LP Gas 2017 06

THE PROPANE INDUSTRYS PREMIER INFORMATION SOURCE | www.LPGASmagazine.
com JUNE 2017

Workers compensation: What
workplace safety means
for your premiums
Propane supply: Concerns,

next steps addressed
Autogas deal: CleanFuel USA

assets acquired
FOCUS ON
driver safety
Americas roads have become

a dangerous place, forcing
propane retailers to adapt
in a variety of ways.
VOLUME 77 | NUMBER 6

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VO L U M E 77 | NUMBER 6
JUNE 2017
The propane industrys premier information source
Features
30 | RELIABLE ACCESS
Propane industry leaders
respond to supply
concerns, plan next steps.
32 | FOCUS ON
DRIVER SAFETY
Americas roads can be
dangerous. How can retail
propane companies ensure
driver safety?
38 | CAPPING COSTLY
PREMIUMS
Improving workplace
safety goes a long way 30
to controlling workers
compensation bills.
Departments
6 | OPENING DELIVERY | Supply
availability concerns
8 | PHOTO DROP | A gallery of

photos from industry events
10 | A PROPANE PROFILE |
New state executive ofers his
perspective.
14 | VITAL SIGNS | Agility Fuel

Solutions acquires CleanFuel
USA assets.
44 | SAFETY FIRST | Decades of 32

developments, changes
On the cover | Photo courtesy of Istock.com/samiylenko
www.LPGasmagazine.com June 2017 LPGas | 3

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BEFORE THEY
HAVE QUESTIONS. NEW CONSUMER SAFETY
VIDEOS ARE AVAILABLE NOW.
Make it easier than ever for
customers to find safety advice.
These six new videos cover core
safety topics that support your
safety communications. Each
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that propane allows them to live
comfortably, wherever and however
they want. Get started by sharing
the videos on Facebook, on your
website, or through email.
YouTube.com/ProudlyPropane
4 | LPGas June 2017 www.LPGasmagazine.com

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You may be liable if your customer tampers with
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Editorial Advisory Board
any device that can be opened with ordinary household
tools could not be considered a locking device.
Jones v. Centerpoint Energy, May 25, 2011
Jaime Alberti Dale Delay Patrick Hyland Tom Jaenicke VP

Sales & Marketing, President, Director of Industry of propane marketing
Hilco Transport Inc., Cost Management Programs, Propane services, Warm Thoughts
Wilmington, NC Solutions, Education & Research Communications,
Livingston, TX Council, Cleveland, OH Charlevoix, MI Prevent unauthorized ills. Prevent unauthorized reconnections.
Proits went up when we started locking our tank Now were putting locks
on all our new tanks Brian Wanner, Silvertip Propane
The Fill Valve Lock has paid for itself with the lock, there are no discussions,
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Lock Americas Fill Valve Lock and POLock

Greg Noll Larry Osgood Jim Renaldo Mike Walters Stop unauthorized reconnections!
Executive Vice President, Director, Sales & Vice President, Safety Protect your business against a possible liability lawsuit.
President, Consulting Marketing, Renaldo & Training, Superior
PMAK Solutions LLC, Sales & Service Inc., Energy Systems,
Topeka, KS Monument, CO North Collins, NY Columbia Station, OH
LP Gas does not verify any claims or other information appearing in any of the advertisements contained 951-277-5180 800-422-2866 Fax: 951-277-5170
in the publication, and cannot take any responsibility for any losses or other damages incurred by 9168 Stellar Court, Corona, CA 92883
readers in reliance on such content. LP Gas welcomes unsolicited articles, manuscripts, photographs, www.laigroup.com sales@laigroup.com
illustrations and other materials but cannot be held responsible for their safekeeping or return.

EDITOR IN CHIEF | BRIAN RICHESSON
Supply points
Recent discussions reveal growing concerns about propane availability.
A
s weve come to the midpoint of cil, offered some valuable takeaways All three used to be supplied from
2017 (which is hard to believe), about the U.S. supply picture. Mont Belvieu, he says. Today none
the basic principles of propane Leonard noted the 200 million bar- are supplied from Mont Belvieu.
supply and demand have cap- rels a year that are distributed and used The last several years, the distribu-
tured much of the industrys attention. domestically as odorized propane; the tion of propane, the flows of propane
U.S. propane inventory dropped 150 million barrels a year that go to the and the way we take care of our cus-
about 40 million barrels from Janu- petrochemical industry; and the 300 tomer base has changed dramatically,
ary through the middle of April to to 400 million barrels a year that are he adds. To define how much inven-
39.6 million barrels, according to the exported to other countries. tory we have at Belvieu or Conway
U.S. Energy Information Administra- I know the challenge were facing doesnt really address things at all.
tion. This drop, due in part to higher today, the discussion about inventories, Leonard challenged fellow propane
U.S. propane export levels, came in a how we supply [propane], how we pre- suppliers to talk with their retailer cus-
warmer-than-average winter and after pare our consumers and retail market- tomers, educate them about the ways
inventory began the 2016-17 winter ers for the winter, he says. they are supplied today, where their
heating season with about 104 million To emphasize his point of how much supply comes from, how long it takes
barrels a new high. the U.S. supply scene has changed in to arrive, the importance of having a
With the growth in U.S. propane recent years, with new propane produc- backup plan and knowing how to man-
production and export capacity comes tion points coming online, Leonard age price risk. So when those several
supply uncertainty and potential price cites propane supply terminals in Hat- tough weeks of winter arrive, potential
volatility that exports bring to the do- tiesburg, Mississippi; Tyler, Texas; and supply issues will have solutions.
mestic market. These were key talking Calvert City, Kentucky, as examples. We have the capacity to do a lot of
points for ICFs Mike Sloan and Eric things, he says. We [the propane in-
Kuhle during a propane market outlook PERCs new president, CEO dustry] made new supply choices based
presentation at this years NPGA South- As we went to press, the Propane on economics, but we have additional,
eastern Convention & International Education & Research Council unutilized supply capabilities that go
Propane Expo in Nashville, Tennessee. (PERC) named beyond what we use today.
The rapid drawdown in propane in- Tucker Perkins
ventory to end last winter could linger as its new presi- Supply letter delivered
into the winter of 2017-18, Sloan says. dent and CEO, A week after the Propane Expo, Na-
Combine that inventory reduction with succeeding Roy tional Propane Gas Association and
U.S. export capability, and propane Willis. Perkins has PERC leaders emailed a letter to in-
retailers have reason to monitor inven- been with PERC dustry members addressing recently
tories and drawdowns this summer. for more than shared supply concerns.
Perkins The letter lists possible actions at the
five years, as its
A suppliers perspective COO and chief business develop- federal, state and industry levels to ad-
The day before Sloan took the stage at ment officer. Willis had been PERCs dress supply challenges, many of which
the Propane Expo to talk supply and first and only president and CEO were experienced during the 2013-14
demand dynamics, the Propane Educa- for about 20 years. For more about winter. For more, see page 30. LPG
tion & Research Council (PERC) held PERCs announcement, visit www.
its spring meeting in the Music City. lpgasmagazine.com. Well also have
Bruce Leonard of Targa Resources, full coverage of the announcement
PERC vice chairman and one of nine in our July issue.
producer representatives on the coun- brichesson@northcoastmedia.net

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PhotoDrop
1
ADD Systems drew
more than 200
attendees from 80
companies to its Business
Tech Conference in May in
Lake Buena Vista, Florida.
The software company
holds the event every three
years to discuss its product
offerings and best practices
for product use in the
propane industry.
2
This Boehlke Bottled Gas Corp. cylinder truck
caught our attention on the trade show floor
during the NPGA Southeastern Convention
& International Propane Expo in April in Nashville,
Tennessee.
3
From left, VFG Leasing & Finances Bill Summers
and Fred Summers join LP Gas Publisher Brian
Kanaba for a round of golf while in Reno, Nevada,
for the Western Propane Trade Show & Convention.
4
LP Gas event manager Kyle Castro, left, visits with a
Propane Expo attendee at the magazines booth
in Nashville, Tennessee. Megan Smalley, center,
associate editor, and Allison Barwacz, digital media
content producer, are also shown.
5
This 1963 photo features 2017 LP Gas Hall of Fame
inductee Bill Young working on a test project that
Industrial Gases performed with U.S. Steel Co. to
deliver hot tar in rail tank cars. The tank cars had liquid
feed propane burners to maintain tar at about 300
degrees Fahrenheit while in transit. This was one of
various systems that employees tested at Industrial
Gases, for whom Young worked.
6
J&C Propane Transport of Fresno, California,
is represented on this Kenworth showcased
outside the Reno Events Center during the PHOTO #1 BY ALLISON
BARWACZ
Western Propane Trade Show & Convention in May. PHOTOS 2, 3, 4, 6 BY BRIAN
RICHESSON
PHOTO #5 COURTESY OF BILL
YOUNG

MOTHER NATURE THROWS A TANTRUM?
BRING IT ON.
BRING ON THE ELEMENTS AND YOUR BUSINESS

CHALLENGES. TOGETHER, WE SUCCEED.
Weathering storms with a trusted propane partner ensures you and your customers
can sleep easy at night, knowing you can both depend on the propane you need to
fuel your business and their homes. We invest in reliable supply chains, trusted tools
and new innovations to help you manage costs and to help you succeed. The CHS
team is as serious about your reputation as we are about ours built by engaging
our customers, rolling up our sleeves and getting in there to help. Its our relationships
that make us strong even more so in the stormiest of times.
Call 800-852-8186 and together,

well face any storm that comes our way.
Dennis St. Aubin CHS Propane West Region Sales and Energy Equipment Sales Director (left)
George Lipford CHS Propane East Region Sales Director (right)
2017 CHS Inc.
Dan Binning
New executive director for three state propane associations offers
well-rounded perspective from different facets of the industry.
T
he Arizona, Colorado and dues revenues through sponsor-
New Mexico propane as- ships of meetings and seminars,
sociations selected Dan as well as increase dues revenues. I
Binning to serve as their think there are a lot of people out
executive director in November. there who think theyre a part of
Binning came to the position the association but havent been
with years of experience on both paying dues, so Ill try to explain
the retail and wholesale sides of to them the value proposition of
the propane industry, offering [membership].
the state associations with a well- I would like to try to help
rounded perspective. He also has things happen to make an atmo-
some unique college experiences sphere more conducive to growth
that helped to shape his character for the propane marketer. So far
before he entered the propane from what Ive been able to see
industry. at the state level, were reacting
LP Gas Associate Editor Megan more than were being proactive.
Smalley met with Binning during Id like to get more proactive. We
this years NPGA Southeastern had a very good event in March
Convention & International Pro- at the Arizona Capitol in Phoenix
pane Expo to find out more about called Propane Day at the Capitol.
his new role, plans for the future We didnt lobby, but we provided
Binning performs work for the Arizona, Colorado
and lessons hes learned in the and New Mexico propane associations out of his
lunch for all of the legislators and
industry. home office in Colorado. Max, his golden retriever, their staffs. We had all kinds of
keeps Binning company at his office. propane equipment there, and I
LP Gas: What made you interested thought it was a great event. Id
in the state association executive process, I got started [with the posi- like to see it recreated in Colorado
director position? How has the transition tion] Nov. 1, 2016. and New Mexico.
been for you? Its been educational. I didnt know
Binning: When the Baron [Glassgow what I didnt know. There are a lot of LP Gas: What has your new position taught
situation] hit (the National Propane things that I could have been doing you so far?
Gas Association terminated Glassgows over the winter to get ready for the busy Binning: Its very early in the game,
employment last year), I was somewhat spring training season, but I didnt know but Ive learned to listen and be will-
intrigued. I expressed some interest some of the things that I needed to be ing to adapt. I would say not only did I
PHOTO COURTESY OF DAN BINNING
last June. But I certainly didnt want to doing. So now, Im putting in very long not know what I didnt know, but I also
take on the [12] states [Glassgow] had. hours trying to stay on top of things. didnt know how to do some things. For
Theres no way that could have been Next year should be a little smoother. example, sending out e-newsletters and
efficiently managed. So I just threw my the Constant Contact program were
hat in the ring for Colorado, Arizona LP Gas: What are some of your goals for the foreign to me. I took an online tutorial
and New Mexico, and that seemed to state associations in Arizona, Colorado and and webinars to learn. Im getting bet-
me a reasonable workload. By the time New Mexico? ter, and its not taking me four hours
I got done with the whole interview Binning: Im trying to increase non- Continued on page 12

