FPCQ0310

Petrogram News for Florida’s Petroleum and Convenience Store Industry

Florida Floorri Fl Flo riid da Petroleum Peetr P Pet trol oleeuum Marketers Maar M ark rketer eter et e s & Convenience Coonv nven enie nie ienncce Store Sttor oree Association, Asso As soci ciat ation, ioon, n, Inc. Inc nc

Fall 2010

A New Era for FPMA Ed Hinson Succeeds Ken Wood as FPMA Chairman

BP Branded Marketers in Florida have our support and sincere thanks for all their efforts.

We want to take this opportunity to recognize the efforts of our team of branded marketers in local communities across the U.S. Your support, service and dedication during this time are deeply appreciated.

We’re making things right.

Meanwhile, our team of scientists and technicians in the Gulf are working 24/7 on the cleanup. To date, we’ve invested billions of dollars toward our overall efforts and have set aside $500 million to the Gulf of Mexico Research Initiative.* And moving forward, the newly formed Gulf Coast Restoration Organization will be coordinating our long-term efforts to make things right.

*Learn more at www.bp.com or at www.restorethegulf.gov

DOSAL TOBACCO CORP. MIAMI, FLORIDA 1-800-434-7172

www.dosal.com

Petrogram

2010-11/13 Board of Directors

Features 09 010 017

C-Store/Food Supplier Chair John Tiffany TimeSaver Food Stores

019

Directors

Steve Kottak

Columns 07 015 018

Mark Radosevich PetroProperties & Finance Charlie Roberts Eli Roberts & Sons Oil Co. Past Chair Charlie Rooney Rainey Cawthon Dist

Mary Smallwood Insurance Issues Are You Red Flag Compliant?

021

Bo Orr Enviro Corner Environmental Existentialism

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Mark Gornto Harbour Petroleum Noel Hardy Port Consolidated

Ed Hinson Barrister’s Counsel Deadline Extension: Secondary Containment Standards

Dennis Combs Combs Oil Co. Mike Doerr Tri-County Oil Co.

Chairman’s Communiqué Together We Can Meet Our Challenges

Rosemary Anderson J.H. Wiliams Oil Co. Max Alvarez, Jr. Sunshine Gasoline Dist.

Len Baccaro Protect Your Business Get to Know Your Legislators

Membership James Clardy Clardy Oil Co. Motor Fuel/Lubes John Sanchez Blaylock Oil Co.

FPMA Rolls Out Newly Branded Sunshine Food and Fuel Expo at 2010 Convention!

Your FICO Score Don’t Make It a Four-Letter Word

Chair-Elect Stephanie Hinton Jim Hinton Oil Co. Treasurer Summit Shah Southeast Petro Distributors

Welcome, New Board Members 2010-2011/13 Board of Directors

Executive Officers Chairman Ed Hinson Hinson Oil Co.

contents

is published for the Florida Petroleum Marketers and Convenience Store Association 209 Office Plaza Drive Tallahassee, FL 32301 Phone: 800-523-9166 Fax: 850-877-5864 Web: www.fpma.org

Fall 2010 Volume 26, No. 3

Jill Smith Out and About Mark Radosevich

And More…

14 25 0

Advertisers’ Marketplace0 Index of Advertisers/Advertiser.com

Jill Smith TERRA-COM Environmental Charlie Taylor Taylor Oil Co. Christine McKnight Wiles Automated Petroleum Immediate Past Chairman Ken Wood Medallion Convenience Stores

Cover and convention/expo photos by Dan Higgins, photographer. Learn more at www.danhigginsphotographer.com.

Ed and Ken

show off thei

r surfing skill

s

PMAA Director Carl Berner Berner Oil Co. Linda Thomas VP of Finance/Convention Director linda@fpma.org Mary Garden Director of Communications mary@fpma.org Adam Selvidge Director of Member Services/Assistant Trade Show Director adam@fpma.org

Petrogram is published by

Naylor, LLC 5950 NW 1st Place Gainesville, FL 32607 Phone: 800-369-6220 Fax: 352-331-3525 Web: www.naylor.com Publisher: Kathleen Gardner Editor: Heather Williams Project Manager: Peri Brauth Sales Manager: Melissa Zawada Marketing: Kaydee Currie

Advertising Sales: Jessica Alexander, Kenny Alsabrook, Shaun Greyling, Erik Henson, Rick Jones, Anthony Land, Diane Markey, Eric Singer, Paul Walley, Jamie Williams Design & Layout: Naylor, LLC Advertising Art: Allan Lorde Petrogram is published quarterly for the Florida Petroleum Marketers and Convenience Store Association.

