m darandum m darandum - Maine Energy Marketers Association

Volume 1, Issue 2. July, 2004
The
M DARANDUM
INDUSTRY NEWS FOR MAINE’S PETROLEUM MARKETERS
MODA 50th ANNIVERSARY
CONVENTION HUGE SUCCESS
AUGUSTA WATCH
SUMMER TIDBITS
If you missed the recent 50th Anniversary Convention at the Samoset Resort from
June 20 through June 23, you missed a lot. Over 350 people attended the event
making it MODA’s biggest and best convention ever.
Former Maine Oil Dealers Association Board of Directors
The 3 day, 3 night event was kicked off by a board meeting, a welcome reception,
cocktail hour, a New England style Lobster bake topped off with entertainment by
Live Bait, a Jimmy Buffet tribute band that came to us from Florida. A great display
of fireworks followed. It was a beautiful night at the ocean, especially with the
added touch of Dale McBurnie in his grass skirt.
Here are some tidbits from the legislative
scene:
• Speaker of the House and Senate
candidate Pat Colwell (D-Gardiner) has
resigned as a legislative candidate citing his
separation from his wife. Democrats in the
Gardiner/Hallowell area are scrambling
to find a replacement. The Republican
candidate is Doug Newman, who ran for
the same seat two years ago. Doug is
the owner of Newman Concrete and
well known in the construction-building
industry.
• Got to feel sorry for Les Fossel,
Republican candidate for the senate in
the Lincoln County-midcoast area. Two
(continued on page 2)
Monday’s weather was picture perfect as the golf tournament took place.
Approximately 90 players participated in the tournament. The winners were as follows:
• The low gross team with a score of 59 was: Andy Panaskovic, Dennis
Dillon, John Ware Jr., Steve Morris
• The low net team with a score of 53 was: John Carroll, Jim Carroll, Sean
Carroll, Kristan Carroll
Also during the day, kids were entertained by Northern Sky Toyz in a kite making
session. Trolley Tours took our folks to the State of Maine Cheese Company,
the Owl’s Head Museum, the Prison Showroom, and toured the City of
Rockland. Wine tasting was a big hit, followed by Swing Dance lessons.
Dinner that evening was “Dinner Around the World”, which was a buffet hosting
a variety of foods from different nationalities. Our dinner speaker was Betsi
Leuth Bixby who talked about Industry Trends. Entertainment that evening
(continued on page 2)
CONTENTS
• MODA 50th Convention - Page 1
• Augusta Watch - Page 1
• National News - Page 3
• Oil & Solid Fuel Board News - Page 3
• New Driver Training Regulations - Page 4
• Petroleum Taxes Up...Fee Down - Page 4
• New PAC Contributions - Page 5
• EPA Sued - Page 6
• New DOL Overtime Rule - Page 6
• U.S. Petroleum Marketing Briefs - Page 6
• First Class at MODA Tec Filling Up - Page 6
• The SpiritTM Brand (A New Option) - Page 7
• MODA Calendar - Back Page
1-888-863-3753 / Fax 207-721-9227 / Email: jamie@meoil.com / www.meoil.com
• MODA Ed Classes - Back Page
MODA 50th CONVENTION (continued)
AUGUSTA WATCH
(continued)
was provided by North Country Comedians and Greg Powers
Entertainment. Ask John Ware about his Hawaiian shirt and Dan
Vaillancourt about, well never mind.
Betsi Leuth Bixby did two educational programs for us on Tuesday. The
first being “Get Efficient or Get Out” and the second being “Create
Company Value”. A seminar on “Ultra Low Sulfur Diesel” was presented by
Steve Levy of Sprague Energy and Paul Nazzaro from Advanced Fuel
Solutions and the National Bio Diesel Board who spoke on “Bio Diesel and
Bio Heat”. All programs were well attended!
The antique oil museum was a great hit! Special thanks to Giroux Oil, P.G.
Willey, Webber Energy, Maritime Energy, Sprague, Downeast Energy,
Dead River Co., Yerxa’s, Bickford Transportation and Scully Signal for
providing trucks and equipment for the display.
