel barrel


is rolled on-site to
ensure a consistent
tank diameter and
lawless it-up.

Countryside's barrel welding is completed


by using state-of-the-art mechanical
sub-arc welders to ensure a perfect weld
every time. All pressure vessel welds have
completed x-ray inspection and heat stress
relief per ASME Code and DOT requirements.

INCREASED PRODUCTION
= FAST DELIVERIES
CALL JOE GREVING AT 1 (877) 783-7739
A DIV ISION OF IOWA ST E E L FA B R I C ATI O N
1525 E Eddy Saylor Pkwy | Osceola, IA 50213 | P 877.783.7739
[email protected] | www.countrysidetank.com

36 | LPGas June 2016

PHOTO BY GRANT GANNON

G O L F CO U R S E M A N AG E M E N T

A grounds crew employee operates


a propane-powered Reel Max 544LP
five-gang fairway mower at the Vinoy
Renaissance St. Petersburg Resort & Golf
Club in St. Petersburg, Fla. The Vinoy
trialed four pieces of propane-powered
equipment in the program, giving the
544LP mower a 10-point overall rating
out of 10, as well as a 10-point score on
maintenance.

make propane a truly viable fuel in the


golf course market.
To make the market grow to the
level that we want, we need at least another manufacturer, Wishart says.
Whether thats John Deere or Toro or
another R&R, however it works out, it
legitimizes what were trying to do.
One positive sign for propane is that
four of the golf courses participating in
the program already purchased their
demo equipment. Plus, another two
courses are in the process of purchasing
their equipment, PERC reports.
Although one intent of the program
is to show golf course superintendents
the capabilities of propane, PERC also
seeks to show equipment manufacturers and propane marketers the potential
of the fuel in the market.
Were building interest and awareness, Wishart says. Once we get course
managers and superintendents asking for
it, youll see other OEM brands coming
on. Theyre watching this really closely.
Once propane is established as a fixture for turf equipment, Wishart envisions the fuel translating to other areas
of golf properties.
A next step in the process of building out a marketing campaign is heating, cooking and outdoor patio heating,
he says. Its showing them everything
propane can do as a fuel. LPG
Grant Gannon, associate editor of Golfdom
magazine, a sister publication to LP Gas
magazine, contributed to this article.
www.LPGasmagazine.com

S U P P LY A N D D I S T R I B U T I O N

Rail REVOLUTION
Companies investing in rail infrastructure
to fill propane supply gaps, market voids
BY KEVIN YANIK
SENIOR EDITOR

[email protected]

Inland Fuel Terminals,


a subsidiary of Santa
Energy Corp., opened a
540,000-gallon propane
rail facility in Plymouth,
Conn. The terminal features
eight tower positions to
unload propane railcars
and four transport loading
bays for outgoing product.
According to Inland Fuel
Terminals, the transports
load at about 600 gallons
per minute.
Photo courtesy of Inland Fuel
Terminals.

38 | LPGas June 2016

rowmarks Kevin Carroll wont soon


forget the winter of 2013-14.
That winter the one of the polar
vortex tested Growmark and other
propane suppliers at an unprecedent-

ed level.
We were sending trucks everywhere, says
Carroll, Growmarks vice president of energy
and logistics. We were sending trucks to the
East Coast, the Gulf Coast,anywhere we could
find propane to bring it back to the Midwest.
Of course, sourcing propane over long
distances by truck isnt the most economical
approach, Carroll says. Greater efficiencies
are desired than the ones achieved through
trucking. So, in the new propane supply environment one of diminished interest from
pipeline companies and record-high supply
suppliers are turning toward rail to make distribution infrastructure investments.
Rail infrastructure related to propane has
evolved rapidly over the last couple of years.
New terminals are being constructed. Existing
terminals are being repurposed. And suppliers
are eagerly exploring the opportunities that remain to enhance regional supply via rail across

the United States.


If a company is dedicated to supplying propane into markets, these are investments that
need to be made, Carroll says. From a return
standpoint, it takes some dedication and commitment to decide youre going to invest in facilities for product thats only used three to six
months of the year. So youve got to be willing
to have a long-term view.
Those companies with propane interests
that invest in rail infrastructure must also be
willing to provide value to both ends of the
supply chain, adds Andy Ronald, vice president of commercial development and national
accounts at Crestwood.
In addition to propane marketers downstream, Ronald says, producers, refiners and
railroad companies must also stand to benefit
from rail facility investments.
Our role with producers and refiners is
simple, Ronald says. We act as their arm to
get value for their product. A matchup to railroads is a value proposition, too. Theyve got to
make money and a fair amount in their freight
rate. They have certain lands that match up
better to development, too.

Rails changed role


Rail used to be a peak-shaving vehicle for
the propane industry, according to Ronald,
www.LPGasmagazine.com

S U P P LY A N D D I S T R I B U T I O N
whose company opened a propane rail
terminal last year in Davisville, R.I.,
and one this spring in Rose Hill, N.C.
(see page 40).
The Rhode Island facility contains
three 60,000-gallon storage tanks and
features a dual truck rack that allows the
loading of up to 50 trucks per day.
Those who have successfully managed the flow to a terminal from the origin are backfilling the void with pretty
good reliability, Ronald says. Our solution in Davisville is weve added a side
track thats given us a lot of surge capacity and reliability.
These are just two recent developments related to the distribution of propane by rail in the U.S. In another investment, Growmark completed a 2015
upgrade to a Canton, S.D., terminal that
it acquired from Magellan Pipeline Co.
The terminal provides storage capacity
of more than 300,000 gallons and the
capability to fill two semi-truck tanks simultaneously, according to Growmark.
In addition, Growmark completed
a small terminal last fall in Paulding,
Ohio, adding rail service to the location
as a co-owner of the facility. Growmark
opened a rail terminal at Progressive
Rails Iowa Traction Railway yard in
Mason City, Iowa, as well.
And the list goes on, from the strategic terminals CHS built across the
Upper Midwest to facility investments
like the one Inland Fuel Terminals made
in Plymouth, Conn., or Sea-3s plans to
expand and repurpose terminals in
Newington, N.H., and Tampa, Fla.
In fact, according to market research
firm ICF International, rail moved about
2.9 billion gallons of propane in about
92,000 railcars in 2013. The 2.9 billion
gallons potentially represent as much
as 20 percent of all the propane gallons
used in the U.S. that year, ICF International adds. The figure is up 10 percent
since 2011 and up 27 percent since 2009,
according to the firm.
Rail is proving to be particularly
valuable in markets containing propane production sites.
The new production sources in the
www.LPGasmagazine.com

United States east, west, north and


principally in the shale are whats
driving the alternative, Ronald says.
[Producers] are looking for higher
values for their product and for development of those markets. Its not really
a slam dunk for suppliers because these
new terminals are expensive to build,
and theres a constant logistical balance

[to strike] in a new terminal.


