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Two definitions from the AOL Online Dictionary and an entry from The Columbia 
Encyclopedia: Sixth Edition.  2000.  Notice the dates of appearance as well 
as the dates of Peter the Great's birth and death.  Since there is such a 
time span between all of these, it is unlikely that the origin of the phrase 
"petered out" had anything to do with the other two.  So who knows?  

Carrie
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pe*ter [1] (verb intransitive)

[origin unknown]

First appeared 1846

 1 : to diminish gradually and come to an end : GIVE OUT -- usu. used with 
out <novelists whose creative impetus seems largely to have ~ed out --Times 
Lit. Supp.>

 2 : to become exhausted -- usu. used with out

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peter [2] (noun)

[from the name Peter]

First appeared circa 1902

 : PENIS -- often considered vulgar

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The Columbia Encyclopedia: Sixth Edition.  2000.

Peter I, czar of Russia or Peter the Great,1672–1725, czar of Russia 
(1682–1725), major figure in the development of imperial Russia.