Tuesday evening was our big gala event. Just under 30 former board
members and their spouses joined us as we welcomed them into the
MODA Hall of Fame. Allen Mapes gave a talk about the past and showed
us how to diaper a doll with a napkin. Dick Morrell spoke about the future.
A former MODA President, Bob Flynn recapped his days when MOHEDA
turned to MODA and the oil embargo took place. Gerry Wallace gave his
departure speech and we welcomed and listened to MODA’s new
Chairman John Peters of Downeast Energy. MODA’s President Jamie Py
presented longevity awards to those companies who have been members
of MODA for 10 plus years. A special congrats to Butler, Maxcy and Heath,
Consumers Fuel, Dead River, Downeast Energy, H.A. Mapes, Hacker
Industries, Robbins Brothers Fuel, Wadleigh’s, and Webber Energy for
being with the association for 50 years! Also, special thank you’s were
given out to Bob Leavitt for his leadership with the golf tournaments, Mike
Estes for his dedication in getting the MODA Lab construction underway
and to Jim Pike for his loyalty to the Education Committee.
Jim Pike
Bob Leavitt
Dick Morrell
Don Worcester
John Peters
Traditions of the past were brought back to this convention, thanks to the
input and help of Allen Mapes and Dick Morrell. Tuxes were worn by MODA
Officers and Convention Chair, Don Worcester. The receiving line was reintroduced as well as the Marching in of the Officers to the Maine Stein song.
Everyone seemed to be pleased with bringing back these old customs.
Larry Pare
After a delicious dinner, Allen and Dick then called the following down to
be the first inducted to the MODA Hall of Famers: Brian Atkinson, Harley
Banks, Erving Bickford, John Carroll, Cuddy Cohen, Bob Cort, Sr., Lloyd
Emery, Richard Hawkins, John Holmes, Treby Johnson, Bob Lacasse,
Nelson Leavitt, Norton Luce, Dalen Mills, Colon Mills, Harvey Patry, Bob
Pellerin, Payson Perkins, Bill Richardson, Leo Robichaud, Arthur Sprowl
and Dick Tuttle. Each honoree had a picture displayed of them on the
Power Point when their name was called and a great time was had by all.
It will be hard for us to top this one!!!
2
Gerry &
Colleen
Wallace
years ago he ran against Chris Hall
(D-Bristol) and lost, but only after a
nasty recount process that entailed
court rulings and eventual rulings by
the senate itself. So Les ran again
this year, only to face a primary
opponent of Dana Dow. Dow and
Fossel are in a virtual dead-heat
and the recount by the Secretary of
State’s office hasn’t decided the race,
so it heads to court for rulings on some
disputed ballots. At press-time, the
court hasn’t ruled, so we still don’t
know the Republican candidate for
the midcoast area.
• House Majority Leader John
Richardson (D-Brunswick) is running
for the position of Speaker of the
House, but is facing opposition
within his own caucus from Ben
Dudley (D-Portland). Dudley is from
the more progressive/liberal end of
the party, whereas Richardson is
considered more moderate. There
is considerable frustration within
the House Democratic Caucus on
the issue of tax reform and the lack
of any resulting solutions.
• Some folks teased us when we
said that a special legislative session
is possible, especially to make sure
some bond questions make it to
the November ballot. Well, as we
go to press, the administration and
legislative leaders are starting to
negotiate on whether a bond package
can be agreed upon. It will take a
2/3 vote of the legislature to get any
bond question on the November
ballot. Early negotiations indicate
that some would like to see land
conservation, environmental funding
and transportation funding all be on
the ballot in November.
NATIONAL NEWS
U.S. EPA EXTENDS
DEADLINES FOR SPCC
PLANS
In July 2002 EPA issued regulations amending requirements for
Spill Prevention, Control and Countermeasure Plans (SPCC),
with some provisions affecting Facility Response Plans (FRPs).
Following adoption of the regulation, PMAA, API and others
regarding a number of the provisions sued U.S. EPA. EPA had
to extend to the provisions of the regulations once and is again
seeking to extend the compliance provisions. EPA has stated
that the extension is to provide sufficient time for the regulated
community to undertake the actions necessary to prepare and
update their plans.
