Chevron May Close Hawaii Refinery
Flying J To Merge Truck Stop Operations With Pilot
Sinclair To Sell Company-Op Stations
Hawaii Gets $1 Million For UST Cleanup From EPA

CHEVRON MAY CLOSE HAWAII REFINERY

HONOLULU, HI. — Chevron has announced that they may close their 54,000-b/d refinery in Honolulu, Hawaii, but told workers that they will continue to supply to fuel to the Hawaiian Islands.

In an official statement, Chevron spokesman Lloyd Avram said that "Chevron is conducting an internal study to assess operations for its refinery in Hawaii." He added, "We are undertaking the study because the refining industry continues to undergo significant changes driven by a variety of factors, including regulations and global market trends."

Among the possibilities being considered for the property are shuttering the refinery and using the land for a refined products terminal.

There are two refineries currently operating in the Hawaiian Islands: the Chevron refinery and the 93,500 bpd Tesoro Refinery in Kapolei, HI. Both refineries make fuel for motorists as well as jet fuel for airline and military operations based in Hawaii.

FLYING J TO MERGE TRUCK STOP OPERATIONS WITH PILOT

OGDEN, UT. — As part of its efforts to emerge from bankruptcy, Flying J Inc. has announced that it plans to merge its truck stop operations with Pilot Travel Centers LLC.

Under the terms of the Letter of Intent filed in July with the U.S. Bankruptcy Court in Delaware, after the truck stop facilities merger all Flying J creditor obligations would be paid in full. Pilot has also agreed to provide $100 million in Debtor-in-Possession financing for Flying J's operations.

The merger was approved by a bankruptcy court at the beginning of August.

Not included in the merger deal are Flying J's other assets which include the Longhorn Pipeline, Big West Oil, Flying J Oil & Gas, Haycock Petroleum, and Transportation Alliance Bank.

"After a careful and exhaustive review of the alternatives available, we have concluded that a merger with Pilot represents the best possible outcome for Flying J, our creditors, our customers, and our employees," said Crystal Call Maggelet, chairman of the board of Flying J. "Over the next few months, we will negotiate definitive agreements to merge our companies. This transaction will allow us to emerge from the bankruptcy process relatively quickly thereafter and to start a new chapter in the Flying J story."

According to the companies, the Flying J brand will be kept on the company's existing travel centers following the merger. In addition, Pilot has agreed to accept Flying J's TCH (Transportation Clearing House) fuel cards at its Pilot-branded locations.

Jimmy Haslam, CEO of Pilot, said, "We believe that by combining Flying J and Pilot we will better serve our customers by more efficiently providing them with the products and services they need. We look forward to working closely with Flying J and its employees during the Chapter 11 emergence process, and as we take the next steps of a new beginning for both of our companies."

SINCLAIR TO SELL COMPANY-OP STATIONS

SALT LAKE CITY, UT. — Sinclair Marketing Company has announced that it plans to sell its company-owned retail service stations. Approximately 90 stations will be included in the sale in the territory of Colorado, Utah, Oklahoma, Nebraska, and Minnesota.

The company said that the sale will not affect the 2,700 Sinclair-branded service stations owned and operated by independent marketers.

Sinclair plans to continue its wholesale refining and fuel distribution services to the industry.

"This action will enable Sinclair to concentrate its downstream efforts on refining, distribution and wholesale marketing activities," said Sinclair officials in a statement.

HAWAII GETS $1 MILLION FOR UST CLEANUP FROM EPA

HONOLULU, HI. — The Environmental Protection Agency has awarded the state of Hawaii over $1 million to assess and clean up leaks from underground storage tanks on the islands.

The funds are part of $197 million appropriated under the American Recovery and Reinvestment Act of 2009 that have been earmarked to assist cleanup at "shovel-ready sites" that have been contaminated by petroleum from leaking USTs.

EPA Administrator Lisa Jackson said the agency awarded the money to Hawaii to try and stem seepage into soil and groundwater from the contaminated sites.

Originally published in the September 2009 issue of O&A Marketing News.
Copyright 2009 by KAL Publications Inc.