MPCA NEWS

MPCA NEWS . ONLINE .

Missouri Petroleum Marketers and Convenience Store Association (MPCA)

205 East Capitol Avenue, Suite 200 • Jefferson City, MO 65101

573.635.7117 phone • 573.635.3575 fax • www.mpca.org • © MPCA 2005

Petroleum Marketing and Convenience Store News from MPCA

AUGUST 18, 2008

1. MPCA Member Services: Save Money, Increase Profitability & Keep Your Membership Dues Low. What Have You Got To Lose?

2. MPCA Offices Will Be Closed For Remodeling Next Week - August 25^th Through August 29^th - But Staff Still Working & Available Via Phone & Email.

3. No Further Action (NFA) Letters: 9/10/08 Environmental Consultant Internet Seminar Hosted By DNR & PSTIF.

4. Federal Legislative & Regulatory Updates.

A. FTC & Energy Market Manipulation.

B. Tobacco Tax Increase: Contact Congress Today!

C. Climate Change Bill To Be Introduced This Year.

D. Ethanol Blend Suppliers Should Mark Shipping Papers To Avoid Liability.

E. New Alaskan Drilling Leases.

F. Credit Card Fair Fee Act: Contact Congress Today!

1. MPCA MEMBER SERVICES: SAVE MONEY, INCREASE PROFITABILITY & KEEP YOUR MEMBERSHIP DUES LOW. WHAT HAVE YOU GOT TO LOSE?

A. WHAT IT’S ALL ABOUT. MPCA members who take advantage of MPCA’s member services listed accomplish 3 key objectives.

First, they save money and thus increase their company’s profitability. Second, they help generate a very important source of “non-dues revenue” for MPCA which helps to keep your MPCA membership dues as low as possible. Finally, this “non-dues revenue” stream provides MPCA with the tools we need to protect and advance your legislative and regulatory interests in Jefferson City, MO and Washington, D.C.

Truly a “win, win, win” scenario for all involved!

B. WHO IS ELIGIBLE. Every MPCA member service is available to every MPCA member - marketer members, c-store members, associate members, etc.

C. SPECIFIC MEMBER SERVICES. The following is a list of member services offered by MPCA:

1. Employment Screening Reports: Criminal Background, Credit, Liquor Control, Driver/Motor Vehicle & More.

2. Workers’ Compensation Insurance.

3. Health Insurance, Property & Liability Insurance, & Financial Protection Services.

4. Credit Card Processing.

5. Office Supplies & Equipment.

6. Overnight Shipping.

7. Industry Publications.

8. MPCA Fuel Theft Decals.

D. HOW TO GET FURTHER INFORMATION. Click here to access all the information you need regarding MPCA’s member services.

2. MPCA OFFICES WILL BE CLOSED FOR REMODELING NEXT WEEK - AUGUST 25^TH THROUGH AUGUST 29^TH - BUT STAFF STILL WORKING & AVAILABLE VIA PHONE & EMAIL.

MPCA offices will be closed August 25^th through August 29^th to allow for the staining and resurfacing of some hard-wood floors.

However, rest assured that staff will still be working from home for the entire week and will be checking and responding to emails and voicemails frequently throughout each work day.

3. NO FURTHER ACTION (NFA) LETTERS: 9/10/08 ENVIRONMENTAL CONSULTANT INTERNET SEMINAR HOSTED BY DNR & PSTIF.

MPCA received the following on 8/15/08 and strongly encourages all of our environmental consultant associate members to fully participate in the 9/10 internet seminar hosted by PSTIF & DNR.

“Begin with the End in Mind: Planning Ahead for Completion of Cleanup - An Internet Seminar: September 10, 2008, 2:00 – 3:00 PM.

Please join us as the Department of Natural Resources and the Petroleum Storage Tank Insurance Fund cosponsor an Internet Seminar that will detail proper planning to expedite getting a “no further remedial action letter” for your clients. Learn how to reduce your time and resources through planning prior to site characterization. The seminar will include discussion on how to prepare a site conceptual model, what should be included in the model, examples of models that can be used, and validation of the model.

You will need Internet access and a telephone to participate. There is no cost. However, you must register to receive the web address and telephone number for the seminar.

To register, simply reply to this email and provide your email address to Krista Welschmeyer at krista.welschmeyer@dnr.mo.gov no later than September 9.”