So, what other factors make for a viable propane rail project?
It would be nice to be in a market
where there arent a lot of other competing projects, Ronald explains. Where
I believe it will be exclusive after we
build it; where you can get a good set of
Continued on page 40

June 2016 LPGas | 39

S U P P LY A N D D I S T R I B U T I O N
Continued from page 39
project economics; where I can really
bring product in and get an acceptable
return on my investment; and where I
can provide a value to the market and
net price back after freight and car
costs.

Forging ahead
The enhanced rail distribution network
thats emerging in the U.S. is poised to Growmark opened a rail distribution terminal last fall at Progressive Rails Iowa Traction
serve propane marketers for years to Railway yard in Mason City, Iowa. Photo courtesy of Growmark.
come. Still, Ronald argues that the rail
terminals that experience the longest-term success will be the
As you develop a terminal that will do 20 million or 40
ones that can provide markets between 20 million and 40 mil- million gallons annually and if youve done your homework
lion gallons per year. Rail facilities that offer less may eventu- and the site is right youre going to be the leanest in the valally struggle to compete, he says.
ley, Ronald says. Youre going to see those bigger ones compete more effectively.
A number of the new or repurposed rail terminals are not
constructed to provide such annual volumes. Yet, theyre helping to fill voids in markets where supply was lacking.
Theres an abundance of product and there are supply gaps
Crestwood opened its Rose Hill rail terminal in Rose Hill,
that need to be filled, says Donald Fernald, CEO at Superior
N.C., just east of the Dixie pipeline.
Energy Systems, which designs and builds rail terminals,
The company says the new facility provides propane
among other services. Thats what these companies want to
marketers across North Carolina and the region with
fill. Some independents are also increasing the size of their
much-needed product reliability. It brings supply to
home storage. Thats normally one or two tanks.
North Carolina, South Carolina and Virginia from multiple
Voids created by pipelines have driven a number of investshale origins.
ments, including a $24 million response by CHS to the Cochin
Andy Ronald, Crestwoods vice president of commerPipeline reversal. CHS invested in five terminals across Mincial development and national accounts, says the location
nesota, North Dakota and Wisconsin as a direct response to
provides propane
the loss of the Cochin Pipeline, which delivered hundreds of
marketers with
millions of gallons of propane to the Midwest each year, inmore convenient
cluding 323 million in 2013, according to ICF International.
rail service seven
Having the CHS rail terminals is one of many solutions
days a week.
to supply customers in an intense winter, says Drew Combs,
According to
vice president of propane at CHS. CHS continues to invest in
Crestwood, a twosupply options and transportation equipment in placing assets
spot truck rack, a
that will meet customer needs.
five-spot rail rack
Rail isnt a perfect solution, though.
and 240,000 galEven with all of the efforts CHS has made, in times of peak
lons of on-site storage allows for fast loading of up to 40
demand, there may still be occasional outages due to demand
trucks per day while eliminating wait times in peak periand location of product, Combs says.
ods. The facility was built to ensure loading times of 15 to
Rail, however, makes sense as a solution to transport natu17 minutes for two trucks, the company adds.
ral gas liquids (NGLs) from shale plays to demand areas, acA fully automated data transmission system also procording to Combs.
vides users with accuracy and timely information.
Coming out of the Bakken, Marcellus or Utica, you really
Max Johnson, Crestwoods supply and asset manager
have to have rail, he says. Weve seen a few new terminals pop
for the Southeast, says activity is already ramping up at
up here and there. Theyre relatively small when they do pop
the new terminal.
up. Not to say we corner the market on rail, but the sizes of the
Our two-spot truck rack and five-spot rail rack are
facilities weve installed are fairly large compared to some of
already in use, and activity is moving into high gear,
the others weve seen in the market.
Johnson says in a press release.
Growmarks Carroll anticipates more rail facilities to come.
CRESTWOOD

Activity moving into high gear


at Crestwoods new rail terminal

40 | LPGas June 2016

www.LPGasmagazine.com

S U P P LY A N D D I S T R I B U T I O N

The National Propane Gas


Associations (NPGA) Rail Advocacy
Task Force formed in 2014 to
enhance relationships with railroads
and the Surface Transportation
Board (STB), a Department of
Transportation agency that regulates the railroad industry.
Andy Ronald, the vice president
of commercial development and
national accounts at Crestwood, is
in his second year chairing that task
force. NPGA has met with the STB to
establish a rapport with the agency,
he says, and the task force has outlined goals for 2016.
This year our goal is to have
meetings with five or six Class A
railroads, Ronald says. We want
to have meetings with their representatives so they know what were
about and that they know were
here. Were continuing to communicate opportunities to railroads.
I think well continue to see rail
facilities pop up in the Midwest, particularly to supplement pipeline supply or replace diminished supply on
pipelines, Carroll says. I think people
want to have alternatives.
The challenges of building or extending pipelines tend to push suppliers
to rail, Ronald adds.
Go try to build a pipeline through
Massachusetts or Rhode Island, he
says. Youll get laughed out of the
state. Yet, those same people need energy and rely on propane. Those same
people will be showing up at the town
meeting in opposition. But there are
places where a property, town, railroad
and the markets needs bring value to
everybody.
New or enhanced rail infrastructure
isnt limited to the U.S., either. As an
example, Plains Midstream Canada is
expanding its Fort Saskatchewan facility and incorporating a truck and rail
terminal there. A new 55,000-barrelsper-day propane-plus fractionator at
www.LPGasmagazine.com

an existing Pembina Pipeline Corp.


fractionation and storage complex in
Redwater, Alberta, is another Canadian
development with rail implications.
The reversal of the Cochin Pipeline
means Edmonton producers and marketers need to rail product to new, farther-away markets than in the past, as
well as rail destined to former Cochin-

served markets, says Andrew Duffy,


eastern NGLs marketing manager at
Superior Gas Liquids, who adds that
his company is shipping more product
by rail lately. The challenge with the
former Cochin market is that new shale
supply is prevalent in the Dakotas and
the Montana area, which displaces Canadian rail to other locations. LPG

Fisher Type 63EGLP Bulk Plant Relief Valve


HIGHER RELIEF CAPACITY AND LOWER MAINTENANCE
THAN MULTI-PORT RELIEF

Innovative Dual Pilot-Operated Technology


for overpressure protection of your Liquid
Petroleum (Propane, Butane, etc.) and
Natural Gas Liquids stationary storage tanks

Multi-Port Relief

Type 63EGLP

Advantages of Type 63EGLP to Multi-Port Relief Valves


9 40% greater relief capacity
9 33% greater surface area protection reduces number of
relief valves/tank
9 Compact prole and 60 lbs lighter reduces installation time
9 Replacement cost of about $2000 for 2 pilots compare to
about $4500 for 4 spring relief valves
9 Pilot spring is in atmosphere instead of in product,
minimizing chance for harshchemicals to attack spring
under compression
UL is a mark owned by Underwriters Laboratories.

