Can Propane Survive This Legislative

Summer | 2014

PropaneAn Industry Service of The Michigan Journal Propane Gas Association

Natural Gas Proponents Look For Ways To Limit Propane In Michigan A Worldwide Propane Truck Manufacturer

We Build: We Repair: We Test & Inspect: New, Rechassis & Used Bobtails Accident & Full Service DOT and Annual “V” & “K” Custom Service & Cylinder Trucks Engine, Transmission & Suspension 5-year Hydro Tests Crane, Liftgates & Service Bodies “R” Stamp MC330/331 Vessels Sandblast & Paint

Michigan PropaneSignatureTruck.com Gas Association 2 • www.UseMichiganPropane.com 800 • 454 • 1122 Table of Contents MPGA MISSION STATEMENT To advance safety by working for a favorable environment for propane 4 2014 MPGA Board of Directors distribution and marketing, to 5 increase its application by demonstrating Message From The President propane’s value as a clean, 7 Michigan Man Leaves Propane Legacy reliable, efficient energy source. 8 Eco-Friendly S2G Propane Truck Runs First Field-Test in Michigan 10 MPGA Members Get to See an Innovative Propane MPGA Office: Conversion Facility 1000 West St. Joseph Hwy., Suite 200 13 Propane Emergency Crew on the Move Lansing, MI 48915 15 New Law Updating Excavation Rules Will Not Affect Propane Telephone: (517) 487-2021 16 New Medical Rule for Interstate CMV Drivers Fax: (517) 485-9408 Michigan Propane Gas Association 18 Concerns Linger as Last Winter Finally Fades www.UseMichiganPropane.com 21 Be Familiar with Changes in NFPA-58 2014 22 MPGA Stands Up for Propane Providers Propane Journal Committee: 26 Propane Retailers Fight for the Fate of Michigan’s Propane Industry at Stacey Haskins, Chair, Ferrellgas the Capitol Rob Vandemark, Industrial Propane Service, Inc. 30 MPGA Report Show Downside of Nat Gas Infrastructure Build-Out David Lowe, Pro Image Communications into State Rural Areas Tom Jaenicke, ATomiK Creative Solutions, Consultant 33 Hot Topic on Capital Lawn—HB 5555 38 Michigan Students Selected for National Propane Scholarships MPGA Management and 39 In Bipartisan Compromise Michigan Raises Minimum Wage Legislation Consultants: 41 MPGA Scholarship Winners Announced Kindsvatter & Associates, Inc. 1000 West St. Joseph Hwy., Suite 200 43 Featured Marketer—Dependable LP Gas Company Lansing, MI 48915 45 Looking into Michigan Winter 2014-2015: Will it be Warmer Derek Dalling than Usual? Christian H. Kindsvatter 46 Featured Supplier—Smith Gas Liquids Company Jason Wadaga 49 What’s New! Matthew Solak Denise Stone 50 Calendar/List of Advertisers Sara McCallum Alicia Vazquez Christopher Jones Michelle Dishaw Geri Root Alicia Hansen

Propane Journal is published quarterly by the Michigan Propane Gas Association, 1000 West St. Joseph Hwy, Ste. 200, Lansing, MI 48915, (517) 487-2021. The Propane Journal is paid for in part by a rebate grant from the National Propane Education & Research Council and is available for free to the marketers and the public. All inquiries and address changes should be sent to the above address. Articles written by outside authors do MPGA’s Propane Journal is dedicated to providing education not necessarily reflect the view or position of the Michigan Propane Gas Association (MPGA). MPGA’s position on key issues will be clearly stated. and safety articles for both propane consumers and marketers. The Propane Manuscripts are accepted at the approval of MPGA who reserves the right to reject or edit. The Propane Journal does not constitute endorsement of Journal is supported in part through a state rebate granted from the National the advertiser, its products or services nor does the Propane Journal make Propane Education Research Council. The Propane Journal is circulated to all any claims or guarantees as to the accuracy or validity of the advertiser’s offer and reserves the right to reject any advertising deemed unsuitable. marketers in Michigan and public interest groups across the state. Advertising rates and other information available upon request.

Michigan Propane Gas Association 3 www.UseMichiganPropane.com 2014 MPGA Board of Directors Officers President Treasurer Immediate Past President Kim Godlewski, IPS Equipment, Inc. Howard Davis, Ferrellgas Kris Bowman, Bowman Gas [email protected] [email protected] [email protected] 1st Vice President Secretary Executive Director Marv Ockerman, Stanford LP Gas Andy VanderBoegh, Alto LP Gas Derek Dalling, Kindsvatter, Dalling & Associates [email protected] avanderboegh@@altogas.com [email protected]

2nd Vice President NPGA Representative (Not already listed Active Past Presidents on this page) Blaine Cronn, Cronn Consulting, LLC Bruce Montroy, Bergquist [email protected] [email protected] David Long Tim Miller Bob Vandemark

Committee Chairs

Alternative Fuels Industry Outreach Michigan PERC Propane Emergency Gary Shepherd, Stanford LP Gas Stacey Haskins, Kris Bowman, Response Network [email protected] Ferrellgas Bowman Gas Marv Ockerman, Stanford LP Gas Convention [email protected] [email protected] [email protected] Kim Godlewski, Long Range Planning Michigan Propane PAC Safety & Compliance IPS Equipment Kris Bowman, Kandy Sweet Larry Otto, [email protected] Bowman Gas Liberty Propane LDO & Associates Consulting, LLC Education [email protected] [email protected] [email protected] Tim Myers, IPS Equipment, Inc. Marketing Midwest Convention Rep. Scholarship [email protected] Blaine Cronn, David Lowe, Pro Image Matt Parsch, Governmental Affairs Cronn Consulting, LLC Communications Al Parsch Oil & Propane [email protected] [email protected] Wayne Kohley, Excel Propane Co. [email protected] [email protected] Mechanical Code NFPA 58 Transportation Homeland Security Jim Cross, Jr., Jeremy Stanford, Joe Volk, Signature Truck Northwest Energy, Inc. Systems, Inc. Randy Halstead, Homeworks Stanford LP Gas [email protected] [email protected] Tri-County Propane [email protected] [email protected] Membership Propane Emergency Training Weights & Measures Jeff Hynes, Brian Lincoln, Stanford LP Gas Rob Vandemark, Kent Oil & Propane [email protected] Industrial Propane Service, Inc. [email protected] [email protected]

District Directors (date of expired term)

District I District IV Don Steckman (2015) Chris DeGrote (2014) Matt Parsch (2015) Dan Roberts (2014) Ferrellgas Dependable LP Gas Co. Al Parsch Oil & Propane Stanford LP Gas [email protected] [email protected] [email protected] [email protected] Supplier John Breithart (2015) Scott Gabriel (2015) District III Don Montroy (2014) Crystal Flash Energy Fick & Sons Scott Fleetwood (2014) Bergquist, Inc. [email protected] [email protected] Tri-Gas Distributing Co. [email protected] [email protected] District II District V Jim Zuck (2015) Troy Avery (2014) Scott Overholt (2015) Guy Bowman (2015) Marshall Excelsior Avery Oil & Propane Tri-Gas Distributing Co. Bowman Gas [email protected] [email protected] [email protected] [email protected]

Michigan Propane Education Research Council Board Secretary/Treasurer Board Members: Officers: Bruce Montroy President Bergquist, Inc. Ken Dubay NPGA District 6 Director Bergquist Kris Bowman Immediate Past President Tom Jaenicke Bowman Gas Randy Halstead Kris Bowman ATomiK Creative Solutions Homeworks Vice President [email protected] Bowman Gas Tri-County Propane Don Rittersdorf Director Petersen Oil & Propane, Inc. David Lowe Duane Standford Pro Image Communications Stanford LP Gas

Michigan Propane Gas Association 4 www.UseMichiganPropane.com Message From The President We Made it Through…

inter 2013/2014 was a big-time challenge for the propane industry. But you already know that. You were there. And you did your part. As your President, I want to thank each and every one of you for your hard work and super dedication in taking care of the Wthousands of our propane customers across the state. I want to thank those who hauled propane countless hours to meet the demands of both propane marketers and customers during the brutal, bitter cold. I want to thank our association management firm, KDA, for all of their great communications and support of our industry. And I want to thank Communications & Research, Joe Ross, for his many hours as the strong, clear voice of our industry to the media and the public. Because of all your efforts, we got through it, and most importantly, took care of our valuable customers.

