AGENDA Introduction Operations UpdateGreg10 Minutes Regulatory Update EPA / RP 1200 40CFR &...

AGENDA

Introduction • Operations Update Greg 10 Minutes

Regulatory Update

• EPA / RP 1200• 40CFR & Enforcement• EVR Expansion• Loop / RP100

Jonathan 15 Minute

Product Overview & Competitive Selling

• Environmental ProductsOverflow Prevention ValvesSpill ContainmentManholesEmergency Valves

Chuck 30 Minutes

• Piping and ContainmentPipePipe FittingsEntry FittingsSumps & CoversLoop

Jonathan and Gene 30 Minutes

• Fuel Compatibility Chuck 5 Minutes

2013 Projects • UL Updates• SGD Projects

Kevin 15 Minutes

Commercialization

• Distributor Realignment Jonathan & RM’s 20 Minutes

• Target Accounts / How We Won Jonathan, RM’s & DM’s 30 Minutes

• Industry Trends and Threats Jonathan, RM’s & DM’s 30 Minutes

• 2012 OTD 95% vs 93% in 2011

• 2012 Fill Rate 92% vs 88% in 2011

• 2012 Lead Time 11 days vs 13 in 2011

• Purchased new 5 Axis CNC lathe to insource coupling components.

• Insourced Conquistador assembly to reduce ATP to 5 days

Operations

FCS Operations Update

2011 Avg

Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-120

10

20

30

40

50

60

70

80

90

100

110

93 95 97 93 90 94 97 96 95 96 95 97 98FCS ON-TIME DELIVERY

Mth Avg % Goal YTD

Operations

FCS Operations Update

Operations

FCS Operations Update

• Purchase new Extrusion Line• Purchase new CNC Machine for 10 cell Tops• Make new Tombstones for 10 plus loop bodies, 71SO’s

and 2” 10 bodies• Casting automation project (cost reduction and

quality improvement)

Operations

FCS Operational Improvements for 2013

REGULATORY UPDATEOPW Fueling Containment Systems – All Systems Go!

• November 18th, 2011 The EPA proposed Revisions to the 1988 federal UST regulations

• April 16th, 2012: The 150 day comment period ended

• 191 PEI affiliates made comment…and here is what they said:

Regulatory Update

US EPA and 40 CFR

Regulatory Update

EPA Review of Shortlist Proposals / Review of Information

1. Walk through inspections• Negatives of 30 day inspections far out way benefits

― Manholes are heavy and in the way of traffic patterns. ― Constant opening may damage corresponding seals.― Cumbersome so inspections might not get done or done correctly

• Alternatives are:― Require less frequent inspections (quarterly or semi annual) ― Wave inspection of tank sumps if sensors are installed ― Allow development of new technologies not requiring lid removal― Include language to offer relief if lids are frozen

• Remote fueling facilities:― Unmanned and Low throughput inspect on more manageable annual basis ― Limit the inspection scope of work ― Provide thresholds based on throughput

• Monthly inspections:― Replace all references with 30 days vs monthly

2. Spill prevention equipment tests

• Spill prevention equipment and overfill prevention on same test intervals

• Spill prevention to be tested every 3 years with overfill prevention

3. Performance standards for New UST systems May allow ball floats except in applications like pumped deliveries, remote fills, suction systems, coaxial stage I vapor recovery and in conjunction with an overfill valve.

4. Phased in testing requirements

• Standard deadline vs deadlines based on UST installation dates

Regulatory Update

EPA Review of Shortlist Proposals / Review of Information

5. Secondary containment areas• Top of the list for comment and concern

― Not fair to companies who have been building with secondary containment spec vs not ― Desire establishment of a compliance date to meet secondary containment

requirements ― A 5 year testing frequency for installs after agreed date ― exemption for current UST's ― Allow facilities to modify to single wall methods and continue if secondary fails tests― The use of a discriminating sump sensor in lieu of every 3 year testing ― An exemption from secondary containment testing provided there are sensors in the

sumps― conduct annual primary line tightness tests and leak detectors, conduct visual

inspections of sumps and test after repairs.― Providing UST owners up to 10 years to repair and/or replace piping and new tests ― Do nothing and reevaluate data showing releases in secondarily contained vs single wall

Regulatory Update

EPA Review of Shortlist Proposals / Review of Information

PRODUCT OVERVIEW AND COMPETITIVE SELLING

OPW Fueling Containment Systems – All Systems Go!