Subscription rates are $25 per year for members and $40 per year for nonmembers. Postmaster: Send Address changes to FPMA, 209 Office Plaza Drive, Tallahassee, FL 32301.

Neither the Florida Petroleum Marketers and Convenience Store Association nor the editor of this publication necessarily endorses the statements made in advertising or contributed articles and are not liable in

any way for anything that appears herein. Always contact your own personal advisers before taking action on articles appearing in this publication. ©2010 Naylor, LLC. All rights reserved. The contents of this publication may not be reproduced by any means, in whole or in part, without the prior written consent of the publisher. For information on advertising opportunities in Petrogram, please call Book Leader Doug Pratt at 800-369-6220. Please support our advertisers; they made this publication possible.

OCTOBER 2010/FPC-Q0310/9909

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Chairman’s COMMUNIQUÉ

Together We Can Meet Our Challenges

Ed Hinson

A

nother year has come and gone and we faced many challenges in the past year. I am sure that the next year will offer just as many challenges.

The biggest change in the near future is the resignation of Jim Smith. As most of you are now aware, Jim resigned effective September 15, 2010. Jim has been a strong advocate for our association, and he has worked tirelessly on many issues facing our industry. Jim has been a friend and mentor to me through the years and I will miss him. I join all the members of the FPMA in wishing Jim and Cindy the best of luck in their future endeavors.

The convention and expo held in Orlando at the Gaylord Palms Resort was very well attended. I would like to thank the FPMA staff for their hard work in making this a success. We need to continue to thank the staff for the hard work they do throughout the year.

Just in case you missed my exciting, brilliant speech at the banquet, I want to again repeat my goals for the next two years. These are things that are very important to the livelihood of our association and they will require hard work from all of our members.

First we need to become financially stable. Obviously we need to increase revenue to operate and thrive in today’s economy. There are currently three opportunities available to members to help the association increase revenue. Federated Insurance, Abilita Telecommunications and Access to Money are three companies that I encourage members to use.

The association will earn a percentage of the revenue for new accounts from these companies.

Secondly, we need to increase membership. New members pay dues and infuse the association with new thoughts and ideas. The larger we become as an association, the more visible we are in Tallahassee. I encourage each of you to invite marketers, dealers and suppliers who are not members to join.

Last, we need to communicate!!!

Two, or three or four, heads are always better than one. I, along with the staff at the FPMA office, welcome your ideas and will work diligently to address your concerns.

I would like to thank the members of the association for putting your trust in me. I have grown up in this industry, and many of you have known me my whole life. It is an honor to be the chairman of an association that Hinson Oil Company has been a member of since 1968. ❍

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. . . e u l a V

one way we stand out!

Building Brand Value: s Marathon employs 33 Territory Managers and 5 Program Territory Managers to deliver value to our customers. s Marathon has excellent supply with truck loading racks at our 87 terminals, all operated with the driver in mind. s Marathon has 7,700 miles of pipeline, which ensures stable and exible supply. s Marathon is the 5th largest reďŹ ner in the United States, owning and operating seven reďŹ neries with a combined capacity of 1 million barrels per day.

For Brand and Wholesale opportunities visit www.marathonpetroleum.com www.marathon.com

Welcome, New Board Members 2010-2011/13 Board of Directors Officers/Executive Committee

Directors

Chairman Ed Hinson

Immediate Past Chairman Ken Wood

George Nail

Hinson Oil Co.

Medallion Convenience Stores

Gate Petroleum

Chair-Elect Stephanie Hinton

Max Alvarez, Jr.

Mark Radosevich

Sunshine Gasoline Dist.

PetroProperties & Finance

Jim Hinton Oil Co.

Treasurer Summit Shah

Rosemary Anderson

Charlie Roberts

Southeast Petro Dist.

J.H. Wililams Oil Co.

Eli Roberts & Sons

C-Store/Food Supplier Chair John Tiffany

PMAA Director Carl Berner

Past Chair Charles Rooney

Berner Oil Co.

Rainey Cawthon Dist.

TimeSaver Food Stores

Membership Chair James Clardy

Dennis Combs

Jill Smith

Combs Oil Co.

TERRA-COM Environmental

Mike Doerr

Charlie Taylor

Tri-County Oil Dist.

