NCPGA NEWS 11 // 13 // 16 // Time to Think of Training Classes. NCPGA Serviceman School. Spring Board Meeting New Bern.

Official Publication of the North Carolina propane gas association 2016 // April NCPGA NEWS 11 // 13 // 16 // Time to Think of Training Classes NCPGA Serviceman School Spring Board Meeting New Bern

2016 // April NCPGA FEATURES 11 // Time to Think of Training Classes 13 // NCPGA 2016 Serviceman School 16 // Spring Board Meeting New Bern DepARTments 06 // Chairman's Letter 08 // Visiting Our NC Members 12 // What's Wrong With This Picture? NEWS 14 // Make a Plan for Withdrawing Retirement Assets 18 // Path Act Makes Many Tax Breaks Permanent 21 // PERC Marketer Technology and Sales Training 24 // Installation Must Meet Requirements 26 // 2016 Calendar of Events 29 // Supplier Profiles 30 // Heating Degree Days 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 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. www.ncpga.org 5

CHAIRMAN S LETTER Greetings Members! At the time of this writing I have just returned from our quarterly meeting in New Bern. The venue was great and us non-golfers had a lot of fun on the Trolley Tour on Monday. I learned so much about the Tryon Palace and New Bern s history. Walking through the John Wright Stanly House with our wonderful tour guide Alma, took me back in time to the late 1700 s. The house is a Georgian design that is regarded as one of the region s finest surviving examples of the period. The quality of the construction and craftsmanship have not only survived over 230 years but also survived the moving of the house in 1966 to its current location. Our quarterly meeting was very well attended, although I would have liked to see many more dealers there. We had the pleasure to be a witness to the awarding of Lifetime Achievement awards to Mr. Ralph Morris and Mr. Bob Mattocks. Both of these gentlemen were past NCPGA presidents and between the two of them, have over 120 years of propane experience. I sat in awe as both men s lifetime accomplishments were described. It is because of the service of men like these that our association is as great as it is today. Donald Godfrey, our Safety & Education Committee chair, talked about the need for training in all of our companies. The NCPGA has quite an extensive list of training classes scheduled for this spring and summer (see list printed in this month s magazine). PERC also has a lot of training programs available on their website (propanecouncil.org) under Workforce Training. As things slow down a bit, take the time to plan and conduct training with your employees. Involve everyone in planning and you will get some great topics. May will bring two legislative opportunities for you to participate in. NCPGA s Legislative Day will be held on May 4th on the Halifax lawn in downtown Raleigh. We will be grilling hotdogs and going to our legislators offices to personally invite them, and to help put a face to our industry. It s fun and rewarding. Also scheduled is NPGA s Propane Days in Washington DC on May 23 25. We would love to have a huge group representing our state this year. I attended for the first time last year and learned so much about our political process. National and John Jessup do a great job informing us on the main talking points and giving us literature to share with our senators and representatives. Please call John Jessup for more details and I hope many of you can join us this year. I am making plans to attend all of the district meetings this spring and summer. I hope to see some old friends and make some new ones as I travel this great state of ours! Until next month... Cyndi Kibler NCPGA CHairman 6 NCPGA News April

