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LP Gas Hall of Fame: Four newinductees comprise fifthclass at Nashville ceremony
THE PROPANE INDUSTRY’S PREMIER INFORMATION SOURCE | www.LPGASmagazine.com MAY 2016
Propane’s back in the national
spotlight, with plans now to
improve public perceptions
VOLUME 76 | NUMBER 5
NEW CONSUMER C AMPAIGN
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A BLACKTIE AFFAIR
e LP Gas Hall of Famewelcomes four newmembers as part of its fihclass of inductees, with a
celebration in Nashville.
30 |
DRIVING TOWARD
A DEAL
Several propane industryrepresentatives share bestpractices in acquisitions ata Propane Expo session.
37 |
DOG DAYS
OF SUMMER
New residential-basedmarketing campaigndesigned to endear thepublic to propane.
46 | 28
The propane industry’s premier information source
www.LPGasmagazine.com May 2016 LPGas | 3
MAY 2016
V O L U M E 7 6 | N U M B E R 5
On the cover | Photo courtesy of the Propane Education & Research Council.
6 | OPENING DELIVERY | Someaction items on LP Gas’ Hall of
Fame, Growth Summit8 | PHOTO DROP | A gallery of
photos from recent industryevents
10 | VITAL SIGNS | U.S. propaneproduction levels expected toincrease through 2017.
58 | SAFETY FIRST | Life lessonslearned – from the PropaneExpo to Broadway Avenue
PROPANE EXPORECAP | Nashville livesup to the hype whiledrawing a crowd.
28 |
Features
Departments
30
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4 | LPGas May 2016 www.LPGasmagazine.com
ONLINE. Visit www.lpgasmagazine.com to get the latest
propane industry news. Also visit us at facebook.com/
lpgasmagazine and twitter.com/lpgas_mag.
60 | LEGAL BRIEF | A reminder for propane retailers to
use business items that meet industry standards
62 | SERVICE AND MAINTENANCE | A mild winterprovides early opportunities for retailers to improvetheir assets and skills.
64 | PRODUCT SHOWCASE | Propane tank heaters,grilling accessories, fire pits and more
72 | SNAPSHOT | Outside work experiences help afamily-run retailer gain fresh perspectives.
72
LP Gas (ISSN 0024-7103) is published monthly by Nor th Coast Media LLC, IMG Center, 1360 East 9 thStreet, Suite 1070, Cleveland, OH 4 4114. Subscription rates: For US, Canada and Mexico, 1 year$49.95 print and digital; two years $73.92 print and digital. All other countries, 1 year print and digital$134.95, 2 years $199.95. For air-expedited serv ice, include an additional $75 per or der annually. Singlecopies (prepaid only) $10 plus postage and handling. For current single copy or back issues, call 847-763-4942. Periodicals postage paid at Cleveland OH 44101 and additional mailing offices.
POSTMASTER: Please send address change to LP Gas, PO Box 2090, Skokie, IL 60076. Printed in theU.S.A.
Copyright 2016 North Coast Media, LLC. All rights reserved. No part of this publication may be
reproduced or transmitted in any form by any means, electronic or mechanical including by photocopy,recording, or information storage and retrieval without permission in writing from the publisher.Authorization to photocopy items for internal or personal use, or the internal or personal use of specificclients is granted by North Coast Media, LLC for libraries and other users registered with the CopyrightClearance Center, 222 Rosewood Dr, Danvers, MA 01923, phone 978-750-8400, fax 978-750-4470. Callfor copying beyond that permitted by Sections 107 or 108 of the U.S. Copyright Law.
SUBSCRIPTIONS: Subscriptions to LP Gas are available by calling 847-763-4942.For single back issues, call 847-763-4942.
North Coast Media LLC provides certain customer contact data (such as customers’ names, addresses,phone numbers and e-mail addresses) to third parties who wish to promote relevant products,services and other opportunities which may be of interest to you. If you do not want North CoastMedia LLC to make your contact information available to third parties for marketing purposes, simplycall 847-763-4942 between the hours of 8:30 am and 5:00 CT and a customer service representativewill assist you in removing your name from Nor th Coast Media’s lists.
(440) 236-6009SuperiorNRG.com
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The PRO-Vend 2000offers a superior systemfor tracking and reporting\RXU ÀHHW¶V SURSDQH IXHOusage.
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EditorialEditor in Chief:Brian Richesson216-706-3748Fax: [email protected]
Senior Editor: Kevin Yanik
216-706-3724Fax: [email protected]
Associate Editor: Megan Smalley216-363-7930Fax: [email protected]
Digital Media Content Producer:Allison [email protected]
Art Director: Kim [email protected]
Production
Production Services Manager: Chris [email protected]
Advertising Sales & MarketingPresident and CEO: Kevin Stoltman216-706-3740Fax: [email protected]
VP Finance & Operations: Steve Galperin 216-706-3705 [email protected]
VP Graphic Design & Production: Pete Seltzer216-706-3737
[email protected]: Brian Kanaba216-706-3745Fax: [email protected]
Greg NollExecutive Vice
President,PMAK
Topeka, KS
Larry OsgoodPresident,
ConsultingSolutions LLC,
Monument, CO
Jim RenaldoDirector, Sales &
Marketing, RenaldoSales & Service Inc.,
North Collins, NY
Mike WaltersVice President, Safety
& Training, SuperiorEnergy Systems,
Columbia Station, OH
LP Gas does not verify any claims or other information appearing in any of the advertisements containedin the publication, and cannot take any responsibility for any losses or other damages incurred by
readers in reliance on such content. LP Gas welcomes unsolicited articles, manuscripts, photographs,illustrations and other materials but cannot be held responsible for their safekeeping or return.
Editorial Advisory Board
Jaime AlbertiSales & Marketing,
Hilco Transport Inc.,Wilmington, NC
Patrick HylandDirector of Industry
Programs, PropaneEducation & Research
Council, Cleveland, OH
Dale DelayPresident,
Cost ManagementSolutions,
Livingston, TX
Tom Jaenicke VP of
propane marketing
services, Warm ThoughtsCommunications,
Charlevoix, MI
1360 East 9th St., Suite 1070IMG CenterCleveland, OH 44114855-460-5502www.LPGasmagazine.com
Account Manager: Ryan Gerard216-363-7932Fax: [email protected]
Classified Representative: Kelli Velasquez216-706-3767
Fax: [email protected]
Senior Audience DevelopmentManager, List Rental:Antoinette Sanchez-Perkins216-706-3750Fax: 702-586-2790North Coast Media8756 Castle View Ave.Las Vegas, NV [email protected]
Marketing Manager:Scott [email protected]
Marketing & Sales Manager,Buyers Guide:Chloe Scoular
Digital Operations Manager:Bethany [email protected]
Web Developer:Jesse Malcmacher216-363-7925 [email protected]
Reprints & Permissions:Brett [email protected]
Subscriptions/Back Issues/Customer Service:847-763-4942
Fax: 847-763-9694www.lpgasmagazine.com/lp-gas-content/subscriber-services
www.LPGasmagazine.com May 2016 LPGas | 5
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April is a busy month for us at LPGas magazine.
Not only are we planning forthe propane industry’s largest
trade show, the Southeastern Conven-tion & International Propane Expo, butwe’re also planning for the annual LPGas Hall of Fame induction ceremony.
This year marked a milestone forthe LP Gas Hall of Fame, as we cel-ebrated the fifth class of inductees. BillByrne of Warren Petroleum Co., Rob-ert Y. Love Sr. of Lampton-Love Inc.,Daryl McClendon of DFM Enterprisesand Thomas Nunan Jr. of SuburbanPropane comprise that memorableclass (see page 30), honored at a black-tie dinner and ceremony last month in
Nashville, Tenn.But as we reach that first major
mark on any timeline, our messageabout the honor and the event bearsrepeating, especially after one of ourmost successful inductions, which drewabout 130 attendees to the Omni Nash- ville Hotel a day before the PropaneExpo.
We welcome your nomination of apropane industry leader – of the pastor present, someone who has helped
establish, advance and grow the indus-try in some way. As we like to say, thesepeople have “moved the needle” in apositive direction for the industry.
While our list of nominees hasgrown to about 80 in recent years, werecognize other deserving individualsremain at large and we want to en-sure the industry is familiar with thenominating process. Take some time tothink about those leaders you know.