I told you last July that this would be an “AWESOME” year. But I had no idea to what extent! Originally, I had anticipated doing things like focusing on association membership, communications, training, and fellowship. But “awesome” became

Kim Godlewski, MPGA President “overwhelming” and “tremendous” to describe this past winter. With great members like you, we met those huge challenges head on and got it done. Thanks to all!

Important challenges, however, persist. We need each and every member to come together and fight for what we all believe in: providing a reliable, consistent, and affordable source of energy for Michigan residents! Now more than ever, we need each and every member to be active and involved in OUR industry!

Please remember to send in your dues and continue to receive all the benefits that the MPGA brings you! We can do far more together.

“Coming together is a beginning; keeping together is progress; working together is success.” —Henry Ford

Michigan Propane Gas Association 5 www.UseMichiganPropane.com MICHIGAN PROPANE GAS ASSOCIATION

Certified Employee Training Program (CETP) and Non-Certified Courses available now

www.usemichiganpropane.com Michigan Propane Gas Association 6 www.UseMichiganPropane.com MICHIGAN PROPANE GAS ASSOCIATION arold A. Miller, retired-owner of Reliance Propane & Fuel Co., was a propane industry Michigan member sure to be missed. HIn January, Mr. Miller passed away at 79 years Man old, leaving behind a propane legacy to be reckoned with. Mr. Miller began working for his father, Harold “Red” Miller, who founded Reliance, a distributor of compressed gas propane and home heating oil, when he was just 13 Leaves years old. Upon graduation from Macomber Vocational High School in 1954, Mr. Miller became a full-time employee, eventually Propane assuming the role of company president. Mr. Miller retired from Reliance this past August, after more than 50 years in the propane industry. The company Legacy remains family-owned, as his son-in-law, Jim McVicker, is now President of the company.

Will you make a difference in our industry? FRIENDS OF WIP WILL! Show your support today. Certified Employee Training Program (CETP) and Non-Certified Courses available now Women in Propane is a business council Categories of designed for winners! membership: Register Today! Visit usemichiganpropane.com Friends of WIP support the cause. Demonstrate your support for the $25 Individual and click on Training & Events council’s positive initiatives by joining as a “Friend” to ensure industry $25 Friend of WIP members across the nation beneﬁt from outstanding training, networking and mentorship programs. WIP is open to men and women members. “Friends” $500 Corporate (allows as many employees are notiﬁed of council activities while maintaining a non-voting status. to enroll as desired) www.npga.org/WIP www.usemichiganpropane.com Michigan Propane Gas Association 7 www.UseMichiganPropane.com Eco-friendly S2G Propane Truck Runs First Field-Test in Michigan

lready known for a low-carbon footprint, the propane Mike VanDenBoom from Signature Truck took part in the industry took new steps to be even cleaner: the ceremonial “passing of the keys.” first-ever, propane-fueled delivery truck starts taking “Propane marketers will have an easier time running their fleet on its rigorous field tests in Michigan. A the fuel they sell. People that operate medium-duty trucks will Freightliner Custom Chassis Corp. (FCCC) delivered its first have a choice of something other than diesel: They’ve got propane-autogas S2G work truck to representatives of Amerigas propane,” said VanDenBoom. “We’re very proud to be a part of at the headquarters of project partner Powertrain Integration in the build-out of such an advanced vehicle.” Madison Heights, MI on March 24. Nearly 40 people attended the presentation ceremony and also Other industry officials from CleanFUEL USA, Signature Truck saw the S2G take its first official field test. Systems, and Michigan Propane Gas Association also helped Powertrain Integration provides custom solutions for OEM usher in a new stage of greater environmental awareness. engines and drivetrains in the General Motors product “The S2G represents a major new development in offering lineup. commercial fleet customers the only propane-fueled truck. CleanFUEL USA was the first company to develop liquid Delivering propane with propane is simply great for our propane fuel injection systems in the U.S. The company also industry,” said Kim Godlewski, MPGA President. manufactures propane autogas dispensers and fueling Amerigas is among a select group of S2G customers chosen for infrastructure. the field test that will put the first 25 S2G units through an Signature Truck Systems which helped build the S2G truck extended, rigorous delivery regimen. The FCCC anticipates has been a Michigan-based manufacturer of propane delivery successful field tests and then expects to start full production of trucks worldwide since 1999. the S2G this summer.

Michigan Propane Gas Association 8 www.UseMichiganPropane.com FCCC specializes in custom chassis production to provide customers with chassis options that consume less fuel and reduce the carbon footprint. The environmentally-friendly S2G truck is the most recent addition to FCCC’s commitment to deliver alternate-power options to customers.

The Propane Education & Research Council (PERC) supported the project. PERC was established to promote the safe and efficient use of odorized propane gas by the U.S. Congress.

(L to R) Scott Peffer, CFUSA, Mike VanDenBoom, Director of Operations Signature “The S2G represents a major new development in Truck Systems, Steve Bridson CFUSA, Bob Pachla, President Powertrain Integration, Mike George, Area Director of Amerigas, Gordie Taylor, FCCC, Kim Godlewski, offering the only propane-fueled truck to commercial MPGA President, Ed Garda, Powertrain Integration fleet customers. Delivering propane with propane is simply great for our industry.” —Kim Godlewski, MPGA President

S2G Truck

Passing of the keys: (right) Gordie Taylor, FCCC, and Mike George, Amerigas

“Collectively, we now have a high performance, lower- emission fleet vehicle that sets new industry standards. I’m proud to be a part of it.” —Joe Volk, President, Signature Truck Systems

Michigan Propane Gas Association 9 www.UseMichiganPropane.com MPGA Members Get to See an Innovative Propane Conversion Facility

early 50 MPGA members attended this year’s Supplier Directors’ Tour of the ROUSH CleanTech facility in Livonia on May 21st. Ray Watts from State House Rep. NMartin Howrylak’s office also attended. The tour looked at the facility used primarily for the production of propane-powered Blue Bird bus engines. ROUSH CleanTech receives Ford engines, and installs and tests the direct-injected liquid propane fuel rails with injectors. ROUSH then sends the engines to the Blue Bird assembly plant in Fort Valley, GA.

MPGA members got to view the assembly and testing of liquid propane fuel injectors on fuel rails and ROUSH’s double fuel pump system. The fuel pumps are installed inside the fuel tanks, and the entire system is tested for integrity in a hydro-chamber.

Lunch was generously provided by Dan and Kyle Roberts, and Marv and Travis Ockerman. The tour was topped off with a look at Jack Roush’s personal car collection inside the ROUSH Automotive Collection/Retail store.

All in all, this year’s Supplier Directors’ Tour was enormously successful with a stimulating tour of an industry leader’s innovative facility. 1965 Ford Mustang 2+2 Fastback

Travis Ockerman of Gary Oil & Propane preparing for lunch An assembled Blue Bird bus engine

Michigan Propane Gas Association 10 www.UseMichiganPropane.com Marv Ockerman and Dan Roberts of Standford LP Gas, and Travis Ockerman Joe Thompson, President of ROUSH CleanTech of Gary Oil & Propane, serving lunch

Fuel injectors being assembled and tested on fuel rails Don Manfredi, Group Account Director at ROUSH CleanTech presenting to attendees inside the ROUSH Automotive Colection-Retail Store

Products you need. People you trust.SM Keeping you supplied. Where you need it. At the best price. With the right equipment.

Andy Schneider 309-826-9598 [email protected] www.growmark.com

Michigan Propane Gas Association 11 www.UseMichiganPropane.com Michigan heroes Protect Michigan coMMunities

Sign Up Now to Host a Propane Emergencies Training at your Fire Department. Contact Brian Lincoln at (517) 487-2021 or [email protected] Don’t let the next power failure Propane shut your business down. Keep your plant pumping Your trucks full Emergency Crew Phones operating Lights on On the Move and your doors open for business. Make your next purchase a PE Crew is Asking For Kohler Propane Generator. It will put you back in control and let you face that next outage head-on. Your Support

he PE Crew—Brian Lincoln, Mark Jensen and Tim Myers—is asking MPGA members for their support in manpower and fuel supply. T The Crew is asking marketers to lend a hand for a few hours by providing a truck and operator to their local PE training event.

