An Industry Service of The Michigan Propane Gas Association

Winter | 2015

An Indust ry Service o f Th e M ich iga n Pro pa n e G a s Ass o c i at i o n

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MPGA MISSION STATEMENT To advance safety by working for a favorable environment for propane distribution and marketing, to increase its application by demonstrating propane’s value as a clean, reliable, efficient energy source. MPGA Office: 1000 West St. Joseph Hwy. Suite 200 Lansing, MI 48915 Telephone: (517) 487-2021 Fax: (517) 485-9408 Michigan Propane Gas Association www.UseMichiganPropane.com Propane Journal Committee: Dave Biggs, IPS Equipment, Inc. Rob Vandemark, Industrial Propane Service, Inc. David Lowe, Pro Image Communications Tom Jaenicke, ATomiK Creative Solutions, Consultant MPGA Management and Legislation Consultants: Kindsvatter, Dalling & Associates, Inc. 1000 West St. Joseph Hwy. Suite 200 Lansing, MI 48915 Derek Dalling Christian H. Kindsvatter Jason Wadaga Matthew Solak Denise Stone Sara McCallum Alicia Vazquez 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 not necessarily reflect the view or position of the Michigan Propane Gas Association (MPGA). MPGA’s position on key issues will be clearly stated. Manuscripts are accepted at the approval of MPGA who reserves the right to reject or edit. The Propane Journal does not constitute endorsement of the advertiser, its products or services nor does the Propane Journal make 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. Advertising rates and other information available upon request.

Table of Contents 4

2016 MPGA Board of Directors

5

Message From The President—Blaine Cronn

6

MPGA PAC Contribution Form

7

Final Show for Midwest Propane Convention

8

New CDL Rules Affect Propane Marketers

11

Propane Fest Scholarship Golf Outing

14 New Agency Created to Re-Energize Michigan Energy Policy 16

Propane Tank Regulations

17

MPSC Explains Several Ways the State can Help Families This Winter

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Propane Fest Awards

20 Propane Fest Sponsors 24 Propane Fest Fun 26 Michigan’s Environmental Groups Concerned Over Energy Pipelines and Fracking 32 Enbridge Delivers for Michigan Residents and Businesses 33 Hydraulic Fracturing a Safe Technology 34 Natural Gas May Be Right for Now But Needs to be Done Right 37 Finally Michigan Has a Road Funding Package 39 Google Earth Outreach Teams with EDF Detecting Natural Gas Leaks Faster, Cheaper 41

Detroit Public Schools Embrace Propane

42 Members Giving to a Noble Cause 44 A Data Breach Can Make Fraud Your Problem Even if the Breach Isn’t 45 What’s New 50 Index to Advertisers / Calendar

MPGA’s Propane Journal is dedicated to providing education and safety articles for both propane consumers and marketers. The Propane Journal is supported in part through a state rebate granted from the National Propane Education Research Council. The Propane Journal is circulated to all marketers in Michigan and public interest groups across the state.

www.USEMICHIGANPROPANE.com

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2016 MPGA Board of Directors Officers

Marketing

Scott Overholt (2017)

President

Tri-Gas Distributing Co.

Blaine Cronn, Cronn Consulting, LLC

[email protected]

[email protected]

Mechanical Code

1st Vice President

David Long, Long’s Propane Gas, LLC

[email protected]

Scott Gabriel (2016)

[email protected]

Membership

Fick & Sons

2nd Vice President

[email protected]

Andrew VanderBoegh, Alto LP Gas

[email protected]

[email protected]

Michigan PERC

Dan Roberts (2017)

Treasurer

Stanford LP Gas

Chris DeGrote, Dependable LP Gas

[email protected]

[email protected]

Michigan Propane PAC

Secretary

Matt Parsch, Al Parsch Oil & Propane Co.

[email protected]

[email protected]

NFPA 58

Ferrellgas

NPGA Representative

[email protected]

Bruce Montroy, Bergquist, Inc.

[email protected]

[email protected]

Propane Emergency Training

Guy Bowman (2017)

Immediate Past President

Bowman Gas

Marv Ockerman, Stanford LP Gas

[email protected]

[email protected]

Propane Emergency Response Network

Executive Director

Blaine Cronn, Cronn Consulting, LLC

Jim Cross, Jr., Suburban Propane

Jeff Hynes, Kent Oil & Propane

Ken Dubay, Bergquist, Inc.

Kandy Scott, Liberty Propane

Jeremy Stanford, Stanford LP Gas

Brian Lincoln, Stanford LP Gas

[email protected] District IV

[email protected] District V Don Steckman (2016)

[email protected]

Marv Ockerman, Stanford LP Gas

Supplier

[email protected]

Don Montroy (2016)

Dalling & Associates

Safety & Compliance

Bergquist, Inc.

[email protected]

[email protected]

Derek Dalling, Kindsvatter,

Larry Otto, LDO & Associates Consulting, LLC

[email protected]

Active Past Presidents

Scholarship

Jim Zuck (2017)

(Not listed on this page)

Marshall Excelsior

Matt Parsch, Al Parsch Oil & Propane

Kris Bowman

[email protected]

David Montgomery

Transportation

[email protected]

Don Rittersdorf

Bob Vandemark

[email protected]

Michigan Propane Education Research Counsil Board

Tom Jaenicke

Weights & Measures

Officers

Tim Miller

President, Ken Dubay

Terry Rhoads

[email protected]

District Directors

Vice President, Don Rittersdorf

Duane Stanford

Committee Chairs

Mike VanDenBoom, Signature Truck Systems, Inc.

Rob Vandemark, Industrial Propane Service, Inc.

District I

Alternative Fuels

John Breithart (2016)

Crystal Flash Energy

Gary Shepherd, Stanford LP Gas

Bergquist, Inc.

Petersen Oil & Propane, Inc.

Secretary/Treasurer, Bruce Montroy

[email protected]

Scott Underwood (2017)

Immediate Past President, Marv Ockerman,

[email protected]

Alto LP Gas

Education

[email protected]

[email protected]

Bergquist, Inc.

Convention

Kim Godlewski, IPS Equipment

Stanford LP Directors

Tim Myers, IPS Equipment, Inc.

[email protected]

District II

Governmental Affairs

Troy Avery (2016)

Homeworks

Avery Oil & Propane

Tri-County Propane

David Lowe

Pro Image Communications

Duane Stanford

Standford LP Gas

Wayne Kohley, Excel Propane Co.

[email protected]

[email protected]

Homeland Security

Randy Halstead, Homeworks

Tri-County Propane

[email protected]

Mike George, Amerigas (2017)

[email protected] Industry Outreach

District III

Scott Fleetwood (2016)

[email protected]

Tri-Gas Distributing Co.

Long Range Planning

[email protected]

Dave Biggs, IPS Equipment, Inc.