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A P R O PA N E P R O F I L E
Continued from page 10 Energy for five years. Were you ready to background, and now Im learning a
to send an e-newsletter anymore. Also, leave Kiva Energy? whole new phase of the industry. The
this may sound simple, but accounting Binning: I liked what I did, but it only thing I wont know is how to make
and bookkeeping are new to me. For- wasnt as challenging as I would have propane.
tunately my wife was a bookkeeper in a liked to see it. I really loved being on
previous career, so shes helped a lot. the retail propane side of things for 32 LP Gas: How did you get your start in the
years. The wholesale thing was a good retail propane side of the industry? What
LP Gas: Before taking on this new position, learning experience. It rounded out made you want to stay in the industry?
you were a territory manager at Kiva a lot of empty spots that I had in my Binning: I went to [the University
of Southern California] for graduate
school to get my MBA. Part of the pro-
gram was to get a summer internship
somewhere, and I got a summer intern-
ship at Petrolane. It was an internship
that never ended. They liked me, and I
liked them. I stayed with them until it
was sold to Suburban Propane.
I thought the propane industry was
a good opportunity for me. I really
enjoyed the people I was working with.
Propane people are salt-of-the-earth
type people. Their word is their bond,
for the most part, and a lot of hand-
shake deals are done.
LP Gas: I also saw on your rsum that you

attended Harvard for your undergraduate
degree and that you were on its varsity
football team. Could you share a little bit
about those experiences?
Binning: I grew up in Southern Cali-
fornia, and [my family] didnt have any
money for me to do college visits. My
mom worked as a cocktail waitress to
provide for the family. I was fortunate
to grow up poor. Harvard based all
of its admissions blindly. They didnt
know how much money my family had.
Once I got in, they looked at my finan-
cial situation, and because I grew up
poor, I ended up with a full scholarship
to go there.
My liberal arts education at Harvard
taught me to think critically. And the
football experience taught me disci-
pline. You got no credit for playing
football. If you had to take a test at 2
oclock on a Friday and you were on a
bus to a game, then thats still when you
took that test. I took tests on buses and
airplanes, and the coach would proctor
the tests. You still had to go to school
full time, so it took discipline. LPG

[NEWS B R I E F S]
INDUSTRY NEWS & NUMBERS

ThompsonGas purchases
Burkardts LP Gas
ThompsonGas acquired Agility Fuel Solutions accelerates push
the assets of Burkardts LP
Gas in Polo, Illinois, from into propane by acquiring CleanFuel USA
Bill and Beverly Burkardt.
A
Burkardts LP Gas gility Fuel Solutions include natural gas, hydrogen fuel stor-
sold about 5.6 million Powertrain Systems busi- age and delivery systems and Type 4
gallons of propane in ness unit acquired the composite natural gas cylinders.
2016 to more than 6,000 assets of CleanFuel USA, Agility Fuel Solutions says it
customers in Illinois. The a company specializing in liquid plans to hire key CleanFuel USA
company was featured on propane fuel injection systems employees. The company also
LP Gas Top 50 propane and refueling infrastructure for plans to add business locations
retailers list in 2017. more than 20 years. in Wixom, Michigan, to focus on
The transaction marks Agility Fuel Solutions recently the fuel systems and Georgetown,
ThompsonGas first acqui- developed its Powertrain Sys- Texas, to focus on the refueling
A CleanFuel
sition in Illinois, according tems business unit to focus on equipment. CleanFuel USA,
USA autogas
to the company. It now the development, certification dispenser
founded by Curtis Donaldson,
serves more than 100,000 and integration of low-pressure established its headquarters in Georgetown
customers in 18 states. propane fuel systems on OEM in 1993.
engines and vehicles. This acquisition will enable our Pow-
Vitol suspends propane The company, based in Costa Mesa, ertrain Systems business unit to accelerate
low to power plants California, serves as a provider of clean fuel its development and certification of propane
Vitol suspended the flow solutions for medium- and heavy-duty com- fuel systems for OEM engines and vehicles,
of LP gas to two U.S. mercial vehicles. Its product offerings also Continued on page 25
Virgin Islands Water and
Power Authority (WAPA)
power plants because
of outstanding invoices
for propane that Vitol [ 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 ]
delivered to the power Fiscal Recent Total Units
plants over the past three Year Quarter Price Current Current Est. Tax Debt/ Outstanding
months, according to Company End End (5/22/17) Distribution Yield Deferral Capital (millions)
WAPA. AmeriGas (APU) Sept. March $44.07 $3.76 8.5% 75% 71% 93.0
WAPA, which says it Ferrellgas (FGP) July Jan. 5.73 0.40 7.0 90 154 97.2
continues to manage NGL Energy Partners (NGL) March March 15.85 1.56 9.8 80 62 118.9
cash-flow challenges, Suburban Propane (SPH) Sept. March 22.99 3.55 15.4 80 63 61.1
reverted to using fuel oil Average: 10.2% 88%
as a result of the dispute
with Vitol. [ L A S T T W E LV E M O N T H S ]
Despite the suspension Gross Gross Gross Proit Gross Proit Retail Gallons Sold Percent Gross Proit
of propane to WAPAs Company Revenue Proit Margin (Per employee) (millions) Change (Per gallon)
generation plants, Vitol AmeriGas $2,120 $1,288 61% $151,536 1,053 -2% $1.17
continues to transport Ferrellgas 789 436 55 111,450 565 -1 0.55
fuel from its very large
NGL Energy Partners 960 219 23 68,565 168 3 0.16
gas carrier, anchored off
Suburban Propane 960 614 64 179,576 416 0 1.48
the southwest coast of
St. Thomas, to the LP gas Average: 51% $127,782 0% $0.84
Dollar igures in millions, except for per-unit data. Sharon Lui analyst, Wells Fargo Securities LLC
terminals in Krum Bay, Revenue and gross proit data are based on total propane gallons sold.
St. Thomas, and Estate Employee data is based on most recently completed iscal year.
NGLs revenue and gross proit data include the sale of distillates and
Richmond, St. Croix, other natural gas liquids.
WAPA says.
Source: FactSet, partnership reports and Wells Fargo Securities LLC
APRIL
[NEWS B R I E F S]
While there is an exist-

[ H E AT I N G D EG R E E - DAYS BY S TAT E ] ing contractual dispute
between Vitol and WAPA
Deviation Deviation
From Last 12 From and an outstanding
State April Norm Months Norm invoice for propane fuel
Alabama 69 -82 1784 -1055 delivered to the power
Alaska 783 -139 10455 -739 plants over the past three
Arizona 47 -90 1606 -554 months, we remain opti-
Arkansas 120 -62 2549 -957 mistic that we will reach
California 181 -68 2219 -415 an agreement on the
Colorado 599 -66 6138 -1270 issues at hand, says Julio
Connecticut 397 -125 5283 -786 LOWER THAN HIGHER THAN PERCENT Rhymer, CEO of WAPA,
Delaware 202 -169 3879 -861 AVERAGE AVERAGE RETURN and Elizabeth Armstrong,
HEATING HEATING NOT
D.C. 124 -148 3178 -877 DEGREE-DAYS DEGREE-DAYS MEANINGFUL WAPA board chairwoman.
Florida 10 -8 337 -357
Georgia 90 -69 2036 -847 New Mexico 301 -79 3669 -1167 NPGA seeks crane rule
Hawaii 0 0 0 0 New York 364 -164 5102 -1014 compliance extension
Idaho 614 61 6643 -265 North Carolina 129 -83 2832 -693 The National Propane Gas
Illinois 338 -136 5189 -1165 North Dakota 667 -35 8313 -1135 Association (NPGA) called
Indiana 277 -158 4757 -1137 Ohio 274 -196 4746 -1226 on newly confirmed U.S.
Iowa 426 -72 5962 -1097 Oklahoma 165 -35 2893 -857 Department of Labor
Kansas 297 -33 4204 -915 Oregon 581 110 5466 316 Secretary Alexander
Kentucky 133 -178 3842 -1134 Pennsylvania 298 -180 4987 -922 Acosta to immediately
Louisiana 36 -24 1071 -713 Rhode Island 421 -128 5218 -671 delay the compliance
Maine 627 -79 7351 -661 South Carolina 85 -54 2092 -703 deadline for certain provi-
Maryland 186 -178 3944 -905 South Dakota 554 -40 6791 -1057 sions of the Occupational
Massachusetts 427 -146 5558 -849 Tennessee 143 -105 3096 -904 Safety and Health
Michigan 419 -163 5748 -1201 Texas 45 -28 1191 -806 Administrations (OSHA)
Minnesota 591 -58 7351 -1405 Utah 559 8 5672 -941 Cranes and Derricks in
Mississippi 63 -56 1645 -918 Vermont 558 -135 7368 -742 Construction regulation.
Missouri 246 -87 4155 -1063 Virginia 156 -163 3551 -928 OSHAs final rule on
Montana 661 -22 7653 -657 Washington 505 29 5452 -61 Cranes and Derricks in
Nebraska 435 -24 5556 -968 West Virginia 212 -190 4243 -1053 Construction went into
Nevada 194 -93 2942 -861 Wisconsin 496 -129 6596 -1195 effect in November 2010,
New Hampshire 528 -125 67134 -875 Wyoming 699 -18 7441 -863 and the initial deadline to
New Jersey 293 -157 4716 -728 United States 249 -96 3699 -825 comply with the regula-
Data courtesy of the Climate Prediction Center/National Weather Service tion was November 2014.
OSHA extended the
compliance deadline to
November 2017 to adjust
[BY LEO MICHAEL] the standards wording
and allow for provisions
pertaining to crane
operator certification, but
OSHA has not made any
modifications to the regu-
lation, NPGA notes.
NPGA requested that
Acosta postpone the
compliance deadline by
an additional three years
and instruct the agency
Continued on page 16

[NEWS B R I E F S]
Continued from page 15 tributor in Quebec, and Compagnie du
to re-engage stakeholders in changing chemin de fer Lanaudire Inc.
the regulation, NPGA says. Bell-Gaz lte, based in the THE SOCIAL SCENE
OSHA has failed to hold up their Lanaudire region of Quebec, is a
end of the bargain during the last three family-owned company that supplies A sampling of notable tweets
years and provide modifications to the wholesale and retail propane to more and posts from LP Gas social
existing rule, says Rick Roldan, NPGAs than 18,000 customers and inde- media pages.
president and CEO. The industry is pendent distributors. Groupe Filgo-
depending on Secretary Acosta to take Sonic also acquired Compagnie du facebook.com/lpgasmagazine
instagram.com/lpgasmagazine
action and hold OSHA accountable. chemin de fer Lanaudire, which was
linkedin.com/company/lp-gas
established by Bell-Gaz lte in 1992.
twitter.com/lpgas_mag
It ensures the transportation, stor-
age and unloading of propane in the #FBF: In July 1991, the
Lanaudire region. Northside Independent School
Groupe Filgo-Sonic plans to get clos- District of San Antonio operated
er to its customers in the Lanaudire a fleet of 242 propane-powered
region and increase the value of its school buses.
services through the acquisition. It also
expects to benefit from the expertise
@StuartWeidie at Western
show: @NPGAPropane,
of Bell-Gaz ltes team, the company @PropaneCouncil to evaluate
New regulations will require some crane says. concept of strategic #propane
operators to have third-party certification. Bell-Gaz lte and Compagnie du reserve in regions of U.S.
chemin de fer Lanaudire will continue
The Cranes and Derricks in their operations, and contact points @ADD_Systems: Dont use
Construction regulation impacts the will remain the same, Groupe Filgo- #propane tank monitors as a
propane industry by requiring that Sonic adds. Groupe Filgo-Sonic antici- reason to stop reviewing tanks
employees working at a construction pates adding jobs at Bell-Gaz lte to after each delivery.
site and operating a crane with a lifting diversify its activities.
capacity of more than2,000 pounds Groupe Filgo-Sonic serves as a
What are your thoughts on the
Propane Expos return to Atlanta
receive third-party certification. At the distributor of retail gasoline, diesel, next year? #LPGasFuel4Thought
onset of this regulation, NPGA chal- heating oil, propane, lubricants and
lenged its relevance to propane tank biomass. It operates 301 gas stations, @AgilityFuel is acquiring
delivery and argued for exclusion from 25 self-service supply centers and 24 @CleanFUELUSA assets, hiring
the regulation. OSHA has maintained business centers in Quebec. key employees from the
that the regulation is activity-specific company, adding business
rather than industry-specific, as its Pembina moves forward with propane locations.
requirements may cover some pro- dehydrogenation facility Acquisition north of the
pane tank deliveries by articulating or Pembina Pipeline Corp. and border involves major #propane
mobile cranes, NPGA adds. Petrochemical Industries Co. K.S.C. delivery and energy companies
NPGA will likely make delaying this (PIC), a subsidiary of Kuwait Petroleum in Quebec.
regulation a main discussion topic Corp., are proceeding with the devel-
during Junes Propane Days event in opment of a proposed propylene and
Washington, D.C. NPGA also plans polypropylene production facility in for the project, Pembina says.
PHOTO COURTESY OF IOWA MOLD TOOLING
to release a white paper detailing Sturgeon County, Alberta, Canada. The proposed propane dehydroge-
the requirements of the Cranes and Pembina and PIC performed a fea- nation and polypropylene facility is
Derricks in Construction regulation sibility study for the evaluation of a expected to consume 22,000 barrels
once the regulation is finalized. combined propane dehydrogenation per day of Alberta-produced propane,
and polypropylene upgrading facility Pembina says. Pembina plans to source
Acquisition helps Quebec company in 2016. The companies entered into the propane for the facility from its
fulill growth plan in eastern Canada a joint-venture agreement to develop Redwater fractionation complex, as
Groupe Filgo-Sonic, an energy distribu- the facility, and theyve formed Canada well as other regional facilities. The
tor in Quebec, Canada, acquired the Kuwait Petrochemical Corp. (CKPC) to project is anticipated to produce about
assets of Bell-Gaz lte, a propane dis- perform front-end engineering design Continued on page 20

