From: WPMA
To: Scott Jenkins,
Subject: WPMA Weekly Update - Friday, April 11, 2014
Date: Fri Apr 11 16:08:00 MDT 2014


Weekly Update Header

April 11, 2014                       Visit us online at                            WP-04-11-14



On Wednesday, 11 Senate Democrats urged the President to approve the Keystone XL pipeline by May 31. The letter cited the State Department's fifth and final environmental impact statement (EIS) which essentially dispelled environmental critics' claims that the Keystone XL pipeline is not in the nation's best interest. The final EIS argued that Canadian oil sands would be developed with or without the pipeline. Hauling crude oil by rail carries with it a higher CO2 rate and safety concerns. Approving the Keystone XL pipeline would help alleviate these environmental and safety concerns.

Eight federal agencies, including the Energy Department and the EPA, have until May 1 to weigh in with the State Department. Some analysts believe the latest State Department report boosts the possibility that the pipeline wins U.S. approval as soon as this summer.

Five Senate Democrats seeking reelection signed the letter which included: Landrieu (LA), Begich (AK), Pryor (AR), Hagan (NC), and Warner (VA). To view a copy of the letter, please click
here ( 



 Over the next 10 years, the U.S. is expected to face a driver shortage in excess of 239,000 drivers. Simply put, America needs more commercial drivers. All Commercial Driver's License (CDL) applicants must pass a skills test before being issued a CDL. What most people do not know, however, is our nation's ability to efficiently produce drivers is being hampered by skills testing delays. If a CDL applicant fails their skills test the first time, it may take weeks or even months before he or she can retake the test due to delays in securing another testing slot.

Current Department of Transportation regulations allow States to determine how and where to skills test their CDL applicants. In many States, the State government outsources this testing function to contracted third parties. In other States, the State government does not outsource this testing function. The Commercial Vehicle Training Association (CVTA) is concerned that testing delays are hurting applicants from efficiently entering the job market. Therefore, CVTA believes that Congress should explore whether these testing delays are impacting our ability to get more Americans into the trucking industry.

CDL skills testing varies from State to State. While all States must meet minimum testing criteria established by the Department of Transportation, the grading of certain procedures or skills varies depending on State law. CVTA is concerned that certain test examiners, who test CDL applicants, are not following proper procedure. By not following proper procedure, these testing examiners are causing CDL applicants to unnecessarily fail skills tests. Given the disparities, CVTA believes Congress should act to ensure greater consistency in our nation's CDL testing.

In 2015, new Department of Transportation regulations go into effect that attempt to streamline the process for individuals to receive a CDL. While the intent of this regulation is to create reciprocity that allows States to issue CDLs to its citizens who receive training and skills test out of State, CVTA fears that many States will not issue CDLs to its citizens due to the way the current regulation is written. As such, CVTA would like Congress to ask the Federal Motor Carrier Safety Administration (FMCSA) to clarify its own regulation.



In the April 2014 Short-Term Energy Outlook (STEO), EIA projects that regular-grade gasoline retail prices will average $3.57 per gallon (gal) during the current summer (April through September) driving season, similar to the $3.58/gal average of summer 2013. After rising into May, the retail price is expected to fall through the remainder of the summer because both crude oil prices and gasoline crack spreads (the difference between wholesale product price and the price of crude oil) decline. Daily and weekly national average prices can differ significantly from monthly and seasonal averages, and there are also significant regional differences, with prices in some areas exceeding the national average by 25 cents/gal or more.

On April 7, the national average regular-grade gasoline retail price stood at $3.60/gal. Most of the expected increase from the current price over the next several weeks is attributable to an increase in crack spreads as a result of typical seasonal factors such as refinery maintenance and the switch to summer-grade gasoline, which is more costly to produce than winter-grade gasoline. Gasoline crack spreads are expected to average 44 cents/gal in May, up from an average of 15 cents/gal during the first quarter.

Retail prices are expected to gradually decline after May to an average of $3.46/gal in September. The largest driver of the expected decline is falling gasoline crack spreads, which are expected to decline to an average of 29 cents/gal in September. The expected decrease in crack spreads results from a projected increase in crude oil throughput at refineries, which add supplies to the market along with easing seasonal demand increases as the summer progresses. North Sea Brent crude oil prices are projected to fall from a March average of $107 per barrel (bbl) to a May average of $105/bbl and a September average of $103/bbl. The May-to-September crude oil price drop contributes almost five cents/gal to the projected decline in gasoline prices.



Following three years of review, the FDA has sent final regulations required by Section 4205 (Menu Labeling) of the 2010 healthcare law to the White House Office of Management and Budget.

Section 4205 requires restaurants and convenience store owners with 20 or more locations to list content information for standard menu items, such as posting calorie information on menus and menu-boards. Retailers must also provide additional nutrition information to be made available in writing upon request. The proposed FDA rule would define a "covered entity" as any retailer where more than 50 percent of the store's floor area is devoted to selling food. The caveat is that FDA proposed to include pre-packaged food that is already required to include nutritional information on its packaging which would capture most c-stores. FDA has not announced what changes were made to the measure sent to the White House and the Administration has 90 days to review the rule.

