Tanknology-NDE Fined $2.29 Million for Faking Tests
Landmark Maui Station Preserved
Tokheim Files Chapter 11
ExxonMobil Signs Deal to Supply U.S. Department of Defense
Taxi Driver Starts Fire at Kahala Chevron
Mission Viejo Smoking Ban Fails

TANKNOLOGY-NDE FINED $2.29 MILLION FOR FAKING TESTS

AUSTIN, TX. — Tanknology-NDE International has been ordered by a Federal Court to pay $2.29 million in fines and restitution for faking tank tests and producing false reports.

Tanknology-NDE pleaded guilty in August to 10 felony counts of presenting false claims and making false statements to federal agencies. At the time of the plea, they agreed to pay a $1 million criminal fine as well as $1,290,000 in restitution to the United States; that financial arrangement was upheld by the court in November.

In addition to the fines, Tanknology-NDE will serve a five year tem of probation and implement a quality management system to ensure that false testing practices do not occur again.

Tanknology-NDE admitted that from January 1997 to December 1999 the company's testers performed false UST tests at facilities in nine states across the country including military bases and NASA and U.S. Postal facilities.

Federal criminal investigators observed Tanknology testers on the job and found the company was taking a number of shortcuts instead of performing the required tests. These shortcuts ranged from failing to follow required test protocols to "drive-by" tests. In this latter case, a Tanknology tester was videotaped driving up to a federal facility, driving away after a few minutes, and then submitting false data as if he had actually performed the test.

Tanknology also admitted in court that its regional managers set schedules for testers that caused some to be unable to always conduct valid tests and stay on schedule.

LANDMARK MAUI STATION PRESERVED

PAIA, MAUI, HI. — An historic building that housed the Kobayashi Service Station is being preserved in an effort maintain the "small town feel" of Paia Town on Maui.

The building has been purchased by Don Nelson, owner of the Dallas Mavericks basketball team and part-time resident of Maui. Nelson said the trademark canopy will be replaced on the building and a cobblestone embossed concrete walking path will be placed outside. Inside, the station's building will be converted to house three businesses, including an internet cafÈ.

"I love Paia Town," said Nelson. "I always have. It's like a throwback to the 1960s. The preservation is respectful of the old Paia look. We want to keep that but also give the people something nice to visit."

Locals say they are not sure when the Kobayashi Service Station was first opened, but there are photographs of the station dating from 1917.

TOKHEIM FILES CHAPTER 11

FT. WAYNE, IN. — Tokheim Corporation and its operating subsidiaries filed for Chapter 11 bankruptcy on November 21, bringing an end to months of speculation as to whether the equipment manufacturer could turn around its operations in time to avoid bankruptcy.

The company listed assets of $250 million and debts of $458 million at the time of filing.

Tokheim President and CEO John Hamilton said that the company will now look to sell its business units "as quickly as possible." The divisions for sale include its Tokheim North America dispenser company and Gasboy.

Dresser Wayne has been named as one of the companies looking to purchase the assets of its arch-rival, Tokheim. If Dresser Wayne is successful in its acquisition, the petroleum dispenser industry will only have two major suppliers: Dresser Wayne and Gilbarco.

According to Tom Osborne of the Society of Independent Marketers of America, the Department of Justice's Anti-Trust Division has contacted SIGMA "seeking our views and the views of marketers on such a potential combination." With the massive consolidation of the petroleum equipment industry, it appears that this merger will get full scrutiny from the Department of Justice.

Osborne invited SIGMA marketers with "views on this possible takeover of Tokheim by Dresser Wayne, either favorable or unfavorable" to contact SIGMA's attorney, Tim Columbus, in confidence at 202-342-8555."

Tokheim has reached an agreement with its bankers to secure $10 million in credit, an amount that the company says will be sufficient to keep it operational until the sale of its assets closes.

EXXONMOBIL SIGNS DEAL TO SUPPLY U.S. DEPARTMENT OF DEFENSE

WASHINGTON, D.C. — ExxonMobil has signed a deal with the U.S. Department of Defense to supply petroleum products to the military.

The major oil company will provide $47.8 million worth of gasoline, diesel fuel, and motor oil to U.S. and NATO forces based in Italy as well as other unspecified locations.

Government officials say they are preparing their supplies in case of a possible military action against Iraq.

TAXI DRIVER STARTS FIRE AT KAHALA CHEVRON

HONOLULU, HI. — A taxi driver disabled a safety feature and caused a blaze at the Kahala Chevron station, operated by dealer Barney Robinson at 4117 Waialae Avenue.

According to local reports, the taxi driver entered the station to fill up his Lincoln Town Car and put a gas cap in the nozzle to keep the fuel flowing. The driver then entered the Chevron's c-store to get a cup of coffee. When he returned from the c-store, the Town Car was on fire and gasoline was continuing to pour from the fuel tank. The driver removed the nozzle from the tank and dropped it on the pavement and gasoline began spreading across the station to other pump islands.

The Chevron station attendant was able to activate the emergency gasoline shut-off and keep the fire from spreading.

Honolulu Fire Department Captain Richard Soo praised the station attendant for the quick response. "Ultimately the thing could have had an explosion or totally ignited and things could have got really out of hand," he said.

Soo believes the fire started when the gasoline began running down the side of the car and found a heat source such as a hot muffler.

Two dispensers were damaged at the station; the loss was estimated at $100,000. The station was closed for 12 hours for investigation and cleanup and resumed business at 6:00 p.m. at its undamaged dispensers.

The taxi driver suffered second degree burns to his hand when he removed the nozzle from the flaming car. He was treated and released at a local hospital.

MISSION VIEJO SMOKING BAN FAILS

MISSION VIEJO, CA. — The Mission Viejo City Council has backed away from a smoking ban that would have been one of the strongest on record.

The City Council had been considering a new anti-smoking ordinance in this small town south of Los Angeles. The regulation would have banned smoking in all city buildings, grounds, and public parks. Smoking — indoors or outdoors — would also have been banned at any location leased by the city and in any city-owned vehicles.

After a hotly contested vote, the measure failed to pass by a vote of 3 to 2 against.

"I'll do anything I can to support public health within the bounds of fairness for all concerned," said Councilman William Craycraft, discussing the issue, "but this goes beyond what state law requires, and I will not be supporting this ordinance."

Failing to pass the measure, the City Council has asked Mission Viejo bureaucrats to write a new ordinance that would limit the smoking ban to California state law restrictions.

Originally published in the December 2002 issue of O&A Marketing News.
Copyright 2002 by KAL Publications Inc.