22 //16 //

11 //

2016 Southeast Convention and Expo Recap

The Good, the Bad and the Ugly of DVIR's

2016 // MAY

O f f i c i a l P u b l i c a t i O n O f t h e n O r t h c a r O l i n a P r O P a n e g a s a s s O c i a t i O n

NEWSNCPGA

Security & Safety

DISTRICT 3 MEETING – CLEMMONS, NC

5www.ncpga.org

Published for North CarolinaPropane Gas Association 5109 Hollyridge Drive Raleigh, NC 27612 p. 919.787.8485 f. 919.781.7481

DIRECTOR of PUBLISHING Krystie Dovenmuehler

COPY EDITOR Carrie Billig

LAYOUT & DESIGN Jeremy Davis & Aaron Johnson

SALES MANAGER Marc Lucia

To submit editorial or request information — email jjessup@ncpga.org p. 919.787.8485

For information regarding advertising please contact Marc at 800.572.0011 or marc@emconsultinginc.com

Published by E&M Consulting, Inc. 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.

NCPGANEWS

2016 // MAY

FEATURES

DEpARTmEnTS

11 // The Good, the Bad and the Ugly of DVIR's

16 // 2016 Southeast Convention and Expo Recap

22 // Security & Safety

06 // Chairman's Letter

08 // Natural Gas Expansion Should Not Rely Upon Ratepayer Subsidies or Harm Existing Businesses

12 // What's Wrong With This Picture?

13 // Annual N.C. Dealers Golf Day Sign Up

14 // Understanding Health Savings Accounts

19 // Summer Board Meeting Info

20 // The NCPGA Retirement Solution – The Time has Come

24 // Member Interview with Richard Fredenburg

25 // Supplier Profiles

6 NCPGA News | May

It was great seeing so many North

Carolinians in Nashville! I was really

only there for Friday night and Saturday

but I did manage to hit Honky Tonk

Row (Tootsies was a blast), eat at

Monell’s (truly amazing southern family

style breakfast), attend the NPGA State

Leadership Forum (representing NC

with John), walk the expo floor (loved

the layout and crowds), and toured

Nashville on a Trolley Tour (did you

know that in Nashville, Healthcare is

the biggest industry – not music?).

After my whirlwind 24 hours, I ended

up sick and ordering room service on

Saturday night (this old gray mare, she

ain’t what she used to be). Next year, I

will go out a day or two early and slow

my pace a little.

I hope you all are using this spring to

do some employee training – either

in house or through NCPGA. Are you

due for 3–year DOT Hazmat & Security

training? OSHA refresher training?

Bobtail Rollover Prevention? Propane

Personal Safety? Propane Refresher?

CETP? Now is the time to assess what

is needed and conduct training. Don’t

forget that PERC has excellent training

materials for you to use (many at no

cost). Visit propanecouncil.org and click

on the Workforce Training section.

May will be a very busy month for me.

Legislative Day in Raleigh, Propane

Days in DC, CETP training with my

clients, and Scholarship Committee

meeting and selections. I look forward

to sharing my experiences with you all

in next month’s magazine.

Until next month....

Cyndi Kibler

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Greetings Members!

8 NCPGA News | May

John R. Jessup, President/CEODave Donahue, Director of Code Compliance

and EducationBrenda Cole, Office Manager

Jon Carr, Lobbyist, Legal Counsel

5109 Hollyridge Drive • Raleigh, NC 27612Ph. 919-787-8485 • Fax 919-781-7481

Cyndi Kibler . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ChairmanJeff Wade. . . . . . . . . . . . . . . . . . . . . . . . . . Chairman ElectJeff Ruffner . . . . . . . . . . . . . . . . . . . . . . . . . Vice ChairmanBilly Foust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . SecretaryJoe Phillips . . . . . . . . . . . . . . . . . . . . . . . . . . . . . TreasurerDavid Briles . . . . . . . . . . . . . . . . Immediate Past Chairman