PMAA continues to support the "Commonsense Nutrition Disclosure Act" (H.R. 1249 and S. 1756), which would ease some of the regulatory burdens attributable to Section 4205 by limiting the provisions in the health care law to establishments that derive 50 percent or more of their revenue from food for immediate consumption and/or prepared and processed on-site. Prepackaged food would not be considered in this equation. PMAA believes H.R. 1249 would bring a commonsense solution to regulation which will unfairly burden convenience store owners.

Also related to the Affordable Care Act, yesterday the House of Representatives approved Rep. Young's (R-IN) "Save American Workers (SAW) Act" (H.R. 2575) which would define full time workers as those who work 40 hours a week instead of the ObamaCare 30 hour a week standard. Without this change, in 2015 companies with more than 100 employees will pay penalties if health insurance is not provided to all full time (30 hours per week) employees. The requirement for all employers with 50 or more employees follows in 2016. PMAA supports this legislation as we support the "Forty Hours is Full Time Act" (S. 1188 and S.701) introduced last year by Senator Susan Collins (R-ME) and Joe Donnelly (D-IN. All of these bills would repeal the 30 hour threshold for classification as FTE for the employer mandate in the Affordable Care Act and replace the threshold with a 40 hour requirement.

Although the House passed the bill by 248-179, Senate Majority Leader Harry Reid (D-NV) and President Obama are opposed to the 30 hour definition therefore, the House vote is mostly symbolic.   



PMAA's annual Washington Conference and Day on the Hill will be held in our Nation's Capitol of Washington, DC from May 21-23. This forum unites marketers, state association executives and suppliers from across the country to openly discuss all the issues facing the petroleum marketing industry with their members of Congress and find solutions together.


The meeting will commence with an Opening Session / Issues Briefing in the afternoon and our welcome reception including our PAC silent auction fundraiser on May 21st. On the morning of May 22nd, there will be a buffet breakfast and a supplemental issues briefing if you did not arrive in time to attend the original one. Marketers and association executives will then head to Capitol Hill for visits with their members of Congress. Please be sure to make these appointments at your earliest convenience. There will be a hospitality suite and luncheon on the Hill. On the evening of May 22nd, we will honor our new PMAA Chair, Sam Bell. Our conference will conclude after the PMAA Board of Directors meet on May 23rd following the buffet breakfast and region meetings.


For those planning to attend this informative conference, please be sure to complete a Registration Form at your earliest convenience. You can find the registration forms and instructions along with all related details for Washington Conference and Day on the Hill here ( Please note that the room block closes on April 29th! We are expecting a record turnout and would appreciate you and your members to plan ahead and make rooms reservations and complete registration forms at your earliest convenience.


Please make your plans now to attend this important and productive opportunity to meet with your members of Congress to make your voices heard!



Plan now to attend the 2015 WPMA Convention and Convenience Store Expo. It will be held at the Mirage in Las Vegas, Nevada. Mark your calendars for February 17-19, 2015.



May 8-9, 2014  - NPM&CSA Big Dogs event - Red Rock Hotel & Casino Las Vegas, Nevada

June 3-5, 2014 - MPMCSA Convention - Hilton Garden Inn - Missoula, Montana

June 16-19, 2014 - WOMA Convention - Suncadia Lodge - Cle Elum, Washington

June 19, 2014 - UPMRA Summer Golf Classic - Davis Park Golf Course - Kaysville, Utah  

August 6-8, 2014 - IPM&CSA Convention - Coeur d'Alene Resort - Coeur d'Alene, Idaho

August 19-20, 2014 - NMPMA Convention - Marriott Pyramid North - Albuquerque, New Mexico

September 10-12, 2014 - UPMRA Convention - Park City Marriott - Park City, Utah 


Petro Pete:  "OK, so what's the speed of dark?"


© 2014 Western Petroleum Marketers Association - All rights reserved. No part of this work may be reproduced or copied in any form or by any means - graphic, electronic, or mechanical, including photocopying, recording, or otherwise. The information herein is also intended for the sole purpose of members of the Western Petroleum Marketers Association (WPMA). Any other use is strictly prohibited without the express written consent of the WPMA.


If you do not wish to receive information via fax or e-mail, please contact WPMA at: (801) 263-9762, Fax: (801) 262-9413, or e-mail: . Thanks. 








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Great opportunity for someone to join the team at Kellerstrass Enterprises in our Salt Lake City office. Looking for someone to assist the office manager in taking care of the daily operational needs. This person would need to be able to input orders into our accounting system. Answer phones with a pleasant attitude and take care of customers as they walk into the facility. Understanding of the billing process would be helpful. Knowledge of the oil and gas industry a plus.


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If interested, please fax a resume or email to:

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Bulk Oil and Gas distributor with C-store serving a 200-mile radius supplying fleets, international exploration and production companies as well as local farmers with fuel and related products.  Company was established in 1976 and has been providing superior service in the Williston Basin of North Dakota since.  Capabilities range from Bulk Fuel Delivery, to Propane Delivery, to onsite high-speed retail fueling islands. Specialty focuses on the Agricultural industry as well as theOil and Gas Field Service industry. Company is dedicated to timely, onsite fuel and propane deliveries.  2010 -  3 million gallons sold;  2011 - 4.1 million gallons sold;   2012 - 4.6 million gallons sold;   2013 -  4.7 million gallons sold.


For More information please call Tom Nelson 406-256-7470 or email 



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