Just like presidential candidatesencouraging the public to vote during
this primary election season, we’d liketo send a similar message: Simply go tolpgashalloffame.com (our new website
devoted to the LP Gas Hall of Fame)and click on the “Nominate” tab. Tell usin great detail who deserves inductioninto the LP Gas Hall of Fame and why.You can also find articles, videos andevent information on our new site.
An anonymous selection commit-tee, including the LP Gas staff andother industry members, considers thesubmitted nominee information whendetermining the next class of inductees.The LP Gas Hall of Fame is truly a pro-
pane industry peer-driven honor.Nominations for the 2017 class are
open through Sept. 30. Will the spot-light shine on one of your nomineesnext April in Nashville?
LP Gas Growth Summit
We spend time at trade shows talk-ing to propane retailers about theirbusinesses. And lately we’ve spenttime talking to them about the LP Gas
Growth Summit, a unique networkingevent that launched last year.
Our promotions really ramp up inApril for the October event held at Re-union Resort in Orlando, Fla.
The propane industry has facedchanges, challenges and threats to tra-ditional markets in recent years. TheLP Gas Growth Summit introducesopen-minded retailer decision makersto vendors in growth markets so theycan consider new ways to expand theirbusinesses and create year-round pro-pane demand.
In what we like to describe as aspeed-dating-type format, retailers and vendors visit one on one in presched-uled 20-minute meetings before anannouncement shakes up the room fora new round of conversation. Growth
markets on which we focus include au-
togas, commercial mowing, generators,irrigation engines, tankless water heat-ers, technology and more.
This intimate event, in which LPGas covers retailers’ lodging, meals
and golf, is only open to the first 25eligible attendees. We’ve filled about aquarter of available spaces, so please letus know if you are interested in attend-ing. Email me at my address below. Formore details, you can also view our adon page 63 or access videos from lastyear’s event at youtube.com/lpgtv2. LPG
EDITOR IN CHIEF | BRIAN RICHESSON
Nominations are openCommunicating action items on LP Gas Hall of Fame, Growth Summit
6 | LPGas May 2016 www.LPGasmagazine.com
Lampton-Love’s Rob Love accepts the
LP Gas Hall of Fame award for his father.
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8 | LPGas May 2016 www.LPGasmagazine.com
1Charles Esten of the ABC drama “Nashville”performs during his keynote address at the
Southeastern Convention
& International Propane Expo in
Nashville, Tenn.
2
Daryl McClendon gives hisacceptance speech upon
receiving the Propane
Education & Research Council’s
Exceptional Energy Award in
Nashville. The propane industry
veteran was also inducted into
the LP Gas Hall of Fame.
3Sam and GinnyMcTier promotethe National
Propane Gas Association’s
scholarship fund, benefiting
children of membercompany employees, on
the Propane Expo trade
show floor. They hold signs
showing scholarship winners
Kolbe Sheetz and Hannah
Myers.
4Chelsea Summers,daughter of VFG Leasing
& Finance’s Bill Summers,
and Bryan West perform during
the Young Gassers reception atthe Hard Rock Cafe in Nashville.
5Daryl Ingalsbe ofIndependent Technologies (WESROC) explainsdetails of the company’s tank monitoring
system at LP Gas’ Propane Expo booth.
6The Ditech Testing team poses with a Gibsonguitar that it gave away in a drawing at the
Propane Expo. Ron Brodwater (not pictured),
general manager at Midwestern Propane Gas Co. inBelleville, Ill., was the lucky winner.
Photo
Drop
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If you think it’s time to transition ownership, consider leaving on
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P R O P A N E M A S T E R L I M I T E D P A R T N E R S H I P C O M P A R I S O N Fiscal Recent Total Units Year Quarter Price Current Current Est. Tax Debt/ OutstandingCompany End End (4/15/16) Distribution Yield Deferral Capital (millions)
AmeriGas (APU) Sept. Dec. $42.67 $3.68 8.6% 75% 66% 92.9
Ferrellgas (FGP) July Jan. 18.13 2.05 11.3 90 97 98.0
NGL Energy Partners (NGL) March Dec. 8.44 2.56 30.3 80 64 107.1
Suburban Propane (SPH) Sept. Dec. 30.42 3.55 11.7 80 59 60.7
Average: 15.5% 72%
L A S T T W E L V E M O N T H S
Gross Gross Gross Profit Gross Profit Retail Gallons Sold Percent Gr oss ProfitCompany Revenue Profit Margin (Per employee) (millions) Change (Per gallon)
AmeriGas $2,374 $1,423 60% $167,418 1,139 -8% $1.19
Ferrellgas 1,267 646 51 178,208 569 -8 0.80
NGL Energy Partners 1,093 236 22 75,991 164 0 0.16
Suburban Propane 1,054 687 65 188,338 456 -10 1.51
Average: 49% $152,489 -7% $0.92
Source: FactSet, partnership reports and Wells Fargo Securities LLC
• Dollar figures in millions, except for per-unit data.
• Revenue and gross profit data are based on total propane gallons sold.
• Employee data is based on most recently completed fiscal year.
• NGL’s revenue and gross profit data include the sale of distillates and
other natural gas liquids.
Sharon Lui – analyst, Wells Fargo Securities LLC
N E W S B R I E F S
I N D U S T R Y N E W S & N U M B E R S
U.S. production of hydrocarbon gasliquids is expected to increase from3.86 million barrels per day (bpd)in 2015 to 4.33 million bpd in 2017,
according to the U.S. En-ergy Information Admin-istration’s (EIA) Short-Term Energy Outlook.
Hydrocarbon gas liq-uids include ethane, pro-pane, butanes and naturalgasoline.
Hydrocarbon gasliquids are produced at both natural gasprocessing plants and petroleum refineries.EIA says natural gas plants are expected toprovide more than 95 percent of the fore-casted hydrocarbon gas liquids productiongrowth.
Between 2008 and 2015, hydrocarbongas liquids production at natural gas pro-cessing plants, including fractionationfacilities, increased as a byproduct of the
growing supply of naturalgas from shale gas andtight oil formations.
In its Short-TermEnergy Outlook, EIAexpects hydrocarbongas liquids productiongrowth to continue tooutpace natural gas pro-
duction growth in 2016 and 2017 as morehydrocarbon gas liquids infrastructureprojects are completed.
According to EIA, ethane productionis expected to increase at a faster rate than
Improper cargo tankinspections discovered The Federal Motor CarrierSafety Administration
(FMCSA) issued a safetyadvisory to notify own-ers and operators thatsome cargo tank motorvehicles were improp-erly inspected and theymust be reinspected andretested before continu-ing service.
According to FMCSA,the advisory appliesto cargo tanks thatwere inspected ortested from April 2011through March 2016by H&W Tank Testingin Ohatchee, Ala., orChristopher Humphriesin Jacksonville, Ala.
Even though bothinspectors are based inAlabama, the NationalPropane Gas Association
recommends all mem-bers review their cargotank records. The asso-ciation adds the noticecould affect members asfar as the Middle Atlanticregion.
Cargo tanks improp-erly inspected by thesefacilities must be rein-spected and retestedas soon as possible by
a cargo tank facilityregistered with FMCSA.Before resuming service,cargo tank owners mustprovide FMCSA withdocumentation that allaffected cargo tanks areproperly reinspected andretested.
Visit FMCSA’s SafetyAdvisory page at
fmcsa.dot.gov/safety formore information.
EIA: US to increase production of propane,
other hydrocarbon gas liquids through ’17
10 | LPGas May 2016 www.LPGasmagazine.com
Natural gas plants
are expected to drive
most of the growth.
