LPGas octubre 2013

OCTOBER 2013

Training Day: Marketers learn how to make the sale

Q&A: Former industry leader with autogas ties heads forklift association

Snapshot: Pennsylvania’s Independence Propane

THE PROPANE INDUSTRY’S PREMIER INFORMATION SOURCE | www.LPGASmagazine.com

Piloting progressPropane brings

spark-ignited engine

back to Kentucky

25 years after

fatal crash

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Others talk about it...we’ve made QUALITY ourname for over 50 years!

Quality Steel was founded in 1957 witha single purpose in mind...build a betterpropane tank. We are a family andemployee owned business thatspecializes in taking care of ourcustomers needs in order to make theirpropane tank purchases easier. Ourtanks are produced in Cleveland, MS,and we are extremely proud that theyare 100% USA made. What othercompanies offer as options we makestandard equipment, because webelieve your customers should get thebest tanks offered.

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Troy PrewittVice President, Corporate Development

[email protected]

Travis FisherDirector, Corporate Development

[email protected]

Nancy CoopBusiness Development Executive

[email protected]

Have you been waiting for the right time to sell your propane company?

The right time is now.

Take the fi rst step. Please contact us today or visit www.ferrellgas.com/Our-Company/Acquisitions

The propane industry’s premier information source

www.LPGasmagazine.com October 2013 LPGas | 3

OCTOBER 2013

VO L U M E 73 | N U M B E R 10

On the cover | Photo courtesy of Istockphoto.com/billnoll

6 | OPENING DELIVERY | Two

manufacturers maneuver into

opportunistic positions.

8 | VITAL SIGNS | NPGA relocates

Southeast show from Atlanta to

Nashville for 2016.

43 | SAFETY FIRST | The cost of

looking the other way

44 | LEGAL BRIEF | A fatal house

fire raises questions.

45 | BUSINESS MATTERS | Conquering IT challenges

PILOTING PROGRESSPropane brings spark-

ignited school bus engine

back to Kentucky 25 years

after fatal crash.

TRAINING DAYEager minds want to know

what it takes to launch

propane companies into

autogas.

SHOULDERING THE LOADFormer industry leader

with strong autogas ties

heads North American

forklift association.

24 |

32 |

37 |

Features

Departments

24

32

37

We offer the following services and products:• Refurbished ASME tanks

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• Transportation for ASME tanks

• Buy scrap in whole load lots

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Don FultonMI, IN, OH, IL, WI, NC

[email protected]

Joe CristAll other states

[email protected]

Charlie RussKY, TN, MS, AL, GA, SC

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4 | LPGas October 2013 www.LPGasmagazine.com

46 | MARKETING MIX | Propane use on rise in local

beer, wine and spirits industry.

47-48 | LET’S TALK | Guest columnists talk propane

autogas sales and remote tank monitoring systems.

49 | PRODUCT SHOWCASE | New regulators, pumps

and compressors hit the market.

60 | SNAPSHOT | Young Pennsylvanian takes his

propane experiences and forms his own company.

60

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Editorial Advisory Board

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

Dale Delay President, Cost Management Solutions, Livingston, TX

Daryl McClendonPrincipal & Owner,DFM Enterprises, Willowbrook, IL

Tom Jaenicke Owner, ATomiK Creative Solutions,Charlevoix, MI

Ed Varney Eastern U.S. Sales Manager, Emerson Process Management, Houston, TX

Joseph RosePresident/CEO,Propane Gas Association of New England, Epsom, NH

Larry OsgoodPresident, Consulting Solutions LLC, Monument, CO

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The tanks and cylinders that con-

tain our valuable product under

pressure became a focus for us

last month.

We talked to a composite cylinder

company that’s making a push in the

United States. Hexagon Ragasco, with

Norwegian roots and U.S. operations

now in Lincoln, Neb., has launched a

North American brand called Viking

Cylinders.

The company has manufactured

composite cylinders since the late

1990s and has sold about 8 million

units around the world, with much of

its success coming in the Scandinavian

countries. But it hasn’t done much in

the United States – until now.

“We believe, and the market tells us,

that the consumer wants this product,”

says Tarun Kundhi, who works in busi-

ness development for Hexagon Ragasco

North America. “We need to take it

straight to the consumer, and in order

to take it to the consumer we needed a

brand.”

The company first plans to demon-

strate product demand for the 11-, 17

and 31-pound cylinders available to the

U.S. market (a 22-pounder is coming

soon). To this point, it has been focused

on the marine, RV and camping, and

other outdoor markets, but it hopes to

grow beyond those areas.

And it’s already making inroads.

Hawaii Gas’ propane cylinder exchange

program, called PropaneXchange,

uses Viking composites, and Florida

propane retailer Propane USA makes

the composite cylinder available to its

customers. The product is also available

through other retail outlets, such as

marine shops, and outdoor propane-

powered equipment manufacturer Lehr

Inc. Viking Cylinders will be available

in more than 200 (non-propane) retail-

ers by January 2014, the company says.

Hexagon Ragasco would like to

work with propane retailers and is

fast-tracking a tool that would allow

cylinder owners to find refill locations

in their area.

While cost may be a barrier for some

in adopting the composite cylinder –

the product is about three times the cost

of a steel cylinder, retailing for more

than $100 – Hexagon Ragasco says its

products have notable features, being

light, transparent and noncorrosive.

As the company makes its move in

the United States, it’s finding a need to

educate the propane industry on the

safety aspects of its cylinders. A May

recall of more than 55,000 composite

cylinders from The Lite Cylinder Co.

of Franklin, Tenn., has clouded the

competitive landscape for composite

cylinders, according to Kundhi.

“There are cylinders on the market

by multiple manufacturers, and those

are good, safe cylinders,” he says.

Kundhi says retailers and refillers

should educate themselves about the

composite cylinders on the market –

Amtrol and Composite Scandinavia

also manufacture composite cylinders

– not only to protect consumers during

a recall but also to maintain reliable

customer service and keep approved

cylinders full at customer requests.

Look for U.S. Department of

Transportation (DOT) markings and

company labels. Hexagon Ragasco’s

special permit number and company

name are located at the top of the cyl-

inder and on the boss (where the valve

attaches). The company name and web

address are also found on the case. All

new cylinders will show the Viking

Cylinders logo and web address (www.

vikingcylinders.com).

DOT has offered details about The

Lite Cylinder recall, including how to

identify and properly dispose of affect-

ed cylinders. Visit www.phmsa.dot.gov.

Open houseDiscussions turned to considerably

larger vessels when we visited Highland

Tank’s new manufacturing facility in

Manheim, Pa.

Like Hexagon Ragasco, the compa-

ny is discovering opportunities in the

U.S. propane market. It manufactures

propane tanks ranging in size from

3,900 gallons to 60,000 gallons for com-

mercial and industrial uses, and it also

has an interest in autogas applications.

You can read our report on page 10,

as well as news from other tank manu-

facturers, in Vital Signs. LPG


[email protected]

EDITOR IN CHIEF | BRIAN RICHESSON

Talking tanksTwo manufacturers maneuver into opportunistic positions

This composite cylinder manufacturer’s

information is shown under the valve.

Don’t let them get eaten by wasted trips.

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accuracy to +/- 1% and the reliability to deliver 100% confidence

in your inventory levels. Quit burning up your

profits on expenses making wasted trips.

Make more, get more. Get Xact.

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Xact’s remote tank monitoring system, the industry’s most accurate, makes every delivery count. Xact can cut your distribution trips in half, reduce your costs and increase your fuel delivery per stop. Your profi ts will thrive.

Protect Your Profi ts

[ N E W S B R I E F S]

I N D U S T RY N E W S & N U M B E R S

The National Propane Gas Association

(NPGA) is planning to move its South-

eastern Convention & International

Propane Expo from Atlanta to Nash-

ville, Tenn., in 2016. Atlanta would continue

to host the event in 2014 and 2015.

Contracts were not yet signed at press

time, but the association was moving forward

with the intent to complete the deal, accord-

ing to details from an NPGA webinar held on

the move.

The decision is a result of NPGA’s ef-

forts to review and find ways to improve the

industry’s biggest show, which has suffered

from attendance declines in recent years.

“The task assigned was to create increased

attendance, excitement and opportunities

for the show, and I think this does that,”

says Milt Swenson, chairman of NPGA’s

Conventions Committee, of Arrow Tank &

Engineering Co., who led two September we-

binars to explain the decision.

The city of Nashville opened a $623 mil-

lion convention center this year that would

provide, with 1.2 million square feet, a more

intimate venue for the show. Atlanta’s Geor-

gia World Congress Center, which opened in

1976, is the fourth-largest convention center

Mower brands link to conversion programExcel Industries’ Hustler

Turf Equipment and

BigDog Mowers brands

will participate in

Metro Lawn Propane

Conversions, an

AmeriGas program that

offers Environmental

Protection Agency- and

California Air Resources

Board-certified conver-

sion kits for Kawasaki

engines.

Select dealers who

have been trained as part

of Metro Lawn Propane

Conversions will perform

the conversions.

Ferrellgas chairman pitches propane mowersJim Ferrell, the chairman

of Ferrellgas Partners

LP, and his wife, Zibbie,

convinced their land-

scape provider, Jeffrey’s,

to convert its WH48A

John Deere walk-behind

lawn mower to run on

propane.

The Ferrells, who live

in Kansas City, Kan.,

informed Jeffrey’s Jeff

Walkwitz about the

number of lawn and

landscape profession-

als who are switching to

propane. Walkwitz took

action once he realized

propane’s possibilities.

Texas landscaper cuts fuel costs with propaneBenchmark Landscapes,

a commercial landscape

maintenance and design

company serving central

Texas, says it has cut fuel

costs by 58 percent oper-

ating 46 lawn mowers on

Continued on page 10

On the move to Music City: NPGA plans Southeast show relocation to Nashville

[ 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 Recent Total Units Year Quarter Price Current Current Est. Tax Debt/ OutstandingCompany End End (9/13/13) Distribution Yield Deferral Capital (millions)

AmeriGas (APU) Sept. June $43.17 $3.36 7.8% 75% 61% 92.8

Ferrellgas (FGP) July April 22.47 2.00 8.9 90 103 79.1

NGL Energy Partners (NGL) March June 31.47 1.98 6.3 80 48 62.3

Suburban Propane (SPH) Sept. June 45.98 3.50 7.6 80 53 60.2

Average: 7.6% 66%

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

Gross Gross Gross Profit Gross Profit Retail Gallons Sold Percent Gross ProfitCompany Revenue Profit Margin (Per employee) (millions) Change (Per gallon)

AmeriGas $2,864 $1,309 46% $151,193 1,243 29% $0.97

Ferrellgas 1,605 649 40 186,966 638 3 0.72

NGL Energy Partners 1,155 175 15 88,650 149 61 0.16

Suburban Propane 1,341 742 55 178,960 527 105 1.41

Average: 39% $151,442 49% $0.82

Source: FactSet, partnership reports and Wells Fargo Securities LLC

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A view from above in Atlanta



propane autogas.

The company first

switched to propane

five years ago. In 2012,

Benchmark says, it paid

an average of $1.45 per

gallon for propane versus

$3.45 for gasoline, sav-

ing more than $72,000

in the course of the year.

The landscaping fleet

uses 36,000 gallons of

propane annually, mow-

ing for 38,640 hours over

18,480 acres. Benchmark

fuels the fleet with its

own on-site station.

UGI Corp. acquires LP gas business from BPAmeriGas’ parent compa-

ny, UGI Corp., completed

its acquisition of BP’s

liquefied petroleum gas

(LP gas) distribution busi-

ness in Poland through

subsidiary company

Flaga GmbH. Terms of

the transaction were not

disclosed.

According to a press

release, BP’s Polish LPG

business distributed

more than 150 million

gallons of LP gas in

2012 while serving the

residential, commercial,

propane autogas and

wholesale segments. UGI

says it distributed more

than 600 million gallons

of LP gas throughout

Europe last year.

Cooperatives acquire Access Energy PropaneAgriland FS Inc. and West

Central FS Inc., a pair

of farmer cooperatives,

collectively reached an

agreement to acquire the


Deviation Deviation From Last 12 FromState August Norm Months Norm

Alabama 0 0 2660 -179

Alaska 216 -83 10985 -209

Arizona 0 0 1935 -225

Arkansas 4 2 3508 2

California 0 -9 2264 -370

Colorado 7 -52 7115 -293

Connecticut 33 19 5720 -349

Delaware 0 -1 4418 -322

Dist. of Columbia 0 -7 3776 -279

Florida 0 0 533 -104

Georgia 3 3 2818 -65

Hawaii 0 0 0 0

Idaho 0 -50 6567 -341

Illinois 22 1 6309 -45

Indiana 25 7 5845 -49

Iowa 36 7 7252 193

Kansas 5 -3 5253 134

Kentucky 2 -2 4575 -41

Louisiana 0 0 1724 -60

Maine 38 -20 7624 -388

Maryland 0 -2 4680 -169

Massachusetts 2 -17 5995 -412

Michigan 19 -17 6719 -230

Minnesota 23 -35 8864 108

Mississippi 0 0 2514 -49

Missouri 13 3 5285 67

Montana 4 -97 7530 -780

Nebraska 14 -7 6630 106

Nevada 0 -9 3298 -505

New Hampshire 12 -37 7062 -526

New Jersey 0 -5 5210 -234

New Mexico 0 -11 4372 -464

New York 0 -18 5643 -473

North Carolina 8 7 3552 27

North Dakota 66 -6 9787 339

Ohio 30 12 5808 -164

Oklahoma 0 -2 3786 36

Oregon 5 -56 5077 -73

Pennsylvania 37 19 5779 -130

Rhode Island 39 26 5741 -148

South Carolina 5 5 2813 18

South Dakota 34 -7 7838 -10

Tennessee 6 5 4082 82

Texas 0 0 1790 -207

Utah 0 -22 6234 -379

Vermont 95 27 7697 -413

Virginia 0 -2 4433 -46

Washington 6 -67 5287 -226

West Virginia 9 -3 5284 -12

Wisconsin 62 13 7912 121

Wyoming 1 -77 7740 -564

United States 10 -5 4348 -176

[BY LEO MICHAEL]

AUGUST

[H E ATI N G D EG R E E DAYS BY S TATE]

Data courtesy of the Climate Prediction Center/National Weather Service

PERCENT RETURN

NOT ME ANINGFUL

LOWER THAN AVER AGE HE ATING

DEGREE DAYS

HIGHER THAN AVER AGE HE ATING

DEGREE DAYS

Continued from page 8 Continued from page 9[ N E W S B R I E F S]



Highland Tank increases manufacturing capabilitiesHighland Tank has opened a new manufacturing facility at its location in

Manheim, Pa., about 30 miles southeast of Harrisburg.