Product Overview and Competitive Selling: Environmental Products

Overflow Prevention Valves: Us vs. Them

71SO Product Line

Unique testable feature

Swing Arm Float

Tighter seals to maintain vapor tightness

Autolimiter II– Vertical Float

– Does not generate torque to allow super tight seals

– Often does not maintain vapor tight seals

Both:• EVR certified designs available• Can be set to any high per local regulations• Specific version for application (Coaxial, Poppeted Coax, E85)

Product Overview and Competitive Selling: Environmental Products

Overflow Prevention Valves: Testable Feature

• New Product Launched in October 2012• Allows Overflow Valve to be functionally tested

without removing from the ground:― Simple test avoids an hour of removal and

reinstallation time for 2 contractors― Eliminates opportunity to damage float mechanism

and critical seals for vapor tightness

• In process of gaining EVR and DEQ approvals

Product Overview and Competitive Selling: Environmental Products

Testable Feature How to Install

• Cut Upper & Lower Tubes (calc change)

• Align Test Orifice with Float Arm• Install Inlet Adapter (71SO-ToolCT or

modified 71SO-Toolc) • Cable through orifice, screw Plug

into top • Pull wire to float mechanism, cut 4

inches of wire beyond attachment hole Aligned

With Float Arm

Product Overview and Competitive Selling: Environmental Products

Testable Feature How to Install

• Loop cable around rivet and back through Ferrule

• Press float against valve body• Position rivet near top mounting hole• Pull loop tight around rivet and

crimp• Trim excess wire• Rivet to mounting hole

Product Overview and Competitive Selling: Environmental Products

DW Spill Containment: Us vs. Them

DW Edge

Built in Interstitial Test Port

No Dynamic Seals (bellows allow ± 1 ½ adjustability)

Cast Base “Bowl” contains residual fuels

FFS Defender

– Dynamic Seal Adjustability

– Exposed Seals at Base

– No Permanent Test Port

– No SC Cover

Both:• Double Wall Containment and Grade Replaceable• Upgradable from Single to Double Wall• EVR certified

Product Overview and Competitive Selling: Environmental Products

DW Spill Containment: Us vs. Them

DW Edge Built in

Interstitial Test Port

Roto-molded Bellows

Epoxy Coated Cast Iron Base

EMCO– Sealant “Goop”

Throughout

– No Permanent Test Port

– Uncoated Metal Insert in Plastic Base

Both:• Double Wall Containment and Grade Replaceable• Upgradable from Single to Double Wall• EVR certified

Product Overview and Competitive Selling: Environmental Products

Composite Manhole Covers: Us vs. Them

Conquistador Plus

Stronger Load to Failure

Less Deflection

Color Covers, Bolt Down Lids, and Key Lift Options

Flexing– Partial

Fiberglass Sheets, questionable long term reliability

Both:• H20 Rated• Cam Lock Option Available

Product Overview and Competitive Selling: Environmental Products

Emergency Valves: Us vs. Them

10 Valve Line

Epoxy Coated

Machined Groove

10Plus Models For Nuisance Breaks

E85 UL Listed Model

Competition

– Zinc Plated- less corrosion resistant

– Cast Shear Groove

Both:• Shutoff for Dislodging Impact and Fire• Replaceable Tops• UL / Ulc Listed

FRP – A Technology and Design Review

Product Overview and Competitive Selling: Piping & Containment

SW FRP pipe Coaxial FRP pipe

3 over 2 FRP pipe

FRP – A Design Review

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“Trends in Maryland UST Test Results 2004 - 2011”, Crompco, LLC

The Hard Facts.....

