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NPN Magazine March 2012

National Petroleum News (NPN) has been the independent voice of the petroleum industry since 1909 as the opposition to Rockefeller’s Standard Oil. So, motor fuels marketing and retail is not just a sideline for us, it’s our core competency.

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TOP OF THE NEWS Action alert from PMAA Washington Amendments and LUST funds at issue Two major issues at the U.S. Capitol that would impact PPMCSA members urgently need member action: In the House, an amendment to a key transportation bill would permit commercial development at rest areas along federal interstates—which has been prohibited for decades. Any member companies with interests along interstate exchanges should follow the instructions below and contact their representatives to oppose this amendment. In the Senate, an attempt to raid the federal LUST fund is in progress. Again—please follow the instructions in the memo below opposing this raid. Please let PPMCSA know of responses to these contacts at info@ppmcsa.org. The House and Senate have resumed consideration of the Highway bill and member grassroots contacts are needed. Please call House and Senate members about these two provisions: Oppose commercial rest area amendment—Senator Rob Portman (R-OH) filed an amendment (#1742) to the Senate transportation reauthorization bill to allow for commercialization of rest areas (both interstate and non-interstate). Additionally, Representatives Steven LaTourette (R-OH) and Dennis Kucinich (D-OH) also have been pushing for their rest area commercializa- tion amendment (#217). The PMAA vigorously opposes both of these ill-advised amendments. You can contact your representative and senators by going to PMAA's 1. n Refiners to U.S. House: High crude oil prices drive high gasoline prices High crude oil prices are the primary fac- tor behind high gasoline prices, American Fuel & Petrochemical Manufacturers President Charles T. Drevna told a House subcommittee. The most effective actions to help U.S. consumers would be to increase U.S. oil production, increase oil imports from Canada and reduce over- regulation, Drevna said. Drevna noted that, accord- ing to the U.S. Energy Information Administration, "only six cents of every dollar that Americans pay for gaso- line goes to the refining industry that AFPM represents. The cost of crude oil accounts for 76 cents, followed by 6 MARCH 2012 2. Legislative Action Center. These amendments represent one of the biggest threats that retailers have ever faced under a highway bill, and it is urgent that you act now. Please make sure your representative understands this imminent threat and is prepared to oppose amendment 1742 to the transportation bill, S. 1813, and amendment #217, to the House bill. Oppose raiding of LUST fund and change in LUST Tax— Senators have included a provision in the Highway bill pack- age that has bi-partisan support and support from groups like the Chamber of Commerce. The provision would not only rob the LUST Trust Fund of three billion dollars and move it to the Highway Trust Fund, it would also change the allocation of the .001 of a penny LUST tax. The change will permanently dedicate one third of the existing $.001 LUST tax to the Highway Trust Fund and two thirds to the LUST Trust Fund. The PMAA opposes this change and believes this is bad public policy. If the money is not being used for the LUST program, the LUST tax should be reduced or eliminated. Senate Majority Leader Harry Reid (D-NV) has indicated that he will seek cloture on the Senate highway bill, but he is unlikely to reach that since seven Republicans will be required for cloture passage. The PMAA urges members to contact Senators Robert Casey and Pat Toomey by dialing the Capitol Switchboard at 202-224-3121 to oppose both the raid on the LUST fund and the change in the LUST tax. taxes at 12 cents, and distribution and marketing also at six cents. "Refiners, as well as petrochemical manufacturers, are the first custom- ers of a barrel of oil and the first to be impacted when oil prices rise," Drevna said in written testimony for a March 7 hearing on gasoline prices by the House Subcommittee on Energy and Power. "Refiners don't set the price of oil any more than automakers set the price of steel, bakers set the price of wheat or restaurants set the price of cattle," Drevna added. "Oil is an international commodity that trades in the free mar- ket and its price is not controlled by its purchasers." Drevna called on the Obama admin- istration to allow increased exploration and development of vast oil and natu- ral gas resources on federal lands and in federally controlled waters to meet U.S. energy needs, create jobs and improve economic and national security. In addition, Drevna advocated approval of the Keystone XL pipeline to bring 700,000 barrels of oil a day from Canada to Gulf Coast refineries. Drevna said overly burdensome and conflicting government regulations threaten U.S. competitiveness. He said some regulations are not doing any- thing to protect the environment but only jeopardize jobs and raise consum- er costs. Examples of these are Tier 3 regulations to reduce sulfur in gasoline, greenhouse gas regulations, lengthy permitting delays, and requirements NPN Magazine n www.npnweb.com

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