DISTRICT DIRECToRS

District 2: Scott Prewitt . . . . . . . . . . . . . Swannanoa, NCDistrict 3: Gary Chambers . . . . . . . . . . . . . . Advance, NCDistrict 4: Ben Lisk . . . . . . . . . . . . . . . . . . .Albemarle, NCDistrict 5: David Boyd . . . . . . . . . . . . . . . . . .Graham, NCDistrict 6: Jay Little . . . . . . . . . . . . . . . . . . . . Clinton, NCDistrict 7: Alex Jernigan . . . . . . . . . . . . . . Smithfield, NCDistrict 8: Dennis (Buddy) Swain . . . . . . Columbia, NCDistrict 9: J.C. Burnette . . . . . . . . . . . . . Chocowinity, NC

CoMMITTEE CHAIRS

Advisory Board . . . . . . . . . . . . . . . . . . . . . . . . David BrilesConvention . . . . . . . . . . . . . . . . . . . . . . . . . . . .Keith BarkerEducation/Safety. . . . . . . . . . . . . . . . . . . . Donald GodfreyFinance . . . . . . . . . . . . . . . . . . . . . . . . . . . . Donnie BullockGovernmental Affairs. . . . . . . . . . . . . . . Ray KazakewichMembership Services . . . . . . . . . . . . . . . . . . Larry MizellNC Young Gassers . . . . . . . . . . . . . . . . . .Stewart ChancePromotions, Public Relations & Publication . . . . . . . . . . . . . .Jaime AlbertiTechnologies/Innovations. . . . . . . . . . Armistead MauckSuppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Ray Billups

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.

NCPGANEWS

North Carolina Propane Gas Association (NCPGA) expects legislation this Session to allow natural gas companies to expand gas lines to certain eligible businesses with the uneconomic cost of doing so paid for by existing rate payers (“rolled-in pricing”).

Under current law, a proposed natural gas customer can pay for the uneconomic costs of expanding a gas line. HB 332 changes the law to allow natural gas utilities to use up to $75 million from increased rates imposed on existing customers to fund the uneconomic costs of providing natural gas to a few special eligible projects.

NCPGA opposes this type of legislation as it negatively impacts existing and future propane service to those areas since the uneconomic costs of expanding off of the main line greatly reduces the uneconomic costs of further expansion along the main line.

Those without natural gas service generally do not have it because the utility cannot financially justify the extension of service lines and the proposed customer is not willing or able to fund the uneconomic costs.Gas mains can cost $1 million per mile or more.

NCPGA believes that the State should not prefer one form of energy over another competing form of energy.

Rolled-in pricing is unfair to current natural gas customers, who are subsidizing new customers, creates unfair competition for propane and other competing energy providers and is unfair to those existing customers who have already paid the uneconomic cost for expansion to serve their businesses under current law.

“Rolled-in” pricing amounts to a “tax” on natural gas service, as customers lack choices of natural gas providers.

Why would any existing natural gas customer want to pay for expansion to a new business, particularly when it is located on the other side of the gas company’s service area? New natural gas lines should be paid for by utilities’ shareholders, or as provided by current law by the customer benefiting from the expansion.

Why should the legislature allow rate payers to directly fund a new business location that hurts other businesses?

NCPGA is represented at the General Assembly by Jon Carr, cell 919 270 2906; jcarr@jordanprice.com

John JessupnCPGA PreSidenT/CeO

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Natural Gas Expansion Should Not Rely Upon Ratepayer Subsidies or Harm Existing Businesses

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THE GOOD:A while back I wrote on the changes The Department of

Transportation (DOT) made in regards to the Driver Vehicle

Inspect Report (DVIR) requirements. Instead of having to fill out,

and maintain a copy of an inspection report on a daily basis, you

now only had to fill one out when defects were noted. This is a

good thing. Less paperwork is always something that industry

can get behind. But every coin has its opposite side.

THE BAD:With less paperwork, when it comes time for an audit, DOT can

do a more detailed inspection. Less DVIR reports also means

the number of violations and the ratio to reaching a “critical

violation” stage has dramatically decreased. There are sampling

guidelines for FMCSA that tell them how many documents of a

certain type they can audit during a DOT audit. For instance, the

DVIR sampling for a motor carrier that employs between 51 and

90 drivers is 13 drivers for 30 days, 390 documents. Prior to the

December 2014 change, the number of DVIRs checked in this

carrier's audit would be 390. The auditor would need to find 39

or more missing in order to cite the carrier for a Critical violation.

