LP Gas - June 2016
LP Gas - June 2016
LP Gas - June 2016
com
JUNE 2016
Safety Pulse
Retailers, experts share top
safety concerns impacting
the propane industry today
VOLUME 76 | NUMBER 6
ELITE
SIGNATURE
CLASSIC
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
N PROP
A
SO
N
RU
Domestic
Propane Tanks
1000gal
500gal
www.metsa.com
+1(800) 609-TANK
VO L U M E 76
NUMBER 6
JUNE 2016
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
38
42
On the cover | Photo courtesy of Istock.com/Murat Domkhokov
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ADD
The Right Propane
Software Solution
64
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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
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,
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www.LPGasmagazine.com
951-277-5180 800-422-2866
Fax: 951-277-5170
9168 Stellar Court, Corona, CA 92883
www.laigroup.com
[email protected]
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.
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.
[email protected]
www.LPGasmagazine.com
PhotoDrop
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
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.
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:
E D P L P . N E T
[NEWS
B R I E F S]
[ 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 ]
Gross Proit
(Per gallon)
$1.17
0.80
0.16
1.48
$0.90
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
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
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.
[NEWS
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.
[NEWS
B R I E F S]
Continued from page 12
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.
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.
ERIC KRUGER
NANCY COOP
J.D. BAIN
VP of Propane Acquisitions
913-661-1540
510-418-7839
352-250-5675
ERIC KRUGER
VP of Propane Acquisitions
913-661-1540
[email protected]
| KEN ALBRECHT
[NEWS
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
westmor-ind.com
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
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.
www.LPGasmagazine.com
Go to propanemarc.com
to download this program today.
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
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
[ 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.
330-296-7519 | tanktrailerrepair.com
20 | LPGas June 2016
www.LPGasmagazine.com
FOCUS ON
SPONSORED BY
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
[NEWS BRIEFS]
www.LPGasmagazine.com
www.LPGasmagazine.com
[IN
T H E K N O W: S A F E T Y ]
Q
A
Jamerson McLean
Corporation
Liability Assessment Services
Insured Locations
quality
service
innovation
[ E V E N T S]
www.LPGasmagazine.com
1,000
average of previous
10 winters
winter 2015-16
difference
from normal
0%
800
-17%
-27%
600
-14%
-26%
400
200
0
-12%
February
March
Source: U.S. Energy Information Administration, Short-Term Energy Outlook, April 2016
3,500
3,000
0
11-12
12-13 13-14
14-15
15-16
ISTOCK.COM/MCCAIG
ON THE ROAD
TO A SAFER
TOMORROW
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 ]
[FIRE
PR E V E N T I O N]
www.LPGasmagazine.com
IT DOESNT RUST!
Tel: 866.470.3737
E-mail: [email protected]
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G O L F CO U R S E M A N AG E M E N T
Slice
of the
market
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
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.
www.LPGasmagazine.com
G O L F CO U R S E M A N AG E M E N T
Equipment
model
Fuel
Fuel
Equipment consumption
savings Maintenance
rating (gallons per hour) (dollars)
rating
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
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7
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7
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9
9
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-
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G O L F CO U R S E M A N AG E M E N T
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
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
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
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
www.LPGasmagazine.com
S U P P LY A N D D I S T R I B U T I O N
Multi-Port Relief
Type 63EGLP
D450382T012
Rail advocacy
www.fisher.com
1-800-558-5853
SAFE T Y
Safety Pulse
BY MEGAN SMALLEY | ASSOCIATE EDITOR
ISTOCK.COM/MURAT DOMKHOKOV
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
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.
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%
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.
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.
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.
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.
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Email: [email protected] Website: www.thiemantailgates.com
www.LPGasmagazine.com
SAFE T Y
Continued from page 45
direction and leadership.
Do-it-yourselfers
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.
www.cavagnagroup.com
SAVE MONEY
Dielectric
Protection
SAVE TIME
ENSURE SAFETY
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
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
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
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.
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
MTankCo.com
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Item #2020
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Sherlock Gallon
Leadership
The challenge for all leadership is to
effectively provide answers with specific reasons to the question Why?
50 | LPGas June 2016
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
201
7N
om
ina Now A
tion cce
s th ptin
rou g
gh S
ept
. 30
, 20
16
Points of contact
Collecting customer email addresses, cellphone numbers good for business
ISTOCK.COM/PONYWANG
A foolproof program
Proper safety procedures in lockstep with compliance, risk mitigation
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.
Terminal tractor
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.
www.LPGasmagazine.com
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.
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
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:
Email:
CLASSIFIED SHOWCASE
FOR SALE
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CLASSIFIED SHOWCASE
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CLASSIFIED SHOWCASE
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magazine
.com
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CLASSIFIED SHOWCASE
Repairs, Parts
Service Bodies
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(800) 848-3468
enhance
Command immediate attention and get fast action with the dynamics of classified advertising!
BUSINESS SERVICES
CLASSIFIED SHOWCASE
FOR SALE:
2007 Freightliner M2 Bobtail
with 3200 gallon tank, standard transmission,
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For details call Robert @
800-826-5734 or 254-744-8378.
7/16
BUSINESS SERVICES
CAREER OPPORTUNITIES
August 2016
7/8/16
September 2016
8/8/16
(216) 706-3767
www.LPGasmagazine.com
CAREER OPPORTUNITIES
SOFTWARE
CLASSIFIED SHOWCASE
6/16
SOFTWARE
WANTED
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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
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