PME Customer Appreciation BBQ
Southern California Petroleum Industry Golf and Tennis Invitational
Central Valley Petroleum Industry Golf Tournament
California Independent Oil Marketers Association Destruction Derby
Want to see the photos that didn't make the issue? Check out the Cutting Room Floor.
Couche-Tard to Acquire Phoenix On The Run Sites, U.S. Franchises
CIOMA Sues CARB For Violations of Public Records Act
Albuquerque Air Board Repeals Fuel Economy Rule
AE Biofuels to Supply Pearson Fuels With Ethanol
Supreme Court Rules On Cleanup Liability
PetroCard Opens Seattle CNG Station
FAIRFAX, VA. — Alimentation Couche-Tard Inc., based in Laval, Quebec, Canada, has signed a deal agreed to acquire ExxonMobil's On the Run convenience store franchise system in the United States as well as 43 company-owned and -operated ExxonMobil sites in the Phoenix, AZ., area. The price for the transaction was not disclosed.
The On the Run convenience stores include approximately 450 sites currently operated by ExxonMobil branded fuel dealers and distributors in 28 states, primarily east of the Mississippi River. Couche-Tard says the stations will continue to be operated by the existing franchisee dealers and distributors of ExxonMobil.
In Arizona, Couche-Tard will acquire the land and buildings for 33 Phoenix area locations owned by ExxonMobil, and will assume or enter into leases for the remaining 10 locations. The Phoenix sites will be converted to the Circle K brand, which is already owned by Couche-Tard, and will offer Circle K branded fuel.
"The Phoenix sites are highly visible, located on well-traveled roads, and occupy prime locations within their respective trade areas," stated Geoff Haxel, Couche-Tard's vice president of operations for Arizona. "Strategically, this acquisition is an excellent fit with our network and complements our expansion and growth plans for the Arizona Division."
The transaction was expected to close in late May and subject to regulatory approvals.
SACRAMENTO, CA. — A coalition of 11 organizations, including the California Independent Oil Marketers Association, has filed a lawsuit against the California Air Resources Board (CARB).
The suit changes that CARB has failed to comply with Public Records Act requests for a full accounting of the millions of dollars spent on staff and expenses that have resulted from two years of administering AB 32, California's Global Warming Solutions Act.
"The law allows CARB to impose regulatory fees under AB 32, but at the same time they must account for the staff salaries, travel, consultants and other expenses accrued to implement this law," said Dorothy Rothrock vice-president of the California Manufacturers & Technology Association. "It's too bad that the agency didn't supply this information, and we need to litigate to obtain it."
The lawsuit is asking CARB to comply with the law and release essential information regarding development of costs estimates it is using to determine the fee basis. These requests came as a result of CARB's AB 32 proposed Administrative Fee regulation which proposes back fees of $56 million to pay for the first two years of implementing AB 32 and a projected $39 million a year in the future. CARB officials have said they expect these fees to be passed on to energy consumers in the form of higher prices.
"It is unfortunate when businesses have to sue government to find out what they want to spend," said Jay McKeeman, government relations director for CIOMA. "This is a country based upon freedom of information. CARB does not believe it is part of this country. So we had to sue."
This is the first lawsuit to be brought against the California Air Resources Board (CARB) associated with AB 32 (Global Warming Solutions Act).
The plaintiffs in the lawsuit include: California Business Properties Association, California Chamber of Commerce, California Independent Oil Marketers Association, California League of Food Processors, California Manufacturers & Technology Association, California Small Business Alliance, California Taxpayers' Association, Howard Jarvis Taxpayers Association, National Federation of Independent Business-California, The California Black Chamber of Commerce, and the Western States Petroleum Association.
ALBUQUERQUE, NM. — The Albuquerque-Bernalillo County Air Quality Control Board in New Mexico has reversed its own requirement, repealing a rule that would have mandated separate fuel economy standards at the local level.
Bernalillo County had attempted to impose a fuel economy rule that would have made the city of Albuquerque and surrounding Bernalillo County the only U.S. city/county to have fuel economy regulated at three levels: national, state and county. Automakers would have been forced to meet fuel economy standards at a county-by-county level and it was predicted that this would lead to shortages in the marketplace, closures of auto dealerships within the county and difficulties enforcing the law as drivers would simply travel to other counties inside the state to purchase their vehicles.
"The Albuquerque case illustrates how easily the 'patchwork' approach to fuel economy can get out of hand," said John McEleney, chairman of the National Automobile Dealers Association, part of the coalition that had opposed the regulation. "If it weren't for litigation filed by New Mexico dealers and NADA, the city of Albuquerque would still be pressing forward.