That has now changed.

THE UGLy:Under the new procedures, the auditor now looks at the

13 most recent Level 1 or 2 roadside inspections in which a

mechanical defect was cited on a roadside inspection. Then,

they ask the carrier for the 13 DVIRs for those same days. In

my example, let's say that the drivers submitted 11 of these

to the carrier, only failing to submit 2. Under the old sampling

method, this cite would be "Failing to submit 2 of 390 required

DVIRs," a violation rate of only one-half a percent. This would

have been an excellent performance by the drivers and motor

carrier that would not do damage to the safety rating because

it does not meet the Critical rate of 10%. However, under the

new methodology, this cite would be "Failing to submit 2 of 13

required DVIRs," a violation rate of 15%, thus a Critical violation

that can damage the safety rating, and would lead to fines. you

will also need to make sure there is a DVIR for every day the

vehicle is operated after that roadside inspection, before the

defects have been documented as repaired.

With new reporting requirements, the DVIR’s you do maintain

must have all your ducks in a row. Make sure all the I’s dotted

and the t’s crossed. Attention to details is the name of the game.

Be sure to take time and review your records. In recent months,

DOT has taken a particular interest in our Industry. A little bit of

time spent now could save you a lot of headaches in the future.

The Good, the Bad and the UGly of dVIR’s

by david donahue, nCPGA director of Code Compliance and education

What’s Wrong With This Picture?

// Answers are on page 26

What’s Wrong With This Picture?

13www.ncpga.org

NAME: ______________________________________________________________________________________

COMPANy: _____________________________________________ CITy:______________________________

TELEPHONE :_______________________ E-MAIL:________________________________________________

Would like to play? yES ________ NO ________ Handicap ________

Make Check Payable to: NCPGA GOLF TOURNAMENT

Mail Check to: NCPGA GOLF, 5109 Hollyridge Drive — Raleigh, NC 27612

you may also pay by credit card by faxing this form to 919-781-7481.

Credit Card # ____________________________________________ Exp. Date ___________________________

Signature ____________________________________________________________________________________

NORTH CAROLINA PROPANE GAS ASSOCIATION2016 N.C. dEalERSGolF daySuppliers take pleasure in hosting the 31st annual dealers Golf day!

THURSDAY, MAY 26, 2016

The Thirty-First Annual Dealer Golf Day will again be held in Wilson, NC this year. Due to the success and positive responses from past years, we will return to Happy Valley Country Club’s 18-hole layout. The format will continue to be a four-man Super Ball tournament with teams formed based on handicap.

We are asking for a $100 donation from each supplier to cover the cost of the golf, carts, beverages, prizes, and a catered meal afterwards. This will also cover one representative from that company. We are also asking for $100 to cover each additional representative. Also, any items such as tees, balls, towels, etc are welcomed for placement in carts prior to tee time.

Contributing suppliers will be listed in the monthly NCPGA News magazine in addition to a display board at Happy Valley Country Club.

Please try to arrive by 9:15 a.m. on Thursday, May 26th and get your donations in soon. We should have another record turnout.

Greg Narron - Petroleum Tank CorporationP.O. Box 429 - Kenly, NC 27542Phone: 919-284-2418 - Fax: 919-284-6199E-mail: gregn@pettank.com

Dealers who wish to attend this gala event, please contact Greg.

SUpplIERS doNaTIoN FoRm

HAPPY VALLEY COUNTRY CLUB — HWY 264 EAST, WILSON, NC10:00 a.m. UNTIL 5:00 p.m. (Arrive By 9:15 AM)

FORMAT: Super Ball - Shotgun Start FREE TO DEALERS: Golf - Food - Beveragesdinner will be served after tournament. Prizes Awarded!!!

14 NCPGA News | May

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Health savings accounts (HSAs) are tax-preferred savings accounts

set up in conjunction with high-deductible health insurance

policies that are used to fund qualified medical expenses.

