LP Gas - May 2016 PDF

THE PROPANE INDUSTRYS PREMIER INFORMATION SOURCE | www.LPGASmagazine.
com
MAY 2016
LP Gas Hall of Fame: Four new

inductees comprise ifth
class at Nashville ceremony
NEW CONSUMER CAMPAIGN
Heres
BLUE
Propanes back in the national
spotlight, with plans now to
improve public perceptions
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VO L U M E 76
NUMBER 5
MAY 2016
Features
28 |
PROPANE EXPO
RECAP | Nashville lives
up to the hype while
drawing a crowd.
30 |
A BLACK-TIE AFFAIR
he LP Gas Hall of Fame
welcomes four new
members as part of its ith
class of inductees, with a
celebration in Nashville.
37 |
DRIVING TOWARD
A DEAL
Several propane industry
representatives share best
practices in acquisitions at
a Propane Expo session.
46 |
DOG DAYS
OF SUMMER
New residential-based
marketing campaign
designed to endear the
public to propane.
The propane industrys premier information source
28
Departments
6 | OPENING DELIVERY | Some
action items on LP Gas Hall of
Fame, Growth Summit
8 | PHOTO DROP | A gallery of

photos from recent industry
events
10 | VITAL SIGNS | U.S. propane

production levels expected to
increase through 2017.
58 | SAFETY FIRST | Life lessons
30
learned from the Propane

Expo to Broadway Avenue
On the cover | Photo courtesy of the Propane Education & Research Council.
www.LPGasmagazine.com
May 2016 LPGas | 3
Manage
fueling with a
simple swipe
of a card
The PRO-Vend 2000
offers a superior system
for tracking and reporting
your leets propane fuel
usage.
72
60 | LEGAL BRIEF | A reminder for propane retailers to

use business items that meet industry standards
62 | SERVICE AND MAINTENANCE | A mild winter

provides early opportunities for retailers to improve
their assets and skills.
64 | PRODUCT SHOWCASE | Propane tank heaters,

grilling accessories, ire pits and more
72 | SNAPSHOT | Outside work experiences help a

family-run retailer gain fresh perspectives.
ONLINE. Visit www.lpgasmagazine.com to get the latest
propane industry news. Also visit us at facebook.com/
lpgasmagazine and twitter.com/lpgas_mag.
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4 | LPGas May 2016
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Only Lock Americas

Security Locks Can
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Lock out your delinquent customers.
You may be liable if your customer tampers with
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Editorial Advisory Board
any device that can be opened with ordinary household

tools could not be considered a locking device.
Jones v. Centerpoint Energy, May 25, 2011
Jaime Alberti
Sales & Marketing,
Hilco Transport Inc.,
Wilmington, NC
Dale Delay
President,
Cost Management
Solutions,
Livingston, TX
Patrick Hyland
Director of Industry
Programs, Propane
Education & Research
Council, Cleveland, OH
Tom Jaenicke VP of
propane marketing
services, Warm Thoughts
Communications,
Charlevoix, MI
Prevent unauthorized ills.
Prevent unauthorized reconnections.
Proits went up when we started locking our tank Now were putting locks on all
our new tanks Brian Wanner, Silvertip Propane
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arguments, just bills settled before delivery. Mike Green, Greens Propane
Greg Noll
Executive Vice
President,
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Larry Osgood
President,
Consulting
Solutions LLC,
Monument, CO
Jim Renaldo
Director, Sales &
Marketing, Renaldo
Sales & Service Inc.,
North Collins, NY
Mike Walters
Vice President, Safety
& Training, Superior
Energy Systems,
Columbia Station, OH
LP Gas does not verify any claims or other information appearing in any of the advertisements contained
in the publication, and cannot take any responsibility for any losses or other damages incurred by
readers in reliance on such content. LP Gas welcomes unsolicited articles, manuscripts, photographs,
illustrations and other materials but cannot be held responsible for their safekeeping or return.
Lock Americas Fill Valve Lock and POLock

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May 2016 LPGas | 5
EDITOR IN CHIEF | BRIAN RICHESSON
Nominations are open

Communicating action items on LP Gas Hall of Fame, Growth Summit
pril is a busy month for us at LP

Gas magazine.
Not only are we planning for
the propane industrys largest
trade show, the Southeastern Convention & International Propane Expo, but
were also planning for the annual LP
Gas Hall of Fame induction ceremony.
This year marked a milestone for
the LP Gas Hall of Fame, as we celebrated the fifth class of inductees. Bill
Byrne of Warren Petroleum Co., Robert Y. Love Sr. of Lampton-Love Inc.,
Daryl McClendon of DFM Enterprises
and Thomas Nunan Jr. of Suburban
Propane comprise that memorable
class (see page 30), honored at a blacktie dinner and ceremony last month in
Nashville, Tenn.
But as we reach that first major
mark on any timeline, our message
about the honor and the event bears
repeating, especially after one of our
most successful inductions, which drew
about 130 attendees to the Omni Nashville Hotel a day before the Propane
Expo.
We welcome your nomination of a
propane industry leader of the past
or present, someone who has helped
establish, advance and grow the industry in some way. As we like to say, these
people have moved the needle in a
positive direction for the industry.
While our list of nominees has
grown to about 80 in recent years, we
recognize other deserving individuals
remain at large and we want to ensure the industry is familiar with the
nominating process. Take some time to
think about those leaders you know.
Just like presidential candidates
encouraging the public to vote during
6 | LPGas May 2016
Lampton-Loves Rob Love accepts the

LP Gas Hall of Fame award for his father.
this primary election season, wed like

to send a similar message: Simply go to
lpgashalloffame.com (our new website
devoted to the LP Gas Hall of Fame)
and click on the Nominate tab. Tell us
in great detail who deserves induction
into the LP Gas Hall of Fame and why.
You can also find articles, videos and
event information on our new site.
An anonymous selection committee, including the LP Gas staff and
other industry members, considers the
submitted nominee information when
determining the next class of inductees.
The LP Gas Hall of Fame is truly a propane industry peer-driven honor.
Nominations for the 2017 class are
open through Sept. 30. Will the spotlight shine on one of your nominees
next April in Nashville?
LP Gas Growth Summit

We spend time at trade shows talking to propane retailers about their
businesses. And lately weve spent
time talking to them about the LP Gas
Growth Summit, a unique networking
event that launched last year.
Our promotions really ramp up in

April for the October event held at Reunion Resort in Orlando, Fla.
The propane industry has faced
changes, challenges and threats to traditional markets in recent years. The
LP Gas Growth Summit introduces
open-minded retailer decision makers
to vendors in growth markets so they
can consider new ways to expand their
businesses and create year-round propane demand.
In what we like to describe as a
speed-dating-type format, retailers and
vendors visit one on one in prescheduled 20-minute meetings before an
announcement shakes up the room for
a new round of conversation. Growth
markets on which we focus include au-
togas, commercial mowing, generators,

irrigation engines, tankless water heaters, technology and more.
This intimate event, in which LP
Gas covers retailers lodging, meals
and golf, is only open to the first 25
eligible attendees. Weve filled about a
quarter of available spaces, so please let
us know if you are interested in attending. Email me at my address below. For
more details, you can also view our ad
on page 63 or access videos from last
years event at youtube.com/lpgtv2. LPG
PhotoDrop
Charles Esten of the ABC drama Nashville
Daryl McClendon gives his
Sam and Ginny

McTier promote
Chelsea Summers,
5
6
Daryl Ingalsbe of
Independent Technologies (WESROC) explains
performs during his keynote address at the

Southeastern Convention
& International Propane Expo in
Nashville, Tenn.
acceptance speech upon

receiving the Propane
Education & Research Councils
Exceptional Energy Award in
Nashville. The propane industry
veteran was also inducted into
the LP Gas Hall of Fame.
the National
Propane Gas Associations
scholarship fund, benefiting
children of member
company employees, on
the Propane Expo trade
show floor. They hold signs
showing scholarship winners
Kolbe Sheetz and Hannah
Myers.
daughter of VFG Leasing

& Finances Bill Summers,
and Bryan West perform during
the Young Gassers reception at
the Hard Rock Cafe in Nashville.
details of the companys tank monitoring

system at LP Gas Propane Expo booth.
The Ditech Testing team poses with a Gibson
guitar that it gave away in a drawing at the

Propane Expo. Ron Brodwater (not pictured),
general manager at Midwestern Propane Gas Co. in
Belleville, Ill., was the lucky winner.
8 | LPGas May 2016
Go Out
on a
High Note
If you think its time to transition ownership, consider leaving on
a high note with Energy Distribution Partners. Because we take
an owners approach to the propane industry you can rest
assured that
Your business legacy will be preserved
Your customers will be well cared for
Your employees will be treated with fairness and respect
Your transaction will be structured to create a win-win
outcome
If you have a high-quality propane operation, well work with you
to structure a transaction that is music to your ears. Call Energy
Distribution Partners today for a conidential conversation.
Contact Brett Krause at 312.254.5954
EDPLP.NET
[NEWS
B R I E F S]
Improper cargo tank

inspections discovered
The Federal Motor Carrier
Safety Administration
(FMCSA) issued a safety
advisory to notify owners and operators that
some cargo tank motor
vehicles were improperly inspected and they
must be reinspected and
retested before continuing service.
According to FMCSA,
the advisory applies
to cargo tanks that
were inspected or
tested from April 2011
through March 2016
by H&W Tank Testing
in Ohatchee, Ala., or
Christopher Humphries
in Jacksonville, Ala.
Even though both
inspectors are based in
Alabama, the National
Propane Gas Association
recommends all members review their cargo
tank records. The association adds the notice
could affect members as
far as the Middle Atlantic
region.
Cargo tanks improperly inspected by these
facilities must be reinspected and retested
as soon as possible by
a cargo tank facility
registered with FMCSA.
Before resuming service,
cargo tank owners must
provide FMCSA with
documentation that all
affected cargo tanks are
properly reinspected and
retested.
Visit FMCSAs Safety
Advisory page at
fmcsa.dot.gov/safety for
more information.
INDUSTRY NEWS & NUMBERS
EIA: US to increase production of propane,

other hydrocarbon gas liquids through 17
.S. production of hydrocarbon gas

Between 2008 and 2015, hydrocarbon
liquids is expected to increase from
gas liquids production at natural gas pro3.86 million barrels per day (bpd)
cessing plants, including fractionation
in 2015 to 4.33 million bpd in 2017,
facilities, increased as a byproduct of the
according to theU.S. Engrowing supply of natural
ergy Information Admingas from shale gas and
Natural gas plants
istrations (EIA) Shorttight oil formations.
Term Energy Outlook.
In its Short-Term
are expected to drive
Hydrocarbon gas liqEnergy Outlook, EIA
uids include ethane, proexpects hydrocarbon
most of the growth.
pane, butanes and natural
gas liquids production
gasoline.
growth to continue to
Hydrocarbon gas
outpace natural gas proliquids are produced at both natural gas
duction growth in 2016 and 2017 as more
processing plants and petroleum refineries.
hydrocarbon gas liquids infrastructure
EIA says natural gas plants are expected to
projects are completed.
provide more than 95 percent of the foreAccording to EIA, ethane production
casted hydrocarbon gas liquids production
is expected to increase at a faster rate than
growth.
Continued on page 12
[ P R O PA N E M A S T E R L I M I T E D PA R T N E R S H I P CO M PA R I S O N ]
Fiscal Recent
Year Quarter Price
Current
Current Est. Tax
Company
End
End (4/15/16) Distribution Yield Deferral
AmeriGas (APU)
Sept. Dec. $42.67
$3.68
8.6% 75%
Ferrellgas (FGP)
July
Jan.
18.13
2.05
11.3
90
NGL Energy Partners (NGL) March Dec.
8.44
2.56
30.3
80
Suburban Propane (SPH)
Sept. Dec.
30.42
3.55
11.7
80
Average:
15.5%
Debt/
Capital
66%
97
64
59
72%
Total Units
Outstanding
(millions)
92.9
98.0
107.1
60.7
[ L A S T T W E LV E M O N T H S ]
Gross
Gross Gross Proit Gross Proit Retail Gallons Sold
Company
Revenue Proit
Margin
(Per employee)
(millions)
AmeriGas
$2,374 $1,423 60%
$167,418
1,139
Ferrellgas
1,267
646
51
178,208
569
NGL Energy Partners 1,093
236
22
75,991
164
Suburban Propane
1,054
687
65
188,338
456
Average:
49%
$152,489
Dollar igures in millions, except for per-unit data.
Revenue and gross proit data are based on total propane gallons sold.
Employee data is based on most recently completed iscal year.
NGLs revenue and gross proit data include the sale of distillates and
other natural gas liquids.
Percent
Change
-8%
-8
0
-10
-7%
Gross Proit
(Per gallon)
$1.19
0.80
0.16
1.51
$0.92
Sharon Lui analyst, Wells Fargo Securities LLC
Source: FactSet, partnership reports and Wells Fargo Securities LLC
10 | LPGas May 2016
MARCH
[NEWS
[ H E AT I N G D EG R E E - DAYS BY S TAT E ]
State
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
D.C.
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
March
218
1073
135
308
275
824
667
481
353
32
235
0
726
623
563
720
467
420
120
1011
473
729
784
875
195
480
818
625
329
871
581
Deviation
Deviation
From
Last 12
From
Norm
Months Norm
-128
2058
-796
-234
9400 -1839
-140
1879
-292
-124
2767
-757
-83
2168
-479
-86
6535
-906
-179
5060 -1041
-189
3763 -1003
-210
3180
-898
-46
410
-288
-123
2249
-649
0
0
0
-74
6120
-818
-207
5271
-1116
-208
4857 -1068
-180
6106
-989
-174
4227
-918
-176
3688
-952
-82
1294
-499
-60
7197
-855
-196
3935
-940
-162
5350 -1091
-167
5759 -1226
-246
7268
-1531
-111
1895
-681
-181
4288
-957
-155
6994
-1351
-202
5578
-978
-130
3301
-519
-147
6418 -1208
-182
4452 -1022
New industry venture