Taylor Oil Co.

Clardy Oil Co.

Motor Fuel/Lubes John Sanchez Blaylock Oil Co.

Christine Wiles Mark Gornto

FPMA Staff

Harbour Petroleum

Automated Petroleum & Energy Co.

Linda Thomas VP of Finance/Convention Director

Noel Hardy Port Consolidated Petrogram

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FEATURE

FPMA Rolls Out Newly Branded Sunshine Food Night at the Races

Night at the Races winners: Karen Thompson, Christine Wiles, Tammie Gardner, Thomas Hinton

YEO Volunteers: Chase Smith, Jill Smith, Michelle Mendoza, David Mendoza

Golf Tournament

First place: Ed Hinson & Chris Almond

Second place: Marc Helms & David Hall

Mike Scaringella accepts third-place award from Ken Wood

Best golfing attire!

Awards Breakfast & Opening Session

Marc Gomes & Jake Hemingway, Scholarship Winner

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Marc Gomes & Morgan Smith, Scholarship Winner

View past issues of Petrogram online at www.fpma.org/publications_petrogram-magazine.cfm

and Fuel Expo at 2010 Convention!

Expo, Vendor Appreciation & Silent Auction

Outstanding Recruiter Contest Winners Christine McKnight Wiles, APEC, recruited the highest number of new members and receives free full registration and free lodging at the 2011 Convention and Expo. Pat Codd, CITGO, recruited members who paid the highest amount of dues and received a check for $500 in appreciation for his efforts. Our thanks to both Christine and Pat!

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GALA Entertainer Tom Wilson wows the banquet attendees!

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Thanks to Convention Sponsors for Their Support!

Banquet Entertainment McLane Suneast

Attendee Tote Bags TERRA-COM Environmental

Chairman’s Cocktail Reception Marathon Petroleum

Trade Show Reception Federated Insurance and DB Trucking

Fellowship Breakfast BP Products Golf Citgo & The FGS Group Golf Cart Refreshments Florida Rock and Tank Lines & Aluminum Plus

Night at the Races & Cocktail Hour Port Consolidated Gift Cards Automated Petroleum & Energy Colonial Oil Co. Commonwealth Brands Pipeline Transportation Transmontaigne Product Services

General Membership Meeting The Florida Lottery Attendee Lanyards Federated Insurance

Congratulations to Our Lucky Expo Winners!

Stephanie Hinton, Hinton Oil Co., won the Marketer Prize Drawing; and Bo Orr, Federated Insurance, won the Exhibitor Prize Drawing.

G U I L D AY, T U C K E R , S C H WA RT Z & S I M P S O N , P. A .

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View past issues of Petrogram online at www.fpma.org/publications_petrogram-magazine.cfm 7/28/10 11:42:07 PM

Barrister’s COUNSEL

Deadline Extension:

Secondary Containment Standards Mary Smallwood, GrayRobinson

I

n 1990, the Department of Environmental Protection first adopted Rule 62-761. 510, Florida Administrative Code, establishing performance standards for Category-A and Category-B underground storage tanks. The standards put in place deadlines for these older tanks to be upgraded so that they met the standards for Category-C tanks, those installed after July 13, 1998. The last in a series of upgrades required by this rule was the installation of secondary containment for all storage tanks and small diameter piping protected from corrosion on or before June 30, 1992. The rule’s deadline for upgrading to secondary containment was December 31, 2009.

While many storage tank owners and operators complied with that regulatory deadline, there were still many storage tanks continuing to operate without the upgrade to secondary containment. Following expiration of the rule deadline, the department began to take enforcement action for failure to

comply with the rule. Th at action typically involved the issuance of notices of violation and the execution of consent orders requiring either upgrade or closure. The consent orders also imposed penalties for failure to meet the rule deadline. However, as of the date of the 2010 Legislative Session, many tank owners and operators still had neither complied with the rule deadline nor had enforcement action instituted by the department. As a result, legislation was introduced to extend the deadline for installation of secondary containment.

The Legislature responded by adopting Section 49 of CS for SB 1752, which has been signed into law by Governor Crist.

In its entirety, the provision provides: The installation of fuel tank upgrades to secondary containment shall be completed by the deadlines specified in rule 62-761.510, Florida Administrative Code, Table UST. For fuel service station facilities that have orders issued by the Department of Environmental Protection before July 1, 2010, granting an extension to the deadline, the deadline shall be extended to September 30, 2011. Such facilities must be in compliance with all other state and federal regulations pertaining to petroleum storage systems.