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PROPANE-RELATED REFLECTIONS FROM WWW.LPGASMAGAZINE.COM | MEGAN SMALLEY
Eight reasons why employees choose to leave a company

The propane industry often dis- asking employees for their per-
cusses the challenges of hiring spectives on company issues
new people, but a big part of the and even checking in to see how
problem is employee retention. employees are doing to build a
When an employer feels like stronger connection with them.
an employee isnt a good fit 4. Lack of recognition: To boost
at the company, the employer employee morale, encourage
might consider whether to keep good things employees do both
the employee. Similarly, when publicly and privately. Offer
an employee feels like he lacks bonuses for noteworthy perfor-
something from his employer, he mance achievements when pos-
might also consider looking for a sible, Staub adds.
new job. 5. Tough work-life balance: This
We often think about things factor is the most important
only from the employer perspec- with regard to millennials, Staub
tive, says Justine Staub, director says. To provide better work-life
of workforce development at Employers should ask balance options, offer vacation
AmeriGas. While youre looking for time and consider letting employees
something out of your employees, employees for their work from home if it applies to their
know that they are also looking for position.
something out of you. perspectives on company 6. Lack of career advancement: If a
Staub serves as a member of the job does not allow an employee to
National Propane Gas Associations issues and check in to see advance, the job might start to feel
(NPGA) workforce development task stale. Provideall employees with
force. She researched the topic of how employees are doing. leadership opportunities to help
employee retention for an educa- them advance.
tional session on recruitment devel- PayFactors to check that employee 7. Lack of trust in the boss: This issue
opment at the NPGA Southeastern pay and benefits are fair. pertains to a companys selection of
Convention & International Propane 2. Dislike the work: If an employee management. Offer strong manage-
PHOTO COURTESY OF THE PROPANE EDUCATION & RESEARCH COUNCIL
Expo in Nashville, Tennessee. dislikes his job, he will likely leave ment training programs to ensure
Employees tend to look for more within the first 90 days, Staub says. employees have good managers.
than just a fair salary out of their This issue goes back to the hiring Staub also suggests companies con-
employers, she says. process and checking that potential duct surveys with employees on how
During the educational session, employees know all facets of the job they feel management treats them
Staub presented the following eight to make an informed decision on the so that managers know how they are
reasons employees might choose to job offer. Staub suggests retailers performing.
leave a company: offer potential employees a tour of 8. Company has a bad reputation,
1. Salary and benefits: Companies the company to give them a better values: Make sure the company has
need to make sure their salaries picture of the job and company. good core values, as well as a strong
and benefits are competitive. Staub 3. Lack of care for individual employees: and positive reputation in the com-
recommends propane retailers use Employers need to connect with munity. If the company has a bad
online resources such as salary.com employees on a human level. Staub reputation, employees are more
or hire an outside vendor such as recommends employers consider likely to leave. LPG

[LET TER] [NEWS B R I E F S]
Continued from page 16 process technology to convert pro-
Only export the excess 1.2 billion pounds of polypropylene pane into 750,000 metric tons per year
So with U.S. usage of propane vs. per year, the company adds. of propylene, the primary component
exports, who should win? When The anticipated cost of the front- used for making plastics, packaging
propane is used for home heating, I end engineering design is expected and synthetic fibers.
consider it to be a utility and should to represent about 2 to 2.5 percent of China consumes more than 15 per-
always be available. We need to take the projects current cost estimate. The cent of the worlds propylene, and
care of our people before exporting preliminary capital cost estimate of the its demand for propylene is growing
it elsewhere. Otherwise, homeown- project is $3.8 billion to $4.2 billion, more than 4 percent per year, accord-
ers will move to some other reliable, according to Pembina. ing to the U.S. Energy Information
consistent energy source. I have no Front-end engineering design activi- Administration. In recent years, eth-
problem exporting our excess. ties will likely be completed by late ylene producers have made ethylene
2018, Pembina adds. from natural gas, which produces a
Jennifer Weiss-Assmann negligible amount of propylene. The
President Chinas largest single-train propane shift in ethylene production has caused
Rawhide Chemoil Inc. dehydrogenation unit in operation a propylene supply gap, leading to
Rawhide Fertilizer LLC Honeywell UOP commissioned the investments in facilities that produce
Fremont, Nebraska operation of the largest single-train on-purpose propylene.
propane dehydrogenation unit in The technology uses catalytic dehy-
Email your letters to brichesson@ China at Yantai Wanhua Polyurethanes drogenation to convert propane to
northcoastmedia.net or write to LP Gas Group Co., according to the company. propylene.
magazine, attention Brian Richesson, at Yantai Wanhua Polyurethanes Group
1360 East 9th St., Suite 1070, Cleveland, now uses Honeywell UOPs C3 Oleflex Vopak, AltaGas to invest in Canadian
OH 44114. propane export terminal
Royal Vopak and AltaGas Ltd. entered
into a joint venture agreement to
invest in the development of the Ridley
Island Propane Export Terminal.
The terminal is expected to be the
first propane export facility off the
west coast of Canada, according to
the companies. The facility will be
designed to ship 1.2 million metric tons
of propane per year. Vopak, an inde-
pendent tank storage company, and
AltaGas expect the facility to be com-
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[ PEOPLE]
85. Shirley served as the cor- nity. Shirley was born Feb. 27, 1932, in
Eastern Propane Corp. porate secretary at Eastern Butler, New Jersey,where she grew up,
Shirley Mae Nicholson, wife Propane for more than 30 graduating from Butler High School in
of Eastern Propane Corp. years and brought her love of 1949. She and Bob married in 1953, and
Chairman Bob Nicholson involvement and volunteering they moved to Virginia Beach, Virginia,
and mother of Eastern to many organizations, includ- until Bob was honorably discharged
Propane Corp. President Rob ing NPGAs scholarship com- from the U.S. Navy in 1955. They
Nicholson, died May 12 in mittee, the family says. She returned to Bobs hometown of Oak
Sparta, New Jersey. She was Nicholson was also active in her commu- Ridge, New Jersey, where they started
their family and Shirley started her life
as a stay-at-home mother, having
three girls (Debra, Wendi and Linda),
while Bob grew the familys propane
business. Shirley, Bob and the girls
moved to Sparta in 1961 and Rob was
born in 1964.
Axxis Software
Brian Reynolds was appointed as a
senior SCM business development
executive. Reynolds
has more than 25
years of experience
in the petroleum,
convenience store,
software and trans-
portation indus-
tries. He previously
worked in sales and
management posi- Reynolds
tions at Signature
Truck Systems, ADD Systems, Cadec
Global, Fleetcor, Reids Confectionery
and Irving Oil. In this new position,
Reynolds will play a key role in the busi-
ness development of Axxis Software in
the Northeast, national and Canadian
markets, the company says.
CHS Inc.
Jay Debertin was elected by the board
of directors as CHS president and CEO.
Debertin succeeds Carl Casale, who led
CHS during record performance levels
and expansion, the farmer-owned
cooperative and global energy, grains
and foods company says. Debertin
previously served as executive vice
president and COO for the companys
energy operations and processing food
ingredients business. He joined CHS in
1984 and has held a variety of leader-
ship positions within the organization.

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Ohio transportation company unveils $1.6 million autogas system
L
aketran, the regional public transportation system
in Lake County, Ohio, celebrated the completion of a
new propane autogas fueling station, installed to sup-
port a propane bus fleet that could grow to 85 vehicles
by the end of 2018, according to company officials.
The total investment in infrastructure at Laketran, which
is based about 25 miles east of Cleveland, was about $1.6 mil-
lion, the company says. Laketrans three-phase capital project
included engineering, the construction of a fueling station,
and the installation of indoor propane detectors for safety
inside Laketrans 122,000-sq.-ft. vehicle storage and mainte- Superior Energy
nance area. Systems installed
Tightening standards for emissions and shrinking bud- this propane
gets have been driving the transportation industry toward al- autogas fueling
ternative fuels now more than ever before, says Ben Capelle, station with a
Laketrans deputy general manager. Laketran is always 30,000-gallon
looking for more efficient ways to operate and reduce cost. tank 25
Right now it costs about $64 a day per vehicle to fuel a Dial-a- miles east of
Ride bus on diesel. We will reduce the cost to about $40 a day Cleveland.
per vehicle running on propane.
Laketrans new Dial-a-Ride fleet is made up of
VT3 and Terra Transit buses that seat eight or 10 pas-
sengers. Superior Energy Systems completed the con-
struction of the on-site fueling station for Laketran.
Theres a 30,000-gallon tank and two dispens-
ers ones a single hose, ones a double hose, says
Derek Rimko, vice president of operations at Superior
Energy Systems. They can fill two buses off the one
dispenser, or a single off of there.
Laketran expects to recover the initial infrastruc-
ture costs in about four-and-a-half years. Alliance
AutoGas partnered with Laketran as its fuel provider.
Were excited about bringing another win to the Laketran celebrates the stations opening with a ribbon-cutting event.
propane industry, says Rodney Johnson, business
development manager at Alliance AutoGas in Columbia Laketran says it couldnt have made the transition to
Station, Ohio. Theyre expected to do somewhere in the propane or maintain its Dial-a-Ride fleet without the sup-
neighborhood of 500,000 gallons per year, so its a great op- port of federal funding. A $416,000 investment from the
portunity for propane to shine once again. Federal Transit Administrations Buses and Bus Facilities
grant and a $754,000 Congestion
Mitigation Air Quality federal grant
paid for 80 percent of the cost of the
PHOTOS BY KEVIN YANIK
S2G: A REAL WORK TRUCK. fueling station and vehicles, Laket-

Learn more and start building your S2G today at ran adds. Laketran provided a local
FCCCcommercial.com/S2G, or by calling Freightliner 20 percent match funded by the
Custom Chassis at (800)FTL-HELP. For ordering agencys 0.25 percent local sales tax
details, contact your local dealer.
revenue. Kevin Yanik