4. FEDERAL LEGISLATIVE & REGULATORY UPDATES.

I. PMAA. MPCA received the following on 8/15/08 & 8/18/08 from the Petroleum Marketers Association of America (PMAA).

A. “FTC & ENERGY MARKET MANIPULATION. On Wednesday the Federal Trade Commission issued a Notice of Proposed Rulemaking (NPRM) seeking public comments on a proposed rule prohibiting market manipulation in the petroleum industry. The NPRM will assist the Commission in determining whether, and in what ways, it should develop a final rule. The Commission expects to conclude the rulemaking process by the end of the year.

“The Federal Trade Commission is committed to exercising its authority to determine whether crude oil, gasoline, or petroleum distillates price increases at wholesale are a result of illegal market manipulation,” Chairman William E. Kovacic said. “The proposed rule announced today brings us one step closer to defining, identifying, and stopping fraudulent and deceptive conduct in wholesale petroleum markets that may contribute to higher gasoline prices.”

In issuing the proposed rule, the Commission is exercising authority provided by the Energy Independence and Security Act of 2007 (EISA) enacted in December of last year. The rulemaking process began with the publication of an Advance Notice of Proposed Rulemaking (ANPR) announced on May 1, 2008. In response to the ANPR, the Commission received 155 comments, most of which were submitted by consumers, with the rest coming from industry members, trade and bar associations, academics, and other federal and state government agencies. PMAA had submitted comments on the rule.

The NPRM issued today seeks public comments regarding the proposed rule the FTC has developed pursuant to Section 811 of EISA. EISA gives the FTC new authority to promulgate regulations prohibiting “market manipulation” in wholesale petroleum markets. Specifically, Section 811 states that it is against the law for any person, in connection with the wholesale purchase or sale of certain petroleum commodities to use any “manipulative or deceptive device or contrivance, in contravention of such rules and regulations as the Federal Trade Commission may prescribe as necessary or appropriate in the public interest or for the protection of United States citizens.”

PMAA will be reviewing the NPRM closely and will submit comments during the open comment period.”

B. “TOBACCO TAX INCREASE: CONTACT CONGRESS TODAY! True to its word, Congress is planning to bring back a vote on increasing the Federal Excise Tax (FET) on cigarettes and tobacco products to pay for additional spending on the State Children's Health Insurance Program (SCHIP). After failing to override the President’s veto earlier this year, members of Congress stated they would continue bringing the issue to the table until a compromise is reached.

A possible vote may occur in September. Please take a minute now to contact your legislators while they are in their home districts for their "Summer District Work Period," which lasts until the second week in September, and express opposition to any increase in the FET. To contact your member of Congress, go to http://www.nocigtax.com/how-you-can-help and click on "E-mail/write your Member of Congress" and follow the instructions.

Click here to review a draft opposition letter and a recent editorial from the Wall Street Journal.

Tobacco is so heavily taxed now at the state level an increase in federal taxes will only expand tax evasion and black market schemes. PMAA has joined with other trade associations in a letter to members of Congress requesting they oppose increasing tobacco taxes to fund the SCHIP program.”

MPCA NOTE. Please take a moment to contact Senators Bond & McCaskill as well as your Congressmen and Congresswomen and strongly urge them to oppose any tobacco tax increase, including a tax increase designed to fund children’s health insurance.

Senator Kit Bond: Ph - 202.224.5721; Fax - 202.224.8149.

Senator Claire McCaskill: Ph - 202.224.6154; Fax - 202.228.6326.

Rep. Todd Akin: Ph - 202.225.2561; Fax - 202.225.2563.

Rep. Roy Blunt: Ph - 202.225.6536; Fax - 202.225.5604.

Rep. Russ Carnahan: Ph - 202.225.2671; Fax - 202.225.7452.

Rep. Lacy Clay: Ph - 202.225.2406; Fax - 202.225.1725.

Rep. Emanuel Cleaver: Ph - 202.225.4535; Fax - 202.225.4403.

Rep. Jo Ann Emerson: Ph - 202.225.4404; Fax - 202.226.0326.

Rep. Sam Graves: Ph - 202.225.7041; Fax - 202.225.8221.

Rep. Kenny Hulshof: Ph - 202.225.2956; Fax - 202.225.5712.

Rep. Ike Skelton: Ph - 202.225.2876; Fax - 202.225.2695.