Enrollees or their employers make tax-free contributions to an

HSA, then use the funds typically to purchase medical care until

they reach their deductibles. But HSAs are not for everyone and it

helps to fully understand how they work before considering them

as a viable option to help fund your health care costs.

HSA Specifics

You are eligible for an HSA if you meet these four qualifying criteria:

• You are enrolled in a qualified high-deductible health plan (HDHP).

• You are not covered by another disqualifying health plan (whether

insurance or an uninsured health plan).

• You are not enrolled in Medicare.

• You are not a dependent of another person for tax purposes.

HSAs are generally available through insurance companies

that offer HDHPs. Many employer-sponsored health plans

also offer HSA options. Although most major insurance

companies and large employers now offer an HSA option

under their health plan, it's important to remember that most

health insurance policies are not considered HSA-qualified

HDHPs. In fact, the IRS has set limits as to what qualifies as

an HDHP. For 2016, a plan can only be considered an HDHP

if its deductible is at least $1,300 ($2,600 family). So make

sure to check with your insurance company or employer to

see if an HSA plan option might apply.

The maximum contribution to an HSA for 2016 is $3,350 if you

have single coverage, or $6,750 if you have family coverage.

If you are over age 55, then you can contribute an additional

$1,000 in 2016 regardless of whether you have single or

family coverage. Such contributions are made on a before-

tax basis, meaning they reduce your taxable income. Note

that unlike IRAs and certain other tax-deferred investment

vehicles, no income limits apply to HSAs.

HSAs offer investment options that differ from plan to

plan, depending upon the provider. What's more, HSA

account balances carry over from year to year, unlike their

predecessors, medical savings accounts (MSAs), which

contained a "use it or lose it" feature that severely limited

their usefulness for most people. Earnings on HSAs are not

subject to income taxes.

by derek Carawan, AAmS

Understanding Health Savings Accounts

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Any ordinary medical, dental or health care expense

that would qualify as a tax-deductible item under

IRS rules can be covered by a HSA. A doctor's

bill, dental procedures and most prescriptions are

examples of covered items. See IRS Publication 502

(https://www.irs.gov/publications/p502/) for a definitive

guide of what costs are covered. If funds are withdrawn

for any other purpose than qualifying health care expenses

before age 65, you will be required to pay taxes on amounts

withdrawn plus a 20% additional federal tax. Once you reach

age 65, you can use HSA money to pay for non-medical

expenses, but you will still owe taxes on the withdrawal.

In summary, HSAs can offer significant benefits for some

situations, but may not fit your specific needs.

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 derek.carawan@lpl.com.

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.

Contribution and Out-of-Pocket Limits for Health Savings Accounts and High-Deductible Health Plans1

For 2016 For 2015 Change

HSA contribution limit (employer + employee)

Individual: $3,350 Family: $6,750

Individual: $3,350 Family: $6,650

Individual: no change Family: +$100

HSA catch-up contributions (age 55 or older)* $1,000 $1,000 No change**

HDHP minimum deductiblesIndividual: $1,300

Family: $2,600Individual: $1,300

Family: $2,600Individual: no change

Family: no change

HDHP maximum out-of-pocket amounts (deductibles, co-payments and other amounts, but not premiums)

Individual: $6,550 Family: $13,100

Individual: $6,450 Family: $12,900

Individual: +$100 Family: +$200

* Catch-up contributions can be made any time during the year in which the HSA participant turns 55. ** Unlike other limits, the HSA catch-up contribution amount is not indexed; any increase would require statutory change.

1 Source: Obamacarefacts.com, "Health Savings Account (HSA)."

16 NCPGA News | May

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Ashley and Angela Raines Clyde Hall and David Boyd

L to R: Kathy and Jeff Ruffner, Vicki and Darrin Shaffer

Courtney Gendron and Cyndi Kibler

Jerry Raper and Ed Congleton

Jeff and Betty Jo Wade, John Jessup

Tom Janeke, Procter and Amy Dean

2016 SouTHEAST CoNvENTIoN AND ExPo – NASHvILLE, TN

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Don Worsley and Joe Phillips On Hold:32 Booth – Ray, Chase, Mike, Lou, and Chad

