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PMAA's weekly update on important national industry issues.

 
PMAA's Weekly Review - October 17, 2014  [WR-14-41]

 

 

In This Issue:
 

PMAA OPPOSES EPA "WATERS" DEFINITION

 

PMAA MEMO ON IRS LEVY’S

 

VINYL WRAP ADVERTISING ON CARGO TANK SHELLS COULD INCREASE INSPECTION COSTS

 

PMAA PARTNER SPOTLIGHT FEATURING: MERIDIAN ASSOCIATES, INC.

 

PMAA MEMBER SERVICES SPOTLIGHT FEATURING: AMERASSIST A/R SOLUTIONS
 

 
 

 
 

A new choice for petroleum marketers.  The Spirit brand is offered by the Petroleum Marketers Oil Company, LLC (PMOCO).

(CLICK HERE)

 
 
 

Visit us at:

WWW.PMAA.ORG


Telephone:
703-351-8000

Petroleum Marketers Association of America

(PMAA)

1901 North Fort Myer Drive

Suite 500

Arlington, Virginia 22209

PMAA OPPOSES EPA "WATERS" DEFINITION

PMAA has joined with a coalition representing a broad range of businesses, industries, and commercial interests of every size in every part of the country to voice strong opposition to the revised definition of “Waters of the United States” proposed by EPA and the U.S. Army Corps of Engineers (COE). Many petroleum marketers with bulk storage will be adversely affected by the revised definition. At the most fundamental level, the proposal as written represents an unjustified expansion of Clean Water Act jurisdiction far beyond the limits of federal regulation explicitly established by Congress and affirmed by the courts. The proposal would, for the first time, give federal agencies direct authority over land use decisions that Congress has intentionally preserved to the States. It would intrude so far into traditional State and local land use authority that it is difficult to imagine that Congress intended this outcome.

Click here to view a letter being sent by the coalition.     

PMAA MEMO ON IRS LEVY’S

Because many petroleum wholesalers must annually issue 1099Ks to their dealers, IRS agents have become more aware of how credit card settlements are processed from jobbers to dealers. As a result, when dealers become delinquent on federal taxes, we are seeing unprecedented efforts by IRS agents to place levies on dealer credit card settlement monies held by wholesalers. In some cases, these dealer settlement monies are collateral held by jobbers for future fuel deliveries. In other cases, the settlement accounts are debited when fuel is delivered; therefore, the monies are not the dealers but are the jobbers.

Last week, PMAA published a memorandum on the issues. To view the memo, click here.

VINYL WRAP ADVERTISING ON CARGO TANK SHELLS COULD INCREASE INSPECTION COSTS

Petroleum marketers who use vinyl wrap advertising on cargo tank trucks may soon find that U.S. DOT annual inspections may be much more costly for those vehicles. The U.S. DOT regulations require all non-insulated cargo tanks to undergo an external visual inspection once per year (49 CFR180.407(d)). The more costly and time consuming internal visual inspections are only required every five years (49 CFR 280.407(e)). However, the U.S. DOT regulations also provide that, if the annual external visual inspection is precluded because any part of the cargo tank wall is externally lined, coated, or designed to prevent an external visual inspection, those areas of the cargo tank must be internally inspected each year instead.(49 CFR 280.407 (d)(1)).

As a result, any coating on the outside of the tank shell that could hide corroded or abraded areas, dents, distortions, defects in welds and any other conditions, including leakage, that might render the tank unsafe would trigger internal inspections annually instead of every five years so long as the external shell of the tank is covered.

External visual inspections typically cost $350 and require the cargo tank to be out of service for one day. An internal visual inspection costs on average $750 and requires the tank to be out of service for two to three days. Whether or not cargo tank vinyl advertising wrap precludes external inspection may vary depending on the certified inspector used. PMAA is in discussions with the U.S. DOT regarding at what point is vinyl wrap advertising as well as smaller decals on the tank shell sufficient to trigger the internal inspection trigger. Until this issue is clarified by the U.S. DOT, petroleum marketers should consider the potential for additional annual inspection costs and out of service time before applying vinyl advertising wrap on the external shell of a cargo tank vehicle.

If anyone has experienced vinyl wrap triggering external inspections, please contact Mark S. Morgan, PMAA Regulatory Counsel at mmorgan@pmaa.org
  

PMAA PARTNER SPOTLIGHT FEATURING: MERIDIAN ASSOCIATES, INC.
Success Starts With Thoughtful Planning by Betsi Bixby

The industry as a whole is on a strong upswing.  You want to keep up that momentum!  But you don’t want to turn a blind eye to things that could jump up and bite you as you continue to grow.

Take your team through the following process to clarify lessons learned.  The task of the team is to 1) create a success list, 2) develop a lessons learned list with subsequent actions, 3) analyze direct competitors, and 4) identify strengths.  Then using these four lists, develop a priority action plan with benchmarks for the coming year.  Ideally, get the team off-site, undisturbed for a full day of focused brainpower.

Please read Betsi’s article in its entirety here. To learn more about PMAA’s Platinum Partner, Meridian Associates, please visit or contact them at 800.728.9008.      

PMAA MEMBER SERVICES SPOTLIGHT FEATURING:
AMERASSIST A/R SOLUTIONS

In these economic times corporate distress presents special strategic management challenges that can be caused by a number of issues.  You will find following a list of the Top Ten reasons businesses fall on hard times:

  • Revenue downturn caused by a weak economy
  • Overly optimistic sales projections
  • Poor strategic choices
  • Poor execution of what was thought to be a good strategy
  • High operating costs
  • Insufficient resources - very common
  • Unsuccessful research and development (R&D) projects
  • Highly successful competitor
  • Excessive debt burden
  • Inadequate financial controls especially in the area of A/R collections

While each case is unique, it's important you identify which one, two or more that may be affecting your business. 

AmerAssist, a PMAA Endorsed Vendor, can help in the area of financial controls. Our goal is to help you return to normalcy - once you again have control over your accounts receivable (A/R) and have a steady cash flow stream, you will regain confidence and emphasis will again be placed on growing the business while maintaining a strong balance sheet.

For more information, please visit or email PMAA’s Liaison Tom Green or by phone at 904.825.1563.
   

 

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