Marv Ockerman, Standord LP Gas

NPGA District 6 Director

Tom Jaenicke

ATomiK Creative Solutions

[email protected]

[email protected]

4

Randy Halstead

MICHIGAN PROPANE GAS ASSOCIATION

MESSAGE FROM THE PRESIDENT

Facing Our Greatest

Challenge

A

s we head into winter here in Michigan, the propane industry shifts into high gear. Although life gets very busy and it is easy to become distracted, we cannot and should not forget

about our customers, companies, employees, co-workers, and our own

Blaine Cronn MPGA President

families that depend on us. We also should not forget about our Michigan Propane Gas Association. Our volunteers continue to work tirelessly on the opposition to the subsidized natural gas legislation. Those who were able to attend the summer convention heard first-hand the strategy and how it is working. We can be proud that Michigan is by far the most successful state opposing the powerful natural gas lobbyists. Recently, I saw for myself just what we are up against with the natural gas industry. An article detailing the strategy and resources of the utilities was shared with me. The researchers who authored the article did not find it coincidental at all that the utilities were able to

The Michigan Propane PAC is fighting for you, your company, your

spend a tremendous amount of money on campaign contributions to

employees and for

legislators. From a propane perspective, the article was eye-opening:

us all. Please help

The amount of money the utilities spend on their legislative issues

us support the

in one day is as much as the total MPGA budget for ALL of our association! In order for us to win this war, we need everyone to

Michigan Propane

contribute. Historically, it makes me very proud of just how well the

PAC. At this point,

people of MPGA have fought the good fights. Thank you. Now faced

we still have a

with our greatest challenge, it will take all of us to win.

choice. Let’s

We must continue to prioritize the Michigan Propane PAC. Our PAC volunteers take a lot of their own personal time to raise funds to help us fight the natural gas lobbyists and companies. The Michigan

choose to win.” —Blaine Cronn

Propane PAC is fighting for you, your company, your employees and for us all. Please help us support the Michigan Propane PAC. At this point, we still have a choice. Let’s choose to win. Thank you for the privilege of serving as your President, I wish you all a Merry Christmas and a prosperous New Year! n


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6


FINAL SHOW FOR

Midwest Propane Convention

T

he Midwest Propane Gas Association officially ended the Midwest Propane Gas Convention & Trade Show. This year’s May show was the last after a 20year presence. This announcement came after the NPGA Southeastern Convention & International Propane Expo decided to relocate from Atlanta, GA to Nashville, TN for its next two expos. The NPGA’s decision to move closer to the Midwest was problematic for the planning and attendance of the Midwest show. “We would have had difficulties finding a good time for the show with the Southeastern Convention so close in location and time to us,” Midwest Convention Board

Chairman David Lowe said. “For the board, it didn’t make economic sense to host a show that close to the Southeastern Convention, even if we found a date that didn’t conflict.” The convention has achieved many goals in its two-decade life span, including providing education, networking opportunities and revenue to Midwest Propane Gas Association owners. Derek Dalling, Executive Director of the Michigan Propane Gas Association, said the event has created more than $1 million in revenue, allowing $357,000 to go to the three owners from Kentucky, Michigan and Ohio. The Midwest Board would like to thank everyone who made the annual convention a success.

“Volunteer leaders in Kentucky, Michigan and Ohio all deserve credit for keeping the Midwest Convention such a successful event for so long,” Dalling said. “The volunteer leaders in Kentucky, Michigan, Ohio, Indiana, Illinois and Missouri who first envisioned [the event] also deserve a lot of gratitude for making the vision a reality.” n

Derek Dalling MPGA Executive Director

Volunteer leaders in Kentucky, Michigan and Ohio all deserve credit for keeping the Midwest Convention such a successful event for so long.” —Derek Dalling


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New CDL Rules Affect Propane Marketers

P

ropane marketers have kept busy this year with the Federal Motor Carrier Safety Administration’s rules on obtaining and maintaining Commercial Driver Licenses, or CDLs. Although the laws have been on the books since 2014, they are now being enforced. Cell phone use and failing to carry copies of Medical Examiner’s Certificates while driving are prohibited. Drivers now need to provide proof of U.S. citizenship. “It’s been a few months since the proof of citizenship law went into effect, so it’s important propane drivers know about this when they go to apply for new or renew their CDL licenses,” said Randy Halstead, chairman of the MPGA’s Homeland Security Committee. According to the FMCSA, a commercial motor vehicle requires more knowledge, skill, experience and physical abilities than a noncommercial vehicle. Therefore, CDL drivers are held to a higher standard when operating a truck on public roads. The FMCSA uses a nationwide computer system, the Commercial Driver’s License Information System, or CDLIS, that enables Michigan’s driver licensing agencies to check that each commercial driver has only one CDL and one complete driver record. Below are the Michigan CDL regulation changes:

January 3, 2015 Michigan enforces the cell phone restriction. This rulemaking restricts a CMV driver from holding a mobile device to make a call, or dialing by pressing more than a single button. CMV drivers who use a mobile phone while driving can only use a hands-free phone in close proximity.

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January 30, 2015 Michigan enforces the rule requiring all commercial drivers engaging in interstate commerce with a maximum gross vehicle weight rating of over 10,000 pounds (4,536 kilograms) to obtain and maintain a valid Medical Examiner’s Certificate (ME Certificate). CDL holders must provide their Sate Driver Licensing Agency with a copy of their ME Certificate. CDL holders found driving in a category (1 of 4) other than the one they are certified in are subject to suspension or revocation of CDL privileges.

July 8, 2015 Michigan enforces the CDL Testing and CLP (Commercial Lines Permit) Standard.

July 8, 2015 Michigan enforces the implementation of the Commercial Driver’s License Information System (CDLIS) 5.3.

July 8, 2015 Michigan requires proof of citizenship or legal presence specified for the initial issuance, renewal or upgrade of a CDL.

September 30, 2015 Michigan enforces compliance with all CDL requirements (MAP-21, Section 32305). The MAP-21 stipulations are aimed at state agencies’ notifications and record-keeping of testing, licensing, violations, convictions and disqualifications.

March 14, 2016 Michigan will enforce compliance with the Transportation of Agricultural Commodities final rule as it relates to CDL requirements. n


The proof of Citizenship law went into effect, so it’s important propane drivers know about this information when they to go apply for new or renew their CDL licenses.” Randy Halstead Committee Chairman, MPGA Homeland Security Committee

— Randy Halstead

Acceptable Proof of Legal Presence for U.S. Citizenship: Valid, unexpired U.S. passport or passport card Original or certified copy of birth certificate issued by a state, county, municipal authority, or outlying possession of the U.S. bearing an official seal. Consular Report of Birth Abroad issued by the U.S. Department of State (FS-240, DS-1350, or FS-545) *Certificate of Naturalization (N-550, N-570, or N-578) *Certificate of U.S. Citizenship (N-560 or N-561)

STATE OF MICHIGAN’S CDL HELP DESK Location: 7064 Crowner Dr., Lansing, MI 48918 Supervisor: JoLynn Peck at 517-322-5555 [email protected] www.USEMICHIGANPROPANE.com

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Certified Employee Training Program (CETP) and Non-Certified Courses available now Register Today! Visit usemichiganpropane.com and click on Training & Events

www.usemichiganpropane.com

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PROPANE FEST MPGA KICKS OFF SUMMER CONVENTION WITH

Scholarship Golf Outing

E

veryone had a great time at the MPGA Scholarship Golf Outing held at Timers Golf Club in Frankenmuth, Mich. There were 10 foursomes that played 18 holes and here are the results of the event:

Long (Long’s Propane), and Rep. Robert Kosowski

Closet to the Pin Women— Kim Godlewski

Longest Drive Men— Jason Kratt (Hamiltons)

A special thanks goes to DHT Trucking for donating a sleeve of balls for every player as well as a box of balls to the team with the worst score. n

Best Round with a score of 64—Jason Wadaga (MPGA), Matt Solak (MPGA), David

Closet to the Pin Men— Scott Gabriel (Fick and Sons)

