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February 2016 ND Propane Gas Association Propane vs. Natural Gas The battle of propane vs. natural gas isn’t going away in the United States. Below is an initial sampling of natural gas ANTI-Propane pieces of legislation many states are facing in 2016. While NDPGA won a big legislative victory over the natural gas industry in 2015, the battle is far from over. NDPGA is currently working with marketer members in several ND towns to inform community leaders in rural areas about the need to keep propane as a primary heating source as natural gas companies have opted to hide behind the veil of economic development in attempting to move its government and consumer subsidized expansion plans forward. State Engagement Program NPGA's Executive Committee approved two State Engagement Initiative programs at its January meeting: a second year of support to the Michigan Propane Gas Association to fight a legislative proposal to subsidize natural gas expansion and a new commitment to the Illinois Propane Gas Association to assist in its legislative and regulatory challenges against subsidized natural gas expansion. On January 31, NPGA concluded its program with the Minnesota Propane Association which resulted in the development of a toolkit for state associations and marketers to fight subsidized natural gas expansion. The toolkit includes four customizable pieces - a three-panel brochure, a postcard, a bill stuffer, and an action card. This toolkit is already being used in Wisconsin and Illinois. Over the past few months, NPGA has developed a list of targeted bills to help you monitor trends in other states that could impact propane marketers. The targeted bills are broken down into categories, linked to a legislative report that lists the flagged bills. The categories include: NATURAL GAS EXPANSION PROPANE INDUSTRY ISSUES Overregulation State PERCs Residential issues AUTOGAS CARBON REGULATION EPA’s Clean Power Plan Cap and trade Carbon taxes NPGA Legislave Report by State

Propane vs. Natural Gas 2016. ND Propane Gas Association. Propane vs. Natural Gas . The battle of propane vs. natural gas isn’t going away in the United States. Below is an initial

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February 2016

ND Propane Gas Association

Propane vs. Natural Gas The battle of propane vs. natural gas isn’t going away in the United

States. Below is an initial sampling of natural gas ANTI-Propane pieces of

legislation many states are facing in 2016.

While NDPGA won a big legislative victory over the natural gas industry in

2015, the battle is far from over. NDPGA is currently working with marketer

members in several ND towns to inform community leaders in rural areas about

the need to keep propane as a primary heating source as natural gas companies

have opted to hide behind the veil of economic development in attempting to

move its government and consumer subsidized expansion plans forward.

State Engagement Program NPGA's Executive Committee approved two State Engagement Initiative programs at its January meeting: a second

year of support to the Michigan Propane Gas Association to fight a legislative proposal to subsidize natural gas

expansion and a new commitment to the Illinois Propane Gas Association to assist in its legislative and regulatory

challenges against subsidized natural gas expansion.

On January 31, NPGA concluded its program with the Minnesota Propane Association which resulted in the

development of a toolkit for state associations and marketers to fight subsidized natural gas expansion. The toolkit

includes four customizable pieces - a three-panel brochure, a postcard, a bill stuffer, and an action card. This toolkit

is already being used in Wisconsin and Illinois.

Over the past few months, NPGA has developed a list of targeted

bills to help you monitor trends in other states that could impact

propane marketers. The targeted bills are broken down into

categories, linked to a legislative report that lists the flagged bills.

The categories include:

NATURAL GAS EXPANSION

PROPANE INDUSTRY ISSUES

Overregulation

State PERCs

Residential issues

AUTOGAS

CARBON REGULATION

EPA’s Clean Power Plan

Cap and trade

Carbon taxes

NPGA Legislative Report by State

Page 2

NDPGA

Executive Committee

President

Dave Walth

Gray Oil

Vice-President

Scholarship Coordinator

Dale Beck

Dakota Ag Coop

Secretary/Treasurer

Lyle Stevens

Horizon Resources

State Director

Ken Kraft

NDPGA

Board of Directors

Darin Adolphsen

LPG & NH3 Inc.

Dan Marler

Ferrell North America

Lee Fitterer

Fitterer Oil & Gas

Darrin Johnson

Northdale Oil, Inc.

Jim Renke

Southwest Grain

Steve Ketterling

Farmland Coop

Dan Erbes

FEI Inc

Kevin Schroeder

Northern Fuel Partners

Joe Fouhy

Farmers Union - Beulah

Staff Executive Director

Mike Rud

Office Manager

Mary Nagel

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

Phone:701-223-3370

Propane Exceptional Energy

Valued NDPGA Members:

The winter of 2015-2016 is one most propane marketers would just as soon forget. The warm temperatures and lack of snow have made for a rather slow year of sales. In fact, many marketers across the nation are turning their thoughts towards next winter. U.S. inventories of propane remain high even at this point in the heating season. But they do not on their own justify complacency among U.S. marketers. Here’s why.

