NACS Works with Colorado Retailers to Deliver Capitol Christmas Tree
FJ Managment to Acquire Maverik
Jaco Oil to Pay $400,000 in WRCB Settlement
Sinclair to Pay $14 Million in Wyoming Refinery Fines

NACS WORKS WITH COLORADO RETAILERS TO DELIVER CAPITOL CHRISTMAS TREE

ALEXANDRIA, VA. — As a way to draw attention to both Colorado convenience stores and the issue of interchange fees, the National Association of Convenience Stores served as lead sponsor of the 2012 Capitol Christmas Tree.

The 2012 tree, a 73 foot tall Engelmann Spruce, was harvested from the White River National Forest in early November. The tree was then transported to the town of Meeker "for a kick off celebration," and then wrapped for its journey. It spent several weeks on the road visiting communities and military bases across the country before arriving at the Capitol shortly after Thanksgiving where it will be trimmed and lit throughout the holiday season.

As part of the delivery of the tree, NACS and its members are donating the fuel and refreshments for the caravan as it travels on its 21-day trip from Colorado to Washington, D.C. At its eight stops in Colorado, the tree and its caravan stopped at eight different NACS member stations where vehicles were fuels and participants were also treated to food, beverages, and "other treats."

NACS reported that it is "paying for all of the fuel and has asked stores to submit invoices directly to avoid incurring debit or credit swipe fees. U.S. convenience stores paid $11.1 billion in credit card fees last year, of which the vast majority were swipe fees."

The Colorado stations participating in the Capitol Christmas Tree program were: Go-Fer Foods, 812 Market Street, Meeker; Kum & Go, 80 Anglers Spring, Steamboat Springs; Western Petroleum, 23 Mel Ray Road, Glenwood Springs; Maverik, 2948 F Road, Grand Junction; Brennan Oil, 1220 Carbon Junction, Durango, CO.; Kum & Go, 1206 Interquest Parkway, Colorado Springs; Agfinity Country Store, 1607 2nd Avenue, Greeley; and Love's, 308 E. 1st Street, La Junta.

"Convenience stores are America's fueling station, and who better to provide the fuel for the caravan than America's convenience stores?" asked NACS President and CEO Henry Armour.

FJ MANAGEMENT TO ACQUIRE MAVERIK

NORTH SALT LAKE CITY, UT. — FJ Management Inc. (FJM), formerly known as Flying J, has announced plans to acquire a majority interest in Maverik Inc., based here.

Following the acquisition, FJM and Maverik will continue to operate independently with their current management teams.

Maverik currently operates approximately 250 gasoline stations and convenience stores in Utah, Colorado, Wyoming, Montana, Idaho, Washington, Oregon, Nevada, Arizona, and Nebraska and had recently announced plans for continued expansion in the Las Vegas, Denver, and Spokane markets as well as "scouting" for locations in North Dakota. The company employs 3,700 "adventure guides," fitting their staff with the company's outdoor adventure image, and has been called the largest independent fuel marketer in the Intermountain West territory.

"Maverik will continue to aggressively market its high-energy Adventure's First Stop brand that has created millions of raving fans," said Mike Call, Maverik's CEO, announcing the deal in October.

The deal will "reunite" two branches of the Call family, which has been involved in petroleum marketing in the West for over 50 years. Maverik was founded by Reuel Call in Afton, WY., in 1928. Reuel and his brother, Osborne Call, later formed a partnership to market fuel in the West. This partnership lasted over a decade until Reuel purchased Osborne's share in the business in the early 1960s. Jay Call, Osborne's son, then founded Flying J Inc.

Following the acquisition, Mike Call will continue to serve as CEO of Maverik and Brad Call will continue to serve as executive vice president of the company. Both are grandsons of Reuel Call. On the FJ Management side, Crystal Call Maggelet will continue to serve as CEO of the company; she is Jay Call's daughter.

The deal, which is estimated at "several hundred million," was put together to leverage some of the value of the company for the family members who are not involved in the operations of Maverik. "It is an opportunity for some of the Call family who aren't in the day-to-day [operation of the business] to cash out their share of the equity," Brad Call explained to local reporters.

"We are very excited to be back in the convenience store business, especially partnering with an industry leader like Maverik," stated Crystal Maggelet. "FJM and Maverik remain committed to all our current customers, suppliers and employees, and look forward to this adventure together."

The deal is expected to close in December.

JACO OIL TO PAY $400,000 IN WRCB SETTLEMENT

BAKERSFIELD, CA. — Jaco Oil, based here, has agreed to pay $400,000 to the California State Water Resources Control Board for monitoring and testing violations linked with 14 of the underground storage tanks at their company-operated gasoline stations.

According to the Water Board, their investigators as well as environmental health inspectors from Kern, Merced and San Luis Obispo Counties "documented UST monitoring, testing and construction violations at Jaco Oil facilities over the last several years."

Among the violations listed by the Water Board were failure to perform tank lining inspections; failure to maintain a functional cathodic protection system; failure to perform annual monitoring certifications; and failure to perform secondary containment testing.

The Water Board named Jaco Oil Company and its related entities including Fastrip Food Stores, Inc.; Fastrip Oil Company, LP; Basic Properties, LP; Jaco Hill Company; and Jamieson Hill Company for the UST monitoring and testing violations at the 14 stations.

Jaco Oil owns and/or operates approximately 100 service stations in Central California.

As part of the settlement, Jaco Oil agreed to pay $325,000 to the State Water Board in civil penalties and $75,000 for investigative and enforcement costs. Jaco also agreed to train its employees, perform monthly inspections, complete cathodic protection testing every three years, install under dispenser containment and make improvements to secondary containment, underground piping, overfill prevention systems and tank monitoring systems at its stations.

Jaco Oil did not admit to any wrongdoing as part of the settlement of the case.

"We're pleased with the outcome of this case and remain committed to taking enforcement actions against UST owners and operators who fail to comply with the law," said Cris Carrigan, director of the State Water Board's Office of Enforcement, in an official statement. "Our goal is the protection of water quality, and the tank laws must be followed in order to prevent releases of hazardous substances to the environment."

SINCLAIR TO PAY $14 MILLION IN WYOMING REFINERY FINES

EVANSVILLE, WY. — Sinclair Oil Corporation has agreed to pay $3.8 million in fines and spend an additional $10.5 million for pollution-control equipment at its Wyoming refineries.

The $14.3 million payments will settle charges levied by the U.S. Environmental Protection Agency that the refineries exceeded air pollution limits in their Sinclair and Evansville refineries.

The settlement stems from charges that Sinclair failed to meet the terms of a 2008 consent decree reached with the EPA and the U.S. Justice Department after the oil company was accused of exceeding nitrogen oxide emissions limits.

In addition to the fines, Sinclair agreed to install a selective catalytic reduction system to control nitrogen oxide emissions and upgrade the flare gas recovery system to meet sulfur dioxide emissions limits.

Originally published in the December 2012 issue of O&A Marketing News.
Copyright 2012 by KAL Publications Inc.