"What the county has done is meaningful; it shows that the Albuquerque-Bernalillo County Air Quality Control Board recognizes that the patchwork approach to fuel economy is the wrong way to go," McEleney added.
"With new national fuel economy standards expected to be finalized by the Obama Administration, complying with the additional state standards would create a regulatory patchwork that would undermine the national fuel economy program at a time when the auto industry needs regulatory certainty and stability," said Andy Koblenz, NADA vice president of legal and regulatory affairs. "Separate and apart from the stringency of standards set by the federal government or California, the establishment of 13 state-based fuel economy standards would cause irreparable harm to an already-struggling automobile industry," Koblenz added.
CUPERTINO, CA. — AE Biofuels, Inc., has signed a strategic agreement with Pearson Fuels to supply ethanol to the company's renewable fuels stations across the state of California.
Pearson Fuels built the first E85 fuel station in California six years ago in San Diego and has expanded statewide.
Under the terms of the deal, AE Biofuels will supply Pearson Fuels with cellulosic ethanol and other biofuels for distribution. AE Biofuels plans to begin supplying the ethanol to Pearson by the end of June.
"AE Biofuels will bring advanced biofuels to both our existing stations and the many we have under development," said Mike Lewis, owner and general manager of Pearson Fuels. "We have been saying for years that cellulosic ethanol will be the next big step for the biofuels industry, and this agreement will go a long way to make that goal a reality."
The two companies "will also utilize available government programs" to develop additional renewable fuels filling stations in the state.
Under the Renewable Fuels Standard (RFS) of the Energy Independence and Security Act of 2007, 100 million gallons of cellulosic ethanol use is mandated in 2010, increasing to 1 billion gallons per year by 2013.
"Ethanol from non-food sources will expand rapidly as new mandates take effect in the next year. We are pleased to be working with Pearson Fuels to supply E85 stations throughout California with next generation, clean, renewable fuel," said Eric McAfee, chairman and CEO of AE Biofuels.
AE Biofuels will get its products from the company's ethanol plant in Butte, MT., as well as its 50 million gallon per year biofuels plant in Kakinada, India.
WASHINGTON, DC. — The United States Supreme Court has ruled that Shell Oil Company cannot be held responsible for cleanup of a contaminated site simply because it delivered chemicals to the site.
The ruling, handed down at the beginning of May, may help eliminate some of the "deep pockets" lawsuits that are filed against oil companies.
Many industry firms have been sued in years past simply for delivering gasoline or chemicals to their customers. Years after the delivery, when environmental damage is discovered, the company who made the spill may not be able to pay for the cleanup, so everyone associated with the business — including the fuel and chemical suppliers, including small jobbers — has had to pay for legal defense against a crime they did not commit, simply because attorneys were looking for cleanup money.
In the suit that was brought to the Supreme Court, Shell Oil Company was named the responsible party for cleanup at a Superfund contaminated site in Arvin, CA. The original owner of the site was no longer in business, so Shell had been handed the bill for the cleanup because they delivered chemicals to the site.
The Supreme Court ruled 8-1 that Shell was not liable for the Superfund cleanup.
KENT, WA. — PetroCard, based here, has opened a "Clean N' Green Fuel" compressed natural gas (CNG) fueling station in South Seattle, the first public-access CNG facility in the city.
The station, which opened in the beginning of May, was built in conjunction with Waste Management, which fuels 108 of of its truck fleet on CNG.
The Clean N' Green Fuel station will be open 24/7 to sell CNG to private drivers as well as business fleets. Current pricing at the station is in the range of $1.70-$1.80/Gasoline Gallon Equivalents and it will accept credit cards and PetroCard Fleet cards.
"CNG is an environmentally friendly, alternative fuel that is ready and available today," said Steve Tolton, CEO of PetroCard. "Our partnership with Waste Management has made it more convenient for fleets and consumers with CNG vehicles to reduce emissions and save money."
"This station is an important step to increase access to CNG, ultimately moving us towards a cleaner and healthier environment for residents of the Puget Sound area, "said Dennis McLerran, Executive Director of the Puget Sound Clean Air Agency.
If the venture is successful, PetroCard and Waste Management say they "may look to replicate the joint venture in other parts of the region."
In addition to the "Clean N' Green fuel" station, PetroCard operates 66 cardlocks: 30 sites in Washington area and 36 sites in Oregon.
Originally published in the June 2009 issue of O&A Marketing News.
Copyright 2009 by KAL Publications Inc.
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