The department has issued orders to some owners/operators pursuant to this legislation extending the deadline for installation of secondary containment.

It has taken a narrow interpretation of the legislation, however. For example, the department has taken the position that orders issued before the legislation was adopted, such as consent orders,

cannot be used to extend the deadline to September 2011. Only orders specifically issued in response to CS for SB 1752 will have that effect.

The result of the legislation is owners and operators of Category-A or Category-B tanks who were once subject to the same compliance deadlines may now find themselves in very different circumstances. Some of those entities expended the funds to install secondary containment in a timely manner before the December 31, 2009, deadline. Others who failed to meet that deadline were subjected to enforcement action. While the consent orders issued to the second category of owners/operators did extend the compliance deadline beyond the rule deadline of December 2009, it did not extend to September 2011. For the last category of owner/operators, the legislation has eliminated their potential liability for failure to meet the rule deadline and extended the compliance deadline to the third quarter of 2011.

In summary, owners and operators of Category-A and Category-B tanks find themselves in very different circumstances. While the ultimate result may not appear fair to all, it was reached as a result of a political process that concluded that an extension of the compliance deadlines was necessary to accommodate a select group of regulated entities. â??

Mary Smallwood is a partner in the statewide law firm of GrayRobinson and practices in the Tallahassee office. She is the former general counsel and director of the Department of Environmental Protection. Reach her at 850-577-9090 or mary.smallwood@gray-robinson.com.

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Nobody Refines Petroleum Insurance Like Federated When it comes to insurance for petroleum marketers, nobody refines it like Federated.

Federated has been a reliable source of insurance for petroleum marketers for over 85 years— pumping out continuous innovations to meet the ever-expanding needs of the petroleum distribution industry. In the past, when coverage from other insurers dried up, Federated continued to provide the tough-to-come-by coverages.

Our unique Petro-Pac® program, first introduced in 1978, provides many protection benefits to petroleum marketers unavailable elsewhere. Our constant interaction with oil marketer associations and client councils keep it that way.

Call your local Federated representative or your association office to find out more about an insurance program refined to protect businesses like yours.

It’s our business to protect yours®

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FEATURE

Your FICO Score

Don’t Make It a Four-Letter Word Len Baccaro, American Equipment Finance

C

redit scores are a hot topic and can make or break your ability to borrow and grow your business. I’ll try to keep it simple.

What Is FICO? FICO stands for Fair Isaac Company, an industry leader in decision management. It uses predictive analytics to help businesses make decisions and manage risk. FICO has become the worldwide standard measure of credit risk. Scores come from the three major reporting agencies, but all have “branded” their own. These credit reporting agencies purchase the information from Fair Isaac Corporation.

The scores rank-order people by how likely they are to pay their credit obligations. You would be amazed at what is being tracked – FICO can drill down to your daily behavior patterns and let a lender know that you might be getting into trouble.

But how does all of this relate to me as a retailer and small business owner?

It’s simple; your ability to attain credit, manage payments and grow your business are all based on credit. The better

your score, the more capital you can attract. It is critical, however, that you understand what makes it better and what makes it a fourletter word.

Good vs. Bad A good score is over 700, and a very good score is over 750 (out of 850).

The difficulty with labeling scores as good, average, etc., is that in good economic times, the word “good” may have meant 675, where in more difficult lending environments, a lender’s opinion changes and a 675 is now a “poor” score.

Let’s Break It Down Let’s take look at what makes up your score. Thirty-five percent of your score is based on your payment history. The model has no idea if you make $50,000 or $500,000 a year in income and the model does not account for excuses!

Th irty percent of your score is based on how much you owe on all of your

The Top-Four Credit Report Faux Pas 1. Obligations are not paid on time: Pay your bills when they arrive.

2. Too much credit card debt: Pay down some of your credit card debt at least 30–60 days before applying for a loan.

3. Be careful with home equity loans: Twenty years ago there were very few equity loans, but they now count against your revolving balances, just as credit cards do.

4. Don’t have your credit run by multiple lenders: Talk to a few lenders and decide who you want to do business with – then apply.

accounts and how much credit is available. The more you owe (when compared to your limits), the lower your score. The model does not care that you don’t believe in multiple credit cards… it just knows that you are maxed out on what you have available.

Only about 15 percent of your score is based on how long you have had a credit profile, and another 10 percent accounts for new credit that you apply for. The final 10 percent is a combination of the credit mix that you have.

