Haycock Petroleum Sold To Texas Jobber
Sinclair Finishing Sale Of Company-Op Stations
Western Refining To Shutter New Mexico Refinery
Atlas Oil Opens Rail Fuel Transfer Terminal
Flying J To Sell Utah Refinery
Car Wash Sting Brings $1 Million In Fines

HAYCOCK PETROLEUM SOLD TO TEXAS JOBBER

LAS VEGAS, NV. — Haycock Petroleum, a fixture in the Western petroleum industry for many years, has been acquired by C.L. Thomas Inc. of Victoria, TX. The purchase price for the deal was not disclosed.

Included in the deal were the operating assets of Haycock Petroleum including its 16 warehouse and bulk plant facilities, its cardlock operations in Utah, Nevada, Idaho, and California, and its affiliated companies, Bowen Petroleum Company, Petro Express, Inc. and Bowen Trucking, Inc., all based in Salt Lake City, UT.

Haycock will operate as the Western Division of Thomas Petroleum (Thomas West) and will continue to market and operate under its current trade names: Haycock Petroleum, Jardine Petroleum, Bowen Petroleum, Eastern Sierra Oil and Castle Country Oil.

The company says that the entire management team of Haycock, including its president, Steve Moore, will continue in their current roles following the acquisition by Thomas Petroleum.

"The Haycock acquisition is very strategic as it expands our territory into key markets in the Western United States, positioning us to become the leading independent petroleum marketer in the United States," said Cliff Thomas, C. L. Thomas' founder and CEO, announcing the deal.

Prior to the acquisition of Haycock, C.L. Thomas sold and supplied fuel from 12 bulk plants in Texas, New Mexico, Louisiana, and Arkansas as well as operating 104 c-stores in Texas under the retail brand Speedy Stop. Both companies market petroleum products under the Chevron brand.

"We are excited to be a part of the Thomas organization" noted Steve Moore, serving as the new president of Thomas West.

SINCLAIR FINISHING SALE OF COMPANY-OP STATIONS

SALT LAKE CITY, UT. — Sinclair Marketing Company has announced that it has its last block of company operated service stations on the market.

Earlier in the year, Sinclair announced plans to sell its company-owned retail service stations. Approximately 90 stations were included in the sale in the territory of Colorado, Utah, Montana, Oklahoma, Nebraska, and Minnesota. According to the company, approximately 2/3 of the stations have already been divested.

"We have already sold approximately 60 locations to and through our jobber network, and this current offering aligns us with our company goal to get out of the retail business entirely by early next year," Bud Blackmore, senior vice president of marketing and supply for Sinclair Oil, said in an offical statement.

Of the remaining stations, 26 will be offered with real estate. The stations are being offered with a 10-year Sinclair branding and fuel supply agreement; without supply; or for alternative use with a petroleum deed restriction.

The company said that the sale will not affect the 2,700 Sinclair-branded service stations currently 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.

WESTERN REFINING TO SHUTTER NEW MEXICO REFINERY

EL PASO, TX. —Western Refining has announced that it will close its refinery in Bloomfield, NM., in a move to cut costs.

The refinery had been producing 16,800-b/d of petroleum products; Western officials say they are "evaluating other uses" for the refinery site, including possible production of biofuels in the facility. In the meantime, Western Refining will consolidate its operations into its Gallup, NM., refinery.

Western will continue to operate the terminal at Bloomfield which supplies the local jobber market. The company also said it will supply the Four Corners area with fuel from new pipeline and exchange supply agreements.

Western officials predict the move will save the company $25 million annually.

Western Chief Executive Paul Foster stated that the decision was "difficult but necessary" to position the company amid "weak industry dynamics." He said the Bloomfield employees will be treated "fairly and with respect."

ATLAS OIL OPENS RAIL FUEL TRANSFER TERMINAL

ALBUQUERQUE, NM. — Atlas Oil Co. has opened a new rail fuel transfer terminal here at the BNSF Railway yard. The new terminal is capable of handling nine rail tankers for offloading ethanol.

Atlas officials say they already have a contract to provide ethanol and transportation services from the terminal with a major oil company who had been trucking ethanol into New Mexico from Texas.

"Atlas is very happy to be able to help meet New Mexico's green fuel blending requirements," said Mike Evans, executive vice president, Business Development, Atlas Oil Co., announcing the opening of the terminal.

"Working with our customers, BNSF and the City of Albuquerque, to get this project completed in such a short period of time really highlights everyone's commitment to being both environmentally friendly and economically sensitive to the needs of consumers," Evans continued.

Atlas Oil officials say they plan to build or acquire 10-15 additional ethanol transloading facilities over the next several years.

FLYING J TO SELL UTAH REFINERY

OGDEN, UT. — Flying J Inc. has put its North Salt Lake City refinery on the market as part of the company's plan to emerge from Chapter 11 bankruptcy.

The Flying J refinery has a capacity of 30,000 barrels per day. It is one of five refineries operating in Utah and supplies fuel to Utah and the Rocky Mountain states.

"Listing our North Salt Lake refinery for sale is one of many avenues we are pursuing in an effort to emerge from bankruptcy," stated Virginia Parker, Flying J's director of marketing.

Utah Petroleum Association President Lee Peacock told the Salt Lake Tribune that believes Flying J will be able to sell the refinery quickly. "There is a need for the products that refinery produces," he said. "And with demand [for gasoline] growing in the [Salt Lake] valley and the state, in all likelihood someone will continue to operate it."

Flying J filed for reorganization under Chapter 11 provisions of the U.S. Bankruptcy Code on Dec. 22, 2008. As part of its reorganization it has sold its Longhorn pipeline in Texas and announced a deal to merge with Pilot Travel Centers. The company's refinery in Bakersfield, CA., is on the block and Parker said "the sale of the Bakersfield refinery is progressing."

The sale of the Salt Lake City refinery is not expected to close until 2010 at the earliest.

CAR WASH STING BRINGS $1 MILLION IN FINES

SACRAMENTO, CA. — The state of California has begun enforcement sweeps of the state's Car Washing and Polishing Registration law, collecting almost $1 million in fines.

Under the terms of the law, anyone owning a car wash or detailing business — including mobile carwashes and detailers — in the State of California that has labor for more than just maintenance and cashiering, must register with the State of California's Department of Industrial Relations (DIR). Failure to pay the $300 to register, and renew annually, will result in a $10,000 fine.

According to the California Labor Commissioner's Office, the Department of Industrial Relations held a two-day "statewide enforcement sweep" at the end of October. In the sweep, 42 investigators inspected 230 car wash businesses and issued 141 citations against 103 car wash businesses. Citations issued totaled $916,711 of which $600,900 came from 76 car wash businesses cited for not registering with the state.

Investigators found 49 businesses that failed to provide workers' compensation coverage for their employees. Citations issued totaled $240,000 and businesses without workers' compensation coverage were issued stop work orders, which prevents them from operating with employee labor. Other violations cited included 12 cases where the employer did not provide a wage deduction statement as well as improper payment of minimum wage, improper payment of overtime, and hiring minors without work permits on file.

"Requiring carwash businesses to register with the state allows us to focus on those businesses that undercut their competition, which makes it difficult for legitimate carwash businesses to stay in operation," said California Labor Commissioner Angela Bradstreet. "As part of the underground economy, these illegal businesses often do not pay state taxes, and take advantage of employees by not providing workers' compensation coverage or paying proper wages."

The state is also asking the public to turn in carwashes and detailers that they believe have more than one employee and contact the Department of Labor Standards Enforcement for investigation.

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