The new proposed compliance dates are August 17, 2005, to
amend existing SPCC plans, and February 18, 2006, to
implement the Plan. Affected facilities that start operations
between August 16, 2002 and February 18, 2006 must prepare
and implement an SPCC Plan by February 18, 2006. Affected
facilities that become operational after February 18, 2006, must
prepare and implement an SPCC Plan before starting operations.
A link to the EPA notice of regulations and other materials may
be found at: www.epa.gov/oilspill.
As part of the settlement agreement, EPA issued a clarifying letter
to PMAA that covers issues such as:
• Integrity Testing for shop-built containers; and
• Security, regarding equivalent environmental
protection requirements for fencing and unattended
facilities.
Copies of the SPCC letter from EPA to PMAA can be found on
the EPA website noted above or by calling the MODA office at
729-5298.
What’s important is that everyone who needs to update their
SPCC plans should start now by contacting an engineer and
planning for any necessary changes, improvements or
upgrades.
MODA will be holding an educational program on SPCC
plans and AST requirements in early September. Watch
your MODARANDUM and the website for details.
OIL AND SOLID FUEL BOARD
REGS ADOPTED
The Oil and Solid Fuel Board have finalized regulations that were proposed back in February on June
6, 2004. The revisions include:
• Allowing a person completing a one-year heating
course at a Maine technical college consisting of 320
hours of study to sit for the journeyman examination
and receive a license without licensed work experience.
• Requires an applicant from another state applying
for a master oil license to provide proof of an
equivalent license from another state or jurisdiction.
The equivalent license must be for work performed
installing and/or servicing oil-burning equipment.
• Allows licensed manufactured housing dealers
and employees of dealers to be licensed by the
Board as a Limited Tank Installer to install outside
residential heating oil tanks at manufactured housing.
• Requires a licensed master to receive only one
year of indirect supervision prior to applying for a
master examination in a different license authority.
• Adopts the most recent editions of NFPA standards
for the installation of any oil and solid fuel burning
equipment, chimneys, fireplace and vents in Maine.
(The Board is proposing to adopt an exception to
NFPA #211, Section 3.3.2.8. by requiring that heating
space exceeding 25,000 cubic feet be provided
with a commercial grade chimney).
• Clarifies the requirements for the installation of oil
burning equipment and repeals 9-22, Primary
Safety Controls, Required Programming and
Timings for Burner(s), since these requirements are
covered in ASME CSD-1, adopted by the Board.
Copies of the revisions are available from Cheryl
Hersom, Board Administrator at (207) 624-8605.
EL BOARD NEWS
OIL AND SOLID FU
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3
NEW DRIVER TRAINING
REGULATIONS
The Federal Motor Carrier Safety
Administration (FMCSA) has issued new
rules for additional training for entry-level
operators of interstate commercial
motor vehicles (CMVs). The rules take
effect for new applicants on July 20,
2004. Current drivers with less than
one-year experience (those hired after
July 20, 2003), will also have to undergo
the additional training. These drivers will
have an additional 90-days to complete
the additional training or until October
18, 2004.
Petroleum TAXES UP ------ FEES DOWN
TAXES
By now, hopefully you all know that Maine’s motor fuel excise taxes
have gone up on July 1. This will be the second annual increase in the
fuel taxes since Maine enacted a law to index the tax rate to inflation.
Since we haven’t experienced any deflation, the fuel taxes keep rising
automatically.
Effective July 1, the increase is 0.6 cents per gallon, making the state
tax rates:
— Gasoline
0.252
— Diesel
0.263
— Jet Fuel
0.034
— Propane
0.183
— Methanol
0.143
— Ethanol
0.178
— CNG
0.218
The new rules require applicants for
commercial drivers licenses (CDLs) and
drivers with less than one-year experience
to
undergo
additional
training.
Employers may provide the training
themselves or use a third party to conduct
the training. The additional training is
expected to take 10 hours to complete.
Here are the thoughts of the Maine Motor Transport Association from its
June 16 Maine Line regarding the increased rates:
In general, the training should include:
“As one can see, the total tax (state and federal) represents more than
25% of the total price of the fuel, even as the average price nears $2.00
per gallon. The average retail price for diesel fuel in the New England
area is $1.81 per gallon. (This is as of 6-14-04, according to information
contained on the Energy Information Administration website). That is
15.8% higher than one year ago. During the past few weeks and/or
months there has been talk from certain public officials of gas companies
gouging. However, the diesel fuel tax in Maine is 14.3% higher over that
same time period and there is no such talk of governmental gouging.”
