California Petroleum Conference
SIGMA Spring Meeting
Want to see the photos that didn't make the issue? Check out the Cutting Room Floor.
USA to Sell California Stations to Chevron
Farm Crest Dairy C-Stores Are Sold
ConocoPhillips Buys Into Rockies Express
Pipeline
Biodiesel Bill Killed in Arizona
Chevron Launches New Image Program
C-Store Thief Wants Pop-Tarts, Gets Hit By Cars
Instead
SAN RAMON, CA. — Chevron U.S.A. Inc. has signed a deal to acquire 122 California service stations from USA Petroleum Corp. The price for the stations was not disclosed.
John Moller, owner of USA Petroleum, Thousand Oaks, CA., said, "After nearly 50 years, I believe it is appropriate to sell some of our retail gas station holdings, and I believe that the transition to Chevron also will be good for my customers and station employees."
Chevron says they will rebrand the USA stations to either the Chevron or Texaco brand. The majority of the stations are currently retailing under the USA brand and image although a few are flying the Shell or Chevron brands.
The sale of the stations is subject to regulatory approval before it can be concluded.
California currently has about 10,000 retail gasoline service stations, of which roughly 1,500 are currently branded either Chevron or Texaco.
COLORADO SPRINGS, CO. — Farm Crest Milk Stores has sold its 17 Colorado convenience stores to Houston-based Pester Marketing. The price was undisclosed.
"Farm Crest decided it wanted to concentrate on its core business," explained Pester spokesman Rich Spresser, announcing the deal. Farm Crest Milk Stores/Royal Crest Dairy will continue its milk production and home delivery service along Colorado's Front Range.
The affected c-stores include nine in the Pikes Peak region: seven in Colorado Springs, one in Security and one in Woodland Park.
The c-stores will be rebranded to 1st Stop Farm Crest and their gasoline offerings will be rebranded to Phillips 66 "at the majority of the stores," according to the company. The c-stores will continue to sell Farm Crest products and participate in Farm Crest promotional programs.
"Customers really won't see much of a change in the stores initially," Spresser said, "but as we move forward, we will be branding the gas pumps, putting in new signage on the store and the canopy."
Prior to the purchase, Pester Marketing operated 24 1st Stop c-stores in Colorado: in Denver, Pueblo and the San Luis Valley.
HOUSTON, TX. — ConocoPhillips has acquired a 24% interest in the planned 1,663-mile Rockies Express natural gas pipeline project.
The pipeline project, one of the largest natural gas pipelines constructed in North America, will run from the Cheyenne Hub in Weld County, CO., to the Clarington Hub in eastern Ohio. The cost of the pipeline is estimated at over $4 billion when completed.
The Rockies Express pipeline is a joint venture of Kinder Morgan Energy Partners, Sempra Pipelines and Storage and ConocoPhillips. In addition to being an owner, ConocoPhillips says it will move natural gas production on the pipeline.
PHOENIX, AZ. — A bill to encourage biodiesel production has been killed by Arizona legislators.
The proposed legislation would have reduced property taxes for biodiesel fuel plants as a method to encourage biodiesel production in the state. If passed, biodiesel plants would be assessed at 5 percent of their full cash value, a substantial savings from the state's current business rate of 24.5 percent.
Arizona Senate President Ken Bennett (R-District 1) supported the bill, saying it would lower America's reliance on foreign oil. Bennett, who also serves as the CEO of Bennett's Oil Co., Prescott, AZ., noted, "I don't produce biodiesel in my business, but I do sell it," adding, "I support energy independence, and I vote 'aye.' "
SAN RAMON, CA. — Chevron has launched a new "Image Refresh Program" designed to modernize its gasoline stations.
The new image has been tested in stations in California and Seattle, WA., and Chevron says it is ready to roll out the program to its 4,000 branded locations in California, Hawaii, Arizona, Alabama, Texas and Florida over the next 18 months. The reimaging will then roll out to the remaining 3,500 Chevron stations across the country.
The image will include a high-gloss blue fascia with "vibrant blue" LED downlighting, a new canopy accent band design with LED illumination, redesigned trash valets, a new Chevron logo, illuminated spanners, and a new design for valances.
Chevron officials said the redesign seeks to provide a clean, bright, well-lit environment, increase visual impact at night or in dark conditions, and provide a more open and comfortable feeling to consumers. The new elements are also more energy efficient which Chevron says will help retailers lower their station expenses, helping to underwrite the costs of the upgrades.
Chevron says they will offer financial incentives to retailers to help with the costs of the new imaging which are estimated to run between $20,000 and $90,000 per site.
The $200 million-plus program is expected to be complete in the next five years.
SOUTH SALT LAKE, UT. — An alleged Pop-Tarts thief had difficulty with his getaway from a local convenience store.
According to local police reports, store clerk Dee Tuia noticed that the Pop-Tarts in George King's hands seemed to have disappeared after he picked them up. Tuia asked King, 20, "Okay, what happened to the two items in your hands?"
The clerk and King began to struggle and King's shirt was ripped off as she grabbed him. King then turned and swung, hitting Tuia in the chest.
King then ran out of the store and was hit by a pickup truck in the parking lot. He got up from that accident and ran into the street where he was hit by a minivan.
After being hit by the second vehicle, King did not get far. He was out and running again, but was captured by police who were responding to the robbery call from the convenience store.
Captain Tracey Tingey of the South Salt Lake City Police noted that the minivan "knocks him to the ground. He gets up and again continues to run, but responding police officers caught up with him just a short distance later and he was taken into custody." Tingey added, "He seems to have suffered little or no injuries."
King was charged with robbery, but police noted if he hadn't assaulted the clerk he would have only have been charged with misdemeanor shoplifting.
Originally published in the August 2006 issue of O&A Marketing News.
Copyright 2006 by KAL Publications Inc.
Serving the 13 Western States, the World's Largest Gasoline, Oil, Fuel, TBA and Automotive Service Market