PRESIDENT/CEO Each year Dave Donahue and I travel all over NC for 8 district meetings per year 3 Board meetings, and this fall we will be in Cherokee for the annual convention. Just look at the 40 plus meeting and training opportunities listed on page 26 of this magazine and you will see we are quite aggressive in our NCPGA activities. One of my favorite things to do when we travel is to drop in at dealer locations and get the nickel tour of your facilities. I like to meet the CSR s, driver, and service technicians, see the showrooms and talk about the challenges and opportunities that are unique to each part of our state. Visiting our members gives me insight when I go to National NPGA and PERC meetings. I always get asked by National what I think NC dealers need or how can we communicate with them better. So instead of just guessing what your needs are I feel I have my finger on the pulse of the propane dealers in NC by making these visits. NPGA is also looking for NC Dealers willing to host tours of their facilities for NC congressional members. They have found this is the best way for legislators to truly understand our business and the challenges we face. If you are interested in hosting a tour of your facility please let me know so I can coordinate the meeting. When Brenda and I left New Bern after the March meeting the Williams Energy Group Corporate office was less than 500 yards from the hotel. Donnie Bullock and John Robert Mattocks gave us the nickel tour. We met many of their staff and it was good to put a face with the voices we hear so often on the phone. So don t be surprised if you see a propane powered NCPGA Ford expedition with a this vehicle runs on Propane decal in the rear window drive up at your place. We look forward to meeting you and your people at your dojo. John Jessup NCPGA PRESIDENT/CEO Visiting Our NC Members NCPGA NEWS John R. Jessup, President/CEO Dave Donahue, Director of Code Compliance and Education Brenda Cole, Office Manager Jon Carr, Lobbyist, Legal Counsel 5109 Hollyridge Drive Raleigh, NC 27612 Ph. 919-787-8485 Fax 919-781-7481 Cyndi Kibler...Chairman Jeff Wade... Chairman Elect Jeff Ruffner...Vice Chairman Billy Foust...Secretary Joe Phillips...Treasurer David Briles...Immediate Past Chairman District Directors District 2: Scott Prewitt... Swannanoa, NC District 3: Gary Chambers...Advance, NC District 4: Ben Lisk...Albemarle, NC District 5: David Boyd...Graham, NC District 6: Open District 7: Alex Jernigan...Smithfield, NC District 8: Dennis (Buddy) Swain... Columbia, NC District 9: J.C. Burnette............. Chocowinity, NC Committee Chairs Advisory Board........................ David Briles Convention...Keith Barker Education/Safety...Donald Godfrey Finance... Donnie Bullock Governmental Affairs... Ray Kazakewich Membership Services.................. Larry Mizell NC Young Gassers...Stewart Chance Promotions, Public Relations & Publication...Jaime Alberti Technologies/Innovations...Armistead Mauck Suppliers...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. 8 NCPGA News April

Time to Think of Training Classes CODE COMPLIANCE By David Donahue, NCPGA Director of Code Compliance and Education When the degree days get fewer and fewer it is time to start thinking of training. As always, we have a full season of classes to choose from. For service personnel we have CETP Classes. Basic Principles and Practices, Bobtail 2.2, Designing and Installing Exterior Vapor Distribution Systems 4.1, Placing Vapor Distribution Systems and Appliances into Operation 4.2 and Installing Appliances and Interior Vapor Distribution Systems 4.3 are once again being offered. New for 2016, we will be offering Basic Electricity for Propane Appliance Service 4.4. This will be a hands-on class, with students working on actual boards and equipment. Due to the limited number of boards, this class will be limited in size. If you are interested in sending any students for this class, please sign up early. It should be noted that all these CETP classes have been updated for 2016. So if you have older versions of the CETP student manuals you will need to order new copies when you register. All CETP registration forms can be found in the Featured Training section on our web site. (www.ncpga.org) In addition to CETP we will also be offering a Bulk Barn Class and Fuel Piping Prep Classes as we did in years past. Registration for these classes can also be found in the Featured Training section of our website. In addition to classes for field personnel NCPGA will also be offering some training classes for managers and customer service representatives. It seems that heating degree days are getting more elusive every year, so every prospect call into your office becomes more important. To help turn that what is your price call into a sale, NCPGA will be offering several Marketer Technology Sales Training Classes (MTST). To grow more gallons, you have to spot the opportunity. EXPAND SALES THROUGH CUSTOMER SERVICE MARKETER TECHNOLOGY & SALES TRAINING (MTST), customer service representatives and managers can learn how to make the most of their relationships and turn them into successful sales opportunities. Get a deeper look at the residential market and new technologies, learn sales-building tactics, and find out how to effectively communicate the value of propanepowered solutions. These classes will be offered on the district level making it easier for you and your staff to get this valuable training. Registration for these classes will also be available on our webpage. Look for the E-Blasts that we will be sending out soon. With all the training we do, accidents still happen. That is why we will be offering an IRC- Crisis Communications Training Class this year. Unlike IRC in previous years, this class will be focused on how to deal with the media during an emergency. For more than a decade, Strategic Communications LLC (SCLLC) has been providing practical communications training for all segments of the propane industry, specifically with regard to handling difficult and sensitive communications during emergencies and crises. They have participated directly in state Industry Responders Conferences, and have provided multiple states and individual companies with training that helps them better manage communications during incidents. This is an excellent opportunity to gain some excellent training on dealing with the media during a stressful situation. Be sure to look at our Calendar of Events and look for E-Blasts on our featured Training for 2016. www.ncpga.org 11