D450382T012

Rail advocacy

www.fisher.com
1-800-558-5853

June 2016 LPGas | 41

SAFE T Y

Safety Pulse
BY MEGAN SMALLEY | ASSOCIATE EDITOR

[email protected]

en years have passed since one Michigan-based retailer experienced a major


accident. That incident served as a
An LP Gas magazine
wake-up call to prioritize safety.
survey of propane
According to the retailer, one of the
retailers helps uncover
companys technicians took a shortcut
the hottest safety
when asked to purge some of the companys tanks
issues in the industry.
and fill the remaining propane into a bobtail. InPhotos courtesy of iStock
and the Propane Education stead of walking around the tanks with the hose,
the technician walked on top of them in order to
& Research Council.
reach the tanks more quickly.
42 | LPGas June 2016

But in doing so, the technician missed a step


and slipped off a tank, injuring his shoulder. The
company says the incident brought safety to the
forefront, and its since helped to prevent any
other major accidents.
Cutting corners might not seem like a big deal
if it means getting a job done, but for this propane
technician, it cost him months off work.
Too often, safety remains in the backseat of
employees minds until an incident happens.
Cutting a corner is just one way a propane employee can encounter a major safety issue.
The incident at the Michigan operation was
just one lesson propane retailers shared with
www.LPGasmagazine.com

ISTOCK.COM/MURAT DOMKHOKOV

Retailers, experts share top safety concerns


impacting the propane industry today

Respect the
product. If you lose
respect for propane,
it will bite you.
Ed Anderson, principal of
LP Gas Training & Consulting
LP Gas magazine, which conducted an
anonymous online survey about safety
concerns that exist in the propane industry today. The content that follows
reflects the insights of about 90 retailers
responding to the survey, as well as onthe-record perspectives from industry
safety experts.

Lack of documentation
Propane retailers might be tempted to
skip some steps when inspecting and
documenting a customers facility, but

Errors with leak tests


LP Gas magazine distributed an
anonymous survey to readers on
what they thought were the biggest propane safety concerns,
and leak tests were noted as one
of the top concerns. A key part of
the Gas Check program involves a
leak test.
An anonymous retailer in our
survey shares a story on how performing a leak test protected his
company against a lawsuit.
One of our customers experienced a fire and property loss, he
says. We had a documented leak
test for his system within the prior
year, which greatly reduced our
liability. It emphasized the need to
have current, documented tests
on all of the systems we service.
Retailers emphasize the importance of performing leak tests in
an out-of-gas scenario, on new
customer tanks and during new
tank installations.

www.LPGasmagazine.com

The Propane Education & Research Council updated its Gas Check program this year
based on retailer requests to make it easier to complete.

cutting corners in this area can create a


legal mess for retailers if anything were
to go wrong.
Ed Anderson, principal of LP Gas
Training & Consulting, shares an example: If a technician inspects a customer location that uses propane for
a clothes dryer and fails to note an oil
furnace also on-site, the lack of documentation on the oil furnace could put
the retailer in a tough spot should the
oil furnace ever cause a fire.
Considering that possibility, Anderson explains that retailers need to
document everything they see during
these inspections. Although the Propane Education & Research Councils
(PERC) Gas Check program is option-

al, Anderson strongly suggests retailers use the program as a way to defend
against potential liability cases.
This year, PERC updated its Gas
Check program based on propane
retailer suggestions. Stuart Flatow,
PERCs vice president of safety and
training, says the council simplified
the programs requirements from three
forms to two.
We used to have a Gas System Check
form, a Gas Appliance Check form and
a customer form, Flatow says. Now,
the customer form is included in those
other two forms, so its simplified.
Documentation is a must in liability
cases, Flatow adds, so its often worth
Continued on page 44

PROPANE PERCEPTIONS
From your vantage point, how does
the public perceive propane in
terms of safety?
The public perceives
propane as unsafe: 8%
Not sure: 5%

The public
perceives
propane as
somewhat
safe: 69%

The public perceives


propane as extremely safe: 18%

June 2016 LPGas | 43

SAFE T Y
Continued from page 43
the time spent.
Without documentation, you cant
prove to the courts that you inspected a
customers site, even if thats the truth,
he says. But if you have documentation and its looking good, that helps
you tremendously.

Lack of education, training


For many retailers, safety starts with
education, and a lack of it can truly hurt
a business.
I think there tends to be a lack of
education to the consumer, the upper
management and to the field workers,
Anderson says. Education of all folks
involved in the industry is critical, but

Industry leaders encourage retailers


to educate consumers, workers and
management as a safety precaution.

it can be a difficult task.


Anderson suggests retailers consider PERCs educational materials to
teach consumers about propane and
related appliances, as well as to teach
employees valuable safety tips. He admits the time used educating is not time

Video: More on
propane safety
To discuss top safety topics in the
propane industry further, LP Gas
magazine met with Stuart Flatow,
vice president of safety and training at the Propane Education
& Research Council, and Jay
Johnston, an insurance executive,
business management consultant
and inspirational safety speaker
in the propane industry, who also
serves as the magazines safety
columnist. Check out videos featuring Flatow and Johnston online at
www.youtube.com/user/lpgtv2.

44 | LPGas June 2016

www.LPGasmagazine.com

SAFE T Y
spent making money, but keeping the
business and others safe should be the
first priority.
Greg Noll, executive vice president
of the Propane Marketers Association
of Kansas, agrees education and training should be one of the main focuses
at retail propane operations. Noll says
retailers cant conduct business safely
with uneducated teams.

Sending employees to safety courses


is good, but Noll says its critical to follow up with employees after these sessions to find out what they learned.
You cant just sit an employee in
a classroom for three to five days and
then tell them theyre great for business, Noll explains. Ask them what
they learned. They need that follow-up,
Continued on page 46

EMPLOYEE TRAINING
What methods does your company use to train employees?
In-house training: 83%
PERC e-learning: 67%
State association classes: 63%
Some retailers surveyed say they also use training materials from
insurance companies and equipment manufacturers.