Continued on page 12
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Deviation Deviation
From Last 12 From
State March Norm Months Norm
Alabama 218 -128 2058 -796Alaska 1073 -234 9400 -1839
Arizona 135 -140 1879 -292
Arkansas 308 -124 2767 -757
California 275 -83 2168 -479
Colorado 824 -86 6535 -906
Connecticut 667 -179 5060 -1041
Delaware 481 -189 3763 -1003
D.C. 353 -210 3180 -898
Florida 32 -46 410 -288
Georgia 235 -123 2249 -649
Hawaii 0 0 0 0
Idaho 726 -74 6120 -818
Illinois 623 -207 5271 -1116
Indiana 563 -208 4857 -1068
Iowa 720 -180 6106 -989
Kansas 467 -174 4227 -918
Kentucky 420 -176 3688 -952
Louisiana 120 -82 1294 -499
Maine 1011 -60 7197 -855
Maryland 473 -196 3935 -940
Massachusetts 729 -162 5350 -1091
Michigan 784 -167 5759 -1226
Minnesota 875 -246 7268 -1531Mississippi 195 -111 1895 -681
Missouri 480 -181 4288 -957
Montana 818 -155 6994 -1351
Nebraska 625 -202 5578 -978
Nevada 329 -130 3301 -519
New Hampshire 871 -147 6418 -1208
New Jersey 581 -182 4452 -1022
New Mexico 481 -119 4276 -582
New York 658 -209 4837 -1312
North Carolina 305 -157 2889 -655
North Dakota 891 -305 7799 -1694
Ohio 580 -220 4823 -1180
Oklahoma 331 -132 3063 -706
Oregon 624 19 4835 -336
Pennsylvania 603 -206 4927 -1013
Rhode Island 682 -158 5017 -903
South Carolina 223 -131 2224 -586
South Dakota 768 -224 6604 -1282
Tennessee 379 -126 3345 -676
Texas 138 -83 1492 -515
Utah 665 -129 5918 -725Vermont 945 -152 7125 -1027
Virginia 409 -199 3621 -882
Washington 590 -50 4941 -595
West Virginia 504 -194 4379 -944
Wisconsin 825 -195 6655 -1175
Wyomina 896 -98 7349 -991
United States 450 -143 3726 -822
MARCH
HEATING DEG REEDAYS BY STATE
Data courtesy of the Climate Prediction Center/National Weather Service
PERCENTRETURN
NOT
MEANINGFUL
LOWER THANAVERAGE
HEATING
DEGREE DAYS
HIGHER THANAVERAGE
HEATING
DEGREE DAYS
N E W S B R I E F S
New industry venturehelps business ownersJoe Stariha, former
co-president and chief
financial officer of ComoOil & Propane, launched
Propane Strategies LLC, a
new business venture to
help the propane industry.
“I founded Propane
Strategies this past fall
to help business own-
ers in the propane
industry improve their
operational and financial
performance,” Stariha
says in a press release on
Business North, a business
publication for northern
Minnesota and Wisconsin.
“I am able to put my
expertise to work and
help business owners see
the results in their bottom
line very quickly.”
Propane Strategies’
services include strategic
planning, budgeting,BRITE software training,
software system selec-
tions, propane supply
strategies, project man-
agement and business
valuations.
Stariha began his
career with Como Oil and
Propane as an account-
ing manager in 1996, and
the company promoted
him to serve as its co-president and CFO in
2010. During his time with
Como, Stariha helped
with 17 acquisitions.
Navien donates tanklesswater heatersNavien partnered with
Habitat for Humanity of
Orange County by donat-
ing six tankless waterContinued on page 12
BY LEO MICHAEL
www.LPGasmagazine.com May 2016 LPGas | 11
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8/17/2019 LP Gas - May 2016.pdf
14/76TankLink is now SkyBitz Tank Monitoring
other hydrocarbon gas liquids in2016 and 2017, as expanded pet-rochemical and export capacitywill provide new outlets for supply
and for more ethane to be recov-ered from raw natural gas. EIAforecasts that natural gas plantethane production will increaseby 300,000 bpd between 2015 and2017, accounting for two-thirds
of total hydrocarbon gas liquidsproduction.
EIA reports the U.S. became anet exporter of natural gasolinein 2008, of butane and propane in2011 and of ethane in 2014. An-nual average net propane exports
increased from 10,000 bpd in 2011to an estimated 500,000 bpd in2015, as the capacity to export LPgases increased by almost 1 mil-lion bpd.
In its Short-Term Energy Out-look, EIA expects net propane ex-ports to increase to 640,000 bpd in2016 and to 740,000 bpd in 2017, asexports ramp up at two Gulf Coastterminal projects that began op-erating in the second half of 2015
and at another project scheduledto come online in the second halfof 2016. LPG
heaters for the nonprofit’s currenthomebuilding projects in Cypress, Calif.
Navien donated six NPE-210S units toHabitat for Humanity of Orange County
townhomes. The company adds 19 ofits employees volunteered with thenonprofit to help with the cleanup ofsome of the Cypress properties and toprovide lunch for all volunteers.
According to Navien, the townhomeswill soon house veterans and seniorcitizens.
PERC approves funding requestsat Nashville meeting
The Propane Education & ResearchCouncil (PERC) approved the follow-ing funding requests during its Aprilmeeting in Nashville, Tenn. The princi-pal contractor is noted in parenthesis,where applicable.
■ $237,900 for 2016 professional andsupport services, which will providethe council with technical knowledgeand expertise and implementationsupport of new products and marketopportunities. PERC says it has elected
to use outside consultants for theproject instead of additional staff.
■ $50,000 for the CarbonManagement Information CenterConsortium, which is intended toserve the propane industry and itscustomers by providing informationon the beneficial role propane playscompared to electric and oil options(Gas Technology Institute).
■ $34,446 for the development ofCertified Employee Training Program
refresher courses (Dashe & Thomson).PERC is scheduled to meet next on
July 12-13 in Napa, Calif.
Fischer Tanks plans to launch tankmanufacturing businessFischer Tanks announced plans tolaunch a propane tank manufacturingbusiness, called Fischer Fabrication, in
August. The company, which has supplied
refurbished tanks to the industry, dis-played a model of its new tank designat April’s Southeastern Convention &International Propane Expo.
“We wanted to gauge interest levelsfrom retailers in our new product offer-ing we’re launching,” says Doug Fischer,the company’s general manager. “Wesaw a need to start tank manufactur-ing, as it’s increasingly hard to get agood 500- or 1,000-gallon tank to refur-bish to meet demand.”
Fischer says the company will firstrelease a 500-gallon aboveground tankmodel in August and will later release a1,000-gallon aboveground tank model.
The company will also continue with itsrefurbished tank line, he adds.
Pembina to conduct feasibility studyon proposed PDH facility
Pembina Pipeline Corp. and thePetrochemical Industries Co. K.S.C., asubsidiary of Kuwait Petroleum Corp.,plan to put together a feasibility studyfor the evaluation of a world-scalecombined propane dehydrogenationand polypropylene upgrading facilityin Alberta, Canada.
According to Pembina, the project isan opportunity to develop new mar-ket demand for propane in Alberta.Over the past decade, about 85
percent of Alberta’s propane produc-tion has been exported across North
Continued from page 10
Continued on page 14
Continued from page 11N E W S B R I E F S
Net propane exports
are expected to
increase to 740,000barrels per day in 2017.
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Reduce Propane Distribution Cost
with Tank Monitoring
The combination of wireless tank monitors and tankinventory data from SkyBitz Tank Monitoring allows formore effi cient tank fills, fewer truck rolls with the mosteffi cient routing, and better overall customer service.
“SkyBitz Tank Monitoring provides us the timelyand accurate tank data needed to bring
technology to bear when it comes to
controlling distribution costs, from the offi ce
all the way to the driver. Our people always
know exactly where they need to go, when,
and with how much propane. SkyBitz gives
us the ability to do all that with no upfront
equipment expense. They are a key partner
in helping us service our customers and
lower our distribution costs.”
Chuck KinniePresident
Request a consultation and free quote.SkyBitz.com/TankMonitoring888-826-5546
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America. The company adds devel-
oping Alberta-based, value-added
infrastructure will increase the area’s
propane demand, benefiting Alberta’s
oil and gas producers, as well as theprovince by increasing regional eco-
nomic activity.
If the project moves forward
beyond the study, Pembina says the
facility could consume about 35,000
barrels per day (bpd) of propane and
produce up to 800,000 metric tons
per year of polypropylene. The poly-
propylene would be transported in a
pellet form to markets across North
America and internationally.
With access to the largest supply
of propane in the Western Canadian
Sedimentary Basin, Pembina says it
is capable of facilitating this project’s
development. Once the construction
of Pembina’s remaining third fraction-
ator is complete, the company says it
will have more than 200,000 bpd of
fractionation capacity and will control
about 60,000 bpd of propane sup-
ply in the Fort Saskatchewan area of
Canada.
Hydrocarbon logistics systemto receive LP gas, refined productsRangeland Energy initiated the devel-
opment of the South Texas Energy
Products System (STEPS), an integrat-
ed hydrocarbon logistics system.
According to the company, the
system will receive and store refined
products, LP gas and other hydrocar-
bons at a new terminal hub in Corpus
Christi, Texas, and transport them to
terminals primarily located in Mexico.
