November 2016

ND Propane Gas Association

While you are shoveling snow, you may be dreaming of planning your summer vaca on. Make sure plan around the Propane Conven on! We have a great line up of educa onal mee ngs, awards and of course the Medora musical. If you have customers with a high school senior, be sure to remind them that NDPGA has two $1,000 scholarships that will be awarded at the conven on. They can find scholarship details on the web site at ndpropane.org.

67th Annual ND Propane Gas Associa on Mee ng & Conven on Tenta ve Schedule

Tuesday, June 13 6:00 pm NDPGA Board Mee ng

Wednesday, June 14 Stephanie Balmer President/COO Industrial Training Services

What ITS does – Skills assessment ‐ How to become a stakeholder for your company What do you really know about sta c electricity

Stuart Flatow: Propane Educa on & Research Council Plant Emergency Response Plan & PERC safety materials

Ken Kra NPGA State Director NFPA 58 – 2017 Edi on Updates

Awards Lunch – Sponsored by Solar Gas

General Membership Mee ng

Jerry Brick, NPGA Chairman‐Elect President of North Star Energy LLC

Philip Squair NPGA Senior Vice President Public & Governmental Affairs

Social, Dinner & Medora Musical Thursday, June 15 Golf Rough Riders Hotel www.medora.com 301 3rd Avenue Medora, ND 58645

1‐800‐633‐6721 (1‐800‐MEDORA‐1) Ask for Reserva ons. Prompt the reserva onist with your group code 5477 ND Propane Musical ckets can be ordered on the conven on registra on and

ckets will be distributed when you pick up your name badge.

Page 2

NDPGA Executive Committee

President Scholarship Coordinator Dale Beck Dakota Plains Ag Vice-President Lyle Stevens Horizon Resources Secretary/Treasurer Dan Marler Ferrell North America State Director Ken Kraft

NDPGA Board of Directors

Darin Adolphsen LPG & NH3 Inc.

Lee Fitterer Fitterer Oil & Gas

Darrin Johnson Northdale Oil, Inc.

Jim Renke Southwest Grain

Steve Ketterling Farmland Coop

Dan Erbes FEI Inc

Joe Fouhy Farmers Union - Beulah

Dave Walth Gray Oil

Jason Behm Behm Enterprises

Staff Executive Director Mike Rud

Office Manager Mary Nagel

ND Propane Gas Association 1014 E Central Avenue Bismarck, ND 58501

Phone:701-223-3370

NPGA / PERC Leadership Summit Each November, the National Propane Gas Association and Propane Education and Research Council host a Leadership Summit for State Association’s staff. NPGA and PERC provide attendees an overview of their efforts and plans for the next year. Association executives have opportunities to voice their opinions and suggestions that could help national programs work best in the states. States have regional sessions to discuss

of topics that are facing their states and best practices.

Council Chairman Tom Van Buren, partnering with the National Propane Gas Association and the Propane Education & Research Council, created a new committee to increase state association involvement with PERC. The PERC’s Industry Outreach Committee was created in 2016 to focus on state association engagement.

The Industry Outreach Committee, made up of state association executives John Jessup, Derek Dalling, and Steve Ahrens, Council members Bob Barry and Randy Doyle, Advisory Committee member Scott Brockelmeyer, past Council chairwoman Paula Wilson, and PERC staff member Pat Hyland, will coordinate with states on rebate programs, consumer education, training, and market and industry outreach communication.

How is PERC’s Proudly Propane campaign going? Nielsen ratings report that when consumers saw the ads they had more favorable perception of propane - up 16%. TV has the best ad recall. Digital and TV commercials were viewed 45 million times online . The ads are also being shown in movie theaters. The overall traffic to www.propane.com is up 79%. Direct traffic increase to propane.com is 297% increase and may be attributed to the portable propane generator giveaway.

Blue is going to promote appliances in the spring and fall of 2017. PERC is encouraging marketers to go off the national campaign with their own campaign either with TV ads tagged with their logo or promoting blue on your company web site. They are available to help marketers with any marketing question - call 1-724-IAM-BLUE.

Your Association office was certainly busy this fall with the October Convention and Vote No On Measure 4 efforts. Mike worked exceptionally hard both mentally and physically and is now enjoying some PT (pain & torture) for his overworked back. I wonder how that happened?

