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February 17, 2006
EPA Closer to Rescending Oxy Rule
EPA has issued
two final rules that set the dates for cancelling a federal 2%
oxygenate requirement for RFG.
One two-part
rule will remove the requirement in all areas but California by
May 6. The same rule also forbids the blending of ethanol RFG
with oxy- free RFG during warmer months when VOC-control periods
are in effect.
Exceptions
for retailers: during the summer only, one grade of RFG may replace
another grade if there is a supply problem. A swap will be allowed
on two occasions, for up to 10 days at a time. The retailer must
notify EPA before the commingling takes place.
The second
rule removes the 2% oxy requirement for California 60 days after
the rule is published in the federal register. Both rules were
signed yesterday and generally are published a week later so the
California rule should take effect in late April.
February 13,
2006
Explorer Pipeline to phase out MTBE and high-sulfur shipments
Shippers
who transport products along the Explorer Pipeline, a key artery
serving major Midwest markets from the Gulf Coast, confirm that
the pipeline will phase out shipments of MTBE gasoline to markets
from Houston to Dallas by May 1.
The news effectively
means that Explorer will no longer be handling MTBE gasoline in
its system. Shipments of gasoline with MTBE to markets north of
Dallas were stopped last year.
Shippers also
confirm that Explorer is ceasing shipments of high-sulfur diesel
fuel at the end of March -- after its ninth pumping cycle. Explorer
is laying plans to ship the ultra-low-sulfur diesel that is mandated
for use later this year. Explorer will continue to transport what
shippers refer to as the x-grade low-sulfur diesel fuel.
Explorer's
decision to stop shipping high-sulfur diesel doesn't necessarily
mean the product will not be available. The fuel will have to
be purchased at the refinery gate from producers still making
it and then transported via trucks or other proprietary pipelines.
Gasoline shippers
say Explorer will also permit shipments of RBOB into Houston and
Dallas starting on April 10.
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