Longest Drive Women— Kim Godlewski (IPS)

continued pg. 12


11

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NEW AGENCY CREATED TO

Re-Energize Michigan Energy Policy

T Derek Dalling MPGA Executive Director

The fact that the MAE was created demonstrates that energy related issues are such a priority for the state that they now have a stand alone department.” —Derek Dalling

he Michigan Agency for Energy (MAE) was born of an executive order meant to consolidate energy components from the Michigan Department of Environmental Quality, the Michigan Public Service Commission and the Michigan Economic Development Corporation. “The fact that the MAE was created demonstrates that energy related issues are such a priority for the state that they now have a stand alone department,” said Derek Dalling, executive director of the Michigan Propane Gas Association. “The director of the MAE is a cabinet level position and has direct access to the governor. What the creation of the MAE also shows is that energy is likely to be at the forefront of our state’s economic vitality for years to come.” Governor Snyder created the MAE to streamline Michigan’s energy policy initiatives to better help the state face the oncoming energy shortfall created by the impending and ongoing closure of several coal-fired

plants throughout the state. While the director of the MAE is the governor’s immediate advisor on energy issues, the agency also takes the reins in event of an “energy emergency,” which entails coordinating emergency contingency plans, monitoring Michigan’s energy supply and detecting imbalances, communicating officially with energy utilities on behalf of state government, and providing situation reports in case of an emergency or disaster. Such a situation the MAE would monitor would be low propane inventories during a particularly cold or long winter, which would reasonably point to an oncoming energy emergency. MAE actually predicts this winter to be warmer than normal due to “el Nino events” such as increased rainfall in California and a moderate hurricane season in the Atlantic. But this doesn’t mean they aren’t preparing for the worst. During the summer, the MAE was working with propane marketers continued pg. 15

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to inform their customers about the benefits of getting an early fill and locking in their rate before the winter season. They also used the myriad of factors they monitor to inform the companies of how much to stockpile, and different nonprofits how much propane to prebuy in order to assist low-income propane users undergoing financial emergencies. n

Valerie Brader Executive Director Michigan Agency for Energy

Valerie Brader is the Executive Director of the Michigan Agency for Energy. Her service with the administration began in 2011 and prior to this role, she served as Deputy Legal Counsel and Senior Policy Advisor to Governor Snyder, including work on the City of Detroit bankruptcy case. Before her service in state government she was a member (partner) at Bodman PLC, practicing primarily environmental and corporate law (with a specialization in assisting new or expanding businesses, from incorporation to securing permits and tax credits). Brader received her AB magna cum laude in government from Harvard and Radcliffe Colleges, has two masters degrees from the University of Oxford (an MSc in Environmental Change and Management and an MSt in Historical Studies), and a J.D. magna cum laude from Georgetown Law Center.


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Propane Tank Regulations

A

ccording to Jeff Tanner, from the Department of Licensing and Regulatory Affairs (LARA), quite a few things have changed in the last year in regards to Propane Tank Regulation. For one, such regulation is now handled by LARA, Bureau of Fire Services instead of the Department of Environmental Quality, which is ultimately under the direction of the State Fire Marshall Richard Miller. As for rule changes, employee training is still required, but it no longer has to be necessarily the NPGA CETP. Instead, individual companies can provide approved training, and it shall be refreshed every three years. Another change is the remote shutoffs on the ESV (emergency shutoff valves) or QCIV (quick closing internal valves) for all LPG tanks under 4,000 gallons can be 3ft to 100ft from tanks. For the tanks over 4,000, the previous regulation of 25-100 ft still applies. The emergency shutoffs must also be tested annually, and a fire safety analysis is required for all tanks over 4,000, and newly installed tanks must

be analyzed immediately, while existing tanks must be checked within 2 years of rule changes. More changes include a bulkhead no longer being specifically required, a transport or bobtail is required to be at least 10 feet away from the tank, and the signage requirement at fill stations is no longer in effect, as well as labels and no smoking signs on tanks are no longer being needed. Electrical disconnects for dispenser systems are now required to be outside, as opposed to previously they were allowed to be inside. Crash protection for larger tanks or non-dispensing units under 6.6.1.2 is required when within 10 feet of any motor vehicle thoroughfare, but does not specify what kind. Ammonia tanks of 3,000 gallons or less can no longer be used for LPG as well, and storage cylinders outside can now be 5 feet from a doorway at a site frequented by the public that has two means of exits, where in the past it was required to be 10 feet from the doorway. The most important change, according to Tanner, is the Michigan Attorney General’s informal opinion continued pg. 21

16


Jeff Tanner Environmental Engineer Storage Tank Division Michigan Department of Licensing and Regulatory Affairs

Scott Overholt Owner, Tri-Gas Distributing Co. MPGA District III, Co-Director

The rules are always changing, and if we had to go back and alter every tank every single time there’s a new set of regulations, we would never be able to keep up or actually service customers. So this change is very reasonable.” —Scott Overholt

MPSC EXPLAINS SEVERAL WAYS THE

State Can Help Families This Winter

S

usan Corbin, Director of the Michigan Public Service Commission’s Service Quality Division, spoke to the MPGA members on the subject of providing heating assistance to vulnerable customers during the upcoming winter season. Michigan’s Home Heating Credit, funded by the Low Income Home Energy Assistance Program, or LIHEAP, is available to both homeowners and renters. The program has an estimated $50 million in fiscal year 2015. Another LIHEAP program available to Michigan residents is State Emergency Relief, with funding for 2015 set at about $40 million. This program provides immediate

help in emergencies, and can be used for heat, utilities, home repairs, home ownership services, relocation assistance, and burial. The program, however, is not meant to be a solution for ongoing or chronic financial difficulties. Funds are only available during the crisis season, which goes from November 1 to May 31 of every year. In fiscal year 2014, 193,258 homes were assisted, with payment totaling almost $71.6 million. Another source of emergency help is the Michigan Energy Assistance Program, or MEAP, which is funded by the Low Income Energy Assistance Fund, LIEAF, as well as LIHEAP, and distributed by the newly created continued pg. 22

Multi-Service ASME Container Vapor Valves

ME662 Sue Corbin Director, Service Quality Division Michigan Public Service Commission

ME665

“We’re really pleased with how easy the state has made it to find and utilize assistance during the colder months...and we look forward to

Use in vapor withdrawal service for ASME containers or as fuel line shutoff valves in combination with an integral double check fill and vapor equalization valve.

working with them in future to make sure no one goes without utilities when they fall on hard times.” —Blaine Cronn, MPGA President

800.537.7518

Your questions answered by the people who know propane equipment.


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AWARDS

18



19

SPONSORS We Greatly Appreciate Our MPGA Convention Sponsors Platinum Level:

Bronze Level:

IPS Equipment NGL Supply Co. Ltd.

Gas Equipment Company GROWMARK Energy Tank Truck Service & Sales Thompson Gas Trinity Containers, LLC

Gold Level: Plains Midstream Canada Signature Truck Systems

Skeet & Pistol Shoot: Silver Level:

Alliance Energy Services

ATomiK Creative Solutions Bergquist, Inc. Garst L.P. Gas Inc. Marshall Excelsior Rasmussen Trucking Inc.

