Minnesota Petroleum Marketer MPMA Newsletter Issue... · values for September 2016 delivery. These contracts traded during the five-day period ending June 2 suggest the market expects

Over Time Rule

Pg. 2-3

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Seatbelt Update Pg.7

Issue #1900 June 14,2016

Minnesota Petroleum Marketer

Issue #1900 June 14, 2016 Inside this Issue:

MINNESOTA PETROLEUM MARKETERS ASSOCIATION

3244 RICE STREET ST. PAUL, MN 55126-3047

651/484-7227 800/864-3813 FAX 651/484-9189

E-Mail: [email protected] www.mpmaonline.com

The Minnesota Petroleum Marketer (ISSN 1062-8282) is published semi-monthly by the Northwest Petroleum Association dba Minnesota Petroleum Marketers Association. Standard—postage paid at the St. Paul, MN (USPS 5220). Subscription cost $25.00 per year. POSTMASTER: Send address changes to Minnesota Petroleum Marketer at address above.

Overtime 2-3

DEED 4

Short-Term Energy Outlook 5

Swipe Fee Price Fixing 6

5 Dumb Things Done at Gas Stations 6

Seatbelts In Trucks 7

Gas Prices Continue to Rise 8

Golf Outing Thank You 9

Insurance Corner 10

Legal Corner 11

Classifieds 13

Bulletin No. 1900 -2- June 14, 2016

FINAL RULE: OVERTIME


OVERTIME RULE CONTINUED


DEED OFFERS UPDATED LEGAL GUIDE The Minnesota Department of Employment and Economic Development (DEED) has teamed up with the law firm of Gray Plant Mooty to publish the second edition of “A Legal Guide to Privacy and Data Security,” a free booklet for Minnesota businesses. “We are pleased to present this guide to help Minnesota businesses,” said DEED Commissioner Shawntera Hardy. “The publication addresses important issues that businesses must know to suc-ceed in an increasingly competitive and global business market.” “A Legal Guide to Privacy and Data Security” offers guidance on a variety of privacy and data secu-rity-related laws, the impact of such laws on businesses, and best practices to mitigate risks. It co-vers key federal privacy and data security laws, Minnesota privacy laws, and privacy issues in the workplace, as well as compliance with global privacy and data security laws. According to Michael Cohen, principal at Gray Plant Mooty and primary author of the guide, there have been significant legal developments since publication of the first edition, including approval of the EU General Data Protection Regulation (GDPR) and invalidation of the EU-U.S. Safe Harbor Framework, relied upon by thousands of U.S. companies to support cross-border data transfers. ”The GDPR creates new obligations for businesses that offer goods and services to EU residents, with new enforcement mechanisms, and severe penalties for noncompliance. The loss of the Safe Harbor program and unknown status of its replacement Privacy Shield create additional global com-pliance issues for Minnesota businesses,” Cohen said. The potential impact of the GDPR, Privacy Shield and other key developments are covered in the new guide. The guide is available on DEED’s website and also available in print or CD-ROM from DEED’s Small Business Assistance Office at 651-259-7476, 800-310-8323 or [email protected]. Re-quests also can be mailed to the Small Business Assistance Office at the First National Bank Build-ing, 332 Minnesota St., Suite E-200, St. Paul, MN 55101-1351. Copies also are available on Gray Plant Mooty’s website at gpmlaw.com or by mailing or phoning requests to Michael Cohen, 612-632-3345, Gray Plant Mooty, 500 IDS Center, 80 S. Eighth St., Min-neapolis, MN 55402. DEED is the state’s principal economic development agency, promoting business recruitment, ex-pansion and retention, workforce development, international trade and community development. For more details about the agency and our services, visit us at the DEED website (http://mn.gov/deed) or go to our Twitter account (http://twitter.com/mndeed). Gray Plant Mooty is recognized as one of the leading corporate law firms in Minnesota. The firm’s roots go back to 1866. Today, Gray Plant Mooty is a 180-attorney, full-service firm with offices in Minneapolis and St. Cloud; Washington, D.C.; and Fargo, N.D.