FICO is here to stay. I suggest that you do everything in your power to make it a “nice” four-letter word! Educate yourself and execute a plan to improve your score today. ❍ Len Baccaro is V P of American Equipment Finance in Warren, NJ. They are active members of PEI, FPMA, NASM and many other industry associations – and they exhibit at a variety of trade shows throughout the year. You may contact Len at lbaccaro@aefllc.com, or call him at 908-542-9330, ext 202.

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Insurance ISSUES

Are You Red Flag Compliant?

I

dentity thieves drain accounts, damage credit and can leave victims deep in debt. The cost to businesses – left with unpaid bills racked up by scam artists – is equally staggering.

To help combat identity theft, the federal banking agencies and the FTC jointly issued the Red Flag Rule.

Bo Orr The rule requires that certain busiFederated nesses develop a written program to Insurance spot the “red fl ags” of identity theft and respond if those situations present themselves. The rule became effective on January 1, 2008, and mandatory compliance was extended to December 31, 2010.

Who Must Comply?

The Red Flag Rule applies to financial institutions and creditors that maintain covered accounts. Since the rule is broad

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and encompassing, it covers a large segment of the U.S. business community – and may include individual small businesses. Businesses are required to evaluate their activities and services to determine if they fit the financial institution or creditor definitions – and if they maintain covered accounts. If your business offers financing or helps consumers get financing from others, it is quite possible that you meet the “creditor” definition and are subject to the new rule. If so, you are required to have compliance plans in place to secure nonpublic information to protect against identity theft.

What Are the Program Requirements?

The Red Flag Rule requires businesses and organizations that meet their criteria to develop and implement an Identity Theft Prevention Program (ITPP) to combat identity theft.

The ITPP must: • Include reasonable policies and procedures to identify relevant patterns, practices and specific forms of activity that are “red flags” signaling possible identity theft.

• Detect red flags that have been identified.

• Include procedures for responding appropriately to any red flags that are detected in order to prevent and mitigate identity theft.

• Ensure the program is updated periodically to reflect changes.

How Do You Get Started?

The Federal Trade Commission website offers valuable information to help you determine if the Red Flags Rule affects your operation. If you think it does, and you haven’t started a program yet, the best way to comply is to get guidance from an attorney or to hire a compliance company to oversee your program. ❍

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This article is intended to provide general recommendations regarding risk prevention. It is not intended to include all steps or processes necessary to adequately protect you, your business or your customers. You should always consult your personal attorney and insurance adviser for advice unique to you and your business. ©2010 Federated Mutual Insurance Company. All rights reserved.

View past issues of Petrogram online at www.fpma.org/publications_petrogram-magazine.cfm 6/25/09 1:53:17 PM

FEATURE

Protect Your Business Get to Know Your Legislators Steve Kottak, R.J. Reynolds Tobacco Company

W

ith a massive budget deficit looming over Florida and with tough economic times remaining a reality, legislators continue to look for new sources of revenue. The temptation to use the “quick fix” of raising taxes is difficult for some legislators in Tallahassee to resist – particularly if they do not hear from retailers, first hand, on how these decisions are hurting businesses. The huge federal and state tax increases on cigarettes and other tobacco products just last year have had a dramatic negative impact on Florida retailers, with some reporting that tobacco sales are down by as much as 30 percent.

To effectively serve their districts, legislators need to know the opinions of their constituents and must understand how their votes and choices impact the retail community and other businesses they represent. Members of FPMA are a valuable resource of information for state representatives. That’s why it’s important to stay current on proposed legislation and speak out on these issues with elected officials.

Being politically active and building relationships with legislators is no longer a luxury, but a necessity. I want to thank FPMA and many of its members who are doing just that. Your activity can help shape legislative and regulatory

outcomes and continues to lay the groundwork for future success. With this involvement, you have the ability to impact public policy by building and maintaining a relationship with legislators and becoming an advocate for a cause or issue. This is a great reminder for all FPMA members – to know that their voice and vote are important and powerful.

Regardless of whether you have just a few minutes or want to become deeply involved, you should begin to think of political activism as an integral part of your business model. Of

course, the relationships you build will pay dividends for many years.

Considering how important tobaccoproduct sales are to your business, a few hours spent developing relationships with legislators is a small investment to make.

