Author

Pat Thornton

Pat Thornton is a 25-year veteran of the propane industry, with 20 years at Propane Resources and five years at Butane-Propane News. He has served on the Propane Education & Research Council (PERC) Safety & Training Advisory Committee and the Missouri PERC board of directors.

 

  • Feature Articles

    The Petrash File: NatGas Task Force Report Released

    (February 14, 2018) – In April 2017, the National Association of Regulatory Utility Commissioners’ (NARUC) then-President Robert Powelson and the panel’s executive committee established a new Presidential Natural Gas Access and Expansion Task Force. The task force was charged with developing best practices and recommendations regarding natural gas service for so-called underserved and unserved areas of the country including, but not limited to, rural communities. The primary responsibility of the Task Force was to prepare an analytical report that: Studies current access, expansion and service extension policies for underserved and unserved areas. Examines the need for access and expansion including case studies and review of the barriers and obstacles to such access. Recommends potential mechanisms to address the benefits and opportunities for access and expansion...

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  • Feature Articles

    Marketers Scramble to Keep Tanks Full As Frigid Temps Blanket U.S.

    For many parts of the U.S., the second half of December 2017 was one of the coldest on record. This was followed by 2018 being welcomed by more frigid weather that held on, with only a few small breaks that allowed marketers just a bit of time to catch up. Although it appeared the fourth quarter of 2017 would replicate the previous two warmer-than-normal winters, as the year wrapped up cold temperatures that blanketed much of the nation prompted the industry to shift into overdrive in a way unseen since the polar vortex of 2014. In describing the situation, John Powell, senior vice president and CCO for Crestwood’s Marketing Supply & Logistics Group, said, “It is very challenging for everyone right now as demand is...

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  • Feature Articles

    NPGA Pushes for DOT Regulatory Rollback

    With a divergent, pro-business administration arriving in Washington, D.C., an executive order soon followed from President Trump calling upon departments and agencies to reconsider regulations that burden the production and transportation of domestic energy, like propane. In response, the National Propane Gas Association (NPGA) submitted a list to the U.S. Department of Transportation (DOT) for it to review and reevaluate. NPGA called upon DOT to suspend and repeal several burdensome regulations, among them the Federal Motor Carrier Safety Administration’s (FMCSA) entry-level driver training requirements. The association also proposed regulation modifications to streamline efficiency, and echoed its proposal for prospective hours-of-service waivers and expansion of the short-haul operation exemption. “In response to the requests, NPGA wanted to submit comments for high-priority items,” said Sarah Reboli, director...

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  • Feature Articles

    OPEC Cuts, World Propane Demand Support Prices

    The heating season is well underway into late January 2018 and continued OPEC and non-OPEC crude oil production cuts, combined with strong demand for propane in the U.S. and overseas, have all eyes focused on wholesale supply issues. While OPEC and non-OPEC countries confirmed their expected plans on November 30 to keep their output curtailment strategy in place through the end of 2018, propane has more of its own fundamentals also supporting it this season. In late November, we saw propane top 100.00 cents/gal. for the first time since November 2014. Crude futures back then were at around $75/bbl. Propane was trading near 47% of crude, a far cry from the 76% in late November 2017. By mid-December 2017 propane had backed off to 68%...

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  • Feature Articles

    Opportunity Expands for Propane Irrigation Systems

    While new government regulations are often an annoyance to the propane industry, some new mandates may actually drive customers to propane and away from energy sources that are more hazardous to the environment. Aside from the recent Volkswagen settlement bringing national attention to the environmental advantages of propane, the fully implemented Environmental Protection Agency (EPA) Tier 4 emission standards for off-road engines are also increasing awareness of its positive aspects. Tier 4 emission standards, which put stringent restrictions on diesel engines that require deep reductions in pollutants and particulate matter, went into full effect in 2015. In addition, California has elevated its standards, and they are more rigid than those of the federal government. These requirements are making propane an easy-to-implement, more cost-effective alternative to...

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  • Feature Articles

    Propane Mowers Cut Steady Market Share

    While December and January are usually busy months in the propane industry, Jeremy Wishart, director of off-road business development at the Propane Education & Research Council (PERC), points out it is also the best time of the year to be talking to lawn and landscape professionals about switching to propane mowers. Decisions will be made between now and April or May, he said. “By the time the mowing season starts again, it is likely too late. ”Wishart has witnessed the evolution of propane lawn mowers from holding virtually no market share six years ago to now capturing 5% for models with 36- to 72-in. decks. While market growth has been steady and incremental, he said he believes it may be heading for a major growth...

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  • Feature Articles

    The Petrash File Update

    Washington, DC (December 30, 2017) — Jeff Petrash, vice president and general counsel of the National Propane Gas Association (NPGA), has many irons in the fire. He has a long list of priorities to focus on for the industry. A short update follows on some of the critical issues he is overseeing. FERC and Pipeline Tariffs Over the past decade, many pipeline rates, which are indexed annually based upon cost of living, have increased at an alarming rate. Petrash was involved in NPGA’s effort to recommend a better methodology for the Federal Energy Regulatory Commission (FERC) to utilize when raising or lowering pipeline rates. FERC responded to the NPGA proposal and changed the methodology it used to determine the indexed rates. “This actually resulted in...

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  • Feature Articles

    Despite Fewer Resources, NPGA Sees Opportunity in 2018

    (December 15, 2017) — With the dearth of degree days over the past few years, it is a challenging time in the propane industry. Marketers are hopeful for some cold weather in the coming months to help make up for recent shortfalls. The National Propane Gas Association (NPGA) and state propane associations are affected as well, especially with the compounding of these challenges by the recent, and hopefully temporary, departure of Suburban Propane and Ferrellgas from membership rosters. When BPN spoke with Rick Roldan, NPGA president and CEO, recently, he observed that the industry is experiencing some significant tailwinds as well. “With the right effort at the right time, we will be able to bring about some benefits that will dramatically impact industry members in...

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  • Feature Articles

    PERC 2018 Budget Approved, Commits to ‘Re-think’ Everything

    The Propane Education & Research Council (PERC), meeting in Tampa, Fla. in November, approved a $41.7-million budget for 2018 that will include safety and training programs, the Partnership with States program, ongoing development of propane-fueled products, and an integrated marketing communications program designed to unify all homeowner and business-to-business outreach under a consistent brand. The assessment rate of $0.005 per gallon of odorized propane, which took effect Oct. 1, is expected to generate revenues of $41 million. The budget includes $30.2 million for program activities. In 2018, the focus of PERC’s homeowner advertising program will move from improving perceptions of propane to promoting adoption of appliances. The media buy will also shift, with most funding going into digital advertising that can be measured for effectiveness....

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  • Feature Articles

    PERC Approves 2018 Budget, Commits to ‘Re-think’ Everything

    The Propane Education & Research Council (PERC), meeting in Tampa, Fla. in November, approved a $41.7-million budget for 2018 that will include safety and training programs, the Partnership with States program, ongoing development of propane-fueled products, and an integrated marketing communications program designed to unify all homeowner and business-to-business outreach under a consistent brand. The assessment rate of $0.005 per gallon of odorized propane, which took effect Oct. 1, is expected to generate revenues of $41 million. The budget includes $30.2 million for program activities. In 2018, the focus of PERC’s homeowner advertising program will move from improving perceptions of propane to promoting adoption of appliances. The media buy will also shift, with most funding going into digital advertising that can be measured for effectiveness....

    Read More →