Proctor and Daren enjoy a massage

Don Worsley on stage

John & Kyle Taylor, Angi Harris, Bob Barnum, Paul Harris

Scott Prewitt and Doug Lawrence

18 NCPGA News | May

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District 2 Meeting, Asheville, Scott Prewitt Director District 3 Meeting, Clemmons, NC, Gary Chambers District Director

EXPAND Sales Through Customer Service, Winston-Salem NC, April 21

Visiting Our Members, Blossman Gas, Asheville, NC

EXPAND Sales Through Customer Service MTST Asheville, NC April 20

Tripp Williamson, son of Burl and Connie Williamson of B.J. Williamson, Inc. and his wife, Lizzie, would like to introduce their son, Raleigh James Williamson. Raleigh was born March 31st at Rex Hospital and weighed 6 lbs. 4 oz.

Congratulations Williamson Family!

BaBy Boy!BaBy Boy!

19www.ncpga.org

A block of deluxe rooms has been reserved at the beautiful Williamsburg Lodge from Friday, June 17 through Tuesday, June 21. The reservation line is open! The special group rate is $209/night. The deadline to book your room is May 16.

you may make reservations by calling 800-261-9530. The special booking code is 36360.

Look for Registration Forms Soon!This meeting has something for everyone. Bring the entire family.

Bush Gardens and Water Country are close by or you may choose to just enjoy the lodge's swimming pool or spa. The historic streets of Williamsburg, museums and Merchant's Square are all within walking distance.

SUMMER BOARD MEETINGWilliamsburg Lodge — June 19-21, 2016

S U M M e r B o A r d M e e T I N G S c h e d U L e

SUNdAy, JUNe 19

Meet and Greet in Hotel's Sweet Tea and Barley followed by dinner on

your own.

MoNdAy, JUNe 20

MORNINGGolf

Non-Golfer Event Includes a walking tour of Historic downtown

Williamsburg and lunch at King's Arms Tavern.

Merchant Square has over 40 unique stores and restaurants, all surrounded

by the picturesque beauty of 18th-century-

inspired architecture and located adjacent to the

Revolutionary City.

Everyone will enjoy this, kids included.

MoNdAy, JUNe 20

EvENINGAdult Buffet Dinner

Youth Dinner and Entertainment

TUeSdAy, JUNe 21

Continental BreakfastSeminar

General Membership Business Meeting

Scholarship Recipients Recognition

20 NCPGA News | May

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by Gary Strange,ClU,ChFC,President and CeO, Capital east Strategies, llP

So you have a retirement plan. 401k, SIMPLE IRA, SEP whatever it is, you’ve gone to the trouble and expense to install it and maintain it for your valued employees. yes, it’s a great retention tool and people certainly will pick one employer over another because of the existence of a retirement plan, do you really understand your role? Do you have any idea how much liability you really have when you sign your name to that 5500? How much experience do you have selecting funds? Do you have an investment policy statement? When is the last time you received a detailed report on why a fund was even in the plan from your current advisors? Have you taken your plan to the marketplace in the last 36 months?

These are all relevant and good questions, to be sure, but they are only the tip of the iceberg. In the last year the DOL has audited plans as small as $300,000 and levied fines of more than $1.7B for everything from a late contribution to not having an investment policy statement and anything else they could find. Once they start, it’s no different than an IRS audit because they will camp out at your place of business for as long as it takes to satisfy their curiosity. The average length of time for a DOL on site audit is 42 days! Just in case you haven’t noticed, the federal government is running the largest deficit we’ve ever had in the history of the country. It’s north of $19 trillion dollars right now and counting at an ever increasing rate. The interest alone is more than the entire GDP of many foreign countries. They are looking for money under any rock they can find it and unfortunately the way most retirement plans are run creates a target rich environment for the DOL. In the research we routinely do for our clients, we use several resources that

are either publicly available or subscription. The level of detail we can access about a 401k is staggering compared to what it was just a few years ago. We can see the actual return of the plan for the last 10 years compared to the S&P 500 and tell you almost certainly if you have a DOL target painted on your plan. All of it is public since the filings are corporate. you cannot see an individual’s account but still, when you can actually read the audit of a plan that requires one, the amount of information readily available is amazing. Some of these reporting agencies have ratings systems that rate a plan from Very Good to Poor. What is most surprising is how many plans from small and large companies alike that have “poor” ratings and multiple “red flags” that are issues that could trigger a DOL or IRS audit.