Being politically active is not nearly as difficult or time-consuming as you might think. To help in this effort, R.J. Reynolds Tobacco Company created www.nocigtax.com, a one-stop resource where you can quickly and easily contact legislators through a toll-free number or a direct e-mail. You’ll also find key

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points and other information to help you with this activation.

To help build relationships, you can: • Be a registered voter – and vote.

Your vote provides you with a voice in government. Your vote matters.

• Participate in your candidate’s campaign and network with others.

Everyone has something to offer as a volunteer.

• Place signs at your business for candidates you support.

• Attend fundraisers and town hall meetings and speak out on the issues.

• Make a donation. Candidates depend on donations to run their campaigns.

• Write a letter to the editor of your local newspaper endorsing your candidate.

• Position yourself as a resource of 458155_JackOlsta.indd 1 12/2/09 8:10:34 PM information for the candidate – before and after he/she is elected.

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Enviro CORNER

Environmental Existentialism

Choice and Commitment Jill Smith, TERRACOM Environmental

I

f human existentialism is personcentered, then environmental existentialism is just that – environment-centered. Environmentironmentcentered thinking is the pursuit of identity ity and meaning amidstt the regulatory and economic pressures of society.

Existentialism requires us to step back and reflect or reassess what we havee been doing and what hat effect our actions have had on the environment, nment, on our business and on the state of Florida.

Regulation of underground petroleum storage tanks began in the early 1980s, with the Water Quality Assurance Act of 1983. The law provided for prohibition of

petroleum discharges, required cleanup, state cleanup if necessary, strict liability, and required inspections and monitoring.

The Inland Protection Trust Fund ((IPTF) was created iin 1986 to address petroleum discharges petr due to past practices du and is an excise tax an per barrel of polp lutants produced lu in, or imported in into, Florida. The int Preapproval Program Prea was implemented in 1996, aand has different programs with wi differing coverage levels and application periods, all of which ended December 31, 1998, with the exception of the Free Product Recovery Initiative and Site Rehabilitation Agreements.

The state of Florida no longer provides funding assistance for newly reported discharges. The responsible party or parties and/or their insurance providers must bear the cost for any required assessment and cleanup. As of July 2010, and per the FDEP website report, the total number of confirmed contaminated sites is 25,055, with 11,261 completed, 4,370 underway and 9,424 awaiting cleanup. The total number of program eligible facilities is 17,449, with 6,186 completed, 2,556 underway and 8,707 awaiting cleanup. For ineligible facilities, the total number of facilities is 8,711, with 5,803 completed, 1,944 underway and 964 awaiting cleanup. Per the website, there are 691 facilities with both eligible and ineligible discharges.

Finding ourselves in the year 2010, with the proactive 27-year history above, what do we reflect or assess as the result

FPMA Environmental Talking Points: The Importance of Funding Petroleum Cleanups The IPTF was created to protect Florida’s drinking water for the health and safety of its citizens. Over 90 percent of our drinking water comes from underground sources and it continues to be imperative that the state address existing contamination.

At the inception of the cleanup program, the state promised property owners that, if they would identify petroleum contamination on their property, the state would remediate the property through utilizing the designated tax dollars on petroleum committed to this trust fund.

Diversions of trust fund monies for totally unrelated purposes not only violate the promise of the Legislature to use the tax funds to assure safe drinking water but have produced other unintended consequences.

First, we have delayed cleanup by decades.

Second, we have harmed small business owners who either desire to sell their property or borrow money against it for capital improvements.

Third, we have destroyed multiple petroleum contamination cleanup companies. These companies are comprised primarily of professionals in the fields of engineering and geology. For the most part, they are small business entrepreneurs who have taken their education and expertise and applied it to preserve our drinking water and our environment. These firms cannot survive when the state raids the tax funds for unrelated purposes.

Fourth, the state is paying substantially more to clean up sites due to interruptions in program funding. In 2009, the funds were swept, causing cleanup work to be abandoned on many sites and redone at a later time, at additional cost.

The petroleum cleanup program is currently funded at $120 million, including a $23 million sweep of the fund.

Please return our “trust” in the Legislature by fully funding the Inland Protection Trust Fund and not diverting these funds.

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What helps is our collective legislative effort on behalf of the IPTF to secure what rightfully belongs to the petroleum cleanup program, and what truly makes a difference to the environment in Florida. of these efforts? As petroleum marketers, and contributors to the IPTF, is the progress acceptable? As a subset of environmental industry primes and subcontractors, can we truly say that we have

made progress on behalf of our client?