Riding in style Continued from page 14
LP Gas Publisher Brian says Kathleen Ligocki, CEO of Agility
Kanaba and Editor-in-Chief Fuel Solutions. Its a significant step
Brian Richesson rode in toward our goal of offering a complete
a propane-fueled Toyota toolkit of solutions to enable the global
Sienna LE taxi while in Reno, transition toward cleaner transporta-
Nevada, for the Western tion options.
Propane Trade Show. In addition, the acquisition will en-
Whittlesea Checker Taxi is able the company to offer complete pro-
placing autogas fuel systems pane fuel systems for commercial ve-
in its newer vehicles, the hicles based on CleanFuel USAs liquid
driver told LP Gas. propane injection technology. Agility
Fuel Solutions will also be able to offer
turnkey propane fueling packages for
[NEWS BRIEFS] both private fleets and retail locations,
Virginia school district calls the company adds.
propane easy choice compared CleanFuel USA has assembled a
to diesel: Newport News Public portfolio of reliable products and leading
Schools in Newport News, Virginia, technology in the commercial vehicle
added 24 Blue Bird Vision propane market in North America, says Brad
autogas school buses to help reduce Garner, president of Powertrain Systems.
greenhouse gas emissions, according We look forward to combining those
to Roush CleanTech. The new buses products and technology with Agilitys
come equipped with Fords 6.8-liter market and geographic reach, financial
V10 engine powered by a Roush strength and aftermarket service capa-
CleanTech propane fuel system. bilities to make it easy for fleets, OEMs
operations. Atwww.propane. and propane distributors to benefit
The school district pays about
com/municipality, visitors will find from propanes advantages as a clean
45 percent less for propane per
resources explaining how propane and affordable transportation fuel.
gallon compared with diesel, Roush
mowers increase department
CleanTech says. After two years of
productivity, lower fuel costs and Expanding into propane
attending trade shows, meeting
reduce emissions. Whether were Agility Fuel Solutions developed the
with bus manufacturers and talking
talking about a large city, small Powertrain Systems business unit to
with colleagues in school districts
rural township or even a university, complement its existing natural gas
that operate alternative fuel buses,
grounds maintenance departments high-pressure fuel systems and cylin-
we knew this was the direction we
are constantly asked to do more ders/Europe business units.
wanted to pursue, says Shay Coates,
with less, says JeremyWishart, The most important step the trans-
director of transportation at Newport
PERC deputy director of business portation industry can take toward a
News Public Schools. The benefits
development. Propane mowers healthy planet is replacing diesel with
of propane, in comparison to diesel,
help maintenance crews be more clean fuel, Ligocki says. Agility now
made it an easy choice for the school
productive and efficient with offers an even broader portfolio of clean
district.
their ever-shrinking budgets fuel solutions for our customers.
Webpage offers propane- and time constraints. Content The company appointed Garner to
related resources for available for site visitors at the new lead Agility Fuel Solutions Powertrain
municipalities: The Propane online resource includes video Systems business unit. He previously
Education & Research Council testimonials, downloadable success served as president at Heat Technologies,
(PERC) added a new page to stories, infographics and contact an OEM alternate fuel systems provider.
PHOTO BY BRIAN RICHESSON
its website solely focused on information. The video testimonials Agility has a strong reputation and
helping municipalities and public highlight a county maintenance solid track record of success providing
organizations learn how propane department (mowers) and public natural gas fuel solutions to OEM cus-
maintenance equipment can agency (police cruisers) already tomers, Garner says. Adding propane
improve their grounds maintenance utilizing propane. fuel solutions is a natural extension of
our business. LPG

[IN T H E K N O W: P R O PA N E I N V E N T O R Y ]
A partnership with Propane Resources
Q : Could you provide a snapshot of the propane

inventory picture going into the summer-
build season (both on a national and regional
scale) and explain what this means for
propane retailers? U.S. propane inventories are beginning to balance.
A : As we head into the dog days of summer, propane

inventory builds are quickly becoming the dog.
Traders are watching the inventory builds closely.
Every week that we do not build 2.5 million barrels or more,
in 2013 will quickly expose Conway inventory vulnerability.
A draw like that would pull PADD 2 down an additional 7
million barrels. Over the past two decades or so, the PADD
2 March inventory low was 5 million in 2003. In the 2002-03
it adds to every future week needing a larger build than the season, PADD 2 propane prices began under 50 cents per
previous week. gallon, peaked at about $1 and, by the end of March, pulled
The propane industry has been back to 50 cents. The question is: How much of the 26-29
spoiled over the past two build seasons million barrels projected in PADD 2 will be in Conway?
with extraordinary builds. Simply put, PADD 3 (Gulf Coast) looks to end in a range of 40-43
the U.S. propane market has been out million barrels. This is well behind the past two-year Sep-
of balance. There was more supply than tember average of 62 million barrels. Traders have become
demand. Now the pendulum is swing- accustomed to 60 million barrels in the Gulf Coast. Forty
ing the other way. There is more demand million barrels going into winter would be well below their
than supply, and U.S. inventories are comfort zone.
Jeff Thompson balancing. If PADD 3 draws like it did over the past two winters, the
Two years ago, exports were averaging projected inventory level at the end of March 2018 would be
650,000 barrels per day (bpd), September through Decem- 13-17 million barrels of propane. In other words, PADD 3
ber. Last year, exports increased 25 percent during the same inventory would sit at half a months worth of exports. It is
period of 2015 to 812,000 bpd. If 2017 increases 25 percent possible, but one hiccup in the distribution chain in PADD 3
from the same period in 2016, it would equal 1 million bpd, could make for very volatile price swings.
which is about the export pace we were experiencing in May Traders are beginning to demand higher build numbers
2017. This is going to significantly impact inventory builds in PADD 3. This demand will be reflected in price move-
through summer and into winter. ment. For stronger builds to develop primarily in PADD
Based on current reporting and recent history, total U.S. 3 and secondarily in PADD 2, the propane market will be
inventory will end in a range of 75-80 million barrels by the forced to move up in price. The incentive for larger builds is
end of build season in September. This would be about 80 more money for the holder of propane gallons. With 40 mil-
percent of inventory levels over the past two years heading lion barrels of propane going into winter, PADD 3 only holds
into winter. a bit over a month of export capacity.
PADD 1 (East Coast) is starting to look a lot differently
Regional breakdown from a reporting perspective. With the completion of Mari-
Petroleum Administration for Defense District (PADD) 2 ner 2 pipeline upgrades, Marcus Hook will begin to fully
(Midwest) likely will end in a range of 26-29 million barrels. function as an export facility. What happens at Marcus Hook
PADD 2 includes Michigan storage. This is often over- will influence PADD 1 builds. Significant builds will only
looked when people look at PADD 2 numbers and think occur if prices are high enough to incentivize keeping gallons
Conway, Kansas, is the storage facility for PADD 2. Conway in Pennsylvania rather than putting them on a boat. Look
is the primary storage here, but Michigan plays a critical role. for PADD 1 inventory to rise and fall with the flow of boats
Michigan storage, generally speaking, is fed out of west- going in and out of Marcus Hook.
ern Canada. This can give the impression that PADD 2 is in Propane inventories will have to build higher and faster
PHOTO BY BRIAN RICHESSON
good inventory shape. All recent infrastructure and facility as we go through the summer, or prices will take care of it for
upgrades are to move liquids to the Gulf Coast, not to PADD us. LPG
2. Any stronger-than-usual demands strain Conway storage.
Based on the past two-year averages, PADD 2 would end Jeff Thompson is a supply and risk management expert for
in March 2018 in a range of 11-14 million barrels, which is Propane Resources. He can be reached at 888-739-6732 or
in the longer-term normal range. A grain drying season like jeff@propaneresources.com.

[ E V E N T S]
JUNE 28-30 Propane Gas As- JULY 26-28 Pacific Propane Gas SEPT. 18-20 LP Gas Growth Sum-
sociation of New England Summer Association (PPGA) Summer Confer- mit at Reunion Resort in Orlando,
Meeting. For details, contact Caryn ence in Welches, Oregon. For details, Florida. For more about this exclusive
Gwizdala at caryng@pgane.org. contact PPGA at ppga@kdafirm.com buyer/seller networking event, con-
or 844-585-4940. tact Brian Richesson at 216-706-3748
JULY 11-12 PERC Meeting at or brichesson@northcoastmedia.net.
Embassy Suites in Denver. For more AUG. 6-8 Southern Connection
information, contact Anna Lombardo Convention for the Georgia and SEPT. 21-22 NPGA Benchmark-
at anna.lombardo@propane.com. South Carolina associations. Contact ing Council Meeting (Groups G-L) at
Corky Clark at scpga@sc.rr.com or St. Charles Embassy Suites Hotel in
JULY 16-18 Virginia Propane Gas 803-865-2284. St. Charles, Missouri. Contact Lesley
Association Summer Meeting in Garland at lgarland@npga.org.
Virginia Beach, Virginia. For more SEPT. 10-13 NPGA Technology,
information, contact Ben Rowe at Standards & Safety Committee Meet- OCT. 1-3 NPGA Board of Direc-
ben@alliancegroupltd.com or 804- ing in Colorado Springs, Colorado. For tors Meeting at the Hyatt Regency in
726-6015. details, contact Katie Hathaway at Minneapolis. For details, contact Katie
khathaway@npga.org or 202-355-1335. Hathaway at khathaway@npga.org
JULY 26-28 Michigan Propane Gas or 202-355-1335.
Association (MPGA) Annual Conven- SEPT. 14-15 NPGA Benchmark-
tion at Shanty Creek Resort in Bellaire, ing Council Meeting (Groups A-F) at OCT. 3-5 World LPG Forum at the
Michigan. For more information, con- St. Charles Embassy Suites Hotel in Palais des Congrs of Marrakech in
tact MPGA at mpga@kdafirm.com or St. Charles, Missouri. Contact Lesley Marrakech, Morocco. For details, visit
517-487-2021. Garland at lgarland@npga.org. www.worldlpgforum2017.com.
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Guests gather. Room quiets. Spotlight shines.
A propane industry career

is celebrated in this moment.
More than 100 attendees joined us in Nashville to celebrate the Class of 2017.
Now were already looking ahead to 2018. Do you know one of the next
inductees? Submit your nominations at LPGasHallofFame.com.
For more information, contact Brian Richesson at

brichesson@northcoastmedia.net or 216-706-3748.
P R O PA N E S U P P LY
Reliable
access
Propane industry leaders
respond to supply concerns,
plan next steps.
BY MEGAN SMALLEY | ASSOCIATE EDITOR export, according to the U.S. Energy In- enough demand to keep it here.
msmalley@northcoastmedia.net formation Administration (EIA). Addi- According to a letter emailed to pro-
I
ncreased propane production lev- tionally, much of the growth in exports pane industry members in late April,
els and export demand tied to de- is serving increased demand in the ex- NPGA and PERC are taking steps at
creased domestic demand have panding petrochemical sector in Asia. the federal, state and industry levels to
pushed the topic of propane supply Tom Van Buren, chairman of the address propane supply issues and help
to the forefront of many retailers Propane Education & Research Coun- ensure reliable access to propane. These
minds. cil (PERC) and executive vice president steps include:
People are asking, What are we of Ferrell North America, attributes Rail and pipeline prioritization:
going to do if we have some more win- some of the changes in propane supply Communicating with the Association
ter next year if our supply situation is dynamics to the increased production of Oil Pipelines and the Association
the same? says Phil Squair, senior vice capabilities in the U.S. of American Railroads to ensure that
president of public and governmental af- Without a doubt, things are differ- product is flowing to key supply points
fairs at the National Propane Gas Asso- ent from five to 10 years ago, Van Buren in the U.S. during peak usage times.
ciation (NPGA). And thats a legitimate says. It has everything to do with the Hours-of-service waivers: Working
question to ask. shale gas revolution. Because of our en- with the U.S. Department of Transpor-
A recent ICF study revealed that pro- ergy growth in the United States, which tation to review regional hours-of-ser-
PHOTO COURTESY OF THE PROPANE EDUCATION & RESEARCH COUNCIL