The third-generation family company builds propane tanks, among

other petroleum and chemical storage products, ranging in size from

3,900 gallons to 60,000 gallons for commercial and industrial customers.

It also manufactures

custom tanks.

The modernized

facility, measuring

about 45,000 square

feet, gives the com-

pany more manu-

facturing space and

lifting capacity on the

property as it looks to

strengthen its pres-

ence in the propane

industry, including

autogas. The facility

also houses a blasting

and painting room.

Highland Tank

traces its roots back

to 1946 when it constructed heating oil tanks, but over the years it has

branched into a number of industries. Manheim is one of Highland Tank’s

six manufacturing facilities, with headquarters in Stoystown, Pa. The com-

pany employs about 300 people.

A 30,000-gallon tank in the works at the new plant

propane business of Access Energy

Cooperative.

That division, called Access Energy

Propane, will be divided between

Agriland FS and West Central FS. Iowa-

based Agriland FS will acquire Access

Energy Propane’s Iowa customers, while

Illinois-based West Central FS acquires

the division’s Illinois customers.

Gestion Jerico enters propane storage tank market with acquisitionGestion Jerico Inc., a commercial

tank and home heating company,

acquired 90 percent of Pro-Par Group,

a Canadian manufacturer of storage

tanks, dispensers and transport units

for the propane industry.

Pro-Par’s management will continue

to own the remaining 10 percent of

the company. According to a press

release, Pro-Par has operations in

Quebec and Ontario. The company

employs 80 people.

NGL Energy Partners acquires three water-disposal facilities in TexasNGL Energy Partners LP acquired the

water disposal business of Coastal

Plains Disposal #1 LLC, complement-

ing its existing footprint in the Eagle

Ford shale play in Texas. According to

a press release, NGL’s footprint in the

region now includes 240,000 barrels

per day of water-disposal capacity.

The acquisition expands NGL

Energy subsidiary High Sierra Water-

Eagle Ford LLC’s water gathering and

treatment infrastructure portfolio by

three water-disposal facilities. The

in the United States, measuring 3.9

million total square feet.

Nashville offers 10 hotels and

1,480 rooms – similar to Atlanta’s

peak-room availability – within five

blocks of the convention center. A

550-room Omni is adjacent to the

convention center and would serve

as the event’s host hotel.

NPGA says the city could close a

street running between the conven-

tion center and the Omni for out-

door events associated with the show.

A task force set up to review the

show offered recommendations to

NPGA’s Executive Committee – fo-

cusing on the venue, show dates and

co-locating at some point with the

Hearth, Patio and Barbecue Expo.

Swenson says three propane

industry groups were consulted on

relocating the show – the Southeast-

ern Advisory Committee (composed

of state presidents, state directors

and state association executives of

seven southeastern states); NPGA’s

Exhibitor Advisory Committee; and

its Conventions Committee.

Members of the three groups vis-

ited Nashville and came away with

a unanimous decision to hold the

show there, Swenson says.

“The Executive Committee gave

this site selection committee the

ability to make the decision to move,

if the site visit went well and all of

the parameters would be in place as

far as the venue, hotel availability,

etcetera,” Swenson says.

No other cities outside Atlanta

were seriously considered because

general consensus for Nashville

existed within the Southeastern

Advisory Committee and timing to

secure dates in Nashville became a

factor, Swenson says.

The expo drew 2,785 total attend-

ees (1,303 attendees and 1,266 ex-

hibitors) to this year’s show, breaking

a three-year decline in the number

of attendees walking the trade show

floor. – Brian Richesson

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]

For decades we have been manufacturing quality products for the gas industry.

The development of the Alternative Fuel Systems range is a natural evolution.

Our CNG and Autogas Systems offer the highest technology and meet the most stringent

safety requirements.

Our innovative features bring a new wave in the use of Propane appliances, such as trimmers,

lawn mowers, pressure washers and many more.

www.cavagnagroup.com

Propane beats petrol all the wayStop polluting the environment, empower your engines with Propane.

acquisition also includes an option to

acquire a fourth water-disposal facil-

ity currently under development. The

fourth is expected to be operational

before the end of this year.

In addition, the acquisition includes

options to acquire two other permit-

ted locations.

Pump Solutions Group acquires Italian pump manufacturerPump Solutions Group (PSG) signed

an agreement to acquire Italian-based

Finder Group, which manufactures

gas and oil pumps and systems.

According to a press release, PSG’s

acquisition is subject to regulatory

approvals and is expected to close

early in the fourth quarter. Terms of

the transaction were not disclosed.

Finder Group operates in Merate

and Querceta, Italy, and Vennissieux,

France. It will operate as a business

unit within PSG, which sought the

acquisition because of Finder’s cen-

trifugal, piston and twin-screw pump

technologies.

World LP Gas Forum welcomes British royal family member to ceremonyPrincess Anne, the only daughter and

second child of Queen Elizabeth and

Prince Philip, was scheduled to open

the 26th annual World LP Gas Forum

& 2013 AEGPL Congress on Oct. 2 in

London, England. The event was to

take place at the Queen Elizabeth II

Conference Centre.

Quality Steel completes American Welding & Tank dealQuality Steel Corp., based in

Cleveland, Miss., completed the acqui-

sition of certain assets of American

Welding & Tank LLC and TW Express

LLC, subsidiaries of Taylor-Wharton

International LLC, the company

announced.

The purchase includes the American

Welding & Tank brand, as well as the

facilities and workforce in Fremont,

Ohio, and West Jordan, Utah.

Prior to the acquisition of American

Welding & Tank, the company had

the ability to fabricate ASME propane

tanks ranging in size from 120 to 1,000

gallons. Today, Quality Steel’s manu-

facturing capabilities include produc-

tion of propane tanks and anhydrous

ammonia tanks up to a 2,000-gallon

capacity.

Jim Tims is president and CEO of

Quality Steel, and the son of cofound-

er Lowry Tims. Virgil Mullins is COO

and Lynn Hardin vice president of

sales and marketing.

Diane Brandt, inside sales manager,

and Dave Kubacki, director of human

resources and safety, have joined the

Continued from page 10[ N E W S B R I E F S]

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company as part of the American Welding & Tank acquisi-

tion. Quality Steel now has about 300 employees, adding

about 200 in the process.

Tank manufacturer Apache enters propane marketApache Stainless Equipment Corp. says it has entered the

propane market by providing a 30,000-gallon tank for its

partner, LPG & NH3 Supply Inc., to install at a residential

and commercial supply company.

LPG & NH3 Supply is a design, build and service provider

to the propane bulk industry and serves the midwestern

United States. The company, based in Buffalo, Minn., is sup-

porting Apache’s growth and deadlines for tank delivery.

The tank supplied by Apache was constructed from car-

bon steel with a 3/4-inch thick shell, 1/2-inch thick heads

and a weight of about 49,000 pounds.

The company serves a variety of industries, with its

products most commonly found in food, pharmaceutical,

water treatment, chemical, biofuel, petroleum, health and

beauty, pulp and paper, and beverage applications.

Dairy farm displaces diesel with dual-fuel engineA California dairy farm saved about $4,000 a month in fuel

costs in May and June with two propane-diesel retrofit

systems installed on its groundwater irrigation pump

engines, the Propane Education & Research Council (PERC)

reports.

Steve Maddox, third generation dairyman and man-

aging partner of Maddox Dairy, installed the systems in

2012 to reduce fuel costs and diesel exhaust emissions as

part of the dairy’s sustainability initiatives. The converted

engines run on 50 percent propane and 50 percent diesel,

and have enabled Maddox Dairy to cut its diesel consump-

tion in half and its fuel costs by 25 percent, according to a

press release outlining the results.

California Clean Air Technologies developed the system,

which meets California Air Resources Board approval.

Tecogen to test propane-fueled water heating systemThrough a partnership with PERC, Tecogen will demon-

strate the Ilios, a new high-efficiency propane-fueled com-

mercial water heating system, at four sites in the United

States.

The project will show performance, gather operating

data and provide economic payback information for the

propane-fueled Ilios hot water heaters. Potential sites for

these large 500,000-Btu-per-hour systems include hotels,

hospitals, nursing homes, apartment buildings, athletic

facilities, swimming pools as well as agriculture and aqua-

culture projects.

The Ilios units will provide a new alternative for propane




When you partner with family-owned and operated ThompsonGas,

you won’t be “just another acquisition” where your customers

and employees are the victims of the transaction. We successfully

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to compete more effectively in commercial and industrial

water heating markets, the Massachusetts company says.

PERC approved $157,500 for the project at its July meeting.

CHS expands propane capabilities in North DakotaCHS Inc. will add propane storage and rail services at the

Central Plains Ag Services location in Hannaford, N.D., the

latest in a series of actions to secure a supply for custom-

ers affected by the upcoming Cochin pipeline reversal

project, the company announced.

This agreement is part of an $18 million investment by

CHS in response to the pipeline reversal project. CHS will

access and distribute propane through the new terminal

to serve existing customers as well as new customers in

eastern North Dakota and northwestern Minnesota.

Central Plains Ag Services, jointly owned by CHS and

West Central Ag Services in Ulen, Minn., will operate and

maintain the CHS propane terminal.

Penn State students to evaluate grill tank gaugesSophomore engineering students at Penn State University

have set out to evaluate commercially available products

used to measure the amount of propane remaining in a

barbecue grill cylinder.

James Hendrickson, instructor of engineering at Penn

State’s Beaver Campus in Monaca, Pa., assigned the semes-

ter project, part of the requirements for the students’

engineering thermodynamics course.

Students are asking manufacturers to submit samples

for the study. The Propane GasGenie, distributed by

Creative Electronic Products, is one such product involved

in the study. The GasGenie, through electronics and tem-

perature sensors, is designed to detect low propane levels

in a cylinder with enough time remaining for the user to

finish grilling.

Students have identified basic product types for use in

the study and are soliciting manufacturers for samples.

Students also have been tasked with identifying and con-

tacting a local propane supplier to help with the testing

program.

“We are excited about this project here at Penn State as

this appears to be a market segment with a low level of

awareness and/or technical understanding by consumers,”

Hendrickson wrote in an email.

The final report is due in December.

CB&I to build propane terminal for SunocoSunoco Partners Marketing & Terminals LP awarded a $270

million contract to CB&I for the construction of a turnkey

propane terminal and de-ethanizer facility in Marcus

Hook, Pa., CB&I announced.

CB&I, a company focused on energy infrastructure, says



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it is constructing the ethane storage

tank terminal for Sunoco at the site.

Marcus Hook has become a key des-

tination for natural gas liquids coming

from the Marcellus and Utica shale

plays in the region. New infrastructure

will help boost Marcus Hook’s capabil-

ity to provide propane and ethane

to local, regional and international

markets.

Enterprise Products Partners to expand export facilityEnterprise Products Partners L.P. is

planning an additional expansion of its

LP gas export terminal on the Houston

Ship Channel in Texas.

Enterprise says the expansion will

increase its loading capacity by an

additional 1.5 million barrels per

month. That’s the equivalent of three

cargoes per month, according to a

press release.

The expansion will increase total

design capacity to about 9 million

barrels per month, and the project is

expected to be complete in the first

quarter of 2015. Enterprise previously

completed an expansion of its LP gas

export terminal in March.

Southcross completes second propane pipelineDallas-based Southcross Energy

Partners completed a new propane

pipeline connecting its Bonnie View

fractionator in Refugio County, Texas,

to Enterprise Products Partners.

It is Southcross’ second pipeline

outlet, in addition to its pipeline con-

nection to Dow Chemical, for the

delivery of propane.

Swiss company to build chemical facility for EnterpriseFoster Wheeler AG, through a sub-

sidiary of its global engineering and

construction group, will build a pro-

pane dehydrogenation (PDH) facility

for a subsidiary of Enterprise Products

Partners in Mont Belvieu, Texas, the

Swiss company announced.

Foster Wheeler says it has been

awarded an engineering, procure-

ment and construction contract by

Enterprise Products Operating LLC for

the PDH unit and associated power,

utilities and infrastructure. The facility

will convert propane to propylene for

use in the petrochemical industry.