ENERGY OTULOOK Benchmark North Sea Brent crude oil spot prices averaged $47/barrel (b) in May, a $5/b

increase from April and the fourth consecutive monthly increase since reaching a 12-year low of $31/b in January. Growing global oil supply disruptions, rising oil demand, and fall-ing U.S. crude oil production contributed to the price increase.

Brent crude oil prices are forecast to average $43/b in 2016 and $52/b in 2017, $3/b and

$1/b higher than forecast in last month’s STEO, respectively. West Texas Intermediate (WTI) crude oil prices are forecast to be slightly lower than Brent in 2016 and to be the same as Brent in 2017. However, the current values of futures and options contracts sug-gest high uncertainty in the price outlook. For example, EIA’s forecast for the average WTI price in September 2016 of $46/b should be considered in the context of Nymex contract values for September 2016 delivery. These contracts traded during the five-day period ending June 2 suggest the market expects WTI prices could range from $36/b to $69/b (at the 95% confidence interval) in September 2016.

During the April-through-September summer driving season of 2016, U.S. regular gaso-

line retail prices are forecast to average $2.27/gallon (gal), 6 cents/gal higher than fore-cast in last month’s STEO but 36 cents/gal lower than last summer. U.S. regular gasoline retail prices are forecast to average $2.13/gal in 2016 and $2.27/gal in 2017, which are 5 cents/gal higher and 3 cents/gal higher than forecast in last month’s STEO, respectively.

U.S. crude oil production averaged 9.4 million barrels per day (b/d) in 2015. Production is

forecast to average 8.6 million b/d in 2016 and 8.2 million b/d in 2017, both unchanged from last month’s STEO. EIA estimates that crude oil production for May 2016 averaged 8.7 million b/d, which is more than 0.2 million b/d below the April 2016 level, and approxi-mately 1 million b/d below the 9.7 million b/d level reached in April 2015.

Natural gas working inventories were 2,907 billion cubic feet (Bcf) on May 27. This level

is 32% higher than a year earlier, and 35% higher than the previous five-year (2011–15) average for that week. The natural gas storage injection season typically runs from April through October. EIA projects that natural gas inventories will be 4,161 Bcf at the end of October 2016, which would be the highest end-of-October level on record. Henry Hub spot prices are forecast to average $2.22/million British thermal units (MMBtu) in 2016 and $2.96/MMBtu in 2017, compared with an average of $2.63/MMBtu in 2015.


SWIPE FEE PRICE FIXING NACS today released the following statement regarding plans announced by Rep. Jeb Hensarling (TX-5), chairman of the House Financial Services Committee, to repeal the Durbin Amendment, which reformed debit card swipe fees: “NACS strongly opposes Rep. Hensarling’s proposal to repeal debit swipe fee reform, which has saved con-sumers nearly $6 billion and supported more than 37,000 jobs a year. Rep. Hensarling would undercut the free market by allowing the giant credit card companies and banks to resume price-fixing of debit card fees. “Debit swipe fee reform introduced some measure of competition into the debit card market, which neverthe-less continues to be largely controlled by the Visa-MasterCard duopoly. Even with reform, American mer-chants and consumers must still pony up the highest debit and credit swipe fees in the world—up to seven or eight times what Europeans are assessed. “Without the vital protections in debit reform, higher debit card fees would not only add to prices for consum-ers but also represent a tremendous additional burden to smaller merchants—especially convenience store owners, whose customers often engage in multiple transactions at the gas pump and within the store. Card fees are the second-largest operating cost for many retailers, preventing them from expanding or hiring. “We strongly urge members of Congress and the House to reject the proposed repeal of debit swipe fee re-form and maintain the indispensable protections it provides American merchants and consumers.” NACS supported enactment of the Durbin Amendment, which was signed into law in 2010 and directs the Federal Reserve to ensure debit interchange fees are “reasonable and proportional” to the costs incurred.