What s Wrong With This Picture? // Answers are on page 30

NCPGA 2016 Serviceman School May 17 & 18 Marriott Crabtree Valley Raleigh, NC Registration Fee: $50.00 Per Participant (limit 100 participants per day) Proper training is essential for a safe and productive workforce. NCPGA will be offering a one day review of some key areas. These classes will be repeated each day so you don t have to send all your employees at once. Classes include Choosing the Correct Regulator Adding new appliances, going from a 2 stage system to a 2 Lbs system requires the correct regulation. Water Heater Overview Non-degree gallons are becoming more important. Water heater,especially tankless, are becoming a bigger part of our customers propane usage. Working on Vaporizers Basic installation and maintenance of vaporizer systems. Review of Gas Check Module Leak and Pressure Testing Code Up-Date Code book are published every 3 year but changes do occur in between cycles. Find out where you can get these updates. Gas Log Maintenance Key points for installing, servicing and maintaining gas logs Registrations form can be found by using the link in the E-Blast or by downloading the form from our website: www.ncpga.org www.ncpga.org 13

FEATURE Make a Plan for Withdrawing Retirement Assets By Derek Carawan, AAMS You've worked long and hard to accumulate the assets that you are using to help finance your retirement. Now, it's time to start drawing down those assets. Exactly how you withdraw assets from various accounts will affect your taxes and impact how long those assets last, so it pays to plan a withdrawal strategy that is efficient and maximizes the benefits of different types of investments. First: Take an Inventory The first step in planning your withdrawal strategy is to take an inventory of all the assets you have accumulated for retirement, paying particular attention to distinguish between taxable accounts, such as ordinary bank or brokerage accounts, and tax-deferred accounts such as 401(k), 403(b) and 457 plans, and IRAs. From this process, you can begin to estimate how much cash you may be able to count on receiving from dividends, interest payments, redemptions, and distributions in a given year. You can also assess how much you will need to hold in reserve in order to meet your tax obligations. If your total expected income from the assets in your taxable accounts is great enough to meet your budgeted cash needs for the year, consider yourself to be fortunate. You need not weigh the transaction costs of different asset sale strategies or consider the added income tax effects of withdrawing assets from employersponsored plans and IRAs. But if you do need to liquidate assets in order to meet your cash flow targets, then you should consider the plusses and minuses of each withdrawal strategy as outlined in the following savings withdrawal hierarchy. Set Withdrawal Priorities As you consider these options, keep in mind that no single plan can be right for every person and every situation. Among the additional issues you should consider when designing your withdrawal strategy are the management of portfolio risk, your tax bracket, and the cost basis of the investments. With that in mind, below is a general summary of guidelines for creating an appropriate strategy. Remember, this is just an example. Your circumstances may require a different approach, so be sure to seek the help of a financial and or tax professional before taking any action. Note, too, that estate tax considerations might have an impact on your withdrawal priorities. 14 NCPGA News April