Oneok boosts midstream offerings through acquisitionOneok Partners L.P. plans to invest

about $440 million in the natural gas

liquids (NGL)-rich area of the Powder

River Basin in Wyoming to purchase a

processing facility and upgrade and

construct gathering and processing-

related infrastructure, NGL gathering

pipelines and well connections, the

company announced.


CleanFuel USABlair Poulsen was named director of

sales. Poulsen has more than 23 years

of experience in the propane industry.

He most recently was regional sales

and marketing director for Heritage

Propane and AmeriGas. He currently

serves as chairman on the Nevada

Board for the Regulation of Liquefied

Petroleum Gas.

VenturoSteve Overby joined Venturo as a ter-

ritory manager, covering 16 states in

the central United States. Overby spent

the last 16 years with Commercial Body

Corp., most recently serving it as a ter-

ritory manager for truck equipment

and service sales.

Palfinger LiftgatesRicky Richardson was hired as a

field service technician.

Richardson is responsible

for training OEMs and

distributors on instal-

lations and after-sales

service as well as provid-

ing maintenance and

troubleshooting support

to fleets with in-house

service centers. His ter-

ritory will include New

Mexico, Texas, Oklahoma,

Louisiana, Tennessee,

Kentucky, Mississippi, Georgia, Florida,

North Carolina and South Carolina.

Richardson previously held the posi-

tion of technical fleet sales support/

warranty manager.

National Propane Gas AssociationKristen White joined the association

as director, convention and meet-

ings. She brings more than 20 years of

experience in logistics and meeting

planning. White previously worked

for Destination Marketing Association

International as the director of meet-

ing operations and the director of

operations for Destinations Showcase.

NavienChristopher Rizzo joined Navien as

its Southwest trainer. Rizzo previously

worked for Rinnai as a regional service

manager. He also spent some time

with Bosch as a trainer.

[ P E O P L E]Quality Steel Corp. Paul Bobitt died after a lengthy ill-

ness at the age of 72. Bobitt joined

the company in

1986 as its first

salesperson.

He later was

promoted to

sales manager

and contributed

heavily to the

company’s suc-

cess in becom-

ing a national supplier of propane

tanks. Subsequently, Bobitt was

promoted to general manager.

LP Gas Insurance Specialists of AmericaHarry Lyons, the company’s presi-

dent, died on Aug. 4 at the age of

65. He was the former president of

Green’s Fuel Co. of Georgia. Lyons

had more than 40 years of com-

bined experience in the propane

and insurance industries. He was an

active member in the national and

state propane associations. Lyons

was a regular attendee of the LP Gas

golf outing.

Bobitt

Harry Lyons, left, was a regular

attendee of the LP Gas golf outing.

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A sampling of notable tweets and

posts from LP Gas’ social media

pages.

twitter.com/lpgas_magwww.facebook.com/lpgasmagazine

■ Tank monitoring plays a part

in rightsizing retailer operations

to match a customer’s #propane

demand.

■ Attention, operators of commer-

cial motor vehicles: Are your brake

systems in good shape? Inspectors

out this week.

■ A Texas cab company reports

achieving five-figure annual fuel sav-

ings using #propane autogas for five

vehicles.

■ ProGas is using three upcoming

southwestern PA events as platforms

to promote propane as a transporta-

tion fuel.

■ Enterprise Products Partners L.P.

added a seventh NGL fractionator

at its complex in Mont Belvieu,

Texas.

■ Four Ray Murray employ-

ees earned the National Fire

Institute’s Certified Master Hearth

Professional status.

■ Alliance Energy Services signed

an agreement to acquire a #pro-

pane terminal from Kinder Morgan

for about $5 million.

■ CHS Inc. makes another move

in response to the Cochin pipeline

reversal project.

■ Public transportation fleets hon-

ored at #buscon13 for their use of

propane autogas.

■ The Fuel Web updated its #pro-

pane delivery management system

with a few enhancements for 2013.

And for the latest news and updates from the propane industry, visit www.lpgasmagazine.com.


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■ Prins bi-fuel system part of

promotional events: ProGas

planned to use three southwestern

Pennsylvania events as platforms to

promote propane as a transporta-

tion fuel. ProGas planned to have

propane autogas vans on display

at the 12th annual Ohio Watershed

Celebration in Pittsburgh; at the

Pennsylvania Independent Oil and

Gas Association Alternative Fuel

Car Cruise in Cranberry Township,

Pa.; and at Odyssey Day, an alterna-

tive fuel technology celebration, in

Oakdale, Pa. According to a press

release, ProGas President Ronald

Schramm planned to present the

2012 Ford E-350 van converted to a

Prins bi-fuel propane system.

■ Superior dispenser awarded

CSA certification: Superior Energy

Systems received certification for its

propane autogas dispensers from the

CSA Group. The dispenser will bear

the CSA Group’s mark of compliance

with indicators for U.S. and Canadian

use. According to a press release, the

dispenser is also compatible with

third-party fuel management sys-

tems, including American National

Standards Institute, Underwriters

Laboratories and all National Fire

Protection Association requirements

for power-operated dispensing devic-

es for autogas.

■ Texas cab company touts auto-

gas savings: Taxi Cab Co. of Tyler,

a cab and transportation company

located in Tyler, Texas, is running

five of its fleet vehicles on pro-

pane autogas, according to a press

release. The vehicles running on

autogas are two taxis, two vans and

a shuttle bus. Taxi Cab Co. of Tyler

switched to autogas two years ago

and says it saved $10,578 running

on autogas in 2012 rather than on

gasoline.

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ACME Alternate Fuel Systems

hosted 14 students this summer

from across the United States

during its 57th annual ACME

School in Mankato, Minn.

ACME School focuses on pro-

pane autogas, teaching students

about what’s available for appli-

cations and how to diagnose and

fix problems.

Rick Nordstrom, an Automotive

Service Excellence-certified

technician, taught the class. Dave

Rothfork, another certified tech-

nician, demonstrated propane

operating systems.


Source: Clean Cities Alternative

Fuel Price Report, national

averages, July 2013

The average price of propane, calculated by Clean Cities from about 400 public and private refueling stations, did not change from the April report. Gasoline prices went up 6 cents; diesel prices fell 8 cents.

Diesel $3.91

Gasoline $3.65

Propane $2.73

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ON

A sleeping giant Highland Tank showcased

a tank model for propane

autogas applications during an

open house at its new plant in

Manheim, Pa. The company calls

the autogas market “a sleeping

giant of alternative fuel” and

hopes to capitalize on increased

opportunities in this segment.

Students learn ins, outs of autogas

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■ NOV. 14-15 PERC/NPGA State

Leadership Benchmarking Summit

at the Renaissance Washington, DC

Dupont Circle Hotel in Washington,

D.C. For details, contact Kristen Healey

at [email protected] or

202-452-8975.

■ DEC. 10-11 PERC Meeting in Amelia

Island, Fla. For details, contact Anna

Lombardo at 202-452-8975 or [email protected].

■ JAN. 17-18, 2014 Benchmarking

Council at the Embassy Suites Tampa

USF in Tampa, Fla. For details, contact

Baron Glassgow at [email protected] or 866-881-6309.

■ JAN. 21-23 International Air-Condi-

tioning, Heating, Refrigerating (AHR)

Expo at the Javits Convention Center

in New York. Visit www.ahrexpo.com.

■ FEB. 2-4 NPGA Winter Board of Di-

rectors Meeting at the Hyatt Regency

in Clearwater Beach, Fla. For details,

contact Peter Ferrell at [email protected] or 202-355-1338.

■ FEB. 4-6 International Builders’

Show at the Las Vegas Convention

Center in Las Vegas. For details, visit

www.buildersshow.com.

■ FEB. 11-13 World Ag Expo at the In-

ternational Agri-Center in Tulare, Calif.

Visit www.worldagexpo.com.

■ FEB. 13 PERC Meeting via confer-

ence call. For details, contact Anna

Lombardo at [email protected] or 202-452-8975.

■ FEB. 27 Western Propane Gas As-

sociation Boad Meeting at the Hilton

Garden Inn in Elk Grove, Calif. For de-

tails, contact Lesley Garland at exec@

westernpga.org or 916-447-9742.

■ MARCH 2-5 NPGA Spring Technol-

ogy, Standards & Safety Committee

Meeting at the Hilton in Indianapolis.

For details, contact Jacque McCracken

at [email protected].

■ MARCH 6-8 Hearth, Patio & Barbe-

cue Expo at the Salt Palace Convention

Center in Salt Lake City. For details,

visit www.hpbexpo.com.

■ APRIL 6-8 Virginia Propane Gas

Association Spring Meeting at the

Sanderling Resort in Duck, N.C. For

details, contact Baron Glassgow at

[email protected].

■ APRIL 11 LP Gas Hall of Fame Induc-

tion Ceremony in Atlanta. For more

information, contact Brian Kanaba at

[email protected] or

216-706-3745.

[ E V E N T S]

24 | LPGas October 2013

S C H O O L T R A N S P O R TAT I O N

Propane brings

spark-ignited engine

back to Kentucky

25 years after

fatal crash

Piloting progress

It was a late night after a long day

at Kings Island amusement park.

The bus was full of happy, ex-

hausted teenagers and their chap-

erones making the 170-mile jour-

ney home to Radcliff, Ky., after

spending the day on roller coasters and

thrill rides. Sixty-six members of the

Radcliff First Assembly of God Church

and a driver made the May 14, 1988, trip

to the theme park, north of Cincinnati,

in the 1977 Ford B-700 former school

bus they used for church excursions.

But 27 of them did not make it home.

Just before 11 p.m., a small Toyota

pickup truck with an intoxicated driver

traveling the wrong way on Interstate

71 near Carrollton, Ky., collided almost

head-on with the bus, crushing its front

door. As passersby and some passengers

tried to evacuate the panicked children

from the rear exit, sparks from the metal

suspension ignited, leaking highly flam-

mable gasoline from the punctured

tank. Flames engulfed the bus, killing

27 passengers and injuring 34.

What became known as

the worst school bus crash

in U.S. history led to nu-

merous safety changes in

Kentucky school buses –

among them, a prohibition

on the use of spark-ignited

engines like the one that

erupted in f lames that

night. The National Trans-

portation Safety Board

cited “fuel system integrity

of school buses” as a safety

issue that contributed to the accident.

Since then, for 25 years, diesel has

powered all school buses throughout

Kentucky.

Until this fall.

A case for propaneIn an effort to improve efficiency, save

fuel costs and be more environmentally

friendly, Crittenden County School

District lobbied for and won common-

wealth approval to try a propane-fueled

school bus in its fleet. It is the first spark-

ignited engine in a Kentucky school bus

since the 1988 accident.

Rachel Yarbrough, superintendent of

Crittenden County Schools, some 240

miles west of the accident site, says the

conversation began because

she wanted to improve effi-

ciency throughout the dis-

trict, including the energy

used to transport the dis-

trict’s 1,300 students. With

35 buses traveling 298,000

miles a year, diesel costs

were significant.

“We take very seriously

the stewardship we have of

our resources,” Yarbrough

says. “We have tried our

best to look at every single area where

we can be more efficient to maintain a

high-quality learning experience for the

students of Crittenden County. If you re-

ally want to be efficient, you have to …

be willing to consider alternatives out-

side what you’re currently doing.”

Living in the rolling hills of Ken-

tucky, residents and district officials

were familiar with propane, which is

commonly used to heat their homes and

readily available. They also took note of

its sharply decreased price compared

with diesel.

Wayne Winters, the district’s lead ve-

hicle mechanic, was willing to consider

alternative fuels. He conducted research,

then assembled a committee to study the

feasibility of propane.

“May 14, 1988, definitely changed

student transportation in the state of

Kentucky forever,” Winters says. “I

would daresay Kentucky is the strictest

in the nation with the safety of the buses.

Even the thoughts of a propane bus

[raise concerns] of fire and explosions,

so the first thing I did was look at safety.”

What he found was a decades-old

track record of safe, propane-fueled,

spark-ignition buses in school districts

around the country, including in Ari-

zona, Illinois, Missouri, Oregon and

California.

Once he was satisfied with its safety,

Winters was impressed with how clean-

burning propane is, with low emis-

sions. That’s important for a vehicle that

spends a lot of its time idling outside of

schools and near children with growing

lungs.

“The engine stays clean. The ex-

haust stays really, really clean, with no

BY JENNIFER WEBB

CONTRIBUTING EDITOR




The Crittenden County School District has its own propane refueling tank.

Photos courtesy of Crittenden County Schools

Yarbrough

soot buildup,” he says. “It’s just so much

cleaner than the old diesel engines, or

even the new diesel engines.”

Changing policyWith the committee’s support, Winters

approached the Kentucky Department

of Education (KDE) about changing its

policy. It wasn’t easy.

“It didn’t go very well at first,” he

acknowledges. “It took us six to eight

months to get a conversation going on

a propane bus.”

Eventually, he presented a proposal

to Kentucky Department of Education

board members July 26, 2012, and with

Winters’ persistence, research and en-

thusiasm, they were persuaded.

“I think the more KDE looked at it,


Continued from page 25



©2013 Star Gas, L.P.

As the parent company of Petro, Meenan and Champion Energy, with local operations

throughout the Northeast and Mid-Atlantic, Star Gas, L.P. has made multiple successful

acquisitions in recent years and is actively searching for professional, full-service heating

oil and propane companies to add to our local family. Here are just a few reasons to join

the Star Gas family:

Over 100 years of industry leadership.We are the country’s leading provider of home heating oil so we understand the complexity

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they knew it wasn’t a matter of if but

when they brought it to Kentucky,” he

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By Sept. 27 last year, Crittenden

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The grant helped the district replace

a 1992 model diesel bus with a $95,000,

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I CF International is forecasting

strong growth for propane in

the school bus market, from

about 20 million gallons in 2012

to more than 200 million gallons

by 2020, says Mike Sloan, principal

at the Virginia-based energy firm.