Please contact Dan Roberts: [email protected]

The Crew thanks you all for your support! 800.537.7518

July 15 July 31 Alpena (Alpena County, District IV) Schoolcraft (Schoolcraft County, District V) Host: Alpena CRTC Fire & Host: Schoolcraft County Fire Emergency Services Chiefs Association Classroom: 5884 A Street Alpena Classroom: 300 N. Maple St. Manistique Outdoor: Same as classroom Outdoor: Same as classroom Instructor: Brian Lincoln Instructor: Mark Jensen

July 17 August 5 Grayling (Crawford County, District IV) Clarksville (Ionia County, District I) Host: Grayling FD Host: Campbell Township FD Classroom: 1041 City Blvd. Grayling Classroom: 325 S. Main Clarksville Outdoor: Same as classroom Outdoor: Same as classroom Instructor: Mark Jensen Instructor: Brian Lincoln

July 30 August 7 Ishpeming (Marquette County, District V) Rothbury (Oceana County, District III) Host: Ishpeming Township FD Host: Grant Township FD Classroom: Ishpeming Township Hall Ishpeming Classroom: 7140 S. Oceana Drive Rothbury Outdoor: Same as classroom Outdoor: Same as classroom Instructor: Brian Lincoln Instructor: Mark Jensen

Continued on pages 14

Michigan Propane Gas Association 13 www.UseMichiganPropane.com August 12 Check out our new Website! Reed City (Osceola County, District III) www.arrowbobtails.com Host: Reed City FD Classroom: 523 Morse Street Reed City Outdoor: 505 E. Lincoln Avenue Reed City Instructor: Brian Lincoln

August 14 Newaygo (Newaygo County, District III) Host: Newaygo County Firefighters Training Committee Classroom: Newaygo County Commission on Aging 93 S. Gibbs Street White Cloud Outdoor: Same as classroom Instructor: Mark Jensen

August 26 Midland (Midland County, District IV) Host: Homer Township FD DISCOVERWHAT MAKES OUR BOBTAILSTHE BEST! Classroom: 222 S. Homer Road Midland Outdoor: Same as classroom CALL AND INQUIRIES & SALES • 800-333-5532 Instructor: Brian Lincoln COMPARE! SERVICE & PARTS • 888-892-7769

August 28 Cass City (Tuscola County, District IV) Host: Elkland Township FD Classroom: 6691 Church Cass City Outdoor: Same as classroom Instructor: Mark Jensen

Michigan Propane Gas Association 14 www.UseMichiganPropane.com New Law Updating Excavation Rules Will Not Affect Propane

“The Michigan legislature was correct in excluding propane from this legislation. It would have put burdensome regulations on our industry without any real benefit. The MPGA does however acknowledge the work done by legislators to promote safety in our state.” —Jason Wadaga, MPGA Lobbyist

Jason Wadaga

he Legislature recently passed legislation to update Highlights of the New Law the 40-year-old MISS DIG Underground Facility Damage and Safety Act. The new law establishes the Excavators are required to expose all marked utilities in an best safe-digging practices to prevent infrastructure 8-foot caution zone by hand. Power equipment can be used Tdamages, injuries, and deaths. However, the updated act has in the caution zone after exposing all marked facilities. little effect on the propane industry. Excavators must also provide support or bracing of utilities or excavation walls in an excavation or blasting area that are The MPGA had lobbied to ensure that propane was not reasonably necessary for protection of utilities. included in the definitions of “utilities” or “facilities.” The new law could have put a heavy burden on the propane industry If parties are unable to come to a resolution, they may file a without producing any real benefits. Underground propane complaint under the Act. tanks pose very little risk compared to the potential impacts of MPSC has new authority that allows for a fine of not more excavation operations in the construction industry. than $5,000, under certain circumstances. However, it is important that marketers are aware of the new Municipalities now are liable for damages to underground law because it is always a good and safe practice to know where facilities and will be subject to fines, plus training. you’re digging. Complaints related to this law can be filed online at the Although the new law does not directly affect the propane MPSC’s website: Michigan.gov/MPSC industry, it’s important to know about any efforts to promote safety in Michigan.

Michigan Propane Gas Association 15 www.UseMichiganPropane.com New Medical Rule for Interstate CMV Drivers

he U.S. Department of Transportation (DOT) has The new program only applies to CMV drivers crossing state implemented new requirements for interstate lines; it does not apply to intrastate drivers (those driving commercial motor vehicle (CMV) drivers to obtain within a single state). physical examinations and medical certificates from The National Registry ensures that medical examiners fully Tmedical professionals listed on the National Registry. understand the medical standards regulated by the FMCS as The new U.S. DOT program requires any healthcare well as ensure public confidence in the quality of the medical professionals whose scope of practice includes performing examinations of CMV-interstate drivers. physical examinations and issuing medical certificates for Drivers can find certified medical examiners in their area by CMV drivers to meet the requirements of the Federal Motor visiting the registry online at: https://nationalregistry.fmcsa. Carrier Safety Regulations (FMCSR) and be listed on the dot.gov and click on “Distribution of Certified Medical National Registry by May 21, 2014. Examiners”. Prior to setting up the registry, drivers were able to receive examinations and medical certification from any medical doctor. Continued on pages 17

Adding VAlue

For more than 25 years, UHY LLP’s team of industry experts have been providing value-added services to some of the Midwest’s finest propane companies. Because we understand your operations and the complex tax, accounting and business issues surrounding the industry, we are able to identify opportunities and bring tangible value to our clients.

Contact Keith A. Moore, CPA Propane Team Leader Phone 586 843 2545 Email [email protected] Website www.uhy-us.com The next level of service An independent member of UHY International

Michigan Propane Gas Association 16 www.UseMichiganPropane.com Who Can be a Medical Examiner?

Medical examiners have many titles. The definition for a medical examiner is in Sec. 390.5 and states it is a person who is licensed, certified, and/or registered, in accordance with applicable state laws and regulations to perform physical examinations. The term includes, but is not limited to, doctors of medicine (MDs), doctors of osteopathy (DOs), physician assistants (PAs), advanced practice nurses, and doctors of chiropractic (DCs). A licensed optometrist may perform the vision portion of the examination.

In selecting a medical examiner, it is important that he/she is familiar with the Federal Motor Carrier Safety Regulations (FMCSRs). It is the motor carrier’s responsibility to ensure that the medical examiner is informed of the minimum medical requirements and the characteristics of the work to be performed.

Michigan Propane Gas Association 17 www.UseMichiganPropane.com Concerns Linger as Last Winter Finally Fades BUT WILL THE SAME CHAOS RETURN NEXT YEAR?

s preparations proceeded last year for the Other important factors included pipeline disruptions in upcoming heating season, propane industry lines supplying propane to the Midwest and exports to professionals predicted the season would pose world markets. In 2013, more than 20 percent of total U.S. numerous challenges for both propane providers propane was exported, up from 5 percent in 2008. andA consumers. Challenges were layered on challenges At the height of this past winter’s heating crisis, most news throughout the season and culminated with a “perfect media were unaware of these adverse factors affecting the storm”—a hugely unfortunate set of circumstances that no availability of propane in Michigan. The Michigan Propane one could have predicted. Gas Association was quick to act, and distributed a series As winter finally fades into a long-anticipated summer, of news releases to the media explaining these important industry professionals and propane consumers all wonder— factors. In addition, educational materials were shared with what exactly happened? Michigan residents.

A confluence of two significant events last October set the stage for a most difficult winter: ne An abundant grain crop and a wetet fall season resulted in inter E rgy Ch ’s W all a large, wet crop requiring massive volumes of propane an en ig ge for farmers to dry their crops prior to their storage. ich M rts A colder-than-normal fall was followed by an early- po C starting, brutally-cold winter that increased propane x ro E p e demand and thereby reduced propane inventories n D r throughout the Midwest. a An important difference Abundant grain crops y p between this year were being harvested i o and previous years is throughout the Upper n r the extent of propane Midwest this fall. This g P exports into the world was a large, wet crop market. In 2013, more that required massive than 20% of total U.S. amounts of propane in propane was exported, order to be dried prior MPGA designed this graphic, which up from 5% in 2008. to storage. was included in the first news release, A Midwest pipeline The Cochin pipeline, to help the media understand the previously in propane which provided 40% service was reversed of the product used by P roots of the heating crisis. to begin moving ethane Minnesota suppliers, i p from the central part of was shut down for e the country to the Gulf repairs. This triggered a s l Coast. chain reaction causing r The news releases were just one part in suppliers to go further i e out to load their supply. a of the MPGA’s proactive response to p last winter’s heating crisis. R e ev R e ne rse eli d Pip

Continued on pages 20

Michigan Propane Gas Association 18 www.UseMichiganPropane.com Can your business survive an accident like this?