helps business owners
LOWER THAN HIGHER THAN

AVERAGE
AVERAGE
HEATING
HEATING
DEGREE DAYS DEGREE DAYS
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyomina
United States
481
658
305
891
580
331
624
603
682
223
768
379
138
665
945
409
590
504
825
896
450
-119
-209
-157
-305
-220
-132
19
-206
-158
-131
-224
-126
-83
-129
-152
-199
-50
-194
-195
-98
-143
4276
4837
2889
7799
4823
3063
4835
4927
5017
2224
6604
3345
1492
5918
7125
3621
4941
4379
6655
7349
3726
PERCENT
RETURN
NOT
MEANINGFUL
-582
-1312
-655
-1694
-1180
-706
-336
-1013
-903
-586
-1282
-676
-515
-725
-1027
-882
-595
-944
-1175
-991
-822
Data courtesy of the Climate Prediction Center/National Weather Service
[BY LEO MICHAEL]
B R I E F S]
Joe Stariha, former

co-president and chief
financial officer of Como
Oil & Propane, launched
Propane Strategies LLC, a
new business venture to
help the propane industry.
I founded Propane
Strategies this past fall
to help business owners in the propane
industry improve their
operational and financial
performance, Stariha
says in a press release on
Business North, a business
publication for northern
Minnesota and Wisconsin.
I am able to put my
expertise to work and
help business owners see
the results in their bottom
line very quickly.
Propane Strategies
services include strategic
planning, budgeting,
BRITE software training,
software system selections, propane supply
strategies, project management and business
valuations.
Stariha began his
career with Como Oil and
Propane as an accounting manager in 1996, and
the company promoted
him to serve as its copresident and CFO in
2010. During his time with
Como, Stariha helped
with 17 acquisitions.
Navien donates tankless

water heaters
Navien partnered with
Habitat for Humanity of
Orange County by donating six tankless water
May 2016 LPGas | 11
[NEWS
Continued from page 10

other hydrocarbon gas liquids in
2016 and 2017, as expanded petrochemical and export capacity
will provide new outlets for supply
and for more ethane to be recovered from raw natural gas. EIA
forecasts that natural gas plant
ethane production will increase
by 300,000 bpd between 2015 and
2017, accounting for two-thirds
Net propane exports

are expected to
increase to 740,000
barrels per day in 2017.
of total hydrocarbon gas liquids
production.
EIA reports the U.S. became a
net exporter of natural gasoline
in 2008, of butane and propane in
2011 and of ethane in 2014. Annual average net propane exports
increased from 10,000 bpd in 2011
to an estimated 500,000 bpd in
2015, as the capacity to export LP
gases increased by almost 1 million bpd.
In its Short-Term Energy Outlook, EIA expects net propane exports to increase to 640,000 bpd in
2016 and to 740,000 bpd in 2017, as
exports ramp up at two Gulf Coast
terminal projects that began operating in the second half of 2015
and at another project scheduled
to come online in the second half
of 2016. LPG
B R I E F S]
heaters for the nonprofits current
homebuilding projects in Cypress, Calif.
Navien donated six NPE-210S units to
Habitat for Humanity of Orange County
townhomes. The company adds 19 of
its employees volunteered with the
nonprofit to help with the cleanup of
some of the Cypress properties and to
provide lunch for all volunteers.
According to Navien, the townhomes
will soon house veterans and senior
citizens.
PERC approves funding requests

at Nashville meeting
The Propane Education & Research
Council (PERC) approved the following funding requests during its April
meeting in Nashville, Tenn. The principal contractor is noted in parenthesis,
where applicable.
$237,900 for 2016 professional and
support services, which will provide
the council with technical knowledge
and expertise and implementation
support of new products and market
opportunities. PERC says it has elected
to use outside consultants for the
project instead of additional staff.
$50,000 for the Carbon
Management Information Center
Consortium, which is intended to
serve the propane industry and its
customers by providing information
on the beneficial role propane plays
compared to electric and oil options
(Gas Technology Institute).
$34,446 for the development of
Certified Employee Training Program
refresher courses (Dashe & Thomson).
PERC is scheduled to meet next on
July 12-13 in Napa, Calif.
Fischer Tanks plans to launch tank

manufacturing business
Fischer Tanks announced plans to
launch a propane tank manufacturing
business, called Fischer Fabrication, in
August.
The company, which has supplied
refurbished tanks to the industry, displayed a model of its new tank design
at Aprils Southeastern Convention &
International Propane Expo.
We wanted to gauge interest levels
from retailers in our new product offering were launching, says Doug Fischer,
the companys general manager. We
saw a need to start tank manufacturing, as its increasingly hard to get a
good 500- or 1,000-gallon tank to refurbish to meet demand.
Fischer says the company will first
release a 500-gallon aboveground tank
model in August and will later release a
1,000-gallon aboveground tank model.
The company will also continue with its
refurbished tank line, he adds.
Pembina to conduct feasibility study

on proposed PDH facility
Pembina Pipeline Corp. and the
Petrochemical Industries Co. K.S.C., a
subsidiary of Kuwait Petroleum Corp.,
plan to put together a feasibility study
for the evaluation of a world-scale
combined propane dehydrogenation
and polypropylene upgrading facility
in Alberta, Canada.
According to Pembina, the project is
an opportunity to develop new market demand for propane in Alberta.
Over the past decade, about 85
percent of Albertas propane production has been exported across North
TankLink is now SkyBitz Tank Monitoring
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The combination of wireless tank monitors and tank

inventory data from SkyBitz Tank Monitoring allows for
more efficient tank fills, fewer truck rolls with the most
efficient routing, and better overall customer service.
SkyBitz Tank Monitoring provides us the timely

and accurate tank data needed to bring
technology to bear when it comes to
controlling distribution costs, from the office
all the way to the driver. Our people always
know exactly where they need to go, when,
and with how much propane. SkyBitz gives
us the ability to do all that with no upfront
equipment expense. They are a key partner
in helping us service our customers and
lower our distribution costs.
Chuck Kinnie
President
[NEWS
B R I E F S]
America. The company adds developing Alberta-based, value-added
infrastructure will increase the areas
propane demand, benefiting Albertas
oil and gas producers, as well as the
province by increasing regional economic activity.
If the project moves forward
beyond the study, Pembina says the
facility could consume about 35,000
barrels per day (bpd) of propane and
produce up to 800,000 metric tons
per year of polypropylene. The polypropylene would be transported in a
pellet form to markets across North
America and internationally.
With access to the largest supply
of propane in the Western Canadian
Sedimentary Basin, Pembina says it
is capable of facilitating this projects
development. Once the construction
of Pembinas remaining third fractionator is complete, the company says it
will have more than 200,000 bpd of

fractionation capacity and will control
about 60,000 bpd of propane supply in the Fort Saskatchewan area of
Canada.
Hydrocarbon logistics system

to receive LP gas, reined products
Rangeland Energy initiated the development of the South Texas Energy
Products System (STEPS), an integrated hydrocarbon logistics system.
According to the company, the
system will receive and store refined
products, LP gas and other hydrocarbons at a new terminal hub in Corpus
Christi, Texas, and transport them to
terminals primarily located in Mexico.
Refined products and LP gas will
move out of the terminal primarily by
rail, but the terminal will eventually
connect to pipelines and vessels.
Marine facilities will be added to the
system in Corpus Christi during future
phases, along with infrastructure to

accommodate additional commodities, Rangeland Energy says.
The terminal is expected to go
online during the first quarter of 2017.
Initial rail shipments will begin, with
the facility accommodating unit trains
later in 2017.
Williams second ofgas processing

plant opens in Canada
Williams Cos. Inc.s new offgas liquids extraction plant north of Fort
McMurray, Alberta, Canada, is now
operating, the company announced.
The companys second offgas liquids
extraction plant recovers ethane, propane, propylene and other liquids from
an upgraders offgas streams. Williams
then transports, fractionates and markets the products.
Following the extraction at the
upgrader, the natural gas liquids and
THE SOCIAL SCENE

A sampling of notable tweets and posts from LP Gas
social media pages.
twitter.com/lpgas_mag
facebook.com/lpgasmagazine
ONE EASY
@mfaoil acquires Brownfield Oil Co. in Moberly, Mo.,

the companys fifth acquisition of its fiscal year.
@Nashville_ABCs Charles Esten shares stories about
TANK MOVER
One tank carrier, one utility trailer, one operator

and youre in business with the EZTC206 from
Renaldo Sales. Installing or removing residential
propane storage tanks has never been easier.
Moves 250 to 1000-gallon tanks. See the industry
standard at www.renaldo.org or call 800-424-5564.
his career at @NPGAPropanes Southeastern show.

#NPGA16
Mike Taylor of the @PropaneCouncil says: Some
people think #autogas is only for the big guys. Thats
not true. #NPGA16
WLPGAs Cecile Nourigat: South Korea No. 1 propane
autogas market globally with 2.4 million cars on LPG.
Russia 2nd, Turkey 3rd.
Mike Sloan of @ICFI says #propanes use in internal
combustion engines offers significant growth
opportunities for the industry. #NPGA16
The World LPG Association has set up an LPG/
propane applications database online at http://www.
lpg-apps.org. #NPGA16
Renaldo Sales & Service, Inc | North Collins, NY

Manufactured and Distributed in the USA
14 | LPGas May 2016
FOCUSED
ON PROPANE.
MORE THAN EVER.
Ferrellgas has made headlines recently by completing several non-propane
acquisitions. Its part of a larger strategy we have in place to diversify our
business. But weve been a propane company for nearly 80 years now, and
were more focused than ever on growing our core business. Thats why, if
youre thinking about selling your business, we want you to give us a call.
Weve purchased more than 235 family-owned propane businesses through
the years. People turn to us because were fair, honest, and more than happy
to work at the sellers speed. Put another way, we treat people how wed
want to be treated if roles were reversed.
Thinking about selling your business?

Give Ferrellgas a call today to arrange a
confidential discussion about your options.
ERIC KRUGER
NANCY COOP
VP of Propane Acquisitions
Business Development Executive-West
913-661-1540
510-418-7839
EricKruger@ferrellgas.com
NancyCoop@ferrellgas.com
J.D. BAIN
Business Development Executive-East
352-250-5675
J.D.Bain@ferrellgas.com
[NEWS
B R I E F S]
olefins mixture is transported by
Williams recently extended Boreal
Pipeline to its expanded Redwater
Olefinic Fractionator. Most of the
propane is expected to feed Williams
planned propane dehydrogenation
facility near Edmonton for the production of polymer-grade propylene.
TankLink restructures, rebrands

as SkyBitz Tank Monitoring
TankLink changed its name to SkyBitz
Tank Monitoring as part of a corporate
restructuring.
The company promoted its new
name at the Propane Expo last month
in Nashville, Tenn.
www.cavagnagroup.com
Carl Whitmire, channel marketing manager at Telular Corp., says

TankLinks parent company, Telular,
chose to consolidate a few of its business units in January to fall under the
SkyBitz brand.
SkyBitz is a brand that started in
vehicle tracking using satellite technology, Whitmire says. After Telular
bought SkyBitz, the company also
purchased our brand, TankLink. Within
a few years, the owner thought it was
time to consolidate the businesses.
Whitmire says the consolidation will
allow SkyBitz to provide more tank
monitoring engineering to support
propane retailers.
The name change gives us more of
a broad footprint, adds David Mack, a
sales engineer with SkyBitz. With the
new name and consolidation, we have
a little more buying power.
[ PEOPLE]
Michigan Propane Gas
Association
SAVE MONEY
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NFPA is a mark owned by National Fire Protection Association
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Save money, time, and ensure safety of your installation from
potential leaks. Watch the Kosan + Guardian Tutorial on YouTube!
Dick Lowe, who served the association as president in 1963 and 1964,
died at the age of 90. Lowe founded
Lowes Gas in 1948 in Dimondale,
Mich., behind the support of 23
customers. Lowes business grew
over the years, lasting four generations. He sold the business to a
family member in 1965, and it was
renamed Lowe Bros. & Dad Inc.
Lowe switched industries in the
latter half of his career to operate a
construction company in Florida. He
retired from a senior management
position with a construction company in Naples, Fla.
RegO
Cavagna North America Inc.
50 Napoleon Court, Somerset NJ 08873
Phone 732-469-2100 - Fax 732 469 3344
Cavagna West
1393 Dodson Way-A Riverside, CA 92507
Phone 732-469-2100 - Fax 732 469 3344
Info@cavagna.com
16 | LPGas May 2016
The manufacturer of valves, regulators and fittings began the year under
new leadership. Lou Rosen joined
the team as president and CEO in the
second half of 2015. In the past, Rosen
[ PEOPLE]
worked in a variety
of leadership positions in energy and
manufacturing
companies, both
domestically and
abroad. At Eaton
Corp., Rosen served
as senior vice presiRosen
dent and general
manager, working with facilities around
the world. Rosen has also held leadership roles with Halliburton and General
Electrics Industrial
Systems business.
BASE
Engineering
Mark Straka
was appointed
as the new vice
president for BASE
Engineering USA
Straka
Corp. He will be
responsible for the
companys U.S. sales
and operations,
and assist with its
global expansion.
In addition, the
company hired
Damon Boyer as
Boyer
senior sales executive of truck mobility solutions. He will
help to promote the ProControl 3 truck
automation platform to oil and gas
businesses.
White Mountain Oil & Propane

Curtis Reynolds was appointed as service department manager. He will oversee the entire service crew and delivery
of mechanical service and installations
to all customers. Reynolds has worked
for the company for 16 years, providing
support to customers through both the
sales and service departments.
Iowa Mold Tooling Co.