Quality Liftgates
for Every Application

Sideloaders, and Conventional models are all part of the THIEMAN line-up.
For many years THIEMAN has been customizing liftgates to meet specific needs.
If a special need arises, give us a call. From 1000 lb. to 6600 lb. lifting capacities,
THIEMAN can provide a liftgate for almost every application.
Raisi ng Performance To New Lev el s
600 E. Wayne Street Celina, Ohio 45822
Ph: (800) 524-5210 419-586-7727 Fax: (419) 586-9724
Email: [email protected] Website: www.thiemantailgates.com

www.LPGasmagazine.com

June 2016 LPGas | 45

SAFE T Y
Continued from page 45
direction and leadership.

Do-it-yourselfers

Do-it-yourself projects have


become a retailer concern with
the popularity of how-to videos
on YouTube.

46 | LPGas June 2016

Coming out of the Great Recession, it


makes sense that people want to save
money any way possible, including
through do-it-yourself (DIY) home improvement projects. Yet, DIY projects
have become a big concern in many industries, including propane.
[Do-it-yourselfers] many times [get]
inaccurate information from friends or
YouTube that can lead to very dangerous
situations from improper installations,
misuse of containers and equipment,
product leaks and other questionable
practices, says Eric Kuster, the new director of safety and certification for the
National Propane Gas Association.
In 2014, PERC launched a campaign
to advocate against DIY projects with
propane and gas appliances. Flatow

www.LPGasmagazine.com

SAFE T Y

The propane
industry has come
a long way in the
area of safety and
safe handling of our
product. The one
factor we will never
get around is the
do-it-yourselfers.
That is what scares
me the most.

product transfer or crane operation


tasks.
Halstead keeps his employees sharp
by making a monthly safety visit with
a random employee to check whether
individuals are following all of the companys safety standards. Halstead always
shows up unannounced, but he says employees have a list of the things he checks

for so they can prepare ahead of time.


The nice thing about these visits is
we can take corrective action afterward,
Halstead says. Im not doing these to get
employees in trouble. We view it as an
opportunity to correct safety issues.
Routine safety meetings also limit
complacency levels.
Continued on page 48

www.cavagnagroup.com

Wes Welch, owner of WelchGas


says because many do-it-yourselfers get
their information for projects online,
the campaign included a video, a website (www.diysafety.org) and widgets for
propane retailers to post on their sites.
It also encouraged do-it-yourselfers to
submit a form to discuss propane-related projects and gain assistance from
a professional. Since the campaigns
launch, Flatow says, the site has boosted
awareness of the dangers of DIY projects
among do-it-yourselfers, as the site has
had more than 200,000 visitors.
The do-it-yourselfers issue also ties
to the issue of documentation.
The only way to protect a company
against this issue is a documentation
policy, Anderson says. Every time you
send a company representative to a site,
record everything you see on the site.
And a good way to do that in this day
and age is with the cellphones we all
seem to carry all the time.

SAVE MONEY
Dielectric
Protection

SAVE TIME
ENSURE SAFETY

UL is a mark owned by Underwriters Laboratories


NFPA is a mark owned by National Fire Protection Association

American Inspired, Italian Engineered, Service Tech Approved!

The Kosan Plus Guardian Regulator is an all in one solution that


does not require the purchase of separate dielectric protections.
Save money, time, and ensure safety of your installation from
potential leaks. Watch the Kosan + Guardian Tutorial on YouTube!

Complacency on the job


Repetitive tasks lead to complacency,
yet complacency can cause serious accidents because guards are let down.
Randy Halstead, manager of propane
operations for HomeWorks Tri-County
Propane, says he has seen complacency
issues emerge when employees perform
www.LPGasmagazine.com

Cavagna North America Inc.


50 Napoleon Court, Somerset NJ 08873
Phone 732-469-2100 - Fax 732 469 3344
Cavagna West
1393 Dodson Way-A Riverside, CA 92507
Phone 732-469-2100 - Fax 732 469 3344

[email protected]

June 2016 LPGas | 47

SAFE T Y
Continued from page 47
Halstead says retailers should host
at least one monthly safety meeting.
He created a calendar for HomeWorks
Tri-County Propane that lists topics to
discuss at each months meeting, including hazmat refreshers, Department of
Transportation safety audits, defensive
driving tips and product transfer tips.

Halstead adds that hes open to employees suggesting safety topics they
want to discuss.
One time, I had a guy come up to
me and say that he wanted to know more
about poisonous plants because he noticed some in the field during deliveries,
Halstead says. So we got together and
had a discussion on that topic.

Driver distraction
With advancing technologies, driver
distraction has become a more prominent issue. While the main duty of propane delivery drivers is to deliver fuel,
technologies might tempt drivers for

Final safety tips

ts easy to get complacent


when you are working with a
product that you rarely see. Always
be aware that what we do is dangerous and sometimes deadly.
Never forget why we see so many
warning labels in our industry.
Nathan Charette, operations
manager with Silver Valley Propane

The Propane Safety Expert

SafetyIdeas
Stay on top of safety with Jays monthly

Newsletter
and Safety Notes
By Safety Leader Jay Johnston
Subscribe Today By Going Online To
www.TheSafetyLeader.com
Or call 952-935-5350

48 | LPGas June 2016

bout 20 years ago, we started


paying our drivers and service techs a safe driving bonus,
[which] is paid [to them] quarterly.
Any accidents, mishaps, bumbles,
wrecker bills from being stuck or
lost came out of that bonus. Our
wrecker bills went to almost $0
immediately. It made everyone
more accountable for their actions.
Wes Welch,
owner of WelchGas

ne of the most dreaded


topics to talk about in propane safety is how to address an
accident when it takes place. Be
prepared to address with customers and the public because one
incident can be readily learned
about on social media.
Greg Noll, executive
vice president of the Propane
Marketers Association of Kansas

heres a host of safety training and informational materials out there in print and other
media forms. Its invaluable to the
industry, and being knowledgeable of those resources is key.
Randy Warner, vice president
of safety for Ferrellgas

www.LPGasmagazine.com

SAFE T Y

Efective initial and


ongoing training
of employees is
critical to any safety
program.