5 DUMB THINGS DONE AT GAS STATIONS

We all make mistakes, and sometimes, those mishaps occur at gasoline stations. NerdWallet came up with a list of what it called “5 Stupid Things We Do at Gas Stations.”

1. Driving off with the gas nozzle in the gas tank. This mistake happens because the driver was distracted with his phone, said Jeff Lenard, NACS vice president of strategic initiatives. Damage isn’t too costly and usually runs about $250, mostly because modern hoses are designed to detach quickly when a driver forgets to disconnect at the pump.

2. Keeping the car engine running to dash inside the store. While most of us wouldn’t think to not turn off the engine when visiting a shopping mall, it’s fairly common for convenience store patrons to simply run inside with the car running outside. However, Lenard pointed out that “thieves seek out opportunity. It’s an easy way for somebody who wants to acquire a car to do it.”

3. Filling up with diesel when you meant to use unleaded gasoline. While this mistake has become increasingly hard to make, given diesel pumps have clear labels and bright green pump handles, driver distraction contributes to put-ting diesel fuel in unleaded gas tanks. Another saving grace is that diesel nozzles literally won’t fit into the gasoline tanks of newer cars.

4. Re-entering the car after starting to fill up. During the winter, this is more prevalent, as drivers sit in their vehicles to keep warm while gas pumps into their tanks. But re-entering a car during refueling can lead to a static electricity buildup, which can result in a flash fire upon returning to the pump, according to the American Petroleum Institute. Touching a piece of metal before grabbing the nozzle can mitigate the likelihood of sparking a fire.

5. Leaving someone behind. This happens but probably not as amusingly depicted as in the movies (think “Little Miss Sunshine”). One news outlet reported that an Argentine tourist left his wife at a Brazilian gas station and drove 60 miles before noticing.

With around 40 million U.S. drivers filling up each day, the majority of those transactions are normal. “But some are less boring than others,” Lenard said.


SEATBELT RULE COMMERICAL TRUCKS The U.S. Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA) an-nounced today that passengers riding in large commercial trucks will be required to use seat belts whenever the vehicles are operated on public roads in interstate commerce. Effective August 8, 2016, the final rule revises Federal Motor Carrier Safety Regulations and holds motor carriers and drivers responsible for ensuring that passengers riding in large commercial trucks are using seat belts. “Seat belts save lives – period,” said U.S. Transportation Secretary Anthony Foxx. “Whether you’re a driver or passenger, in a personal vehicle or large truck, the simple act of wearing a safety belt significantly reduces the risk of fatality in a crash.” In 2014, 37 passengers traveling unrestrained in the cab of a large truck were killed in roadway crashes, according to the most recent data from the National Highway Traffic Safety Administration (NHTSA). Of this number, approximately one-third were ejected from the truck cab. FMCSA’s most recent Seat Belt Usage by Commercial Motor Vehicle (CMV) Drivers Survey, pub-lished in March 2014, found that commercial motor vehicle passengers use seat belts at a lower rate (73 percent) than CMV drivers (84 percent). Federal rules have long required all commercial drivers to use seat belts. “Using a seat belt is one of the safest, easiest, and smartest choices drivers and passengers can make before starting out on any road trip,” said FMCSA Acting Administrator Scott Darling. “This rule further protects large truck occupants and will undoubtedly save more lives.”