Meet the rules for Required Minimum Distributions (RMDs). Owners of traditional IRAs and participants in 401(k), 403(b) and 457 plans must follow IRS schedules for the size and timing of their RMDs. Those who fail to do so face a penalty tax equal to 50% of any required distribution that has not been taken by the applicable deadline. Sell losing positions in taxable accounts. If you have an investment that is worth less now than when you bought it, you may be able to create a tax deduction by selling that investment. This deduction can be used to offset any investment gains you realize. It can also be used to offset up to $3,000 in ordinary income. Losses in excess of the limits can usually be carried forward for use in future years. Realize long-term gains from taxable accounts. When liquidating taxable account assets, liquidate the holdings with long-term capital gains--which are taxed at a maximum of 20%--before those with short-term gains- -which typically are taxed at ordinary income tax rates, the highest of which is currently 39.6%. Withdraw assets from tax-deferred accounts to which nondeductible contributions have been made, such as traditional IRAs. If you ever made a nondeductible contribution to an IRA, then part of every withdrawal will be tax free. If you filed a Form 8606 with your tax return for every year you made a nondeductible contribution, the most recent of these should show the total amount of all nondeductible contributions. This amount represents your basis in your IRA, from which you can determine the percentage of your withdrawal that will be tax free. Your accountant or other financial professional can help you with this calculation. These are just a few of the withdrawal strategies you may want to consider. Keep in mind that the IRS has exacting requirements for exploiting all of these strategies and that tax laws are always subject to change. You should review your retirement distribution strategies with your tax and investment advisors before taking any specific action. 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. These views are those of the author and should not be construed as a solicitation to sell any insurance product or as investment advice. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information. This information is not intended to be a substitute for specific individualized tax or legal planning advice. FEATURE www.ncpga.org 15

SPRING BOARD MEETING NEW BERN Event Recap Downtown Trolley Ride Ed Congleton, Joe Phillips, and Greg Narron Lifetime Achievement Award Winners, Ralph Morris and Bob Mattocks Donnie Bullock and Bob Mattocks Charlie Brown, Jeff Ruffner and Mike Rutherford Courtney Gendron from PERC Ben Gutkin and Armistead Mauck Brenda Cole and Ken Dye 16 NCPGA News April

First Place Golf Team, Paul Harris, Bill Fowler, Mike Norman and Ken Dye 45 degrees and 30 mph winds.perfect golf weather Event Recap Group Trolley Tour Kemp and Jennifer Johnson, Doug Lawrence BABY GIRL! BABY GIRL! PERC CETP Blending Seminar Larry Mizell of Amerigas in Goldsboro and wife, Jessica would like to introduce their daughter, Jessa Olivia Mizell. Jessa was born March 21 at 11:13 pm and is 21 ½ inches long and weighs 7 lbs. 8 oz. Congratulations Mizell Family! Ray Billups and Tim Rice www.ncpga.org 17

FORBES ARTICLE PATH Act Makes Many Tax Breaks Permanent By Steve Parrish, Contributor In a welcome end-of-year surprise, the Protecting Americans from Tax Hikes (PATH) Act, signed into law on December 18, 2015, made many popular tax breaks permanent and retroactively extended others. Most of these provisions had expired at the end of 2014, and as has become typical of tax extensions congressional action came too late for meaningful current-year planning, though you may still benefit on your 2015 taxes. More important, the provisions that were made permanent will help individual taxpayers and small businesses plan for future years. The PATH Act is complex, but these are some of the most significant provisions for individuals and small businesses. Tax Breaks for Individuals These provisions are now permanent parts of the federal tax code. Sales tax deduction Taxpayers who itemize deductions on Schedule A of IRS Form 1040 can elect to deduct state and local general sales taxes in lieu of state and local income taxes. This is especially important for those who live in states without an income tax or for those who make large purchases during the year. American Opportunity Tax Credit A tax credit of up to $2,500 of qualified higher-education expenses (partially refundable, depending on income) is available for each of a student s first four years of college, subject to income phaseout limits. Classroom expense deduction Teachers can deduct up to $250 in classroom expenses above the line (on Form 1040 before adjusted gross income) in 2015. Beginning in 2016, the amount is indexed for inflation and might include qualifying professional development expenses. Qualified charitable distributions (QCDs) Individuals 70½ and older can make tax-free QCDs from their IRAs (up to $100,000 in a year). The QCD counts toward the required minimum distribution. Employer-provided mass-transit benefits Employer pre-tax reimbursement is set at the same level as parking reimbursement and retro actively increased from $130 to $250 monthly for 2015 ($255 for 2016). Child tax credit The $3,000 income threshold for calculating the refundable credit is now permanent. Earned income tax credit Both the credit for families with three or more children and the higher income phaseout range for couples filing jointly have been increased. The following tax provisions were extended through 2016. Qualified higher-education expenses Up to $4,000 can be deducted above the line on Form 1040, subject to income phaseouts (not available for a student claiming the American Opportunity Tax Credit or the Lifetime Learning Credit). Mortgage debt The discharge of up to $2 million in debt associated with a qualified principal residence can be excluded from gross income. This allows underwater homeowners to execute a short sale without being taxed on the forgiven debt. 18 NCPGA News April