I believe careful consideration needs to be made with respect to the answers to these questions. There is no doubt that we have been subjected to regulatory

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and economic pressures, but do these pressures absolve us of environmental responsibility? I think not.

With regard to the business of a petroleum marketer, there is no way around the impact of the environment to bottom-line profits. Having tanks in or above the ground, and distributing petroleum, opens your business to increased regulatory scrutiny and financial liability. In the cost-benefit analysis of outside sales vs. inside sales, the pendulum has swung with the majority of profits being made inside the store while the major financial liability remains outside the store. With the UST technology constantly improving, the pendulum might correct itself, but only time will tell. And, while we wait for a correction, can we afford to stay in business?

To consider Florida generally, we must consider if we are protecting the most basic of natural resources, water. With 90 percent of Florida’s drinking water coming straight from Florida’s groundwater, we have a responsibility to be as environmentally proactive as possible.

If we take the total number of contaminated (eligible and ineligible) sites still waiting on cleanup (9,424) throughout the state, it is hard to make an argument that we have reached a point where we can relax in the cleanup effort.

I propose that while we examine our environmental existentialism, we make a choice to dig down deep and commit to reinvent the way we do environmental business as an industry. We have work to do, but it is not beyond what we can accomplish collectively. Big government or regulatory oversight is not the answer, and an unending wave of additional programs does not help. What helps is our collective legislative effort on behalf of the IPTF to secure what rightfully belongs to the petroleum cleanup program, and what truly makes a difference to the environment in Florida. Please note the FPMA Environmental Talking Points on page 21, and use these points to get out and contact your legislators. Together we can make a difference if we only make the choice and commit to the cause. ❍

View past issues of Petrogram online at www.fpma.org/publications_petrogram-magazine.cfm 6/17/10 10:28:44 AM

491644 Florida Lottery fp CMYK placement instructions p. 23

Out & About THE INDUSTRY

A

Mark Radosevich

t the time of this writing, the summer has entered the dog days of August and the BP oil spill has been effectively capped for several weeks and counting. I think we would all agree that it’s been a nonstop ball of fun having our industry solidly in the limelight this summer as BP worked to get the thing capped and the mess cleaned up. It’s one thing to try and keep the green wackos at bay, with their solar panels and windmills, without this thing providing them with more misguided ammunition to target our beloved petro-business.

With everything that’s gone wrong, at least the spill has provided some needed humor from the political side show that it has attracted. In June, the Wall Street Journal reported that our silver tongued president said in so many words that “he would have fired Tony Hayward, former chief executive of BP, if he worked for him.” Consider that this choice piece of bluster came from a former community organizer who never ran anything, business or governmental, prior to becoming president.

He also stated that Mr. Hayward deserved to have his “ass kicked.” Now I find that bold talk from a guy who barely rolled it across home plate when tossing out the first pitch at a Washington Nationals game last year. My money’s on Mr. Hayward, he may be small in physical stature but if he’s like most

seasoned oilmen, it’s going to take a couple of secret service guys holding him down for our girl-throwing president to deliver that ass kicking. In the Obama family, short of his ne’er-do-well brother in Kenya, Michelle’s the one I’d hate to tangle with. Bourbon Street is the appropriate venue for this Michelle vs. Tony cage match.

What this oil spill situation has needed from the very beginning is cohesive leadership and teamwork – not political grandstanding and threats.

But that won’t happen as long as the liberal mantra of “a crisis is a terrible thing to waste” prevails with the meatheads in Washington.

On a final note, I would like to invite all FPMA members to attend the Conference of Committees Meeting at the Hilton Bonnet Creek Resort, November 9 and 10. I’ve attended this event numerous times in the past and find it probably the best gathering of association membership throughout the year. I hope to see you there. Have a winning autumn and college football season. ❍ Mark Radosevich is a strong advocate of the retail petroleum industry. He is president and COO of PetroProperties & Finance, LLC, a company that offers confidential mergers and acquisition representation and growth financing services exclusively to the petroleum industry. He can be contacted at 423-442-1327 or at mark@ppandf.biz.

Mr. Radosevich is a frequent contributor of opinion articles regarding the petroleum industry. His opinions are not intended to convey the opinions of FPMA, its officers or its members.