Propane inventories in the U.S. are much higher than domestic demand requires, which is a major reason why exports are growing. High production levels will need to continue, because if they don't, propane prices would ultimately rise and deter exports.

High U.S. exports are reshuffling the deck in international trade flows and displacing more traditional propane suppliers from Africa and the Middle East. According to reports, Japan has made a conscious decision to import less from the Middle East because of political turmoil there. And higher U.S. exports have all but eliminated imports into Latin America from Africa. Exports are typically contracted for relatively long terms, many of which will extend beyond 2020. Because of this, there will be demand for continued high propane production that should also keep U.S. inventories high.

Even with high production levels, high U.S. demand during a cold winter next year could draw down inventories faster than anticipated. NPGA will be initiating early meetings with DOE and other policymakers to renew contact and inform them we are closely watching inventories as we approach next winter.

While the winter of 2015 didn’t produce much for propane sales, legislatively, 2015 was very successful for the propane industry. Here are a few of the highpoints:

50 cent per gallon alternative fuel tax credit for vehicles and forklifts was extended retroactively for 2015.

The alternative fuel refueling infrastructure tax credit was also extended retroactively for 2015.

NPGA is also thrilled that the alternative fuel tax credit and refueling infrastructure tax credit were extended for 2016 as well. However, the fuel tax credit will be calculated on an energy content basis also, and the IRS will be issuing guidance on the new tax credit amount in the coming days.

On the regulatory front, NPGA arguments persuaded the Federal Motor Carrier Safety Administration (FMCSA) to withdraw a proposed regulation that would burden motor carriers to ensure all commercial motor vehicles (CMVs) had clearly displayed Federal Motor Vehicle Safety Standards (FMVSS) certification labels.

Mike Rud

Executive Director

February 2016 Page 3

Under the proposal, CMVs without proper FMVSS certification labels would be removed from service.

Debate in the House of Representatives and the Senate on legislation to prevent FMCSA from increasing the minimum levels of financial responsibility for hazardous material motor carriers pressured FMCSA to postpone any action to increase the minimums.

In another dual, legislative-regulatory accomplishment, Congress precluded FMCSA from changing the mandatory 34-hour restart break with a new requirement to include two periods from 1:00 am through 5:00 am during the 34-hour restart break. Congress also prevents FMCSA from pursuing the change unless the agency produces statistically significant research demonstrating the additional requirement would improve driver safety and work schedules.

2016 is a presidential election year, so it’s not likely a lot will be getting done legislatively in Washington, DC. NDPGA will continue to work with NPGA to build awareness of our industry on the Hill, such as plant tours, Propane Days, and in-state meetings with Representatives and Senators. In this way we will be in a better position to raise our issues when the new Congress and new Administration come to Washington in 2017.

Keep the Flame lit!!

Mike Rud

Page 4 Propane Exceptional Energy

Page 5 February 2016

Page 6 Propane Exceptional Energy

Employee Propane Training Schedule 2016

Feb 29 March 1 Basic Principles & Practices Book 1

March 2 & 3 Bobtail Delivery Operations Book 2.2

March 4 DOT Hazardous Material

March 4 Basic & Delivery Refresher Training

Expressway Suites – 4303 17th Ave S - Fargo, ND 1-877-239-4303

April 4 & 5 Basic Principles & Practices Book 1

April 6-7-8 Designing & Installing Exterior Vapor Distribution Systems Book 4.1

Sleep Inn & Suites - 2400 10th Street SW, Minot, ND Phone 701-837-3100

May 2-3-4 Plant Operations Book 3.1 - 3.5

May 5 DOT Hazardous Material

May 5 Propane Cylinder Filling

May 6 Office Personnel

Expressway Suites – 4303 17th Ave S - Fargo, ND 1-877-239-4303

August 1-2-3-4 Appliance Installation Book 4.3

Ramada Bismarck Hotel - 1400 East Interchange Ave – Bismarck, ND 701-258-7000

August 22 & 23

Basic Principles & Practices

August 24 & 02

Bobtail Delivery Operations

August 26 DOT Hazardous Material

August 26 Propane Cylinder Filling

Seven Seas – Mandan, ND

August 29-30-31 September 1

Appliance Service Book 4.4 Ramada Bismarck Hotel – Bismarck

September 12-13-14

Placing Vapor Distribution Systems &

Appliances into Operation Book 4.2

September 15

Basic & Delivery Refresher Training

September 15

Propane Cylinder Filling

Ramada Grand Dakota Lodge

Dickinson

Page 7 February 2016

OSHA Label Requirements: What You Need to Know

Page 8 Propane Exceptional Energy

OSHA's revised label requirements went into effect on December 1, 2015. Distributors must ship containers bearing

labels that are compliant with the new HCS requirements.

NPGA has received several inquiries regarding the company identification component of the labeling

requirement. Specifically, OSHA requires the Name, Address and Telephone Number of the "chemical manufacturer,

importer or other responsible party."