Tom Wallace was
promoted to sales
manager. He will
direct the IMT sales
team to further
strengthen the
companys distributor network and
grow tire service
Wallace
sales.
Leran Gas Products

Tom Cheatham was appointed as
an outside sales
representative
for the Southeast.
Cheatham will
cover Alabama,
Florida, Georgia,
Mississippi and
Tennessee for the
wholesale distribuCheatham
tor company.
SMALL INVESTMENT.
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of time. A big return. Register at ResidentialMarketGrowth.com today.
YOUR HOMEOWNERS
DESERVE BETTER
SET YOUR PROJECTS APART

WITH PROPANE WATER HEATING.
Install propane water heaters in the homes you build, and
youre giving homeowners the comfortable, consistent hot
water they demand, plus efficiency and savings they cant get
with other models. Its better for builders too: propane water
heaters also easily meet the updated National Appliance
Energy Conservation Act standards.
HOT WATER.
BUILDING IN VALUE WITH
PROPANE WATER HEATING

PROPANE STORAGE TANK AND TANKLESS WATER HEATERS EASILY OVERCOME THE CHALLENGES OF NEW NAECA STANDARDS.
PROPANE STORAGE TANK WATER HEATERS
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In valuation of all-propane homes

compared with all-electric homes.
LESS FLOOR SPACE

THAN STORAGE TANK MODELS
In a size thats easier to install in tight spaces.
UP TO
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In annual energy costs compared with
electric or heating oil water heaters.
WHY CHOOSE PROPANE?
5% INCREASE
12 SQUARE FEET
AS 50-GALLON ELECTRIC MODELS
20% SAVINGS
SAVINGS
In annual energy costs compared with
electric storage tank water heaters.
THE
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COOKTOPS
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For information:
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Include information about appliance
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available in your area.
YOU CANT BEAT THIS HEAT.
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Blue Flame Blog

PROPANE-RELATED REFLECTIONS FROM WWW.LPGASMAGAZINE.COM
| KEN ALBRECHT
Employees relate to business leaders who drop pretenses

Someone once asked Dolly Parton
how long it takes her to do her hair.
She responded, I dont know. Im
never there. She may not look it, but
the popular singer and actress recently turned 70. Her wig (or pretend
hair) makes her look much younger.
Like Dolly Partons pretend hair,
businesspeople also pretend from
time to time. When a local university
sponsored a seminar, several prominent businesspeople were invited to
explain how they became successful.
Each presenter was impressive, but
some audience members began to
grow uneasy. The levels of success the

presenters described they had experienced seemed to be well beyond the
reach of the average person.
The last executive to speak was
well known for owning and operating
many successful businesses. He began
by saying, Im going to share with you
the 12 biggest mistakes I have made
over my career. The entire audience
turned its attention to him. One by
one, he listed mistakes in judgment,
timing and occasionally getting in
over his head in businesses that he
didnt understand. No pretending.
The embellished presentations of

success from the first speakers were
disheartening. But making mistakes is
within anyones grasp. We can all do
that!
Stop pretending and tell it like it is.
Once pretense is dropped, others will
be able to depend on you and benefit
from your knowledge and experience.
Oh, and happy birthday, Dolly
Parton. I love the hair. LPG
Ken Albrecht is president of Reliable
Propane in Clarence Center, N.Y.
Visit www.reliablepropane.com.
LEARN MORE
INVEST IN YOUR PEOPLE.

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can be hosted by a state association or individual companies (minimum 10 attendees). Best
of all, the sessions are absolutely free. Invest in your people with MTST, and ignite your sales.
To learn more, or to schedule an MTST session, visit propanecouncil.org/MTST.

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To see a list of scheduled

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propanecouncil.org/MTST
or call 202-452-8975 for
more information.
FOCUS ON
SPONSORED BY
CleanFuel USA restructuring operations under Chapter 11
leanFuel USA announced it filed

voluntary petition under Chapter 11 of the U.S. Bankruptcy
Code in the Bankruptcy Court
for the Western District of Texas, seeking the restructuring of its debts.
As a result of the Chapter 11 filing, CleanFuel USA says it expects to
receive debtor-in-possession financing
to allow for its reorganization. Both the
debtor-in-possession financing and the

companys cash from operations are expected to provide sufficient liquidity to
allow continued operations during the
Chapter 11 process.
We are taking this action so we can
continue to strengthen and adapt our
business to meet the changing dynamics in the alternative fuel industry,
says Curtis Donaldson, founder and
president of CleanFuel USA, in a press

release. We intend to use the Chapter
11 process to reorganize our financial
and operational structure, and position
the company for the future.
During its restructuring, the company says it plans to continue to operate
as usual by taking on customer orders,
paying vendors and offering the same
services its been known for since 1993.
Retailer, landscaper
partner on project
Dispensing station auction winner

Stuart Weidie, president and CEO of Blossman Gas, third from left, won a vertical propane autogas dispensing station during a Southeastern Convention
& International Propane Expo auction benefiting the National Propane Gas
Associations (NPGA) scholarship fund. Weidie bid $40,000 for the unit, with
proceeds going to children of NPGA member company employees. Industrial
Propane Service Inc. (IPS) and Quality Steel Corp. partnered on the project to
help raise scholarship funds and awareness of autogas. Pictured here, from
left, are Jeff Vandemark of IPS, Lynn Hardin of Quality Steel, Weidie, David
Reynolds of Blossman Gas, Kim Godlewski of IPS, Virgil Mullins of Quality Steel
and Rob Vandemark of IPS.
S2G: A REAL WORK TRUCK.

Learn more and start building your S2G today at
FCCCcommercial.com/S2G, or by calling Freightliner
Custom Chassis at (800)FTL-HELP. For ordering
details, contact your local dealer.
20 | LPGas May 2016
ProGas Inc., based in Zelienople, Pa.,

partnered with Sarver Landscape
Maintenance Co. of Wexford, Pa., to
help the lawn and landscaping company replace six of its gasoline-powered
mowers with propane models.
According to Shale Media Group,
Sarver Landscape Maintenance
reached out to ProGas during the TriState Alternative Fueling Expo, where
ProGas featured an exhibit on using
propane mowers and small engines.
Sarver Landscape Maintenance
purchased six John Deere propanepowered mowers from West Central
Equipment in Butler, Pa., after the
show. Shale Media Group reports the
propane mowers now make up onethird of Sarver Landscape Maintenances fleet.
ProGas installed a 1,000-gallon filling station at Sarver Landscape Maintenances location, which provides aluminum cylinders to fit on the mowing
equipment.
ProGas also helped the landscaping
company apply for the Propane Education & Research Councils Propane
Mower Incentive Program, giving the
company $1,000 toward the purchase
of each new propane mower.
Roush CleanTech develops propane autogas system for Ford F-750

Roush CleanTechcreated a propane autogas fuel system for the Ford F-750 chassis.
The company says it developed the model
in response to demand for an autogas-fueled medium-duty chassis for bobtail applications, cylinder delivery trucks and larger
tank setters and box trucks. The Ford
F-750 base model comes with a 50-usablegallon fuel tank. Roush CleanTech adds an
extended tank option is available. Victory
Propane, a propane retailer in Michigan,
says it plans to integrate the Ford F-750
truck with Roush CleanTechs autogas
fuel system into its fleet. The first production propane-powered Ford F-750 with a
3,200-gallon barrel was on display during
the National Propane Gas Associations
Southeastern Convention & International
Propane Expo in Nashville, Tenn.
The propane-fueled Ford F-750 chassis built as a bobtail was on display in the
Roush CleanTech booth at the Propane Expo in Nashville, Tenn.
[NEWS BRIEFS]
Vision buses. Pennsylvanias Derry

Township School District added three
Blue Bird Propane Vision buses to its
fleet for the 2015-16 school year, and
it plans to continue rolling out propane autogas buses in the coming
years. Roush CleanTech supplied the
propane autogas fueling system in
each of the vehicles.
CleanFuel USA director
announces retirement: Mike

Merwarth, CleanFuel USAs director of dispenser infrastructure,
retired from the company earlier
this year. According to CleanFuel
USA, Merwarth began his career in
the alternative fuel industry about
50 years ago, working in the propane and natural gas segments.
Merwarth served as a key member
of the CleanFuel USA team that
helped to develop the propane
autogas market. He worked as a
technical consultant and interdisciplinary liaison for propane autogas
infrastructure projects in the United
States, Africa, India, the Caribbean
and Central America. During his
retirement, Merwarth wants to get
more involved in his ministry at
CrossBridge Community Church in
San Antonio, and he hopes to work
as a voluntary construction lead
with Strategic Alliance, building tiny
houses to help people in Reynosa,
Mexico.
School districts across the country

continue to add propane-fueled buses.
School districts power bus fleets
with autogas: The Grace School

District in Grace, Idaho; the Washoe
County School District in Reno, Nev.;
and the Derry Township School
District in Hershey, Pa., have adopted
propane autogas into their bus fleets.
The Grace School District integrated
its first school bus fueled by propane
autogas a new Blue Bird with a Ford
6.8-liter V10 engine. The Washoe
County School District has 47 school
buses that run on propane autogas:
12 Type A Propane Micro Bird buses
and 35 Type C Blue Bird Propane
Alabama Department of
Corrections converts vans: The

Alabama Department of Corrections
partnered with Icom North America
to convert 72 of its prison workrelease vans to run on bi-fuel using
Icoms liquid injection propane systems. Andy Farquhar, director of the
Alabama Department of Corrections,
says the department used Icoms JTG
II conversion kits on its Ford E-350
prison work-release vans. Icom adds
that Precision Sales & Service, a company that performs alternative fuel
conversions, helped to install the
conversion kits. Buddy Gamel, owner
of Precision Sales & Service, says the
Icom systems fit the departments
needs.
May 2016 LPGas | 21
[IN
T H E K N O W: P R O PA N E E X P O ]
Q
A
What were your first impressions of Nashville

as a new Propane Expo host city and what did
you learn about attendees on the show floor?
Change is something that causes many people to

experience the negative feelings of fear, dread and
anxiety. Other people see change as an opportunity to seek new adventures.
This year, the National Propane Gas Association (NPGA)
challenged everyone in the propane industry with change by moving its Southeastern Convention & International
Propane Expo from the longstanding
Atlanta venue to Nashville, Tenn.
From the many and varied conversations with both attendees and exhibitors,
the response to the move was overwhelmingly positive.
Tamera Kovacs
According to NPGA, more than 4,100
people attended this years show record numbers that were
up about 1,000 from last year with 270 exhibitors set up on
the trade show floor.
Nashville is experiencing a growth boom, with more than
80 people per day moving to the city. There were more than
20 cranes across the skyline working to accommodate the
rapid growth. The energy of the Propane Expo was a reflection of the citys energy. Everyone was optimistic and excited,
even with Mother Nature throwing many retail propane
marketers a curveball this winter.
Nashville as a host city for the Propane Expo was well
received with mostly positive comments. Warm hospitality,

friendly service and a clean, safe environment were but a few
of the many compliments given to the city.
The Music City Center venue also received very similar
compliments from both the attendees and vendors. Everyone
was enthusiastic about the many opportunities within walking distance to spend time networking and relaxing.
Among all of the compliments given to the host city, there
were only two negative comments that could be tied somewhat to the citys growing pains: the lack of good places for
dinner without a two-hour wait and the higher cost of hotels.
Yet, in the same breath, it was said that it was nice having a
choice of hotels in close proximity to the events.
The energy and excitement was overwhelmingly positive on the show floor. The conversations seemed to have
a common theme of growth and opportunity. While the
theme was the same, the individual focus was specific to
each persons goals.
As with any change, the move to Nashville forced attendees to change their routines. I once had a business development person say he never takes the same route twice because
if he did he would miss opportunities. The same is true for
this years change in venue. With the focus on growth and
an increase in retailer and vendor attendance levels, there
seemed to be an increase in industry business, partnerships
and fellowship. LPG
Tamera Kovacs is a financial consultant and industry expert
in business valuations and sales with Propane Resources. She
can be reached at tamera@propaneresources.com or call her
at 913-262-0196.
Mark your calendars: Nashville will play host to the Propane Expo again next year before the event returns to Atlanta for two years.
22 | LPGas May 2016
We Know the Road to Closing.
Up and down years. Challenges and opportunities. Youve seen

your share and youve enjoyed success. But you are now ready
to move on from the business youve labored to build.
We can help you value and sell your business with a competitive
and confidential sale process. We will steer you through its many
twists and turns.
And do so with knowledge, experience, and integrity.
Contact us for a confidential discussion.
Steve Abbate
Managing Director/Principal
860.592.0089
sabbate@cetane.net
Doug Woosnam
Managing Director
610.866.2885
dwoosnam@cetane.net
Joshua Wolf
Managing Director
713.494.4699
jwolf@cetane.net
[ E V E N T S]
MAY 22-25 NPGA Presidential
Summit, Board Meeting and Propane

Days in Washington, D.C. For more
information about the event, contact
Katie Hathaway at khathaway@npga.
org or 202-355-1335.
MAY 23-26 2016 North Central