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Scholarship Golf Outing: Bergquist, Inc. DHT Logistics GROWMARK Energy Marshall Excelsior Rasmussen Trucking Inc. Tank Truck Service & Sales Trinity Containers, LLC


Propane Tank Regulations... continued from pg. 16 that if existing tanks are in compliance with the rules that were in place at the time of their installation, they will still be in compliance with current state regulations unless something specifically states in the rules that the tanks need to be upgraded. Conversely, existing tanks installed under the old rules that are in compliance with the new rules are also in compliance, even if they are no longer in compliance with the rules that were in affect at the time of their installation. For example, older larger tanks were required to have 7 foot stacks under older rules. Larger

tanks installed under the new rules are not. If an older tank removes its stack, it will not be required to reinstall the stack, as its no longer required under the new rules. “That, and the new changes in the rules, because they just happened in October and replace the older 2004 addition.” Propane Marketer, Scott Overholt, found the Attorney General’s opinion to be very interesting. “The rules are always changing, and if we had to go back and alter every tank every single time there’s a new set of regulations, we would never be able to keep up or actually service customers. So this change is very reasonable.” n

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State Can Help Families this Winter... continued from pg. 17 Michigan Agency for Energy. This program, income customers. like State Emergency Relief, is meant to “We’re really pleased with how easy the intervene in an energy crisis situation. It is state has made it to find and utilize assistance available to households whose incomes are during the colder months,” Cronn said, “And at or below 150% of the federal poverty level. we look forward to working with them in This program also includes services meant future to make sure no one goes without to enable households to move toward selfutilities when they fall on hard times.” n sufficiency, such as access to accounting and debt reduction services. The funds are available to grantees October 1. 70% of the program’s allocated funds must be spent during the WOMEN IN PROPANE COUNCIL aforementioned crisis season. Some of the strongest industry leaders created WIP and connected During fiscal year 2014, 87,647 us across the nation. Our mission is to provide positive opportunihouseholds were assisted with ties for all members of our industry to support the advancement energy bills totaling nearly $80 and success of women. million under this program. Between November 1 and MEMBERSHIP BENEFITS March 31, MPSC Consumer Hands-on training sessions • Education seminars Standards and Billing Practices Networking opportunities • Mentoring programs dictate that the utilities of senior Professional Development citizens cannot be shut off. NonOpportunities for leadership roles within WIP participating electric utilities Corporate Members are allowed unlimited number of employees to enroll and cooperatives cannot shut which will support the professional development of each employee off service for any delinquent accounts during the defined crisis IT’S EASY TO JOIN season. Visit www.npga.org/wip For help navigating the Simply click on either the Individual Membership link or the seemingly complicated web Corporate Membership link and fill out the application form. of heating assistance, Director $25 Individual Member • $25 Friend of WIP • $500 Corporate Member Corbin advises propane marketers to tell their low-income customers to dial 2-1-1. She added that she is “glad to see the continued involvement of the [Michigan Propane Gas Association] and all its members on how to solve the problem of low income energy assistance in Michigan.” MPGA President Blaine Cronn reaffirmed the organization’s [email protected] • www.npga.org/wip commitment to helping low-

WIP…

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Michigan’s Environmental Groups Concerned Over

Energy Pipelines and Fracking Michigan energy production and pipeline transport have become a concern for the state’s leading environmental groups. The following articles highlight the focus of Michigan’s leading environmental groups.

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The Great Lakes Regional Center for the National Wildlife Federation

T

he Midwest and Great Lakes are quickly becoming the hub for transporting and refining one of the dirtiest and most destructive fossil fuels on the planet: tar sands oil. The Great Lakes Regional Center of the National Wildlife Federation is against Enbridge Incorporated building out a massive expansion of pipelines into their Great Lakes Basin system. If this expansion goes through it will boost carbon emissions and continue to push our planet towards irreversible climate change, as well as increasing the likelihood of an oil spill into the Great Lakes. National Wildlife Federation is working to stop tar sands expansion projects that will put our resources, communities and wildlife at risk, and are also pushing for comprehensive pipeline safety reform, a process made harder by the huge gaps in

oversight and accountability for the industry. The National Wildlife Federation has also issued innovation grants to five Michigan colleges—Delta College, Lake Michigan College, Lansing Community College, Grand Rapids Community College and St. Clair Community College—for their efforts in the areas of green workforce development and campus sustainability. n


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The Groundwork Center for Resilient Communities By Jim Dulzo

T

he Groundwork Center for Resilient Communities, formerly the Michigan Land Use Institute, advocates for the use of more clean energy and energy efficiency in Michigan. It works on several local implementation programs that advance those goals, and also pushes the Michigan Legislature to expand, rather than eliminate, Michigan’s Renewable Energy Standard. With the original 10 percent renewables standard, created in 2008, now largely met, and at far less expense than originally predicted, Groundwork strongly supports raising the standard to 30 percent, and requiring electric and gas utilities to work with ratepayers to cut overall energy consumption by, respectively, 2 percent and 1.5 per year— double the current standards. The Center believes that setting standards is necessary, given that both DTE Energy and Consumers Energy have publicly stated that their renewables programs exist only because state law requires it. The Groundwork Center, like nearly every other environmental group in Michigan, wants to see the shuttering of Enbridge’s Line 5 oil pipeline in the Mackinac Straits.

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They are also a strong proponent of reviving rail service between Ann Arbor and Traverse City. It recently won a nationwide crowd funding competition, raising almost $19,000 to help build support for the revived line among government, business and civic leaders in the cities between Traverse City and Ann Arbor. The Center is also responsible for the Taste the Local Difference program, which is building a local food and farming economy in northwest lower Michigan—bringing fresh local food to area markets, restaurants and institutions and helping farmers increase their profits and hold on to their farmland. n


The Michigan Chapter of the Sierra Club By David Holtz

T

he Michigan Chapter of the Sierra Club has focused on ending the flow of oil through Enbridge’s twin Line 5 pipelines, which run through the Straits of Mackinac. They are part of a coalition of conservation, environmental, tribal and local northern Michigan groups along with 150 businesses concerned that an oil pipeline rupture in the Straits would be catastrophic. Their focus is on the flow of oil through the pipelines, but not the liquefied gas that is carried by Line 5 and converted to propane that is used to heat many homes in Michigan’s Upper Peninsula. The Federal Transit Administration found “no significant environmental hazards associated with the accidental discharge of liquefied gas.” Sierra Club’s Michigan Chapter was founded 48 years ago. Besides protecting the Great Lakes, the organization’s Michigan priorities include support for clean energy, opposition to high-volume, hydraulic fracturing and stronger regulations on air and water quality in connection with polluting industrial animal factory farms. The group supports a petition drive to place a ban on importing hazardous fracking waste into Michigan and to end high-volume, hydraulic fracturing in the state.

“If the ‘ban fracking’ proposal is placed on the ballot, voters in Michigan who overwhelmingly say they want to protect our state’s waters, land and communities will have the opportunity to overcome the oil industry’s grip on Lansing and protect our state,” said David Holtz, chair of Sierra Club Michigan Executive Committee. A recent March for Justice event that drew nearly 1,000 people to Detroit focused, in part, on shipments of fracking waste for processing in Detroit, which raises concerns about the impact of radioactive wastes on air quality and the environment. The club’s national president, Aaron Mair, attended the October 3 Detroit event. Sierra Club believes low income and minority communities around the world, including in Detroit, are the most vulnerable, but least responsible, for carbon emissions and other dangerous pollutants. n


29

Michigan Environmental Council By Andy McGlashen

T

he Michigan Environmental Council (MEC) is comprised of more than 70 member groups focused on public health, protecting Michigan’s waters, clean energy, environmental justice, transportation solutions, developing sustainable communities and conserving natural resources. In 2013, MEC was a catalyst for engaging residents in Detroit’s revitalization plans, for reigniting conversations about environmental justice at the state level and for transitioning away from garbage incineration in favor of recycling and other greener disposal options. The group is heavily involved in the Detroit Future City project, which offers a vision for Detroit. It covers areas such as health, environment and safety. In regards to protecting Michigan’s waters, MEC pressed state regulators to strengthen rules for gas drillers using advanced hydraulic underground fracturing techniques (fracking). A new era of deeper, more intensive gas drilling permanently poisons more than 100 times the fresh water than previous wells did. The new wells also increase risks to local waterways, nearby residents and first responders. State officials have agreed to

30

modernize some rules, but MEC is still working for the closure of regulatory loopholes, better monitoring and protection of nearby water sources and more timely notification to communities where wells will be drilled. MEC also believes in making the Detroit water treatment plant cleaner and greener. They worked with a coalition of environmental groups to provide input and public testimony encouraging efficiency and green infrastructure for the Detroit Water and Sewerage Department’s federal permit renewal in 2013. The permit eventually incorporated many of the coalition’s suggestions, including a commitment for $50 million in green infrastructure projects that will reduce the burden on overloaded sewer pipes and treatment facilities. n


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 or [email protected].