Propane currently holds about 20

to 25 percent of the school bus

market, seeing 6,000 to 8,000 unit

sales per year out of a market of

25,000 to 30,000, Sloan says. Blue

Bird, Thomas Built and Collins offer

propane-fueled school buses.

THE SCHOOL BUS MARKET

its fleet with emission-control technolo-

gies to reduce tailpipe emissions of par-

ticulate matter by nearly 50 percent with

closed-crankcase ventilation systems.

River Region Propane, a division of

United Propane Gas, installed a refuel-

ing tank on district property at no cost

to the district except for pouring the

concrete pad. The district locked in a

yearlong price of $1.28 per gallon – com-

pared with $4 per gallon of diesel.

Andy Keister, plant manager of River

Region Propane, says he is happy to

partner with Crittenden County Schools

to supply its propane. Not only does au-

togas provide a good opportunity for

retailers like him, whose business across

nine counties is 85 percent residential

homeowner heat, it helps the schools

and keeps money in the community.

“It’s really good all the way around

for everybody,” Keister says. “I felt all

along this was something we should do.”

Winters is pleased with the use of

propane in his fleet for several reasons:

■ Less expensive fuel. Fuel costs will

be at least 50 percent lower for this pro-

pane-fueled bus than its diesel counter-

parts. So far this school year, the bus has

traveled 1,332 miles at a cost of 23 cents

per mile for fuel, compared with 50 to 52


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RMI is a proud distributor of Cleanfuel products

With the launch of its pilot

program, Kentucky joins a

growing number of states

that are turning to propane autogas-

fueled school buses.

When you compare the cost

advantages of propane – on top of

the environmental advantages – it’s

easy to see why.

Chuck Harvill, general manager

of Tennessee and Kentucky opera-

tions for Central States Bus Sales

in Lebanon, Tenn., says it can cost

$8,000 to $10,000 to convert a die-

sel bus to run on propane. But that

initial investment is paid off in four

to five years in fuel savings alone.

Propane averages $1.50 per gallon,

while diesel is averaging $4 a gallon.

“We believe in it,” Harvill says. “We

believe that it’s cleaner, more effi-

cient and definitely cheaper.”

Michael Taylor, director of auto-

gas business development for the

Propane Education & Research

Council (PERC), acknowledges that

a propane engine’s miles-per-gallon

statistic will be about 15 percent

lower than that of a diesel engine.

But, especially when combined with

a 50-cent tax credit for each gallon of

the alternative fuel, the savings from

lower maintenance costs and high

performance makes up for it.

“Propane has evolved into the

automotive fuel for today,” Taylor

says. “We’re using current automo-

tive technology, and it’s providing

the performance and results that

we need.”

A propane bus will last at least 15

years and 200,000 miles, Harvill says.

“We believe it’s longer because

it’s so clean, there’s no carbon in the

engine, service intervals can be lon-

ger, oil doesn’t break down and get

as dirty, if at all,” he says. “We believe

the engine will last every bit as long

[as diesel], if not longer.”

And they’re not hard for mechan-

ics to service. The buses come with

a five-year warranty, during which

time the local Ford dealer repairs

them. And after that?

“The beauty of it is, it’s a very

common engine platform,” Harvill

explains.

Schools in Portland, Ore., have

used propane buses in their fleets

for 30 years, Taylor says, adding that

PERC projects that 10 percent of

all school buses purchased in the

United States this year will run on

propane. Mesa, Ariz., Public Schools

has saved more than $4.43 million

over five years with its 90 propane

buses and hopes to convert its entire

517-bus fleet to propane autogas.

Brian Carney of Roush CleanTech,

which makes the fuel system for Blue

Bird, says sales have doubled every

year since 2010 as vehicle owners

come to appreciate the benefits of

dedicated propane over diesel, gaso-

line or bi-fuel systems.

As school districts across the

country look to reduce their operat-

ing expenses, many are turning to

propane. Taylor says he gets several

calls every week from schools asking

about propane buses.

“They have learned real quick that

they need to find a fuel that will

reduce, No. 1, their operating cost,”

he says.

“When you look at the price of fuel

at the pump and what is required to

maintain diesel engines today, it’s

very expensive, and propane gives

some relief,” he says. “So if we can

encourage a prospective customer

to look beyond the initial purchase

price conversion costs and the minor

decrease in MPG performance and

get them to look at lifecycle costs, it’s

a no-brainer. And we’re seeing those

costs come down.”

– Jennifer Webb

THE CASE FOR PROPANE-FUELED BUSES cents per mile for the diesel buses. The

propane bus is getting about 4.8 miles

per gallon, but Winters expects that to

improve to 6.5 or even 7 miles per gal-

lon after it “breaks in.” It will cost the

district about $8,100 to run each diesel

bus the average distance of 16,000 miles

this school year, compared with $3,680

for the propane bus, he says.

■ Cheaper oil changes. Winters says

the district spends $384 per year on oil

changes for the diesel buses. He expects

to spend just $79.62 a year for the pro-

pane bus because it holds less oil and

filters cost less.

■ Reduced dependence on foreign

oil. “I wish we could buy everything we

do here in Crittenden County so the

money circulates here,” Winters says.

“Or at least stay in the state, and then at

least within the United States. The more

resources we can use locally, the better it

is for everybody.”

■ Fewer emissions. Cleaner-burning

engines keep Kentucky green and the

children healthy.

And this could be just the beginning.

Winters expects state agencies will soon

begin turning to propane autogas-fueled

vehicles, and more school districts will

embrace the savings and other benefits.

Chuck Harvill, general manager of

Tennessee and Kentucky operations for

Central States Bus Sales in Lebanon,

Tenn., who sold the bus, says he already

has fielded calls from three or four

Kentucky school districts interested in

knowing more. One wants to replace 14

or 15 buses, Harvill says.

More time neededEnthusiasm for the return of a spark-

ignited engine is tempered, though, in

Hardin County Schools, where most of

the teens who died in the 1988 accident

had attended school.

John Skaggs, the district’s transpor-

tation director, had coached several of

the teens in basketball and softball, and

he knew siblings of many of the others

who died.

Skaggs says he knows buses have had




many safety enhancements

since then. He’s intrigued by

the potential savings.

“We’re going to watch

pretty closely how they turn

out [in Crittenden],” Skaggs

says. “We do have some

concerns. We’ll let them go

through the year and look at

the safety a little more before

we’d even think about order-

ing one.”

Although the bus was not

from the Hardin County Schools, the

community suffered greatly. One of the

teens who survived the accident now

is on Skaggs’ staff as a driver, and he

speaks every year to the students on the

accident’s anniversary. The high school

where many of the victims had attended

school is adjacent to the cemetery where

they are buried. A large, granite memo-

rial at North Hardin Memorial Gardens

in Radcliff honors those who died.

“We’re kind of wait-and-see right

now,” Skaggs says. “Everyone’s kind of

excited about the fuel savings, but also

there’s the other side of the coin.”

Yarbrough says the time was right

for the commonwealth to reconsider its

ban on spark-ignited engines in school

buses. In the 25 years since the accident,

technology has advanced and the safety

of propane buses has been

proved in other states, giving

Kentucky officials enough

research to consider before

approving the pilot.

“For KDE to take a chance

on cracking the door for

a pilot propane bus is, in

some ways, remarkable, even

though there is this over-

whelming evidence of their

safety ratings and account

after account of school dis-

tricts that have used them over time,”

she says. “Had we approached KDE

three years after the bus accident, there

would have been no way.

“But enough time has passed, enough

quality research [has been conducted]

where propane buses have been used in

a very safe way, and it’s taken this much

time for those individuals to even crack

the door to being open to a pilot for a

propane-fueled school bus.” LPG

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The school district is paying $1.28 per

gallon from United Propane Gas.

Training day

Kyle McCalla is one of 19 propane re-

tailers in the room, and at 27 years

old he might be the youngest. Mc-

Calla is here, like the others, be-

cause he wants to know what it will

take to get his company involved in

propane autogas.

Surely, he’s excited about the market’s poten-

tial and the forecasts for autogas. ICF Interna-

tional, for example, is predicting annual sales

of more than 40,000 propane-powered on-road

vehicles by 2020. Subsequently, ICF Interna-

tional is expecting a related increase in propane

consumption of more than 400 million gallons

by that same year.

Some predictions are mind-boggling, and

they’ve driven retailers like McCalla here today.

McCalla, a commercial energy specialist at

United Landmark LLC in Lancaster, Ohio,

hasn’t made an autogas-related sale to this point.

He’s had conversations with a few school dis-

tricts that are considering converting buses, and

he has contacts that can help United Landmark

branch into propane-powered mowers.

Still, McCalla has more questions than an-

swers. And judging from the room full of retail-

ers on this day, so do the others.

“Basically the only thing standing in our

way [from autogas] is ourselves,” says McCalla,

in a phone interview following the Propane


Eager minds want to know what it takes to launch

propane companies into autogas

BY KEVIN YANIK | MANAGING EDITOR

[email protected]

AU TO G A S

Don Heller, vice president

of propane technologies

at Bergquist, walks

retailers through the

mechanics of an autogas

dispenser during the

company’s open house

Aug. 20 in Toledo, Ohio.

Education & Research Council’s (PERC) Marketer Technol-

ogy and Sales Training seminar on propane autogas, hosted

at Bergquist in Toledo, Ohio. “I want our company to be the

source of information for our customers. If I go to a customer

I want to have an answer, and if I don’t have an answer I want

to be able to get back to them quickly.”

Getting startedThe biggest hurdle in McCalla’s way is establishing a customer

base. Other retailers likely face this same challenge. Fortunate-

ly for them, much of the day’s discussion centers on how to

make a successful sale.

One avenue to start the sales process is, of course, over the

phone. How should a call start? What shouldn’t retailers say?

To find some answers, retailers in this classroom are asked to

huddle in small groups.

A group of seven retailers huddles in a corner and shifts

into a conversation about alternative fuel tax credits. A couple

of retailers in the group see these as a key talking point to get a

potential customer’s attention.

“If [customers] are not aware of them, bring them up to

speed on them,” says Dave Bertelsen, the national product

AU TO G A S

Your sales approachAs you shift from attempting to make one sale to the

next, do you ever stop to ask yourself if the approach

you’re taking is the right one? It’s not an easy question to

ask in some cases, because you’ll be devoting time and

effort to making changes if you don’t like the answer.

Still, it’s a question worth asking. It’s a particularly

worthwhile question for both industry veterans and

newcomers to ask themselves as they attempt to make

propane autogas-related sales. Autogas is new terri-

tory for many, so having the right approach going into

a potential customer is a must for subsequent sales to

occur.

Regardless, whether you’re just getting started in

autogas or looking to shift gears in that field, here

are five areas to consider when you’re in sales mode,

according to Sales Transformation Now’s Charlie Emery.

1. Preparation. What do you know about the busi-

ness you’re approaching? Do you have a contact going

in, or are you blindly hoping to find the decision maker?

One way to get started is to do research. “What falls

off the table is the preparation,” Emery says. “Anybody

have those months where you’re really chasing sales

and you need to make some numbers? We’re really run-

ning and gunning sometimes, but with all due respect

please focus on the research.”

2. Approach. Why should the person you’re calling

talk to you? According to Emery, the average person

is called on 39 times by salespeople in a given month.

Considering that number, prospective customers likely

have enough experience to cast you off with the rest.

So have a good hook at the start, and have a hook

that’s specific to their business. “Nine times out of 10,

you’re not going to make a sale, but they’ll give you the

opportunity to continue to get into a conversation [and

do] a needs analysis.”

3. Needs analysis. What are your prospective cus-

tomer’s goals, problems and desires? Retailers will

eventually be confronted with having to discuss price,

but delaying that conversation in favor of one that gives

you further intel about the customer’s business can only

help move the process along. Emery suggests asking

questions such as these: Does your fleet come back to

a central location at the end of the day, and how many

vehicles will you purchase over the next 24 months?

4. Gain agreement in principle and later in price.

These steps may be a ways down the road following a

needs analysis, but if retailers can prove there’s value in

autogas, Emery advises gaining an agreement in prin-

ciple and discussing price secondarily.

October 2013 LPGas | 33


Opportunities in

autogas are driving

programs designed

to train retailers on

how to make a sale. IST

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manager at Valley National Gases.

Bertelsen goes on to tell the group a

success story about how he had a con-

tact who led him to a meeting about

propane-powered vehicles with a

school board. One key to the initial sale

was vendor support, Bertelsen says. His

vendors were able to answer some of the

customer’s more technical questions.

“A lot of our different vendors are

more than willing to come with us to

meetings,” he says. “A high-pressure

pump is needed to fill the new liquid-

injection [equipment]. It’s not like the

old days, and that’s why it’s nice to part-

ner with one of your vendors.”

Turning the conversationOnce the groups disperse, retailers are

asked to role-play in an autogas-related

sales call scenario. McCalla volunteers

and makes a pitch to the seminar’s in-

structor, who acts as a prospective cus-

tomer with fleet vehicles.

“I think I have a good alternative to

diesel or gasoline,” McCalla says at one

point.

The instructor responds with per-

haps the obvious question: How much

is a propane-powered vehicle? The ques-

tion is legitimate, and one most retailers

should be prepared for. So how should

they respond?