Convention & Trade Show for Iowa,
Minnesota and Wisconsin propane
association members in La Crosse,
Wis. For more information, contact
Deb Grooms at dgrooms@
iapropane.org or 515-564-1260.
JUNE 7-9 66th Annual North Dakota

Propane Gas Association Meeting at
the Rough Riders Hotel in Medora, N.D.
For more information, visit
www.ndpropane.org.
JUNE 13-16 Tennessee Propane

Gas Association Annual Convention
at the Perdido Beach Resort in

Orange Beach, Ala. For more information, contact Ginger Raffield at
graffield@tennpropane.com.
JUNE 19-21 Alabama/Louisiana

Joint Convention at the Perdido
Beach Resort in Orange Beach, Ala.
For more information, contact Lisa
Hill at lisa@alabamapropane.com or
334-358-9590.
JUNE 20-21 West Virginia Propane

Gas Association Meeting and Bobtail
Rodeo at The Inn at Charles Town
in Charles Town, W.Va. For more
information about the event, contact
Tom Osina at wvpga@aol.com or
888-441-5454.
JUNE 22-24 Colorado-New Mexico

Convention at The Antlers hotel in
Colorado Springs, Colo. For more information, contact Darlene Hawk-Meigs at
ITS ARRIVED
dhawk@npga.org or 941-347-7596.
JUNE 22-24 Pennsylvania Propane

Gas Association Annual Meeting at
Kalahari Resorts & Conventions in Pocono Manor, Pa. For more information,
contact Shelby Metzger-Bell at shelby@
papropane.com or 717-441-6040.
JUNE 22-24 Joint Propane Gas As-
sociation of New England/New York

Propane Gas Association Summer
Meeting at The Sagamore Hotel in
Boltons Landing, N.Y. For details, contact Caryn Gwizdala at caryng@pgane.
org or 888-445-1075.
JUNE 27-30 Mid-States Propane

Expo and Trade Show at the Branson
Hilton Convention Center in Branson,
Mo. For details, contact Estelle Zewe at
estelle@missouripropane.com.
JULY 12-13 PERC Council Meeting in

Napa Valley, Calif. For details, contact
Anna Lombardo at anna.lombardo@
propane.com or 202-452-8975.
BLUELINE
QX BOBTAIL
Get 15% MORE payload with

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JULY 17-19 Virginia Propane Gas

Association Summer Meeting at the
Hilton Virginia Beach Oceanfront Hotel
in Virginia Beach, Va. For more information about the event, contact Darlene
Hawk-Meigs at dhawk@npga.org or
941-347-7596.
JULY 27-29 Pacific Propane Gas

Association Summer Meeting at the
Semiahmoo Resort in Blaine, Wash. For
more information about the event, visit
www.pacificpropane.org.
JULY 29-AUG. 1 Crossroads Propane

Expo & Conference at the Fort Worth
Convention Center in Fort Worth, Texas.
For more information about the event,
visit www.crossroadspropexpo.com.
Westmor-ind.com
24 | LPGas May 2016
(800) 992-8981
AUG. 10-11 Northeast Propane Show

at the Holiday Inn in Boxborough, Mass.
For more information about the event,
contact Caryn Gwizdala at caryng@
pgane.org or 888-445-1075.
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75 T H A N N I V E R S A R Y
Advertising
[ S T R AT E G I E S ]
Small-town newspapers, radio popular outlets in 1941

Advertising strategies have been a
hot discussion item in the propane
industry lately, as the U.S. Commerce
Department lifted a restriction on
advertising efforts in the propane
industry last year and the Propane
Education & Research Council developed a $10 million consumer education campaign, dubbed Blue.
LP Gas magazine looked back at the
advertising strategies the industry

used during the magazines inaugural
year. In 1941, propane retailers werent
shy about advertising, as that propelled propane sales. Some common
methods propane retailers used to
advertise propane and gas appliances
included direct mail, newspapers, billboards, postcards, flyers and posters.
LP Gas magazine ran a feature on
best advertising strategies in May

1941. Based on that feature, smalltown newspapers served as one of the
best ways to advertise, as it was costeffective and seen by many people.
Radio advertisements also worked as
an advertising strategy, as long as a
retailer was willing to run a commercial
consistently on local stations.
[Advertising] becomes increasingly important as our business grows, and

those of us who have been in this business for many years are perhaps more
aware of its importance than a newcomer might be. [Advertising] is a must
in this business.
F.W. Frost, sales promotion department at Pyrofax, a propane retailer in 1941
[ O U T- O F -T H E - B OX
ADV E R TISI N G]
Retailers host cooking schools, post ads on trailers

Retailers sometimes used nontraditional advertising methods to reach out to
new customers. Some retailers gained new customers by promoting propane
and related appliances at booths during local and state fairs. Occasionally, propane retailers who sold gas appliances also hosted cooking schools to promote
propane appliances in the community. One retailer in Wisconsin benefited
from this method by hosting a cooking school event. The retailer also thought
outside the box, creating advertisements to post on trailers. The company
drove the trailers around its community to serve as a moving billboard.
26 | LPGas May 2016
Thinking about
selling your business?
Youre in good company with us.
As the countrys leading provider of home heating oil, Star Gas Partners, L.P. understands and
respects everything that youve done to build your business. A decision to sell to us ensures that
your companys legacy, identity and reputation will be preserved and protected in the community.
We also understand the complexity of acquisitions and how critical it is for you to be able to work
through the transition process seamlessly, while still running your business.
Star Gas Partners, L.P. is actively searching for heating oil and propane companies to add to our local
family. If you are considering selling yours, call us today for a discreet and confidential consultation.
Steve Goldman | President/CEO | 516.686.1615

Jeffrey Woosnam | SVP, Operations | Mid-Atlantic Acquisitions | 215.942.5008
Neil Bianco | SVP | New York & Northeast Acquisitions | 516.307.4802
2015 Star Gas Partners, L.P.
S O U T H E A S T E R N CO N V E N T I O N
Blue Flame Blog
PROPANE-RELATED REFLECTIONS FROM WWW.LPGASMAGAZINE.COM
| KEVIN YANIK
Nashville lives up to pre-Propane Expo hype
28 | LPGas May 2016
A view of the trade show floor from above at Nashvilles Music City Center.
between Nashville and Atlanta in

2020 and 2021, respectively.
Everyone I spoke with in Nashville
about the show shares the same
enthusiasm about the return to the
Music City in 2017. As one Propane
Expo vendor explicitly told me: The
hard part will be leaving Nashville
and returning to Atlanta.
Maybe well long for Atlanta again
once weve experienced two full
years of Nashville, but I dont see that
happening. I anticipate the National
Propane Gas Association will be
flooded with requests for the show
to stay in Nashville.
Atlanta, of course, has its advocates who will continue to lobby for
the Propane Expo being held in the
Peach State. But Nashville, based on
merits alone, wins out over Atlanta.
Arguably the biggest advantage
Nashville offers is its compact foot-
print. A number of hotels are within

walking distance of the Music City
Center, surrounding restaurants and
Nashvilles country music scene.
The same cant be said of Atlantas
Georgia World Congress Center,
which is less centralized and does
not offer nearly the range of walkable hotel, restaurant and entertainment options.
Atlanta has a lot going for it, but
its hotels, restaurants and entertainment are scattered. Downtown
Atlanta shuts down relatively early,
while Nashvilles Broadway is buzzing with options late into the night.
Im eager to see how year two in
Nashville compares to this first show
in the Music City. Maybe some of
that country music charm wears off
the second time around. Maybe well
long for change after a couple years
in the same spot. LPG
ISTOCK.COM/JACOBH
he LP Gas staff fell in love with

Nashville, Tenn., last month.
So did the rest of the propane industry that attended
the Southeastern Convention &
International Propane Expo.
The state-of-the-art Music City
Center blew us away. The food
around town still has us talking. And
the Broadway experience just a
couple of blocks from the Propane
Expo kept the industry connected
and entertained with live music long
after the show ended each day.
Over and over at the show, we
heard from vendors, marketers and
allied trade representatives how
much they were enjoying Nashville.
The same people remarked how the
Music City offers so much more than
Atlanta, which has been a long-time
home of the southeastern-based
show.
Atlanta has been a good home
for the Southeastern Convention.
The show would not have been held
there for more than 60 total years
first as a regional event and later as
the national associations flagship
event if it werent a welcoming
location for the industry.
But Nashville made a strong argument in its first attempt to become
the new Propane Expo home. We,
like many within the industry who
attended the 2016 show, cant wait
to return to the Music City in 2017.
The level of enthusiasm for 2018
isnt quite the same, though, as the
Southeastern Convention returns to
Atlanta that year.
The show will be held in Atlanta
in 2019, as well, before rotating
S O U T H E A S T E R N CO N V E N T I O N
NPGA: Propane Expo

attendance up more
than 30 percent
Above, attendees have an interest in Tradewinds Power Corp.s twin-engine setup

of an EDI 10-cylinder, 6.8-liter engine. The unit is common in agriculture irrigation
and industrial applications. Below, an educational session takes place.
Total attendance at the

Southeastern Convention &
International Propane Expo was up
this year, the National Propane Gas
Association (NPGA) reports.
According to NPGA, more than
4,100 people attended this years
show, which shifted to Nashville,
Tenn., from Atlanta. The attendance
was a record, the association says.
Last year, NPGA reported more
than 3,000 total attendees gathered
for the Propane Expo in Atlanta.
The year before, the association
reported more than 2,900 people
attended the show.
In addition, NPGA reports 270
exhibitors set up at the Music City
Center in Nashville this year compared with 230 in 2015.
The Propane Expo returns to
Nashville in 2017 before shifting
back to Atlanta in 2018 and 2019.
The show will rotate between
Nashville and Atlanta in 2020 and
2021, respectively.
Did you miss LP Gas live coverage
of the 2016 Propane Expo? Check
out our coverage, including videos,
at lpgasmagazine.com.
Above, this Motovox mini bike converted by

Precision Sales & Service to run on propane
was one of the eye-catching products on the
trade show floor at the Music City Center. At
right, Propane Expo attendees get a close
look at a JARCO bobtail.
May 2016 LPGas | 29
L P G A S H A L L O F FA M E
A black-tie affair
Four new members
inducted, featured as
part of fifth class during
celebration in Nashville
he LP Gas Hall of Fame enshrined

its fifth class of inductees in Nashville, Tenn., where Bill Byrne (Warren Petroleum Co.), Robert Y. Love
Sr. (Lampton-Love Inc.), Daryl McClendon (DFM Enterprises) and Thomas
Nunan Jr. (Suburban Propane) were inducted before more than 125 of their peers.
Byrne and McClendon attended the
ceremony at the Omni Nashville Hotel, reflecting on their storied careers upon being
inducted and honored. Family members
represented Love and Nunan, who were
both inducted posthumously.
Considering the case for each hall of The 2016 class and its representatives, from left: Rob Love (son of Robert Y. Love
Sr.), Bill Byrne, Katie Nunan (daughter of Thomas Nunan Jr.) and Daryl McClendon.
fame nominee, you get a sense of the work
these individuals have done for the propane
industry, the effort theyve made and their leadership quali- way that would help marketers with their promotional efforts.
ties, says Brian Richesson, editor in chief of LP Gas magaAs board president of the National LP-Gas Association in
zine, about the annual process.
1986-87, Byrne promoted cooperative relations between marketers and refiners.
Bill Byrne
Propane companies also relied on his knowledge and exByrne, who resides in Tulsa, Okla., is celebrated for the lead- pertise. Heritage Propane tabbed Byrne for its board of direcership role he took on pertaining to supply and pricing issues. tors, using his leadership background with the national assoHis connections with governmental agencies were crucial to ciation and his knowledge of supply and logistics processes
the strength and growth of the propane industry.
to help the new retailer gain traction in a crowded group of
Byrne, the former vice president of marketing for propane competitors. He also sat on the boards of the Energy Transfer
supplier Warren Petroleum, also played a part in seeing that an companies.
industry checkoff program was revived and reorganized in a
Byrne became principal of Byrne & Associates LLC in 1992
With special thanks to our LP Gas Hall of Fame sponsors:

Founding Sponsor
30 | LPGas May 2016
LP Gas Hall of Fame members

The additions of Bill Byrne, Robert Y. Love Sr., Daryl
McClendon and Thomas Nunan Jr. take the total number
of LP Gas Hall of Fame inductees to 28. The hall of fame
launched in 2012, propanes centennial year, as a way to
honor the legends, icons and leaders who have helped
establish, advance and grow the propane industry. The
hall is open to any living or nonliving propane industry
employee, working at any level of his or her company, or
having retired. Heres a list of current hall members:
Says Warren Petroleums Bill Byrne: This industry is a group of
people that I will cherish all my life.
after retiring from Warren Petroleum and completing a 40year career.

This industry is a group of people that I will cherish all
my life, Byrne says. All of the inductees are true gentlemen
in every sense of the word.
Robert Y. Love Sr.

Love was highly respected among
his peers during his many years in
the industry. He was the co-founder
of Lampton-Love, a propane retailer
servicing southeastern states. Those
who knew Love say his cautious nature and determination made the industry better.
Love Sr.
The Mississippi native devoted
much of his energy to state and national propane industry associations, ascending to board
president at both levels and earning accolades along the way.
Love served in every capacity with the Mississippi Propane
Gas Association and received special recognition for 25 years
of dedicated service to the association.
Mark Anton, Suburban Propane

James E. Bertelsmeyer, Heritage Propane
Eugene V.N. Bissell, AmeriGas
John Blossman, Blossman Gas
Bill Byrne, Warren Petroleum Co.
Ronald Zane Chastain, LP Gas magazine
James Ferrell, Ferrellgas
William C. Hill, Pargas
Herbert V. Hills, Imperial Machine Products Co.
Casey Jarvis, JARCO
Walter H. Johnson, Liquefied Petroleum Gas
Association
Stewart Kean, Utility Propane Co./World LPG

Association
Robert Y. Love Sr., Lampton-Love Inc.