The Pension Protection Act that passed in 2006 was further codified in 2009 and 2010 to require disclosure to the plan sponsors and participants what they were actually paying for their plan. Unfortunately, many providers found ways around full disclosure and many times we find that the compensation being paid to the advisors is so embedded in the plan that the only way to find out the real number is the ask the Third Party Administrator. We find on average that the cost of a plan when you take the time to evaluate the fee disclosure and drill down into the true cost of funds and advisor compensation to be more than 2% in many instances, especially when the options include

“A” shares of mutual funds. Many plan have “group annuities” that look like mutual funds but have another layer of cost that most people are not aware exists. Imagine having to get a better than a 2.5% to 3% return to break even. Many of you reading this are already there and don’t know it.

The NCPGA Retirement Solution – THE TIME HAS COME

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Ok, now that your eyes are glazed over let’s answer some more of those questions from the first paragraph. If you aren’t having your plan benchmarked every three years or sooner, the DOL ain’t gonna be happy. If you don’t have an investment policy statement, they will be even less happy. If you don’t understand that the person signing the 5500 that is more than likely you, is liable for everything that could possibly go wrong in the plan including the fund selection, then wherever you bought it from has not been completely honest. Many providers offer limited 3(21) or 3(38) services (more later). Unless that company is a named fiduciary for those services by contract, then that promise is as empty as a propane tank in October the first time we have a frost warning.

The NCPGA Retirement Solution answers all of those questions and offloads all the liability and responsibility that is legally possible for much less cost than you will ever find in the retail market. Without going down all the rabbit holes, there are 3 primary areas of exposure for a plan sponsor that need to be covered. Two are directly about the DOL and one is the fiduciary responsibility for the selection of the fund platform. They are called sections 3(16), 3(21) and 3(38). I know you wanted to

know that so there you go. Basically, those are the sections of code that get people in the most trouble with the DOL and the IRS. In light of the recent release of DOL Conflict of Interest Rule that came out on April 7th, it has become more important than ever to have a named fiduciary instead of taking that duty on yourself.

I would encourage you to investigate the NCPGA Retirement Solution by either contacting our office, the NCPGA office or linking to the microsite from the NCPGA website. TAG Resources is returning 5 basis points as a marketing fee to the association from the plan. This means that for every $10M of assets in the plan, the association will receive $5,000 per year for as long as the plan exists. If you can slash expenses in your existing plan, reduce your fiduciary liability, greatly reduce the time it takes to run the plan and help generate non-dues recurring revenue to

the association, then what are you waiting for?

Gary Strange is a Registered Investment Advisor and Investment Advisor Representative affiliated with Cambridge Investment Research, Inc. Gary is President and CEO of Capital East Strategies, LLP. Gary and Capital East is a Strategic Partner of the NCPGA. Capital East Strategies offers the NCPGA Retirement Solution and business planning services for members and affiliate members of the NCPGA.

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I often get good suggestions from our

inspectors regarding topics for these

articles. I value their insight and input.

This one comes from our longest-tenured

inspector, Wayne Manning. Wayne

has a good feel for the industry, having

observed a lot during his years of service

and through conversations he has had

with those in the business.

Wayne says he gets a lot of questions

regarding what is meant by the

attendance requirement in section

14.2.1.6, “Facilities [bulk and industrial

plants] that are not attended shall have

the internal valves and emergency shutoff

valves of the container closed…” We

can get a significant clarification on this

from Annex section A.14.2.1.6, where it

says, in part, “The facility is considered

to be attended when an employee of the

company or operator is on site and able

to activate the emergency shutdown

system in the event of an emergency.”

A change coming to the code in 2017

is that the employee must be qualified.