Lower your risk. Raise your reward. The energy business is filled with risks that can destroy your business, from dangerous accidents to compromised customer data. Trust the knowledgeable agents at PT Risk Management to help reduce your liability while driving up your profits.

Comprehensive coverage extends to areas most agents miss

Best-practice upgrades improve safety

Enjoy savings of 10 – 15% off regular premium costs

Learn More at S FOR A U F L R L E PTRisk.com A E C

1.800.556.8228 C O N N I O S U LT A T

S FOR A U F L R L E A E C

1.800.556.8228RIEN E C C P E X N O E O N I T SNOU LT SURPRISESA

I SINCE1993 N Y T T E G R I

RIEN PE C X E E SINCE

NO SURPRISES I 1993 N Y T T Propane Marketers | Fuel Distributors | Energy Transportation E G R I

ERIEN P C Michigan Propane Gas Association 19 www.UseMichiganPropane.comX E E

NO SURPRISES I N Y T T E G R I

PERIEN X C E E

NO SURPRISES

I N Y T E G R I T In Michigan, 9 percent of residents use propane to heat their home. When finances are strained, families tend to take dangerous risks to keep their home heat on. These risks include: bringing grill cylinders inside their homes or attempting to attach grill cylinders to their home heating systems. Both of these actions expose Michigan residents to dangerous and illegal situations.

MPGA realized if residents had access to educational resources, these dangerous, and sometimes fatal, situations could be avoided. And so HeatingMyHome.Org was created.

HeatingMyHome.Org provides important safety tips to Michigan residents and important information on funding assistance for low-income families. Previously, Michigan residents had to find organizations that provide help and funding assistance on their own. In creating HeatingMyHome.org, the MPGA put it all together for Michigan residents. A list of more than 500 listings providing assistance was compiled for Michigan residents, making the website a one- stop shop for financial assistance and safety information.

Michigan Propane Gas Association 20 www.UseMichiganPropane.com Be Familiar with Changes in NFPA-58 2014 By Jeremy Stanford, MPGA NFPA-58 Chairman

he 2014 edition harmonizes container requirements for containers 4000 gal and less water capacity and greater than 4000 gal water capacity (wc). A bulk plant and an industrial plant are defined as facilities storing more than 4000 gal wc, which is the reason for the demarcation point of 4000 Tgal wc. A new definition was added for vehicular barrier protection (VBP). There are many installations where the container and valves are required to be protected from vehicular impact, but no specific information was provided as to what constituted such protection. A new definition to describe VBP is incorporated into the 2014 edition, along with extensive annex material. In addition, prescriptive requirements are added for VBP of LP-Gas dispensers.

Qualifications of personnel have been expanded for clarification in Chapter 4. The requirements, which originated as a Temporary Interim Amendment to the 2011 edition, specify which personnel must be trained and what topics they must be trained in. New requirements are included covering tank heaters, and requirements for vaporizers have been updated.

Finally, the 2014 edition includes new requirements to provide cathodic protection for underground metallic piping systems greater than 2 inches. Previously, all underground metallic piping was only required to be coated or painted. The new requirements for piping systems are very similar to those for cathodic protection of underground containers.

Authorized Stocking Distributor for Manual Posting In the Truck & Office

We stock the parts and systems you need with common items such as: •Transmitters & Cases Mobile Software •Antennas & Coaxial Cables LCR-II DMS •Relays & Passive Shutdown Parts FEATURES: Plus a variety of miscellaneous parts ready for • Electronically Transfers Delivery Data To • Pre-buy Tracking next day delivery with great shipping rates. and From Your Back Office System • Full Control of the LCR Register • Automatically Captures Delivery Information • GPS Compatible • FREE Technical Support • Captures Tank Locations • Easy to Operate, Easy to Install •Wireless/Cellular Data Transfer • Uses Off the Shelf Memory Storage From Truck to Office BENEFITS: • Increase Overall Operating Efficiency • Decrease Customer Inquiries • Eliminates Manual Posting • Download Captured Tank Locations to • Eliminates Clerical Errors Garmin Navigator for New Drivers • Low Cost Start-up

To view a demo of this product go to the GEC YouTube Channel Add EZ-Count Mobile Software to your www.youtube.com/gasequipmenttv Liquid Controls DMS. Atlanta GA Dallas TX Fayetteville NC (800) 241-4155 (800) 821-1829 (800) 447-1625 Houston TX Indianapolis IN Kansas City MO (800) 334-7816 (800) 241-1971 (800) 821-5062 Little Rock AR Orlando FL Richmond VA St. Louis MO (800) 643-8222 (800) 821-0631 (800) 368-4013 (800) 423-4685

www.gasequipment.com Gas Equipment Co. TV - www.youtube.com/gasequipmenttv Bill Fisher

Michigan Propane Gas Association 21 www.UseMichiganPropane.com Stands Up for Propane Providers

Responding Effectively to Price Gouging Allegations Last Winter with a Positive MPGA Image

o doubt about it—last winter was brutally difficult for everyone. With a range of issues impacting the supply of propane that were Nunderstood by the industry but not by customers or the news media, there were accusations of price gouging.

The industry stood up strong and met the accusations head- on. The MPGA acted quickly to respond to the media, and more importantly, to educate the media and customers about the truth and realities of the heating crisis.

These efforts were highly effective. Two news releases were distributed to 350 media outlets, which generated 120 live interviews between January and March and more than 300 on-air and printed news reports. The Detroit News, MLive, WLNS Lansing, and FOX 47 were but a few of

Joe Ross was contacted by news media for three weeks straight, interviewing with broadcast and print media about the propane issue in Michigan. He had conducted 120 back-to-back live interviews throughout February and March. Joe Ross, MPGA staff

Michigan Propane Gas Association 22 www.UseMichiganPropane.com listings by county. This simplified the process for customers to find their heating assistance faster and easier.

The usefulness of HeatingMyHome was a triple header: 1) Customers were given a convenient, easy-to-use tool to help them find the assistance they needed in order to keep their heat on;

2) The media were able to get a better handle on the Michigan propane situation; and

3) The propane industry demonstrated genuine concern for their customers and was thus perceived as unlikely perpetrators of price gouging.

News media outlets responded positively to the website, and was featured in numerous news stories throughout the heating season. the statewide news organizations that ran propane-related Now that the 2013-14 winter heating season has finally stories. The MPGA also created HeatingMyHome.org, a ended, an investigation of potential price gouging by customer-friendly website, to provide heating assistance the state Attorney General’s office is underway. The AG’s information. Prior to HeatingMyHome, customers had to received over 700 complaints from propane customers, find heating assistance by searching individual organizations and he is required by law to investigate each and every in their area. one of them. The results of the investigation have not yet HeatingMyHome compiled information on all the been concluded. So stay tuned to the Propane Journal for organizations that offer heating assistance and organized the updates.

Derek Dalling was hit with over 150 emails and nearly 100 phone calls as the weather dipped into single digit temperatures. He was interviewed by the media, sympathetic at first with a focus on easing panic and providing information. However, it quickly turned to allegations of price gouging.

“The reporting definitely got more negative, with some stories about $3000 propane bills,” says Dalling.

The MPGA remained in close contact with Gov. Rick Snyder’s office, as well as with the Farm Bureau, the Public Service Commission, and with other state propane associations in the region via conference call in Derek Dalling, MPGA order to formulate a coordinated Midwest response. Executive Director

Michigan Propane Gas Association 23 www.UseMichiganPropane.com To join the MPGA PERN team or for more information, contact Marv Ockerman, PERN Chairman, at [email protected]

Michigan Propane Gas Association 24 www.UseMichiganPropane.com T:7.5” T:10”

A PARTNERSHIP FOCUSED ON HELPING YOU AVOID COLD SUPPERS.

At CHS, we see our business as an extension of yours. With a national network of resources, our trusted and knowledgeable account managers are here to help you monitor markets and plan supply. It’s a partnership backed by a combination of dependable supply chains and our Propane Control Room.SM ® Let us help guide you through uncertainty and back to the dinner table, where you belong. To learn how we can navigate the market better together, contact Eric Brandt at 866-839-7145, [email protected]; Craig White at 701-934-5032, [email protected]; or Lance Prouty at 800-853-8350, [email protected].