Daryl McClendon, DFM Enterprises
William B. McHenry, Pro-Gas Sales & Service
Sam McTier, McTier Supply Co.
Glenn Miller, Millers Bottled Gas
Daniel N. Myers, National Propane Gas Association
Robert Myers, Petrolane
Robert B. Nicholson, Eastern Propane Corp.
Thomas Nunan Jr., Suburban Propane
Charles Revere, Revere Gas
J. Charles Sawyer, Sawyer Gas
Walter Snelling, American Gasol Co.
Milford Therrell, Squibb-Taylor Inc.
H. Emerson Thomas, Continental Tank Car Co.
John Wallace, Petrolane
Dwain Willingham, Propane Resources
Rob Love delivers a moving tribute to his father, Robert Y. Love

Sr., upon his fathers induction.
May 2016 LPGas | 31
Loves work in Mississippi was noticed by the National
LP-Gas Association, which named him the State Director
of the Year in the mid-1980s. The award recognized Loves
achievement in supporting the national associations market
promotion program for member companies. He served on the
national associations board dating back to 1977, chaired its
executive committee and was elected president in 1990.
My dad died too young, too soon, but he lived his life well,
says Rob Love, president of Lampton-Love, who accepted the
hall of fame honor on behalf of his father. My dad and the
guys in the business back then were all real friends, and thats
something my generation doesnt see today.
Daryl McClendon
McClendon helped facilitate the establishment of the Propane Education & Research Council (PERC) arguably his
most significant contribution to the industry. He was one of
the charter councilors and served as PERCs second chairman from 1999 to 2001, helping to set up the organization
for success.
During McClendons chairmanship, the council launched
many firsts, according to PERC President and CEO Roy Willis. This included the first market research initiative, the propane branding effort that led
to the Propane Exceptional
Energy theme, the first consumer education advertising
program and the Partnership
with States program that expanded the reach and frequency of the councils advertising campaign to bring the
propane message to end users.
McClendon also played a
key role on the councils consumer education advisory
committee. In addition, he
2016 Hall of Famer Daryl
was heavily involved in the
McClendon left his mark at
a number of the industrys
National Propane Gas Astop companies, brands and
sociation (NPGA), serving as
organizations.
committee chairs and in the
officer roles. He was president
of the board for the 1995-96 term. He also directed a task
force that led to the creation of the Gas Check program.
Im joining a class of 28 people that Ive admired and the
class of 2016 that Im inducted in is one that Im proud to be
in, McClendon says.
But it wasnt just his sales role with

the major propane marketer and Petrolane before it that drew attention.
It was what he did for the industry as
a whole that earned him a place in the
LP Gas Hall of Fame.
Those who knew Nunan say he exuded leadership and was a respected
representative of the propane indus- Nunan Jr.
try as he traveled to events around the
country. Nunan helped take Suburban
Propane public in 1996, mentoring its CEO before retiring
from the company in 1999.
Nunan was a founding
member of PERC, serving on
the council from 1997 to 2005
and helping to develop PERCs
original grant review process.
He was PERCs vice chairman
of marketers from 2000 to
2002.
His most important skill
in the industry was his ability to motivate people who
worked for him and with him,
says daughter Katie Nunan,
Katie Nunan, daughter of
who accepted the hall of fame
Hall of Famer Tom Nunan,
honor on behalf of her father.
introduces members of the
He valued enthusiasm. LPG
Nunan family in attendance.
Thomas Nunan Jr.

Nunan, the late vice president of sales for Suburban Propane,
was always selling. In fact, he built a 50-year career in the energy industry.
32 | LPGas May 2016
LP Gas Brian Kanaba gets the fifth annual induction ceremony

started at the Omni Nashville Hotel.
LP Gas Brian Richesson

discusses the hall of fame
selection process as part of his
opening remarks.
Eight of the 28 members of the LP Gas Hall of Fame were present at the 2016 ceremony. From left
are Jim Bertelsmeyer, Bill Byrne, Daryl McClendon, Bob Nicholson, Dan Myers, Bob Myers, Glenn
Miller and Gene Bissell.
Thanks to Suburban Propane,

AmeriGas, Blossman Gas,
Eastern Propane and
Ferrellgas for sponsoring the
LP Gas Hall of Fame this year.
Hall of Famer Glenn Miller of

Millers Bottled Gas attended
the ceremony with his wife,
Joan Miller.
From left: This Suburban Propane group includes Tom and Sally
Ross and Sam and Pennie Hodges.
Daryl McClendon, right, visits with LP Gas Brian Kanaba, left,

and Brian Richesson following the ceremony.
The 2016 LP Gas Hall of Fame induction ceremony drew another

large crowd, this time to the Omni in downtown Nashville, Tenn.
May 2016 LPGas | 33
Hall of Famer Dan Myers of the

National Propane Gas Association, left,
and Ray Murray Inc.s Ray Murray.
Susan and Jerry Brick of North

Star Energy LLC.
Hall of Famer Bob Nicholson of Eastern

Propane, left, and LP Gas Brian Richesson.
Bill Byrne, left, poses with Lampton-Loves Rob

Love and Courtney Love.
From left: Ferrellgas Randy Warner and Westmor Industries

Jason Soulon and Tim Esterling.
From left: Rutherford Equipments Randy and

Cindy Rutherford with Blossman Gas Randy
Doyle.
34 | LPGas May 2016
From left: Ferrellgas Nancy Coop, Energy

Distribution Partners Tom Knauff and
NGL Energy Partners Harold Poland catch
up during the cocktail reception.
Ferrell North Americas Tom Van Buren, left,

and Warm Thoughts Communications Tom
Jaenicke visit during the cocktail reception.
From left: Energy Distribution Partners Mark Zimora and Marlo

Young with AmeriGas Daniel Dixon.
Pat Hyland, former editor in chief of LP Gas (first at left), joins the magazines
current staff for a photo. Next to Hyland, from left, are Brian Kanaba, Kevin
Stoltman, Megan Smalley, Ryan Bockmuller, Brian Richesson and Kevin Yanik.
Laura and Dan Hermansen of

Westmor Industries.
From left: David Fulbright of White River Distributors, Bruce

Swiecicki of the National Propane Gas Association and Jay
Johnston of Jay Johnston & Associates.
Family Propanes Charlie and

Teri Ory.
Superior Plus Corp.s Luc Desjardins, center,

shares a moment with LP Gas Hall of Famer
Gene Bissell of AmeriGas, right, and Bissells
wife, Joann.
Members of the Nunan family, from left: Ann Nunan, Kaki Nagel, Richard Nunan,
Peggy Bonfield, Patty Dalton, Gary Sartor, Sally Sartor, Billie Nunan, Patrick
Nunan, Katie Nunan, Thomas Nunan III and Angela Dalton.
Relive the 2016 ceremony
LP Gas Hall of Famer Jim Bertelsmeyer

of Heritage Propane, left, and Auxier
Gas Doug Auxier.
Hall of Famer Bob Myers of Petrolane

with his wife, Francine Myers.
Tribute videos of each 2016 LP Gas Hall

of Famer produced for this years induction ceremony, as well as the speeches
delivered at the ceremony by Bill Byrne,
Rob Love (son of Robert Y. Love Sr.), Daryl
McClendon and Katie Nunan (daughter of
Thomas Nunan Jr.), are now viewable at
www.lpgashalloffame.com/inductees.
May 2016 LPGas | 35
201
7N
om
ina Now A
tion cce
s th ptin
rou g
gh S
ept
. 30
, 20
16
Guests gather. Room quiets. Spotlight shines.
A propane industry career is

celebrated in this moment.
About 130 attendees joined us in Nashville as we inducted the Class of 2016.
Now we're already looking ahead to 2017. Do you know one of the next
inductees? Submit your nominations at LPGasHallofFame.com.
For more information, contact Brian Richesson at
brichesson@northcoastmedia.net or 216-706-3748.
M E R G E R S A N D ACQ U I S I T I O N S
Driving toward a deal

Several propane industry representatives share best practices
in acquisitions at Propane Expo session
BY MEGAN SMALLEY | ASSOCIATE EDITOR
Abbate
Abbate hosted a panel on buying and

selling in 2011 at the Atlantic Region Energy Expo in Atlantic City, N.J. To Abbates surprise, many people participated
in that panel discussion on acquisitions.
He adds it went over so well that he was
asked to host it two more times at similar
regional energy shows.
In recent years, Abbates merger and
ISTOCK.COM/TOMAZL
hen Steven Abbate first

developed a panel discussion on buying and selling
businesses for the heating
oil industry, he doubted
whether experts would be interested in
sharing their strategies.
I honestly wondered, Will these
guys really share their ways about buying? he says.
May 2016 LPGas | 37
acquisition advisory company, Cetane
Associates, has started to assist buySteven Abbate: moderator, managing director of Cetane Associates
ers and sellers in the propane industry.
Joe Armentano: CEO of Paraco Gas Co.
The National Propane Gas Association
Daniel Dixon: group director of business development for AmeriGas
learned about Abbates sessions in the
David Montgomery: vice president of operations for Crystal Flash
heating oil business and asked him to
Tim Osterman: vice president, business development for NGL Energy Partners
present a similar panel for the propane
John Ryan: vice president of business development for Star Gas Partners
industry at the 2016 Southeastern Convention & International Propane Expo
in Nashville, Tenn.
through different stages of an acquisiFor the Propane Expo, Cetane Asso- tion, starting with the valuation process I think anyone can get
ciates created a panel of five representa- through closing the deal.
involved with acquisitions,
tives from AmeriGas, Crystal Flash,
but you have to figure out
NGL Energy Partners, Paraco Gas and The valuation process
Star Gas Partners to share best prac- The first step for any potential acquisi- strategically what you want to
tices on buying and selling propane tion requires a buyer to evaluate a seller
businesses.
and its assets. A few key value drivers for accomplish. Growing through
Id call it a powerhouse of a panel, a buyer to evaluate include the percentacquisitions is certainly harder
says Tom Jaenicke, vice president of age of company-owned tanks, supply
propane marketing services for Warm and distribution capabilities, customer than growing organically
Thoughts Communications, who intro- demographics and diversification of the
since you need to transition
duced the panelists in the session.
business.
Although the acquisitions topic
The biggest value driver tends to be a business to your own
might seem intimidating at
the percentage of companya glance, dozens of propane
owned tanks for any market, practices, but it can be done if
retailers showed up to the sesAbbate says. More tanks
you do it slowly.
sion, filling nearly two conferleads to higher value, but
David Montgomery,
ence rooms. Both prospective
theres other things to look
Crystal Flash
buyers and sellers listened to
for, as well.
the five panelists insights on
In some markets, Abbate
how to close a deal.
says, there are many retailers
Paraco Gas is a little more selective
I thought it went fantaswith diversified businesses, in purchasing diversified propane busiMontgomery
tic, says David Montgomery,
offering propane
nesses. Joe Armentano, CEO
vice president of operations at
along with other
of Paraco Gas, says the comCrystal Flash and one of the five pan- fuels and services. Retailers
pany only buys a propane reelists. All the information from other on his panel have different
tailer with multiple businesses
panelists was solid and I could agree approaches to valuing diversiif those other businesses boost
with their perspectives.
fied sellers.
the sale of propane.
Montgomery admits he was uneasy
John Ryan, vice president
Our No. 1 goal is to sell
about participating in the disof business develpropane, our No. 2 goal is to
cussion, unsure how the conopment for Star Gas
sell propane and our No. 3 goal
Armentano
versation would go. He lightPartners, comes
is to sell propane, Armentano
ened up to the session a few
from a diversified business says. We look at diversified businesses
minutes in, wanting to help
that offers alternative home to see how those services will help us sell
session attendees.
services. For his company, propane, be it HVAC or dual fuels.
I made peace with the fact
having a diversified business
When trying to put a total value on a
that this session served as a
is usually a good thing.
business, panelists suggested looking at
way to give prospective sellers
When we see a seller with a sellers average and normalized busiRyan
comfort on acquisitions, he
multiple profit centers, we ness volumes.
says. It helped them learn what buyers view it as positive, as long as that busiNo one should base valuation off a
are really looking for.
ness is within our core competencies, superstar year of gallon sales, says Tim
The session walked attendees he says.
Propane Expo session panelists
38 | LPGas May 2016
evaluate their potential buyOsterman, vice president of
ers during this process.
business development for
The seller needs to considNGL Energy Partners. The
er what the buyer plans to do
law of averages has to take
with them, he says. Consider
hold in valuations.
how that buyer will take care
Daniel Dixon, group diof your customers and what
Osterman
rector of business developthat buyers reputation is.
ment for AmeriGas, agrees.
He often looks at a sellers last
The waiting game
three to five years to get an
Making a deal to sell ones
average value, and he seldom
business involves many emolooks at a companys future
tions, Montgomery says, and
expected sales.
the due-diligence process
You can look at what
can be especially tough on
might happen to a company
the seller.
Dixon
if youre purchasing 10 years
A seller might have lived
down the road, but a lot of
in this business their whole
variables might affect that, he adds. life and now youre talking about takConsider the natural gas expansion up ing over their baby, he says. With the
in Michigan right now that was not due-diligence process, youre going to
even anticipated five years ago.
invade their personal space, and thats
As a buyer evaluates potential sell- kind of a big deal when you start quesers, Abbate adds that sellers should also tioning why they did certain things
The No. 1 driving force in

selling a business today is
retirement and not having
a transition plan. Its not
that all these companies
are distressed and failing.
Its just the issue that some
businesses dont have a
person to take over, and
thats really why businesses
are selling.
Steven Abbate,
Cetane Associates
with their business.
The process can be painful, but the
purpose is to ensure the final valuation
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between the buyer and seller is accurate.
Montgomery adds buyers should have
a consistent due-diligence process that
can be slightly tailored to each company
it purchases. Some items he suggests buyers review during the due-diligence process are lawsuits, supply plans, insurance
plans, customers, assets, IT, competition
and personnel.
When you buy a business,

youre not just buying a
business. Youre buying
someones legacy. Chances
are, this is the second-most
emotional decision a seller
will make in his life.
Buyers need to have a checklist when

going through the due-diligence process
with a potential seller and to give sellers
a timeline to complete the checklist and
prepare information. Dixon says a good
system and good records make the process easier for all involved parties.
Once the due-diligence process is
complete and a deal is closed, Montgomery says, the buyer should make sure the
newly acquired business is ready for
its first days of operations by having a
training plan scheduled for employees
John Ryan,
Star Gas Partners
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how their name will be treated after the
acquisition, Montgomery says. They
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over their lifetime is going to be treated
well, and also that it might be enhanced
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2015-16 transactions
Heres a look at the movement LP Gas
kept tabs on over the last year, with
acquiring companies in bold:
AmeriGas Propane
Nine acquisitions (undisclosed)
APP Propane
PC Propane & Gas Montesano,
Wash.
Blossman Gas
Southern Propane Jacksonville, Fla.
Cavagna Group
Bigas, an Italian company
specializing in fuel system
technologies for LP gas and
compressed natural gas engines
CHS Inc.
Merger with Elburn Cooperative
Sycamore, Ill.
Combined Energy Services

Merger with Hopatcong Gas
Services Hopatcong, N.J.
Davenport Energy Inc.