®

© 2015 CHS Inc.


JOB #: 56895

Print Scale: None

Bleed: 7.75” x 10.25”

Cyan

Date: 9-30-2015 3:26 PM

E

Proof #:

31

Enbridge Delivers for

Michigan Residents and Businesses

Brad Shamla Vice-President Enbridge, U.S. Operations

By Brad Shamla

E

nbridge delivers energy, keeping Michigan

condition and safe to

residents and businesses warm and on the

operate.

move. Key to our ability to do that is Line 5,

With 250 people

the 645-mile pipeline that runs through Michigan

employed across the

and connects Superior, Wisconsin to Sarnia,

state, Michigan is

Ontario.

home to our team of

Last year, Line 5 pipeline transported nearly

dedicated employees

28 million barrels (equivalent) of propane to

committed to the safe

Michigan families and businesses, supplying 85

operation of our pipeline

percent of demand and heating the equivalent

systems. Line 5 is one of several pipelines in

of 240,000 Michigan homes. Line 5 also delivers

our network that provide energy to Michigan

approximately 30 percent of Marathon’s Detroit

households and businesses and power the state’s

refinery with its light oil feedstock, which is

economy through reliable access to affordable

used to create gas, diesel and jet fuel — fueling

fuel. We also provide $22.4 million in annual sales

120,000 cars and trucks each day.

and property taxes to the state.

At Enbridge, our top priority is delivering

We appreciate the opportunity to fill an

our client’s energy safely and reliably, while

important role providing energy to Michigan. We

protecting the environment. We have operated

appreciate the trust placed in Enbridge and are

Line 5 safely for more than 60 years. From the

committed to delivering those products safely

way it was built to the way it is operated, there

and reliably. We look forward to continuing our

are a number of measures in place to keep Line

role in heating Michigan homes and businesses

5 safe. A dedicated team of people monitor the

and keeping the state on the move.

line 24/7 and remotely operated valves at the

To learn more about the ways we maintain

Straits crossing would close automatically should

Line 5 and the economic value it delivers, please

there ever be an unplanned pressure drop. We

visit: www.enbridge.com/line5 n

inspect Line 5 frequently and have extensive data verifying the system is fit for service. We can say with confidence that Line 5 is in very good

32

Dan Olson Mechanical Technician for Enbridge, working at a pump station along Line 5. Olson makes sure that Line 5 operates safely and reliably.


HYDRAULIC FRACTURING

A Safe Technology

M

ost Michiganders are aware of Michigan’s abundant natural resources that have played an integral role in our economic wellbeing, settling of the state and contribution to the industrialization of the nation. Michigan copper, iron ore, timber, natural gas, oil and water continue to provide economic strength, jobs and raw materials for many other industries that drive our economy. Many Michiganders now are learning about a shift that Michigan will be making soon in how we generate the majority of our electricity. Natural gas produced right here in the U.S. will continue to provide a foundation-fuel needed to ensure reliable, affordable and clean electricity for our homes, schools and businesses. Hydraulic fracturing is the reason why Michigan and the rest of the nation can enjoy this cheap, abundant, Americanproduced supply of natural gas. Hydraulic fracturing is a technology that has been used safely in Michigan for over 60 years, safely treating over 12,000 wells. It is a treatment process that helps extract natural gas and oil from shale rock layers within the earth. The Michigan Dept. of Environmental Quality (DEQ) has a strong record of environmental protection. Michigan’s rules and regulations are consistently held up as some of the most stringent in the entire nation. The regulatory track record on hydraulic fracturing demonstrates that there has never been a situation of groundwater contamination associated with the 12,000 wells in Michigan that have been hydraulically fractured. The

By Erin McDonough

U.S. Environmental Protection Agency (EPA) also said in a June 2015 report that it found no evidence fracking has a widespread impact on drinking water. Erin McDonough President and CEO Hydraulic Michigan Oil and Gas Association fracturing is a smart, proven technology that has made exploration for oil and gas safer, smarter and better than ever before. Banning hydraulic fracturing presents us with an all-or-nothing decision on a process that nearly every regulator, from the EPA to the Michigan DEQ, say can and is being done safely. Hydraulic fracturing keeps the prices down on the gas in our cars and the heat in our homes. Whether you heat with natural gas this winter, like 80% of Michiganders do, or whether you heat with propane, which is derived from crude oil and natural gas, there is no question that having a safe, abundant, American energy source provides security in all our lives. n Erin McDonough is the President and CEO of the Michigan Oil and Gas Association (MOGA), an over eighty year old member-organization representing nearly one thousand oil and gas production-related companies throughout the State of Michigan.


33

Natural Gas May Be Right for Now

But Needs to be Done Right By JD Snyder

N It is exceedingly difficult to justify natural gas infrastructure expansion when the maintenance of the current infrastructure lags so far behind, especially with the public risk and danger associated with this crumbling infrastructure.” —JD Snyder

34

atural gas companies promise an ideal, clean, cheap option for home heating as a power plant fuel that replaces dirty coal in the generation of electric power. Much of the cast iron and bare steel pipeline infrastructure that delivers natural gas to older urban areas like Detroit, Lansing and Grand Rapids, long used for home and commercial heating, is over 75 or even 100 years old. This represents yet another crumbling infrastructure problem. But the fracking revolution — hydraulic fracturing to extract natural gas — has made it a cheap and seemingly ideal fuel to bridge the transition from dirty coal, with its huge global warming contribution, to alternative energy sources that don’t contribute to global warming. So what’s not to like? It turns out there’s a lot. The fact is, there are some scary dangers and serious environmental problems hiding in this glossy picture. Let’s look first at the dangers from the deteriorating infrastructure. Five years ago, two people were killed and another severely injured in Wayne, Michigan, near Detroit, when a gas leak explosion leveled the Franks Furniture store.