This means that to meet the requirement,

the employee must be trained enough

to know when there is an emergency

situation, where and how to activate

the remote closure device, and must be

physically and mentally able and willing

to go to the remote closure device and

activate it. Additionally, the training must

be documented. If no qualified employee

is present, then the gates must be closed

and locked and the safety valves closed.

Wayne says he also gets questions

about facilities where a second gate

for emergency egress is required.

This requirement is found in section

6.19.4.2(A). The questions relate to

whether the second gate must be locked

or unlocked.

The intent for the second gate is for an

alternate way to escape the fenced

enclosure should something happen near

the main gate that makes it dangerous

or impossible to exit there safely. That

is why a change coming in 2017 to this

section requires the gates to be at least

25 feet apart or as remotely located as is

practical. Many bulk plant locations have

the transport or bobtail loading/unloading

stations near the main gate. If something

happens during the transfer, you need

another way to get out without having

to climb over the fence or to find a key

to open the second gate. That’s why we

expect the second gate to be unlocked

while transfer operations or other

activities are happening and while people

are inside the fence. We want everyone,

including our inspectors, to be able to get

out safely should something bad happen.

Remember, a gate does not function as

an exit when it is locked!

Wayne is also asked about closing the

internal valve or emergency shut-off valve

on dispensers when they are unattended.

He reasoned that this is appropriate

Security & Safetyby richard Fredenburg, north Carolina department of Agriculture and Consumer Services

"You are encouraged to close safety valves when

a dispenser is unattended, but we

can’t require it."

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since 14.2.1.6 requires it for bulk plants,

but he did not find it in the code. I do not

disagree with his logic, but have to say

that the code does not require it.

Part of the reason for closing the internal

valves and ESVs for bulk plants is to

assure these valves will close when

needed. Regular operation of these valves

is exercise for them and helps assure that

the whole system is operating properly.

That reasoning carries over to dispensers.

Closing the safety valves when not

attended exercises those valves and

provides some protection from releasing

or losing gas. you are encouraged to

close safety valves when a dispenser is

unattended, but we can’t require it.

We also discussed what “unattended”

could mean at a dispenser. Many

dispensers are situated so that they are

out of sight when the employees are

inside the store. Often they are located

at a business that expects, or desires,

visitors, which is not the case with a

bulk plant. Someone could be causing

mischief or stealing product without

anyone’s knowledge at some of these

sites. This would be a violation of section

6.19.4.1, limiting unauthorized access.

you may want to review your dispenser

location, video monitoring, or whether

you should lock the gate or cabinet door

when you go back into the store.

The last item Wayne mentioned was

about the maintenance checklists he

sees. There is some indication that

these may not always be completed by

a person who is actually checking the

equipment, but rather by an office person

who did not do any testing. The intent

for completing these checklists is not

so we can see them when we visit, it is

for your safety. you check these items to

make sure they work properly when they

are turned on or when they really need

to close or be turned off when there is a

problem. That is for your safety and the

safety of those working on or traveling

near the site. Please don’t jeopardize

your safety by not actually checking or

testing the equipment.

We try to incorporate real-world situations

into the reasoning for requirements and

for how inspections should be performed.

I value the experience of our inspectors.

Their observations of employee actions

and attitudes and of situations provide

feedback we can get no other way. They

are, in a way, watching your back.

24 NCPGA News | May

Where do you call home? I live in Garner, North Carolina. Before that it was Knoxville, Tennessee and Dayton, Ohio, and I grew up in northern Virginia.

What was your first job? Babysitting at age 12, then mowing the lawn at church. My first full-time, regular job was when I joined the Air Force.

What is your job now?LP-Gas Engineer in the standards division of the Department of Agriculture and Consumer Services. I manage the propane inspection program.

What might an average day include?I’m always looking for extension requests. I review inspections. I take calls from any and every one. Various committee work, and a lunchtime walk. What do you like most about your job? It’s different every day. I get different calls from consumers, inspectors, and my counterparts across the country. I have a great network.

What do you find most challenging about your job?Making sure people understand the intent of what I say or write.

What are some things you do in your spare time? I play tuba with a brass band. I like to go to national parks. And then there’s always my honey-do list.

Do you have a gadget you can’t live without? A computer is the modern gateway to getting things done, both work and personal.

