ExxonMobil Restarts Torrance Refinery
Maverik Expanding in Idaho
Chevron to Sell Hawaiian Assets to Island Energy
Billings Station Robbed with Pellet Gun
Bridgestone and Shell Lubricants Launch U.S. Partnership

EXXONMOBIL RESTARTS TORRANCE REFINERY

TORRANCE, CA. — Over a year after a explosion halted operations at the ExxonMobil refinery here, the major oil company was given permission to restart the facility — and the refinery resumed operation on Tuesday, May 10.

ExxonMobil officials had completed both repairs and an investigation as to the cause of the explosion last year but had been denied a permit to restart by the South Coast Air Quality Management District. After several months of hearings, the SCAQMD agreed in April to allow the company to restart the refinery — if it agreed to conditions to reduce potential emissions from the restart and paid a $5 million fine. The SCAQMD limited production to 100,000 barrels a day to minimize emissions during the startup. ExxonMobil agreed to the terms and was issued the permit.

With the permit in place, an environmental group, The Refinery Safety Network, filed suit in Los Angeles Superior Court to halt the restart of the refinery and to prevent the refinery from any future operations. The RSN sited health and safety reasons as grounds for keeping the refinery shuttered.

At the end of April, Los Angeles Superior Court Judge Mary Strobel ruled that the public interest would be best served by allowing gasoline production to resume and allowed the restart to proceed.

With no production coming from the Torrance refinery, the accident led to an immediate fuel price spike that continued as the refinery was under repair. Gasoline prices in the Los Angeles region rose up to $1.50 above the national average last year. Economists estimated that the refinery shutdown cost Californians over $3 billion from increased fuel costs during the first six months alone.

In addition, the loss of capacity brought supply issues across the West; the ExxonMobil Torrance refinery was responsible for 10% of California's refined gasoline capacity and 20% of the capacity in Southern California.

In her ruling, Strobel wrote that the court was "mindful of the reasonable concerns of the residents that any excess emissions be avoided" but said "economic impacts of continued closure, while not overweighing safety concerns, may be considered and would be significant."

ExxonMobil estimated it had been losing up to $1.5 million a day while the refinery was shut down and 1,200 workers could be laid off if it remained offline. In addition, the planned sale of the refinery to PBF Energy will not go through until the Torrance refinery is "restored to full working order."

According to ExxonMobil officials, the startup went well and at no time did air quality levels during the start-up exceed federal or state health standards.

With the refinery now up and running, the $537.5 million deal to sell the refinery — and its associated terminals in Vernon and Atwood, CA., lubricants distribution center, and pipelines — to PBF Energy is expected to be completed before the end of the year.

MAVERIK EXPANDING IN IDAHO

NORTH SALT LAKE CITY, UT. — Maverik Inc. has announced plans to expand and upgrade its operations in the state of Idaho. The company estimates it will invest "up to $50 million" in the state within the next few years.

In Boise, Maverik has plans to close three existing locations but will build two new stores as well as remodel one of its locations.

The new Boise stores will be located at the corner of Cole Road and Fairview Avenue and at the corner of Franklin Road and Orchard Street. Both are slated to open next year.

Maverik also plans to build new convenience stores in Meridian and Nampa, ID. The Meridian station will be located at Locust Grove and Fairview Avenue and is scheduled to open in late 2016 or early 2017. The Nampa site, located at the corner of Nampa Boulevard and Shannon Drive, is expected to be open later this year.

The locations at 5200 Chinden Blvd., 1909 W. Boise Ave. and 9030 W. Franklin Road are the stores slated for closure in Boise. The company said they will provide "employment opportunities within the company" to the staff at the stores that will be closing.

Maverik officials also told local reporters that they were "actively looking for additional sites throughout the Treasure Valley on which to locate future Maverik stores."

Maverik currently operates more than 275 convenience stores in 10 Western states.

CHEVRON TO SELL HAWAIIAN ASSETS TO ISLAND ENERGY

HONOLULU, HI — Chevron Corporation has announced it will sell its Hawaiian assets to Island Energy Services. The price for the purchase, which was expected to close before the end of the year, was not disclosed.

Island Energy Services is a newly created division of the investment company One Rock Capital Partners, based in New York. When the purchase is completed, officials say they will open offices in Hawaii to run their new business.

Included in the sale are Chevron's 58 convenience stores and gasoline stations on the Hawaiian islands, the 58,000-barrel-per-day refinery in Kapolei, terminals on the islands of Oahu, Maui, Kauai and Hawaii, associated pipeline systems and "other downstream assets."

According to local reports, the convenience stores will be rebranded to Texaco. Consumers will also be able to use their existing Chevron credit cards at the gasoline stations and their Safeway-Chevron loyalty programs will be converted to Safeway-Texaco.

The approximately 300 Chevron employees who are working on the Hawaiian Islands are expected to receive offers from Island Energy Services to continue in their positions.

"One Rock plans to build on the successful and solid foundation that Chevron has developed over the years and will work to create a standalone business, focused solely on Hawaii," stated the investment company, announcing the deal.

Chevron leaving the state will end a business tradition of over 125 years of operations in the Hawaiian Islands.

BILLINGS STATION ROBBED WITH PELLET GUN

BILLINGS, MT. — The Zip-Trip, located by the intersection of Shiloh Road and Central Avenue here, was robbed by a man carrying a rifle.

A man entered the store displaying a rifle around 5:00 a.m. demanding money. The clerk complied and the thief escaped on foot.

The robber was described as a white man in his thirties, about 6 feet tall and thin. He was wearing a hoodie, blue jeans and a baseball cap and his face was covered with a grey bandanna.

Upon investigation, police discovered the rifle used in the crime was a pellet gun. The thief is currently at large.

BRIDGESTONE AND SHELL LUBRICANTS LAUNCH U.S. PARTNERSHIP

NASHVILLE, TN. — Shell has launched a new program with Bridgestone Americas that places Shell lubricant products at Bridgestone retailers across the United States.

The program makes the entire Shell lubricants line — including Pennzoil, Quaker State, and Shell Rotella motor oils — available to the Bridgestone Affiliated Retailer Nationwide Network.

Retailers who participate in the program will have "exclusive access to the program's benefits including competitive pricing, digital training resources, point-of-purchase (POP) marketing materials, traffic-driving promotions, comprehensive oil selector tool and more," according to Bridgestone officials.

"Shell Lubricants designed the custom Lubricants Program exclusively for Bridgestone affiliated retailers across the country to provide consumers with quality branded motor oil at competitive pricing," said Rusty Barron, vice president of marketing for Shell Lubricants, announcing the deal.

Originally published in the June 2016 issue of O&A Marketing News.
Copyright 2016 by KAL Publications Inc.