• Hours of service training covering the
new rules regarding limitations of driving
hours, record keeping requirements,
and fatigue countermeasures.
With the state of the Maine budget, unfortunately there’s not much hope
of changing the indexing law, so be ready for July 1, 2005.
FEES (For Now)
• Driver qualification requirements
including medical examination and
certification procedures, general qualifications, and disqualification.
• Driver wellness training such as general
wellness and the importance of avoiding
alcohol.
(continued on page 5)
4
DEP has issued a notification that the surcharge fees assessed for the
Groundwater Oil Clean-up Fund is suspended as of July 1, 2004. The
surcharge fees are assessed through rules established by the Fund
Insurance Review Board and must be suspended when the balance of
the Groundwater Fund reaches $7 million for three consecutive months.
The surcharge fees will be re-imposed when the Fund balance drops
below $5 million for one month.
(continued on page 5)
The revised fees for the Groundwater Fund as of July 1,
2004 are:
Gasoline
.38 cents/barrel or $0.009/gallon
#6, fuel oil
.04 cents/barrel or $0.00095/gallon
Other
.19 cents/barrel or $0.0045/gallon
There have been no changes to the fees assessed for the
Coastal and Inland Surface Water Fund. They remain at
$0.03 per barrel or $0.0007 per gallon.
Though there have been no changes to the Surface Fund
fees, DEP is considering changing the fee structure,
which might include increases to the Surface Fund fees.
The concept has been discussed with the Oil Spill
Advisory Committee, which concluded at its last meeting
that there is no need to seek an increase in or change to
the fee structure. We’re not sure whether DEP will follow
the conclusion of the Advisory Committee or will proceed
with proposed legislation next year to change the fee
structure of the Surface Fun.
Below is the new free Sticker from MODA for the
dispenser outlining the motor fuel taxes. Contact Brenda
for ordering:
For Your Information:
FUEL
MAINE’S MOTOR
-04*
TAXES GO UP 7-1
r/gallon:
Gasoline Taxes pe
25.2 cents
State:
18.4 cents
Federal:
0.9 cents
Enviro:
44.5 cents / gallon
Total Tax:
s per/gallon:
Diesel Fuel Taxe
26.3 cents
State:
24.4 cents
Federal:
0.5 cents
Enviro:
.2 cents / gallon
51
Total Tax:
ine
t every year Maine gasol
*State law requires tha
ally
atic
om
aut
se
rea
inc
and diesel fuel taxes
mer Price Index.
at the rate of the Consu
NEW DRIVER TRAINING
REGULATIONS
(continued)
• Whistleblower protection training encompassing the
laws regarding whistleblower protection and when it is
necessary to report an employer for misconduct.
Employers and drivers must keep certification that a driver has completed the new training during the duration of
employment and employers must keep it for an additional one-year thereafter. Certification that the driver completed the training must include the date of completion,
the name and mailing address of the trainers, a statement
that the driver has completed the course and the printed
name and signature of the person attesting to the training.
MODA will be sending out more information on these new
regulations, or you may go to the FMCSA website at:
www.fmcsa.dot.gov.
MODA Energy Pac
Contributions to date
Platinum $5,000
• C.N. Brown
• Dead River
Gold $1,000 – $4,999
• H.A. Mapes
• Downeast Energy
• M.W. Sewall
• R.H. Foster
• Union Oil
• A.E. Robinson Oil Co.
• Maritime Energy
Silver $500-$999
• J&S Oil
• Chapman Fuel
• Russ Williams Fuel
• Colby & Gale
• Murray Oil
• Wadleigh’s
• Lampron Energy
• Estes Oil Burner Service
• Augusta Fuel Co.
• Dodge Oil
• Maine Energy
• Waldo-Thompson Oil
Bronze $250-$499
• Clark’s Heating Oils
• Waldo County Oil &
Propane
• Pen-Bay Oil Co.
• Eaton Oil
• Morin Fuel
• Vessel Services
• Heutz Oil Co.
