22 // Interview with Joe Phillips Creedmoor Fuel Services, Inc. 23

O f f i c i a l P u b l i c a t i o n o f t h e No r t h C a r o l i n a p r op a n e g a s a s s o c i a t i o n
NCPGA
NEWS
2015 // OCTOber
14 //
Convention Recap
22 //
Interview with Joe Phillips
Creedmoor Fuel Services, Inc.
23 //
C Propane Marketers to Benefit
N
From Crestwood’s New Rose Hill
Rail Terminal Opening in Early 2016
Cyndi Kibler,
2016 NCPGA
Chairman
www.ncpga.org
3
NCPGA
NEWS
2015 // OCTOBER
FEATURES
14 //
22 //
Convention Recap
Interview with Joe Phillips –
Creedmoor Fuel Service, Inc.
23 //
North Carolina Propane Marketers to
Benefit From Crestwood’s New Rose Hill
Rail Terminal Opening in Early 2016
Departments
06
08
09
11
13
18
19
20
25
Published for
North Carolina
Propane Gas Association
5109 Hollyridge Drive
Raleigh, NC 27612
p. 919.787.8485
f. 919.781.7481
DIRECTOR of PUBLISHING
Krystie Dovenmuehler
COPY EDITOR
Carrie Bethel
LAYOUT & DESIGN
Jeremy Davis
SALES MANAGER
Marc Lucia
// Chairman's Letter
// President/CEO Letter
// Code Compliance
//
What Entrepreneurs Should Be More Worried
About Than The Fed Raising Interest Rates
// What's Wrong With This Picture?
// Proper Use of Equipment in Propane Systems
// PERC Announcement
//
History Shows, Time in the
Market Beats Market Timing
// Supplier Profiles
To submit editorial or
request information —
email [email protected]
p. 919.787.8485
For information
regarding advertising
please contact Marc
at 800.572.0011 or
[email protected]
Published by
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1107 Hazeltine Boulevard,
Suite #350
Chaska, MN 55318
p. 800.572.0011
f. 952.448.9928
www.emconsultinginc.com
Please note: Editorial and contents of this magazine reflect the records of the North Carolina Propane Gas Association (NCPGA). NCPGA has done their best to provide
useful and accurate information, but please take into account that some information does change. E&M Consulting, Inc., publishers and NCPGA take no responsibility
for the accuracy of the information printed, inadvertent omissions, printing errors, nor do they endorse products and services. We take no responsibility regarding
representations or warranties concerning the content of advertisements of products/services for a particular use, including all information, graphics, copyrighted materials,
and assertions included in the advertisements. The reader is advised to independently check all information before basing decisions on such information.
www.ncpga.org
5
C H A I RM A N ’ S L ETTER
Chairman's Letter
As I begin writing my first article as
your Chairman of the Board, I am
enjoying the changing weather. I see
leaves changing colors and love the
night time temps in the 50's and 60's.
Fall is upon us, and winter is right
around the corner.
fun as we did! On Monday night we
enjoyed the Roush Fenway event. The
tour through their shops was amazing.
Did you know it takes about 900 man
hours to build a race car from start
to finish? Lots of folks enjoyed the
driving simulator.
If you did not make it to the Annual
Convention in Concord, you missed a
great event. The corn hole tournament
was a big hit on Sunday night. The
food was excellent and the weather
cooperated. Paul Harris and Tom Krupa
were the big winners. Close to $400
was raised for the NCPGA PAC.
On Tuesday, we had two very
informative seminars, and a delicious
lunch and presentation by Principal
Financial Group. After our banquet
we all had a great time at the Casino
night. J. D. Bain was the winner of the
$1,000 grand prize.
On Monday, the non-golfer group
went to City Kitchen to cook and had
a lovely time. We prepared a fourcourse mediterranean meal and then
sat down and enjoyed it together. I
don't think the golfers had as much
6
NCPGA News | October
Thank you to the Conventions and
Meetings Committee for such an
excellent job. The venue, food, and
activities were all exceptional. A
special thank you as well to the
NCPGA staff for doing an awesome
job, as usual.
I look forward to serving as your
Chairman of the Board for the coming
year. I will be contacting many of you
personally to ask you to get involved
by serving on a committee. There are
so many opportunities to volunteer
with our great association, and I
promise you that you will get so much
more out of it than you give.
At my induction, I spoke on the many
Faces of Propane I see as I travel
around our great state. The propane
industry is alive and well in NC, and I
see a bright future ahead of us.
Until next month...
Cyndi Kibler
NCPGA CHairman
PRESI D EN T/C EO
Clean Diesel?
There are over 500,000 children being safely
driven to school on propane school buses
and over 8,000 propane buses on the roads
across the United States. North Carolina
currently uses 27 million gallons of diesel
annually for its school bus fleet. If we can
save the state a dollar a gallon….that’s a lot
of money. NC currently has three propane
school buses in use. I am proud of those
NCPGA
NEWS
John R. Jessup, President/CEO
Dave Donahue, Director of Code Compliance
and Education
Brenda Cole, Office Manager
Jon Carr, Lobbyist, Legal Counsel
three propane buses. it took us over four years to get those into the NC
school bus fleet.