Mortgage insurance premiums Premiums paid for qualified mortgage insurance can be deducted as qualified residence interest on Form 1040, subject to income phaseouts. Energy credit A credit for 10% of certain energy-efficient home improvements remains available, up to a lifetime cap of $500. Section 529 Plan Changes The law includes more flexible distribution rules for Section 529 savings plans and adds computers and tech equipment to the list of qualified highereducation expenses. Tax Breaks for Small Businesses The following tax provisions were made permanent. Section 179 expensing Up to $500,000 in qualifying equipment can be expensed, with phaseout at $2 million in total purchases (indexed for inflation after 2015). Computer software and qualified real property may also be expensed, with the $250,000 limit on real property eliminated after 2015. Research credit The tax credit for qualified research and development expenses, which dates back to 1981, is finally permanent. Beginning in 2016, new provisions provide additional benefits for some small businesses. Exclusion of gain on qualified smallbusiness stock Capital gains from the sale or exchange of qualified smallbusiness stock held for more than five years can be excluded from income; this applies to the alternative minimum tax and to the regular income tax. The following tax provisions were extended as indicated. Bonus depreciation Companies can deduct 50% of the cost of new capital purchases through 2017; the deduction falls to 40% in 2018 and 30% in 2019 for most property types. Bonus depreciation is typically applied after Section 179 expensing. Work Opportunity Tax Credit The credit for hiring veterans and candidates from other targeted groups is extended through 2019 and expanded (beginning in 2016) to employers that hire qualified long-term unemployment recipients. Looking Forward Further tax legislation seems unlikely until a new administration and Congress take office in 2017. Taxpayers may have to wait some time to learn about the fate of provisions set to expire after 2016. However, after years of fiscal gridlock, the PATH Act shows that politicians can find common ground regarding taxes. The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. Copyright 2016 Emerald Connect, LLC. 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 FORBES ARTICLE www.ncpga.org 19

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The Technology, Standards & Safety Committee March 7-9 Mesa AZ Event Recap Ed and Robin Congleton, Richard Fredenburg, Greg Narron and Ray Kazakewich Ray Kazakewich Richard Fredenburg Ed Congleton 22 NCPGA News April