COMPANY SAFETY MEETINGS


How often does your company host safety meetings?
Daily: 3%
Weekly: 13%
Monthly: 48%

Eric Kuster, NPGAs director


of safety and certification

Every other month: 8%


No set schedule: 28%

their attention.
Although distractions such as employee fatigue or the radio have been
around for decades, modern technologies have increased the likelihood of
driver distraction.
Randy Warner, vice president of
safety for Ferrellgas, says this issue is
unlikely to diminish and that its grown
in recent years.

Some retailers surveyed say they conduct safety meetings quarterly.

Developing regulations on technology use in the cab can touch on personal space, as individuals smartphones,
for example, cannot be monitored well
by management. Warner suggests at
least discussing distraction issues like

smartphones with drivers regularly.


The constant struggle is in trying
to create better driving habits, Warner
says. You just need constant reminders
to the drivers on the dangers of using
cellphones in the cab. LPG

MTankCo Supply, LLC

MTankCo.com

7074 302 Industrial Dr.


Southaven, MS 38671

ph 800.235.3528 | fax 662.349.1346


[email protected]

MTankCo is your dedicated


equipment distributor offering a full line of

SAFETY PRODUCTS.
Electric
Manometer
with Hose
Item #EM151

17 lb. Magnesium Anode Bag


Item #17

Vapor, Relief,
Liquid Decal
Item #V8

Vinyl Placard
Diamond Decal
Item #1075-2 LPG

www.LPGasmagazine.com

Magnehelic Gauge
0-20 WC with Case
and Access
Item #2020

5 -Second Leak
Detector
Item #
Sherlock Gallon

June 2016 LPGas | 49

COLUMNIST | JAY JOHNSTON

The why in safety


Leaders must ask this key question and train their workers to do the same

y toddler-aged grandchildren are constantly asking


Why? I get frustrated
when I forget the importance of asking Why? in the process
of achieving an understanding.
As we age, many of us associate the
word with work rather than understanding. This is the result of decades
of leaders too busy to educate, offering only the lazy answer of because.
Because that is the way we have always
done it.
Because why? Why do we do it this
way? I remember an old family story
about a woman who always cut the
ends off her meatloaf before putting
it in the pan. One day, someone asked
her why. Her answer was because
thats the way her mom always did it.
One curious call to her mom turned
up the logical answer moms only
pan was too small for 3 pounds of
meatloaf.
When it comes to safety in the
workplace, it is that understanding
of why that gives us the cognitive
ability to make logical connections as
to why things happen. For example,
I know from personal experiences
why we perform a leak check on every
out-of-gas situation: To comply with
code and prevent an accident due to a
leak in the system. I know this because
I have had clients whose employees
failed to perform a leak check and all
stakeholders suffered emotional and
economic consequences.

Leadership
The challenge for all leadership is to
effectively provide answers with specific reasons to the question Why?
50 | LPGas June 2016

Leaders need to provide


answers with good reasons
to the question Why?
It starts before that training those in
the field, at the plant, in the office and
even customers to care to ask Why?
To some leaders, silence is golden
and no news is good news until an
accident or some negative situation
darkens their doorstep. Only then do
they seek understanding too late in the
game, hat in hand.
Knowing why is a critical key to
implementation, yet many managers
and individuals in leadership roles get
too comfortable to ask Why? This
applies to all leadership and propane
industry stakeholders.
I believe we all have an obligation
to teach, train and motivate truthful
behavior. This involves inspecting
what we expect and holding managers,
as well as employees, accountable to
rules, guidelines, policies and codes
that are known to prevent accidents.

Training
Training is a requirement that includes
job-specific education and continuing
education as specified by Occupational
Safety and Health Administration,
Department of Transportation and
National Fire Protection Association
applicable codes; any state regulations;
and most marketer and supplier company policies.
Many times, companies have to face
the economic feasibility of compliance

along with the need to achieve and


document training. There are many
resources for training, including state
association-sponsored and discounted
regional sessions, in-house training and
industry e-learning. It is less important
where that training occurs than the
more important issue of achieving and
documenting the understanding. In the
end, we want them to know why.
The propane industry is blessed
with many seasoned trainers who are
veterans of safety management, with
decades of industry experience. It is
time we recognize those individuals
who teach, train and make a difference
in the lives of industry employees every
day.

Your next meeting


I believe the why in safety holds the
key to compliance. At your next safety
or management meeting, discuss the
topic and ask for input regarding concerns about why some important stuff
is not happening in certain situations.
If management doesnt have the
courage to ask Why? in the quest to
achieve understanding, how can it expect the workforce to seek answers that
turn that question into reason, reason
into action and action into profitable
results?
Of course, the simple answer to why
we must do things safely in the propane
industry is because its the right thing
to do. LPG
Jay Johnston is an insurance executive,
business management consultant and inspirational safety speaker in the propane
industry. He can be reached at jay@
thesafetyleader.com or 612-802-0663.
www.LPGasmagazine.com

201
7N
om
ina Now A
tion cce
s th ptin
rou g
gh S
ept

. 30
, 20
16

Guests gather. Room quiets. Spotlight shines.

A propane industry career is


celebrated in this moment.
About 130 attendees joined us in Nashville as we inducted the Class of 2016.
Now we're already looking ahead to 2017. Do you know one of the next
inductees? Submit your nominations at LPGasHallofFame.com.
For more information, contact Brian Richesson at
[email protected] or 216-706-3748.

COLUMNIST | TOM JAENICKE

Points of contact
Collecting customer email addresses, cellphone numbers good for business

1. Ask: How can we best reach


you in an emergency? This will
normally yield your customers
cellphone numbers. Then ask:
OK, what is your email address,
as well? These two questions will
work more than 90 percent of the
time.

2. Have the email address and cellphone number request as required


fields on your new-customer gas
service applications.
52 | LPGas June 2016

ISTOCK.COM/PONYWANG

hen I ask propane retailers


how many customer email
addresses they have on file
in a usable format, they
usually groan and say Not as many
as I should have or We just started
thinking about collecting those. The
response is even more painful when I
ask about cellphone numbers.
Smartly using your customers
email addresses and cellphone numbers (for reasons like direct calls and
appointment texts) is good for your
business and for creating a great customer experience.
These two direct communication
links to your customers can be used
in areas of safety, sales and service,
depending on what you are trying to
accomplish with each customer. (In a
future column, I will dive into some of
the ways that this targeted customer
information can be used to strengthen
your business and your relationship
with your customers.)
First you need to get those email
addresses and cellphone numbers
before you can plan how to use them.
Here are nine ways that work:

Regularly update customer


contact information to improve
your customers experiences.
3. Have a one-month contest among
your customer service representatives (CSR) to see who can collect
the most customer email addresses
and cellphone numbers. Set a goal,
pay a dollar per name and have a
group prize if the goal is reached.
The key is to let your CSR team
know why it is so important to collect this information.