5109 Hollyridge Drive • Raleigh, NC 27612
Ph. 919-787-8485 • Fax 919-781-7481
I am not a chemist or engineer, but when I heard that the DOE considers
a new Diesel bus to be just as clean as a propane bus when it comes to
emissions I continue to be a little skeptical. Diesels chemical make-up is
somewhere between 11 to 18 carbon atoms. Propane only has 3 carbon
atoms. Clean diesel can only be achieved with the use of Diesel Exhaust Fluid
(DEF) heavy filters and catalytic converters to burn the excess emissions
in order to lower NOx concentration in the diesel exhaust emissions from
Cyndi Kibler . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chairman
Jeff Wade . . . . . . . . . . . . . . . . . . . . . . . . . . Chairman Elect
Jeff Ruffner . . . . . . . . . . . . . . . . . . . . . . . . . Vice Chairman
Billy Foust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Secretary
Joe Phillips . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Treasurer
David Briles . . . . . . . . . . . . . . . Immediate Past Chairman
diesel engines.
The recent Volkswagen story that exposed VW for cheating on exhaust
emission tests in order to pass gave me even more reason to be skeptical. In
two days VW stock plunged 29% and it’s still falling.
Recently a group of us from NCPGA, Roush, and Bluebird met with the
Department of Public Instruction (DPI). We needed to clear up a few of the
errors and misconceptions about propane school buses from a pilot program
report that was published back in Feb of 2014. I won’t bore you with a recap of
District Directors
District 2: Scott Prewitt . . . . . . . . . . . . . Swannanoa, NC
District 3: Gary Chambers . . . . . . . . . . . . . . Advance, NC
District 4: Ben Lisk . . . . . . . . . . . . . . . . . . Albemarle, NC
District 5: (TBD)
District 6: Stewart Chance . . . . . . . . . . . . . St. Pauls, NC
District 7: Alex Jernigan . . . . . . . . . . . . . Smithfield, NC
District 8: Dennis (Buddy) Swain . . . . . . . Columbia, NC
District 9: J.C. Burnette . . . . . . . . . . . . . Chocowinity, NC
the whole report and its data, but in a nut shell it said diesel buses were just
as clean and less expensive to run than propane buses. At the time the report
was published we were dealing with the polar vortex and some significant
supply issues so nobody was in a position to react to the report at that time.
I continued to forward emails to DPI staff over the past year about all the
good news happening with propane school buses in other states. Broward
County in Florida saved $600,000 by switching to propane. DPI finally asked
us to come in and re-visit the propane bus option. We had a very productive
meeting with them and as a result we are in the process of doing another pilot
program in 4 school districts with Roush and Bluebird that we are confident
will result in DPI embracing propane school buses once it is completed.
We are implementing new data recorders that will capture the data more
Committee Chairs
Advisory Board . . . . . . . . . . . . . . . . . . . . . . . . David Briles
Convention . . . . . . . . . . . . . . . . . . . . . . . . . . . Keith Barker
Education/Safety . . . . . . . . . . . . . . . . . . . Donald Godfrey
Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . George Lipford
Governmental Affairs . . . . . . . . . . . . . . . Ray Kazakewich
Membership Services . . . . . . . . . . . . . . . . . . Larry Mizell
NC Young Gassers . . . . . . . . . . . . . . . . . . Stewart Chance
Promotions, Public
Relations & Publication . . . . . . . . . . . . . Jaime Alberti
Technologies/Innovations . . . . . . . . . . Armistead Mauck
Suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . Grant Grimshaw
accurately. In a perfect symmetry of timing PERC is also rolling out a new
school bus campaign.
Finally I will leave you with a quote from Kevin Harrison at DPI, “Of all the Alternative
Fuels we have looked at. Propane is by far the best one of them all.”
John Jessup
President/CEO
8
NCPGA News | October
Notice
As the official publication of the NC Propane Gas
Association, the NCPGA News carries authentic notice
pertaining to the activities of the Association. In other
respects, statements of fact and opinion are made on
the responsibility of the authors and contributing writers
alone, and do not imply an opinion on the part of the Board
of Directors, the Officers, or the Membership.
C OD E C O M PL I A N C E
The Impact of the
Philadelphia Story
By David Donahue, NCPGA Director of Code Compliance and Education
There are certain events that can have a
major impact upon an industry. For the
Propane Industry, Ghent, WV, is one and
it seems Philadelphia, PA will be another.