APB Whiting Oil Co. Roanoke, Va.
Whiting Jamison Oil Co.
Covington, Va.
Eastern Propane
Patriot Fuels Inc. Canaan, N.H.
Energy Distribution Partners

Williams Oil Co. Inc. Towanda, Pa.
Energy Transfer Equity

Merger with Williams Cos. Inc. to
form energy franchise
Enterprise Products Partners LP

EFS Midstream LLC
Reliance Industries Ltd.
Ferrellgas
Bridger Logistics LLC Dallas
Gasco Energy Supply LLC Eldon,
Mo.
44 | LPGas May 2016
Propane Advantage Layton, Utah Richgas

Bradford Nugas Bradford, Pa.
Herring Gas
Prentiss Butane Prentiss, Miss.
Southwest Gas Magnolia, Miss.
iRely LLC
AutoFueling Systems, a cardlock
software company
J.J. Sullivan Oil & Propane

Madison Oil Madison, Conn.
Marathon Petroleum Corp.

MarkWest Energy Partners LP, a
midstream operation
Meritum Energy Holdings LP

Pico Petroleum San Antonio
MFA Oil Co.

Brownfield Oil Co. Moberly, Mo.
Elaine Petroleum Distribution
Elaine, Ark.
Lybarger Oil Garnett, Kan.
R&S Propane Inc. Dibble, Okla.
S&S Oil and Propane Co.
Inc.Emporia, Kan.
Osterman Propane Gas

Perrys Oil Service Bradford, Vt.
Parkland Fuel Corp.

Girard Bulk Service Saskatchewan,
Canada
Propane Nord-Ouest AbitiTmiscamingue, Quebec, Canada
Power Solutions International (PSI)

Bi-Phase Technologies LLC, an
electronic fuel injection system
manufacturer in Wood Dale, Ill.
Powertrain Integration LLC, an
on-highway power systems
manufacturer in Madison Heights,
Mich.
River Country Cooperative

Pierce Pepin Propane Services
Ellsworth, Wis.
Rural Computer Consultants Inc.

Propac (from Data Control Corp.)
FuelPak (from Vertrax)
R.W. Earhart
Franz Petroleum Products
Bascom, Deshler and Holgate, Ohio
Shipley Energy
Smart Click Energy Boston-based
software company
Suburban Propane
Propane USA Margate, Fla.
Superior Plus Energy Services

Warners Gas Service Vestal, N.Y.
ThompsonGas
Beckett Gas Co. Cameron, Mo.
Como Oil & Propane Duluth,
Minn.
ValvTect Petroleum
Energy Additives Inc., a fuel
additives company in Battle Creek,
Mich.
Westmor Industries
Advanced Tank Systems, a
commercial truck tank body
distributor in Colmar, Pa.
Westport Innovations
Merger with Fuel Systems Solutions
Inc. to create an alternative fuel
company
Ray Murray Inc.

Best & Langston Inc., a hearth,
heating and leisure products
distributor in Goldsboro, N.C.
Editors note: Other transactions have

taken place over the last 12 months,
but some propane industry companies
have chosen to keep their acquisitions
private. Submit acquisitions news to
Editor-in-Chief Brian Richesson at
brichesson@northcoastmedia.net.
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CO N S U M E R E D U C AT I O N
DOG DAYS O
New residential-based
marketing campaign
designed to endear the
public to propane
BY BRIAN RICHESSON | EDITOR IN CHIEF
ne year after a federal government restriction on

Propane Education & Research Council (PERC)
efforts to educate the
public about the benefits
of propane, the industry is
headed back to the consumer market this
summer with a new $10 million national
campaign and a dog named Blue.
PERC made the official announcement
about the campaign at last months NPGA
Southeastern Convention & International
Propane Expo in Nashville, Tenn.
Not since the Energy Guys campaign
has PERC created such a large-scale program designed to attract U.S. consumers
to propane and away from energy competitors like electricity. But it hasnt had that
luxury for the past six-plus years, instead silenced by a U.S. Department of Commerce
consumer-protection penalty that limited
its public outreach efforts to research and
development, safety and training after the
Blue the dog, whose owner is a propane

man, gets top billing in the consumer
education program thats expected to launch
this summer.
Photo courtesy of the Propane Education & Research
Council.
46 | LPGas May 2016
OF SUMMER
May 2016 LPGas | 47
price of propane rose above a predetermined threshold.
Led by PERCs newly selected, Dallasbased branding agency, The Richards
Group, the consumer education campaign will target the hard-hit residential
market, working to improve the publics
perceptions of propane, highlighting the
many uses for the fuel in and around the
home, and ultimately growing gallons
for the industry.
Im excited to get back out there and
see the consumer response to our message, says Roy Willis, PERCs president
and CEO.
Trent Walters of The

Richards Group explains
details of the campaign
during PERCs February
meeting in Dallas.
The Blue concept

A Portuguese pointer has been pegged
as the face of the campaign, with program leaders planning key advertising
messages from June to September.
Im happy to tell you weve already
Based in Dallas, it is the largest independent branding agency in the United
got a spokesman under contract, Willis
States. Employing more than 700 people, the 40-year-old company has
told Propane Expo attendees as he outrepresented some of the most familiar brands in the country, including
lined the industrys plans.
Chick-fil-A, Motel 6 and The Home Depot. The Richards Group won the
Details of the campaign came to light
PERC consumer education contract over 15 other firms, beating two other
in February when The Richards Group
finalists. PERC chose The Richards Group last December, giving project
presented two concepts at a PERC meetleaders a short window to create a new campaign before introducing it to
ing in Dallas. One involved a dog named
the industry at Aprils Propane Expo in Nashville, Tenn.
Blue, whose owner in the ad is a propane man. The other concept, called
Home, showed a man making a long journey to reunite with nection with viewers and making a lasting impression, reports
his family at their comfortable propane-fueled home.
Gregg Walker, PERCs director of communications.
After getting feedback from council members during that
Blue is going to be a very interesting character for us, travmeeting, project leaders introduced both concepts to consum- eling with his bobtail driver, a propane man, Willis says. In
er-based focus groups in the Midwest, Northeast and South for a subtle way, it will help us create a sense of encouragement of
additional input before making a final decision.
young men and women that maybe this propane business
The winning concept, Blue, immediately contextualizes is not a bad one to get into.
and conveys propanes benefits, creating an emotional conBlue will take to the airwaves across the United States in
what project leaders describe as national air cover.
The campaign is going national so that everybody gets a
touch of this campaign in some form or fashion, especially
since weve been off since 2009, says Trent Walters, brand
management/principal at The Richards Group and the PERC
project lead. Going national helps us work around political
implications (of an election season). Politicians dont tend to
do a nationwide campaign but [instead target] more specific
areas where they need to build some ground.
In addition to choosing the Blue concept in March, project leaders found a dog to play Blue in the ads (his real name
is Traveler, and he has a backup named Remington), selected
Project leaders believe the industrys new banner serves as a
rallying cry for the propane marketer and consumer.
Who is The Richards Group?
48 | LPGas May 2016
a voice to convey Blues thoughts about
his days on the job with a propane man
and hired a director for the shoots.
We needed to make sure we had a
great voice for Blue, Walters says. His
mouth never moves, but you can hear
his thoughts. He has a great sense of
humor and brings a lot of charm to the
character.
The Energy Guys campaign

was once an important
vehicle to promote
the benefits
of propane.
Building around research
50 | LPGas May 2016
PROPANE EDUCATION & RESEARCH COUNCIL
To help decipher its target audience

and messaging, PERC partnered with
consumer research firm Nielsen to
conduct research on consumers perceptions of propane.
Nielsen surveyed 3,000 homeowners propane users and nonusers in
propane country. It found 93 percent
of users and 48 percent of nonusers are
familiar with propane, while 64 percent
of users and 26 percent of nonusers are
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favorable to propane. The results told PERC that it needed to
increase the emotional connection between consumers and
propane.
The campaigns goal in the first year is to increase the
familiarity and favorability of propane, says Dennis Vegas,
PERCs chief marketing officer, who was hired last year to help
launch the campaign. We have a ways to go to changing consumer behavior. Weve got to be able to make people feel good
about propane and know what the benefits are. Its going to
take some time to cultivate that relationship.
The campaign will build messages around propane-fueled
appliances used inside and outside the home. It will target consumers ages 35 to 65 who have limited or no access to natural
gas, and it will use television, radio, digital and print methods
to reach that audience.
Weve got to find ways to tap into the interests of consumers and how they want to use propane, and then talk to them
through those mediums, Vegas says.
Research has also told PERC that homeowners in propane
country value their way of life, the land on which they live
and their independence. To that end, campaign messaging will
highlight how propane, as a surprisingly modern fuel, delivers
energy when and where consumers need it and fuels their way
of life. Those concepts are tied together under a new Proudly
Propane banner.
We thought about it in the context of the people who have
been using propane for many years and the people who take
pride in delivering it, Vegas says of the banner. We saw it as
a rallying cry for both the marketer and consumer about the
independent way of life that they can feel proud of.
PERC foresees the campaign working in concert with new
construction and housing data from Metrostudy, providing
Gregg Walker, PERCs director of communications, outlines

campaign concepts at a special session in Nashville.
52 | LPGas May 2016
PERC President and CEO Roy Willis introduces the campaign to

attendees at Aprils Propane Expo in Nashville.
retailers with residential market insights about their service

territory. The council also introduced this report at the Propane Expo.
Weve identified consumer segments with the highest likelihood to prefer gas appliances and occupy homes with heating
types that could be replaced by propane, says Bridget Kidd,
director of residential and commercial programs for PERC.
Weve also identified builders building away from pipelines.
As project leaders have acknowledged, the media landscape
has changed since the industrys last major consumer education campaign, with a greater emphasis now on digital and
social media applications.
Video will receive an estimated 60 percent of the media buy,
project leaders say, supported by digital (22 percent), radio (9
percent) and print (9 percent) outlets. The Richards Group was
looking at well-known television channels like Fox News, The
Weather Channel, HGTV and CMT. Plus, Blue will appear
this summer on the big screen in select AMC Theaters.
Summertime tends to be big for blockbuster releases,
Walters says. The Secret Life of Pets, a Disney film (scheduled for release in July), plays nicely into our campaign. It will
allow us to put our work on the big screen in targeted areas.
Facebook, with its multiple ad types to engage viewers, will
serve as the primary social media channel for the campaign,
project leaders say.
There are more opportunities available to us, through paid
and owned sources, Walters says of digital media channels.
In addition, the campaign will include its own microsite,
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the progress of the websites and ads, and make adjustments as
needed, Walters adds.
Inside the numbers

Before PERC faced the restriction, from August 2009 through
April 2015, it enjoyed five years of a popular advertising campaign with the Energy Guys and the propane banner: Exceptional Energy.
Those efforts between the duo wearing white Propane
and Electricity T-shirts to verbally spar with each other in
television and radio advertisements, with propane always having the edge, helped to attract tens of thousands of new propane customers, the council says.
At that time, PERC was spending more than $20 million
annually on consumer education initiatives. That more than
doubles the funds approved at a February council meeting for
the first year of what it envisions as a three-year campaign.
Still, the $10 million campaign, approved this year with the
PERC assessment rate on odorized propane sales at four-tenths
of a cent per gallon, is creating budgetary challenges for the
council and the industry.
Willis spoke at PERCs April meeting about tough deci-
54 | LPGas May 2016
Paula Wilson of P3 Marketing Works is lending her industry

experience and marketing expertise to the campaign.
sions ahead for the council. Adding a consumer education

campaign is forcing PERC to consider cuts to some programs,
including Partnership with States. The current assessment
rate of four-tenths, expected to generate about $36 million in 2016 revenue,
was lowered from five-tenths after the
restriction hit. The council has yet to
decide whether the rate should remain at
four-tenths beyond this year or increase
to the maximum level.
We have some tough choices to
make and some prioritization we need to

go through, not only here at the council,
but also the states have to take a look at
how their resources are being utilized,
Willis told the council, which will meet
again in July to propose a 2017 budget.
Until then, PERC will have its hands
full preparing the campaigns rollout.
One of those tasks includes rallying
propane marketer and industry support

for the program and preparing them to
field inquiries from consumers wanting
to know more about propane.
This campaign cant be effective unless we are fully aligned and integrated
with the marketers in this industry,
Vegas says.
Tools for the marketer