Even as gas prices rose another 18 cents over the past month, the fourth consecutive month of price in-creases, Americans say that higher gas prices are not affecting their feelings about the economy. Consumer sentiment over the economy remains unchanged from the previous two months (44% are optimistic) and only 24% say that gas prices have a “great impact” on their economic perspective, according to the latest national consumer survey released by the National Association of Convenience Stores (NACS). More than two in three consumers (69%) across the United States noticed that gas prices are higher; specifi-cally, three in four (77%) noticed in the Midwest. And two in three consumers nationwide (66%) also say that they expect prices to increase over the next 30 days. Despite expectations that gas prices will continue to climb, consumers say they are not necessarily feeling the pinch—at least not yet. The percentage of Americans who say gas prices have a great impact on their economic outlook fell 7 points over the past month to 24%, the lowest level recorded since NACS launched its monthly consumer surveys in January 2014. Gas prices, which average $2.38 per gallon, are still 37 cents per gallon lower than in June 2015, and $1.32 per gallon lower than in June 2014, when 41% of consumers said gas prices had a “great impact” on their economic sentiment. Nearly one in four (23%) consumers say they will spend more money shopping over the next 30 days, and more than one in three (35%) consumers ages 18–34 say they will spend more over the coming 30 days. They also say gas prices would need to reach a tipping point of $3.51 per gallon before they would reduce how much they drive. Consumers say their vehicle’s average fuel efficiency increased slightly to 24.1 miles per gallon but average miles per dollar—a calculation that examines gas prices related to vehicle fuel efficiency—fell to 10.1 miles per dollar, the lowest level this year. “Compared to the past two years, the prolonged period of lower gas prices seems to have reset consumer expectations about the economy,” said Jeff Lenard, NACS vice president of strategic industry initiatives. “Consumers say that gas prices would have to increase by more than a dollar per gallon, which would be in line with the summers of 2014 and 2013, before they would reduce the amount they drive.” NACS, which represents the convenience store industry that sells 80% of the gas in the country, conducts monthly consumer surveys to gauge how gas prices affect broader economic trends. The survey was con-ducted online by Penn Schoen Berland; 1,100 U.S. adults who purchase fuel for a vehicle such as a car, truck or van at least once per month were surveyed June 7–10, 2016. Summary results are available at nacsonline.com/fuelssurvey. The NACS Retail Fuels Report (nacsonline.com/gasprices) examines a variety of issues related to fueling, with more than 20 backgrounders including a report on the transition to summer-blend fuels, “Why Prices Historically Go Up in the Spring.”

GAS PRICES CONTINUE TO RISE



2016 GOLF OUTING THANK YOU!!! The MPM Annual Golf Outing was a huge success once again this year. Special thanks to the fol-lowing sponsors that made the event the success it was…without them the event would not have been possible. The next page also lists the sponsors for the gift bags handed out, food and course game sponsors, and some of the door prize contributors. Thanks to all who attended and played—your support enables your business to be stronger and helps the Association be more effective for you.

Bulletin No. 1900 -10- June 14, 2016

Course and Gift Bag Sponsors

Door Prizes Contributors

Bulletin No. 1900 -11- June 18, 2016

LEGAL CORNER

Bulletin No. 1900 -13- June 14, 2016

INSURANCE CORNER Three Strategies to Prevent Overexertion Injuries Overexertion injuries, typically known as sprains or strains, are a top cause of employee injury for petroleum marketers. It affects everyone from bulk plant employees loading barrels to convenience store workers carrying beverage dispensing supplies. And overexertion injuries aren’t cheap, aver-aging nearly $20,000* per claim on top of the other damage to your business, such as loss of productivity or the effort to find replacements for injured employees. You likely can’t eliminate all lift-ing by your employees, but there are things you can do to decrease their risk of injury. Use Storage Space Effectively Storing heavy items—cases of beer, boxes of syrup for fountain machines or bottles of cooking oil—on high shelves or directly on the floor can increase the risk of back strain for employees who need to lift or move them. Even lightweight items like cigarettes can create an overexertion hazard when they are stored in a location requiring employees to reach overhead frequently to retrieve them. To reduce the risk of strains and sprains, store heavy or frequently-used items on shelves between knee and waist level, where they will be easiest for employees to remove and lift safely. Offer the Right Tools Provide carts, dollies and other material handling aids for employees who need to move heavy or awkward items, especially if those items need to be moved more than a short distance. Improve the physically demanding task of cleaning the floors by replacing heavy cotton loop mops with light-weight microfiber mops that require less force to maneuver. Use mop buckets with drain openings so they can be emptied right into a floor drain or a sink mounted on the ground instead of being lifted and dumped in a sink at waist level. Make it easier to take out the trash by adding holes near the bottom of garbage cans to reduce the suction created when the bag is pulled out. A simple step-up platform next to the dumpster can also make it easier to dump heavy trash bags without straining. Invest in Injury Prevention Upgrading to newer equipment can help your staff work more efficiently while reducing overexertion injuries from reaching and lifting. Even retrofitted improvements to your existing equipment—such as top-mounted ice makers for fountain dispensers or LED fuel price kits that can be mounted on exist-ing