On July 1 of last year, a 100# cylinder
used on a food truck exploded killing
two and injuring several others. This
tragedy was preventable given current
industry and code standards. What this
event highlights is what can happen
when we let complacency creep into our
daily work day. All the details have not
been released, but what is known is
that the cylinder involved in the recent
tragedy had not been properly inspected
and requalified prior to refilling.
of Agriculture is performing these
inspections for Wake County. State law
does not prohibit local jurisdictions from
adopting NFPA 58, either in full or in
part, as long as they inspect to the same
level as the Department of Agriculture.
This could potentially add more propane
inspectors within the state.
Because of this deadly event, the
Department of Transportation is taking
a closer look at propane companies’
inspection records and procedures.
Several North Carolina Marketers
have been inspected by DOT over the
summer. Several North Carolina cities
and counties are also stepping up their
vigilance. Wake County is requiring a
safety inspection of the propane systems
on food trucks before they will issue a
health permit to operate. Wake County
is also looking to restrict locations where
food trucks can operate. Several other
cities and counties are looking to do
the same. As of now, The Department
So, what can I do now?
First thing you can do is to make sure your
company has a copy of the Dispensing
Propane Safely Video. You can obtain
a copy of this training video by going to
www.propanemarc.com/ncpga
(PRC
003510). Make sure your employees and
the employees of the dispensing station
you operate are properly trained and
documented. Module 5 is on Inspecting,
Filling and Labeling Small Cylinders. This
$9.00 PERC training package contains
not only a DVD training video, but also a
CD containing a training manual, quizzes
and certificate of completion.
PERC is also stepping forward and has
a new Docket. (Docket 20636: Standalone Cylinder Requalification Course)
This will be a one day course focused on
cylinder requalification. Once this course
becomes available we will be adding it to
our CETP class offerings.
The next thing you can do is to become
familiar with section 6.24 in NFAP 58
(2014) LP-Gas Systems on Vehicles
(Other Than Engine Fuel Systems).
This is the section that the Department
of Agriculture refers to when they inspect
food trucks in Wake County. Familiarize
yourself and your employees with these
code requirements. It might also be a
good idea to let any dispenser operators
that you service know of them as well.
As we teach in our CETP classes, Safety is
everyone’s responsibility. Propane is a safe
and versatile fuel. We just need to remain
vigilant and not become complacent.
www.ncpga.org
9
By Steve Parrish, Contributor
On the precipice of the Federal Reserve’s
verdict on whether or not to raise interest
rates, I think Alfred E. Neuman has it right.
“What, me worry?” the goofy, frecklefaced Mad magazine mascot and cover
boy would say.
Despite all the hand wringing in the
financial press about the Federal Open
Market Committee’s Wednesday meeting,
I suggest we all adopt Alfred’s attitude. The
Fed’s going to do what the Fed’s going to
do, and we can only work with what they
give us. They’ll either keep rates where
they are or raise them, and the markets
will respond accordingly.
There are, however, other pressing macro
issues that allow the entrepreneur an
opportunity to anticipate, respond and
adapt. If you want to worry, these are
the challenges more likely to affect your
ongoing business than what is decided by
the Federal Reserve Board of Governors.
Where is employment law going,
and how should my business adapt?
This summer has seen a lot of stirring,
particularly by regulators, on the issue of
how workers should be classified in the
workplace. I reported recently on how
Uber has become the lightning rod for
activities focused around the definition of
an employee.
Both tax and employment regulators
are taking a new look at which workers
are
independent
contractors
and
which are employees. A judge recently
granted class action status to several
plaintiffs arguing they should be treated
– and reimbursed for expenses – like
employees. The outcome of these
deliberations will have sizeable effects on
many employers. There is the potential for
business increases in employment taxes,
unemployment insurance costs and
legal exposure.
Another challenge that has arisen is in
the area of labor relations. In August, the
National Labor Relations Board (NLRB)
pronounced a new legal standard to be
used to determine if a business is a “joint
employer” of another’s employees.
The core issue revolves around unions and
their interrelation with businesses that
employ their members. The complexity of
the NLRB’s surprise declaration is causing
business owners to scratch their heads
about what the standard means and how
to apply it.
“Is my non-union business a union
business after all?” they ask.
If these businesses want to maintain
good relations with their rank-and-file
employees while avoiding increases in
labor costs, they need to get out ahead
of this issue.
exceedingly low. The need for talent
exceeds the supply. At the same time,
technology has made geography less of a
barrier to finding employment. Attractive
recruits don’t always have to pull up stakes
to hire on with a company. I have a nephew
living in the jungles of Belize who does
web design for a North Carolina tech firm.
With a favorable employment market and
the viable alternative of telecommuting,
the result is that top talent is on the
move – searching out the best and most
flexible employers. Loyalty is earned,
not automatic.
From an employment standpoint, it
doesn’t matter whether the Fed raises
rates or keeps them the same. Either way,
good workers will be hard to find and even
harder to keep. To retain top performers,
it’s clear that pay alone is not the answer.
Companies are looking at job sharing, life
balance flexibility, benefit packaging and
overall workplace culture as incentives to
attract and keep talent.