Bleed: None Date: 5-9-2014 5:20 PM Proof #: JOB #: 53233-2 Print Scale: None Cyan GCD: Dustin Black CLIENT CODE: CHST03 Version: None Trim: 7.5” x 10” Magenta User Name: Nielsen, Kara CLIENT: CHS Live: None Yellow Previous User: Anderson, Cynthia AD: Karl Madcharo 4 Gutter: None Black InDesign Version: InDesign CS6 CW: Curtis Peterschmidt Description: CHS Partnership Ad Page #: Fold Type: None Notes: None AE: Carbone/Kuznia Publication: Michigan PGA Document Name: 53233-2_CHS_2014_AD_Partner- PM: John Zegoski 1 ship_MIpga_7.5x10_4C_v4.indd TEAM / APPROVE PA: Kara Nielsen Propane Retailers Fight for the Fate of Michigan’s Propane Industry at the Capitol MPGA Testifies Against Natural Gas Expansion

Michigan Propane Gas Association 26 www.UseMichiganPropane.com Michigan propane marketers have a chance right now to prevent the natural gas legislation from passing. This expansion legislation has already passed in 14 other states. Don’t let it happen in Michigan. —Dave Long, MPGA Legislative Co-Chairman

““We oppose any and all subsidized expansion of natural gas. This legislation could negatively impact our industry, our businesses, and the jobs of our employees more than any other legislation the MPGA has ever faced before.”—Wayne Kohley, MPGA Legislative Affairs Chairman

Continued on pages 40

Michigan Propane Gas Association 27 www.UseMichiganPropane.com Michigan Propane Gas Association 28 www.UseMichiganPropane.com What could be etter?

Okay, sure – winning the lottery would probably be better. So would not having Coverages we provide: to deal with insurance at all! But since you didn't pick the winning numbers in last week's drawing, you're likely to need to keep running that company. And BUSINESS COVERAGE that means dealing with insurance – for your business, for your employees, for commercial property • business auto your future and your health. Not to mention your peace of mind. commercial liability • worker's compensation The good news is, insurance doesn't have to be painful! And we're putting fleet insurance • umbrella lliability our money where our mouth is by offering you a FREE insurance audit to prove it. It's designed to help you see where your coverages may be out of date (yes, BUSINESS INSURANCE & we'd rather be golfing, too) and where your business may be vulnerable. It's also EMPLOYEE BENEFITS designed to show you where your coverages are strong ... possibly too strong! ... group health • business owner as well as where it could be improved (is it lunch time yet?). planning • group life • group disability group dental • health savings accounts Section 125-cafeteria plans self-insured health programs health reimbursement arrangements

ut seriously ... BUSINESS & GROUP PRODUCTS group voluntary long term care benefits We take your business' insurance needs as seriously as you do. Which is why executive carve-out long term insurance the Michigan Propane Gas Association picked us as the one insurance company retiree Medicare supplement to earn your board's endorsement (our sense of humor had nothing to do with group/individual voluntary employee benefits it). And because your business is a member of the association, you can enjoy exclusive benefits offered only to MPGA members. Including custom coverages, PERSONAL COVERAGE favorable pricing, and priority service when you call. homeowners • automobile • renters • boats Plus, because we at Beckwith Financial Group have long-term relationships umbrella liability • motorcycles with a wide variety of providers, we can shop your coverages for you – so you always get the best deal. In fact, we've been helping businesses like yours save INDIVIDUAL INSURANCE money on custom coverages for over 25 years. And have earned the reputation health • life • disability • long term care of trusted advisors throughout the state. annuities For more information – and to participate in your free, no-obligation insurance audit, log on to the Michigan Propane Gas Association's web site and follow the quick INDIVIDUAL SENIOR link to receive information via e-mail. Or log on to directly to www.beckwithgroup. INSURANCE PRODUCTS com and click the "request a quote" button for the type of insurance you're interested long term care • Medicare supplement in. Or speak directly to one of our advisors by calling 1-800-237-5504. We're ready to long term care partnership programs help you take the worry out of your insurance world – so you can get back to the life with long term care riders real world. Now wouldn't that make you happy? final expense • dental

Don't worry. happy.

BECKWITH FINANCIAL GROUP, INC. • www.beckwithgroup.com • 1-800-237-5504 MPGA Report Show Downside of Nat Gas Infrastructure Build-Out into State Rural Areas Report Shows Downside of Expansion

“State government should not pick energy winners and losers by taxing or subsidizing one over the other…” Propane Impact Report

How will the Proposed Natural Gas Expansion —MPGA Report and Subsidization affect the Michigan Propane Industry?

atural gas proponents want to build-out infrastructure to rural Michigan and their efforts are supported by a 2012 report Nissued by the Michigan House of Representatives Subcommittee on Natural Gas. According to that report, natural gas expansion will benefit rural home dwellers and farmers. Others disagree.

In response to the Subcommittee report, the MPGA has released its own report that discusses the negative impact of his proposed natural gas expansion to rural

Michigan.

1 Written by Tom Jaenicke of ATomiK Creative Solutions, LLC, the MPGA report concluded that the proposed subsidies for the expansion of natural gas infrastructure are unfair to the propane industry and to current natural gas customers. The proposed subsidies would be paid by current natural gas customers or state taxpayers.

“Charging the new natural gas customers below incremental costs essentially increases rates for existing customers without their benefit,” he wrote in the study. “Creating unfair competition is not smart or good public policy.”

Continued on pages 32

Michigan Propane Gas Association 30 www.UseMichiganPropane.com

Rather than investing in infrastructure expansion and energy switching, Michigan’s investment capital can be used much more wisely by investing in the reduction of consumer energy costs and environmental improvement. Subsidizing the costly expansion of natural gas infrastructure to low population areas in the state by levying a “fee” or “tax” on individual ratepayers benefits large utilities and their shareholders who don’t need or deserve corporate welfare.

State government should not pick energy winners and losers by taxing or subsidizing one over the other without the prospect of actually saving energy or improving the environment. Michigan residents would be better served with a range of energy options to choose from in the marketplace, depending on where they live and work.

Propane is a critical part of the state’s energy portfolio and state government should avoid and reject any energy plans that represent unfair competition to any single industry. MPGA should work diligently with the Governor’s office, state legislature, and the MPSC to preserve and protect a wise, fair, and competitive energy landscape in Michigan.

SUMMONS District Court Judicial District State

County Court File Number: 1234567890 Negligence Case Type: Negligence Employee, Plaintiff, Summons

vs. Your Company, Defendant.

. BUSINESS OWNER THIS SUMMONS IS DIRECTED TO THE BUSINESS OWNER . The Plaintiff has alleged that she was harassed in the 1. YOU ARE BEING SUED

workplace. Pl aintiff's Complaint against you is attached to this summons. . You Do not throw these They are official papers that affect your rights. You must respond to this lawsuit even though it may not yet be filed with the Court and there may be no court file number on this called summons. an Answer a written response Who’s Keeping You2. YOU MUST Out REPLY of WITHIN Court? 20 DAYS TO PROTECT YOUR RIGHTS must give or mail to the person who signed this summons Every employer, no matter withinwhat 20** size, days hasof the to date deal on which with you human received thisresource Summons. issues,You must send a copy of . regulations, and employmentyour lawAnswer changes. to the person whoContact signed this your summons local located marketing at: ______. The Answer is your written response representative to learn how you can gain complimentary, unlimited access to 3. YOU MUST RESPOND TO EACH CLAIM. independent employment lawto the attorneys Plaintiff's Complaint. who provide In your Answer state-specific you must state whether legal you advice agree or disagree with on your employment-relatedeach questions. paragraph of the Complaint. If you believe the Plaintiff should not be given everything asked for in the Complaint, you must say so in your Answer. Visit www.federatedinsurance.com to find a representative near you. 4. YOU WILL LOSE YOUR CASE IF YOU DO NOT SEND A WRITTEN Federated Mutual Insurance Company • FederatedRESPONSE Service TO InsuranceTHE COMPLAINT Company* • FederatedTO THE Life PERSON Insurance WHO Company SIGNED THIS If you do not Answer within 20 days, you will lose this case. You will not get to Owatonna, Minnesota 55060 • Phone: (507)SUMMONS. 455-5200 • www.federatedinsurance.com *Not licensed in the states of NH, NJ, RI, and VT. ©tell 2014 your Federated side Mutualof the Insurance story, andCompany the Court may decide against you and award the Plaintiff everything asked for in the complaint. If you do not want to contest the claims stated in the complaint, you do not need to respond. A default judgment can then be entered against you for the relief requested in the complaint. Michigan Propane Gas Association 32 www.UseMichiganPropane.com HOT TOPIC ON CAPITAL LAWN —HB 5555

PGA members met with as many legislators as possible on the 2014 Propane Safety Awareness Day held on May 28th. The reason—HB 5555!! M “With the introduction of natural gas infrastructure legislation, it was critical that I be at the event,” says Wayne Kohley. “I’m fighting this legislation. It’s got to be stopped.”