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FEATURE Installations Must Meet Requirements By Richard Fredenburg, North Carolina Department of Agriculture and Consumer Services The North Carolina Administrative Code 02 NCAC 38.0701 requires that propane installations meet the standards presented in the LP-Gas Code. There are a few additional requirements in the Administrative Code (ncagr. gov/standard/lp/lpgasconcerns/ lpgasregulations.htm) and N.C. General Statutes (http://ncagr.gov/standard/lp/ LPgasConcerns/index.htm#Laws), so it is helpful to check those to be sure you have met all the requirements. I spoke with Dave Donahue, the association s director of code compliance and education, to see how this concept would apply to your industry. Here is what we discussed. Richard: Dave, we recently had some training by a retired fire inspector and he pointed out that buildings and installations have to be built or installed to meet all of the code requirements. But, an inspector is not required by law to verify that all requirements are met when he does an inspection. What do you think of this statement? Dave: He s right, Richard. If an installation of a propane system fails to meet all of the requirements, it could be that Murphy s Law will kick in and those few, seemingly minor, missed requirements will cause a release of product. For an inspector to always look at every requirement would be a staggering task. But, to be fair, he should be consistent in what he looks at so each company is treated equally. R: Yes, that is a challenge, particularly as each inspector may take a different approach. Just think of all the things an inspector could look at when he is at, for instance, a bulk plant. If he had to verify every requirement, he would insist on checking the U-1 data sheet for every bulk tank and small tank installed there. Instead, he looks at the nameplate and, if all is proper there, he accepts that the tank is properly built. The same goes for valves and other components that have to meet UL, ANSI and ASTM requirements. Examining all of the documentation would be a real timeconsumer for the inspector. D: And, think of the challenge for the company to maintain the documentation and have it available for the inspector, also. R: Right! When you do your training, you tell them they have to buy components and materials that meet the requirements stated in the code and install them to meet the installation requirements. We verify a lot of that. But to verify everything, the company would have to take apart some assemblies to allow the inspector to see everything. For instance, the piping would have to be disassembled for an inspector to verify that schedule-80 pipe was used instead of schedule-40 pipe. D: That would make it very difficult for the marketer. Regular inspections to that level would be expensive for them. R: The same type of thing happens with operations. A dispenser operator needs to do a proper visual inspection of every cylinder before he fills it. Each cylinder has a different life story to tell, so generalizations about whether or not a cylinder is safe to fill based on a casual glance at it may allow a critical failing to go unnoticed. An inspector is there to observe for only a short time and will likely not see the variety of cylinder conditions presented. D: Yes. We had a picture in last month s magazine of a cylinder that was filled without removing the sleeve. When it was filled again a week later, the sleeve was removed and a layer of the steel came away as rust with the sleeve. That was not seen at the previous fill because the sleeve was not removed. R: That could have been a bad situation. That example, plus the fire incidents we investigated last year, point out the real danger that filling compromised containers poses, and the important role dispenser operators have when it comes to ensuring tank safety. D: It s not just cylinders. Every tank at a residence has to be examined before filling. Your inspectors will never get to all of those locations. But, our marketers have to be painstaking when they install the system and each time they fill the tank. R: You re right. Our five site inspectors could never hope to visit each home or business with a propane tank and every exchange cabinet. I wonder how 24 NCPGA News April

many thousands of those there are in North Carolina. D: I don t think anyone has that number. Do your inspection forms have every requirement listed? R: No. That would make each inspection form many pages long. We have different forms for each type of inspection. Rather than list what would effectively be the entire LP-Gas Code plus some N.C. rules on every form, we categorize forms into bulk plants, dispensers, trucks and miscellaneous, which includes domestic, cylinder exchange, food truck and some observed violations. That makes each form manageable. We show the important items and common violations we find and provide a place to note other violations not listed. Inspectors are trained on the code and will sometimes include relatively rare violations not on the list. The different inspection forms are part of the way we direct inspectors to be uniform in their inspections. The items tend to focus their attention to the important items. However, it does not limit their observations to just those items. D: Do you expect all violations to be corrected right away? R: As the recent training pointed out, we don t really have the option of allowing a violation to continue. But, to require it to be repaired immediately would impose an unrealistic expectation. We can t say to fix it by a certain date, but we can say when we will return to do a follow-up inspection, expecting corrections to be complete. I also made a change in the way I reply to extension requests. Instead of saying the corrections do not have to be made until a certain date, I note that the inspector will not return for the follow-up inspection until a certain date. I don t want to make a statement that leaving the violations uncorrected is OK. It is in everyone s best interest to correct violations as quickly as possible. D: That fire inspector was right. There is no way your inspectors could hope to verify all component manufacturing or system installation requirements and still see a significant number of sites in a year. And I can see some liability for you to say a violation can continue. R: I m glad you agree. In your training, I encourage the association to keep pushing the idea of meeting all rules each time a system is installed or a container is filled. We ll look at a sampling of some types of sites, watch some of the filling operations and hope our combined efforts will encourage marketers to be vigilant. [End of discussion] Dave and I will certainly continue our regular discussions about codes and requirements, keeping the lines of communication between the state and the industry open. 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. FEATURE www.ncpga.org 25