According to the Michigan Public Service Commission investigation, the explosion was caused by pressure building up over time on the decades-old gas line from the construction of a nearby sanitary sewer and a concrete wall built above the line. Corrosion of these unseen, underground pipelines can lead to similar fatal explosions in the future. The potential danger lurks anywhere cast iron or bare steel pipes deliver natural gas to homes and local stores. The older the pipeline, the greater the risk of corrosion and dangerous leaks. DTE Gas has 2,419 miles of cast iron mains and 285 miles of bare steel pipe, according the Detroit Free Press. Consumers Energy has 575 miles of cast iron and 203 miles of bare steel pipe. Both utilities have

pipe replacement programs in place, but they lag far behind, with replacement of all the old cast iron and bare steel pipe expected to take 75 years or more. According to the federal Pipeline and Hazardous Material Safety Administration (PHMSA), DTE Gas had over 1200 detectable leaks in 2010 with a quarter of those leaks caused by corrosion. Consumers Energy’s corrosioncaused leaks increased by 69% from 2010 to 2013, with 22% of those leaks going directly to homes. Consumers’ 1.6 million customers make it the largest natural gas utility in the state. PHMSA collects pipeline data from natural gas utilities but has no regulatory authority. The National Transportation Safety Board, which continued pg. 50


35

To join the MPGA PERN team or for more information, contact Marv Ockerman, PERN Chairman, at [email protected]

Finally Michigan Has a

Road Funding Package Michigan’s Road Funding 2017: • Driver registration fees increase by 20% • Michigan generates $450 million in new fuel tax and registration fee revenue • Gas taxes increase 7.3 cents per gallon and diesel taxes jump 11.3 cents • Electric and hybrid vehicle owners pay new annual surcharge of $30 or $100

2018: • Funding levels top $600 million

2019: • Funding levels top $760 million • Maximum Homestead Property Tax Credit increases to $1,500 • Household income cap raises to $60,000 • $150 million allocated to roads

2019: • Funding Levels top $944 million • $325 million allocated to roads

2020: • Funding levels top $944 million • $325 million allocated to roads

2021: • Funding levels top $1.23 billion • State indexes maximum credit and home value cap to inflation • $600 million allocated to roads

2022:

M

ichigan roads are widely viewed as some of the worst in the country, but our road infrastructure is about to become safer and stronger with the seven-bill package Gov. Rick Snyder recently signed. The package is Michigan’s largest transportation funding increase in more than half a century, according to Snyder. This plan raises 20 percent more road revenue than the last road plan. Sixty-one percent of revenue will go to local road agencies in communities across the state and 39 percent will be dedicated to state highways. These funds will be allocated for roads in a 5-year phase-in period to allow fiscally responsible adjustments over time. The plan begins with $150 million in fiscal year 2019, $325 million in 2020 and $600 million in 2021. All of these components add up to an investment of $1.2 billion towards fixing Michigan’s roads and bridges. By 2017 the average Michigan motorist will pay $5 per month, $60 a year, in higher registration fees and fuel taxes, according to the Snyder administration. People who own multiple cars, drive more miles or have less fuelefficient vehicles could be hardest hit.

• Fuel tax rates indexed to inflation


continued pg. 38

37

Road Funding Package... continued from pg. 37 Beginning in 2017, gas taxes will increase 7.3 cents per gallon and diesel taxes will jump 11.3 cents. If you buy 12 gallons of gas, you’d pay about 88 cents more than you would now. Beginning in 2022, both fuel tax rates would be indexed to inflation, meaning they could increase without any other legislative action. Michigan also applies its six percent sales tax to fuel purchases. Registration fees will also increase by 20 percent for passenger vehicles and commercial trucks in 2017. For the average motorist who pays a $100 registration fee each year, the bill would increase to $120. Electric and hybrid vehicle owners, who typically pay less fuel taxes or avoid them altogether, will also be hit with a new annual surcharge of $100 or $30, respectively. Michigan residents who receive the Homestead Property Tax Credit could see some savings starting in fiscal year 2019, and more residents could qualify.

38

The state will increase the maximum Homestead credit from $1,200 to $1,500 and raise the household income cap from $50,000 to $60,000. Beginning in tax year 2021, the state would index the maximum credit and home value cap to inflation. The state will generate about $450 million in new fuel tax and registration fee revenue in fiscal year 2017, meaning about $50 million in extra spending. Dedicated funding levels will top $600 million in 2018, $760 million in 2019, $944 million in 2020 and $1.23 billion in 2021, according to the non-partisan House Fiscal Agency. Once fully phased in, the plan would mean about $450 million a year in new and dedicated revenue for the state, $450 million for county road agencies and $250 million for cities and villages. Mass transit would see an extra $62 million a year. n


Google Earth Outreach Teams with EDF Detecting Natural Gas Leaks Faster, Cheaper

W

hen natural gas — mostly methane — leaks into the air, it’s a big problem for the climate. So the Environmental Defense Fund (EDF) and Google Earth Outreach teamed up to build a faster, cheaper way to find and assess leaks under streets and sidewalks. Google Earth Outreach and the EDF created maps across the United States showing gas leaks. They found that the older the pipes under a city, the more leaks. So far, they’ve mapped Boston, Burlington, Chicago, Indianapolis, Los Angeles, Staten Island and Syracuse to show the persistent

and widespread challenges of leaks among America’s urban geography. “These maps show that, for utilities like Southern California Gas, there is a lot more that can be done to fix leaks from aging infrastructure and we need to do it sooner rather than later,” said L.A. City Councilmember Paul Koretz. Google has created a fleet of city-mapping cars for this project. The cars contain sensors to detect methane leaking from aging pipes. The cars have found thousands of leaks in Boston and Staten Island, which is roughly one per every continued pg. 48

A Google Street View car equipped with methane sensing technology. www.USEMICHIGANPROPANE.com

39

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 40


Detroit Public Schools

Embrace Propane

D

etroit Public Schools (DPS) became the state’s largest user of propane Autogas with its transportation contractor’s purchase of 35 propane gas-fueled Blue Bird Vision Propane school buses, which amounts to 30% of its fleet. The buses will save the district’s operating budget a lot of money. Propane is 50% cheaper than diesel. The district is paying $.74 per gallon for Autogas compared to $3 per gallon for diesel. An additional 80% savings will come from reduced maintenance costs, as propane buses require less frequent oil changes and improved engine life compared to diesel-fueled buses. Propane buses also are proven to warm up much faster during the winter, cutting down idling time and, as a result, saving fuel and money. ABC Student Transportation, DPS’ transportation provider, selected the Blue Bird Vision buses equipped with a Ford 6.8-L V10 engine powered by ROUSH CleanTech propane Autogas fuel systems. Blue Flame Propane, an affiliate of Foster Blue Water Oil, was selected by ABC to install the propane fueling stations. According to Don Kent, Operations Manager, Foster Blue Water Oil was already supplying diesel fuel to the school system, but they still went through the bidding process. “We had experience implementing Autogas for a few smaller school systems. We were able to demonstrate to them that we could help them meet their long term financial goals,” Kent said. Once ABC awarded the bid to Blue Flame, it took just over a month to complete the system,

including installing a 12,000-gallon aboveground tank and two Autogas dispenser fueling units. “We provided a number of manpower hours to educate DPS on the benefits of using propane as their fuel source. We were able to complete the project before the school season started,” Kent said. More and more school districts are choosing Autogas as a solution to rising costs. According to a study by the U.S. Department of Energy, five school districts across the country saved a lot of money over the course of a year by using propane Autogas, with several districts seeing a 50% reduction in maintenance and fuel costs. The EPA says propane-fueled vehicles reduce emissions and noise. “Blue Flame was happy to accommodate for the needs of ABC and DPS. Thirty years ago, there were propane vehicles out there, but not to the caliber they are today. We’re glad to be a part of it,” said Kent. n

This is a win for Detroit, a win for Blue Flame, but more importantly a win for the propane industry. We’re happy to participate in the progress of Autogas and its fuel efficient and cost savings advantages to help school systems.”