pane production in the United States propane is a byproduct of, there is sig- vice waivers.
grew by 70 percent from 2009 to 2015, nificantly more production and supply EIA data: Connecting with the U.S.
while domestic demand declined slight- available than what we have use for in Department of Energys EIA to expand
ly. The U.S. also served as a major im- the U.S. by the retail and petrochemical its supply notifications to include ex-
porter of propane a few years ago, while segments. That is what is leading us to ports in its days-of-supply calculations.
today its one of the largest exporters of have net exports. Research and data: Updating and
propane, according to Stuart Weidie, Despite the changing supply dynam- expanding a 2015 infrastructure study
NPGA chairman and president and ics, the industry has always faced supply to reveal changes in how, when and by
CEO of Blossman Gas. More than 10 issues, Weidie adds. what means propane is moving through
billion gallons of propane were export- What is important for retailers to the supply chain.
ed in 2016, he says, and transportation understand is that many of the dynam- Evaluation of strategic propane
resources remain a concern for many ics or variables in the supply picture have reserve: Collaborating on a study to de-
retailers. changed while some have not, he says. termine the feasibility for potential stra-
Rising production and lower season- Whats changed is that we are produc- tegic reserves based on regional supply
al heating demand the past two winters ing a tremendous amount of propane dynamics.
have made propane more available for in the United States and havent created Regional energy office communi-
P R O PA N E S U P P LY
cations: At the state level, coordinating can we do to coordinate with state and gionally interconnected. Well always
with energy officials and policymakers federal agencies for areas that will have have supply and logistics challenges in
with the goal of educating them about a meaningful impact on us? the future since you dont know when
regional propane supply factors. In a sense, things are no different youll have cold weather or significant
Its key for us to be proactive and from past years, considering what re- crop drying and what that will do at
ahead of the curve on supply issues, gional distribution impacts that may that given time. Despite the unknowns,
Squair says. There are many things occur, such as allocations, outages or there are actions that we are taking now
were doing to prepare now with policy- truck shortages where needed, he as an industry and ones everyone can do
makers. Were also working with state adds. Its just now that we are more re- to improve our overall situation. LPG
energy officials to make sure they know
whats going on so there is awareness on
supply and infrastructure.
Weidie recommends retailers also
make supply plans early this year to
prepare for the 2017-18 heating season.
He advises retailers to ensure adequate
storage at their facilities, contract for
propane earlier and make multiple plans
for transportation of propane.
You need a strong relationship with
your supplier or suppliers, Squair adds.
Get to know your providers and build a
good relationship with them to protect
for winter.
While the current supply situation
poses some concerns for the industry,
Weidie thinks some of these issues could
be reduced if the industry can increase
year-round demand for propane.
We need year-round demand with
autogas, power systems, water heaters
and other applications to keep the pipe-
lines running year-round, he says. If
we dont create non-winter demand for
our product, I think the prospects will
be more difficult for us to ensure reliable
supply in the United States, given that
there are other international markets
that can take our product.
In addition, the industry can learn
from past supply challenges to face some
of todays challenges.
I think the 2013-14 winter was a big
wake-up call for our industry and for all
companies to look at what theyre doing
and learn about whats happening at a
national level, Van Buren says. It called
[marketers] to think about how [supply
is] impacting them and what we can do
about it. I look at this a couple of ways:
What do we have control of on a day-to-
day basis as propane marketers? And
from an association standpoint, what

SAFE T Y
FOCUS ON
driver safety
Americas roads have become a dangerous place,

forcing propane retailers to adapt in a variety of ways.
D
BY KEVIN YANIK el Lisk knows the answer to the ques- As anyone whos ever stepped behind the
SENIOR EDITOR tion before he even asks it. wheel can attest, the road is a dangerous place.
When speaking to various profes- And its not getting any safer, as a 2017 National
sional groups about driver safety, hell Safety Council (NSC) report illustrates.
matter-of-factly ask those in the room According to NSC, the number of motor vehi-
who think theyre above-average driv- cle deaths across the United States totaled 40,200
ers to raise their hand. Not surprisingly, every in 2016. That figure is up 6 percent from 2015
person in the room usually raises a hand. and up an astounding 14 percent since 2014. The
With hands still raised, Lisk then asks a follow- 14 percent jump represents the largest two-year
up to the group. The question: Who here believes spike in more than five decades.
the people around you are above-average drivers? The NSC report also indicates that the es-
Immediately, all of those raised hands drop. timated annual population death rate is 12.4
Motor vehicle When it comes to drivers who are profes- deaths for every 100,000 people, an increase of 5
ISTOCK.COM/SAMIYLENKO
deaths in the U.S.

sionals, they all think theyre very good drivers percent from the rate of two years ago.
are up, according
and they may well be, but there is always room Such data should sober anyone who drives.
to a National
Safety Council for improvement, says Lisk, vice president of Unfortunately, as retail propane companies well
report. safety services at Lytx Inc., a San Diego-based know, the road isnt getting safer for their drivers.
company that specializes in video fleet manage- Certainly, propane drivers are at fault in some
ment and fleet safety services. on-road instances. But because of the training

SAFE T Y
drivers receive through commercial even light up the back of their vehicle
drivers license (CDL) classes and often by simply flipping a switch.
from their own companies and through Four LED lights shine on that
other means, propane drivers are typi- whole area, Hayden says. It makes
cally better prepared for the road than drivers feel better and helps to avoid a
the average person who hops in his or problem.
her vehicle. The challenges Co-Alliance drivers
So, the biggest threat to propane face are no different than those at other
drivers is, arguably, other drivers. propane companies, he adds.
Most drivers on the road are only We experience many other drivers
concerned with their little bubble that who are determined to not follow our
surrounds their car, and theyre not bobtails, Hayden says. We get passed
paying attention to their surround- on double yellow-lined roads, on
ings, says Matt Parsch, general man- bridges and even on the shoulder when
ager of operations at Al Parsch Oil & Lytx's DriveCam system captures footage stopping at railroad crossings. In those
Propane in Imlay City, Michigan. This that can serve as a driver learning tool. dangerous situations, we must slow
leaves not only propane but all big truck down and give the aggressive drivers
drivers the responsibility to be extra at- closely with BT&T (Bulk Truck & additional time and distance to avoid
tentive while on the road. Transport Service Inc.) on the rear bob- an accident.
tail redesign. We cannot change what Co-Alliance has also gotten creative
Creating a safer environment other drivers are going to do, but we can in how it routes drivers so they can in-
So whats a propane company to do avoid putting ourselves in dangerous creasingly avoid unsafe situations.
when the safety of its drivers is partly situations. Avoiding certain areas during peak
in the hands of others? Co-Alliance bobtail drivers can Continued on page 34
There is no cure-all fix to the many
challenges other drivers pose to pro-
pane drivers. Propane retailers can
only control certain factors before they Imagine a day of
send their drivers onto the road. But
some retailers have taken measures to perfect deliveries
enhance driver safety where they can.
Co-Alliance, a farm cooperative
based in Avon, Indiana, for example, Discover the
reevaluated its bobtail design within
the last few years in an attempt to make
Gremlin Propane Tank Monitor
its employees, customers and commu- Having a great tank monitor wont help if its too expensive
to put on your tanks. The Gremlin gives you all the bells
nities safer. Mike Hayden, the propane
and whistles, but at half the cost.
manager at Co-Alliance, heard all too
often how other drivers tailing bobtails Integration directly into
would be startled when bobtail drivers your back ofice system
came to a stop at railroad crossings or App that lets customers
at the end of customer driveways into check their readings and
which they planned to back. connect with you
To avoid sticky situations, Co-Al- Extended battery life
liance invested in more intense rear 10 minute install
lighting that more clearly signals to Cellular and RF versions
AS LOW AS
PHOTO COURTESY OF LYTX INC.
trailing drivers when bobtails are com-

$
99
1.5 million monitors in use
ing to a stop. PER
We have added much more light-
MONITOR!*
*Plus $2 or $3/month monitoring fee depending on unit
ing across the back of our trucks, high-

mounted brake/turn lights in conjunc- 800-440-0472
tion with strobe lighting to make sure angusenergy.com/gremlin
we are seen, says Hayden, who worked

SAFE T Y
Continued from page 33

congestion, turning right and not cross- Assessing yourself and others as drivers
ing highways are ways to keep everyone
safer, Hayden says. 70
60
Technology as a tool 50
The services Lisks company provides 40
are designed to elevate on-road safety, 30
as well. Lytx offers DriveCam, a tech-
20
nology built around video camera foot-
age and supported by analytics of driver 10
habits. The technology has been around 0
Excellent Above Average Average Below Average Poor
for 19 years, Lisk says, but it has gotten
smarter over the years because of col- % Self Assessment % Assessment of Others
lected data Lytx continuously incorpo-
rates into its program. Lytx Inc. surveyed 1,357 attendees of its DriveCam Academy, composed of fleet
As a propane bobtail utilizing the managers and safety/risk professionals. According to Lytx, more than 60 percent of
technology makes its way down a road, attendees assessed themselves as above-average drivers, while less than 10 percent
cameras continuously film inside the believe others are above-average drivers.
cab and the area in front of the mov-
ing truck. But, theres a catch to the recordings Lytx captures: There are accelerometers inside the device that measure
While cameras continuously record, only triggered events a changes in force, Lisk says. It also has a GPS, its measur-
sharp braking, a swerve, an accident are saved, evaluated and ing speed and there are a number of algorithms built into the
made available for a propane companys use. device.
Say a bobtail driver has to brake suddenly to avoid a deer.
DriveCam will capture the event and indicate to the driver
that it was captured through
a flickering light in the cab. Drivers transporting
The captured video will then
be uploaded to a Lytx human propane, whether
review center, which deter-
mines if a coachable behav- in bulk or cylinders,
ior exists.
In the example just have to be even more
described, that would be
marked as near-collision aware of whats going
and unavoidable, Lisk says.
If, however, a potential
on around them.
risk does exist, then the clip Matt Parsch, Al Parsch
is shared with the propane Oil & Propane
company.
As those videos are reviewed and analyzed, it builds our
database, Lisk says. We now have more than 70 billion driv-
ing miles of data that informs our algorithms.
The DriveCam system has even evolved to sense when driv-
ers are texting while driving.
Our technology is continuously getting smarter, and it
has the ability to sense a vehicles positioning in a lane, Lisk
says. We know from looking at thousands of video clips of
distracted drivers that theyll drop off in speed and cross over
lanes. Our camera is intelligent enough to trigger when those
sorts of behaviors are identified. Its continuously improving.
Just having a camera in the cab will initially improve the

SAFE T Y
behavior of most professional drivers,

Lisk adds. After all, most professional
drivers dont want poor behaviors on
the record.
Still, even propane drivers can resort
to bad habits after a couple of weeks
operating under the watchful eye of
DriveCam, Lisk says. So its imperative
that companies employing the system
continuously look for opportunities to
educate drivers about safety.
When we analyze the different be-
haviors we see in videos, these are either
issues of skill or will, Lisk says. By skill,
we might have a driver who was simply
following too close. That often is simply
PHOTO COURTESY OF CO-ALLIANCE
a behavior a driver doesnt realize they

do. But theyre setting themselves up for
a big potential habit. So its just a matter Co-Alliance added several features to the backs of its trucks, including more lighting
and higher-mounted brake/turn lights, to enhance driver safety.
of retraining.
Also, footage proving another driver
is at fault in the event of an accident can at least they know that and they can go their driver is not at fault and now they
be valuable, he adds. solve the problem very quickly, Lisk have the video to defend themselves.
If the video shows it was their fault, says. But well over half the time it shows Continued on page 36

Jamerson McLean SAFE T Y
Corporation
Liability Assessment Services Continued from page 35
Customer Gas System Documentation & Implementation Yet, the problem remains
Regularly incorporating safety into meeting discussions is
Out of Gas Procedure
yet another approach some propane retailers take to keep
Duty to Warn Procedures
drivers safe.
Commercial Driver File Review Our company has three safety trainings a year, and in
Hazardous Material Compliance every meeting, whether its the main topic or not, we cover
Security Awareness driving in some fashion, Parsch says. I believe the more a
Drug & Alcohol Training for Supervisors driver is made aware of the risks and the more times he or she
is given safe-practice information, the more likely they are to
Insured Locations
return home safe at the end of the day.
Tim Lease, energy division manager at Premier Coopera-
tive in Mount Horeb, Wisconsin, suggests retailers utilize Pro-
pane Education & Research Council (PERC)-provided train-
ing materials, including educational information related to
bobtail rollovers.
Also, remind your drivers to Everybody is just
continue to drive defensively,
Lease says. Its a good idea to in a big hurry.
watch cross traffic carefully to
Our insureds have avoided $1,000s of dollars in fnes. Mike Hayden,
make sure other drivers dont blow
Providing Insurance to the Propane Industry for 35 years. a stop sign. Co-Alliance
825 Executive Drive Oviedo, FL 32765 These sorts of approaches to safety training are all worthy
800-393-6640 in that they can better propane drivers for the road. The fact
remains, however, that a top obstacle other drivers is a very
real problem.
Propane drivers can only do so much to protect themselves
from others who insist on cutting them off or routinely put
them in dangerous on-road situations. Law enforcement can
only do so much, too, to mitigate poor driver behaviors.
So whats the answer to move toward safer roads?
If you want to reduce vehicular accidents, you have to
THE MOST make the training more stringent and you have to invest in
highways, says Stuart Flatow, vice president of safety and
I M P O R TA N T training at PERC.
Lease agrees the poor overall condition of U.S. roads and
REASONS bridges contributes to a lack of on-road safety.