2016 BOARD MEETINGS / CONVENTION CALENDAR OF EVENTS June 17-21 Summer Board Meeting Williamsburg Lodge, Williamsburg, VA Sept. 10-13 Annual Convention Harrah s Cherokee Casino Resort, Cherokee TRAINING/DISTRICT MEETINGS April 8-10 Southeast Convention Nashville, TN April 12-13 Basic Principles CETP Class Hickory, NC April 19 District 2 Meeting Asheville, NC April 20 CSR MTST Asheville, NC April 20 District 3 Meeting Winston Salem, NC April 21 CSR MTST Winston Salem, NC April 25-27 Bobtail CETP Class Hickory, NC May 3 Bulk Barn Class Greenville, NC May 4 Legislative Day Raleigh, NC May 10-12 Vapor Distribution 4.1 Hickory, NC May 17-18 Serviceman School Raleigh, NC May 23-25 Propane Days Washington, DC May 24-26 Vapor Distribution 4.1 Greenville, NC June 2 Fuel Piping Prep Course NCPGA Training Center June 7-9 Vapor Distribution 4.1 NCPGA Training Center June 28-30 CETP Basic Electric NCPGA Training Center July 12-13 Basic Principles CETP Class NCPGA Training Center July 19-21 Vapor Distribution 4.2 NCPGA Training Center July 26-28 Bobtail CETP Class NCPGA Training Center Aug 1 District 4 Meeting Charlotte, NC Aug 2 CSR MTST Charlotte, NC Aug 2 District 5 & District 6 Meeting Raleigh, NC Aug 3 CSR MTST Raleigh, NC Aug. 4 Fuel Piping Prep Course Greenville, NC Aug. 9-10 Basic Principles CETP Class Hickory, NC Aug. 11 IRC Managers Training NCPGA Training Center Aug. 16-18 Bobtail CETP Class Hickory, NC Aug 16 District 7 & District 9 Meeting Greenville, NC Aug 17 CSR MTST Greenville, NC Aug 17 District 8 Meeting Hertford/Edenton, NC Aug 18 CST MTST Hertford/Edenton, NC Aug. 25 Fuel Piping Prep Course Hickory, NC Aug. 30-Sept. 1 Vapor Distribution 4.3 NCPGA Training Center Oct. 4-5 Basic Principles CETP Class Hickory, NC Oct. 18-20 Bobtail CETP Class Hickory, NC Nov. 1-2 Basic Principles CETP Class NCPGA Training Center Nov.15-17 Bobtail CETP Class NCPGA Training Center 2017 BOARD MEETINGS/CONVENTION Mar. 19-22 Spring Board Meeting Marriott Winston-Salem June 25-27 Summer Board Meeting Courtyard Marriott Carolina Beach Sept. 17-20 Annual Convention Myrtle Beach Resort & Spa at Grande Dunes 26 NCPGA News April

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Visiting our Members Event Recap David Parker, Parker Gas Co. Newton Grove NC Keith Barker, Amerigas Marshville NC Taylor Ross, Suburban Charlotte NC Ken Dye, Amerigas Charlotte NC 28 NCPGA News April