Bertelsen takes a stab at a response

in a different role-playing scenario with

the seminar’s instructor, who acts as a

school board member and a prospective

customer. Bertelsen starts his pitch with

a statement that notes all school districts

are pressed for cash. The role-playing

instructor responds that he’s heard pro-

pane-powered vehicles are more expen-

sive than some diesel vehicles.

Again, back to price. But Bertelsen

has an answer.

“Yes, but there are some government

incentives, and we have the expertise

to come in and talk about lower emis-

sions, less cost for maintenance and

savings you’re going to have in fuel,”

Bertelsen says. “If you’re looking at die-

sel at $4 per gallon, you might cut that

with propane.”

Once this role-playing scenario

is over, the instructor provides some


AU TO G A S


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analysis of the pitch Bertelsen made.

The instructor points out that Bertelsen

steered the conversation toward return

on investment to avoid an upfront con-

versation about price that could lead to

sticker shock. Also, Bertelsen offered

experts to service the school district,

and he immediately mentioned how

the price can be reduced with govern-

ment rebates.

An unfortunate dynamic exists, the

instructor adds, in that salespeople are

often moved too quickly from their

initial greeting with a customer to an

abrupt question about the product’s

price. Time isn’t ample for many pro-

spective customers, of course, so it’s

critical for some of them to race ahead

to price.

A key step in successfully making a

sale, the instructor says, is to perform

a needs analysis – and, perhaps more

critically, to establish a conversation

around the prospective customer’s

needs before they hang up the phone.

Selling something that’s relatively

unknown, such as autogas, elevates the

challenge salespeople face.

“If we can get started and get in with

a school, I think that’s going to be a good

way to get our name out there,” McCalla

says. “Word of mouth is huge, so we need

to get into that first school district and

tell them how much they can save and

about the service we can offer.”

Not saying the wrong thingAllen Dunlap, who sits in another area

of the classroom, agrees with McCalla

about word of mouth being a useful

marketing tool for autogas. But just

as propane retailers can benefit from

word-of-mouth marketing, they can be

set back if unsatisfied customers tell the

world how their propane retailer did

them wrong on autogas.

A few retailers probably find them-

selves in this situation already, having

rushed into the market unable to prop-

erly supply or service customers. Dun-

lap doesn’t want to suffer their fate, and

that’s a reason why he’s here learning

about autogas.

“I want to better service clients

and future clients,” says Dunlap, who


AU TO G A S


One avenue to start

the sales process is, of

course, over the phone.

How should a call

start? What shouldn’t

retailers say?

is both president of Linden’s Propane Service

Inc. and the Ohio Propane Gas Association. “I

don’t want to make a misstatement and give the

industry a black eye. You’re never going to get

a return sale if you don’t do it right the first

time.”

So far, Dunlap hasn’t had autogas customers

knocking down his door. He’s had a few people

call with an interest, but where Dunlap is based

in LaGrange, Ohio – southwest of Cleveland

– autogas is very much still in its infancy.

Dunlap sees opportunity to speed up auto-

gas’ development in the area, but he believes re-

tailers like himself need to be properly trained

how to sell and service it.

“I feel customers know enough to get us in

trouble,” Dunlap says. “They’re coming to us

thinking we’re the industry professional.”

Propane retailers are the obvious place to

turn for all things autogas, but Dunlap says

even the most seasoned industry veterans need

more education because technologies have

vastly changed.

“We’ve dealt with pumps for 20 years, and

this is similar yet dissimilar technology be-

cause of different pressures,” he says. “A lot of

us are just ignorant. A lot of the education has

not gotten into the field.”

Besides education, logistics are one of Dun-

lap’s autogas-related concerns.

“There have been success stories, but our

sales window goes down May to October,” he

says. “A school needs a bus in mid-August.

We’ve got the cart in front of the horse in some

cases, and I think there are some issues. We’ve

got to get with the suppliers.”

An investment in autogas is also a scary

proposition for some retailers, Dunlap says.

“We used to get a propane dispenser for

$1,200,” he says. “Now, you’re talking $8,500.”

For more information about marketer train-

ing sessions, visit www.propanecouncil.org/

MTST. LPG

AU TO G A S


Propane retailers

participate in a written

exercise as part of the

Propane Education

& Research Council’s

Marketer Technology and

Sales Training seminar on

propane autogas.


One retailer sees

opportunity to speed up

autogas’ development in his

area, but he believes proper

training is needed on how to

sell and service it.


Brian Feehan’s propane industry past

spans about 15 years, as he held

key market development roles with

the World LP Gas Association (in

France), the Propane Vehicle Council

and the Propane Education & Research Coun-

cil (PERC). With PERC, he was a vice president

tasked with developing the on- and off-road

engine fuel markets.

Feehan left PERC in 2011 to become presi-

dent of the Washington, D.C.-based Industrial

Truck Association (ITA). Its membership is

composed of manufacturers of lift trucks, tow tractors, rough

terrain vehicles, hand-pallet trucks and automated guided

vehicles, as well as parts suppliers, throughout the United

States, Canada and Mexico. ITA represents 90 percent of the

forklift manufacturers in the United States and Canada.

LP Gas Editor in Chief Brian Richesson talked with the

Maine native about his role with ITA and the changes taking

place in the forklift industry today relative to propane.

LP Gas: Can you tell us about the Industrial

Truck Association and the role you play as

president?

Feehan: This group traces its roots back to the

late 1920s and has been in its current form since

1951. We’ve been here in D.C. for about 30 years.

We have the traditional association structure

– board of directors, executive committee and

regular standing committees, where a lot of the

work gets done.

Within our general engineering committee is

an air quality subcommittee that keeps its eyes on what’s going

on from a regulations standpoint, with both EPA and CARB,

from an emissions perspective as well as other environmental

regulations. This is an important area for the propane industry.

One of my responsibilities is to make sure all of those com-

mittees function the way they are supposed to function. An-

other particular focus for me has been on the strategic direc-

tion of the organization, what the members of the organization


Former propane industry leader with strong autogas ties

heads North American forklift association

F O R K L I F T S

Feehan

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would like us to achieve.

When I first started at ITA, I took a comprehensive look at

what the organization was doing and put together a strategic

plan that looked forward to the next three to five years. It was

also necessary for me to evaluate the image or brand of the as-

sociation. This is a very solid membership-based organization,

but we needed to bring us into the 21st century. We changed

the logo, website and took a comprehensive look at the com-

munications program, what the ITA brand stands for and how

we serve our members and the industry. Now we have created

an electronic newsletter that is distributed to members, en-

hanced the statistics program with an upgraded software sys-

tem and made some internal and external changes to enhance

the value of the association.

I also have to follow closely what’s going on in the inter-

national community. Tariff and trade issues are some of our

highest priorities.

LP Gas: Was it difficult to leave the propane industry or

were you ready for a new challenge?

Feehan: It was definitely difficult, but the opportunity to

run an established trade association doesn’t come up often. I

started in the propane industry in 1998 and developed a lot of

relationships with good people. Of course, I loved what I used

to do, but this is an exciting opportunity.

LP Gas: How much communication, if any, does your as-

sociation currently have with the propane industry?

Feehan: Our members are very interested in what’s going on

with propane. It’s still a very large market segment. Almost all

of our members build and sell propane-powered forklifts, so

they are always interested in what’s going on from a propane

perspective, including fuel-supply and fuel-quality perspec-

tives. We keep an eye pretty closely on energy for a variety of

reasons. Your sources of supply [for forklifts] are electric power

as well as propane, diesel, natural gas, gasoline, so we always

know what’s going on [with fuel sources].

LP Gas: Have your ties to the propane industry and

knowledge of propane been beneficial in your work

with ITA? In what ways?

Feehan: One of the more beneficial parts was what I learned

from a regulations and emissions perspective when it comes

F O R K L I F T S


LPG NH3Supply, Inc.

Serving The Propane Industry Since 1976

1-800-328-0314www.lpgandnh3.com

Buffalo, MN

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to internal combustion engines and dealing with regulatory

authorities, but also having the global perspective on market

development. That was probably one of the bigger, if not the

biggest, advantages – the experience I got not only working

in France and market development around the world but also

working with various cultures of companies and international

governing bodies, navigating different cultures and different

approaches, the way people conduct business, was very benefi-

cial. That international and market development experience

continued when I came back to the U.S. working at PERC.

LP Gas: We hear propane-fueled forklifts are losing mar-

ket share to electric forklifts. Can you confirm this trend

and the reasons propane is falling behind, or is propane

still running strong, in your opinion?

Feehan: From an internal combustion perspective, propane

is still running strong. It is the standard

fuel for the forklift industry for internal

Don’t Wait For An Accident To Happen!

Sure, there are many who would prefer to stick their collective heads in the sand, but that is not an enviable position when an accident occurs.

With over 35 years experience in the propane industry, I am committed to presentations that eliminate complacency, expose liability threats and motivate employees to take safety compliance from the head to the heart.

www.thesafetyleader.com952-935-5350

Sign up online to purchase my safety newsletter today!

JAYJOHNSTONThe Safety Leader

Propane Safety.Nothing To Hide.

Propane and the forklift marketPropane falls into two classes of

forklifts – Class IV and Class V.

Before the recession, it made up

more than 60 percent of the lift

truck market, according to the 2013

Propane Market Outlook by ICF

International. But that market share

fell to less than 50 percent in 2011.

The propane industry sold 415

million gallons of propane into this

market segment in 2012, down

from the 470 million gallons being

sold before the recession hit in

2008, notes Mike Sloan, principal at

ICF International.

Sloan says 420,000 propane fork-

lifts are in operation today, averag-

ing just less than 1,000 gallons in

annual sales per unit.

ICF International is completing

a study for the Propane Education

& Research Council on propane-

powered forklifts and how they can

compete more effectively in today’s

marketplace.

“The technology for electric

forklifts is improving faster than the

technology for propane forklifts,”

Sloan says. “Batteries are getting

better and less expensive, the oper-

ating characteristics are improving,

battery life is improving, and in

addition to that the nature of the

industries that use forklifts have

been changing over time in a way

that favors the electric forklifts.”



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combustion engines. There have been some changes in the

marketplace over the past couple of years; some trends have

started to develop.

You first have to look at what the economy is doing, how

the market segments within the economy are performing and

what the types of products are coming out of those market

segments. It is important to take that into consideration when

looking at the market share and size and the products being

sold, that you factor in the job required of the forklift as a prod-

uct for those segments and the type of technology available for

those market segments. That’s where you are starting to see

increases in technology from an electric standpoint, now able

to perform some of the functions that only internal combus-

tion engines used to perform and where you start to see some

erosion in the marketplace.

A lot of research and development has been invested in bat-

tery technology that improves the overall performance of the

electric truck, including lifting capacities, speed, run times.

LP Gas: The propane industry is working toward, what

it calls, a new generation of forklifts, with lower operat-

ing costs and better emissions characteristics. Can the

industry make up for market-share losses or is electric

forklift technology superior?

Feehan: I see an awful lot of money and technology develop-

ment going into the battery side, infrastructure on the charg-

ing side, as well as productivity of the electric forklift.

There are regulations imposed on manufacturers; they have

to make continuous investments in research and technology to

meet those standards.

One type of fuel delivery strategy in off road is hybrid tech-

nology, but it’s not with propane. It’s with diesel. A few manu-

facturers have diesel electric hybrids. That type of technology

is out there, but we need to take that technology and apply it to

the U.S. The market would be propane electric. It would have

to be done with a lot of things in mind, and cost would be one

of them. There are also opportunities for the propane industry

to look at fuel delivery strategies with OEM partners.

LP Gas: What types of comments are you hearing from

your manufacturers about the fuel being used in their

equipment? What are their biggest issues?

Feehan: They’re constantly involved in or are looking at fuel

quality. Current and future emissions standards require good

fuel quality. Development of technology can accommodate

variations of fuel quality to a certain degree, but fuel quality is


F O R K L I F T S

F O R K L I F T S

an important component. You need to have good fuel quality

to achieve the stringent emissions standards.

LP Gas: What are some of the technological advances

being made in your industry?

Feehan: Battery technology and the increased productivity

of electric trucks. It’s all about measuring efficiency – the ef-

ficiency of the operator, how efficient are they in the process

of their job; fleet management systems, making sure your fleet

is optimized for its role; truck productivity, truck durability,

automation; fleet usage data is constantly being looked at and

improved on; fuel cells; people look at lifecycle costs from the

manufacturer’s cost of the product; they are always looking at

safety; from a charging perspective – conventional charging,

opportunity charging and fast charging; battery perspective

– lithium-ion batteries, super capacitors, flywheel technology;

natural gas technology, LP technology, diesel; hydraulic fluid

pressure technology with combustion engines.

LP Gas: Turning to autogas in general. Propane industry

outlooks show great potential for the internal combus-

tion engine market, specifically engines for on-road

vehicles and lawn mowers. Do you agree with these

outlooks or do you feel the challenges outweigh the

opportunities?

Feehan: I started off in the propane industry in France for four

years, and when I came back to the States the autogas market

was not in great shape. It was almost like an infant market all

over again. We had a mature industry with an infant market

but with fantastic opportunities. The programs that had been

successful in Australia, England, France, Poland and in other

places – I knew if we used some of those programs as models we

could be successful in the U.S. again. We also needed to build a

cohesive approach to market development. We went from hav-

ing very few products available from an on-road perspective to

a wealth of products in many market segments today.