Refined products and LP gas will
move out of the terminal primarily by
rail, but the terminal will eventually
connect to pipelines and vessels.
Marine facilities will be added to the
system in Corpus Christi during future
phases, along with infrastructure to
accommodate additional commodi-
ties, Rangeland Energy says.
The terminal is expected to go
online during the first quarter of 2017.
Initial rail shipments will begin, withthe facility accommodating unit trains
later in 2017.
Williams’ second offgas processingplant opens in CanadaWilliams Cos. Inc.’s new offgas liq-
uids extraction plant north of Fort
McMurray, Alberta, Canada, is now
operating, the company announced.
The company’s second offgas liquids
extraction plant recovers ethane, pro-
pane, propylene and other liquids from
an upgrader’s offgas streams. Williams
then transports, fractionates and mar-
kets the products.
Following the extraction at the
upgrader, the natural gas liquids and
14 | LPGas May 2016 www.LPGasmagazine.com
Continued from page 12N E W S B R I E F S
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Manufactured and Distributed in the USA
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A sampling of notable tweets and posts from LP Gas’
social media pages.
twitter.com/lpgas_mag
facebook.com/lpgasmagazine
■ @mfaoil acquires Brownfield Oil Co. in Moberly, Mo.,
the company’s fifth acquisition of its fiscal year.
■ @Nashville_ABC’s Charles Esten shares stories about
his career at @NPGAPropane’s Southeastern show.
#NPGA16
■ Mike Taylor of the @PropaneCouncil says: “Some
people think #autogas is only for the big guys. That’s
not true.” #NPGA16
■ WLPGA’s Cecile Nourigat: South Korea No. 1 propane
autogas market globally with 2.4 million cars on LPG.
Russia 2nd, Turkey 3rd.
■ Mike Sloan of @ICFI says #propane’s use in internal
combustion engines offers significant growth
opportunities for the industry. #NPGA16
■ The World LPG Association has set up an LPG/
propane applications database online at http://www.
lpg-apps.org. #NPGA16
THE SOCIAL SCENE
Continued on page 16
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FOCUSED
ON PROPANE.MORE THAN EVER.
Thinking about selling your business?Give Ferrellgas a call today to arrange a
confidential discussion about your options.
Ferrellgas has made headlines recently by completing several non-propane
acquisitions. It’s part of a larger strategy we have in place to diversify our
business. But we’ve been a propane company for nearly 80 years now, and
we’re more focused than ever on growing our core business. That’s why, if
you’re thinking about selling your business, we want you to give us a call.
We’ve purchased more than 235 family-owned propane businesses through
the years. People turn to us because we’re fair, honest, and more than happy
to work at the seller’s speed. Put another way, we treat people how we’d
want to be treated if roles were reversed.
ERIC KRUGERVP of Propane Acquisitions
J.D. BAINBusiness Development Executive-East
NANCY COOPBusiness Development Executive-West
-
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RegO The manufacturer of valves, regula-
tors and fittings began the year under
new leadership. Lou Rosen joined
the team as president and CEO in the
second half of 2015. In the past, Rosen
16 | LPGas May 2016 www.LPGasmagazine.com
Continued on page 18
olefins mixture is transported by
Williams’ recently extended Boreal
Pipeline to its expanded Redwater
Olefinic Fractionator. Most of the
propane is expected to feed Williams’planned propane dehydrogenation
facility near Edmonton for the produc-
tion of polymer-grade propylene.
TankLink restructures, rebrandsas SkyBitz Tank Monitoring
TankLink changed its name to SkyBitz
Tank Monitoring as part of a corporate
restructuring. The company promoted its new
name at the Propane Expo last month
in Nashville, Tenn.
Carl Whitmire, channel market-
ing manager at Telular Corp., says
TankLink’s parent company, Telular,
chose to consolidate a few of its busi-
ness units in January to fall under the
SkyBitz brand.“SkyBitz is a brand that started in
vehicle tracking using satellite tech-
nology,” Whitmire says. “After Telular
bought SkyBitz, the company also
purchased our brand, TankLink. Within
a few years, the owner thought it was
time to consolidate the businesses.”
Whitmire says the consolidation will
allow SkyBitz to provide more tank
monitoring engineering to support
propane retailers.
“The name change gives us more of
a broad footprint,” adds David Mack, a
sales engineer with SkyBitz. “With the
new name and consolidation, we have
a little more buying power.”
Continued from page 14N E W S B R I E F S
P E O P L E
Michigan Propane GasAssociation
Dick Lowe, who served the associa-tion as president in 1963 and 1964,
died at the age of 90. Lowe founded
Lowe’s Gas in 1948 in Dimondale,
Mich., behind the support of 23
customers. Lowe’s business grew
over the years, lasting four gen-
erations. He sold the business to a
family member in 1965, and it was
renamed Lowe Bros. & Dad Inc.
Lowe switched industries in the
latter half of his career to operate a
construction company in Florida. He
retired from a senior management
position with a construction com-
pany in Naples, Fla.
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worked in a variety
of leadership posi-
tions in energy and
manufacturing
companies, bothdomestically and
abroad. At Eaton
Corp., Rosen served
as senior vice presi-
dent and general
manager, working with facilities around
the world. Rosen has also held leader-
ship roles with Halliburton and General
Electric’s Industrial
Systems business.
BASEEngineeringMark Straka
was appointed
as the new vice
president for BASE
Engineering USA
Corp. He will be
responsible for the
company’s U.S. sales
and operations,
and assist with its
global expansion.In addition, the
company hired
Damon Boyer as
senior sales execu-
tive of truck mobility solutions. He will
help to promote the ProControl 3 truck
automation platform to oil and gas
businesses.
White Mountain Oil & PropaneCurtis Reynolds was appointed as ser-
vice department manager. He will over-
see the entire service crew and delivery
of mechanical service and installations
to all customers. Reynolds has worked
for the company for 16 years, providing
support to customers through both the
sales and service departments.
Iowa Mold Tooling Co.Tom Wallace was
promoted to sales
manager. He will
direct the IMT sales
team to furtherstrengthen the
company’s distribu-
tor network and
grow tire service
sales.
Leran Gas ProductsTom Cheatham was appointed as
an outside sales
representative
for the Southeast.
Cheatham will
cover Alabama,
Florida, Georgia,
Mississippi and
Tennessee for the
wholesale distribu-
tor company.
Continued from page 16 PEOPLE
Boyer
CheathamStraka
WallaceRosen
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Give your sales team the knowledge and motivation they need to grow your business throughMarketer Technology and Sales Training from the Propane Education & Research Council.
There are one-day sessions for every market — residential, commercial, propane autogas,
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Someone once asked Dolly Parton
how long it takes her to do her hair.
She responded, “I don’t know. I’m
never there.” She may not look it, but
the popular singer and actress recent-
ly turned 70. Her wig (or “pretend”
hair) makes her look much younger.
Like Dolly Parton’s pretend hair,
businesspeople also pretend fromtime to time. When a local university
sponsored a seminar, several promi-
nent businesspeople were invited to
explain how they became successful.
Each presenter was impressive, but
some audience members began to
grow uneasy. The levels of success the
presenters described they had experi-
enced seemed to be well beyond the
reach of the average person.
The last executive to speak was
well known for owning and operating
many successful businesses. He began
by saying, “I’m going to share with you
the 12 biggest mistakes I have madeover my career.” The entire audience
turned its attention to him. One by
one, he listed mistakes in judgment,
timing and occasionally getting in
over his head in businesses that he
didn’t understand. No pretending.
The embellished presentations of
success from the first speakers were
disheartening. But making mistakes is
within anyone’s grasp. We can all do
that!
Stop pretending and tell it like it is.
Once pretense is dropped, others will
be able to depend on you and benefit
from your knowledge and experience.Oh, and happy birthday, Dolly
Parton. I love the hair. LPG
Ken Albrecht is president of Reliable
Propane in Clarence Center, N.Y.
Visit www.reliablepropane.com.
Blue Flame Blog
Employees relate to business leaders who drop pretenses
PROPANERELATED REFLECTIONS FROM WWW.LPGASMAGAZINE.COM | KEN ALBRECHT
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ProGas Inc., based in Zelienople, Pa.,partnered with Sarver LandscapeMaintenance Co. of Wexford, Pa., tohelp the lawn and landscaping compa-ny replace six of its gasoline-poweredmowers with propane models.