C. “CLIMATE CHANGE BILL TO BE INTRODUCED THIS YEAR. Democratic House Energy and Commerce Committee staff are working this month writing a global warming bill aimed at achieving a 60 to 80 percent reduction of greenhouse gas emissions by 2050. Committee Chairman John Dingell (D-MI) plans to release the cap and trade legislation this Congress.

While prospects for action on climate change legislation are close to zero this year, Dingell's work is likely to be seen as a key marker in the broader push to put climate change on the radar for the next administration. Particularly since both major party presidential candidates, Republican John McCain and Democrat Barack Obama, support cap and trade legislation. House Speaker Nancy Pelosi (D-CA) continues to list climate change legislation among her top priorities in the 111th Congress.”

D. “ETHANOL BLEND SUPPLIERS SHOULD MARK SHIPPING PAPERS TO AVOID LIABILITY. The U.S. EPA issued a letter several weeks ago to gasoline retailers warning that it is illegal to sell ethanol blends above E-10 for use in gasoline-only vehicles and engines. The EPA went on to explain that ethanol blends up to E-85 may be sold for use in flexible-fuel vehicles and engines. According to the EPA, the illegal sale of blends over E-10 to consumers with gasoline-only vehicles and engines exposes retailers, and possibly their suppliers, to significant civil penalties under the Clean Air Act.

The EPA letter recommended dispenser label warnings and other measures for blends over E-10 to prevent retailer liability for misfueling. However, the agency was silent on steps suppliers should take to prevent liability for misfueling that occurs on the retail level (liability is based on introducing an unregistered fuel into trade or commerce). A supplier may potentially be held liable for misfueling if the supplier knew or should have known that ethanol blends delivered to the retail site were being used to fuel gasoline-only vehicles and engines.

While it is not a federal requirement, PMAA is recommending to suppliers who wish to avoid potential liability for misfueling to place the following warning on all product transfer documents for ethanol blends over E-10 delivered to retail facilities: “Not for Use in Gasoline-only Vehicles and Engines.” Also, as a reminder, the U.S. DOT HAZMAT shipping paper entry requirements for ethanol blends recently changed. The following shipping entries must be used (followed by the quantity of fuel):

Blends	*Shipping Paper Entry Under New Rule*
Gasoline up to 10% ethanol content	Gasohol, 3, NA1203, PG II Gasoline, 3, UN1203, PG II
Over E-10 up to E-85	Ethanol and Gasoline Mixture, 3, UN3475, PGII
Alcohol up to 5%	Alcohols, n.o.s., 3, UN1987, PG II
Gasoline	Denatured Alcohol, 3, NA1987, PG II Ethanol and Gasoline Mixture, 3, UN3475, PG II

E. “NEW ALASKAN DRILLING LEASES. The Bureau of Land Management has announced the opening of more than 4.8 million acres in Alaska’s National Petroleum Reserve for oil and gas exploration. The lease sale is the fifth offered in the 23 million acre reserve since 1999 and will include land that had previously been offered for leasing in the past. Currently, about three million acres of the petroleum reserve is under lease. Exploration drilling has occurred over recent years, but there has not yet been any commercial production. The Interior Department estimates that the entire petroleum reserve holds potential for 10 billion barrels of recoverable oil and 70 trillion cubic feet of natural gas.”

II. SIGMA. MPCA received the following on 8/15/08 from the Society Of Independent Gasoline Marketers of America (SIGMA).

F. “CREDIT CARD FAIR FEE ACT: CONTACT CONGRESS TODAY! Please continue to contact your representatives regarding the “Credit Card Fair Fee Act of 2008” (H.R. 5546) which the House Judiciary Committee passed, July 16, after adding two amendments during a markup. The Credit Card Fair Fee Act will allow merchants for the first time to be included in the negotiating process with Visa and MasterCard, separately with their banks, to come up with a voluntary agreement on interchange rates and terms. Although this is a significant win, the fight is far from over. It is unclear when the measure will be on the House floor, so contacts with your representatives will continue to be crucial.

Again, we have prepared documents to help you make your contacts. A list of talking points and sample letters can be found on SIGMA’s website, www.sigma.org. Contact the SIGMA office at 703-709-7000 if you need any assistance. Please report back to the SIGMA office to keep us updated on the calls you have made. It is very important that we follow up. Your support has made, and will continue to make, the difference in this legislative battle.

MPCA NOTE. Please take a moment to contact Senators Bond & McCaskill as well as your Congressmen and Congresswomen and strongly urge them to support H.R. 5546 - the “Credit Card Fair Fee Act of 2008”.