Employment law is suddenly in flux. The
question is not only whether your business
has been complying with relevant law
but whether it will be in compliance
going forward.
Particularly with key employees, incentive
plans need to provide tangible motivation.
Rather than just receiving stock certificates
whose value is controlled by the owner,
employees want to see actual retirement
accounts. They want real benefits and
easy tools to understand and access
these programs.
How should my business
deal with a mobile workforce?
How will taxes affect
the rest of my company’s year?
An interesting mix of economics and
technology is making the American
workforce far more mobile than ever before.
The Fed isn’t the only regulatory body on the
march. Taxing authorities are busy as well.
First, particularly in the case of key
employees, unemployment levels are
F ORBES A RTI C L E
What Entrepreneurs Should
Be More Worried About Than
The Fed Raising Interest Rates
For example, the IRS may soon announce
a change in how they approach valuation
of family-owned business transfers. What
www.ncpga.org
11
F O RBES A RTI C L E
purports to be only an administrative
change in interpretation will, in reality,
create significantly higher transfer taxes
for some owners of family businesses. In
fact, many advisors have been working
with business clients to complete intrafamily stock transfers before the IRS acts
on its threat, potentially as early as this fall.
Another example is the brewing
Congressional battle over so-called
tax extenders. Congress has gotten in
the habit of withholding legislation on
expensing limits and bonus depreciation
for businesses until after the tax year is
effectively over. It wasn’t until Dec. 14, 2014,
that legislation was passed increasing the
annual expensing limit to $500,000 and the
investment threshold to $2 million.
The trouble is the limits looked backward
to 2014. For this year, the Section 179
limit will return to the $25,000 level (with
a $200,000 investment limit) unless
12
NCPGA News | October
Congress takes action in the next few
months to extend it again.
While federal interest rate policy only
tangentially impacts most businesses,
tax increases can have a tangible and
immediate out-of-pocket cost.
So, as far as the Fed’s direction with
interest rates, I’m with Alfred. What,
me worry? We’re all better off focusing
on issues that more directly affect our
businesses. Whether it’s employment law,
employee relations, taxes or something
else pressing on your business plan.
These are the challenges to address.
Steve Parrish: I use my experience to help save
business owners a headache or two. I have more
than 35 years’ experience as an attorney and
financial planner, and I’ve worked with hundreds
of business owners to solve problems, exit their
businesses or retain their top talent. I work all over
the country with financial advisors and business
owners themselves to help them better prepare
for their financial future. My blog is focused on
financial intelligence for business owners. I'll talk
about current events, experiences I've had with
business owners, and a lot about taxes. Steve is
a National Advanced Solutions Director with the
Principal Financial Group®, Des Moines, IA 50392.
While this communication may be used to promote
or market a transaction or an idea that is discussed
in the publication, it is intended to provide general
information about the subject matter covered and
is provided with the understanding that the author
is not rendering legal, accounting, or tax advice.
It is not a marketed opinion and may not be used
to avoid penalties under the Internal Revenue
Code. You should consult with appropriate
counsel or other advisors on all matters pertaining
to legal, tax, or accounting obligations and
requirements. *JD is an educational degree and
the holder does not provide legal services on
behalf of the companies of the Principal Financial
Group. *Insurance products from the Principal
Financial Group® are issued by Principal National
Life Insurance Co. (except in NY) and Principal Life
Insurance Co., Des Moines, IA. Securities offered
through Princor Financial Services Corp, Member
SIPC (www.SIPC.org), Des Moines, IA 50392
What’s Wrong With This Picture?
// Answers are on page 26
www.ncpga.org
13
Eve n t Rec a p
Tuesday Luncheon sponsored by Principal Financial Group
2016 NCPGA Board of Directors
Karen Briles and Angi Harris
NCPGA News | October
2015 Presidents Award
Winner George Lipford
Steve Barton, Jaime Alberti and Ken McLeod trying out their luck
Roll the bones
Best Attended District Meeting, Joe Phillips District 5
14
2015 Dealer of
The Year, David Parker
Ben Gutkin
with Warm Thoughts
Steve Benjamin, North Carolina
Department of Agriculture
Billy Foust, Steve Ward and Luke Foust
Bob Barnum, J.D. Bain, Jerry Schimmel, Brenda Cole
Chairman Cyndi Kibler and her
son Grant Grimshaw
You have got to be kidding me
NPGA Chairman Charlie Ory
www.ncpga.org
Even t Re c a p
Bob Barnum, Amy Dean and Betty Jo Wade
15
Eve n t Rec a p
16
Cooking Class at the City Kitch
Mark Bindus Taking efficient to the next level - Partnering
with the Heat Pump Seminar.