According to Shale Media Group,Sarver Landscape Maintenancereached out to ProGas during the Tri-State Alternative Fueling Expo, whereProGas featured an exhibit on usingpropane mowers and small engines.
Sarver Landscape Maintenancepurchased six John Deere propane-powered mowers from West CentralEquipment in Butler, Pa., after theshow. Shale Media Group reports thepropane mowers now make up one-
third of Sarver Landscape Mainte-nance’s fleet.
ProGas installed a 1,000-gallon fill-ing station at Sarver Landscape Main-tenance’s location, which provides alu-minum cylinders to fit on the mowingequipment.
ProGas also helped the landscapingcompany apply for the Propane Edu-cation & Research Council’s PropaneMower Incentive Program, giving the
company $1,000 toward the purchaseof each new propane mower.
CleanFuel USA announced it filed voluntary petition under Chap-ter 11 of the U.S. BankruptcyCode in the Bankruptcy Court
for the Western District of Texas, seek-ing the restructuring of its debts.
As a result of the Chapter 11 fil-ing, CleanFuel USA says it expects toreceive debtor-in-possession financingto allow for its reorganization. Both the
debtor-in-possession financing and thecompany’s cash from operations are ex-pected to provide sufficient liquidity toallow continued operations during theChapter 11 process.
“We are taking this action so we cancontinue to strengthen and adapt ourbusiness to meet the changing dynam-ics in the alternative fuel industry,”says Curtis Donaldson, founder and
president of CleanFuel USA, in a pressrelease. “We intend to use the Chapter11 process to reorganize our financialand operational structure, and positionthe company for the future.”
During its restructuring, the com-pany says it plans to continue to operateas usual by taking on customer orders,paying vendors and offering the sameservices it’s been known for since 1993.
20 | LPGas May 2016 www.LPGasmagazine.com
CleanFuel USA restructuring operations under Chapter 11
FOCUS ON
SPONSORED BY
Dispensing station auction winnerStuart Weidie, president and CEO of Blossman Gas, third from left, won a verti-cal propane autogas dispensing station during a Southeastern Convention& International Propane Expo auction benefiting the National Propane GasAssociation’s (NPGA) scholarship fund. Weidie bid $40,000 for the unit, withproceeds going to children of NPGA member company employees. Industrial
Propane Service Inc. (IPS) and Quality Steel Corp. partnered on the project tohelp raise scholarship funds and awareness of autogas. Pictured here, fromleft, are Jeff Vandemark of IPS, Lynn Hardin of Quality Steel, Weidie, DavidReynolds of Blossman Gas, Kim Godlewski of IPS, Virgil Mullins of Quality Steeland Rob Vandemark of IPS.
Learn more and start building your S2G today atFCCCcommercial.com/S2G, or by calling FreightlinerCustom Chassis at (800)FTL-HELP. For ordering
details, contact your local dealer.
S2G: A REAL WORK TRUCK.S2G: A REAL WORK TRUCK.
Retailer, landscaperpartner on project
-
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Roush CleanTech created a propane auto-gas fuel system for the Ford F-750 chassis.The company says it developed the model
in response to demand for an autogas-fu-eled medium-duty chassis for bobtail appli-cations, cylinder delivery trucks and largertank setters and box trucks. The FordF-750 base model comes with a 50-usable-gallon fuel tank. Roush CleanTech adds anextended tank option is available. VictoryPropane, a propane retailer in Michigan,says it plans to integrate the Ford F-750truck with Roush CleanTech’s autogasfuel system into its f leet. The first produc-tion propane-powered Ford F-750 with a3,200-gallon barrel was on display duringthe National Propane Gas Association’sSoutheastern Convention & InternationalPropane Expo in Nashville, Tenn.
NEWS BRIEFS
■ CleanFuel USA director
announces retirement: Mike
Merwarth, CleanFuel USA’s direc-
tor of dispenser infrastructure,retired from the company earlier
this year. According to CleanFuel
USA, Merwarth began his career in
the alternative fuel industry about
50 years ago, working in the pro-
pane and natural gas segments.
Merwarth served as a key member
of the CleanFuel USA team that
helped to develop the propane
autogas market. He worked as a
technical consultant and interdisci-
plinary liaison for propane autogasinfrastructure projects in the United
States, Africa, India, the Caribbean
and Central America. During his
retirement, Merwarth wants to get
more involved in his ministry at
CrossBridge Community Church in
San Antonio, and he hopes to work
as a voluntary construction lead
with Strategic Alliance, building tiny
houses to help people in Reynosa,
Mexico.
■ School districts power bus fleets
with autogas: The Grace School
District in Grace, Idaho; the Washoe
County School District in Reno, Nev.;and the Derry Township School
District in Hershey, Pa., have adopted
propane autogas into their bus fleets.
The Grace School District integrated
its first school bus fueled by propane
autogas – a new Blue Bird with a Ford
6.8-liter V10 engine. The Washoe
County School District has 47 school
buses that run on propane autogas:
12 Type A Propane Micro Bird buses
and 35 Type C Blue Bird Propane
Vision buses. Pennsylvania’s Derry
Township School District added three
Blue Bird Propane Vision buses to its
fleet for the 2015-16 school year, and
it plans to continue rolling out pro-
pane autogas buses in the comingyears. Roush CleanTech supplied the
propane autogas fueling system in
each of the vehicles.
■ Alabama Department of
Corrections converts vans: The
Alabama Department of Corrections
partnered with Icom North America
to convert 72 of its prison work-
release vans to run on bi-fuel using
Icom’s liquid injection propane sys-
tems. Andy Farquhar, director of theAlabama Department of Corrections,
says the department used Icom’s JTG
II conversion kits on its Ford E-350
prison work-release vans. Icom adds
that Precision Sales & Service, a com-
pany that performs alternative fuel
conversions, helped to install the
conversion kits. Buddy Gamel, owner
of Precision Sales & Service, says the
Icom systems fit the department’s
needs.
www.LPGasmagazine.com May 2016 LPGas | 21
School districts across the country
continue to add propane-fueled buses.
Roush CleanTech develops propane autogas system for Ford F-750
The propane-fueled Ford F-750 chassis built as a bobtail was on display in the
Roush CleanTech booth at the Propane Expo in Nashville, Tenn.
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Change is something that causes many people toexperience the negative feelings of fear, dread andanxiety. Other people see change as an opportu-
nity to seek new adventures.This year, the National Propane Gas Association (NPGA)
challenged everyone in the propane in-dustry with change by moving its South-eastern Convention & InternationalPropane Expo from the longstandingAtlanta venue to Nashville, Tenn.
From the many and varied conversa-tions with both attendees and exhibitors,the response to the move was over-whelmingly positive.
According to NPGA, more than 4,100people attended this year’s show – record numbers that wereup about 1,000 from last year – with 270 exhibitors set up onthe trade show f loor.
Nashville is experiencing a growth boom, with more than80 people per day moving to the city. There were more than20 cranes across the skyline working to accommodate therapid growth. The energy of the Propane Expo was a reflec-tion of the city’s energy. Everyone was optimistic and excited,
even with Mother Nature throwing many retail propanemarketers a curveball this winter.
Nashville as a host city for the Propane Expo was well
received with mostly positive comments. Warm hospitality,friendly service and a clean, safe environment were but a fewof the many compliments given to the city.
The Music City Center venue also received very similarcompliments from both the attendees and vendors. Everyone
was enthusiastic about the many opportunities within walk-ing distance to spend time networking and relaxing.
Among all of the compliments given to the host city, therewere only two negative comments that could be tied some-what to the city’s growing pains: the lack of good places fordinner without a two-hour wait and the higher cost of hotels.Yet, in the same breath, it was said that it was nice having achoice of hotels in close proximity to the events.
The energy and excitement was overwhelmingly posi-tive on the show floor. The conversations seemed to havea common theme of growth and opportunity. While thetheme was the same, the individual focus was specific toeach person’s goals.
As with any change, the move to Nashville forced attend-ees to change their routines. I once had a business develop-ment person say he never takes the same route twice becauseif he did he would miss opportunities. The same is true forthis year’s change in venue. With the focus on growth andan increase in retailer and vendor attendance levels, thereseemed to be an increase in industry business, partnershipsand fellowship. LPG
Tamera Kovacs is a financial consultant and industry expert
in business valuations and sales with Propane Resources. Shecan be reached at [email protected] or call herat 913-262-0196.