There seem to be a lot more road hazards out there, from
potholes to crumbling shoulders, he says.
FOR WORKING SAFELY To Parsch, the state of on-road safety can be attributed to
the participation trophy effect, which entitles everyone to
ARE NOT ALWAYS AT WORK the same fruits.
When people are raised to believe they are good at things
WEVE BEEN PUT TING SAFET Y FIRST FOR 20 YEARS
when they are not, they never really learn the skill or function
Scan to watch they are trying to conquer, he says. This includes driving. LPG
our video
More online
Want more on this topic? Senior Editor Kevin Yanik, the
author of this article, offers a more personal take on the
a different kind of refurbishing company state of road safety in a blog at www.lpgasmagazine.com/
1.855.REFURB1 ditechtesting.com info@ditechtesting.com is-it-me-or-are-the-roads-less-safe.

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W O R K E R S CO M P E N S AT I O N
CAPPING
COSTLY PREMIUMS
Improving workplace safety goes a long way
toward controlling workers compensation bills.
Capping costs
When premiums get too high, its natural to
consider dropping coverage altogether. Unfor-
tunately, thats not an option.
Employers who do not carry workers com-
pensation insurance are breaking the law, says
James Moore, president of J&L Risk Manage-
ment Consultants in Raleigh, North Carolina.
They are also flirting with bankruptcy, which
may well be the only way out if they are hit with a
big civil lawsuit. To go bare and hope something
doesnt happen is to chase fools gold.
The good news is that employers have been
taking steps to bring expenses under control.
Workplace safety has been improving and
injuries have been declining in many states in
recent years, says Peter Burton, senior divi-
sion executive for state relations at the National
Council on Compensation Insurance in Wayne,
Pennsylvania.
E
very company wants happy and Theres also been a moderation in medical
BY PHILLIP M. PERRY healthy employees. costs, thanks largely to the use of more eco-
CONTRIBUTING EDITOR When workplace accidents occur, nomical outpatient treatment. The net result
its critically important to help the has been downward pressure on insurance bills.
injured people recover and return The general trend in workers compensation
to their jobs as quickly as possible. premiums seems to be static or slightly lower,
Workers compensation insurance plays an es- says Randy Sieberg, president of Workers Com-
sential role by paying for medical treatment and pensation Consultants, based in Columbia,
protecting employers from civil lawsuits. Missouri.
Whats good for employee health, though, Theres one more reason for rate stabiliza-
can be bad for the bottom line. Experience too tion: workforce participation.
many workplace accidents or fail to identify and As the economy has picked up in the past
deal adequately with fraud, and escalating pre- few years, more people have entered the work-
miums will take big chunks out of your profits. force, says Daniel Free, president and general
Learn ways to create Workers compensation costs, if not man- counsel of Insurance Audit & Inspection in
PHOTO BY KEVIN YANIK
a safer workplace aged well, can put a company out of business, Indianapolis. That creates a larger labor pool,
and manage workers says Jeffrey Adelson, general counsel and man- which has helped stabilize costs.
compensation costs.
aging partner of the National Practice Group,
Adelson, Testan, Brundo, Novell & Jimenez in Control risk
Santa Ana, California. Conditions vary by state and employer. So how

can you control your own workers compensation bills? Noth- Reduce fraud
ing does a better job than improving safety. Call your broker to report injuries as soon as they occur. Not
You need to do whatever you can to reduce the number of only is it a crime not to report injuries, but delaying often re-
accidents and injuries, Burton says. sults in additional medical costs.
The reason is that premiums go up most quickly for those The longer a case stays open the higher the medical ex-
employers who experience a high number of claims. That penses, which are the biggest driver of workers compensation
means a workplace full of people who get back injuries will costs, Adelson says. Reporting an injury right away will help
drive costs up more than will a single expensive car accident. your carrier in containing medical costs and will help get the
Accident rates influence an employers experience modi- injured employee back to work with the least delay.
fication, which is the factor by which a business premium Early reporting can also help increase the chances of un-
varies from the norm for its industry and state. covering fraud because evidence is easiest to gather immedi-
If you have fewer injuries than normal for your type of ately following an accident. If you do suspect fraud, start your
business, you will get a credit in the form of a lower modifica- investigation right away.
tion applied to your premium, Burton says. If you experience Investigate in a non-threatening and non-emotional man-
a higher number of injuries than normal, your modification, ner, Adelson adds.
and thus your premium, will be higher. He suggests starting with relevant questions such as these:
Watch for dangerous conditions wherever employees are Was a Friday afternoon accident not reported until Monday
operating machinery or driving vehicles. These activities are morning? If so, why? Did the accident occur in a part of the
prime causes of accidents. In addition, be vigilant about areas building where the person had no business being? If so, maybe
where people move from one level to another. they were not really performing their assigned duties. Do you
The risk of a slip and fall is high in such places, especially have cameras in the workplace that might have recorded the
if people are carrying things like cartons of inventory, Moore accident? Did anyone witness the injury?
says. Make sure the steps are well marked and lighted. And Ask for assistance from your insurance company, Adelson
reduce the slipperiness of steps by using what is called anti- Continued on page 40
slip or sandpaper tape. That can really reduce the chance of
accidents by adding roughness to the floor.
High shelves in the stockroom can pose special problems.
Provide quality ladders for employees who need to retrieve
items from upper shelves. Train workers to spot and reinforce
cartons that look insecure.
Here are some other safety tips:
Teach employees about safe lifting techniques and pro-
vide them with back braces.
Install sufficient lighting in all areas of the building.
Make sure the plumbing is working well so people do not
slip on water.
Make sure employees take appropriate work breaks.
While the above ideas will go a long way toward reduc-
ing costly accidents, the fact remains that every workplace is
unique. Keep your eyes open for other unsafe conditions and
practices.
Avoid the temptation to turn your head the other way
when you see dangerous conditions, Adelson says. Take ac-
tion to resolve them.
Finally, when an accident does happen, look upon it as a
learning experience. Determine its cause and institute proce-
dures to obviate similar events.
Get together with your employees and talk about steps you
can take to increase safety, Sieberg says. Write them down in
a manual and have everyone sign off on them. When you take
steps like this, your insurance carrier will see you as a more
desirable risk.

FUTURE SHOCK:
Continued from page 39 the front end to avoid injuries and who Beware of these
suggests, because most carriers have will advocate for you when you have an
what are called special investigation issue with your carrier, Adelson says. cost drivers
units that can help assess fraud. They He offers an example. A number of factors may contribute
can also provide you with handouts or Suppose you believe a certain claim to an increase in workers compen-
posters that explain the seriousness of should be investigated for fraud and sation premiums in the years ahead.
bogus claims. your carrier balks at doing so, he ex- One is the rising cost of health insur-
You can also help reduce the inci- plains. You run the risk of a fraudulent ance, with its attendant change in
dence of fraud by treating people well. claim leading to a higher premium at employee cost participation.
Develop a fair, honest workplace renewal time unless your broker steps An employee who has a $5,000
culture, Adelson says. Unhappy and in and urges the carrier to investigate. annual health care deductible might
bitter people who dont value their jobs And speaking of carriers, dont pick be more inclined to attribute an inju-
are going to file claims and take them one solely on price. ry to workplace duties, says Daniel
all the way. People who respect their Ask your broker to suggest a com- Free, president and general counsel
employers and workplaces will want to pany that will give you sound advice of Insurance Audit & Inspection.
get back to work quickly. about avoiding losses and minimizing Drug prices, too, can play a role.
risks, Adelson adds. Ask if the carrier As drug prices go up, insurance
Shop smart will perform ergonomic reviews and ed- companies may try to recover their
While a safe workplace is the best way ucate you on what to do when accidents higher costs through premium
to control workers compensation costs, or injuries occur. hikes, he says.
you should also select the right insur- And find out if the carrier maintains Another potential cost driver is
ance providers. fraud departments that can help you in- the recent trend toward legalization
You want a broker who understands vestigate questionable accidents. of medical and recreational mari-
your business, who works with you on Continued on page 42 juana use.
Suppose your employee obtains
a prescription for medical mari-
juana, Free explains. Can you law-
fully deny the drugs use? Maybe
so, if the employee is in a high-risk
job, but maybe not if the individual
works in a low-risk setting.
In such cases, there are bound to
be questions as to whether injuries
arise from workplace conditions or
from cognitive impairment resulting
from marijuana use.
Thats a puzzle piece that has yet
to be figured out, Free says.
Finally, state regulators can make
changes that impact premiums. Stay
alert to what your own state has
planned in the areas of proposed
increases in benefit levels, additions
to the list of compensable injuries or
new entries to drug formularies.
State insurance commissioners
have a lot of authority regarding
regulations, fines and penalties,
Free says. You can stay abreast of
what is happening by monitoring
the website of your state depart-
ment of insurance.

Continued from page 40 make up any losses with profits from

You might first approach so-called other lines. That leaves single -line car-
multi-line carriers who also sell insur- riers who specialize in workers compen-
ance in other categories such as prop- sation. Beware, though: Many of these
erty, general liability and automobile. have become more selective in their
However, many such companies have clientele, favoring only those employers
been exiting the workers compensation who have a history of risk control and
market because the low-interest-rate claims management.
environment makes it hard for them to Shopping your coverage can be a
Rising health insurance costs and

drug prices may drive up workers
compensation premiums.
Insurance and Safety Troubadour
smart way to cut costs, and your bro-
ker should be able to suggest additional
channels.
Singing the virtues of Look into Professional Employ-
ment Organizations, Moore suggests.
propane safety and Many of them are accustomed to han-
protable results dling smaller accounts with higher
risks. They also provide other fee-based
for 45 years. services, which often allows them to
provide workers compensation insur-
ance at a more economical price. Fi-
nally, they often are willing to take on
Experienced employers that might be rejected by in-
surance carriers.
Networked Employers who are turned down by
insurance carriers are forced to use the
Problem state pools, where premiums may run up
to 25 percent higher than those in the
Solver private sector. Service may also be less
than optimal. For example, there may
Insurance, safety be no one who will run an ergonomic
management consultant and review to help you reduce injuries.
inspirational speaker.
Keep in touch
No one wants to experience the pain and
Schedule a safety and insurance cost of a workplace accident, but an un-
derstanding employer can help mitigate
lesson from Jay today! the experience.
Once an accident occurs, stay in
www.TheSafetyLeader.com close contact with the injured worker,
Burton says. Helping workers get back
952-935-5350
ISTOCK.COM/S-C-S
into employment as quickly as possible

is an excellent way to help reduce ex-
penses that may lead to premium hikes.
Thats because the employee who

returns to work will be collecting less

compensation from the carrier, not The workers compensation partnership
only for lost salary but also for medical Workers compensation insurance generally sue employers, some
expenses. is a two-way street: Employees are states allow employees to sue for
Employees are likely to be enthusi- covered for medical expenses fol- what is called serious and willful
astic about any program that gets them lowing an accident and employers misconduct. That refers to employ-
back to work early. Thats because they are protected against costly civil er behavior that goes beyond mere
will be compensated at their normal sal- lawsuits. negligence that is so wanton that
ary rather than at the partial level man- Workers compensation is a no- the employer should have known
dated by the workers compensation fault system, which means medical an injury might occur. An example
system. Bear in mind, too, that adjustors expenses are covered, even if an might be deliberately removing
will suspend the workers compensation accident is caused by employee ergonomic improvements to equip-
claims of those employees who refuse error, says Jeffrey Adelson, general ment or furniture.
offered positions, even if those positions counsel and managing partner Employers can also be sued for
are for less-demanding duties not nor- of the National Practice Group, what the law calls retaliatory dis-
mally performed. Adelson, Testan, Brundo, Novell & charge, a term which refers to the
One final tip: Dont take workers Jimenez. In some states, reimburse- termination or punishment of an
compensation claims personally. ment might be denied if injuries are employee who has filed a workers
Understand that every employer intentional or the result of intoxica- compensation claim.
is going to face an occasional workers tion or drug use. You need to check You cannot discriminate against
compensation claim, Adelson says. with your attorney on how your someone who files, or seeks to file,
Good management is usually a mat- own state handles these issues. a workers compensation claim,
ter of mitigating rather than avoiding While injured workers cannot Adelson says.
losses. LPG
Quality Liftgates
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Sideloaders, and Conventional models are all part of the THIEMAN line-up.
For many years THIEMAN has been customizing liftgates to meet specific needs.
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Ph: (800) 524-5210 419-586-7727 Fax: (419) 586-9724
Email: info@thiemantailgates.com Website: www.thiemantailgates.com