4. At the start of every inbound customer call, update your customers


or prospects information by confirming or asking for their current
email address and cellphone number to make sure their profile is up
to date.

5. Have service technicians collect


customer email addresses and cellphone numbers while on every service call for purposes like follow-up
and safety recall information.

6. Sales staff should collect email addresses and cellphone numbers to

follow up on proposals and sales orders. A lead-in example is: Let me


send you a quick email confirming
everything we talked about today.

7. Acquire as part of an online bill pay


application.

8. Acquire as part of price protection


program sign-ups.

9. Acquire as part of any change in


service level such as budget, keepfull, will-call and cash on delivery.
While abuse of customer contact
information can hurt you with optouts, it is much more likely that a
too-conservative approach will cause
you to not communicate enough with
customers and defeat the purpose of
having the contact information.
Lets work first on obtaining the
contact information from your customers, and then Ill help you to avoid
the mine fields regarding the use of a
customers personal contact information to give improved service.
The use of contact information to
communicate with your customers is
not meant to take the place of traditional marketing such as newsletters,
social media and websites. It is just
a cost-effective and targeted way to
supplement and enhance your communications, setting you apart from
competitors. LPG
Tom Jaenicke is vice president of propane
marketing services for Warm Thoughts
Communications. He can be reached
at [email protected] or by
calling 810-252-7855.
www.LPGasmagazine.com

Reunion Resort Orlando, Fla.


October 5-7, 2016
LP Gas, using its position as a market-leading media brand, is proud to present the next
evolution of propane commerce in a changing industry. he LP Gas Growth Summit will
ofer retailers viable alternatives for growing gallons beyond home heating, while ofering
manufacturers a chance to showcase their products to an exclusive, vetted group of top
retailers in an intimate one-on-one setting.

Learn more about how to grow your year-round volume with:


On- and of-road propane applications
New and emerging technologies
Techniques to grow your business

How is this diferent from a trade show?

No registration costs to attend


LP Gas will pay for all of your lodging AND meals. Just pay for your light!
Meet with vendors in a prescheduled, one-on-one setting.
Great educational, social and networking opportunities, including:
golf, cocktail parties, a barbecue and more

Attendance is limited so to reserve your space,


or to ind out more about this new and exciting concept, contact
Brian Richesson of LP Gas at 216-706-3748 or [email protected].

GUEST COLUMNIST | JERRY SCHIMMEL

A foolproof program
Proper safety procedures in lockstep with compliance, risk mitigation

ropane marketers are faced


with a variety of challenges
regarding safety, compliance
and risk management in todays
market.
Risk management should be a priority for all propane marketers. Developing and implementing an effective
safety program in your company will
provide management with an effective
tool to enhance compliance and risk
mitigation.
The goal of your companys safety
program should be focused on employing industry best practices and
following local, state and national
codes and regulations.
There are many components to
consider when developing a safety
program for your company. Marketers need to develop a vision; establish
goals and expectations; implement
consistent plans, programs and procedures; and take corrective action when
required.
Policies and procedures should be
written, consistent, current, monitored
and included as part of the company
orientation program. They should be
specific and clearly identify company
rules and how they apply. Clearly defined policies and procedures enable
the workforce to understand individual and team responsibilities and foster
a climate of collaboration and pride.

and impedes the ability to access critical data and information that managers
require.
Most service technicians or drivers
today are required to complete a variety
of tasks as they service their customers.
Many service technicians are completing their safety inspections on paper
forms, which get processed back at the
office and eventually filed away. Collected data shows that 30 percent of all
safety documentation in these files is
typically inaccurate and/or incomplete,
which creates unnecessary risk.
The solution to these common
mistakes is technology. Utilizing information technology, along with a
systematic approach to managing important safety documentation and recordkeeping, will allow management to
effectively improve its safety practices
and the companys risk profile.
Every propane marketer has a range
of tasks and responsibilities in managing the propane business. Marketers
are constantly multitasking and rarely
have the time or resources to analyze
important customer safety documentation. Preparing for an audit or inspection can be an extremely laborious task.
Preparing the requested documentation for litigation, all of which will be
carefully scrutinized, will consume
many hours of employees time.

Current program review


Documentation and compliance
A critical and often overlooked area is
safety documentation and compliance
information.
Many propane marketers continue
to use a paper and file system. This
method results in a lot of human error
54 | LPGas June 2016

Consider reviewing your current


safety documentation and compliance
program, which is an area critical to
maintaining safety for your customers
and employees.
As a manager, ask yourself these
questions. Or better yet, at your com-

panys next safety meeting, review


these questions with your staff, and be
honest.
Do I have policies and procedures
for my organization? Are they written?
Are they updated and reviewed?
How do I train my new employees? Do I utilize outside safety consultants? Do I have a formal orientation
process?
Can I easily identify every customer who does not have a safety inspection on file?
Can I identify if I have expired
regulators or DOT cylinders that
need to be requalified?
Am I compliant with NFPA 58
cathodic protection requirements?
Do I require an initial duty-towarn process to be completed for all
new customers?
Do I have electronic storage
and retrieval of important safety and
compliance documentation for my
customers?
After you have completed this selfassessment exercise, you will have a
better understanding of your current
safety program, its strengths and areas
in need of improvement. Take the steps
necessary to utilize available technology to organize your safety documentation and compliance data more
efficiently. Putting safety first is the
right thing to do. By doing so, you will
protect your customers, employees and
your company. LPG
Jerry Schimmel is vice president at P3
Propane Safety, a division of Boston
Environmental. He can be reached at
[email protected]
or 401-481-2281.
www.LPGasmagazine.com

Terminal tractor

Gas detection training app

TICO Manufacturings Pro-Spotter terminal tractor incorporates a propane engine


that is designed and engineered by Power
Solutions International Inc. (PSI). The terminal tractors are used at distribution centers,
rail terminals and ports. TICOs propanefueled tractor represents a new opportunity
for terminals and ports to reduce emissions
and lower total vehicle operation costs by
saving on fuel and maintenance. TICO says it

Industrial Scientific released the Gas Detection


Made Easy free training app and reference tool for
gas detection information. The app assists anyone
who wants to learn about gas detection techniques
and technologies. The company says the app is an
ideal study tool to reinforce in-person training or a
quick reference to refresh gas detection knowledge.
The app covers sensor technologies, gas hazards, gas monitoring applications and current regulations governing gas detection. Key features in the
app include the ability to take notes, send notes via email and add bookmarks to items. The app can be downloaded from the Apple App Store or
the Google Play Store, and it can be accessed online.
For more information, visit www.indsci.com.