It’s also true when you look at the off-road segment. When

we first started doing commercial mowers five, six years ago,

we had one [compared to more than 12 OEMs today]. If you

look at that marketplace today, it’s still an infant market with

tremendous opportunity for the propane industry.

If you look at the consumption of fuel that takes place in the

autogas market alone, on and off road, the propane industry

should be driving millions of gallons through the segments

that exist. It’s a regular paycheck for a lot of companies. LPG

The Supply You Need. When You Need It.




Safety can be a huge fac-

tor in achieving growth

due to the perceived

cost of training and

customer compliance. While

most companies do their best

to train and help customers

comply, sometimes it is easier

to do nothing.

When we do become aware

of a situation that is out of code

and potentially unsafe, there

is sometimes pressure to allow

rationalization and political

influence to grant some variance or ex-

ception. Profits earned would be mini-

mal in relation to the liability exposures

and yet, due to immediate cost or short-

term inconvenience, some parties look

the other way.

Why would a propane company

with millions of dollars at stake ignore

a safety situation?

Drivers are filling tanks because

they are told to. Consumers do not

want to pay for the cost of making

sure their system is in compliance.

The prospect of losing a customer over

safety concerns can result in one more

dent in an already-battered bottom

line. It is also highly possible that an-

other marketer may step in and supply

such an unsafe situation, just to pick

up the load. Where is the fairness in

that?

In the short term, the cost of doing

nothing looks cheaper than the cost

of compliance. In truth, the cost of

doing nothing creates liability threats.

Why would a local or state fire

authority ignore a situation that may

put its citizens and emergency person-

nel in harm’s way? I believe it is partly

because politics exist in all endeavors,

including fire safety.

Looking the other way or granting a

variance is just another excuse for not

ruffling the local feathers of founding

fathers. On the other hand, less-politi-

cal entrepreneurs are handed the rule-

book and fined for noncompliance.

If nothing ever happens, no one

cares, but one bad accident involving

prior knowledge can create liabilities

for authorities having jurisdiction as

well.

Why would a propane customer

fail to allow his supplier to perform a

safety inspection? A majority of retail

customers who reject a gas system

check are hiding something.

I hesitate to consider all of the sor-

did reasons someone may not want a

service tech in his basement. It could

be bad housekeeping or some illegal

enterprise, but there is no

question that such lack of ac-

cess can thwart a marketer’s

ability to perform and docu-

ment safety checks. This is

a major reason marketers

find it difficult to achieve the

highest percentage of such

documentation.

In my opinion, all of these

folks do not understand the

cost of doing nothing.

Every year we have con-

sumer situations where the

faulty work of do-it-yourselfers or

contractors causes accidents. Plain-

tiffs’ attorneys are standing in line to

represent their interests in the cost of

doing nothing.

Expert witnesses will receive ob-

scene amounts of money to expose any

loophole that creates doubt about your

safety credibility. You cannot afford to

ignore the high cost of that reality.

I will never apologize for promot-

ing propane safety – neither should

you nor our friends who enforce fire

safety. We all own the responsibility

to leave our comfort zone, stand up to

be counted and be part of the safety

solution.

When it comes to propane safety,

no one can afford the cost of doing

nothing. LPG

Jay Johnston (www.thesafetyleader.com)

is an independent insurance agent, busi-

ness consultant, safety leadership coach

and motivational speaker. He is the au-

thor of the books “The Practice of Safety”

and “A Leap of Faith Takes Courage.”

Jay can be reached at 952-935-5350 or

[email protected].

The cost of doing nothingLiability threats await companies that choose to look the other way

COLUMNIST | JAY JOHNSTON

Why would a propane

company with millions of

dollars at stake ignore a

safety situation?

PR

OP

AN

E E

DU

CA

TIO

N A

ND

RE

SE

AR

CH

CO

UN

CIL

We recently handled a case

involving a house fire that

resulted in serious burn

injuries to one of the inhab-

itants. She ultimately lost her life. Her

spouse sustained some burn injuries

but to a much lesser degree.

The only surviving witness to the

accident was the spouse. There’s no

question a gas leak into the home ig-

nited in this case. The ignition source

was disputed, but a strong suspect was

the decedent lighting a cigarette in the

basement just before the explosion that

took her life.

The gas leak came from a broken gas

line on the outside of the home that was

about 12 inches off the ground. The

line did not have sufficient supports as

code requires. There had been a bliz-

zard in the area in the days leading up

to this accident, and the blizzard was

unusual in that it came from the oppo-

site direction of most blizzards.

The blizzard put snow on the side of

the home where the accident later oc-

curred. The snow buildup caused the

gas line to break. It is unclear exactly

how the gas entered the basement, but a

basement window crack along the wall

with the gas line was a possibility.

The defendants in the case were the

gas supplier, the company that leased

the tank and a siding company that

put up siding years before the accident.

The gas company was alleged to

have not properly inspected the site

when it delivered gas. The tank in-

stalled was 8.5 feet from the home

instead of the required 10 feet, and the

company was alleged it should have

noted a lack of pipe supports.

There were also criticisms of the

industry’s warnings program and the

odorant in the gas. Written warnings

were given to the homeowners, but they

claimed they did not recall seeing them.

The surviving spouse had a lot of famil-

iarity with propane through his work.

He actually installed the gas system to

his home to include the pipe that failed.

The tank owner was a separate com-

pany from the propane retailer. Some of

its owners were also owners of the pro-

pane retailer. The tank owner was never

at the site of the accident. It was alleged

it had the same responsibilities as the

propane retailer – to inspect the tank

placement and pipe installation, and to

provide warnings about propane.

The siding company had put on new

siding to the home about 12 years be-

fore the fire. This company was alleged

to have removed some pipe fasteners

when it installed the new siding, and

that it failed to replace them.

There was a statute of repose in

place that precluded lawsuits arising

out of improvements to real property

that occurred more than 10 years be-

fore an event such as this accident. The

siding company attempted to avail itself

of this rule during the course of the

case. At the time the case resolved, this

legal issue was still in play.

Lab testing demonstrated that even

if the piping was fastened in compliance

with code, the force needed to break the

pipe was in excess of code requirements.

The defense took the position that

there was no code duty to inspect any-

thing more than the tank and the area

immediately around it to be sure the

tank was safe to fill. This area was code

compliant. The tank being too close

was not apparent when making a deliv-

ery, and this did not cause the leak.

The surviving widower installed

the system, and he was responsible for

any defects in it. The gas was tested

and properly odorized. Written warn-

ings from the Propane Education &

Research Council had been given to the

homeowners. The widower was trained

in propane through his work.

The company that owned the tank

looked to the retailer to perform any

inspections needed, to warn and to

provide properly odorized propane. It

adopted the defenses of the retailer.

The siding company claimed it

never removed any pipe fasteners. Some

post-accident photos and investigator

testimony showed no holes existed for

the missing fasteners in the wall under

the siding. In addition, the siding com-

pany alleged it could not be subject to

suit because it performed its work more

than 10 years before the accident.

Ultimately, the case resolved in a

confidential settlement. The takeaway

is that exposure in this type of case

can be far-reaching and involve novel

liability theories. LPG

John V. McCoy is with McCoy Leavitt

Laskey LLC, and his firm represents

industry members nationally. He can

be reached at 262-522-7007 or jmccoy@

MLLlaw.com.

COLUMNIST | JOHN V. McCOY

Debunking novel theoriesA fatal house fire raises questions about a gas supplier and other entities

Snow buildup on the

side of the home caused

the gas line to break.


COLUMNIST | RANDY DOYLE

Information technology (IT) proj-

ects are one of the most dreaded

challenges facing propane business

owners and executives.

This feeling is well founded. Many

experts estimate that more than half of

IT projects fail to meet their goals. IT

project cost is always significant – up

to $100,000 for a single location inde-

pendent marketer to $100 million for a

large multi-state marketer.

Many employees do not like the

major change from new IT systems.

New IT systems take years of struggle

to implement. It’s these and other rea-

sons that make the implementation of

new IT systems among the most chal-

lenging high-risk ventures any com-

pany will undertake. Therefore, busi-

ness owners and management should

take measures to prevent IT projects

from becoming a bottomless sinkhole

of money, time, frustrated employees,

angry customers and management

attention.

Major IT projects must be per-

formed well in all three phases to

avoid the IT sinkhole.

Software selection – The project is

put on the right path by selecting a

software vendor with a proven track

record in the propane industry. Con-

versely, the wrong software vendor

will certainly mire the project in high

cost, long delays and even major busi-

ness disruption. Undoing the conse-

quences from selecting the wrong soft-

ware vendor is a complex challenge.

Software implementation and data

migration – This dynamic phase of the

IT project is crucial because it impacts

employees and customers. Employees

must receive proper training and sup-

port to help their migration to the new

system. This may be the most difficult

challenge the project will face. Cus-

tomers are impacted because of the

look of new invoices and statements.

Adverse customer impact can occur

with data errors or lack of employee

readiness. Data migration requires

that the vast amount of data a propane

business generates be moved cleanly

from the old to the new database. An

experienced propane company techni-

cian who understands the nuances of

the data is best suited to do this com-

plex task well.

Business practices change – The ob-

jective of the IT project is to improve

the company’s business practices

through new technology, not merely

install a new computer system. This

aspect of the project takes years to

fully implement and requires under-

standing of how propane business

activities, such as bobtail operations,

are improved by the new IT system.

This phase of the project also requires

that employees abandon traditions

and practices with which they are

comfortable. Change is tough for

both employees and management.

The five essentials for avoiding the

IT sinkhole are:

Project leadership – Any successful

project starts with effective leader-

ship. The leader needs a working

knowledge of IT, to be an effective

manager, to be trusted, to be able to

build consensus and to understand

the propane business.

The right software – Select a reputable

software company that serves the

propane industry; don’t build your

own. You will save money and time

by obtaining software that is proven

to meet the needs of the propane busi-

ness. Remember that you are in the

propane business, not in the business

of building IT systems. Beware of the

myth that a custom-built system cre-

ates competitive advantage. Finally,

software cost ranks eighth on the list

of 10 selection criteria.

Align key leaders – All of the key lead-

ers must be part of a team that accepts

the IT project challenges. Otherwise,

finger pointing and conflict will cloud

the project.

Manage by realistic objectives – Set

achievable milestones on your multi-

year marathon. Create accountability.

Otherwise the project will languish.

Beware of pundits who will make ex-

cuses and blame a variety of problems

on the IT project.

Focus on the three Ps – patience, per-

severance with a focus on business

practices are needed to keep positive

energy throughout the project.

By avoiding the IT sinkhole and

successfully implementing your new

IT system, your company will be well

positioned to compete in the future. LPG

Randy Doyle is CFO for Blossman

Gas in Ocean Springs, Miss. He can be

reached at [email protected].

Avoid the IT sinkholeNew-system implementation has challenges, essentials for success

Choose proven

industry software

because customized

systems aren’t always

advantageous.


COLUMNIST | TOM JAENICKE

Sometimes we overlook smaller

opportunities for propane sales

when we chase those large mar-

kets such as home heating and

autogas.

The local beer, wine and spirits

industry is a good example of a some-

what hidden, but growing, private and

commercial market for propane sales.

Homebrewers, or hopheads, as they

fondly call themselves, usually use

lots of propane in the beer brewing

process. Brew kettles require large ca-

pacity high-pressure propane burners

for the mash cooking process. High

output burners of 60,000 to 100,000

Btus are commonly used by home-

brewers. They also use a large quantity

of hot water for bottle washing, equip-

ment cleaning and other processing

uses. There is no better answer for a

homebrewer’s hot water needs than a

propane tankless water heater.

Often homebrewers expand to the

commercial production of beer and

make propane the first choice for

their expanded craft brewing energy

needs. Propane serves microbrewers

well, whether they use direct fire on

the brew pots or a hot water bath pro-

cess. Lots of hot water is also needed

for small bottle and growler washing

and other sanitation needs. Propane

for space heating, water heating and

cooking also can be provided for ac-

companying sampling rooms and

restaurant operations that many mi-

crobrewers are including in their busi-

ness plans.

Vineyards, wineries and wine-

growers are a major part of the agri-

tourism boom that is sweeping across

many parts of the country. Vineyards,

wineries and tasting rooms are usually

located in rural areas where propane

is the best answer for space heating

and water heating needs. Wineries

use large quantities of hot water in

bottle washing, equipment cleaning

and other processing needs. Propane

tankless water heaters save space and

provide a continuous flow of hot water

during those critical winemaking

periods. If the winery is producing

spirits such as brandy, a steam boiler

usually is used in the distilling pro-

cess. Steam boilers are a propane load

you won’t want to pass up.

Growth areaLicensing can vary by state, but many

areas of the country are now seeing a

growth in new small batch distilleries

that make whiskey, vodka, gin and

other spirit products. I recently visited

a new distillery near where I live that

has a 4-million-Btu steam boiler for

the distilling process. Watch for these

small batch distilleries popping up in

your marketing area.

Anytime you see a cider mill, it is

in rural America. Cider mills can use

large amounts of propane for space

heating, water heating and other ener-

gy needs. Commercially licensed cider

mills need lots of water to help clean

and sanitize equipment.

One of the hottest areas of develop-

ment in the adult beverage market is

hard cider, applejack and other dis-

tilled versions of apple cider. Heat is

used to start the fermentation process

for hard cider, and propane is the ideal

energy for this processing. Hard cider

and related products have a cult fol-

lowing that is growing fast.

Make sure you add your propane

energy to this growth.

Here are a few tips on how to sell

more propane gallons into the local

adult beverage business.