According to Derek Dalling, MPGA Executive Director, attendance doubled this year.

“The industry is confronted with legislation that would undermine, and actually decimate, our industry,” said Dalling. “We needed as many members here today as possible to educate their legislators about our unequivocal opposition.”

This anti-competitive natural gas legislation will cause huge losses of propane customers and affect Michigan propane businesses more negatively than any issue the MPGA has ever faced.

Continued on pages 35

Michigan Propane Gas Association 33 www.UseMichiganPropane.com IMPROVE YOUR KNOWLEDGE. IMPROVE YOUR HOMES.

Whole-home performance starts with training. Your customers rely on your expertise and knowledge when they’re choosing energy-saving upgrades for their homes. Take the guesswork out of the process and expand your knowledge with free NAHB-, AIA-, NARI-, and USGBC-approved training courses from the Propane Training Academy. Residential Energy Performance Upgrades: An Energy, Economic, and Environmental Analysis examines the findings from a recent energy-efficiency study that shows careful selection of propane appliances can cut home energy costs and reduce carbon emissions—so you’ll be ready to help your clients make the right choice. See a full list of courses and begin your training at propanetrainingacademy.com.

Scan this code to connect to training Michigan Propane Gas Association 34 www.UseMichiganPropane.comand home energy comparisons.

246-242_House_Ad_8.5x10.5.indd 1 9/14/12 2:17 PM Continued on pages 36

Michigan Propane Gas Association 35 www.UseMichiganPropane.com Michigan Propane Gas Association 36 www.UseMichiganPropane.com Propane AutoGas Dispensing Systems Featuring Atlas® / Gasboy® Fleet & Retail Dispensers

Many options available including: Foundation options Dispenser options Tank options Components packages

Call us today for the package to meet your specifications!

(800) 621-4137 FAX (810) 266-5554 Our own fleet of sales vehicles are now PROPANE POWERED!

www.ipsequipment.com

Michigan Propane Gas Association 37 www.UseMichiganPropane.com Michigan Students Selected for National Propane Scholarships

Mark and Beth Pennington Scholarship

Sarah Mulkey graduated form Davison High School in Davison, MI. In the fall she plans to attend Michigan State University to major in Criminal Justine. She has been on the High Honor Roll for all four years of high school, graduating sixth in her class. Carolyn Mulkey is an office administrator for Parker’s Propane in Flint, MI.

Maurice Deal

Hannah Sergent is a graduate of Millington High School. She will be attending Valparaiso University in the fall to earn a Bachelors of Science in Nursing. Her goal is to work in a hospital as a nurse attending to pediatric patients. Hannah is the daughter of Timothy and Heather Sergent. Timothy is a driver for Parker’s Propane Gas Company in Flint, MI.

CHS Foundation

Haley Tolitsky is a graduate of Almont High School. She will be attending Grand Valley State University’s Honors College this fall, majoring in business finance and minoring in Spanish and tourism/ hospitality management. Her dream is to own a resort in a tropical location. Her father Joseph Tolitsky works at Suburban Propane in Oxford, MI.

Discover the “Tank Truck Service Advantage” - in business since 1948

H H 3 LOCATIONS TO SERVE YOU Warren 800-482-2678 Gaylord 888-482-2678 Portage 877-752-5150 Call Mark Langworthy, Sales Manager 800-261-9009 Visit us at www.tanktruckservice.com

Michigan Propane Gas Association 38 www.UseMichiganPropane.com In Bipartisan Compromise Michigan Raises Minimum Wage Governor Rick Snyder

he Republican-controlled Legislature voted May 27 to Republicans fear raising the minimum wage to $10.10 per hour raise Michigan’s minimum wage from $7.40 per hour would result in the demise of countless small businesses. They to $9.25 per hour. The current minimum wage was set viewed the $9.25 measure as a compromise and the lesser-of-two- Tin 2008. evils. The House voted 76-34 and the Senate 24-12 in favor of the bill. Not all Democrats support the new law. Some said they refrained from supporting the bill because it would silence the voice of Michigan is the first state with a Republican-dominated Michigan voters who had signed Raise Michigan’s petitions to Legislature to raise the minimum wage. Is our state an example of increase the minimum wage to $10.10. successful bipartisanship? Gov. Snyder has not responded to Democrats’ accusations of Many Democrats view the passage of the law as a win. The battle silencing Michigan voters. In an Associated Press interview, to raise the minimum wage in Michigan has gone on for Snyder said, “We’ll just have to see how that process flows.” months—Democratic gubernatorial candidate Mark Schauer made a similar proposal last November. It has not yet been determined whether the new law will keep the $10.10 measure off the November ballot. The coalition still Many Republicans supported the raise because they felt caught intends to submit its petitions. between the proverbial rock and hard place. Michigan is in uncharted territory. A Legislature has never The law was enacted just one day before the Raise Michigan repealed a law about which citizens are petitioning, which means Coalition planned to submit 300,000 signatures in support of the issue could end up in the courts. voter-initiated legislation to increase the current minimum wage to $10.10 per hour.

The raise will be gradual, occurring in four stages:

• $8.15 per hour in September • $8.50 at the start of the new year

• $8.90 in 2017 • $9.25 in 2018

Michigan Propane Gas Association 39 www.UseMichiganPropane.com Fight continued

The threat of natural gas expansion has long been on MPGA’s investments; a proposed recovery mechanism allowing natural radar screen but it became clearly visible to all at the House gas utilities to charge all of their existing customers to pay for Energy and Technology Committee meeting on May 20. And the the infrastructure expansion; expected costs and benefits; and a MPGA’s Governmental Affairs team was there to testify. MPGA’s projection of investment to support the expansion for up to five Wayne Kohley and David Long delivered strong testimony years. The bill would also require the MPSC to hold a contested opposing HB 5555. Natural gas company representatives also hearing to evaluate the prudence of a plan within 180 days after testified. filing. The MPSC would then approve, disapprove, or amend the utility’s plan. Once approved, the utility would be required to file “We oppose any and all subsides of the expansion of natural gas,” an annual report on its infrastructure expansion. said Wayne Kohley. He also emphasized the negative impact that the legislation would have on the industry, decimating small businesses and the jobs they provide.

HB 5555, sponsored by the House Energy committee chair Rep. “If the natural gas expansion legislation is Aric Nesbitt (R-Lawton), would allow a natural gas utility to file passed, the impact to the propane industry will be an Infrastructure Expansion Investment Plan with the Michigan devastating. Now is the time for all members to Public Service Commission (MPSC) for the construction of infrastructure to underserved or unserved areas. Underserved and contact their legislators and voice their opposition unserved areas, as defined by the bill, are essentially any area in to HB 5555.” —Dave Long, MPGA Legislative the state where a natural gas line does not currently exist. Affairs Vice-Chairman Infrastructure Expansion Investment Plans would be required to include a one-year projection of infrastructure expansion Continued on pages 44

Meets the NFPA 58-11-1 dielectric requirement

Jomar Valve・ 7243 Miller Drive, Warren, MI 48092・ www.jomarvalve.com・ phone: 1-800-325-5690・ fax: 1-800-628-4194

Michigan Propane Gas Association 40 www.UseMichiganPropane.com MPGA Scholarship Winners Announced

he Michigan Propane Gas Association awards two scholarships in honor of William B. McHenry every year. The $2,500 awards go to students with ties to the association to help them pursue their higher education dreams. McHenry was known for his passion and advancing safety and training programs in the propane industry. T Hunter Dubay and Anastatia Dykstra were awarded this year’s scholarships. Hunter Dubay is a senior out of St. Clair, Michigan who will attend Central Michigan University this fall to study international business with a minor in French and Information Systems.

While living in France and attending high school there his senior year without family or friends nearby, he learned a lot about independence. This life-changing experience as a youth ambassador for the Rotary International Exchange helped guide him in choosing his college career path.

His independence and strong work ethic go back to early adolescence. When most 12 year olds are running around outside getting their knees dirty, Dubay was running around delivering papers. While the other kids were playing video games and hanging out, he was mowing lawns or working on merit badges for the Cub Scouts and then the Boy Scouts.

