February 2008 Issue Highlights
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Nevada Petroleum Marketers Golf Tournament
NACS/PEI Joint Convention
Pacific Oil Conference Board Meeting
Want to see the photos that didn't make the issue? Check out the Cutting Room Floor.
PetroSun West Acquires Time Oil Convenience Stores
California Files Suit Against EPA
SFO To Convert Shuttles to Hythane
California Gasoline Demand Is Falling
Pacific Ethanol Suspends Plant Construction
Arizona Convenience Store Thieves Arrested
SEATTLE, WA. — PetroSun West LLC, a new combined venture of four marketers, has acquired 95 convenience stores from Time Oil Co., based here.
With the sale of the convenience stores, Time Oil, a known brand in the Pacific Northwest for 70 years, has effectively exited petroleum retailing.
"We have been in this business for just about as long as anyone has," said Richard Gordon, general Counsel of Time Oil. "And around here, it certainly feels like the end of an era. And I suppose the beginning of something new; we'll have to see what that is."
The 95 sites, operating under the names of Time Oil Food Marts and Jackpot Food Marts, are located in Washington, Oregon, California, and Nevada. The fuel brands on the locations included Chevron, Shell, Valero and the Time Oil brand.
Time Oil had been operating the stations as lessee sites. PetroSun West says they will maintain the lessee agreements at some of the locations, take over operations at some of the locations, and sell some of the locations — with branded supply deals — to their current operators.
PetroSun West is headed by president Sam Hirbod, who also owns Bed Rock Oil of Seattle. The partners in the company are David Delrahim of Golden State Petroleum and Michael Saie and Allen Goodman of Suncor Capital.
"There are a lot of good assets in Time Oil," Hirbod told local reporters. "Time Oil has a very, very rich history. We're hoping to bring it up to today's standards. The thing in the portfolio that really caught our eye was the quality of assets; the quality of their dirt is very, very good. They just need a little freshening up, a little tender-loving care, and we're going to put the dollars into those stores to bring them up to the standards that we think they deserve to be at."
Hirbod also noted that PetroSun West plans to be "the largest operator in the West" and is actively "looking for portfolios of mid-sized companies with 50 or more sites," both on the East and West Coasts.
Of the approximately 10 service stations that are still owned by Time Oil, the company has closed the gasoline retailing at the sites and plans to sell off the locations.
SACRAMENTO, CA. — In an effort to allow the state to enact tougher standards than Federal regulations, the state of California has filed a lawsuit against the Environmental Protection Agency.
The lawsuit, a petition for review, was filed in the U.S. Court of Appeals for the Ninth Circuit in January after the EPA denied California's request for a Clean Air Act waiver. California had asked for the waiver to impose tougher emissions standards on automobile manufacturers. California was seeking a 30 percent reduction in emissions from 2004 levels and a 33-miles-per-gallon fuel economy requirement by 2016 for passenger cars and light-duty trucks.
As part of its denial of California's waiver request, EPA officials noted that the new Federal requirement is 35-miles-per-gallon by 2020 and will address emissions concerns better than the state's standards.
Several other states have joined California's suit against EPA, including the Western states of Arizona, New Mexico, Oregon, and Washington. These states say they plan to follow California's lead in emissions standards.
In a January hearing following the filing of the suit, California Senator Barbara Boxer, who serves as chairman of the Senate Environment and Public Works Committee, said that she will "force" the EPA to grant the waiver.
DENVER, CO. — San Francisco International Airport has received a $499,800 grant to acquire 14 parking lot, hotel, and airline crew shuttles to run on Hythane fuel, a blend of 20% hydrogen and 80% natural gas.
The grant, awarded by the Bay Area Air Quality Management District, will facilitate the conversion of the airport's existing gasoline-powered and diesel-powered shuttles to vehicles that will run on the alternative fuel.
By converting the shuttles to Hythane, it is predicted it will reduce nitrous oxides by 56%, non-methane hydrocarbons by 30%, and carbon dioxide by 40% over the existing versions. The Hythane model is also expected to outperform comparable natural gas shuttles by emitting 30% less hydrocarbons and 20% less carbon dioxide.
The airport received half of a special grant set set aside for advanced technology demonstration programs by the Bay Area Air Quality Management District.
"Hythane Company is excited to assist SFO in being a leader in reducing emissions in the airport arena," stated John Nadeau, Hythane West Coast manager for the Colorado-based company. He noted that the Hythane project was the most cost-effective project of all the projects applied for under this grant based on dollars per ton of emissions reduced.
"Hythane Company is in the business of working closely with alternative fuel vehicle partners and public agencies like the Bay Area Air Quality Management District and the San Mateo City/County Association of Governments to amass the support needed to move clean transportation projects forward," stated Roger Marmaro, Hythane president and co-founder.
SACRAMENTO, CA. — Gasoline consumption in California is declining, according to state officials.
Californians used 2.6 percent less gasoline in September 2007 than from the same period a year ago, according to Betty T. Yee, chairwoman of the state Board of Equalization.
The September figures, released at the end of December, mark the sixth consecutive three-month period to show a continuing decline in gas consumption. In the third quarter of 2007, Californians used 46.2 million gallons less than they did in the same period last year.
Yee also noted that the average pump price of gasoline in California during the third quarter of 2007 was $3.015, down slightly from the average pump price in the third quarter of 2006 of $3.136.
CALIPATRIA, CA. — Pacific Ethanol, Inc. has announced that it has suspended construction of its 50 million gallon per year ethanol production plant here "due to poor market conditions."
"We remain committed to completing our ethanol project in Imperial Valley. However, given current ethanol market conditions, we feel it is prudent and strategic to suspend construction until the market improves," said Neil Koehler, Pacific Ethanol chief executive officer.
Pacific Ethanol officials said the company will continue to build two planned ethanol production plants in Stockton, CA., and Burley, ID. Pacific Ethanol currently operates a 40 million gallon per year ethanol plant in Boardman, OR., and a 40 million gallon per year ethanol plant in Madera, CA., as well as 42% of Front Range Energy, which operates a 48 million gallon per year ethanol production plant in Windsor, CO.
GILBERT, AZ. — Police have arrested three men who were suspected of taking part in 15 different robberies of Phoenix and Southeast Valley convenience stores.
According to local reports, the men would rob convenience stores at gunpoint, demanding cash, lottery tickets, alcohol and cigarettes. Because of their choice of items to steal, police named the thieves the "Mini Newport Bandits."
Jonathan C. Diaz, 19, Joseph A. Herrera, 19, both of Chandler, AZ., and Joshua Liranzo, 20, of Gilbert, were were arrested on suspicion of armed robbery. A fourth suspect was identified and was found to already be in custody in another state.
Originally published in the February 2008 issue of O&A Marketing News.
Copyright 2008 by KAL Publications Inc.
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