Propane cylinder holder

is running pilot programs across the United


States and will begin taking orders for the
new tractor in late summer of this year, with
deliveries expected to begin in late fall. PSI
adds that its 8.8-liter engine with an Allison
automatic transmission fulfills the power,
efficiency, emissions and fuel-flexibility
demands across a range of applications,
including medium-duty trucks, buses and
recreational vehicles.
For more information, visit www.
ticotractors.com.

Nash Innovations Tank Tire serves as a


protective safety solution to fit 10-, 11-, 20-,
30- and 40-pound propane tanks. The Tank
Tire is a specialized rubber polymer ring
that fits on the foot ring of a propane tank
to boost tank safety. The rubber material
adds stability and cushioning to the sharp
metal foot ring on tanks. Tank Tire also
eliminates the flow of electricity from any
surface through the foot ring, and it ultimately protects the tank by reducing the
possibility of unintentional, premature gas
ignition due to electrostatic discharge. The
Tank Tire prevents tears, scratches, dents
and surface damage from the base of propane tanks. The company adds
that the solution is built to withstand harsh environments and weather.
For more information, visit www.tanktire.com.

Wi-Fi remote-control system

Metallically shielded CSST

Naviens newest product, NaviLink, is a Wi-Fi remotecontrol system that allows commercial and residential
users to communicate with their Navien systems anywhere
in the world. According to the company, NaviLink attaches
easily to all Navien water heaters and boilers, including
the NPE, NCB and NHB series. Once its installed, users can
download the free NaviLink mobile application on their
smartphones or tablets. From there, they can control temperatures remotely, accessing usage data and receiving
diagnostic notifications, Navien adds.
For more information, visit www.us.navien.com.

Titeflex Corp. says more protection against lightning


strikes has been built into protective-jacketed CSST products. The companys FlashShield is a metallically shielded
flexible gas piping system, which includes a three-layer
protective jacket. The metallic shield is the workhorse
when it comes to dissipating and mitigating unintended
electrical arcs to its surface. The shield is sandwiched
between two layers of plastic jacketing. The system design
incorporates a metallic shield-to-fitting connection to
establish electrical continuity for optimal performance.
For more information, visit www.gastite.com.

www.LPGasmagazine.com

June 2016 LPGas | 55

NEW PRODUC TS

Actuator
Hanbay unveiled a new feature for its R-Series, explosionproof actuator. The actuator, built with a CSA/UL-certified,
explosion-proof enclosure, now
comes with an optional
spring return fail-safe feature that ensures valve
automation in hazardous
locations is quickly shut
off during power outages.
Built with a brushless DC
motor, the actuator is
available in several control
options that deliver precise
flow control for open-close
or multi-turn applications. Hanbay
specializes in manufacturing compact
actuators capable of
micro-positioning on miniature valves.
For more information about the
R-Series actuator, visit www.hanbayinc.com.

Propane tank holder


Kram Industries EZGO is a stabilization device designed
for standard 20-, 30- or 40-pound propane tanks.
Measuring 15 inches in length and width, EZGO remains
stable while keeping the product sleek, non-bulky and
easy to transport, the company reports. The device features eight supports around the center circle and four
feet on each corner to maximize safety and stability. It
props the propane tank off the ground, protecting the
homeowners patio or porch, and protects vehicles from
dirt, grease and
scratches. The product is also useful with
RVs, at trade shows
and commercial sites,
or while camping,
tailgating or barbecuing. The device does
not require additional
support from tapes
or bungee cords to
remain secure, the
company adds.
For more information, visit www.
propane-ezgo.com.
56 | LPGas June 2016

Vertical autogas dispenser


The Trinity vertical autogas dispenser, available from
Bergquist, takes up less space than traditional horizontal
tanks, according to the companies. This gives users more
room for additional tanks and propane accessories. The
footprint, including the skid dispenser, is 15 feet tall by
4 feet wide and weighs 3,000 pounds. The modular skid
comes completely piped for easy connection to the vertical tank. The vertical tank also features a larger capacity
than horizontal tanks. In addition, the tanks vertical positioning can bring the container closer to empty through
a funnel effect, lessening the frequency of tank fills, the
companies add.
For more information, visit www.bergquistinc.com.

Bobtail
Westmor Industries Blueline QX bobtail holds 3,700 gallons on a single-axle unit, maximizing the bobtails full load
potential. The bobtails capacity allows users to deliver
more, increase profits and decrease expenses, according to
the company. Westmor says users can receive payback on
the bobtail within two years or, when maximizing the full
load and drop potential, in less than six months. Customers
can also compare profitability of their current bobtails with
the Blueline QX bobtail online. Additionally, the company
designed the bobtail for easy operation and maintenance.
For more information, visit www.westmor-ind.com.

www.LPGasmagazine.com

BLIND BOX REPLY OPTIONS

CLASSIFIED ADVERTISING
All ads must be prepaid by the classified closing date. Visa, Mastercard, & American
Express orders are accepted over the phone. Please send you ad copy with prepayment to the following address: LP/Gas, Attn: Kelli Velasquez, 1360 E. 9th St., Ste. 1070,
Cleveland, OH 44114.
CONTACT SALES EXECUTIVE KELLI VELASQUEZ FOR RATES TODAY!
Direct Dial: 216-706-3767
Email: [email protected]
Fax: 253-484-3080

Mail:

LPG MAGAZINE / BLIND BOX #


1360 E. 9TH ST., STE. 1070
CLEVELAND, OH 44114

Email:

[email protected]

Please specify magazine name and blind


box number in your correspondence.

CLASSIFIED SHOWCASE

FOR SALE

www.LPGasmagazine.com

June 2016 LPGas | 57

CLASSIFIED SHOWCASE

FOR SALE (contd)

58 | LPGas June 2016

www.LPGasmagazine.com

FOR SALE (contd)

CLASSIFIED SHOWCASE

www.
magazine

.com

www.LPGasmagazine.com

June 2016 LPGas | 59

CLASSIFIED SHOWCASE

FOR SALE (contd)

R Stamp Repair Shop


V, K, I, P Inspections, Testing

Repairs, Parts
Service Bodies

New, Used Quality Bobtails & Crane Trucks

www.kurtztruckequipment.com
(800) 848-3468

enhance
Command immediate attention and get fast action with the dynamics of classified advertising!