Tamera Kovacs
I N T H E K N O W : P R O P A N E E X P O
What were your first impressions of Nashvilleas a new Propane Expo host city and what didyou learn about attendees on the show floor?
Q:
A:
22 | LPGas May 2016 www.LPGasmagazine.com
Mark your calendars: Nashville will play host to the Propane Expo again next year before the event returns to Atlanta for two years.
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We Know the Road to Closing.
Up and down years. Challenges and opportunities. You’ve seen
your share and you’ve enjoyed success. But you are now ready
to move on from the business you’ve labored to build.
We can help you value and sell your business with a competitive
and confidential sale process. We will steer you through its many
twists and turns.
And do so with knowledge, experience, and integrity.
Contact us for a confidential discussion.
Steve Abbate
Managing Director/Principal
Doug Woosnam
Managing Director
Joshua Wolf
Managing Director
713.494.4699 [email protected]
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EVENTS
■ MAY 22-25 NPGA Presidential
Summit, Board Meeting and Propane
Days in Washington, D.C. For more
information about the event, contact
Katie Hathaway at [email protected] 202-355-1335.
■ MAY 23-26 2016 North Central
Convention & Trade Show for Iowa,
Minnesota and Wisconsin propane
association members in La Crosse,
Wis. For more information, contact
Deb Grooms at dgrooms@
iapropane.org or 515-564-1260.
■ JUNE 7-9 66th Annual North Dakota
Propane Gas Association Meeting at
the Rough Riders Hotel in Medora, N.D.
For more information, visit
www.ndpropane.org.
■ JUNE 13-16 Tennessee Propane
Gas Association Annual Convention
at the Perdido Beach Resort in
Orange Beach, Ala. For more infor-
mation, contact Ginger Raffield at
■ JUNE 19-21 Alabama/LouisianaJoint Convention at the Perdido
Beach Resort in Orange Beach, Ala.
For more information, contact Lisa
Hill at [email protected] or
334-358-9590.
■ JUNE 20-21 West Virginia Propane
Gas Association Meeting and Bobtail
Rodeo at The Inn at Charles Town
in Charles Town, W.Va. For more
information about the event, contact
Tom Osina at [email protected] or
888-441-5454.
■ JUNE 22-24Colorado-New Mexico
Convention at The Antlers hotel in
Colorado Springs, Colo. For more infor-
mation, contact Darlene Hawk-Meigs at
[email protected] 941-347-7596.
■ JUNE 22-24Pennsylvania Propane
Gas Association Annual Meeting at
Kalahari Resorts & Conventions in Po-
cono Manor, Pa. For more information,contact Shelby Metzger-Bell at shelby@
papropane.comor 717-441-6040.
■ JUNE 22-24Joint Propane Gas As-
sociation of New England/New York
Propane Gas Association Summer
Meeting at The Sagamore Hotel in
Bolton’s Landing, N.Y. For details, con-
tact Caryn Gwizdala at caryng@pgane.
orgor 888-445-1075.
■ JUNE 27-30 Mid-States Propane
Expo and Trade Show at the Branson
Hilton Convention Center in Branson,
Mo. For details, contact Estelle Zewe at
■ JULY 12-13 PERC Council Meeting in
Napa Valley, Calif. For details, contact
Anna Lombardo atanna.lombardo@
propane.comor 202-452-8975.
■ JULY 17-19 Virginia Propane GasAssociation Summer Meeting at the
Hilton Virginia Beach Oceanfront Hotel
in Virginia Beach, Va. For more informa-
tion about the event, contact Darlene
Hawk-Meigs [email protected]
941-347-7596.
■ JULY 27-29 Pacific Propane Gas
Association Summer Meeting at the
Semiahmoo Resort in Blaine, Wash. For
more information about the event, visit
www.pacificpropane.org.
■ JULY 29-AUG. 1 Crossroads Propane
Expo & Conference at the Fort Worth
Convention Center in Fort Worth, Texas.
For more information about the event,
visitwww.crossroadspropexpo.com.
■ AUG. 10-11 Northeast Propane Show
at the Holiday Inn in Boxborough, Mass.
For more information about the event,
contact Caryn Gwizdala at caryng@ pgane.orgor 888-445-1075.
24 | LPGas May 2016 www.LPGasmagazine.com
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Advertising strategies have been ahot discussion item in the propaneindustry lately, as the U.S. CommerceDepartment lifted a restriction onadvertising efforts in the propaneindustry last year and the PropaneEducation & Research Council devel-oped a $10 million consumer educa-
tion campaign, dubbed Blue.LP Gas magazine looked back at the
advertising strategies the industryused during the magazine’s inauguralyear. In 1941, propane retailers weren’tshy about advertising, as that pro-pelled propane sales. Some commonmethods propane retailers used toadvertise propane and gas appliancesincluded direct mail, newspapers, bill-
boards, postcards, flyers and posters.LP Gas magazine ran a feature on
best advertising strategies in May1941. Based on that feature, small-town newspapers served as one of thebest ways to advertise, as it was cost-effective and seen by many people.
Radio advertisements also worked asan advertising strategy, as long as aretailer was willing to run a commercialconsistently on local stations.
26 | LPGas May 2016 www.LPGasmagazine.com
7 5 T H A N N I V E R S A R Y
S T R A T E G I E S
Retailers sometimes used nontraditional advertising methods to reach out tonew customers. Some retailers gained new customers by promoting propaneand related appliances at booths during local and state fairs. Occasionally, pro-pane retailers who sold gas appliances also hosted cooking schools to promotepropane appliances in the community. One retailer in Wisconsin benefitedfrom this method by hosting a cooking school event. The retailer also thoughtoutside the box, creating advertisements to post on trailers. The company
drove the trailers around its community to serve as a moving billboard.
O U T O F TH E B O X A D V E R T I S I N G
“[Advertising] becomes increasingly important as our business grows, andthose of us who have been in this business for many years are perhaps moreaware of its importance than a newcomer might be. [Advertising] is a ‘must’
in this business.”– F.W. Frost, sales promotion department at Pyrofax, a propane retailer in 1941
Retailers host cooking schools, post ads on trailers
Small-town newspapers, radio popular outlets in 1941
Advertising
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©2015 Star Gas Partners, L.P.
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S O U T H E A S T E R N C O N V E N T I O N
28 | LPGas May 2016 www.LPGasmagazine.com
The LP Gas staff fell in love with
Nashville, Tenn., last month.
So did the rest of the pro-
pane industry that attended
the Southeastern Convention &
International Propane Expo.
The state-of-the-art Music City
Center blew us away. The food
around town still has us talking. Andthe Broadway experience – just a
couple of blocks from the Propane
Expo – kept the industry connected
and entertained with live music long
after the show ended each day.
Over and over at the show, we
heard from vendors, marketers and
allied trade representatives how
much they were enjoying Nashville.
The same people remarked how the
Music City offers so much more than
Atlanta, which has been a long-timehome of the southeastern-based
show.
Atlanta has been a good home
for the Southeastern Convention.
The show would not have been held
there for more than 60 total years –
first as a regional event and later as
the national association’s flagship
event – if it weren’t a welcoming
location for the industry.
But Nashville made a strong argu-ment in its first attempt to become
the new Propane Expo home. We,
like many within the industry who
attended the 2016 show, can’t wait
to return to the Music City in 2017.
The level of enthusiasm for 2018
isn’t quite the same, though, as the
Southeastern Convention returns to
Atlanta that year.
The show will be held in Atlanta
in 2019, as well, before rotating
between Nashville and Atlanta in
2020 and 2021, respectively.
Everyone I spoke with in Nashville
about the show shares the same
enthusiasm about the return to the
Music City in 2017. As one Propane
Expo vendor explicitly told me: The
hard part will be leaving Nashville
and returning to Atlanta.
Maybe we’ll long for Atlanta again
once we’ve experienced two full
years of Nashville, but I don’t see thathappening. I anticipate the National
Propane Gas Association will be
flooded with requests for the show
to stay in Nashville.
Atlanta, of course, has its advo-
cates who will continue to lobby for
the Propane Expo being held in the
Peach State. But Nashville, based on
merits alone, wins out over Atlanta.
Arguably the biggest advantage
Nashville offers is its compact foot-
print. A number of hotels are within
walking distance of the Music City
Center, surrounding restaurants and
Nashville’s country music scene.