Bulletin No. 1900 -12- June 14, 2016

CLASSIFIEDS

REMINDER—This newsletter is available in an electronic version to be sent directly to your email. If you would like to receive the newsletter electronically, email Holly Werner at [email protected] and request the electronic ver-

sion of the MPM Marketer.

NOTE: Classified ads are accepted on a first come, first serve basis. The cost is $3.00 a line for non-members. The Association of-fice does not look into nor endorse the products and services offered through the Newsletter ads.

FOR SALE: Algas SDI Fire 120/60H gallon per hour vaporizers (3) available. In nice condition-updated & ser-viced every year by trained technicians. Natural gas $3000 each. Ben @ 320-491-8572 FOR SALE: Rollies Sales & Service, Inc. / Pictures http:\rolliessales.com\ New tank 4500, 5 compartment Polar Tank, New LC Meters, dual inverted hannay reels, opw nozzles, sculyl swivels, 3rd high speed reel, purge tank-comes w/ warranty. 2011 freightliner, Cummins. 2100 Gallon, repainted, 5 compartment, current testing V,K,I,P & D.O.T. dual reels & meter, 2003 freightliner, automatic transmission-2014 polar 2 axle, 5400 gallon pup, w/ extendable draw bar (like new & FET already paid) 07 Polar, 9500 4 compartment, air ride, 3” hydrolick drive pump & manifold FOR SALE: 1996 Beall 4 compartment (9500 gal) trailer. $31,200 or best offer. Call Gary 563-845-9711 FOR SALE: APW WYOTT HRS-50S Roller Grill $1000. Almost new, this roller grill w/ bun holder and menu board was purchased in 2010 for $2600 and used for only one year. Great for convenience store, food cart, charitable groups, special events and more. Would be willing to deliver within 100 mile radius of McGregor. Ron 612-961-2570 FOR SALE: JE adams dual motor 110 volt stainless steel commercial vaccum. Unit has very little use/ great condt. Dual recessed locks & user adjustable quarter mechanism for setting the price. Comes w/ several new hoses. $795. Scott 507-276-0655 FOR SALE: Scottsman CME306 Ice Machine. Standalone Ice Center, Owner’s Manual included. Good con-dition. Dimensions 24 x 22 x 28. $500 or best offer. Contact Reed at (952) 461-2251, or at [email protected] . Elko New Market, MN FOR SALE: Established gas station/repair shop/car wash business in Bagley, MN/ 3 bays w/ hoists, 2 pumps w/ gas & diesel & 24 hr computer pay on one. Rental & U-Haul also available but not included in price. All tanks etc with up to date inspection certificates. $240,000 call Dick at Grimes Realty 218-556-2882 FOR SALE: Trailer from Felling Trailer in St. Cloud, 16000#, wood platform (8x20), ramps, brakes, only used 2x. Located in Central MN, pics available $7500.00. (763)-300-2298 SPECIALIZING in the petroleum industry, Flaten Sandblasting and Paint LLC, fuel tanks, lp tanks, bulk plants, piping. Schedule your next job now with Blake @320-815-4468. FOR SALE: Petroleum Transports . Contact Dick Otterstrom– LBT Inc-Regional Sales Manager 651-402-2838. [email protected] // pictures & Specification sheets available. (1) 2009 LBT Inc-petroleum transport-9500 gallon –4 compartment (4000//1500//1000//3500) double bulk-heads-disc wheels-hose tubes –11R22.5 –air ride

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Minnesota Petroleum Marketer MPMA Newsletter Issue... · values for September 2016 delivery. These contracts traded during the five-day period ending June 2 suggest the market expects