■ Call on wineries, distillers, mi-

crobreweries and cider mills in your

area. Become their energy consultant

and help them smooth out their opera-

tion with propane and related equip-

ment. A dependable and abundant

supply of hot water is generally their

biggest challenge, but there are other

opportunities as well.

■ Look for new locations being

built in your marketing area. A good

place to start is with local building

permits or your state’s licensing divi-

sion for these types of businesses.

Contact the business owners and be-

come their energy consultant.

■ Join state and local grape grow-

ers associations, brewers guilds and

other groups related to the production

and promotion of locally made adult

beverages. Attend their meetings and

trade shows and network with the

business owners. Become their energy

consultant.

■ Buy, sample and enjoy local

wines, beer, spirits and cider. It can be

a fun way to meet your next propane

customer. LPG

Tom Jaenicke is the owner and principal

adviser at ATomiK Creative Solutions

LLC, a company that provides market-

ing services, technical advice, continuing

education solutions and business devel-

opment assistance to energy companies

and support organizations. He can be

reached at tom@atomikenergysolutions.

com or 810-252-7855.

Adult beverage boomPropane use on rise in local beer, wine and spirits industry


Your goal is to sell more fuel. The

on-road vehicle market has plen-

ty of long-term growth opportu-

nities to help you do just that.

Did you know that fueling just one

school bus equates to an average pro-

pane load for five residential homes per

year combined?

The 2013 Propane Market Outlook

by ICF International predicts an-

nual sales of 27,000 on-road vehicles

next year and more than 40,000 by

2020. This report also forecasts that

propane consumption for on-road ve-

hicles will increase by more than 400

million gallons by 2020.

Here are a few things to consider

to help you increase propane autogas

sales.

Know the fuel system manufac-

turers. Do you know which technology

companies offer propane autogas fuel

systems and for which vehicle manu-

facturers those systems are designed? Which ones are U.S. Environmental

Protection Agency and California Air

Resources Board certified? Find a com-

plete listing of all certified fuel systems

and vehicle platforms on the Propane

Education & Research Council’s

(PERC) website, www.autogasusa.org.

Also, look into original equipment

manufacturers’ offerings to see avail-

able gaseous fuel options. For instance,

Ford offers a full line of commercial ve-

hicles equipped with engines prepped

from the factory to successfully run

on gaseous fuels. Plus, the factory war-

ranty coverage on the vehicle is main-

tained once a Ford qualified vehicle

modifier converts it.

Since all vehicles need maintenance,

make sure the fuel system provided has

a robust service network in place. Visit

a local dealership and offer your knowl-

edge and support. They’ll think of you

the next time a customer asks about a

propane retailer.

Partner with fuel system manu-

facturers. Fuel system manufacturers

are constantly talking to potential cus-

tomers about their refueling needs as

well as their vehicle purchases. Estab-

lish a relationship with these compa-

nies to learn what they can offer to your

customers.

By maintaining a good working re-

lationship, you will have access to sales

training, marketing materials and ad-

ditional support to help diversify your

own company’s sales efforts.

If you make introductions to cus-

tomer prospects, manufacturers will be

more likely to do the same for you.

Targeting your customers. Tap

into your existing client base. A local

company that uses propane for its fork-

lifts also operates trucks. What about

the residential customer who owns a

contracting business?

Look to the public and private sec-

tors that run commercial vehicles –

paratransit and airport transportation,

to name a couple. Light- and medium-

duty trucks, vans and shuttles are avail-

able through fuel system manufactur-

ers, upfitters and dealerships.

School districts are another bur-

geoning market. Sales for the Blue Bird

propane-powered Vision have tripled

compared to the same six-month pe-

riod as last year. Talk to district fleet

managers about their current school

bus manufacturer or contractor and

explain the benefits of propane autogas.

With more than 480,000 school buses

nationwide, think about the potential

economic impact over the next decade

as these conventionally fueled buses

are replaced with propane autogas-

powered buses.

And, keep in mind that this market

is not limited to yellow school buses,

but also includes all other vehicles

besides buses in a district’s white fleet.

Explain available federal and local

incentives they could receive by pur-

chasing alternative fuels like propane

autogas. Then, put them in touch with a

trusted fuel system manufacturer.

For additional sources, many fuel

system manufacturers have case studies

showcasing successful and happy cus-

tomers. PERC also has studies showcas-

ing successful propane autogas fleet

deployments. Local Clean Cities can

direct you to existing success stories in

your area.

At a PERC meeting last year, an

energy expert on market trends said,

“If you are a propane company and you

choose not to embrace propane auto-

gas, you might be out of business in a

few years.”

This market is growing, and so can

your sales of autogas. LPG

Todd Mouw is the vice president of sales

and marketing for Roush CleanTech.

Contact him at [email protected]

or 800-59-ROUSH.

Increase your autogas salesA little knowledge of the available resources can go a long way

GUEST COLUMNIST | TODD MOUW

Don’t forget school districts

have other vehicles that

propane autogas can power.


Remote monitoring of

propane tank levels is a

practice that is growing

in usage across the coun-

try because it has the potential

to save significant costs for pro-

pane retailers and operators.

Traditionally, propane tank

levels have been estimated

using degree-day calculations

to forecast usage, but this pro-

cess works smoothly only as long as

the calculation assumptions prove to

be true. When they don’t, a retailer

is prone to making costly nuisance

trips to top off a mostly-full tank or

unscheduled emergency trips to fill a

tank that has gone completely empty.

In high-use situations, when the

cost of running out of gas is high,

some suppliers drive to the tank once

or twice a day to check fuel level. The

problem is made worse when the tank

is located many miles away, possibly in

a location that is difficult to access.

The only way to ensure that refills

are made when convenient and a sig-

nificant amount of gas is delivered is

to accurately measure the contents and

view the information remotely.

There are three basic types of re-

mote tank level-monitoring technolo-

gies available today: gauge readers,

ultrasonic sensors and radar devices.

For the end user, they differ in reliabil-

ity, cost and ease of installation.

Gauge readers are easiest to install

because they plug into the gauge hard-

ware, which works with a mechanical

float typically already present in the

tank. A “remote ready” gauge face is

necessary for this and can be easily ac-

quired if it does not currently exist on

the tank. Anyone can install a gauge

reader without special training. If

the propane tank doesn’t have a float

mechanism already present, then it’s

a different story, and it will need to be

decommissioned for float gauge hard-

ware installation.

At the other end of the cost spec-

trum are radar level-sensing systems.

A mechanical float is not required, but

to install a radar-sensing system you

still need to decommission the tank so

the radar electronics can be installed

inside. There’s a lot of cost to this, plus

lots of cost in the equipment itself.

The third alternative is an ultra-

sonic measurement system. With ul-

trasonic, there is no need for any tank

modifications. An ultrasonic sensor

is applied externally to the bottom of

the tank. The sensor sends an ultra-

sonic signal through the tank wall and

through the liquid. The signal bounces

off the surface of the liquid and the

time of flight back to the sensor is

measured. Software takes this infor-

mation and factors in the dimensions

of the tank and temperature to

calculate the precise amount of

propane in the tank.

Neither radar nor ultrasonic

monitoring systems employ

any moving parts, and hence

they are not prone to the stick-

ing problems that can affect

float gauges. And because they

employ precise electronic sen-

sors, radar and ultrasonic tech-

nologies are highly accurate – some

providing readings that are accurate

to +/-1 percent (the typical float gauge

may be accurate to only +/-10 percent,

when the float is not sticking). Elec-

tronic readings are also more repeat-

able than gauge readings, whereas

floats can respond differently from

tank fill to tank fill.

Different companies have differ-

ent ways of accessing the remote info.

Some use telephone landlines. Others

use cell phone connections. Still others

use satellite transceivers.

The best solution for truly all tanks

is to use satellite communications, as

cellular phone coverage is still lim-

ited by geographical location. And

with cellular, the remote-monitoring

system installer doesn’t know until

he or she gets to the site whether it

will work or not. The cost of satellite-

based communication is now on par

with charges for cellular or landline

transmission, plus it provides a signal

no matter where the tank is located

and no matter what time of day, even

through tree canopies. LPG

Chris Job is the Xact product manager

at Schmitt Industries. Contact him at

[email protected] or 503-595-4277.

Cost, accuracy trade-offsWeighing pluses, minuses of remote tank monitoring technology choices

GUEST COLUMNIST | CHRIS JOB


There are three basic types of

remote tank level-monitoring

technologies available today.P

ER

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Fixed gas monitorOldham’s iTrans 2 fixed gas monitor for the detec-

tion of explosive gases, toxic gases or oxygen

employs an electronics platform to provide one or

two points of detection

from a single head.

When in RS485

bus configura-

tion, one iTrans

2 system is

capable of

accommodating

more than 200 trans-

mitters. Also, one

system can monitor

any combination of

gases for a specific envi-

ronment, the company

says. iTrans2 includes

automatic sensor recogni-

tion, an access security

code, programmable relays

and an explosion-proof alu-

minum or stainless steel housing.

For more information, visit www.oldhamgas.com.

Pumps and compressorsBlackmer’s LGL Series sliding vane pumps were designed

for use in LP gas and propane autogas applications.

According to Blackmer, the pumps feature a unique cavi-

tation-suppression liner that helps reduce the noise, vibra-

tion and wear entrained vapors can cause. The pumps also

feature ductile-iron construction and internal relief valves,

which provide self-priming and dry-run capabilities. In addi-

tion, Blackmer’s LB Series reciprocating gas compressors

achieve transfer rates of 132 to 2,630 gallons per minute,

according to the company. LB Series compressors can han-

dle the transfer and recovery of liquefied gases. All models

feature ductile-iron pressure parts for optimized resistance

to thermal and mechanical shock. One other Blackmer-

related development is the release of its updated “Bulletin

501-001” document, which is available in English, French,

Russian, Spanish and Mandarin. The document is designed

to provide information about the company’s positive dis-

placement pumps and oil-free reciprocating compressors

for LP gas applications.

For more information, visit www.psgdover.com/blackmer.

Portable gas detectorCrowcon’s Gas-Pro portable gas detector has several features

specific to confined-space-entry work. Its bright, clear top-

mount display can be read at a glance without having to touch

the detector. In alarm conditions, the Gas-Pro’s dual-color back-

light adds an extra level of alert. A 95-decibel alarm, vibration

and dual-color visual

warnings are standard.

An automated pre-

entry check function

walks users through a

confined-space entry

to ensure maximum

safety. In addition, a

tri-color indicator gives

the status of a gas test,

calibration and recent

alarm notifications at a

glance. Users can select

multiple gas sensors for

up to five potentially

hazardous gases from a

wide range.

For more information,

visit www.crowcon.com.


N E W PR O D U C T S


Online bill-paying systemBend Mailing Services says its job-submission process

integrates seamlessly with a propane retailer’s commercial

or in-house designed software. The company provides

paper and paperless

customer invoicing

systems with no

setup, design fees

or add-on modules.

Color statements,

ongoing IT and

customer support

representative

assistance, as well

as upgrades and

design revisions,

are part of the pro-

cess. In addition,

an extensive online

tracking system

allows a retailer’s staff to monitor invoicing jobs, as well as

archive, print and email exact PDF copies of invoices imme-

diately to customers. Bend Mailing Services will custom

design www.online-billpay.com with a retailer’s branding

made accessible from a payment link on a retailer’s website.

For more information, visit www.bendmailing.com.Tank-monitoring deviceThe GasCheck device from Moscap Engineering is an

ultrasonic device that measures the liquid level of a propane

cylinder in seconds. The device is about the size of a pen,

and it uses electronic signals to accurately determine the

liquid levels in the propane tank. To operate, the rubber-

ized tip of the device is pressed against the outer wall of the

tank at a 90-degree angle. A red light signifies no liquid at

that level, while a green light indicates gas is present at that

level. Two watch batteries power GasCheck, which can be

used in conjunction with flammable gases. Its readings are

consistent regardless of external temperatures or weather

conditions, the company says.

For more information, visit www.moscapeng.com.

Cylinder transporterTankUp reusable

cylinder transporters

offer a safe, simple

way for consumers to

take 20-pound cyl-

inders home in their

vehicles. According

to Propane

Cylinder Products,

TankUp stores in an

exchange cabinet.

Its thickness of 3/16

inches adds up to a

five-piece horizontal

stack measuring 1

inch. In addition, the

company says its pop-up arm

design allows consumers to easily

use the cylinder upon returning home. Each TankUp trans-

porter weighs 7 ounces.

For more information, visit www.procylinder.com.

Hand-crank static discharge reelReelcraft expanded its line of industrial-duty static dis-

charge reels to include the manual-rewind GHC3100 N.

According to the company, this reel retracts and stores up

to 100 feet of orange nylon-jacketed cable. When properly

clamped to a ground, the static discharge reel dissipates

static electrical buildup, reducing the chances of sparking

and the potential for explosion. Reelcraft recommends

the GHC3100 N for applications in which explosions are

prevalent as a result of static buildup, such as refueling or

defueling.

For more information, visit www.reelcraft.com.

N E W PR O D U C T S

Second-stage regulatorCavagna Group’s

Kosan Plus Guardian, a

second-stage regulator,

does not require a separate dielectric

union because the unit is already integrated in

the flange of the regulator. The dielectric flange is

intended to isolate metallic piping from sources of electri-

cal power, the company says. When the flange is assem-

bled on the regulator, the electric insulation between the

upstream part of the installation and the downstream part

of the installation is obtained.

For more information, visit www.cavagnagroup.com.