What is the best advice you ever received?Trust but verify.

What advice would you give someone entering the industry today?In my position, that’s not really my call, but if pressed, I would suggest they develop a culture of safety for their employees.

What is your greatest achievement to date?My family, and also being repeatedly asked to provide magazine articles about propane safety.

What was the last book or movie you enjoyed? I’m trying to wade through The Wilderness Warrior by Douglas Brinkley. It’s a tome on the environmental biography of Theodore

Roosevelt. I’ve been listening to Clay Jenkinson’s The Thomas Jefferson Hour on the radio, and he more or less takes on the character of Jefferson on his program, but he also does Chautauqua characters like Roosevelt and Meriwether Lewis, and that’s how I came across this book and thought it would combine a couple of interesting things.

If you could spend 10 minutes with your hero (alive or dead), what would you do?Go for a horseback ride or walk with Thomas Jefferson. I went to the University of Virginia, which he founded, so he’s been a figure I’ve looked up to for a long time.

What is something unusual or funny about you?I won the “I Dare you” award in high school. It was established by William Danforth in the ’40s to recognize youth that have demonstrated unusual integrity, balanced personal development, and a willingness to assume responsibility, and I have no idea why I got it (laughs).

mEmBER Q&a RIChaRd FREdENBURG, LP-Gas Engineer, NC Dept. of Agriculture and Consumer Services

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Your Title: Territory ManagerOwner/President: Dale GardnerHeadquarters: Raleigh, NCServices: We are a Valued Added Distributor of a broad line of equipment and appliances

that are used and sold by today’s propane retailers, hearth and patio shops and the building trades. We offer a complete line of: regulators, brass fittings, installation equipment, containers, gas piping, liquid transfer equipment, vent pipe, gas grills, outdoor cookers, tankless water heaters, space heaters, gas logs, fireplaces and commercial heating equipment

Area you cover: Western NCYears in your industry: 28Years in your company: 18Years in NCPGA: 18+ yearsWhere you live now: Summerfield, NCWhere you grew up: OhioFamily: Married to Enid Barnum, two married adult children

Chelsea Shover and Kimber PetercuskiePersonal interests: I enjoy spending time with my family and being active in my church.Favorite sports teams: UNC Tarheels, OSU Buckeyes, Cleveland BrownsOther info: We offer sales and technical training on all the products that we sell. We will

tailor a training program to fit our individual customer’s needs.

meet Bob Barnum

8209 Brownleigh driveraleigh, Nc 27617336.202.3743 office

bbarnum@gardnermarsh.comwww.gardnermarsh.com

meet don Rich

3 Grayson LanePinehurst, Nc 28374910.639.4470 mobilebrich123@nc.rr.com

harper-industries.com

Your title: Sales Representative

Headquarters: Jesup, GA

Services: Wholesale LP Supply and Distribution

Area of Service Coverage: Southeastern US

Years in your industry: 33 years

Years in your company: 5 years

Years in NCPGA: 31 Years

Where you live: Pinehurst, NC

Family: Wife: Bonnie, Children: Heather & Christian, Grandchild: Penn

Favorite sports teams: Oklahoma Sooners

Other Info: Since 1973, Harper Industries has delivered competitive pricing and exceptional service to our customers. We, like many of you, are a family-owned, small business, and we take pride in operating that way. All decisions are made quickly and within our office. We care about our customers and pride ourselves in establishing strong relationships and providing flexibility to fit each customer’s needs. I have been an active member of NPGA for many years and truly love my job and the propane industry.

26 NCPGA News | May

What’s Wrong With This Picture?What’s Wrong With This Picture?This photo shows an emergency breakaway installed beside the wall of a dispenser cabinet. A pull to the right would cause the hose to kink on the door frame and probably prevent separation of the breakaway device. These devices must be installed so that they may pivot and allow a clean breakaway when pulled to the side if a vehicle can move that way. A roller at the frame may allow device separation, if allowed by the manufacturer’s installation instructions.

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NCPGANEWS

NCPGANEWS

North CarolinaPropane Gas Association 5109 Hollyridge DriveRaleigh, NC 27612

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