We wish you, your employees and families a Wonderful Christmas! Mary & Mike

November 2016 Page 3

Page 4 Propane Exceptional Energy

In August, NPGA's Executive Committee approved a $10,000 request from the West Virginia Propane Gas Association to hire a an expert witness to testify on behalf of the industry in a subsidized natural gas proceeding before the West Virginia Public Service Commission. While initially the effort appeared to be near impossible to win, on October 5 a settlement was submitted to the public service commission providing that Mountaineer Gas can only move forward with a trunk line to connect its system to an interstate pipeline to improve the safety and reliability of its service to the area. Further, its proposal to expand service in the Eastern Panhandle would not go forward, and Mountaineer would be prohibited from filing again to approve the expansion before 2018. Additionally, its policy of granting new customers 300 feet of "free" line would be eliminated in 2017.

The State Engagement Initiative continues to assist the Illinois and Michigan associations in their efforts to defeat legislative and regulatory proposals

Natural Gas Expansion Threats Con nue in 2017 allowing for subsidized natural gas expansion. Unfortunately, despite assistance from NPGA to the North Carolina Propane Gas Association, a subsidized expansion bill passed at the end of session and was signed by the governor.

NPGA also continues to enjoy success in the fight against subsidized natural gas expansion efforts in several states. While the natural gas industry continues to aggressively push subsidized expansion proposals in the legislative and regulatory arenas, the propane industry is fighting back - and winning - using integrated communication and political strategies. But while we celebrate victories in Maryland, New Mexico, North Dakota, Virginia and West Virginia, we are preparing for even more challenges in 2017. These wins have been accomplished through the use of smart communications, grassroots engagement, and industry expertise to rapidly respond and educate policymakers in various states.

Page 5

Page 6 Propane Exceptional Energy

Assessment Increase Effec ve Nov. 1

Propane Education & Research Council, 11-23 During its July meeting, the Council approved an assessment increase from $0.004 to $0.0045 per gallon. This increase went into effect Nov. 1, 2016. The additional revenue from the assessment increase is projected to be about $3 million. This will help fund programs in 2017, including the consumer education campaign, commercialization projects, and the Partnership with States Program.

Click here for assessment information.

Have questions about the assessment? Call the help desk at 856-872-4761or send an email message to perc@apex-is.com .

Federal Judge Temporarily Blocks Over me Rule That Was Set To

Take Effect December 1 A federal judge in Texas has issued an injunction blocking implementation of the U.S. Department of Labor's new overtime rule that was set to take effect December 1. The proposed rule would have raised the overtime threshold to $47,476 from today's current $23,660. The judge halted enforcement of the new rule in response to a lawsuit by 21 states and dozens of business groups. The lawsuit claims that the Department of Labor has overstepped its authority.

What's Next?

The ruling essentially puts the new rule on hold as the court case moves forward. The pause also gives Congress another chance to weigh the impact of the proposed rule changes.

Page 7 Propane Exceptional Energy

Electronic Logging Devices (ELDs) requirement from FMCSA. ELDs are required for commercial motor vehicles – transport or bobtail – but there are several exceptions, the most pertinent being an exception for CMVs that travel within a 100-air mile radius of the work reporting location. By virtue of their use, this usually exempts bobtails from the requirement to install ELDs. Below is information detailing other exceptions, which is quite helpful if a marketer is relocating a bobtail to a new location outside the 100-air mile radius, or driving it to Expo, for example. The deadline for installation of ELDs on applicable CMVs is December 18, 2017, but CMVs with automatic on-board recording devices can continue to use those until December 16, 2019. FMCSA provides an overview of the rule here, which includes a FAQ section. You may hear about a lawsuit filed by OOIDA against the regulation to require installation of ELDs. NGA is monitoring its progress, but as of now it has had no effect on the final rule or compliance deadline. Sarah J. Reboli, Esq. SReboli@npga.org Director, Regulatory Affairs NATIONAL PROPANE GAS ASSOCIATION 202-466-7200 ELECTRONIC LOGGING DEVICES: EXCEPTIONS

NPGA would like to share the following information in response to questions regarding the scope of the new electronic logging device (ELD) requirement by the Federal Motor Carrier Safety Administration (FMCSA).

The new regulation requires installation of ELDs in most vehicles that are required to prepare Records of Duty Status (RODS). FMCSA finalized the regulation on December 16, 2015 and the compliance deadline is December 18, 2017. Exempt from the ELD requirement are short-haul operations, which are for drivers operating within a 100 air-mile radius of their normal work reporting location and where the driver returns daily within 12 consecutive hours.