60 | LPGas June 2016

your ad with color


www.LPGasmagazine.com

FOR SALE (contd)

BUSINESS SERVICES

2012 Westmor 11.5G LP Gas Transport.


Air Ride, Air Controlled, Hydraulic Drive, Bought
New 2/12, Approx. 36K miles, $130,000.
Call 573-547-5658 or 573-517-1561. 6/16

2008 GMC C-7500: 3499 Barrel Haney Guidemaster,


V-8 Propane - Automatic, LCII Printer in cab,
118,059 Miles, $49,000. Call 516-924-6824. 7/16

2013 M2 Frthler 3560 Allison, 6 sp, 300 hp,


8.3 Cummins, 3000 gal, air control, 4 Function
Base, air ride & cab, diff lock, alum wheels
$117,500.00. 573-547-5658 or 517-1561. 6/16

CLASSIFIED SHOWCASE

FOR SALE:
2007 Freightliner M2 Bobtail
with 3200 gallon tank, standard transmission,
160,500 mi.
For details call Robert @
800-826-5734 or 254-744-8378.
7/16

BUSINESS SERVICES

CAREER OPPORTUNITIES

Place your ad in an upcoming issue


Ad Closing

August 2016

7/8/16

To place your classified ad, call Kelli Velasquez

September 2016

8/8/16

(216) 706-3767

www.LPGasmagazine.com

June 2016 LPGas | 61

CAREER OPPORTUNITIES

FUEL DELIVERY FORMS

SOFTWARE

With locations in Al, FL, GA, MD, MN, MS,


NC, TN, VA, WV and WI, ThompsonGas is one
of the fastest growing propane companies
in the country. And, were buying propane
companies across the U.S. at the same rapid
pace. We believe that our people are what
matter most. If youre an expert in operations

CLASSIFIED SHOWCASE

management (single or multi-unit), sales,


supply, safety, service, delivery, systems or
accounting, we want to talk to you. Wherever
you are east or west, north or south if
you are good at what you do, email us at
[email protected].

6/16

SOFTWARE

EQUIPMENT FOR SALE

WANTED
WANTED TO BUY, LP OR NH3 TRAILERS,
9,000-15,000
GALLON,
125-265
PSI,
READY TO WORK, OR READY TO
REBUILD,
CALL
BRAD,
219-8805635, DO YOU KNOW WHERE ONE IS?
FINDERS FEE $$$$$$$$
5/16

DID YOU
KNOW?
All LP Gas classifieds are
posted online.

lpgasmagazine.com
62 | LPGas June 2016

www.LPGasmagazine.com

COMPANIES TO WATCH

Axmen Propane
Traditional marketing strategy proves effective for Montana-based retailer
BY MEGAN SMALLEY | ASSOCIATE EDITOR

[email protected]

he sincerity of old-school marketing techniques often trumps


newer marketing methods for
one Montana retailer.
From April through August,
Axmen Propane, based in Frenchtown, Mont., dedicates one day a week
to door-to-door marketing in the
communities it serves.
Mike Svoboda, Axmens managing
partner, asks all of his delivery drivers and service technicians to discuss
the companys product offerings with
potential customers they visit on those
days. If a customer isnt home, employees leave a door hanger or magnet with
information for potential customers.
This marketing activity isnt just a
random exercise to keep workers busy
in the summer. Instead, Svoboda says
its a strategic way to achieve residential growth in the offseason by trying
to gain customers along the companys
existing routes.
Svoboda admits this strategy is
nothing new hes used it for about
two decades at a couple of companies.
Yet, the approach has been highly
effective in building residential business. Svoboda initiated the strategy at
Axmen in 2007 when he started with
the company and, within four years,
the customer base grew by 33 percent.
And Axmen has seen steady growth in
customers since then.
Residential accounts are key for
propane retailers in western Montana,
as Svoboda says there arent many opportunities for commercial accounts
in the area.
Were in a mountainous area,
64 | LPGas June 2016

he says. Theres no farming in this


region, really. You cant get into irrigation or other types of accounts, so for
us, residential is key.
For Axmen, the traditional marketing approach wins more residential
customers today than it had in previous years. Svoboda says taking the
time to meet with prospective customers often speaks volumes to them.
We get a lot of results out of the
old-fashioned method, he says.
Weve received a lot of callbacks on
our door-hanger method, even if the
potential customer didnt see the technician stop by.
The door-to-door marketing efforts also help Axmen retain current
customers. Drivers and technicians
leave thank-you notes with customers
periodically to show them the company cares.
As a result of successful door-todoor marketing efforts and customer
feedback, Axmen recently opened a
new plant in Bigfork, Mont. The new
facility is the companys fifth location
in the state.

Axmen Propane opened its fifth


location, in Bigfork, Mont., this
year. Door-to-door marketing has
contributed to company growth.
FOUNDED: 2000
HEADQUARTERS:
Frenchtown, Mont.
OWNERS: Grant, Guy, Aaron and
Jake Hanson; and Mike Svoboda
PROPANE SALES: 2 million
annual gallons
EMPLOYEES: 12
CUSTOMERS: 3,000
ONLINE:
www.axmenpropane.com

I sent out a survey to the people


in Big Fork, and the people there said
they would like to have local service
with a propane retailer, Svoboda says.
With no propane retail facility in that
area, we thought it was a good time to
move in. LPG
www.LPGasmagazine.com

Have you
thought
about
selling?

Talk to us. With our long history


of customer satisfaction, youll
rest easy about the transition.
If you feel the time is right to sell your business,
consider calling Suburban Propane. With over 85 years
of experience in the propane industry, you can trust
us to see the process through with the highest level of
efficiency and integrity:
Youll receive a purchase plan thats clear, fexible,
and promptly executed
Your employees will be respected for their years
of service, their knowledge of your customers and
the foundation you and your employees have put in
place to service those customers over the years
Your valued customers will receive exceptional
service during and after the transition
For more information contact Mark Wienberg,
Chief Development Officer at (973) 503-9628
or [email protected].

Where do propane marketers


worldwide ind the best quality
valves and regulators?
Right here in our back yard.
Ever since the beginnings of the propane
industry, marketers have
always been able to depend on
original RegO valves and regulators
for dependable performance
and reliability.
Products that are still

Made in America
and supported by the inest
distributor network
in the world.
Dont be fooled by cheap imitations.
Buy original RegO products
from RegO Authorized Distributors.

We Speak Your
Language...

100 RegO Drive, Elon NC 27244 USA


Phone: (336) 449-7707 Fax: (336) 449-6594

www.regoproducts.com

You might also like