• Bryant Energy
• Champion Fuel
• Nice Fuel Company
Total Received: $27,100
Goal: $40,000
The total is steadily growing!
Thanks.
5
EPA SUED; EPA DESIGNATES 243
COUNTIES NONATTAINMENT
many refiners could not meet the requirements in such a short
period of time.
The state of Ohio and a coalition of environmental groups have
filed separate but similar lawsuits against EPA challenging its
nonattainment designations and standards for ozone. The
coalition made up of the American Lung Association,
Environmental Defense, the Natural Resources Defense
Council, and the Sierra Club argued that EPA’s rules allow too
much leeway for polluters. Ohio argues that EPA’s rules do not
provide states with the flexibility to choose how to meet the
standards.
In a related matter, EPA announced on June 29 that 243 counties
in 21 states and the District of Columbia are in nonattainment
for air quality standards for fine particles. EPA Administrator
Mike Leavitt said the announcement was a prelude to
November’s final designations. Leavitt sent each governor a letter
informing them of the agency’s preliminary determination of
nonattainment areas. States will have the chance to challenge
EPA’s decision before November.
EPA issued the new standard for “fine” particulate in July 1997
and is currently working on implementing a framework for the
new standard. Meanwhile, the current standard regulating particles
10 microns or smaller is still in effect.
The National Petrochemical and Refiners Association (NPRA)
has also filed suit against the EPA to delay compliance with
stricter ozone-emission rules as early as 2009. They stated that
NEW DOL OVERTIME RULE EFFECTIVE
AUGUST 23, 2004
On April 23, the Department of Labor issued new workplace
regulations, updating the old Fair Labor Standards Act regulations
governing minimum wage and overtime payment rules. These
new regulations become effective August 23, 2004, and cover the
exemption from minimum wage and overtime pay for executive,
administrative, professional, outside sales and information technology employees. These exemptions are often referred to as
the “white collar” exemptions and may impact your pay policies.
U.S. PETROLEUM MARKETING BRIEFS
Credit/debit card payments at U.S. gasoline stations set an
all-time record in 2002 at $130.7 billion. That total amounted to
54.5 percent of retail gasoline and diesel purchases.
Credit/debit payments represented 27 percent of total spending
The new rules do not cover inside sales personnel.
The National Association of Wholesaler-Distributors (NAW) has
prepared a Legal Advisory that explains how exemptions from
minimum wage and overtime are covered under the new
regulations. If you want to learn more, the Department of Labor
has developed a "Fair Pay" website that contains a wealth of
information on the regulations. The Legal Advisory and DOL
website can also be accessed through www.pei.org/frd.
in 1990. In-pump card readers are thought to have spurred
much of the increase. According to Lundberg field data, just 9.8
percent of the U.S. station population had in-pump card readers
in 1992. In 2003, Lundberg reports that 60 percent had card
readers in pumps.—Lundberg Letter.
FIRST CLASS AT MODA TEC FILLING UP
Education Chair, Jim Pike and MODA
Director of Technical Education,
Roger Mitchell have announced the
offering of the new 200 hour 7-week
6
oilheat technician course. The first
class begins on July 19, 2004 at the
new MODA lab - The MODA
Technical Education Center (MODA
TEC). Call to reserve some of the last
spots in order to have a technician
ready for winter.
The Spirit™ brand – A new option for MODA members.
Over the last few years, branding options for
marketers have declined dramatically as the
majors have merged and consolidated. And
often, in highly competitive markets, the cost of
affiliation with a major brand was an uncompetitive
proposition.
That’s why the Spirit™ brand was created. And in
just two years, the brand has grown dramatically.
Marketers in 24 states have selected the Spirit™
brand for more than 160 retail gasoline locations
coast to coast. How does Spirit™ work for
marketers? Many marketers have branded locations
Spirit™ where a unit does not qualify as a major
brand. Some have branded Spirit™ as a way to
have more flexibility and be more competitive
with hypermarkets. Others have found that
image requirements of a major brand were too
expensive for lower volume locations. In another
case, a marketer already had a strong market
presence with his major brand affiliation, yet saw
an opportunity to increase his dominance in the
marketplace by adding a Spirit™ location. In all of
these situations, Spirit™ provides a solution.