41

Members Giving to a Noble Cause

P

ropane marketers in the Thumb area are improving the quality of life for many people with breast cancer. The second “Pink Out” event was held in September, raising significant funds for the Breast Cancer, Understanding, Prevention and Screenings program, also known as BCUPS. BCUPS raises awareness about cancer and provides free mammogram screenings for uninsured and underinsured (L to R) Les Phillips of Phillips Oil Co., Steve Kohler of Kohler Oil & Propane Co., State patients in Michigan’s Thumb Representative Paul Muxlow, Kasey Trudeau of Kohler Oil & Propane Co., Scott Dorman of Marlette Oil & Gas, and Dan Babcock, CEO of Marlette Regional Hospital. (Not pictured: region through Marlette Dave Long of Long’s Propane Gas) Regional Hospital. The “Pink Out” event kicked off at the high school varsity football game between two area rivals, Marlette and Brown City. The teams wore jerseys emblazoned with names of survivors. At half-time, all the major sponsors were recognized for their contributions. At the end of the game, the players presented their game-worn jerseys to the cancer victims they were honoring, or to a family member. • Kohler Oil & Propane “The entire community was involved,” said Steve Kohler

Donations Raised for BCUPS

of Kohler Oil & Propane Co. “Approximately 1500 fans attended the game and a pre-game tailgate fed over 400 people. But most importantly, over $20,000 was raised for the cause.” “More and more people I know have been affected by cancer and I wanted to help women and men get the screening attention they needed,” said Kohler. “I greatly appreciate the time and donations made by the propane company’s involved in this project. Without them, we wouldn’t be able to make this happen for area residents.” The BCUPS program was started in 2007 by Steve and Lee Ann Kohler of Kohler Oil and Propane, serving the area since 1949. They worked with Dan Babcock, CEO of Marlette Regional Hospital to implement the program in the area. n

42

(including Kohler Propane North) since 2007: $51,742 • Public Donations to BCUPS: OVER 20,000 • Pink Out for 2013 and 2015: OVER $47,000

Grand Total: OVER $115,000


What could be

etter?

Okay, sure – winning the lottery would probably be better. So would not having 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 that means dealing with insurance – for your business, for your employees, for your future and your health. Not to mention your peace of mind. The good news is, insurance doesn't have to be painful! And we're putting 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, we'd rather be golfing, too) and where your business may be vulnerable. It's also designed to show you where your coverages are strong ... possibly too strong! ... as well as where it could be improved (is it lunch time yet?).

ut seriously ... We take your business' insurance needs as seriously as you do. Which is why the Michigan Propane Gas Association picked us as the one insurance company to earn your board's endorsement (our sense of humor had nothing to do with it). And because your business is a member of the association, you can enjoy exclusive benefits offered only to MPGA members. Including custom coverages, favorable pricing, and priority service when you call. Plus, because we at Beckwith Financial Group have long-term relationships 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 money on custom coverages for over 25 years. And have earned the reputation of trusted advisors throughout the state. 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 link to receive information via e-mail. Or log on to directly to www.beckwithgroup. com and click the "request a quote" button for the type of insurance you're interested in. Or speak directly to one of our advisors by calling 1-800-237-5504. We're ready to help you take the worry out of your insurance world – so you can get back to the real world. Now wouldn't that make you happy?

Coverages we provide: BUSINESS COVERAGE commercial property • business auto commercial liability • worker's compensation fleet insurance • umbrella lliability BUSINESS INSURANCE & EMPLOYEE BENEFITS group health • business owner planning • group life • group disability group dental • health savings accounts Section 125-cafeteria plans self-insured health programs health reimbursement arrangements BUSINESS & GROUP PRODUCTS group voluntary long term care benefits executive carve-out long term insurance retiree Medicare supplement group/individual voluntary employee benefits PERSONAL COVERAGE homeowners • automobile • renters • boats umbrella liability • motorcycles INDIVIDUAL INSURANCE health • life • disability • long term care annuities INDIVIDUAL SENIOR INSURANCE PRODUCTS long term care • Medicare supplement long term care partnership programs life with long term care riders final expense • dental

Don't worry.

happy.

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A Data Breach Can Make Fraud Your Problem

Even If the Breach Isn’t

R

ecent data breaches at the UCLA Health System, Starbucks and the U.S. State Department are just the latest hacking incidents that have drawn national attention. While the exposure of patient, customer and employee information is serious, aren’t you glad they don’t affect you? But wait, maybe they could. Just because your data security is intact doesn’t mean you won’t be on the receiving end of potential card fraud involving data stolen from someone else. Data stolen in those incidents could end up in a potentially fraudulent card transaction in your store. Are you ready to catch it? To protect both your business and your brand reputation, revisit and sharpen your application of best practices against such fraud, As long as you follow proper card acceptance procedures, you won’t be liable for losses even if fraud does occur. With card present transactions, it’s critical

to inspect the card. Look carefully to confirm the card is valid and shows no signs of tampering. Be sure the digits are properly aligned; check to see that any hologram moves when the card does; and compare the name, number, and signature on the card with those on the transaction receipt. It’s tempting for employees to skip these procedures, but they’re absolutely critical, especially with new EMV requirements taking effect October 1. That’s when liability for certain types of fraudulent transactions will shift from card issuers to merchants who accept face-to-face card payments and have not upgraded their equipment to accept EMV cards when one is presented. You can also limit your vulnerability to fraud in cardnot-present transactions by looking out for novel or unusual behaviors. Here are 10 transaction red flags to look for. Transactions like these might be legitimate, but they always deserve a second look:

1. A new customer, especially from out of the area. 2. Multiple card entries for high-dollar orders. 3. Billing and shipping information don’t match. 4. Multiple purchases of the same item. 5. Multiple transactions from a single IP address. 6. Sequences of similar account numbers. 7. One card used for sending shipments to multiple addresses. 8. Several cards used for shipping to a single address. 9. International shipping. 10. An unsolicited phone authorization for a cash advance. While these and other red flags might turn out to be false alarms, if you don’t know or have an established business record with a customer, you should identify them online and vet them carefully before proceeding. n

This article is provided by Vanco Payment Solutions, which meets clients’ specialized needs for credit, debit and other electronic payment

44


W H AT ’ S N E W

Ray Murray, Inc. Acquires Best & Langston, Inc.

O

n October 1, Ray Murray, Inc. announced

facilities. All day-to-day customer interactions will

its purchase of Best & Langston, Inc.,

remain the same. RMI has hired all Best & Langston

a leading Hearth, Heating & Leisure

employees. John Langston will remain with RMI as

products distributor based in Goldsboro, NC. The

General Manager, Best & Langston Division. John

addition of Best & Langston makes RMI one of

will be responsible for all aspects of the acquired

the largest wholesale distributors of hearth, grill,

operations.

propane and compressed gas equipment in the

“This acquisition combines two prominent

U.S. RMI now has over 80 employees, including

and well respected equipment distributors. It will

17 field sales professionals across 25 states with

provide the ability to best serve specialty retailers,

facilities in MA, PA, MI, and now NC.

propane marketers and compressed gas customers

Best & Langston will operate as a division of

from four strategic distribution centers across the

RMI and will continue to do business as usual and

Northeast, Midwest and now the Southeast,” said

serve customers from its existing Goldsboro, NC

Mike Hopsicker, President & CEO of RMI. n

District 4 Holds Third Annual Propane Industrial Updates he Association’s District 4 held an informative

T

Andy Schneider, Growmark Propane pipeline,

mini-conference in West Branch, Mich. District

rail and storage updates

Gas and Scott Gabriel of Fick & Sons organized the

Michael Charbonneau & Mark Dewyse, DEQ

event inviting speakers on important issues affecting

(LARA), Industrial Updates, Regulations and

the industry, including:

Plan Requirements

Jimmy Gretzigner, Michigan Out of Doors

Tim Myers, MPGA Education Committee,

Upcoming events and outing

MPGA Classes, NPGA Updates

Tom Jaenicke & Blaine Cronn, MPGA Marketing

Derek Dalling, Gov. Affairs, Natural Gas Crisis,

Committee, Residential market, Natural Gas

MPGA membership benefits

Co-Director’s Dan Roberts from Stanford LP

Expansion Contact the MPGA home office if you are interested Jim Zuck, MPGA Supplier Director

in having a presentation in your district at:

Regulations and Technical Affairs

www.UseMichiganPropane.com


45

AMERICA’S HOMES DESERVE BETTER.