Composite cylindersHexagon Ragasco’s Viking

Cylinders are available in mul-

tiple sizes for both lifestyle

and commercial applications.

According to the company,

Viking Cylinders are more than

50 percent lighter than a steel

propane tank. Also, the use of composite material makes

the cylinders translucent, giving users the ability to see

the liquid propane level.

For more information, visit www.vikingcylinders.com.

Residential regulatorsBergquist Inc. showcased Marshall Excelsior Co.’s new Excela-Flo residential regulators

at its annual open house in Toledo, Ohio. According to a press release, the regulators

have several key features to optimize performance and installation, including a round

flange for evenly distributed diaphragm compression; large wrench flats; stainless

steel lever design; and a tear-off data label for recordkeeping.

For more information, visit www.marshallexcelsior.com.

What sets ACME apart from the competition?

It’s our people.

Our technicians have more then 90-years

combined automotive & Autogas fuel system

experience & will exceed all your expectations in

customer service. Call us today 507-345-4000.

‘Friend’ us on FACEBOOK for the most up-to-

date info & visit us on our new totally redesigned

website with e-commerce www.acmecarb.com.

,QVWDOOLQJ�(3$�&HUWL¿�HG�V\VWHPV�

ACME Alternate Fuel Systems, Inc. Propane Autogas fuel systems pioneer for more than 55 years!

P4-Series LPG Dispensers The new standard in Electronic

Retail LPG Dispensers. Give your

LPG fueling station the image,

efficiency and flexibility it deserves!

No other dispenser line gives you

more flexibility at a better price!

Call today and see how Parafour

can help grow your business.

www.parafour.com512-686-6908 t 512-746-1027

Available from the following Distributors:

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CLASSIFIED ADVERTISINGAll ads must be prepaid by the classifi ed closing date. Visa, Mastercard, & American Express orders are accepted over the phone. Please send you ad copy with prepay-ment 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 #

CLEVELAND, OH 44114 Email: [email protected]

Please specify magazine name and blind box number in your correspondence.

FOR SALE

Visit us at www.LPGasmagazine.com

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FOR SALE (cont’d)

Advertiser here to Generate sales leads, maintain market presence, conduct market testing, promote existing lines, introduce new products and services, or recruit the best.

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IMPACT — Command immediate attention and get fast action with the dynamics of classified advertising

FOR SALE (cont’d)

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FOR SALE (cont’d)

2010 FRT M2 260 HP 8.3 Cumm 3560p Auto 3000 gal LCR Meter 3-func base diff lock PW&L air controls on S chains 53K miles 573-547-5658 or 573-517-1561 cell 10/13

BUSINESS SERVICES

For Sale: 2012 11,500 Gallon Westmor Proliner LP transport, air ride, super singles, ABS with roll protection, hydraulic pump 715-651-0863. 10/13

For Sale: 12,000 gallon capacity propane storage tank on skids. Yr 1961. Length incl skid 48.5 ft. Diameter 84”, Rated to 250 psi. 573 Shell thickness, .348 head thickness. Asking $24,000. Located NE Colorado. Call 303-637-7873. email: [email protected] 10/13

Contact Kelli Velasquez today and place your ad in the next available issue of LP Gas magazine. 216-706-3767. [email protected] 10/13

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To place yourclassifi ed ad, call

Kelli Velasquez(216) 706-3767

CAREER OPPORTUNITIES

Reach Thousands of Industry Experts by placing your ad in LP Gas Magazine’s Classifi ed Showcase.

BUSINESS SERVICES (cont’d)

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The Benefits Of

CLASSIFIED ADVERTISING…

IMPACT - Command immediate

attention and get fast action with the

dynamics of classified advertising!

EXPOSURE - Reach highly-targeted,

market-specific business professionals,

industry experts and prospects.

VALUE - Select from a variety of classified

display options to meet specific needs on a

timely basis cost-effectively.

RESULTS - Generate sales leads,

maintain market presence, conduct market

testing, promote existing lines, introduce

new products and services, or recruit the

best — bottom-line, classifieds offer you

an excellent return on investment!

For Rates and Schedules, Contact:

Kelli Velasquez

216.706.3767

[email protected]

www.LPGasmagazine.com

Place your recruitment ad today.

Find the person for the job.

EQUIPMENT FOR SALE

FUEL DELIVERY FORMS

SOFTWARE

CAREER OPPORTUNITIES (cont’d)

TERRITORY SALESPERSON - Wholesale Distributor looking for an equipment and appliance sales person for the Alabama/Mississippi area. The ideal candidate will have a strong sales background, experience within the propane industry, be ambitious and self motivated. Duties & Responsibilities: Develop a Growth Action Plan for Assigned Territory; Travel throughout assigned territory to call on regular and prospective customers; Train dealers & their employees on how to use, sell, and install the products we distribute. Adequate working knowledge of Microsoft Office Suite Required. Please forward resume to: [email protected] 10/13

TECHNICAL PRODUCT SPECIALIST - North Carolina Wholesale Equipment Distributor looking for a CSR who will specialize in handling incoming customer calls and inquiries that are technical and detailed in nature. The ideal candidate will: Have extensive experience within the propane industry, Be a quick learner, organized, detail oriented, able to multi-task, able to trouble shoot problems, have excellent customer service skills and thorough knowledge of Microsoft Office Suite. Relocation within North Carolina may be required. Please forward resume to: [email protected] 10/13

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Place your ad in LP Gas Classifi ed’s and see it online too!

Next Issue: December 2013 Ad Close Date: November 7, 2013

Contact Kelli Velasquez

216.706.3767

[email protected]


United States Postal Service Statement of Ownership, Management, and Circulation (Requester Publications Only) Required by 39 USC 3685

1. Publication Title: LP Gas

2. Publication Number: 0024-7103

3. Filing Date: 9/23/2013

4. Issue of Frequency: Monthly

5. Number of Issues Published Annually: 12

6. Annual Subscription Price: Free to Qualified

7. Complete Mailing Address of Known Office of Publication (Not Printer): North Coast Media LLC, 1360 E. Ninth St., Suite 1070, Cleveland, OH 44114 Contact Person: Antoinette Sanchez-Perkins Telephone: 216-706-3750

8. Complete Mailing Address of Headquarters or General Business Office of Publisher (Not Printer): North Coast Media LLC, 1360 E. Ninth St., Suite 1070, Cleveland, OH 44114

9. Full Names and Complete Mailing Addresses of Publisher, Editor, and Managing Editor - Publisher: Brian Kanaba, North Coast Media LLC, 1360 East Ninth St., Suite 1070, Cleveland, OH 44114; Editor-in-Chief: Brian Richesson, North Coast Media LLC, 1360 East Ninth St., Suite 1070, Cleveland, OH 44114; Managing Editor: Kevin Yanik, North Coast Media LLC, 1360 East Ninth St., Suite 1070, Cleveland, OH 44114

10. Owner - Full name: North Coast Media LLC, 1360 E. Ninth St., Suite 1070, Cleveland, OH 44114

11 Known Bondholders, Mortgagees, and Other Security Holders Owning or Holding 1 Percent or More of Total Amount of Bonds, Mortgages or Other Securities:

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13. Publication Title: LP Gas

14. Issue Date for Circulation Data: August 2013 Average No. Copies No. Copies of Single Issue Each Issue During Published Nearest to Preceding 12 Months Filing Date15. Extent and Nature of Circulation a. Total Number of Copies (Net press run) 12,250 12,251

b. Legitimate Paid and/ or Requested Distribution (By Mail and Outside the Mail)

(1) Outside County Paid/Requested Mail Subscriptions stated on PS Form 3541. (Include direct written request from recipient, telemarketing and Internet requests from recipient, paid subscriptions including nominal rate subscriptions, employer requests, advertiser’s proof copies, and exchange copies.) 8,872 8,982

(2) In-County Paid/Requested Mail Subscriptions stated on PS Form 3541. (Include direct written request from recipient, telemarketing and Internet requests from recipient, paid subscriptions including nominal

rate subscriptions, employer requests, advertiser’s proof copies, and exchange copies.) 0 0

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(4) Requested Copies Distributed by Other Mail Classes Through the USPS (e.g. First-Class Mail®) 0 0

c. Total Paid and/or Requested Circulation 8,928 9,037

d. Nonrequested Distribution (By Mail and Outside the Mail) (1) Outside County Nonrequested Copies Stated on PS Form 3541 (include Sample copies, Requests Over 3 years old, Requests induced by a Premium, Bulk Sales and Requests including Association Requests, Names obtained from Business Directories, Lists, and other sources) 3,042 3,066

(2) In-County Nonrequested Copies Stated on PS Form 3541 (include Sample copies, Requests Over 3 years old, Requests induced by a Premium, Bulk Sales and Requests including Association Requests, Names obtained from Business Directories, Lists, and other sources) 0 0

(3) Nonrequested Copies Distributed Through the USPS by Other Classes of Mail (e.g. First-Class Mail, Nonrequestor Copies mailed in excess of 10% Limit mailed at Standard Mail® or Package Services Rates) 0 0

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e. Total Nonrequested Distribution (Sum of 15d (1), (2), (3) (4)) 3,317 3,209

f. Total Distribution (Sum of 15c and 15e) 12,245 12,246

g. Copies not Distributed 5 5

h. Total (Sum of 15f and g) 12,250 12,251

i. Percent Paid and/or Requested Circulation (15c divided by 15f times 100) 72.9% 73.8%

16. Total circulation includes electronic copies. Report circulation on PS Form 3526-X worksheet.

17. Publication of Statement of Ownership for a Requester Publication is required and will be printed in the October 2013

issue of this publication.

18. Signature and Title of Editor, Publisher, Business Manager, or Owner Date: 9/23/2013

Antoinette Sanchez-Perkins, Senior Audience Development Manager

I certify that all information furnished on this form is true and complete. I understand that anyone who furnishes false or misleading information on this form or who omits material or information requested on the form may be subject to criminal sanction

COMPANIES TO WATCH


Independence PropanePennsylvanian takes propane experiences and forms own companyBY KEVIN YANIK | MANAGING EDITOR

[email protected]

Suburban Propane. Heritage Pro-

pane. AmeriGas.

Few people less than 40 years

old, if any, have worked for three

MLPs like Mark Delehanty has. Dele-

hanty, 37, also has five years’ experience

with family-owned Trexler-Haines.

Now, he’s onto his next endeavor, hav-

ing founded his own propane company,

Independence Propane, in June 2012 in

Green Lane, Pa.

“It’s an exciting time,” Delehanty

says. “Compared to what I’ve done

in the past, there were exciting times

then and there were times that were

very stressful and disheartening. I’ve

taken everything I’ve learned from all

those jobs and tried to apply it to what

I’m doing now.”

Delehanty started Independence

Propane with the help of family and

friends who invested in his business.

Delehanty’s wife, Cindy, is another

contributor who helps with finances

and paperwork.

But Delehanty is very much a one-

man act setting tanks, delivering fuel

and attracting new customers anytime

he can.

“The biggest challenge is getting

people to know who we are,” Delehanty

says. “What I’ve found is if I get a phone

call, nine times out of 10 I get the cus-

tomer. It’s rare that we lose a sale we’ve

been given a shot to get. The real chal-

lenge is getting the phone to ring.”

Heating, ventilation and air-condi-

tioning (HVAC) companies have been

helpful providing Delehanty customer

leads.

“I’ve got several HVAC companies

that refer their work to me for pro-

pane,” he says. “There is a lot of fuel

oil-to-gas conversions taking place in

our area.”

Fourteen months after launching

Independence Propane, Delehanty’s

customer base is up to 180. His goal

over the next 12 months is to double

that number and up his annual gallons

sold to 250,000.

Delehanty sees the propane autogas

and mower markets as opportunities

to increase his gallons, but he’s also

intent on installing more tanks before

making a bigger investment in other

propane markets.

“If we’re going to go into the fuel for

the commercial mowing business, that

means I’m not doing tanks; not doing

deliveries; not doing billing. That

means I have to go out and do sales and

marketing. That’s time, and a lot of it.

“I’ve got to get over the hurdle of

transitioning from being the every-

thing guy. We’ve got to get bigger so

we can hire some people, as opposed to

setting tanks and doing deliveries.”

Besides family and friends, another

partner that helped Independence

Propane launch is wholesaler AMERI-

green Energy.

“They’ve evolved a philosophy of

helping the propane retailer,” Dele-

hanty says. “Their marketing depart-

ment is not only for them, but they

allow their customers to utilize their

marketing department. They helped

me out with [my] website. They also

have a rewards program where my

customers can go for coupons and

other things.” LPG

OWNER: One of Mark Delehanty’s

goals is to double his gallon sales

by this time next year.

LOCATION: Green Lane, Pa.

FOUNDED: 2012

EMPLOYEES: 2

PROPANE SALES: 130,000 gallons

ONLINE: www.ipropane.net

If you feel the time is right to sell your business, consider calling

Suburban Propane. With over 80 years of experience in the

propane industry, you can trust us to see the process through

with the highest level of efficiency and integrity:

• You’ll receive a purchase plan that’s clear, flexible,

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 a confidential consultation call Mark Wienberg, Vice President

Operational Support & Analysis at 973-503-9628.

Thinking of selling?Talk to us. With our long history of customer satisfaction, you’ll rest easy about the transition.

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

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in the world.

Don’t be fooled by cheap imitations.

Buy original RegO products

from RegO Authorized Distributors.

®

100 RegO Drive, Elon NC 27244 USA

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

www.regoproducts.com

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valves and regulators?

Right here in our back yard.

Made in America

LPGas octubre 2013

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