The same can’t be said of Atlanta’s
Georgia World Congress Center,
which is less centralized and does
not offer nearly the range of walk-
able hotel, restaurant and entertain-
ment options.
Atlanta has a lot going for it, but
its hotels, restaurants and enter-tainment are scattered. Downtown
Atlanta shuts down relatively early,
while Nashville’s Broadway is buzz-
ing with options late into the night.
I’m eager to see how year two in
Nashville compares to this first show
in the Music City. Maybe some of
that country music charm wears off
the second time around. Maybe we’ll
long for change after a couple years
in the same spot.LPG
Continued from page 28
Blue Flame Blog
Nashville lives up to pre-Propane Expo hype
PROPANERELATED REFLECTIONS FROM WW W.LPGASMAGAZINE.COM | KEVIN YANIK
I S T O C K . C
O M / J A C O B H
A view of the trade show floor from above at Nashville’s Music City Center.
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www.LPGasmagazine.com May 2016 LPGas | 29
S O U T H E A S T E R N C O N V E N T I O N
NPGA: Propane Expoattendance up morethan 30 percent
Total attendance at the
Southeastern Convention &
International Propane Expo was up
this year, the National Propane Gas
Association (NPGA) reports.
According to NPGA, more than
4,100 people attended this year’s
show, which shifted to Nashville,
Tenn., from Atlanta. The attendance
was a record, the association says.
Last year, NPGA reported more
than 3,000 total attendees gatheredfor the Propane Expo in Atlanta.
The year before, the association
reported more than 2,900 people
attended the show.
In addition, NPGA reports 270
exhibitors set up at the Music City
Center in Nashville this year com-
pared with 230 in 2015.
The Propane Expo returns to
Nashville in 2017 before shifting
back to Atlanta in 2018 and 2019.
The show will rotate betweenNashville and Atlanta in 2020 and
2021, respectively.
Did you miss LP Gas‘ live coverage
of the 2016 Propane Expo? Check
out our coverage, including videos,
at lpgasmagazine.com.
Above, this Motovox mini bike converted by
Precision Sales & Service to run on propane
was one of the eye-catching products on the
trade show floor at the Music City Center. At
right, Propane Expo attendees get a closelook at a JARCO bobtail.
Above, attendees have an interest in Tradewinds Power Corp.’s twin-engine setup
of an EDI 10-cylinder, 6.8-liter engine. The unit is common in agriculture irrigation
and industrial applications. Below, an educational session takes place.
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The LP Gas Hall of Fame enshrinedits fifth class of inductees in Nash- ville, Tenn., where Bill Byrne (War-ren Petroleum Co.), Robert Y. LoveSr. (Lampton-Love Inc.), Daryl Mc-
Clendon (DFM Enterprises) and ThomasNunan Jr. (Suburban Propane) were induct-ed before more than 125 of their peers.
Byrne and McClendon attended theceremony at the Omni Nashville Hotel, re-flecting on their storied careers upon beinginducted and honored. Family membersrepresented Love and Nunan, who wereboth inducted posthumously.
“Considering the case for each hall offame nominee, you get a sense of the work
these individuals have done for the propaneindustry, the effort they’ve made and their leadership quali-ties,” says Brian Richesson, editor in chief of LP Gas maga-zine, about the annual process.
Bill ByrneByrne, who resides in Tulsa, Okla., is celebrated for the lead-ership role he took on pertaining to supply and pricing issues.His connections with governmental agencies were crucial tothe strength and growth of the propane industry.
Byrne, the former vice president of marketing for propanesupplier Warren Petroleum, also played a part in seeing that an
industry checkoff program was revived and reorganized in a
way that would help marketers with their promotional efforts.As board president of the National LP-Gas Association in
1986-87, Byrne promoted cooperative relations between mar-keters and refiners.
Propane companies also relied on his knowledge and ex-pertise. Heritage Propane tabbed Byrne for its board of direc-tors, using his leadership background with the national asso-ciation and his knowledge of supply and logistics processesto help the new retailer gain traction in a crowded group ofcompetitors. He also sat on the boards of the Energy Transfercompanies.
Byrne became principal of Byrne & Associates LLC in 1992
L P G A S HALL OF FAME
A black-tie affairFour new membersinducted, featured as
part of fifth class during
celebration in Nashville
The 2016 class and its representatives, from left: Rob Love (son of Robert Y. Love
Sr.), Bill Byrne, Katie Nunan (daughter of Thomas Nunan Jr.) and Daryl McClendon.
With special thanks to our LP Gas Hall of Fame sponsors:
Founding Sponsor
30 | LPGas May 2016 www.LPGasmagazine.com
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after retiring from Warren Petroleum and completing a 40-year career.
“This industry is a group of people that I will cherish allmy life,” Byrne says. “All of the inductees are true gentlemenin every sense of the word.”
Robert Y. Love Sr.Love was highly respected amonghis peers during his many years inthe industry. He was the co-founderof Lampton-Love, a propane retailerservicing southeastern states. Thosewho knew Love say his cautious na-
ture and determination made the in-dustry better.
The Mississippi native devotedmuch of his energy to state and na-tional propane industry associations, ascending to boardpresident at both levels and earning accolades along the way.Love served in every capacity with the Mississippi PropaneGas Association and received special recognition for 25 yearsof dedicated service to the association.
L P G A S HALL OF FAME
LP Gas Hall of Fame members
The additions of Bill Byrne, Robert Y. Love Sr., Daryl
McClendon and Thomas Nunan Jr. take the total number
of LP Gas Hall of Fame inductees to 28. The hall of fame
launched in 2012, propane’s centennial year, as a way to
honor the legends, icons and leaders who have helped
establish, advance and grow the propane industry. The
hall is open to any living or nonliving propane industry
employee, working at any level of his or her company, or
having retired. Here’s a list of current hall members:
■ Mark Anton, Suburban Propane
■ James E. Bertelsmeyer, Heritage Propane
■ Eugene V.N. Bissell, AmeriGas
■ John Blossman, Blossman Gas
■ Bill Byrne, Warren Petroleum Co.
■ Ronald “Zane” Chastain, LP Gas magazine
■ James Ferrell, Ferrellgas
■ William C. Hill, Pargas
■ Herbert V. Hills, Imperial Machine Products Co.
■ Casey Jarvis, JARCO
■ Walter H. Johnson, Liquefied Petroleum Gas
Association
■ Stewart Kean, Utility Propane Co./World LPGAssociation
■ Robert Y. Love Sr., Lampton-Love Inc.
■ Daryl McClendon, DFM Enterprises
■ William B. McHenry, Pro-Gas Sales & Service
■ Sam McTier, McTier Supply Co.
■ Glenn Miller, Miller’s Bottled Gas
■ Daniel N. Myers, National Propane Gas Association
■ Robert Myers, Petrolane
■ Robert B. Nicholson, Eastern Propane Corp.■ Thomas Nunan Jr., Suburban Propane
■ Charles Revere, Revere Gas
■ J. Charles Sawyer, Sawyer Gas
■ Walter Snelling, American Gasol Co.
■ Milford Therrell, Squibb-Taylor Inc.
■ H. Emerson Thomas, Continental Tank Car Co.
■ John Wallace, Petrolane
■ Dwain Willingham, Propane Resources
www.LPGasmagazine.com May 2016 LPGas | 31
Love Sr.
Continued on page 32
Says Warren Petroleum’s Bill Byrne: “This industry is a group of
people that I will cherish all my life.”
Rob Love delivers a moving tribute to his father, Robert Y. LoveSr., upon his father’s induction.
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Love’s work in Mississippi was noticed by the NationalLP-Gas Association, which named him the State Directorof the Year in the mid-1980s. The award recognized Love’sachievement in supporting the national association’s market
promotion program for member companies. He served on thenational association’s board dating back to 1977, chaired itsexecutive committee and was elected president in 1990.
“My dad died too young, too soon, but he lived his life well,”says Rob Love, president of Lampton-Love, who accepted thehall of fame honor on behalf of his father. “My dad and theguys in the business back then were all real friends, and that’ssomething my generation doesn’t see today.”
Daryl McClendonMcClendon helped facilitate the establishment of the Pro-pane Education & Research Council (PERC) – arguably hismost significant contribution to the industry. He was one ofthe charter councilors and served as PERC’s second chair-man from 1999 to 2001, helping to set up the organizationfor success.