THEY DESERVE PROPANE. Electric water heaters have been the standard for many homes — but now,

it’s time to pull the plug. Establish propane as the smart choice for customers by using the Pull the Plug on Electric Water Heaters campaign tools and strategies developed by the Propane Education & Research Council.

TAKE ACTION TODAY. DO YOU KNOW WHICH OF YOUR CUSTOMERS HAVE ELECTRIC WATER HEATERS?

YES

ARE YOU IDENTIFYING NEW CUSTOMERS?

NO

YES

Survey your customers to find out.

NO

Attend local homeowners’ events and other association meetings.

Download and share the consumer materials available on propanemarc.com. BROCHURES

FACT SHEET BUNDLE

Include your business card in each brochure, and distribute them on deliveries, as bill stuffers, or at local events.

Download and share the fact sheet for your climate location.

Customize this piece and place it in your newsletter or local newspaper.

46

YES

NO

Network with local professional organizations to build relationships for the future.

Tell them about the course “Residential Water Heaters Under the new 2015 Federal Standards” on propanetrainingacademy.com. Emphasize that those who take the course by December 1, 2015, could win a $250 gift card.

FOLLOW UP It’s important to revisit with customers and keep propane top of mind. In light of the new NAECA standards, it’s also a great time to show them the video on KnowYourWaterHeater.com.

AD TEMPLATE

RESOURCES

DO YOU HAVE CONNECTIONS WITH PLUMBERS AND/OR HVAC CONTRACTORS?

Resources to share with customers: propanemarc.com Water heater online course: propanetrainingacademy.com Water heater online resources: KnowYourWaterHeater.com MICHIGAN PROPANE GAS ASSOCIATION

5084-FL-14

Propane Marketers Keeping Customers Warm this Heating Season


47

Google Earth Outreach... continued from pg. 39

48

mile of road driven, whereas Indianapolis’s roads are only leaking once every 200 miles because the city has newer infrastructure. Leaking natural gas — which is mostly methane — has 84 times the warming effect of carbon dioxide over a 20-year timeframe, according to the Environmental Defense Fund website. “Methane leaks are a serious climate problem, and a major issue throughout the natural gas supply chain. Because methane is such a potent pollutant, fixing leaks is a major opportunity for California and the rest of the country to put a big dent in greenhouse emissions, quickly and costeffectively,” said Tim O’Connor, Director of EDF’s California State Climate Initiative. “Aging pipes can lead to more leaks, and are a growing challenge in many parts of the country. It’s time for both policymakers and utilities in California to start solving this problem, and we’re very confident they can.” Detroit, like the other cities mapped by Google, has corroding cast iron pipelines over 100 years old. There have been over 40 disastrous natural gas leaks in Michigan since 2004. But while Michigan’s infrastructure is crumbling, natural gas utilities want to build out new pipelines in the rural areas of Michigan. Why build new pipelines when our old ones are causing gas explosions? According to the Pipeline and Hazardous Materials Safety Administration, Michigan has some of the oldest pipes in the nation. The project is still in the pilot stages, but Google and the EDF hope to make it nationwide. When the city-mapping cars go nationwide, there will be an opportunity to compare leaking pipeline data across cities. This data will make it possible to show the seriousness of the aging pipeline problem by comparing older infrastructure to newer infrastructure and seeing the same drastic difference in pipe leaks across the country that we see between Boston and Indianapolis. n


Meet or Beat Special Promotion for MPGA Members! The Michigan Propane Gas Association and Midwest Transaction Group have helped many of MPGA members save on credit card processing fees. Through MTG’s Meet or Beat promotion, we are confident we can help you achieve lower costs with our $100 Meet or Beat Promotion. The process is simple, just fax 2 or 3 months of your current processing statements to MTG at 866-279-9402. If MTG cannot meet or beat your current pricing, you’ll receive $100 gift card. It’s just that simple! MPGA Member Benefits: » Exclusive member pricing » No long term contract » No minimum requirements » Price transparency with Truth in Processing™ » Dependable customer service

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Innovation Beyond Processing® www.USEMICHIGANPROPANE.com

49

Natural Gas May be Right... continued from pg. 35 investigates pipeline accidents, has been calling for replacement of cast iron pipeline since 1973, under President Nixon. The age of cast iron pipeline is the critical factor in understanding the risk of danger from corrosion-caused leaks and the potential for explosions. Consumers Energy has 12,163 miles of pipeline dating from the 1940s through 1960s, and 766 miles built before 1940. DTE Gas has 8,312 miles built in the 1940s-1960s, and 766 miles before 1940. It is exceedingly difficult to justify natural gas infrastructure expansion when the maintenance of the current infrastructure lags so far behind, especially with the public risk and danger associated with this crumbling infrastructure. And there’s another problem with natural gas: its little-understood and underappreciated contribution to atmospheric methane, a major greenhouse gas — worse, in fact, than carbon dioxide. Although research on methane leaks from North America natural gas systems is still preliminary, it appears that methane emissions from U.S. and Canadian systems are larger than official estimates. What is known is global atmosphere methane is increasing,

but the causes for this increase are not clearly understood. Technology for measuring methane leaks is available, but measurements are preliminary and fragmentary. However, a major 2014 Stanford University study emphasized that methane leakage detection and repair programs can be profitable for natural gas companies. Moreover, this maintenance approach is important to ensuring the beneficial use of natural gas as an energy bridge to reduced greenhouse gas emissions and a carbon-neutral future. n JD Snyder is a researcher specializing in economic development, environmental, energy and health care. He served as environmental policy advisor to Gov. James Blanchard and was later the Director of the Michigan Office of the Great Lakes. He currently works as a policy entrepreneur, creating and directing innovative projects to assist the economic recovery from the Great Recession at Michigan State University. He has an MS in resource development from Michigan State University with a minor in environmental toxicology. JD is a partner at Communications & Research, Inc.

Index to Advertisers

50

2

Signature Truck Systems

7

Rasmussen Trucking, Inc.

9

Marshall Excelsior Gas Connections

10

MPGA Education Rebate

13

IPS Equipment Inc./ Industrial Propane Service, Inc.

15

Liquid Haulers Maintenance

25

Gas Equipment Co., Inc. UHY, LLP Certified Public Accountants

31 CHS 36

MPGA PERN Rebate

40

MPGA Alternative Fuels Rebate

43

Beckwith Financial Group, Inc.

46

MPGA Marketing Rebate

17 Bergquist

47

MPGA SHOP Rebate

21

Tank Truck Service & Sales, Inc.

49

Midwest Transaction Group

22

NPGA Women in Propane Council

51

Johnstone Supply

23

MPGA Propane Emergencies Rebate

52

Smith Gas Liquids Company


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