Propane Education & Research Council Responds to Industry's Call for Supply and Storage Study

Funds Major Research and Consumer Education Projects; Announces First Recipient of Milford Therrell State Grant of the Year Award


June 23, 2000

Washington, D.C.- The Propane Education & Research Council (Council) took action on several initiatives at its second meeting of the year (June 20-21) in Washington, D.C. One of several projects funded by the Council is in response to the industry's call for an independent study of the propane industry's supply, storage and infrastructure capabilities and needs. Many members of the industry have expressed concerns about the propane industry's storage and supply capabilities following numerous logistical problems they experienced during the past winter.

The request to fund a study came from the National Propane Gas Association's (NPGA) Board of Directors following its meeting earlier this month. NPGA and the Council have asked Purvin & Gertz, Inc., an international energy consulting firm, to conduct the study, which will be completed by September 1.

'With the rapid changes brought on by globalization and deregulation, the propane industry needs the most current and concise analysis of our markets if we are to continue providing our customers with the exceptional service they deserve year-round,' said Council Chairman Daryl McClendon, president, Platinum Propane, Hinsdale, Illinois.

In other action at this week's meeting, the Council approved funding for several research, safety and consumer education projects, including the following:


LP-Gas for Weed and Nematode Control in Agriculture- Texas Railroad Commission, Alternative Fuels Research and Education Division ($316,683) (docket #10267)

Research & Development:

Prototype Development of Propane Fuel Supply Equipment for Microturbine Generators- Gas Plants, Inc. ($278,000) (docket #10263)
Propane Fuel Quality and Specifications: Evaluation and preparation for an industry-wide program ($140,000) (docket # 10292)
Risk Assessment of Federal Hours of Service Regulations Reforms- National Propane Gas Association ($118,082) (docket #10270)
International Propane Technology Seminar- Propane Education & Research Council ($55,000) (docket #10291)
Removal of Propylene from LPG- Gas Processors Association ($10,000) (docket #10224)
Over-the-Road Motor Fuels:

  • ProCon: Propane Conversion Promotion Consortium- Mutual Liquid Gas & Equipment Company, Inc. ($150,000) (docket #10269)


Consumer Education:

Consumer Education Program/June-December 2000- Propane Education & Research Council ($454,500) (docket #10281)
Consumer Education Advisory Committee- Propane Education & Research Council ($53,250) (docket #10282)
Energizing Education- National Energy Education Development Project ($25,000) (docket #10264)

Safety and Training:

Safety and Training Educational Roadmap- Propane Education & Research Council (not more than $50,000) (docket #10293)

Industry Programs:

1999 NGL Annual Sales Survey- American Petroleum Institute ($51,800) (docket #10288)
Propane Supply, Storage and Logistics Study- Propane Education & Research Council ($48,000) (docket #10290)
Propane Industry Leadership Summit III- Propane Education & Research Council ($11,400) (docket #10286)
Grants funded at the March and June Council meetings represent 73 percent of the Council's research and development budget allocation, 80 percent for consumer education, 62 percent for safety and training, 88 percent for industry programs, 41 percent for over-the-road motor fuels and 35 percent of the agriculture budget, according to Council Treasurer Walter Cressman, president, Cress Gas Co., Richlandtown, Pennsylvania.


State Rebates: Ten state PERCs and foundations were granted nearly $270,000 to fund a variety of projects. Twenty percent of Council funds are earmarked for states to develop and implement programs and projects at the state level.

Kentucky Propane Education & Research Council Receives First Milford Therrell State Grant of the Year Award: The Council voted in favor of awarding the Kentucky PERC the first Milford Therrell State Grant of the Year Award for 1999, which recognizes the best state rebate program. KYPERC used its rebate funds to promote and facilitate the use of the Propane Emergencies (PE) training program in ways that have garnered statewide publicity and good will for the industry, reduced costs for marketers and resulted in extensive use of the PE program by fire officials throughout the state. The award was established last year in honor of the Council's first chairman, Milford Therrell. KYPERC will receive $25,000 from the Council for winning this award, which is over and above the funds it receives through the state rebate program.

Terms Expire: The terms of three Council members, including two founding members, expire on July 1. The work of Vice Chairman (Producers) Bob Jackson, Carrera Gas Co., Tulsa, Oklahoma; Immediate Vice Chairman (Marketers) Glenn Miller, Miller's Bottled Gas, Bowling Green, Kentucky; and Joe Bourne, Sid Richardson Gasoline Co., Houston, Texas; was recognized by the Council. 'We've come a long way in the last three years,' said Vice Chairman Bob Jackson. 'The progress we've made is truly amazing. I am grateful for the acquaintances and friends I have made while serving on the Council.'

Financials: Council Treasurer Walter Cressman reported that the Council's 1999 finances have been audited and approved with an unqualified opinion by the auditors.

Next Meeting:
July 16-17- Leadership Summit- Chicago, Illinois
July 18- Budget Meeting and Election of Officers- Chicago, Illinois

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