24

The Hard Facts.....

“Trends in Maryland UST Test Results 2004 - 2011”, Crompco, LLC

25

Top 10 things NOT to do when installing Fiberglass Pipe1. DO NOT ship loose pipe on a commercial truck

2. NEVER use a grinder or sander to make a taper

3. NEVER use partial cans of adhesive mix

4. NEVER put too much adhesive on a joint

5. NEVER over torque a fitting

6. NEVER use a hammer directly on the fitting

7. NEVER over tighten secondary containment bolts

8. NEVER use the wrong size air gauge

9. NEVER glue in the rain

10. NEVER put stress on pipe

Fiberglass Pipe – Top 10

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Top 10 things THAT SHOULD be done when installing Fiberglass Pipe

1. ALWAYS inspect the pipe when it is delivered

2. ALWAYS provide adequate spacing and back fill

3. ALWAYS use the proper tools

4. ALWAYS mix full cans of adhesive resin and hardener

5. ALWAYS sand taper joints before gluing

6. ALWAYS make sure the temperature of adhesive is above 50 degrees

7. ALWAYS use the correct size gauge for testing

8. ALWAYS keep pressure gauges on pipe

9. ALWAYS use reinforcement rings on secondary clamshells (in CA)

10. ALWAYS call if you have any questions regarding installation.

Fiberglass Pipe – Top 10

• Common in retro applications• Found in small lot stations

3 over 2 FRP with multiple direct bury non-inspectable joints

FRP, A Design Review

Branch / Trunk and Feed Layout

• Brittle Construction: Pipe can crack or facture with little impact during and after installation

• Manufacturing Consistency: Complete and even saturation of the thermoset resin (polyester or vinyl ester) into the glass fiber has shown to be inconsistent .

• Glued and Prepped Joints: 2-part fiberglass adhesives are sensitive to skilled labor, outside temperatures, moisture, oxidation and dirt and grease contamination.

Crack impact damage

Leak due to improperly cured joint

FlexWorks vs. FRP

• Numerous Joints: There is as much as 3 times the piping joints as compared to our FlexWorks system.

• Inspectable Joints: More then 70% of all FRP piping joints are not able to be visually inspected (directly buried)

• Cost Comparisons: FlexWorks pipe will certainly have a lower installed cost than FRP.

• Ameron LCX’s low volume secondary containment is susceptible to no communication with excessive glue

• Flow loss due to multi-fittings and hard turns

Abuse of cleaned secondary pipe

Improper joint preparation

FlexWorks vs. FRP

Clamshell design for DW Coaxial Joints• Cut• Scrape• Clean• Coat• Kick• Repeat

FRP – A Design Review

LCX Coaxial Manifold

Intense Preparation of Joints• Cut• Scrape• Clean• Coat• Kick

FRP – A Design Review

LCX Coaxial Manifold / SW Vent

• Labor Intensive• No engineered seals• No flexibility

• Stabilizing set screw• Insulation to help minimize cure time• Climate sensitive

FRP – A Design Review

Bravo Rigid Entry Fittings

Product Overview and Competitive Selling: Flexworks Products

FRP Entry Fittings:

Smith Single Wall FRP Fitting Smith Double Wall FRP Fitting

Product Overview and Competitive Selling: Flexworks Products

Rigid Entry Fittings: Us vs. Them

OPW REF Fitting• Sealing redundancy

throughout. • Maintains flexibility to

accommodate pipe and ground movement

APT Style Rigid• Not released• Allows lower flexibility of

pipe.