PERC is already sending emails to
the industry about the campaign. A
planned marketer help desk via an 800
number will help marketers learn more
about campaign material availability,
when ads are running and how to take
full advantage of the campaign. Marketers will be able to pick and choose
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A key task at hand involves

rallying propane marketer
and industry support for the
program and preparing them
for consumer inquiries.
the campaign tools to use in their areas.
According to an educational session at the Propane Expo, marketers
will benefit from a number of marketing resources and tools connected to
the campaign, including brand video,
in-store signage, promotional items and
giveaways, digital and social media copy,
email marketing content, direct-mail
postcards, newspaper and magazine
ads, television and radio ads, billboards,
posters and door hangers.
The Blue campaign is to help you
combat other energy sources operating
in your territories, says Paula Wilson
of P3 Marketing Works, PERCs former
chairwoman, whos offering her marketing expertise for the campaign. We
want to work with you to do your own
personal branding and help you be an
ambassador for your company, as well
as this campaign. Everyone is going to
have their own ideas, how they can incorporate this into their business.
Wilson is one of many industry
members who has contributed to the development and launch of the campaign.
Much of the industrys work started
in July 2015 when the council formed a
consumer awareness task force to help
lay the groundwork for a new campaign,
naming Scott Brockelmeyer of Ferrellgas
as the chairman. Brockelmeyer worked
closely with The Richards Group as details of the campaign came together.
PERCs process to form a new campaign hasnt been without criticism.
Some industry members believe the
council has taken too much time after
the restriction ended to launch a program. PERC, however, has defended
that process, citing patience and a push
to involve industry leaders in the effort.
As much as we need to move quickly,
we need to make sure were doing this
the right way, PERC Chairman Tom
Van Buren of Ferrell North America told
the council in February. LPG
Dennis Vegas, right,

PERCs chief marketing
officer, was hired last
year to help develop a
consumer campaign.
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COLUMNIST | JAY JOHNSTON
Lessons learned in Nashville

From the Propane Expo to Broadway, life experiences were aplenty
ife lessons can be learned from

every experience if we keep our
eyes, ears and hearts open to
understanding change, innovation and wisdom shared.
Last month, I had the opportunity
to attend the Southeastern Convention & International Propane Expo in
Nashville, Tenn., where many lessons
were learned.
Just prior to the LP Gas Hall of
Fame induction ceremony, I strolled
down to Broadway Avenue and Nashvilles historic Honky Tonk district. At
the Legends Corner bar, I found some
hopeful musicians playing old, beat-up
guitars while reading country lyrics
from an iPad.
Lesson learned: Even in Dogpatch,
they embrace innovative technology.
I attended the LP Gas Hall of Fame
induction ceremony for a fifth time to
see industry icons recognized for their
longstanding contributions. It always
warms my heart to see these industry
pioneers recognized for laying the
foundation for future generations.
This years class of inductees included the following men: Bill Byrne
of Warren Petroleum Co., Robert Y.
Love Sr. of Lampton-Love Inc., Daryl
McClendon of DFM Enterprises and
Thomas Nunan Jr. of Suburban Propane. As always, these stories of entrepreneurship, historic struggles and
tremendous accomplishments underscored the importance of leadership.
Lesson learned: The harder you work,
the luckier you get.
The Propane Expos educational
sessions included the Propane Education & Research Councils (PERC) new
construction and residential consumer
58 | LPGas May 2016
data session on market expansion and

the propane safety update on product
development. It made me think of recent
industry accidents related to temporary
heat, contractors and their employees
who use marketer-owned or non-owned
construction heaters and tanks. If we
are to grow these markets, we should be
committed to clear safety communication and education from suppliers who
are downhill from liability exposures.
Lesson learned: It would be well advised to communicate with contractor
customers regarding their obligation to
train employees and comply with code
when using propane products or equipment, especially when used as temp heat.
At the annual PERC Update, Roy
Willis, the councils president and
CEO, shared insight, vision and goals
accomplished, including a new consumer education marketing campaign
using Blue as its spokesdog. The campaign has a country feel designed to
warm the hearts of current and future
propane customers.
Lesson learned: We all complicate
things with overly lengthy messages,
when sometimes all we have to say is
Woof!
The keynote speaker was country
musician and actor Charles Esten from
the television drama Nashville. Esten
told stories, sang old favorites and performed an improvised song based on a
good-natured attendee.
As an amateur musician, I watched
with interest as Esten sang his first song
with his guitar out of tune to the point
of briefly forgetting a lyric. He didnt
miss a beat, though. He tuned the guitar and nailed every other song with
professional charm.
Lesson learned: We all make mistakes,

but true professionals address the problem and keep on pickin.
I also attended the National Propane Gas Associations (NPGA) State
Leadership Forum, designed to address
integrated industry growth, legislative
and regulatory challenges and opportunities. The forum discussed issues faced
by state executives, marketer members
and NPGA and PERC leadership. Those
who had the courage to speak out regarding concerns and challenges pulled
no punches in their quest to understand
the industrys direction.
All concerns were welcomed
and encouraged, thanks to current
NPGA Chairman Charlie Ory, NPGA
Chairman-Elect Stuart Weidie, NPGA
President Rick Roldan and Willis. I
found the courage to remind this esteemed congregation of attendees about
how far we have come with regard to
safety, encouraging them to continue
to promote and utilize PERC safety and
training products as we meet growth
and legislative challenges.
Lesson learned: Successful leadership
stays open to input from the field.
I highly encourage everyone to get
involved with association activities
and become a part of solutions aimed
at achieving safe growth and profitable results.
Maybe next year I will see you in
Nashville. Lessons learned can be
priceless. LPG
Jay Johnston is an insurance executive,
business management consultant and
inspirational safety speaker in the propane industry. He can be reached at jay@
thesafetyleader.com or 612-802-0663.
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Breaking the lock

Plaintiffs awarded millions, even after one person found partially at fault
No payment, no service
The natural gas utility shut off gas to
the home due to Carl Jones failure to
pay for service.
The company applied a lock to the
gas service to prevent anyone from
getting around the cutoff of gas service. This lock was no match for Jones,
however, as he was able to intentionally break it with a wrench and restore
gas service to his home. It also appears
Jones left a gas line open in the home
and hid the utility-supplied gas meter
to his home to cover up his actions.
With the gas left on to the home, an
explosion occurred in the early-morn60 | LPGas May 2016
ISTOCK.COM/PRICELESSPHOTO
ife is stranger than

fiction.
Thats the moral
of this story for gas
companies in general and
for propane companies in
particular.
In an explosion case
from several years ago
Jones v. Centerpoint Energy
a jury awarded the plaintiffs more than $15 million,
which, after interest and
costs, came to about $22
million.
The natural gas company was
found to be 50 percent responsible
for the accident despite putting a lock
on the gas line fueling the home after
nonpayment by the homeowner. The
case was appealed but affirmed on all
points.
Carl Jones wife, children and
grandchildren, all of whom suffered
significant burn injuries, joined him
as plaintiffs in the case.
Be sure when using any items

in your business, especially
those for safety, that they
meet industry standards.
ing hours when Mrs. Jones turned on
an appliance.
The gas company had installed a
plastic lock and claimed it also installed a block that would stop the
flow of gas. Plaintiffs said the gas company was required to lock out gas service with a lock that met certain standards set by federal law. This lock was
claimed to be plastic and not made
to meet the federal standards. It was
also claimed that the gas company was
required to install a block or remove
the gas meter. In this case, plaintiffs
did not believe that the gas company
installed the block, and it was clear
that the gas company did not remove
the gas meter.
The gas company also did not
monitor systems that cut off service
after nonpayment, even

though some customers
would get around the cutoff
of service. It also did not
usually take legal action
against customers that
would steal gas service.
50/50
Carl Jones was found to be

50 percent at fault for his
actions. The gas company
was also found to be 50
percent responsible in the
case for its use of a lock that
was not in compliance with industry
requirements.
What should the propane industry take away from this case? Be sure
when using any items in your business, especially those for safety, that
they meet industry standards. If you
know someone is getting around your
efforts to cut off service, from past
experience with this type of account, it
seems the wisest approach is to simply
remove the tank.
This case also points out one of the
difficult truths in many cases. Even
though one person injured is at fault,
others are often injured through no
fault of their own. These innocent
victims seek to get some negligence
against the gas company. If they are
successful in this effort, they will
recover for their injuries at least in
part. LPG
John V. McCoy is with McCoy Leavitt
Laskey LLC, and his firm represents
industry members nationally. He can
be reached at 262-522-7007 or jmccoy@
MLLlaw.com.
TECHNICAL ISSUES FROM THE FIELD
COLUMNIST | RYAN CARD
Time well spent

Mild winter provides early opportunities to improve assets and skills
his past winter was not the type

that propane heating technicians
are used to, especially here in
New England.
Less system failures occurred because of the increase in temperatures
and an overall mild winter, which also
affected central heating, space heating
and even hearth systems.
The average heating system breaks
down during the first half of the heating season, usually between September
and December. After a majority of the
systems have been repaired, the next
wave of breakdowns is usually dependant on how hard the system is working to heat the home.
There are always exceptions to the
breakdown period. However, the colder
the season, the more repairs are generated during that time.
Technician to-do list

In the propane business, a warm winter
doesnt offer many upsides, but there
are still many things we can do to get
technicians out in the field.
Companies can complete many
tasks during the offseason to generate
service business that will pay off in the
upcoming months. Consumers spending less on propane this past winter
allows them to focus on other problem
areas and prepare for the upcoming
winter. Companies can initiate tune-up
and Gas Check promotions earlier in
the year, along with marketing material
about service contracts or water heater
and heating system replacements.
Another advantage to having an
early spring with limited snow and
frost is the ability to work on propane
tank maintenance. This might not be
62 | LPGas May 2016
the field during the summer months.

These tanks were not rusty or out of
date. The company was simply protecting its investment and, more importantly, showing customers how much it
cares for them and their property. Most
of those ASME tanks I washed almost
20 years ago are still in place today.
Individual improvement
Early spring gives companies time to sit

down with technicians for meetings or
in-house training sessions.
the most profitable part of our business, but it remains beneficial to the
company and the homeowner.
Companies have different policies
and procedures regarding tank maintenance, but the majority of us perform
these tasks during the summer months
our offseason.
Propane tank maintenance is such
an important part of our industry and
is easily overlooked on a yearly basis,
mostly due to winter weather or available manpower during the summer
months. Swapping out tanks with
expired date codes and increasing or
decreasing tank storage related to usage
can be difficult to perform during the
five to seven months in the winter. A
slower winter, with a smaller amount
of snow and frost, allows for these projects to start much earlier this year.
I started in this industry at 16 years
old, washing dirty propane tanks in
Now is also a good time for technicians

to sharpen their skills. This can include
something on a larger scale, like working on hydronic and electrical skills, or
something small, like working on daily
paper processes or making sure their
service vehicles are neat and organized.
Service managers can also help with
this process by enrolling employees in
training classes, which are offered by
the hundreds here in New England.
Early spring also gives companies time
to sit down with technicians for meetings or in-house training sessions.
None of us can control the weather,
but we can all improve on multiple
skills and projects within our organization. A slower winter season allows us
to focus on areas that have otherwise
been put on the backburner, such as
tank maintenance, preventive maintenance, cathodic protection and service
contracts.
There is nothing more valuable than
our customers. Dont overlook your
ability to keep them happy, which will
ultimately improve sales and overall
satisfaction. LPG
Ryan Card is the service manager for
D.F. Richard Energy in Dover, N.H. He
can be reached at rcard@dfrichard.com
or 603-516-3225.
Reunion Resort Orlando, Fla.