2 Brush Creek Boulevard Suite #200 Kansas City, MO 64112 816-329-5316 max.johnson@ crestwoodlp.com www.crestwoodlp.com Meet Max Johnson Your Title: Owner/President of Company: Bill Gautreaux Headquarters: Services/Products Offered: Area of Service Coverage: Years in your Industry: Years in your Company: Years in NCPGA: Where You Live: Where You Grew Up: Family: Personal Interests: Favorite Sports Teams: Interesting Facts: Other Info: Southeastern Marketing Representative Kansas City, MO Crestwood's professionals can help customers asses their needs from a supply and financial perspective and can develop a comprehensive business strategy to meet those needs. Crestwood offers supply planning agreements, index pricing agreements, delivered pricing agreements, fixed price and option hedges, transportation and storage. Mississippi, Georgia, Alabama, Florida, South Carolina, North Carolina and Virginia 3 Years 3 Years 3 Years Kansas City, MO Overland Park, KS NA Sports, Traveling and Music Kansas City Royals, Kansas Jayhawks, Kansas City Chiefs and OKC Thunder I played baseball in college. Crestwood markets the Dixie Pipeline and Rose Hill, NC Rail Terminal SUPPLIER PROFILES 5925 Carnegie Boulevard, Suite #400 Charlotte, NC 28209 704.954.3013 kmelvin@bbandt.com bbt.com Meet Kevin Melvin Your title: Risk Management Advisor Owner/president of company: Kevin Melvin Headquarters: Winston Salem, NC Services: Deliver a high performance sales team that works on your behalf as an extension to your team. Client advocate. Not just a vendor relationship, rather a partnership. Our goal is to leverage all of our markets and bring the best results to my clients. Most important objective. Leveraging our markets within this industry helps your bottom line, due to our regional marketing relationships and ability to use our volume as negotiation. Product Focus: Commercial Insurance - Workers Compensation, General Liability, Property, Auto, Professional Liability, Pollution, Cyber Liability, Employment Practices, Business Income, etc. Our office has over 20 years experience working in YOUR industry. Area you cover: North Carolina Years in your industry: 10 years Years in your company: 7.5 Years Years in NCPGA: 4 years Favorite sports teams: Carolina Panthers, Charlotte Hornets (next year), NC State Athletics, Minor League Baseball and MLB Interesting facts about you: 6 th largest insurance broker in the country. Make all decisions local and in our office. Work with the best clients in this industry. www.ncpga.org 29

What s Wrong With This Picture? This shows two balconies, each with a grill and, more importantly, a propane cylinder with each grill. This is a portion of a building with eight such balconies, with five of them holding a grill and propane cylinder. The LP-Gas Code, in section 6.20.11.2, prohibits cylinders on balconies above the first floor when they are not served by an exterior stairway. The problem is that the cylinder almost certainly got to the balcony by traveling through the residence. For balconies with an exterior stairway, there are additional requirements in 6.20.3 concerning separation from combustible materials, securing, and transport. NCPGA NEWS Advertisers Index Apache LP Trucks, Inc..... 12 Best & Langston, Inc....Back Cover BLT Tanks LLC...Inside Front Cover CHS...23 Coastal Energy...20 Controls Inc...7 Crestwood Services LP....9 CUI...15 Gardner Marsh Gas Equipment Co....Inside Back Cover Gas Equipment Co., Inc..... 25 Metsa...3 Petroleum Tank Corporation....4 Rutherford Equipment...20 Tri-State Distribution...27 WESROC...27 Heating Degree Days Asheville (KAVL): Feb Mar Y-T-D 2015/16 724 349 * 3097 * 2014/15 895 425 3984 Charlotte (KCLT): Feb Mar Y-T-D 2015/16 588 227 * 2367 * 2014/15 764 336 3254 Greensboro (KGSO): Feb Mar Y-T-D 2015/16 648 264 * 2651 * 2014/15 864 428 3698 Elizabeth City (KECG): Feb Mar Y-T-D 2015/16 579 261 * 2172 * 2014/15 822 482 3184 Raleigh (KRDU): Feb Mar Y-T-D 2015/16 606 232 * 2373 * 2014/15 836 419 3484 Wholesale Prices 10/19/15 $ 0.532 11/09/15 $ 0.533 12/21/15 $ 0.443 01/18/16 $ 0.381 02/15/16 $ 0.470 03/21/16 $ 0.519 (Source: http://www.wunderground.com/) *up to March 29 th Y-T-D begins July 1 st (Source: http://www.eia.gov/dnav/pet/pet_pri_wfr_dcus_snc_w.htm) 30 NCPGA News April

NCPGA NEWS North Carolina Propane Gas Association 5109 Hollyridge Drive Raleigh, NC 27612 Presorted STD U.S. Postage PAID Helmer Printing