COLUMNIST | JAY JOHNSTON
Then and now

When it comes to propane safety, times have changed. Heres how.
T
hose of us who have been landlines, snail mail and face-to-face
around a while occasionally take meetings. Marketers mostly used Mo-
the time to be awed by change, Landlines, snail mail and torola radios from trucks to home base.
innovation and progress regard- face-to-face meetings were This was before computers. When put-
ing safety in the propane industry. ting on safety programs for propane
But then my generation grew up the norm in the 1970s. marketers, we used overhead projectors
watching The Flintstones on one turning plastic pages. I remember uti-
hand and The Jetsons on the other, lizing a round slide carousel showing
so its not like we didnt expect it. Its hard to admit that my firemen walking into burning tanks with hoses, cooling the
generation has bridged the gaps from simpler times to social tank and knocking down the flame to get close enough to
media. close a valve.
When I first got into the insurance business working In 1978, I purchased a propane grill from one of our mar-
with propane marketers in the early 1970s, it was a simpler keter insurance customers. It was still in the box and had the
time, when business communications were achieved through old POL valve. I put the grill together, turned on the tank, lit
the grill and went inside for the hot dogs.
When I came out, the hose was on fire, burned off, and I
had a roaring jet of flames engulfing my new grill. Somehow,
SAFE
my mind clicked to remembering those slideshows. I ran
inside to get an oven mitt, grabbed the garden hose and held
the water on the flame as I walked in to turn off the valve
with the oven mitt. St. Louis Park, Minnesota, was safer that
WAY day for my experience.

This was just one of many experiences that changed my
life, my heart and my work in the propane industry. I have
developed those safety concerns generated in my early years
into active narratives, shared through various facets of my
BEST work.
As an insurance agent, my primary safety concerns were
with containing marketer financial numbers. Over time, I
WAY have learned that when it comes to safety, we all become mo-
tivated to see the light when we feel the heat.
A few years later, I joined the National Propane Gas Asso-
ciation (NPGA) Safety Committee. It was on the safety com-
WEVE BEEN PUT TING SAFET Y FIRST FOR 20 YEARS mittee that I met numerous pioneers of this industry, such as
Scan to watch Emerson Thomas, Ray Murray and Jim Meyer to name a
our video few of many who influenced my understanding of industry
exposures and safety solutions.
The safety committees work generated the old LP Gas
Safety Handbook, which contained more than 90 safety
bulletins covering the important areas of LP gas distribu-
a different kind of refurbishing company tion/operations, emergency procedures, safety meetings,
residential applications, agricultural applications, industrial
1.855.REFURB1 ditechtesting.com info@ditechtesting.com
Continued on page 46

NE
3-T
Exp k Pr
W
rac
and ogr
ed am!
ation Pump
g
WHO: rri s
A
Decision-makers from TRACK 1
Mowers
pre-qualiied retail propane
utogas
operations
LP Gas covers lodging,

meals, beverages and golf for
propane retailers! nd
et
s
a
Oth k
er Mar
Tanks Reg
WHAT:
ul
ks
TRACK 2
ato
Exclusive buyer/seller networking event in which

Truc
propane retailers learn ways to diversify their

rs
oferings, improve eiciencies and grow gallons

es
and
Opportunities for retailers and sponsors to build

vic
partnerships through prescheduled one-on-one

th
O
er
meetings and other networking and recreational

er S
P r o d u c t s/ activities
toring Flee
ni t
WHY: Unpredictable winters
o
Ro
Tank M
TRACK 3
mean undependable gallon sales,
uting
creating a need for propane industry

stakeholders to strengthen year-
round demand areas and improve
day-to-day operations
an
gy
Ot lo
d
h e r Te ch n o
WHEN: Sept. 18-20, 2017
WHERE: Reunion Resort Orlando, Florida
HOW DO YOU APPLY:: Contact LP Gas Editor-in-Chief
Brian Richesson at brichesson@northcoastmedia.net or 216-706-3748.
SAFE T Y FIRST
Continued from page 44 Dispensing Propane Safely and Propane Emergencies.

applications, recreational applications and general safety in- At about the same time, NPGA sold CETP to PERC, leav-
formation. Bulletins and updates were published as produced ing safety mostly in the hands of the propane council. In an
by the committee for insertion in the three-ring binder. My LP Gas column titled The Death of the Safety Committee, I
old copy, published in 1992, cost $15 for members and $50 thanked iconic members of the committee for their contribu-
for non-members. tions and challenged the wisdom of leaving safety solely in
Its publication became controversial in the late 1990s, the name of marketer-driven PERC.
as plaintiffs attorneys were purchasing the book and using In 2006, the NPGA Technology and Standards Commit-
our training material against propane marketers in liability tee voted to add safety to the name, creating the NPGA
cases. It was the beginning of the industrys concerns regard- Technology, Standards and Safety Committee. Today, the
ing best-practice concepts taken often out of context to estab- committee serves as a great networking opportunity to learn
lish liability regardless of relation to actual cause. In 1999, the from industry veterans, marketers and suppliers alike.
book was discontinued due to liability concerns.
The industry effectively dealt with cylinder overfilling by Taking a safety stand
developing the OPD valve mandate in 1998, replacing the old Taking stands in the name of safety has become one of my
POL valve. This is just one example of how far we have come hallmarks. Over the years, I have championed issues and
in addressing problems and designing solutions to prevent challenged the status quo when politics interfered with ob-
accidents. vious safety problems.
With the formation of the Propane Education & Research Cylinder sleeve removal prior to filling and concerns
Council (PERC), NPGA decided to eliminate the safety com- about rust development became a political football and per-
mittee. I served for years on the Certified Employee Training sonal challenge. Current National Fire Protection Associa-
Program (CETP) Certification Committee, involved with tion code now requires refillers to remove plastic sleeves for
initial development of CETP training modules, as well as on cylinder inspection prior to refilling. The change in code es-
the education committee, which developed programs such as tablished a line in the sand for cylinder exchange operations
and refill stations alike to comprehensively examine cylinder
conditions prior to filling.
Another stand was with a 500-gallon tank used to refill
cylinders 2 ft. from a convenience store wall and 5 ft. from
the rear door. My concerns were initiated by the Ghent, West
Virginia, tragedy and wake of liability. Oddly, marketer poli-
tics took a stand for exception, and it took a year to override
objections to get the situation corrected and in compliance.
I encourage all NPGA members and employees to take a
stand for safety. The industry cannot afford to live with black
eyes caused by safety ignorance. If you see something that is
an accident waiting to happen, say something. Your efforts
to keep our industry safe can make all of the difference in
industry image and profitable results.
Today, marketers and suppliers work hand in hand as
stakeholder partners in the safety process.
We have state-of-the-art technology at all ends of the
industry, with smartphones, tank monitoring, remote safety
controls on trucks, PERC consumer safety materials offered
WEVE BEEN PUT TING SAFET Y FIRST FOR 20 YEARS
through social media, e-learning modules for industry train-
Scan to watch ing and emergency personnel, and consumer education. Still,
our video it takes trained hands and minds to achieve safe results.
When you think of our industrys history on safety, weve
come a long way, baby. LPG
Jay Johnston (www.thesafetyleader.com) is an insurance exec-

a different kind of refurbishing company utive, safety management consultant and motivational safety
1.855.REFURB1 ditechtesting.com info@ditechtesting.com speaker in the propane industry. He can be reached at jay@
thesafetyleader.com or 612-802-0663.

COLUMNIST | TOM JAENICKE
Customer habits
Is your company out in front of technology advances or being left behind?
I
am a propane customer living in I know the propane industry prides
rural America and technology itself on the great customer service
advancements are affecting my life Consider ways to automate you all claim to provide through our
wherever I turn. friendly customer service representa-
If your propane company is stuck mundane service needs tives, but have you looked at ways
in yesteryear, you are feeling the effects to automate more mundane service
of technology changes and not in a
with new technology. needs like delivery orders and pay-
positive way. Here are some examples ments, to free up customer service
of technology changes that may seem representatives to handle more com-
small, but cumulatively they are rock- loaded onto the airplane. plicated service issues? Do you have
ing your business world. While business travel is not my a customer portal on your website,
When I went to the mailbox this favorite thing to do, this type of auto- and does it provide everything your
week, a phone book had been delivered. mation technology sure makes it sim- customers would expect to find, based
I always open to the Yellow Pages sec- pler and more worry free. As a result, on their experiences with other service
tion of a new phone book to see if any it makes me less price sensitive and providers?
propane companies are still running less inclined to fly on another airline. In the past, I always took the naviga-
display ads. This time it was just some Even an old guy like me is embracing tion option when I rented a car. Now I
bold listings. I also noticed that the this type of technology. just use my smartphone and Google to
phone book was about 20 percent thin- Think about your propane cus- source my destination. I get a naviga-
ner than the last years edition of the tomers and their experiences in your tion map and turn-by-turn voice in-
same book. That means propane com- delivery scheduling, receiving deliver- structions from my smartphone that
panies arent the only types of business- ies, and being billed for and paying for are highly accurate and easy to follow.
es that are abandoning Yellow Pages. propane. Do you have the proper level Are you using the latest generation
Technology, in the form of website of automation technology to provide automation technology in routing your
search engines (Google, Yahoo, etc.) on your propane customers a simpler deliveries? Your drivers and, ultimately,
smartphones, has almost entirely dis- and more worry-free energy experi- your customers will appreciate it, and
placed paging through the old phone ence than your competitors? If you the added efficiency will also bring
book. Do you have a website? Is it mo- do, those customers will be less price profit dollars to your bottom line.
bile friendly? And is it optimized for sensitive and less inclined to switch In conclusion, look around you.
this type and volume of search traffic? energy providers. Advancements in technology are
This same search engine technology On the same business trip, I needed touching almost everything your
made encyclopedias and dictionaries a rental car so, not having a mobile customers are doing in everyday com-
obsolete, and it will have the same ef- app for a preferred rental car company, merce. They are looking for that same
fect on phone books. I used my phone to order my rental type of experience from you. Are you
On a recent business trip to a major car through an automated voice rental ready to deliver on that expectation?
metropolitan area, I arranged for the system. I never had to talk to a live Dont get left behind. LPG
flight on the airline mobile app on my person. I received confirmation on the
smartphone, got an email confirmation rental by email a few seconds after I Tom Jaenicke is vice president of pro-
and invoice, checked in for the flight finished the call and had an invoice pane marketing services at Warm
with the bar scan from that same mo- charging my credit card sent to me by Thoughts Communications, providing
bile app on my phone, and, as I settled email a few minutes after I returned solutions for the energy services indus-
into my assigned seat, I got an email the rental car. This process was simple try. He can be reached at tjaenicke@
telling me my checked luggage was and trouble free. warmthoughts.com or 810-252-7855.