John Taylor, John Jessup and Steve Barton
J.D. Bain winner of the $1000.00 Cash Drawing
Grandbaby Addison and Grandma Cyndi Kibler
Harold Fletcher presenting Alton Overby with the
Lifetime Membership Award
Diane Thomas and Don Worsley
Dealing with Change seminar
NCPGA News | October
David Briles and Cyndi Kibler
Daren Parker’s advice to Mike Rutherford, go fast and turn left
Ashley Raines
Even t Re c a p
Cornhole winners Tom Krupa and Paul Harris
Lifetime Membership Award
for Clarence Rice presented
by Tim Rice
Mike Williams and his twin
Scholarship Golf Tournament First place Jeff Wade, Roger
Riggs, Greg Narron, Ken McLeod
So 25 is not a good number
Phil Farris and Jeff Ruffner
www.ncpga.org
17
F EATU RE
Proper Use of
Equipment in
Propane Systems
By Richard Fredenburg, North Carolina Department
of Agriculture and Consumer Services
You may remember a couple of
months ago the “What’s Wrong With
This Picture?” feature, which showed
the improper use of an appliance
connector. The tubing, rated for no
more than 25 psi, and probably much
less, was attached directly to a tank
and was “seeing” tank pressure,
possibly 150-plus pounds per square
inch on a hot day.
This article will expound on this idea,
by pointing out other instances and
trends we are seeing where materials
and equipment are being used in ways
that were never intended.
One recent finding was a valve
intended,
according
to
the
manufacturer’s catalog, for use with
specified adapters “…to evacuate
liquid from a tank during an emergency
or container relocation.” We found
them being used as a control valve on
the outlet side of a dispenser meter.
Most valve manufacturers have
valve and adapter combinations for
evacuating liquid from a tank. Looking
at each of their catalogs, you will see
that they describe the use for these
valves only in that context. You will
also find that these valves are listed
by Underwriters Laboratory. UL tests
valves for only the purposes specified
by the manufacturer. Using valves
outside of the stated purpose violates
the listing. This is not permitted if the
use requires a listed valve.
18
NCPGA News | October
Section 6.25.3.1 of the LP-Gas Code
requires that dispensers “…be installed
in accordance with the manufacturer’s
installation instructions.” We interpret
that as meaning that each component
shall be used only as the manufacturer
intended. It also must be installed
according to the instructions. A
valve used other than as intended
may function perfectly well in that
situation. However, it goes against the
requirement in 6.25.3.1.
This leads to another example.
Inspectors
are
seeing
several
instances of breakaway devices on
dispensers that may not function as
designed because of the way they
are installed. Most breakaways need
to have an in-line pull to properly
separate. If you pull at an angle, you
put a bind on the connection and it will
likely not separate as intended. The
breakaway must be able to swivel so
it is in line with the pull from the hose,
no matter what direction it is. See the
photo in this month’s “What’s Wrong
With This Picture?” feature for an
improperly-installed breakaway. This
one will not swivel.
On another piece of equipment, if
you work long enough in this industry,
every driver may someday have a
problem with the failure of the back-
check in a fill valve. One day when he
unscrews the delivery valve from the
fill valve, too much propane is released,
indicating back-check failure. That is
why he is equipped with a fill check
adapter on the end of his dispensing
valve. Rather than being stuck on
that tank, he can leave the fill check
adapter in place and move on to the
next customer.
However, in a case where the backcheck fails, the driver’s job is not yet
done. He must report the failed fill
valve and someone must go to service
that tank. Having a failed internal backcheck is dangerous. Remember that
the adapter is attached to the part
of the filler valve that is designed to
break away should it be overstressed.
Again, follow the manufacturer’s
instruction, “The tank fill valve should
be repaired immediately.” Also, there
is a requirement in section 7.2.2.13
that containers not be filled if the
container assembly does not meet the
requirements for continued service.
Table 5.7.4.1(D) requires that filler
valves have working backflow check
devices. Yes, we have found tanks
where a fill-check adapter had been
left in place. Several times.
I hope we never see two fill-check
adapters on a tank, which would
indicate the driver filled through a
previously-failed filler valve. That
would indicate a serious failure in the
application of training.
So my take-away advice is to read the
instructions from the manufacturers.
The instructions will show the
proper use of the device and proper
installation. A properly-installed device
is likely to be a safe device, which is
the purpose of the LP-Gas Code and
UL listings.
As always, questions on this interpretation are
welcome. You can call me at 919-707-3231.
The question you ask may be the key that helps
to clarify our interpretation and help others
looking at the website to understand the
requirements.
F EATU RE
The LP-Gas Code is a little confusing
when it comes to determining what
requirements certain valves must
meet. Container valves must meet
the requirements specified in UL 125,
Standard for Flow Control Valves for
Anhydrous Ammonia and LP-Gas. This
is important because a container valve
is the first, and maybe the last, line
of defense for controlling releases
from a propane tank. Valves used
in other parts of a piping system
are not required to meet UL 125.
Some manufacturers recognize the
importance of all control valves in LPgas service being reliable and get a
UL listing for nearly all of their valves.
Then they state the service intended
for those valves.