He would like to extend his gratitude to the MPGA for its generous support of a Hunter Dubay scholarship.

Hunter is the son of Ken Dubay, an active association member who sits on the MPGA PERC Board and is employed with Bergquist, Inc.

Anastatia Dykstra has been an honors student throughout her schooling.

She is completing her first year at Grand Valley State University (GVSU) where she was accepted into the Frederick Meijer Honors College and Seymour and Ester Padnos College of Engineering and Computing. She will graduate with a Bachelor’s of Science in Electrical Engineering. This summer she will complete an internship with the Gifted High School Program and return to GVSU this fall as a sophomore.

She is a graduate of Comstock Park High School where she had the fifth highest grade point in her class, and competed in the Science Olympiad, ran track, played in the school’s concert, and was a color guard for the marching band. She also competed in FIRST Robotics as a junior and then took the Mechatronics course at the Kent Career Technical Center. She won a science department award and volunteered over 500 hours. After graduation, she obtained an internship with the test lab at Grand Haven Stamped Products.

Born in Grand Rapids, Mich., she has two older brothers and a younger sister. She attended Walker Charter Academy through middle school, and participated in the Anastatia Dykstra Odyssey of the Mind, band, and school musicals. She also volunteered for the kids’ ministries at Mars Hill Bible Church.

Anastatia thanks the MPGA for selecting her as a recipient.

Michigan Propane Gas Association 41 www.UseMichiganPropane.com Michigan Marketers Future Proof Your Propane Customers

Educate them about your budget plans available now.

And next winter if they need help paying bills refer them to: HeatingMyHome.org

Michigan Propane Gas Association 42 www.UseMichiganPropane.com FEATURED MARKETER: Dependable LP Gas Company An Aptly Named Company

t all started with Skel Gas of Duluth, Minnesota in 1961. Lester DeGrote got his first propane industry Ijob as sales manager, and then went on to manage at several other locations across the United States.

He eventually settled in Lowell, Michigan with North Propane Gas Company. A few years after arriving in Lowell, he purchased the old City Service underground facility that had been out of use. With that purchase, he started Dependable LP Gas Company with his son, Dean. His youngest son, Chris, even worked in the business during summers while still in high school.

Dependable LP Gas Company acquired All Star Propane in 1998 and expanded into the Newaygo area. The company also added a satellite plant in 2006 to meet growing demand.

Dependable LP Gas Company believes their long-time customers stick with them because of the company’s outstanding service. The company strives to hire qualified employees and treats them like family, not just company employees. Dependable employees provide that same kindness to their customers.

As a small independent company, it is critical to impress both their employees and their customers through their interactions with them. They keep their delivery schedule flexible so they can make emergency runs when necessary. By delivering propane on time, their customers know they can rely on the company. These things are all important because of Dependable LP Gas Company’s philosophy of business.

Based on their successful business platform in Lowell, Dependable LP has expanded in to Kent, Barry, Montcalm, Ionia, Newaygo, and Allegan counties – reaching most of West Michigan with their outstanding customer service.

A 24/7 emergency service is also there to help customers who suddenly run out of fuel. To avoid these types of emergencies, customers can set up an automatic refill system rather than a will-call system. Customers can also set up a budget plan to ensure they have their propane without breaking the bank.

When Dependable LP becomes your propane company, free installation of equipment is available. Dependable also does routine safety checks for their customers’ peace of mind. And best of all, they have a page on their website for easy scheduling. Aptly named—they are Dependable LP Gas.

Michigan Propane Gas Association 43 www.UseMichiganPropane.com Fight continued

In short, the bill allows the expansion of natural gas to 4) If you are a member of the Michigan Petroleum areas in Michigan where propane is currently used. And Association (MPA), Small Business Association it allows natural gas utilities to have all of their expansion of Michigan (SBAM), National Federation of costs subsidized by their existing customers. Independent Businesses (NFIB), or the Michigan Manufacturers Association (MMA), please contact HB 5555 is the result of an energy and job creation them and encourage them to join the MPGA in report submitted by a Michigan House of Representatives opposing this legislation. subcommittee to the Governor in 2012. The energy report outlined recommendations for the future development, This fight is more important and far tougher than any storage, and use of natural gas in Michigan. Chairman previous legislative battle. The stakes couldn’t be higher. Nesbitt commented during the hearing that HB 5555 The MPGA needs the entire industry to fight this battle appears to provide subsidies to utilities. against large, powerful, and well-funded corporate monopolies that are our state’s natural gas utilities. This The MPGA is also building a coalition that opposes this unfair legislation to expand the natural gas infrastructure misguided and unfair legislation. threatens each and every propane job in Michigan. All Hands on Deck—Member Companies and All Member Employees

1) Call and Write your state legislators TODAY where you live, where your employees live, and in areas you service to let them know how bad this legislation is for you, your employees, and your business. Ask him/her to oppose HB 5555 because it promotes unfair competition with its corporate welfare that is anti-small business. Feel free to use the attached script and talking points available on the MPGA website. Click on “About MPGA,” then select “Legislative Information.” These tools are already created for you!

2) Contribute to the Michigan Propane PAC and/or MPGA Advocacy Fund. You can make contributions online. UseMichiganPropane. com, Click “MPGA PAC.”

3) Attend the 2014 MPGA Annual Summer Convention, July 23–25. Participate in the discussions on how the MPGA is working to oppose and prevent the expansion of the natural gas infrastructure in the state. Learn the important reasons for opposing this legislation. Learn why and how to communicate with customers and legislators. The Board of Directors and Membership Meetings are great venues to learn

about our industry. Wayne Kohley and Dave Long had just finished their testimony at the committee hearing. MPGA President Kim Godlewski was in attendance to support their efforts.

Michigan Propane Gas Association 44 www.UseMichiganPropane.com Looking to Michigan Winter 2014-15: Will it be Warmer than Usual?

cientists Suggest Temperatures Might be Higher Than NOAA has not yet confirmed the certain return of El Niño, but Normal Next Winter researchers say a more certain prediction can be made in June.

Last winter season was a virtual time warp for many; it How Will El Niño Affect the Propane Industry? Stook many back to the days before electric power. Days without power turned into weeks. Record-setting cold El Niño typically peaks in late December, which, for the temperatures drove on relentlessly and seemingly unendingly. It Midwest, means warmer winter temperatures and lower heating was a traumatic time. costs. Michiganians who depend on propane for heating their homes won’t be faced, then, with the same brutally-cold What can Michiganians expect next winter? Scientific predictions temperatures experienced this last winter. And propane demand, are split, but hopes are united: Michigan wants a warmer winter. then, won’t be as high. Changes in Pacific Wind Patterns Could Mean a El Niño is Not a Done Deal Warmer Winter in Midwest Not all meteorologists, however, predict a warmer-than-usual In April 2014, the National Oceanic and Atmospheric 2014-2015 winter. A meteorologist at WQAD 8 in Illinois, Terry Administration (NOAA) Climate Prediction Center announced Swails, believes the cold temperatures will return next winter in its determination of a greater than 50 percent chance El Niño will spite of El Niño. return this winter. If El Niño does return, Michiganians can Swails pointed out that in 2008, the Pacific Decadal Oscillation expect warmer winter temperatures in the 2014-2015 heating (PDO) switched to a cold stage, which results in colder Midwest season. winters and weaker El Niños. Typically, PDO stages last 20-30 Under standard climate conditions, winds gather warm water in years, which would mean a cold upcoming winter for Michigan. the Pacific Ocean as they move westward. The result of this wind Michiganians can of course attest to the highly unpredictable pattern is cooler temperatures in the east and warmer in the west nature of weather in the Great Lakes State. So we should prepare of the U.S. But when too much warm water, the trade winds for a cold winter, whether or not El Niño shows up. shift, or can even reverse direction entirely. This phenomenon is known as “El Niño.” It typically occurs every two to seven years, and is responsible for warmer-than-usual winter temperatures across the globe.

Michigan Propane Gas Association 45 www.UseMichiganPropane.com FEATURED SUPPLIER: SMITH GAS LIQUIDS COMPANY

A “Sure Thing” Wholesale Propane Provider

n October 1983, Tom Smith started a new company with the goal of changing the wholesale propane market. Many suppliers back then left the responsibility of getting the propane trucked from Ithe terminal to the customer. Many times retailers needed to schedule propane requirements a month in advance, and pricing information was often not sent until after delivery. Tom wanted something very different. His vision was to provide up-front pricing and reliable next-day delivery service with the customer making a single phone call. Smith Gas Liquids Company was born.