OSHA defines responsible party to be "someone who can provide additional information on the hazardous chemical and

appropriate emergency procedures, if necessary." While a propane marketer can be considered the responsible party, the

Name, Address and Telephone Number of another entity may also be used instead to satisfy the requirement such as an

emergency response company hired by the marketer to provide such information.

NPGA's Director of Regulatory Affairs briefed the Distributors Section on the updated OSHA labeling

requirements. Sarah Reboli answered lingering questions regarding how the new labeling regulations are being

implemented. A major takeaway from this discussion is that labels must have the following six components:

1. Product Name - "Liquefied Petroleum Gas or Propane"

2. Signal Word - "Danger"

3. Hazard Statement - "Extremely Flammable Gas"

4. Precautionary Statement

5. Pictograms

6. Contact Information

Additionally, NPGA developed "5 Things to Know

About the OSHA HCS 2012 Regulation" to

provide further clarification:

1. The Hazard Communication Standard

(HCS) 2012 updates four elements of

OSHA's HCS requirements, including

written hazard communication programs at

the workplace, employee training, safety

data sheets and labels.

2. HCS 2012 does not expand the scope of

containers that must be labeled. If it had an

OSHA label prior to HCS 2012 regulation,

it must have a HCS 2012 label today.

3. HCS 2012 requires more specific

information on labels than previously

required and changes how that information

is displayed.

4. HCS 2012 is an OSHA regulation

applicable to the workplace environment

and is enforceable by OSHA only. It does

not regulate transportation or involve DOT

regulations.

5. The compliance deadline for HCS 2012

labels was Dec. 1, 2015.

While there is likely to be ongoing confusion as

these are regulations take effect, Sarah is available

to explain many of the compliance

requirements. Please contact her at:

[email protected].

Page 9 February 2016

EMC has a wide variety of safety resources that are

offered to both policy holders and non-policy holders

alike. Our loss control team provides a broad array of

technical expertise, industry specific resources, and

practical solutions. A preview of the loss control

resources provided are listed below or at our website at

http://www.emcins.com/LossControl/index.aspx.

Newsletter – Check out our Loss Control Insights

newsletter for general loss control information, or try

one of our newsletters tailored for schools, local

governments, and petroleum marketers. http://

www.emcins.com/losscontrol/insights-d/

newsletters.aspx

Tech Sheets – Get short to-the-point documents that

provide detailed information on industry specific topics

and individual hazards. Great for safety meetings or

annual newsletters.

Loss Prevention Information Manual – Need help

developing a written or formal program? Our collection

of in-depth documents fully outlines a variety of topics

such as hot work, fleet safety, and many more.

EMC’s Loss Control Resources

Loss Control Forms – Download our fillable PDF forms,

which include accident investigation, leak checks, Pre/Post

Inspection forms, and many more.

Planning and Protection – EMC offers an assortment of

tools for planning and protection including employment

practices liability tools, disaster planning tools, and

ergonomics.

Policy Holder’s Advantage – Current Policy holder’s gain

additional access to our online library of which contains

interactive training and safety videos! More specifically,

this library holds 300 training videos, over 50 training

modules, and interactive quizzes. This is in addition to

onsite visits and direct communications with a loss control

representative.

For additional information, contact

[email protected]

Page 10 Propane Exceptional Energy

2015 Sales of Propane Survey

The Sales of Propane survey is

conducted annually. Retail

marketers are eligible to

participate in this survey. A

retail marketer is a person

engaged primarily in the sale of odorized propane

to the ultimate consumer or to retail dispensers.

You will receive, in the mail, a 2015 sales of

propane survey from the American Petroleum

Institute. The results of this survey are used to

calculate the rebates dollars for North Dakota.

These rebates are administered by the Propane

Education & Research Council (PERC). Your

association has been using rebate dollars to

reduce Certified Employee and Training

Program, Hazardous Materials and Refresher

registration fees to $125 per class.

Return your survey promptly to help keep your

earned dollars in the state of North Dakota.

Hi, propane professionals — we've got a handful of questions for you:

1. Have you ever had trouble attracting or retaining quality staff?

2. Could you or your team benefit from proven sales training and techniques?

3. Are you tired of having your sales figures tied to the weather?

If you said yes, take a minute to sign up for PERC's Marketer Momentum newsletter — and start strengthening your business

today.

Recently, we've seen what happens when winter

weather is less than cooperative for propane retailers.

Having well-trained sales staff can give you a leg up

when times are tough.

And you can think of Marketer Momentum, our

quarterly Marketer Technology & Sales Training

newsletter, as a cheat sheet for growing your gallons.

Signing up is a first step toward stronger sales

performance — and understanding how your business

can branch out into new markets.

That sound like something you're interested in? Then sign up to get the Marketer Momentum newsletter today.

Thanks,

Pat Hyland

Director of Industry Programs