PERC ANNOUNCEMENT
The Propane Education &
Research Council is getting ready
to kick off the new Pull the Plug on
Electric Water Heaters campaign,
and to make it a success we need
your help.
First, you can download our
campaign announcement and
include it in your upcoming
communications to marketers.
Then, encourage your marketers
to download the Pull the Plug On
Electric Water Heaters campaign
bundle — a consumer brochure,
print ad template, video, radio spot,
and a marketer "how-to" flyer —
from the Propane MaRC
(www.propanemarc.com/ncpga).
Finally, use the video and radio
spot with home improvement
expert Danny Lipford to promote
the benefits of propane water
heaters in your area.
Homeowners who are already
propane customers are the perfect
candidates to make the switch
to propane water heating, and
it's a quick way for marketers to
grow residential gallons. These
materials will give your marketers
the tools they need to make the
case for propane. And as an added
incentive, we'll highlight stories
from marketers who used the
materials in a special PERC Update
at the end of the campaign.
Thank you in advance for your help
in kicking off the campaign. If you
or your marketers have any
questions, please feel free to
call the NCPGA office.
www.ncpga.org
19
F EATU RE
History Shows,
Time in the Market Beats Market Timing
By Derek Carawan, AAMS
Sports commentators often predict the big winners at the
start of a season, only to see their forecasts fade away as
their chosen teams lose. Similarly, market timers often
try to predict big wins in the investment markets, only to
be disappointed by the reality of unexpected turns in
performance. While it is true that market timing sometimes
can be beneficial for seasoned investing experts, for those
who do not wish to subject their money to such a potentially
risky strategy, time--not timing--could be the best alternative.
Market Timing Defined
Market timing is a strategy in which the investor tries to
identify the best times to be in the market and when to get
out. Relying heavily on forecasts and market analysis, market
timing is often utilized by investment professionals to attempt
to reap the greatest rewards for their clients.
Proponents of market timing say that successfully forecasting
the ebbs and flows of the market can result in higher returns
than other strategies. Their specific tactics for pursuing
success can range from what some have termed “pure
timers” to “dynamic asset allocators.”
Risky Business?
Although professionals may be able to use market timing
strategies to reap rewards, one of the biggest risks of this
strategy is potentially missing the market’s best-performing
cycles. For example, say an investor believes that the stock
20
NCPGA News | October
market is going to drop and removes investment dollars from
some or all of the stocks in his or her portfolio and replaces
them with more conservative investments.1 While the money
is out of stocks, the market instead enjoys its best-performing
month(s). In this instance, the investor has incorrectly timed
the market and missed those top months.
Though past performance cannot guarantee future results,
missing the top 20 months in the 30-year period ended
December 31, 2014, would have cost you $20,546 in
potential earnings on a $1,000 investment in Standard &
Poor’s Composite Index of 500 Stocks (S&P 500). Similarly,
missing the top 10 performing months in the 30-year period
would have cost a hypothetical investor $15,459 in potential
earnings. Left untouched, the initial $1,000 investment would
have grown to $25,109 over the same period.2
An Alternative Choice: Buy and Hold
If you’re not a professional money manager, you may want to
consider a buy and hold strategy, or to purchase shares and
hold on to them throughout various market cycles. Through a
“buy-and-hold” strategy you take advantage of the potential
for compounding, or the ability of your invested money to
make money. Keep in mind, however, that buy and hold does
not mean you can ignore your investments. Remember to
give your portfolio regular checkups, as your investment
needs will change over time.
Time Is Your Ally
Clearly, time can be a better ally than timing. The best
approach to your portfolio is to arm yourself with all the
necessary information, and then take your questions to
a financial advisor to help with the final decision making.
Above all, remember that both your long- and short-term
investment decisions should be based on your financial
needs and your ability to accept the risks that go along
with each investment. Your financial advisor can help you
determine which investments are right for you.
Derek Carawan is a LPL Financial Advisor and LPL Registered
Principal / Securities offered through LPL Financial/ Member
FINRA/SIPC and may be reached at, www.carawanfp.com,
919-870-8181 or [email protected]
Investing in stocks involves risks, including loss of principal.
1
Source: Wealth Management Systems Inc. Stocks are
represented by Standard & Poor's Composite Index of 500
Stocks, an unmanaged index generally considered representative
of the U.S. stock market. Individuals cannot invest in indexes.
Unmanaged index returns do not reflect fees, expenses, or sales
charges associated with investing. Past performance is not a
guarantee of future results.
2
F EATU RE
Normally a young investor will probably begin investing
for longer-term goals such as marriage, buying a house
and even retirement. At this stage, the majority of his
portfolio will likely be in stocks, as history shows stocks
have offered the best potential for growth over time, even
though they have also experienced the widest short-term
fluctuations.3 As the investor ages and gets closer to each
goal, he or she will want to rebalance portfolio assets as
financial needs warrant.