During McClendon’s chairmanship, the council launchedmany firsts, according to PERC President and CEO Roy Wil-lis. This included the first market research initiative, the pro-
pane branding effort that ledto the “Propane ExceptionalEnergy” theme, the first con-sumer education advertising
program and the Partnershipwith States program that ex-panded the reach and fre-quency of the council’s adver-tising campaign to bring thepropane message to end users.
McClendon also played akey role on the council’s con-sumer education advisorycommittee. In addition, hewas heavily involved in theNational Propane Gas As-
sociation (NPGA), serving ascommittee chairs and in theofficer roles. He was president
of the board for the 1995-96 term. He also directed a taskforce that led to the creation of the Gas Check program.
“I’m joining a class of 28 people that I’ve admired – and theclass of 2016 that I’m inducted in is one that I’m proud to bein,” McClendon says.
Thomas Nunan Jr.Nunan, the late vice president of sales for Suburban Propane,
was always selling. In fact, he built a 50-year career in the en-ergy industry.
But it wasn’t just his sales role withthe major propane marketer – and Pet-rolane before it – that drew attention.It was what he did for the industry asa whole that earned him a place in the
LP Gas Hall of Fame.Those who knew Nunan say he ex-
uded leadership and was a respectedrepresentative of the propane indus-try as he traveled to events around thecountry. Nunan helped take SuburbanPropane public in 1996, mentoring its CEO before retiring
from the company in 1999.Nunan was a founding
member of PERC, serving onthe council from 1997 to 2005and helping to develop PERC’soriginal grant review process.He was PERC’s vice chairmanof marketers from 2000 to2002.
“His most important skillin the industry was his abil-ity to motivate people whoworked for him and with him,”says daughter Katie Nunan,who accepted the hall of famehonor on behalf of her father.
“He valued enthusiasm.” LPG
L P G A S HALL OF FAME
32 | LPGas May 2016 www.LPGasmagazine.com
Nunan Jr.
Continued from page 31
2016 Hall of Famer Daryl
McClendon left his mark at
a number of the industry’s
top companies, brands andorganizations.
Katie Nunan, daughter of
Hall of Famer Tom Nunan,
introduces members of the
Nunan family in attendance.
LP Gas’ Brian Kanaba gets the f ifth annual induction ceremonystarted at the Omni Nashville Hotel.
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L P G A S HALL OF FAME
The 2016 LP Gas Hall of Fame induction ceremony drew anotherlarge crowd, this time to the Omni in downtown Nashville, Tenn.
Eight of the 28 members of the LP Gas Hall of Fame were present at the 2016 ceremony. From left
are Jim Bertelsmeyer, Bill Byrne, Daryl McClendon, Bob Nicholson, Dan Myers, Bob Myers, Glenn
Miller and Gene Bissell.
LP Gas’ Brian Richesson
discusses the hall of fame
selection process as part of hisopening remarks.
Thanks to Suburban Propane,
AmeriGas, Blossman Gas,
Eastern Propane and
Ferrellgas for sponsoring the
LP Gas Hall of Fame this year.
www.LPGasmagazine.com May 2016 LPGas | 33
From left: This Suburban Propane group includes Tom and SallyRoss and Sam and Pennie Hodges.
Daryl McClendon, right, visits with LP Gas’ Brian Kanaba, left,
and Brian Richesson following the ceremony.Hall of Famer Glenn Miller of
Miller’s Bottled Gas attended
the ceremony with his wife,
Joan Miller.
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L P G A S HALL OF FAME
34 | LPGas May 2016 www.LPGasmagazine.com
From left: Ferrellgas’ Nancy Coop, Energy
Distribution Partners’ Tom Knauff and
NGL Energy Partners’ Harold Poland catch
up during the cocktail reception.
Ferrell North America’s Tom Van Buren, left,
and Warm Thoughts Communications’ Tom
Jaenicke visit during the cocktail reception.
Bill Byrne, left, poses with Lampton-Love’s Rob
Love and Courtney Love.
From left: Ferrellgas’ Randy Warner and Westmor Industries’
Jason Soulon and Tim Esterling.
Hall of Famer Bob Nicholson of Eastern
Propane, left, and LP Gas’ Brian Richesson.
Pat Hyland, former editor in chief of LP Gas (first at left), joins the magazine’s
current staff for a photo. Next to Hyland, from left, are Brian Kanaba, KevinStoltman, Megan Smalley, Ryan Bockmuller, Brian Richesson and Kevin Yanik.
From left: Energy Distribution Partners’ Mark Zimora and Marlo
Young with AmeriGas’ Daniel Dixon.
Susan and Jerry Brick of North
Star Energy LLC.
Hall of Famer Dan Myers of the
National Propane Gas Association, left,
and Ray Murray Inc.’s Ray Murray.
From left: Rutherford Equipment’s Randy and
Cindy Rutherford with Blossman Gas’ RandyDoyle.
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L P G A S HALL OF FAME
www.LPGasmagazine.com May 2016 LPGas | 35
Superior Plus Corp.’s Luc Desjardins, center,
shares a moment with LP Gas Hall of Famer
Gene Bissell of AmeriGas, right, and Bissell’s
wife, Joann.
Relive the 2016 ceremony Tribute videos of each 2016 LP Gas Hall
of Famer produced for this year’s induc-
tion ceremony, as well as the speeches
delivered at the ceremony by Bill Byrne,
Rob Love (son of Robert Y. Love Sr.), Daryl
McClendon and Katie Nunan (daughter of
Thomas Nunan Jr.), are now viewable at
www.lpgashalloffame.com/inductees.
Members of the Nunan family, from left: Ann Nunan, Kaki Nagel, Richard Nunan,
Peggy Bonfield, Patty Dalton, Gary Sartor, Sally Sartor, Billie Nunan, Patrick
Nunan, Katie Nunan, Thomas Nunan III and Angela Dalton.
LP Gas Hall of Famer Jim Bertelsmeyer
of Heritage Propane, left, and AuxierGas’ Doug Auxier.
Family Propane’s Charlie and
Teri Ory.
From left: David Fulbright of White River Distributors, Bruce
Swiecicki of the National Propane Gas Association and Jay
Johnston of Jay Johnston & Associates.
Laura and Dan Hermansen of
Westmor Industries.
Hall of Famer Bob Myers of Petrolanewith his wife, Francine Myers.
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About 130 attendees joined us in Nashville as we inducted the Class of 2016.
Now we're already looking ahead to 2017. Do you know one of the next
inductees? Submit your nominations at LPGasHallofFame.com.
For more information, contact Brian Richesson at
[email protected] or 216-706-3748.
A propane industry career is
celebrated in this moment.
Guests gather. Room quiets. Spotlight shines.
N o w A c c e p t i n g
2 0 1 7 N o m i n a t i o n s t h r o u g h S e p t . 3 0 , 2 0 1 6
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When Steven Abbate firstdeveloped a panel discus-sion on buying and sellingbusinesses for the heatingoil industry, he doubted
whether experts would be interested insharing their strategies.
“I honestly wondered, ‘Will theseguys really share their ways about buy-ing?’” he says.
Abbate hosted a panel on buying andselling in 2011 at the Atlantic Region En-ergy Expo in Atlantic City, N.J. To Ab-bate’s surprise, many people participatedin that panel discussion on acquisitions.He adds it went over so well that he wasasked to host it two more times at similarregional energy shows.
In recent years, Abbate’s merger and
www.LPGasmagazine.com May 2016 LPGas | 37
Driving toward a dealSeveral propane industry representatives share best practices
in acquisitions at Propane Expo session
M E R G E R S A N D A C Q U I S I T I O N S
Continued on page 38
BY MEGAN SMALLEY | ASSOCIATE EDITOR
ISTO
CK.COM/TOMAZL
Abbate
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acquisition advisory company, CetaneAssociates, has started to assist buy-ers and sellers in the propane industry.The National Propane Gas Association
learned about Abbate’s sessions in theheating oil business and asked him topresent a similar panel for the propaneindustry at the 2016 Southeastern Con- vention & International Propane Expoin Nashville, Tenn.
For the Propane Expo, Cetane Asso-ciates created a panel of five representa-tives – from AmeriGas, Crystal Flash,NGL Energy Partners, Paraco Gas andStar Gas Partners – to share best prac-tices on buying and selling propanebusinesses.
“I’d call it a powerhouse of a panel,”says Tom Jaenicke, vice president ofpropane marketing services for WarmThoughts Communications, who intro-duced the pane