EDITOR IN CHIEF | BRIAN RICHESSON
Delivery efficiency
North Carolina retailer aspires to stand with best in logistics business.
A
rmistead Mauck hopes to one Seven years later, Cherry Energy and realize a return on investment.
day relate his company, Cherry continues to adjust and implement Getting buy-in from employees
Energy, to the likes of Amazon, parts of the dispatch system. The sys- and customers is also a big part of the
FedEx and UPS. In some ways, tem operates on eight delivery trucks, process, he says. Otherwise, a company
hes already doing so. including five propane bobtails, as they wont take full advantage of its invest-
No question, all of us in this indus- travel to about 3,500 active tanks. ment; employees will stray from the
try are in the logistics business, the Around the same time, as part of the technologys intended usage; and cus-
vice president and co-owner at Cherry process to explore the delivery efficien- tomers wont understand how retailers
Energy says. cy concept, Cherry Energy invested in are trying to make their lives easier.
He calls these delivery companies tank monitors for those customers that Go to your employees and say
our inspirations. are difficult to forecast. The retailer Heres what were looking at so they
When the FedEx guy comes to my uses about 100 monitors, occasion- know where youre taking them,
house, he pulls his Motorola handheld ally moving them to different tanks in Mauck says.
out. I sign it, and no sooner than I walk order to build a consumption profile. Also, before going all-in on technol-
in the door and sit at my computer, I We collect data on tank assets, ogy investments, Cherry Energy hired
get an email showing the delivery to my Mauck says. An example of an asset an IT member for its staff and then
house and that I signed for it. might be a furnace or a cooktop. Each began shopping for vendor partners.
We aspire to do that. asset has a different consumption The company has been using dispatch
Mauck says successful logistics com- profile. One might be based on degree- and tank monitoring solutions from
panies like these make the process of days and another on fixed daily usage. SkyBitz, integrated with a software so-
doing business with them easy. Its the same for commercial customers. lution from DM2.
Ultimately our goal is to use tech- All of this is based off [the idea of] Mauck says its important that ven-
nology to do business better and more Take control of routing your truck, dor technology companies work well
efficiently than anybody out there so he adds. Dont give that control to together and that their leaders show
we can treat our customers better than your customer because every customer a willingness to listen, work with and
anybody else and differentiate from the wants you to do something different. support retailer customers throughout
competition, he says. Cherry Energys next technology the process.
push is delving deeper into truck rout- Its not [just] the software solution
The next FedEx? ing so drivers can make the best use of you buy or what youre trying to ac-
Cherry Energy, a propane, fuel oil and company time. complish. Its the stuff in the middle,
gasoline retailer in Kinston, North Car- Its like Disney World. Well never he says. Can you get what you want
olina, is following a similar path with finish considering the possibilities out of the software? Can the guy who
its dispatch system. But the transition with technology, Mauck says. Thats works for your company understand
didnt happen overnight. what makes it fun. You get up every day how you operate delivery? Its the stuff
In fact, the company first identi- and have something else to work on. in the middle. LPG
fied the concept of delivery efficiency
in 2008 and spent the next two years What it takes Retailer tech stories: Are you a propane
talking about the possibilities and Mauck stresses the importance of a re- retailer with a story about how tech-
considering the payback of adopting tailers full commitment to technology. nology has improved your business?
dispatch technology. Installation of the It never moves as fast as you want, Let LP Gas magazine know. Email
technology to remotely dispatch, track he says of the process, noting the pa- brichesson@northcoastmedia.net
and confirm delivery in real time and tience and discipline companies must or call 216-706-3748.
invoice on the same day began in 2010. show to implement a system correctly

Mobile delivery options
Westmor Industries released three mobile delivery
options for its Blueline bobtail, each of which serves a
specific purpose. The company offers an autogas fill
cabinet from its mobile fleet fueling system, a bottle fill
cabinet from its mobile cylinder filling system and a ser-
vice pack cabinet from its mobile utility toolbox system.
Each cabinet saves the cost of purchasing extra bobtails
and equipment with a simple add-on cabinet, Westmor
says. The autogas fill cabinet enables drivers to fill small
fleets with propane autogas while still allowing them
to make standard deliveries, and the bottle fill cabinet
helps drivers fill smaller cylinders using a built-in scale
while drivers continue to make deliveries. In addition,
the service pack cabinet (shown here) allows for con-
venient access to tools and storage. The service pack
cabinet also features several layout options, and it
can be paired with other cabinets for a more efficient For more information about the cabinets, visit www.
delivery system, the company adds. westmor-ind.com.
The New & Improved

Mobile App
Set up new cellular hardware while on-site
Scan hardware bar codes instead of typing
serial numbers
Access tank and asset readings
while on-site
Capture coordinates based on location
View Quick Reports
Save favorites to prioritize top accounts
and locations
Take and attach pictures of tank sites
866.493.7762
www.WESROCSOLUTIONS.com

CLASSIFIED ADVERTISING BLIND BOX REPLY OPTIONS
All ads must be prepaid by the classified closing date. Visa, Mastercard, & American Mail: LPG MAGAZINE / BLIND BOX #
Express orders are accepted over the phone. Please send you ad copy with prepay- 1360 E. 9TH ST., STE. 1070
ment to the following address: LP/Gas, Attn: Kelli Velasquez, 1360 E. 9th St., Ste. 1070, CLEVELAND, OH 44114
Cleveland, OH 44114. Email: CANDERSON@NORTHCOASTMEDIA.NET
CONTACT SALES EXECUTIVE KELLI VELASQUEZ FOR RATES TODAY!
Direct Dial: 216-706-3767 Email: kvelasquez@northcoastmedia.net Please specify magazine name and blind
Fax: 253-484-3080 box number in your correspondence.
CLASSIFIED SHOWCASE
FOR SALE

FOR SALE (contd)
CLASSIFIED SHOWCASE
2005 Sterling 3499 Gallon Tank, Caterpillar

Diesel - 5-speed transmission, LCII Printer
in cab, Guide Master - Mileage 105,000.
$29,000. Call 516-924-6824. 7/17
1990 Ford F700 Bobtail 2500 Gal. Trinity Tank. 2007 INTERNATIONAL 4300 DT466, 255HP, 6
Have U-1A, propane running truck. Everything speed Manual, 175k miles, 3200 Gallon Barrel, LC
2008 GMC C-7500 3499 Barrel Haney Guide works. Spare truck. Hannay guide master, Meter with LCR2. New clutch, New brakes, and New
Master, V-8 Propane - Automatic, LCII Printer in cab, Neptune meter, Pumps well. $ 7,500.00 OBO. Hydro and VK. $53,900.00. Call Jason @ 1-715-
118,059 Miles, $29,000. Call 516-924-6824. 7/17 Performance Propane, Jim 770-227-5763 6/17 493-4138 www.draegerpropane.com 6/17

FOR SALE (contd)
CLASSIFIED SHOWCASE

FOR SALE (contd)
CLASSIFIED SHOWCASE
R Stamp Repair Shop Repairs, Parts
V, K, I, P Inspections, Testing Service Bodies
New, Used Quality Bobtails & Crane Trucks
www.kurtztruckequipment.com
(800) 848-3468

FOR SALE (contd)
CLASSIFIED SHOWCASE
EQUIPMENT FOR SALE
PLACE YOUR AD TODAY!!

BUSINESS SERVICES CAREER OPPORTUNITIES
CLASSIFIED SHOWCASE
EXPOSURE - Reach highly-targeted, market-specific

business professionals, industry experts and prospects.
Now, Even more LP Gas Exposure When placing or renewing your classified ad,
we will send out a tweet, bringing more traffic to your online ad.
enhance
your ad with color
Contact Kelli Velasquez today! To place your ad in the classified showcase.
216.706.3767 kvelasquez@northcoastmedia.net

CAREER OPPORTUNITIES SOFTWARE
CLASSIFIED SHOWCASE
SOFTWARE
WANTED
WANTED TO BUY, LP OR NH3 TRAILERS,

9,000-15,000 GALLON, 125-265 PSI,
READY TO WORK, OR READY TO
REBUILD, CALL BRAD, 219-880-
5635, DO YOU KNOW WHERE ONE IS?
FINDERS FEE $$$$$$$$ 8/17
TANK INSPECTOR: Somerset, PA based USED PROPANE BOBTAIL TANKS WANTED:

manufacturer seeking a full-time 49CFR Looking to buy good used 2400/2600-gallon bobtail
registerecd tank inspector. Must have experience tanks, need good U1A on the tank. Call Lonnie
with MC331, DOT 406, 407, and 412. Welding Buckler at 816-920-2937 or Wayne Terpstra at 816-
experience a plus, but will train successful 920-2889. Custom Truck & Equipment, LLC 2/18
candidate. Email krm@jjbodies.com, Apply
online at: www.riggsindustries.com, or mail
KRM, PO Box 86, Boswell, PA 15531. 6/17
Looking to purchase Old Lockheed electronics
meters Model #900. Please contact:
PLACE YOUR AD TODAY! Hampton Tank Gas at 631-537-0297. 6/17

COMPANIES TO WATCH
Pike Propane
Georgia retailer grows from nursery business, features an all-female staff.
BY MEGAN SMALLEY | ASSOCIATE EDITOR county as a local
msmalley@northcoastmedia.net retailer. The cou-
P
ike Propane tends to surprise ple operated Pike
new customers on its first deliv- Propane at the
ery to an account. nursery location,
Its amazing the reactions managing both
we get when customers see a lady get- of the businesses
ting out of the truck to deliver their until 2000 when
propane, says Marjorie Harrison, they opted to
owner of Pike Propane. Its sort of close the nursery
cool, I think. to focus on grow-
Pike Propane serves as an all-female ing the propane
retailer in central Georgia, with Har- business.
rison as the owner and her daughter, Transitioning
Beth Kemp, as a driver. Harrison also to the propane Pike Propane features an all-female
hired a part-time employee, Stephanie industry proved to be challenging, but staff, pictured above. From left:
Richardson, to help as a driver and with it provided the Harrisons with more Marjorie Harrison, Stephanie
other jobs around the office. All three business than what they experienced Richardson and Beth Kemp
women perform service work, she adds. with the nursery. The couple concen-
Harrison started Pike Propane with trated on connecting with the com-
FOUNDED: 1998
the help of her late husband, Wayne, munity, and after a few years the news
in the late 1990s. At the time, the two about Pike Propane spread naturally. FOUNDERS: Marjorie and Wayne
owned her parents nursery, but the The community definitely wanted Harrison
nursery was struggling to stay open due someone local to serve them, but it OWNER: Marjorie Harrison
to competition from big-box stores like took a while for them to be comfort-
HEADQUARTERS: Concord,
Wal-Mart. Harrison knew she needed able with us, Harrison says. I knew
Georgia
to find a new way to make ends meet. this from experience, as I had always
While working at the nursery one used the same propane company to PROPANE SALES: 355,751 annual
afternoon, Harrison noticed several heat our nursery. When youre com- gallons
bobtails driving along the road near fortable, why change? But we proved EMPLOYEES: 2.5
the nursery. After some research, she to the community that we were here to
CUSTOMERS: 500
learned that the bobtails had come stay as Pike Propane.
from companies outside Pike County, When Wayne died in 2014, Har- BOBTAILS: 2
Georgia. rison contacted Kemp to see if she ONLINE: www.pikepropane.com
None of those bobtails were from would help with the family business.
PHOTO COURTESY OF PIKE PROPANE
our county, Harrison says. This To Harrisons delight, her daughter

seemed like an answer to us. We were agreed without hesitation to help as company features an all-female staff,
also using propane to heat our nurs- a driver. She also hired Richardson they often warm up to the fact, Har-
ery, so we were familiar with it. We around the same time as a part-time rison says. In addition, Pike Propane
decided we would get into the propane employee. is in the process of receiving national
business. Harrison hopes to keep Pike Pro- certification as an all-female business
Harrison and Wayne launched Pike pane as an all-female company. While from the Womens Business Enterprise
Propane in 1998 to fill a void in the customers might be surprised that the National Council. LPG

See the Difference.
Service techs will love it.
We listened to their feedback.
A better design is the result.
Easier to Find
Our new bonnet design features laser-
engraved information that is easy to see
and matches available stickers for gas
check and record keeping.
Easier to Adjust
We redesigned our adjusting screw to be
easily turned.
No Special Tools Required

Our 1/8" pressure plug ports conform to
7/16" hex wrenches.
Protective Packaging
A sturdy box with a stabilizing insert
keeps the regulator in perfect shape.
Our team listened carefully to the service technicians who work with RegO regulators
out in the ield. The result is an improved design that makes our regulators* easier to
use and easier to choose. To learn more, contact your authorized RegO dealer today.
336-449-7707
regoproducts.com
*Series LV4403, LV404B4, and LV404B9.

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