Spirit™ was created by the Petroleum Marketers
Oil Co. (PMOCO), LLC. The company is owned
by the Petroleum Marketers Association of
America (PMAA) and offers an image program,
credit card processing, and in some states, supply
for members of PMAA and its 44 state associations.
PMOCO designed its Spirit™ program to offer an
attractive image at minimal branding costs, while
still maintaining the integrity of a national brand.
PMOCO is run by a seven-member management
committee, comprised of six petroleum
marketers and one state association executive.
The marketers who run the company bring their
wealth of experience running their own businesses,
along with a street-wise perspective and the goal
of providing a service for their fellow marketers.
PMOCO was established with a PMAA board
directive that any products and services offered
by PMOCO must be offered at the lowest possible
prices.
FREQUENTLY ASKED QUESTIONS:
Where can I get information about SPIRIT™?
Visit the PMOCO website, www.pmoco.com. Also, you may request
a package of information on the Spirit™ program by emailing
spirit@pmoco.com or by calling 215-862-8112.
PMOCO doesn’t offer supply in my area. Can I still use the Spirit™
brand?
Yes. Many marketers need branding options and Spirit™ can offer that.
If a marketer has access to a source of unbranded supply, he can take
advantage of the Spirit™ brand, with its image offering and credit card
program.
Can I get the brand without a supply contract?
Yes. Everything PMOCO has to offer is available “cafeteria” style. While
areas where PMOCO has supply are currently limited, in the future,
should PMOCO offer you a competitive supply arrangement, and you
opt not to buy from PMOCO, you would pay an additional per-gallon
royalty fee to PMOCO for the Spirit™ brand. But the royalty fee is only
paid in areas where PMOCO has supply.
How do I sign up for Spirit?
To sign up for Spirit™, you need to submit a completed application, a
signed trademark license agreement, and submit three photos of the
site to be branded Spirit™. This is available at www.pmoco.com. The
license fee is $1000 for the first location and $500 for each additional
location for an initial three-year term. Renewal terms are five years with
a renewal fee of $500 per location.
What are the qualifications to be a Spirit licensee?
You must be a member of a PMAA state association and you must be
a jobber company that has a volume of at least 2.5 million gallons
annually all-inclusive (all brands). The program is not offered directly to
dealers, however, jobbers may license dealer locations. For details,
please review the PMOCO license agreement.
Are there image standards?
Yes. Every effort is made by PMOCO to keep these standards as flexible
and cost-effective as possible, while still maintaining a quality image.
Image standards are available on the PMOCO website.
What other offerings can we expect from PMOCO?
PMOCO will negotiate savings for Spirit™ marketers whenever there is
an opportunity to do so—first with signage, canopies and equipment.
Ultimately the company would like to expand these offerings by
aggregating the buying power of marketers nationwide.
7
CLASSES
EDUCATION
FOUNDATION
(scholarships available)
200 Hour Oil Heat Professional Technician Course
#0401 July 19 - Aug 31
#0402 Sept 20 - Oct 29
#0403 Nov 22 - Dec 31
M-F 8:30am - 4pm MODA TEC, Brunswick
M-F 8:30am - 4pm MODA TEC, Brunswick
M-F 8:30am - 4pm MODA TEC, Brunswick
Hot Water Boiler Replacement and Advanced Piping Methods by Burnham Hydronics
July 28 — MODA TEC, Brunswick
July 29 — Holiday Inn, Main St., Bangor
Collections - Back to Basics (by Kathy Boyle)
August 11 — Holiday Inn, Main St., Bangor
August 12 — MODA Office, Brunswick
Propane Basics
August 10, 11, 12 — MODA TEC, Brunswick
8:00am - 4:00pm
What’s Going On
at MODA?
Executive Committee Meeting
August 10, 2004, 10:00am. — MODA Office, Brunswick
MODA Technical Education Center
Grand Opening - September 15th.
Propane Distribution
August 16 - 19 — MODA TEC, Brunswick
8:00am - 4:00pm
MODA Board of Directors Meeting
September 15, 2004, 10:00-12:30 (Includes lunch).
INDUSTRY NEWS FOR MAINE’S PETROLEUM MARKETERS
P.O. Box 249
25 Greenwood Road
Brunswick, Maine 04011