The specific questions that arose from NPGA members referred to the long distance transportation of commercial motor vehicles (CMVs) that are normally short-haul operations. For example, relocation of a CMV from one work facility to another that is farther than a 100 air-mile radius from the prior work facility; or, temporary transportation of a CMV to a demonstration or exhibition. In these situations, there are three potential exceptions:

Electronic Logging Devices

Driveaway-towaway operations are not required to use an ELD, provided that the vehicle driven is part of the shipment;

ELDs are not required on CMVs older than model year 2000; and

ELDs are not required for drivers who use paper RODS for not more than 8 days during any 30 day period.

Please note that the driveaway-towaway exception would be applicable for relocating a CMV to another work location, but would not cover transportation of a CMV to a demonstration or exhibition. The definition of a driveaway-towaway operation is available online in 49 CFR 390.5. The regulatory text detailing the exceptions is available here at page 78294.

Page 8

Clarifica on: DOT & OSHA Labeling Requirements

The U.S. Department of Transportation (DOT) and Occupational Safety & Health Administration (OSHA) published a joint guidance memorandum to clarify common questions about the labeling requirements of each agency. In 2012, OSHA finalized new Hazard Communication Standards (HCS2012) to align with the Globally Harmonized System (GHS). NPGA, along with other hazardous materials associations, met with DOT to share that HCS2012 appears to prescribe labeling requirement for bulk containers during the course of transportation. This would conflict with the Hazardous Materials Regulations (HMR) of DOT that prescribe labeling, marking, and placarding requirements for the transportation of hazardous materials.

The joint statement explains that the labeling, marking, and placarding requirements of the HMR apply to the transportation of hazardous materials; while the labeling requirements of HCS2012 apply to hazardous materials at the workplace. Neither set of regulations replace nor stand in lieu of the other. The joint statement by DOT and OSHA does not change the labeling requirements of the HMR or HCS2012. The joint guidance memorandum is available here through DOT and here through OSHA.

Please direct any questions to Sarah Reboli or Mike Caldarera at NPGA 202-466-7200

CETP Registered Skills Evaluator Number Beginning October 1, 2016, all CETP Skills Assessments are required to have a registered Skills Evaluator number in order to be processed. ITS will not process any Skills Assessment received without the registered Skills Evaluator number on October 1, 2016 and thereafter. The cost of the Skills Evaluator Training is $75 and the registration will remain current for 3 years. If you have questions, please contact Janet at Industrial Training Services at (270) 753-2150.

The following steps will guide you the through the process of the Skills Evaluator Training:

Login to the OnBoard LMS at www.cetpcertification.org

If you have been a stakeholder company in the Castle system or have previously taken CETP exams you are already set up in the system.

User Name: your last name + last 4 digits of your social security number example: Smith1234

Password: first initial of your first name, first initial of your last name + last 4 digits of your social security number example: bs1234

If you have never done either, go to www.cetpcertification.org and register as a new user.

Click on the Proctor/Skills Evaluator Training Instructions to review the step-by-step guide for Purchasing your own Proctor Training/ Skills Evaluator Training.

Skills Evaluators completing their training and passing their exam will be given a Registered Skills Evaluator Number to be used on all Skills Assessment Affidavit forms.

Page 9

Propane Council Approves 2017 Budget

Council to sustain consumer education campaign after strong results in 2016

WASHINGTON (November 18, 2016) — The Propane Educa on & Research Council (PERC), mee ng this month in Naples, Fla., approved a $40.7 million budget for 2017 that will include the consumer educa on campaign, safety and training programs, the Partnership with States program, and ongoing development of propane‐fueled products.

The current assessment rate of $0.0045 per gallon of odorized propane, which took effect Nov. 1, is expected to generate revenues of $38.9 million. The budget includes $29.5 million for program ac vi es.