Past performance is not a guarantee of future results. There
is no assurance that a buy and hold strategy is suitable for all
investors or will yield positive outcomes. The purchase of certain
securities may be required to effect some of the strategies. No
strategy assures success or protects against loss.
3
This article was prepared by Wealth Management Systems Inc.
The opinions voiced in this material are for general information
only and are not intended to provide specific advice or
recommendations for any individual. We suggest that you discuss
your specific situation with a qualified tax or legal advisor. Please
consult me if you have any questions.
Because of the possibility of human or mechanical error by
Wealth Management Systems Inc. or its sources, neither
Wealth Management Systems Inc. nor its sources guarantees
the accuracy, adequacy, completeness or availability of any
information and is not responsible for any errors or omissions or
for the results obtained from the use of such information. In no
event shall Wealth Management Systems Inc. be liable for any
indirect, special or consequential damages in connection with
subscribers’ or others’ use of the content.
www.ncpga.org
21
I N TERVI EW
Member Q&A
Joe Phillips,
Creedmoor Fuel Service, Inc.
NCPGA Treasurer
Where do you call home?
I live in Creedmoor, NC.
What was your first job?
My first job was picking cucumbers
and working in the tobacco fields.
What did you do after High School?
What characteristic do you admire
most in others?
Probably the best advice I ever
received was to treat others how you
want to be treated.
I admire those that are honest, display
hard work and personal responsibility.
How long have you been
involved with the NCPGA?
What skills do you use most
in your career?
I use common sense and hard work.
After High School I went to NC State.
I've been involved for 14-15 years and
actively the last 5-6 years.
How did you get into your
current line of work?
What would you consider
your greatest achievement?
At 16, Bud Taylor at D.K. Taylor Oil Co.
in Fayetteville, NC hired me to cut
grass at service stations. He exposed
me to the LP and Petroleum business
and I wanted to emulate him. I have
been working in it ever since.
My greatest achievement to date
would probably be my daughters
Jessica and Katie.
Do you have any gadgets
that you can’t live without?
What are some things you like
to do in your spare time?
If you could spend 10 minutes with
your hero/idol (alive or deceased),
what would you do?
What is your current position and
what does your average day include?
In my spare time I enjoy golfing,
reading, working in the yard and
hitting the beach.
What sports teams do you follow?
I follow NC State University and
whoever is playing UNC in any sport.
I can't live without my iPhone.
I would sit around the table with my
mom, dad and sister and REALLY
listen to them.
My current position is Owner/Partner,
dispatcher, data entry clerk, truck
driver, and service tech. My average
day includes managing, planning,
answering phone calls, emails and
dealing with customers.
What advice would you
give someone entering the
industry today?
What is something unusual or funny
that no one knows about you?
I would tell them to not think any job
is below you doing it.
I do not have a middle name, just the
initial "J".
What do you find most
challenging about your job?
Where would you like to visit?
What’s the last book
that you enjoyed?
The most challenging thing about my
job is dealing with our employees
and customers.
22
What’s the best advice
that you ever received?
NCPGA News | October
I would love to visit Fiji.
The last book was called Make Me by
Lee Child.
PRESS REL EA SE
North Carolina Propane Marketers to Benefit From
Crestwood’s New Rose Hill Rail Terminal Opening in Early 2016
marketers who serve customers in the
eastern half of North Carolina.
Kansas City, MO (SepT. 15, 2015) –
The Kansas City, Missouri-based office
of Crestwood Midstream has announced
that it will open a new propane rail facility
in Rose Hill, North Carolina in early 2016.
The new Rose Hill facility will provide
propane marketers across North Carolina
and the region with much-needed
reliability. The state-of-the-art operation –
which is strategically located east of the
pipeline – will bring valuable supply to
North Carolina, South Carolina and Virginia
from multiple shale gas origins. A twospot truck rack, a five-spot rail rack and
240,000 gallons of storage will enable
fast loading of up to 40 trucks per day
while eliminating long wait times in the
peak periods. The potential for convenient
rail service seven days a week will bring
marketers greater product reliability.
Propane and NGL marketers who would like
more information on Crestwood’s Rose Hill
Rail Facility should contact Max Johnson,
Southeast Marketing Representative, via
email at [email protected] or
by phone at 816.329.5316. Pricing structures
are available for varied regional uses, from
summer-only plans to winter allocation.
Crestwood will host a special event in
November to introduce North Carolina
marketers to the new facility. Details to
be announced.
About Crestwood Services
The supply and logistics marketing division of
Crestwood Services provides reliable product
flow to hundreds of propane marketers,
refiners and gas processors across the
United States. Crestwood's wholesale
customers benefit from the market
intelligence of its NGL professionals with
years of industry knowledge and experience.
Crestwood's professionals help propane and
NGL marketers assess their needs from a
supply and financial perspective and develop
a comprehensive business strategy to meet
those needs. For more information, visit
www.crestwoodlp.com.
