HAPPY THURSDAY READERS!

First, I am sorry to report to readers from the Lafayette area that the Bendel Service Station on 1500 Pinhook Road in Lafayette, which was on the website's "Ethanol Free Gas Station List" was removed today. It was reported by a customer and reader of my site that he was switching to ethanol gas; however, I spoke with one of the owners yesterday and they are putting the business up for sale next week. The station was removed from the website's list.

Also, for Shreveport readers, the Fultz Service Center located at 101 Southfield Road in Shreveport was told by his distributor, Smith Oil that he could no longer supply him with non ethanol regular and mid grade. He has only Premium grade non ethanol gas currently. I told the owner that I was rather surprised to hear this as Smith Oil gets it's ethanol free gas from the Teepco Terminal south of Shreveport. I was told by a Citgo PR Manager over a month ago that they supply this terminal with non ethanol gas, all grades, through an exchange agreement with Conoco/Philips in Westlake, near Lake Charles. More to follow on this.

You recall I explained in a blog last week of my attempt to have the St. John Parish Council approve a resolution to ask our Parishes Louisiana and US Congressional delegations to help us in getting Louisiana's major refineries sell non ethanol gas. I explained that the Council failed to act on my proposal after the Council Chairman read a letter from Marathon Oil's Garyville Refinery Plant Manager in staunch opposition to my proposed resolution. I would like to now post the letter from Marathon here (I had to copy the letter from a scanned copy since I did not have an original digital copy, so the Marathon symbol and the Marathon Manager's signature does not appear on this copy):

A.J. Anderson
Manager
Louisiana Refining Division

Marathon Petroleum Company LLC
P.O. Box AC
155 Sugar Cane Road
Garyville, LA 70051
Telephone 985/535-2241
FAX 985/536-7587

Natalie Robottom, President
St. John the Baptist Parish
1801 W. Airline Hwy.
LaPlace, LA 70068

Dear Natalie:

RE: Resolution to Mandate Refinery Supply of Non-Ethanol Gasoline

Thank you for sharing information on the Tangipahoa Parish resolution that urges Congress to
require refineries to supply non-ethanol gasoline. While likely well intended, the resolution is in conflict with federal renewable-fuel requirements. Moreover, it would increase fuel-supply complexity and has the potential to increase fuel costs for consumers. Marathon Petroleum Company (MPC) urges St. John the Baptist Parish Council not to adopt a similar resolution.

As you may be aware, the Energy Independence and Security Act enacted by Congress in 2007 requires petroleum refiners and importers to assure that nearly 14 billion gallons of renewable fuels are blended into the nation’s transportation fuels this year (2011), and that at least 36 billion gallons of renewable fuels are blended annually by 2022. As a direct result of this federal mandate, the U.S. is rapidly approaching the day when nearly all gasoline contains10% ethanol (a blend commonly referred to as “E 10”).

Most gasoline-powered vehicles and engines can operate effectively on E10; however, E10 may not be appropriate for certain applications, such as marine, vintage vehicles and some small engines. Consumers should consult the vehicle or engine owner’s manual to determine if E10 is approved for use.

MPC recognizes that E l0 is not appropriate for all engines. Accordingly, when the company converts to an E10 slate of fuels in a market, we also offer a mid-grade gasoline (90 octane, minimum) that is not blended with ethanol. It is intended for those applications where the consumer believes an ethanol-blended fuel is not appropriate.

In many markets, one or more other suppliers may also offer a non-ethanol fuel, depending on consumer demand. Imposing an additional mandate requiring all refineries to supply gasoline without ethanol would further complicate fuel-supply logistics and impose additional, unnecessary costs.

MPC opposes adoption of any resolution that could lead to additional fuel mandates. Instead, we believe free-market competition will best serve the needs of consumers

Sincerely,

A.J. Anderson
Manager Louisiana Refining Division
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In a future blog, I will post a rebuttal letter which I developed in response to this Marathon letter. My rebuttal was sent last week and was sent to the St. John Parish President and each Parish Council Member and also a copy to the Marathon Plant Manager.

"Pete"