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View past issues of Petrogram online at www.fpma.org/publications_petrogram-magazine.cfm

Index of ADVERTISERS/Advertiser.COM ACCOUNTING SOFTWARE ADD Systems ...................................................... 14 www.addsys.com

ATTORNEYS Guilday, Tucker, Schwartz, & Simpson, P.A. ........ 13 www.guildaylaw.com

BOILED PEANUTS Hawks Peanuts ................................................... 13 www.hawksboiledpeanuts.com

COMPUTER HARDWARE/SOFTWARE ADD Systems ...................................................... 14 www.addsys.com

COMPUTER SYSTEMS & SOFTWARE

PETROLEUM REFINERS & MARKETERS BP Petroleum ............................... inside front cover www.bp.com

TANK TRAILERS The Jack Olsta Co ............................................... 20 www.olstaco.com

TANKS - TRUCKS/TRAILERS

PIPE SYSTEMS Brugg Pipesystems ............................................. 14 www.brugg.com

Werts Welding ..................................................... 25 www.wertswelding.com

TOBACCO PRODUCTS

SOFTWARE/AUTOMATION ADD Systems ...................................................... 14 www.addsys.com

Dosal Tobacco Corporation ................................... 4 www.dosal.com

UST FOAM FILLING

TANK TESTING & INSPECTION Tank Tech, Inc. ...................................................... 3 www.tanktech.com

The Perma-Fill Corporation ................................. 12 www.tailoredfoaminc.com/contact/index.shtml

ADD Systems ...................................................... 14 www.addsys.com

CREDIT CARD SERVICES ADD Systems ...................................................... 14 www.addsys.com

EMINENT DOMAIN ATTORNEYS

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Gaylord, Merlin, Ludovici, Diaz & Bain ................. 20 www.gaylordmerlin.com

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ENVIRONMENTAL CONSULTANTS Atlas-Transoil, Inc. (Kleensoil) ............................. 20 www.enviroyellowpages.com/clients/1978/

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ENVIRONMENTAL REMEDIATION

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Handex Consulting & Remediation, LLC .............. 18 www.handex.com

ENVIRONMENTAL SERVICES Alpha Analytics, Inc ............................................. 20 www.alphaanalyticsorlando.com

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Let Werts Welding and Tank Service show you why SERVICE is part of our name!

FUEL SUPPLY CHAIN MANAGEMENT TransMontaigne Product Services, Inc. ..........................outside back cover www.transmontaigne.com

INSURANCE Federated Insurance ........................................... 16 www.federatedinsurance.com

Six Locations to serve you!

Wood River IL. 800-851-4452

San Antonio TX. 800-551-8265

Birmingham AL. 800-264-6437

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sanantonio@wertswelding.com

birmingham@wertswelding.com

Atlanta GA. 800-893-1511

Tampa FL. 800-886-6003

Des Moines IA. 866-610-2225

atlanta@wertswelding.com

tampa@wertswelding.com

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LOTTERY Florida Lottery ..................................................... 23 www.alottery.com

PETROLEUM DISPENSING EQUIPMENT

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Fueling Components ..............26, inside back cover www.fuelingcomponents.com GILBARCO ..............................26, inside back cover www.gilbarco.com Glasgow Equipment Service, Inc. ........................26, inside back cover www.glasgowequipment.com Guardian Fueling Technologies .......................26, inside back cover www.guardianfueltech.com Hy-Tech Petroleum Maintenance, Inc.................26, inside back cover www.hytechpetroleum.com JMP Solutions ........................26, inside back cover www.jmpsi.com MECO of North Florida ...........26, inside back cover www.mecoatlanta.com

PETROLEUM MARKETERS & SUPPLIERS Citgo Petroleum................................................... 22 www.citgo.com Marathon Petroleum Company .............................. 8 www.marathon.com Murphy Oil USA, Inc. ........................................... 25 www.murphyoilcorp.com Valero Energy Corporation..................................... 6 www.valero.com

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For Further Information Contact:

Murphy Oil Corporation is an international oil and gas company. The Company produces oil and natural gas in the United States, Canada, the United Kingdom, Malaysia, and Ecuador and conducts exploration activities worldwide. Murphy Oil USA, Inc. has two U.S. refineries in Meraux, Louisiana and Superior, Wisconsin. Murphy Oil USA also operates a network of U.S. terminals supplying fuel in 23 states. NYSE: MUR.

George Pettit 727.942.6501 727.942.3813 Fax 905 E. M. L. King, Jr. Drive, Suite 219 Tarpon Springs, FL 34689

gpettit@murphyoilcorp.com Visit our web site at: www.murphyoilcorp.com

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