For more information, contact:
Debbie Hagen at 913.642.6363
[email protected]
Andy Ronald, vice president of commercial
development and national accounts for
Crestwood’s Liquids and Crude Business
Unit said, “We recognize the need for
reliable propane and NGL supply across
North Carolina, and look forward to
opening the new Rose Hill Rail Facility
early next year. With its strategic location,
it will mean peace of mind and value for
www.ncpga.org
23
Meet J. C. Burnette
Eastern NC Territory Manager
Owner/president of company: Dale Gardner
Headquarters:
Raleigh, NC
Services:
Propane related Appliances and Equipment
Area of Service Coverage:
Eastern NC
Years in your Industry:
43 Years
Years in your Company:
28 Years
Years in NCPGA:
28 Years
Where You Live:
Beaufort County near Chocowinity, NC
Where You Grew Up:
Greenville, NC
Family:
Janice, married 41 years/Son Justin, 24, Fireman EMT City of Washington
Personal Interests:
Singing in a Southern Gospel Quartet for 18 years, boating and lots of "Beach Time"
Interesting Facts:
Was a music major before beginning career in propane industry.
SU PPL I ER PRO F I L ES
Your title:
8209 Brownleigh Drive
Raleigh, NC 27617
252.945.6775 office
jcburnette@
gardnermarsh.com
gardnermarsh.com
Meet Doug Lawrence
Your title:
District Sales Manager
Owner/president of company: Mr. Scott Groves/Mr. Tom Lentz
Headquarters:
Simpsonville, South Carolina
Services:CUI is a full service distributor offering the best propane and natural gas appliances. Our
brands include; Monessen Hearth, Vermont Casting Hearth and Grills, Empire Comfort
Systems, Vantage Hearth, Sunstar Heaters, ProCom Products, RHPeterson Logs, Ambient,
Skytech, Modine, Rutland and Noritz Tankless Water Heaters. Our outdoor products include;
Manlaw Tools, FireMagic Grills, Broilmaster, Primo Lump Charcoal Grills,American Outdoor
Grills, Challenger Carts, Aussie Grills, Monessen Outdoor Fireplaced, Empire Comfort Systems
Outdoor Fireplaces, St. James Lighting, Vantage Hearth Outdoor, Skytech Firepits, HPC Firepit
Burners and American Fyre Desing Outdoor Fireplaces and Fire Pits. On our equipment side we
carry everything a propane dealer needs to run his business.
Area of Service Coverage:
I cover from Raleigh, NC to Murphy, NC.
Years in your Industry:
I have been a dealer before and now work for a distributor. I would have to say forty years altogether.
Years in your Company:
I have been with CUI Distribution Since June of 2002.
Years in NCPGA:It has a been a long time and can’t remember when I was not in it. I remember going to
conventions at age twelve.
Where You Live:
306 Spyglass Hill Place
Salisbury, NC 28144
864.346.7296
[email protected]
cuiheat.com
I live in Salisbury, NC.
Where You Grew Up:
I grew up in Mt. Airy, NC.
Family:
I am married to Kathy, and we have four children.
Personal Interests:
Playing and singing in our church praise band. Playing golf, fishing
Favorite Sports Teams:
Appalachian State University, Carolina Panthers
Interesting Facts:I have been playing my saxophones since grade school. I used to play in a big band. I do enjoy
leading music some Sundays at church.
Other Info:CUI is customer oriented. We have a tech department and warranty course along with twenty
plus people to answer the telephone. We have a 96% live answer rate during the busy season.
www.ncpga.org
25
Advertisers Index
Apache LP Trucks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Best & Langston . . . . . . . . . . . . . . . . . . . . . . . . . . Back Cover
BLT Tanks LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Coastal Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
What’s Wrong With This Picture?
This breakaway connection does not meet the
installation instructions provided by the manufacturer.
There is no flexible section that allows the device to
align for an in-line pull. Also, the bracket is installed
backwards. It will help hold the breakaway in its present
position. If it had the required flexibility, the bracket as
installed might not properly align the device for a clean
separation. Equipment must be installed according
to manufacturer’s instructions, per section 6.25.3.1.
See Richard Fredenburg’s article on the proper use of
equipment in this magazine. Photo by NCDA&CS.
26
NCPGA News | October
Crestwood . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IFC
CUI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Eastern Outdoor Products Inc. . . . . . . . . . . . . . . . . . . . . . . 26
Enterprise Products Partners L.P. . . . . . . . . . . . . . . . . . . . . . 7
Gardner Marsh Gas Equipment Co. Inc. . . . . . . . . . . . . . IBC
Gas Equipment Co., Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Metsa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Petroleum Tank Corporation . . . . . . . . . . . . . . . . . . . . . . . . . 4
Rutherford . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Tri-State Distributors, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . 21
NCPGA
NEWS
North Carolina
Propane Gas Association
5109 Hollyridge Drive
Raleigh, NC 27612
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