October 5-7, 2016
LP Gas, using its position as a market-leading media brand, is proud to present the next
evolution of propane commerce in a changing industry. he LP Gas Growth Summit will
ofer retailers viable alternatives for growing gallons beyond home heating, while ofering
manufacturers a chance to showcase their products to an exclusive, vetted group of top
retailers in an intimate one-on-one setting.
Learn more about how to grow your year-round volume with:

On- and of-road propane applications
New and emerging technologies
Techniques to grow your business
How is this diferent from a trade show?
No registration costs to attend

LP Gas will pay for all of your lodging AND meals. Just pay for your light!
Meet with vendors in a prescheduled, one-on-one setting.
Great educational, social and networking opportunities, including:
golf, cocktail parties, a barbecue and more
Attendance is limited so to reserve your space,

or to ind out more about this new and exciting concept, contact
Brian Richesson of LP Gas at 216-706-3748 or brichesson@northcoastmedia.net.
Relief valve manifold
Propane tank heaters
Marshall Excelsior Co. designed its mini quadport relief valve manifold to allow for the service
and exchange of tank vapor relief valves while
tank systems are fully operational. The relief
valve, which is distributed by Bergquist Inc.,
can be used in all large ASME tanks equipped with
standard 2-inch FNPT vapor relief valve openings.
According to Bergquist, the relief valve includes all of
the same features of Marshall Excelsiors flanged versions,
but it costs less and does not require costly tank modifications. The valve uses high-flow 1-inch MNPT external
relief valves. It is available in brass for LP gas service or aluminum for NH3
service. The manifolds and relief valves come with Viton or NBR seals for high
performance in LP gas or NH3 uses. Additionally, the relief valve manifold
has an extra relief valve excluded from the flow rating to allow for service or
exchange of any relief valve without evacuating the tank.
For more information, visit www.marshallexcelsior.com.
Storing propane tanks outside in cold

winter temperatures can decrease
the efficiency of a propane tank. The
Powerblanket propane tank heater
offers a simple, economical and efficient
solution to keep propane tanks from losing pressure in cold weather. According
to the company, the technology can
save users money by optimizing gas and
material usage. The Powerblanket wraps
propane tanks in a durable vinyl blanket
that spreads electrical heating evenly
Fire pits, grilling accessories

Blue Rhinos 2016 line of Endless Summer fire pits and grilling accessories provide heat and style for outdoor living spaces. Made of weather-resistant steel,
the fire pits feel similar to a classic fire without the messy ashes accompanied
with a real fire, Blue Rhino says. The company offers the following three fire
pits in its Endless Summer line: the cocktail fire
table, the tabletop outdoor fireplace and the
30-inch outdoor fireplace. The cocktail fire table
is a bar-height fire pit with a decorative base
that conceals a propane tank. It includes lava
rock to accent its flames. The tabletop outdoor
fireplaces glass panels showcase the fire, and
the appliance comes in rectangular or round
versions. The 30-inch outdoor fireplace features
wicker design and simulated tile mantel, and it
uses a decorative base to conceal a propane tank.
For more information about the products,
visit www.bluerhino.com.
throughout the surface area of application. Additionally, the Powerblanket

helps to eliminate unnecessary cylinder
refills in cold weather. The propane
tank heater can maintain pressure
and efficiency on almost any size or
shape of propane tank. The company
adds that ready-to-ship options of the
Powerblanket are available for common
tank sizes, and custom solutions can be
shipped in one to two weeks.
For more information, visit www.
powerblanket.com.
Medium-duty trucks
Kenworth Truck Co.s Kenworth T370
medium-duty trucks provide for excellent turning radius, according to the
company. Kenworth T370s come with
a PACCAR PX-9 engine rated at 350
horsepower and matched with Allison
3000RDS six-speed automatic transmissions. The locking differentials on
64 | LPGas May 2016
the tandem axle Kenworth T370 tank

wagons allow for extra traction needed
for deliveries in snow and slush, the
company adds. Superior Plus Energy
Services has incorporated about 70
Kenworth T370 medium-duty trucks
into its bobtail fleet in recent years.
Stacy Sullivan, Superiors corporate
fleet manager, says the Kenworth

trucks have been reliable for deliveries through the winter months. The
Kenworth T370 is available with up to
20,000-pound front and 46,000-pound
rear axles.
For more information, visit www.
kenworth.com.
BLIND BOX REPLY OPTIONS
CLASSIFIED ADVERTISING
All ads must be prepaid by the classified closing date. Visa, Mastercard, & American
Express orders are accepted over the phone. Please send you ad copy with prepayment to the following address: LP/Gas, Attn: Kelli Velasquez, 1360 E. 9th St., Ste. 1070,
Cleveland, OH 44114.
CONTACT SALES EXECUTIVE KELLI VELASQUEZ FOR RATES TODAY!
Direct Dial: 216-706-3767
Email: kvelasquez@northcoastmedia.net
Fax: 253-484-3080
Mail:
LPG MAGAZINE / BLIND BOX #

1360 E. 9TH ST., STE. 1070
CLEVELAND, OH 44114
Email:
CANDERSON@NORTHCOASTMEDIA.NET
Please specify magazine name and blind

box number in your correspondence.
CLASSIFIED SHOWCASE
FOR SALE
May 2016 LPGas | 65
CLASSIFIED SHOWCASE
FOR SALE (contd)
Reach Thousands of Industry Experts by placing your ad in LP Gas Magazines Classiied Showcase.
66 | LPGas May 2016
FOR SALE (contd)
CLASSIFIED SHOWCASE
Place your ad in our July 2016 issue.

Ad closing: June 6th

May 2016 LPGas | 67
CLASSIFIED SHOWCASE
FOR SALE (contd)
Find the person for the job.
PLACE YOUR AD TODAY!
Place your recruitment ad today.

68 | LPGas May 2016
FOR SALE (contd)
Benefits of
CLASSIFIED
ADVERTISING
EXPOSURE
Reach highly-targeted, market-specific
business professionals, industry experts
and prospects.
R Stamp Repair Shop

V, K, I, P Inspections, Testing
Repairs, Parts
Service Bodies
Command immediate attention and get

fast action with the dynamics of classified
advertising!
New, Used Quality Bobtails & Crane Trucks
VALUE
Select from a variety of classified display
options to meet specific needs on a timely
basis cost-effectively.
RESULTS
Generate sales leads, maintain market presence, conduct market testing,
promote existing lines, introduce new
products and services, or recruit the best.
Bottom-line, classifieds offer you

an excellent return on investment!
Contact Your Sales Exec Today!
Kelli
Velasquez
www.kurtztruckequipment.com
(800) 848-3468
216-706-3767
kvelasquez@northcoastmedia.net
Place your ad
in an upcoming issue
June 2016 . . . . . . . . . . 5/6/2016
July 2016 . . . . . . . . . . . 6/6/2016
August 2016. . . . . . . . . 7/8/2016
September 2016. . . . . . 8/8/2016
October 2016 . . . . . . . . 9/7/2016
November 2016 . . . . 10/10/2016
December 2016 . . . . . 11/4/2016
Visit us at www.LPGasmagazine.com
May 2016 LPGas | 69
CLASSIFIED SHOWCASE
IMPACT
CLASSIFIED SHOWCASE
CAREER OPPORTUNITIES
With locations in Al, FL, GA, MD, MN, MS,
SOFTWARE
BUSINESS SERVICES
NC, TN, VA, WV and WI, ThompsonGas is one

of the fastest growing propane companies
in the country. And, were buying propane
companies across the U.S. at the same rapid
pace. We believe that our people are what
matter most. If youre an expert in operations
management (single or multi-unit), sales,
supply, safety, service, delivery, systems or
accounting, we want to talk to you. Wherever
you are east or west, north or south if
you are good at what you do, email us at
careers@thompsongas.com.
5/16
BUSINESS OPPORTUNITIES
SOFTWARE
WANTED
DID YOU
KNOW?
All LP Gas classifieds are
posted online.
lpgasmagazine.com
70 | LPGas May 2016
WANTED TO BUY, LP OR NH3 TRAILERS,

9,000-15,000
GALLON,
125-265
PSI,
READY TO WORK, OR READY TO
REBUILD,
CALL
BRAD,
219-8805635, DO YOU KNOW WHERE ONE IS?
FINDERS FEE $$$$$$$$
5/16
www.
magazine
.com
COMPANIES TO WATCH
Koppys Propane Inc.

Outside experience helps family-run retailer gain fresh perspectives
BY MEGAN SMALLEY | ASSOCIATE EDITOR
sense of pride emerges when a

propane retailer is able to keep
a business in the family for
multiple generations.
According to John A. Davis book,
Enduring Advantage: Collected Essays on Family Enterprise, only 30
percent of family businesses make it to
the second generation. Fourteen percent make it to the third generation.
Koppys Propane beat both of those
odds, having made it to the fourth
generation. The central Pennsylvania
propane retailer spun out of a general store business in the 1940s, and
the propane business has passed on
through the generations since then.
Like many who grow up in a family business, Kara Tucker and Kristen
Snyder, fourth-generation owners of
Koppys Propane, regularly helped
their parents with the business during
their childhoods. Tucker says she and
Snyder did everything and anything
for the business, from painting tanks
to answering calls.
With long-standing family businesses like Koppys Propane, theres
sometimes a need for outside perspectives especially after several generations of ownership. Tucker and Snyder
temporarily left the family business
after graduating from college to get
outside work experience and to improve their management skills. Both
graduated and received positions at
JPMorgan Chase in New York.
When Tucker worked for JPMorgan Chase in 2001, she learned about
new business practices and versatility,
which she brought back with her when
72 | LPGas May 2016
she returned to Koppys

Propane in 2006.
Im glad I went to
the city and tried my
own thing, Tucker
says. Had I stayed with
the family business my
whole career, I dont
think I would be as
good of a manager.
Snyder adds that
working for a large
company right after
college helped to boost
her confidence levels
when she returned to the business in
2010.
I had to experience being at the
bottom of a business and work my way
up, which gave me a new appreciation
of my ownership at the family business, she says.
Tucker also took a few MBA classes
at Northwesterns Kellogg School of
Management when she returned to
Koppys Propane. The MBA classes
gave her a greater understanding
about how to run a family business.
David Koppenhaver, her father and
co-owner of Koppys Propane, even
joined her in a class about how to keep
a business in the family.
With almost every class I took in
my MBA experience, I could immediately think about Koppys Propane and
how to improve it, she says.
Both Tucker and Snyder say they
gained invaluable insights from working and learning outside the family
business. Because of those experiences, they continue to seek outside
knowledge about the best ways to do
business.
From left: Kara Tucker, Helen

Koppenhaver, David Koppenhaver
and Kristen Snyder
FOUNDED: 1944
OWNERS: David Koppenhaver,
Kristen Snyder, Kara Tucker
COMPANY HEADQUARTERS:
Williamstown, Pa.
EMPLOYEES: 45
CUSTOMERS: 15,000
FOR MORE ONLINE:
www.koppyspropane.com
The fourth-generation owners involve Koppys Propane in the National
Propane Gas Associations (NPGA)
Benchmarking Council as one way for
the family company to hear outside
opinions.
Weve gained so much knowledge
in these meetings, Snyder says. We
had the idea to put handhelds in our
trucks through one of the NPGA
meetings. Because of that, weve
significantly boosted our delivery efficiency. LPG
Youve taken
the risk.
Now, enjoy
the reward.
Is it time to sell your

propane business?
If you feel the time is right, consider calling
Suburban Propane. With over 85 years of experience
in the propane industry, you can trust us to see the
process through with the highest level of efficiency
and integrity:
Youll receive a purchase plan thats clear, lexible,
and promptly executed
Your employees will be respected for their years
of service, their knowledge of your customers and
the foundation you and your employees have put in
place to service those customers over the years
Your valued customers will receive exceptional
service during and after the transition
For more information contact Mark Wienberg,
Chief Development Officer at (973) 503-9628
or mwienberg@suburbanpropane.com.
Where do propane marketers

worldwide ind the best quality
valves and regulators?
Right here in our back yard.
Ever since the beginnings of the propane
industry, marketers have
always been able to depend on
original RegO valves and regulators
for dependable performance
and reliability.
Products that are still
Made in America
and supported by the inest
distributor network
in the world.
Dont be fooled by cheap imitations.
Buy original RegO products
from RegO Authorized Distributors.
We Speak Your
Language...
100 RegO Drive, Elon NC 27244 USA

Phone: (336) 449-7707 Fax: (336) 449-6594
www.regoproducts.com

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THE PROPANE INDUSTRYS PREMIER INFORMATION SOURCE | www.LPGASmagazine.

LP Gas Hall of Fame: Four new

NEW CONSUMER CAMPAIGN

Why carry Unique appliances?

Great niche products that will immediately increase

Call us today for details

Unique 22 cu.ft. Stainless

Delivery and Unload

Rust Free Interiors

The Best Warranty

The propane industrys premier information source

8 | PHOTO DROP | A gallery of

10 | VITAL SIGNS | U.S. propane

58 | SAFETY FIRST | Life lessons

learned from the Propane

May 2016 LPGas | 3

60 | LEGAL BRIEF | A reminder for propane retailers to

62 | SERVICE AND MAINTENANCE | A mild winter

64 | PRODUCT SHOWCASE | Propane tank heaters,

72 | SNAPSHOT | Outside work experiences help a

Contact Superior Energy Systems

1360 East 9th St., Suite 1070

Advertising Sales & Marketing

VP Finance & Operations:

Reprints & Permissions:

VP Graphic Design & Production:

Only Lock Americas

Editorial Advisory Board

any device that can be opened with ordinary household

Prevent unauthorized ills.

Prevent unauthorized reconnections.

Lock Americas Fill Valve Lock and POLock

May 2016 LPGas | 5

EDITOR IN CHIEF | BRIAN RICHESSON

Nominations are open

pril is a busy month for us at LP

Lampton-Loves Rob Love accepts the

this primary election season, wed like

LP Gas Growth Summit

Our promotions really ramp up in

togas, commercial mowing, generators,

Charles Esten of the ABC drama Nashville

Daryl McClendon gives his

Sam and Ginny

performs during his keynote address at the

acceptance speech upon

daughter of VFG Leasing

details of the companys tank monitoring

The Ditech Testing team poses with a Gibson

guitar that it gave away in a drawing at the

Contact Brett Krause at 312.254.5954

Improper cargo tank

INDUSTRY NEWS & NUMBERS

EIA: US to increase production of propane,

.S. production of hydrocarbon gas

Sharon Lui analyst, Wells Fargo Securities LLC

Source: FactSet, partnership reports and Wells Fargo Securities LLC

10 | LPGas May 2016

New industry venture

LOWER THAN HIGHER THAN

Data courtesy of the Climate Prediction Center/National Weather Service

[BY LEO MICHAEL]