Total Sources of Funds $40,743,137

DISTRIBUTION OF FUNDS

Total Distribution of Funds $40,490,380

UNCOMMITTED FUNDS $ 252,757

SOURCES OF FUNDS

2017 Budget Summary

Revenue $38,948,400 Investment Income $ Deobligations $ 500,000 Beginning Treasury $ 1,130,737

Administrative Expenses $ 2,653,500 Other Expenses $ 539,000 State Rebates $ 7,789,680 Programs $29,508,200

The consumer educa on campaign, which features a dog named Blue and the tagline PROUDLY PROPANE Clean American Energy™, ran on television, on radio, in print, and online for 90 days in 2016 and produced a 13‐point jump in favorability among Americans who indicated that they had seen one or both TV commercials. Nielsen research on the campaign showed that it had a posi ve impact on the way both propane users and prospec ve users perceived propane.

"The 2017 budget is designed to help maintain the momentum of the consumer campaign with adver sing that will run from March through May next year," PERC President and CEO Roy Willis said. "The budget also provides con nued support for our safety, training, and research programs as well as key industry engagement efforts."

The Propane Education & Research Council was authorized by the U.S. Congress with the passage of Public Law 104-284, the Propane Education and Research Act (PERA), signed into law on October 11, 1996. The mission of the Propane Education & Research Council is to promote the safe, efficient use of odorized propane gas as a preferred energy source.

Page 10

By MSG Payment Systems MSG Payment Systems, NDRA member benefit, provides competitively-priced merchant ser-vices with time-tested,

superior service. Request your free quote today - send two recent merchant statements to 515-334-7461 (fax) or hello@msgpay.com. Questions? We’d love to hear from you! Contact us at 1-888-697-8831 or hello@msgpay.com. New technologies, like cloud-based POS systems and mobile wallets, allow retailers to streamline operations and adopt new marketing strategies. These statistics illustrate how technolo-gy influences customer service and payment acceptance. 1. By the end of 2016, there will be a 210 percent increase of the total amount of mobile payment transactions. Experts predict that mobile payments will continue to grow as mobile wallets gain popularity with consumers and retailers. Mobile wallets, such as Apple Pay® and Android Pay™, of-ten attract younger consumers who are looking to use alterna-tive methods of payment. “Younger consumers generally have fewer apprehensions when it comes to experimenting with and eventually adopting new technologies,” said eMarketer analyst, Brian Yeager. “That’s certainly true for mobile payments, where security concerns are more pronounced among older consumers. Ulti-mately, mobile wallets will need to have a strong track record of security to attract more users across all demographics long-term.” 2. 50 percent of consumers want the ability to buy online and pick up the product in-stores. Consumers look to online shopping to buy more conveniently. Retailers must expand beyond brick-and-mortar and establish a web presence where consumers can browse and purchase products online. Offering in-store pickup or ship-to-home options offer great value to the consumer, too. 3. Retailers will have a 90 percent EMV adoption rate by 2017 Although retailers’ EMV adoption was initially low, experts predict that almost 90 percent of U.S. retailers will have EMV-capable solutions by the end of 2017. Already the standard in many other countries, the U.S. was one of the last major econ-omies to adopt this payment technology. EMV chip cards will continue to bring enhanced security that protects retailers and consumers from card-present fraud. “We’re seeing EMV is having a positive impact on counterfeit fraud,’’ said Stephanie Ericksen, Vice President of Risk Prod-ucts at Visa. “Merchants who implement chip, their counter-feit fraud is going down, while those still finalizing plans, their counterfeit fraud is going up.’’ 4. 75 percent of U.S. businesses with a customer loyalty program experience profitable returns on investment.

Technology’s Influence At The Point‐of‐Sale Loyalty programs are an easy method for retailers to gain re-peat business and add a new revenue stream. With deals going digital, retailers can utilize new technologies for loyalty pro-grams. Many cloud-based POS systems offer integrated cus-tomer loyalty programs that allow retailers to process, man-age, and track their loyalty programs. “These programs are designed to get loyal customers into these stores more often, and they often work,” said Matt Schulz, Senior Industry Analyst at CreditCards.com. “Plus, if people are loyal customers of a store, they’ll be willing to pay for these types of programs—as long as they feel like they’re getting value. That’s the whole key: Offering them something of value, something that is unique to your store and that tar-gets the customers’ wants or needs.” Feedback from the retail industry helps tech companies tailor products to benefit the consumer as well as the retailer, which increases overall adoption at the point-of-sale. As more solu-tions hit the market, retailers can explore technologies to de-termine which complement their business model and can help them achieve growth targets. Apple Pay® is a trademark of Apple Inc. Android Pay™ is a trademark of Google Inc.

Page 11