Product Overview and Competitive Selling: Flexworks Products

Flexible Inside the Sump: Us vs. Them

OPW Plumbing

New APT Plumbing

Flex-ing Riser

New Test Boot

Rigid Fitting

Tee Fitting (Sanitary?)Jumper

Barbed FittingDPC Coupling

REF Fitting

Shear Valve

Junction

Product Overview and Competitive Selling: Flexworks Products

Pipeline Analysis: Us vs. Them

OPW FLEXWORKS

Stainless Steel Construction

1/8” Test Port

DW Fittings

No Jacket Stripping

APT

― Brass/SS Construction

― SW Fittings

― Must Strip Jacket

― Test Boot adds (2) leak points in testing

Product Overview and Competitive Selling: Flexworks Products

Encore Conduitless Sump: Us vs. Them

OPW Encore APT Encore

Product Overview and Competitive Selling: Flexworks Products

Encore Conduitless Frame: Us vs. Them

OPW ENCORE

Thick Galvanized Frame

(4) Conduit Holes Each Side)

APT ENCORE

― Thin Powder Coated Frame

― (2) Conduit Holes Each Side

Product Overview and Competitive Selling: Flexworks Products

Encore Conduitless Sump:

DSW-1836CL

• Allows (4) Piping Entries• Conduitless Frame• Stackable (Easy Shipping)• Height Adjustability• Available NOW!!

DSW-1836CL

Part Number Description List Price

DSW-1836CL Two-Piece Polyethylene Encore Dispenser Sump $724.75

206724 Metal Top for Encore Dispenser Sump $470.00

206725 Polyethylene Base for Encore Dispenser Sump $425.80

Product Overview and Competitive Selling: Flexworks Products

Fiberglass Sump and Lids: CLC-33 vs. Fiberlite

• Cover Latch System• Sold as a Kit• Retrofit for Poly Sumps• Available Now!!

Part Number

Description List Price

CLC-33 Latched Fiberglass Tank Sump Lid $725.00

Part Number Description List Price

TSMF-4536 Fiberglass Medium Bury Tank Sump $2,450.00

TSDF-4536 Fiberglass Deep Bury Tank Sump $2,700.00

TRFS-4260 Fiberglass Deep Bury Tank Riser Sump Assembly $2,850.00

Product Overview and Competitive Selling: Flexworks Products

Fiberglass Sump and Lids: CLC-33 vs. Fiberlite

• Lid Holds the Gasket• Pull/Turn Tabs to Seal

Gasket.

• Metal Riser Ring Holds Metal Clasps.

Fuel Compatibility

• New Table Created for 2013 Catalog• Includes High Ethanol and High Biodiesel Fuels• Upload to OPW Site and PEI Fueling Compatibility

Library?

Fuel Compatibility

DEF Compatibility

Many DEF Compatible Components Including:– Flexworks Pipe with SPC or SSPF Fittings– 60V-DEF Shear Valve and Adapters– Stainless Steel AST Spill Containers– Composite Base UST Spill Containers with Plug– Stainless Steel Flex Connectors– Dispenser and Tank Sumps and Entry Fittings

WHAT’S NEW FOR 2013OPW Fueling Containment Systems – All Systems Go!

New for 2013: SGD Projects, continued

Low Cost Replaceable Spill Container• New EPA Regulations will require testing• Protect our market share against low cost

compliance solutions• Explore what market demands

– Single wall replaceable?– Retrofit into existing containers?

?2013

New for 2013: SGD Updated UL Standards

PV valves/caps and adapters

• Old standard - Did not have an official standard previously but was loosely based on UL 842. Testing included flow testing, valve actuation, endurance, freezing rain, air aging of materials, and soak of materials.

• New UL 2583 standard – includes functional, drop, assembly, impact, air aging, UV light, salt fog, fuel vapor exposure to 4 fuels, icing, cyclic endurance, and optional leak rate tests.

New for 2013: SGD Updated UL Standards

Spill containers/containment sumps/entry fittings

• ULC C58.19 standard – included air aging, immersion, leakage, connector strength, humidity, water tightness, rough usage, low temperature impact resistance, freeze thaw, salt spray, and puncture resistance testing.