Steve Van Heck, the current owner, started just after the company emerged from Tom’s basement in 1985. He took over from Tom in 1999. Mike Myszka joined the Smith Building team in 1992, and was followed in 2007 by Denise St. Louis. Melissa Kooyers rounds out the staff and takes care of the back office.

The business has continued to grow, thanks to a sales staff following the business principles Tom put in place when he started. The company expanded its service area to Pennsylvania in 2010. Growth didn’t stop. The company’s service area now extends from the Midwest to most of the Northeastern United States.

Smith Gas Liquids is a multi-state, “wholesale-only” propane company. So the company’s customers need not be concerned with the possibility of competing with any supplier-owned retail plants. And when supply is limited and allocated like last winter, the customers committed to Smith Gas Liquids know that supply is dedicated to keeping them in business.

Diverse supply is the gift that keeps on giving. The company’s diverse supply chain ensures that propane is there when customers need it. It evens out pricing peaks and provides consistently competitive pricing for customers. Each year supply orders are aggregated in order to procure large supply contracts with the most reliable supply points in each service region.

“Losing customers because your propane tank is empty can wipe out much more than the savings from the purchase of a few cheap loads of propane,” said current owner Steve Van Heck.

During last winter’s supply crisis, customers with supply volumes dedicated to Smith Gas Liquids never ran out of propane. The company has never gone to Conway, Kansas; Mt. Belvieu, Texas; or some other far-flung place for its product supply. Instead, supply was well-planned and locally-sourced for the entire season. The company’s long track record of always having local supply during years of supply shortages is a point of pride with the experienced sales staff.

“Propane retailers should consider partnering with a wholesaler they can trust to help put a yearly supply plan together,” Van Heck emphasized. “The propane supply market has changed a lot over the past three to four years. And retailers need to keep up with the changes.” Continued on pages 47

Michigan Propane Gas Association 46 www.UseMichiganPropane.com FEATURED SUPPLIER: SMITH GAS LIQUIDS COMPANY

More propane now is piped in or railed in from supply points during high demand periods than a few years ago. Major producers no longer store propane for the benefit of retailers. Instead, propane flows to areas with the greatest dollar returns in either the U.S. or offshore. Successful retailers, then, need better supply planning and retail sales programs.

Retailers need marketing programs that sell customers some type of ‘keep-full’ program: whether it’s budget, fixed-price, or price-cap. The goal is to avoid “will call” customers. These are the customers who call when weather conditions are most severe and/or their tanks are nearly empty. Retailers get run ragged trying to keep up. And to make matters worse, the only available propane is often expensive because the retailer needs supply that is over and above a normal supply ratio with local supply terminals.

Smith Gas Liquids has been an innovator for over 30 years. It was among the first wholesalers to utilize networked computers to arm their sales team with the most up-to-date information. The company’s proprietary marketing software enables its sales team to forecast future market changes and grab favorable opportunities for its customers.

It builds exceptionally strong customer relationships based on price-competitiveness and no supply disruptions. Smith Gas Liquids Company can put a propane supply plan in place for your operation that will give you peace of mind.

Go to www.smithgas.com or call (616) 786-0001 for more information. (L to R) Denise St. Louis, Steve Van Heck, Melissa Kooyers and Mike Myszka

Michigan Propane Gas Association 47 www.UseMichiganPropane.com Power. Performance. Think Propane.

Propane Autogas Delivers Propane autogas delivers high-octane power yet fewer greenhouse gas emissions than gasoline and considerably less nitrogen oxide and particulate pollution than diesel.

Learn more at www.autogasusa.org

Michigan Propane Gas Association 48 www.UseMichiganPropane.com What’s New! Van Dyke Gas Company Fuels New Propane- Powered

Tom Carbary of Van Dyke Gas Company fuels new propane-powered school bus. Patti School Buses Brohl, Director of Transportation for New Haven Community Schools, has already added more buses to the fleet.

ew Haven Community Schools discovered the Tom Carbary, the operations manager at Van Dyke Gas in propane advantage—propane buses, that is. Center Line, was there from day one of the conversion.

Patti Brohl, the New Haven Director of “We look out for each other in our community,” said Carbary. N Transportation, was faced with an aging fleet of “Propane-powered buses are helping New Haven meet their diesel buses at the start of the 2013 school year. She had heard of energy goals. Their goal is my goal. I’m here to keep the system propane-fueled buses but didn’t know anything about them. running as smoothly and efficiently as possible.”

“I was a little nervous at first,” says Brohl. “I mean, they run on New Haven purchased two propane-powered buses late last year propane. I’m not used to that. I’m used to diesel.” and then added two more at Christmas. The results were immediately obvious. To know and believe in the technology, she needed to see it for herself. So she organized a “test drive” as well as scouting out her “The propane buses were superior to diesel on those sub-zero local propane companies. days. They started right up and didn’t need a warm-up or cool-down. And were quiet,” according to Brohl. “I made lots of phone calls but no one would return my calls,” Brohl said. “But Van Dyke Gas Company not only returned my Although propane-powered buses cost about $10,000 more than call, they wanted to be a part of our ‘green’ efforts. That was diesel-powered buses, propane costs about one-third the cost of huge.” diesel. The school will recoup the additional cost of the bus purchase in about a year and a half of service from the fuel cost “Van Dyke is a super-conscientious company,” said Brohl. savings. “When we took a propane bus for a test run, they were right there with us and helped us fill it with fuel. I knew right away New Haven is the first school district in Macomb County with they were the perfect fit for us.” propane-powered buses in its fleet. New Haven expects to expand its fleet to eight by the start of the school year this fall. Lisa Phillips, President of Van Dyke Gas Company, was eager for her company to get involved in the community. Propane-fueled buses are a great way to help save money and the environment. But New Haven students are the main focus. “We’re really honored to be a part of the school district’s green initiative,” said Phillips. “All the money that went to bus fuel will now go to the kids’ education,” Brohl said. “That’s where it should go.”

Continued on pages 50

Michigan Propane Gas Association 49 www.UseMichiganPropane.com Brutal Winter No Deterrent to Diehard Snowmobilers

he brutal cold didn’t stop the MPGA member snowmobilers’ annual PAC Snowmobile Ride on February 22. Seven riders drove 180 miles despite sub-zero temperatures. They started from Seney, rode north to Grand Marais for lunch, and then to the Bear Trap (L to R) Dave Hausbeck, Mike VanDenBoom, Kris Bowman, Joe Volk, Kathe Biggs and Dave Biggs. Tclose to Pictured Rocks National Lakeshore for a break along Lake Superior.

The PAC committee wants to thank the sponsors of the event including IPS Equipment, Bowman Gas, and Signature Truck Systems.

Calendar Index to Advertisers 2 Signature Truck Systems October 8-9 Board of Directors & 6 MPGA CETP Education Membership Meeting 7 NPGA Women in Propane Business Council Bavarian Inn 11 Growmark Energy Frankenmuth, Mich. 12 MPGA Propane Emergency Training 13 Bergquist 14 Arrow Tank and Engineering Co. 16 UHY, LLP, Certified Public Accountants 17 Dave Hausbeck Trucking 19 PR Risk Management Insurance Services, Ltd. 21 Gas Equipment Co., Inc. 24 MPGA Propane Emergency Response Network (PERN) 25 CHS 28 MPGA PAC Contribution Form 29 Beckwith Financial Group, Inc. 30 Marshall Excelsior Gas Connections 32 Federated Insurance 34 MPGA Marketing 37 IPS Equipment Inc. 38 Tank Truck Service & Sales, Inc. 39 Rasmussen Trucking, Inc. 40 Jomar Valve 42 MPGA Safe Handling of Propane (SHOP) 48 MPGA Alternative Fuels 50 Keystone 51 Johnstone Supply–Empire 52 Smith Gas Liquids Company

Michigan Propane Gas Association 50 www.UseMichiganPropane.com Index to Advertisers

Michigan Propane Gas Association 51 www.UseMichiganPropane.com PRSRT STD U.S. POSTAGE PAID LANSING MI 1000 West St. Joseph Hwy. PERMIT #515 Suite 200 Lansing, MI 48915

Your Sure and Dependable Wholesale Propane Supply.

800-543-9110 [email protected] www.smithgas.com

Connect with us online for the latest in propane pricing, availability and MORE.