• New UL 2447 standard – includes material

property, drop, impact, cover strength, leakage, UV exposure, nonmetallic stress crack, and long term compatibility in 11 fluids testing.

New for 2013: SGD Updated UL Standards

Overfill Valve

• Old ULC C58.15 standard - included air aging, immersion of materials, leakage, hydrostatic strength, endurance, UV light, extreme temperature, and salt spray testing.

• New ULC S661 standard – includes same items from old standard plus new tests for electrical continuity, immersion in Fuel H, new endurance, repeatability, and shut off.

New for 2013: SGD Updated UL Standards

Low Cost EN Pipe

• Gain traction in Global Markets with US Style Flex Pipe

• Control costs to price competitively to black pipe solutions

• Use Pipe as beachhead product to pull through OPW systems and components

New for 2013: Other Projects

Active projects• ¾” and 1” Bolt on coupling• PV vent for EVR• 2” 10 plus valve (standard and loop)• Clam shell test boot• New 1 ½” and 2” California Pipe• Cost reduced brass components (61 VSA,

SLAP)

Sustaining/Product Extension• Loop FRP design enhancements• Redesign Union shear valve• Helix dispenser sump• 3” REF• 3” DPC• E-85 Valve identifier• NPT Tees and Elbows

On the Horizon• Next Generation Tank

Sump• FRP Strategy• Vent Pipe• FRP Cover• EVOH for UL pipe

Commercialization

• Distributor Realignment

• Target Accounts – How We Won

• Industry Trends and Threats

Customer Highlight

54

Customer: Speedway

Location: Enon, OH

Current Supplier(s): APT

Ameron LCX

Opportunity

Why We Won/Lessons Learned

• Persistent and patient even when they were purchasing zero OPW equipment (maintained excellent relationship)

• Used contractors as additional sales people• Visit to Smithfield with key people in Construction

and Purchasing• Pushed on shallow bury for minimal water intrusion

and quick easy hydro testing• Met every delivery demand

• Speedway needed to build over 20 locations in 3rd and 4th Quarter of 2012.

• Speedway scheduled to build 90 sites in 2013

• Each Loop site worth $25,000 in piping and containment alone – does not include underground and tank equipment

Issue/Hurt

• Dry sumps needed for strict OH and KY regulations.• OH enforcing hydro testing every 3 years • Aggressive construction schedule in short period of time required quick installation and no supply interruptions from manufacturer.• Had experienced quality issues from both NOV and APT

Customer Highlight

1

Customer: Murphy Oil

Location: El Dorado AR.

Current Supplier(s): UPP/Emco (old) now OPW

Opportunity

Why We Won/Lessons Learned

• We work as a team to win the customer. • We repaired our relationship. OPW is no longer a 4 letter word in El Dorado. “The New OPW”• We did not let Murphy/Distributor dwell on price• We did what we said we would do Training/Delivery/Product easy to install• Forged relationships with the account managers in distribution with responsibility for Murphy.

•Provide underground products for new sites.•Provide products for legacy sites.•Aggressive growth plans now in place.

Issue/Hurt

• The relationship between Murphy and UPP soured after the Franklin acquisition. • Problems with UPP products were not being being addressed adequately/timely.

Customer Highlight

1

Customer: Royal Farms

Location: Baltimore, MD

Current Supplier(s): UPP (old) now OPW

Opportunity

Why We Won/Lessons Learned

• We worked as a team to win the customer. • Showed better overall system to customer andcontractor.•Customer is utilizing the REF fitting – no rubberin sumps•Working closely with architect and engineering firmto become an integrated partner with Royal Farms•Value added that we have a full team to assist

•Provide Flexworks piping for new sites.•Provide alternative-better product offering

Issue/Hurt

• Issues with UPP product quality and delivery• Installer issues with UPP-length of time to install