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B-10 MANDATE On April 1, 2017 through September 30, 2017

the biodiesel content must be at least 10% biodiesel

ANNUAL CONVENTION March 27—29

Pg. 11

Issue #1910 March 20,2017

Minnesota Petroleum Marketer

Issue #1910 March 20, 2017

Inside this Issue:

MINNESOTA PETROLEUM MARKETERS ASSOCIATION

3244 RICE STREET ST. PAUL, MN 55126-3047

651/484-7227 800/864-3813 FAX 651/484-9189

Kevin Thoma—Editor E-Mail: [email protected]

www.mpmaonline.com

The Minnesota Petroleum Marketer (ISSN 1062-8282) is published semi-monthly by the Northwest Petroleum Association dba Minnesota Petroleum Marketers Association. Subscription cost $25.00 per year. POSTMASTER: Send address changes to Minnesota Petroleum Marketer at address above.

W-2 Phishing Scam 2

EIA Short-Term Outlook 3-4

IRS Labeling Fines 4

PMAA Update 5

Legal Corner 6

Insurance Corner 7-8

Bulk Plant Label Order Form 9

Classifieds 10

Convention Form 11

Bulletin No. 1910 -2- March 20, 2017

W-2 PHISHING SCAM

Department of Revenue warns of W-2 email phishing scam targeting payroll and human resource professionals

ST. PAUL, Minn. – The Minnesota Department of Revenue is warning all employers of a dangerous W-2 email phishing scam targeting human resources and payroll departments. The scam has evolved beyond the corporate world and is spreading to other sectors, including school districts, tribal organizations, and nonprofits.

Payroll and human resource professionals across the country have received emails purporting to be from an organiza-tion executive requesting employee W-2 information. The email often looks official to unsuspecting employees who then send the requested information, disclosing private employee information to an unauthorized party.

Nationally, about 100 businesses employing 126,000 individuals were hit by scammers last year. By comparison, about 80 businesses have already been targeted in the first month of this tax season.

This scam puts employees’ personal information at risk. Disclosing the information to unauthorized parties can lead to an increase in tax refund fraud as criminals use that information to file fraudulent returns in Minnesota and elsewhere. If an employee’s W-2 or other private information is stolen, it can lead to longer waits for refunds as we work to verify the employee’s tax return, and ensure the right refund goes to the right person.

“These tax information scams have evolved and grown more sophisticated over the last couple of years,” stated Reve-nue Commissioner Cynthia Bauerly. “Employers across Minnesota need to be on high alert for scams and have their employees trained on what to do if they think something is suspicious when dealing with requests for employee personal information.”

The department encourages all businesses to notify their employees of the scam and have procedures in place to en-sure that W-2 and other personal information is not disclosed to unauthorized parties.

Stop. Connect. Confirm. When a request for private/sensitive information is made, Stop. Connect. Confirm.

1. Stop – Stop for a moment before complying with the request and sending that information. 2. Connect – Connect with the person who sent you the request by phone or by walking over to see them. Do not

respond to the email to get confirmation of the sender’s identity. The sender may be a criminal who has dis-guised their identity by spoofing your colleague’s email address.

3. Confirm – Confirm with the executive requesting the information that their request is legitimate.

Businesses can print and display it in their human resources and payroll departments to remind employees to Stop. Connect. Confirm. if a request for employee personal information is made.

If your employer notifies you that your W-2 or other personal information has been compromised:

Review the recommended actions by the Federal Trade Commission at www.identitytheft.gov or the IRS at www.irs.gov/identitytheft.

File a Form 14039, Identity Theft Affidavit if your tax return is rejected because of a duplicate Social Security number or if instructed to do so by the Internal Revenue Service.

Tax preparers should be on alert Additionally, tax professionals should be aware of a scam targeting their software and asking them to “unlock” their sus-pended software accounts. The scam attempts to get the preparers login and password credentials, which can compro-mise private taxpayer information. Tax professionals should report these scam emails to their tax software provider and the IRS by emailing a plain text version of the scam email to [email protected].


EIA SHORT-TERM ENERGY OUTLOOK

U.S. crude oil production averaged an estimated 8.9 million barrels per day (b/d) in 2016. U.S crude oil produc-

tion is forecast to average 9.2 million b/d in 2017 and 9.7 million b/d in 2018.

Benchmark North Sea Brent crude oil spot prices averaged $55 per barrel (b) in February, largely unchanged

from the average in January.

EIA forecasts Brent crude oil prices to average $55/b in 2017 and $57/b in 2018. West Texas Intermediate (WTI) crude oil

prices are expected to average about $1/b less than Brent prices in the forecast. NYMEX contract values for May 2017 de-

livery traded during the five-day period ending March 2 suggest that a range of $46/b to $63/b encompasses the market ex-

pectation for WTI prices in May 2017 at the 95% confidence level.

Implied global petroleum and liquid fuels inventories increased by an estimated 0.5 million b/d in 2016. EIA expects a rela-

tively balanced oil market in the next two years, with inventory builds averaging 0.1 million b/d in 2017 and 0.2 million b/d

in 2018.

U.S. monthly average regular gasoline retail prices are expected to increase from $2.30/gallon (gal) in February 2017 to

$2.51/gal in July before falling to $2.24/gal by December. U.S. regular gasoline retail prices are forecast to average $2.40/

gal in 2017 and $2.44/gal in 2018.

Natural gas U.S. dry natural gas production is forecast to average 73.7 billion cubic feet per day (Bcf/d) in 2017, a 1.4

Bcf/d increase from the 2016 level. This increase reverses a 2016 production decline, the first annual decline

since 2005. Natural gas production in 2018 is forecast to rise by an average of 4.1 Bcf/d from the 2017 level.

In February, the average Henry Hub natural gas spot price fell by 45 cents per million British thermal units

(MMBtu) from the January levels to $2.85/MMBtu. Unseasonably warm temperatures in the Lower 48 states

contributed to lower prices.

New natural gas export capabilities and growing domestic natural gas consumption contribute to the fore-

cast Henry Hub natural gas spot price rising from an average of $3.03/MMBtu in 2017 to $3.45/MMBtu in

2018. NYMEX contract values for May 2017 delivery traded during the five-day period ending March 2 suggest

that a range of $2.15/MMBtu to $3.82/MMBtu encompasses the market expectation for Henry Hub natural gas

prices in May 2017 at the 95% confidence level.

Electricity, coal, renewables, and emissions

Total U.S. electricity generation from utility-scale plants averaged 11,140 gigawatthours per day in 2016.

Forecast generation declines by 0.7% in 2017 and then grows by 1.9% in 2018.

EIA expects the share of U.S. total utility-scale electricity generation from natural gas to fall from an aver-

age of 34% in 2016 to 32% in 2017 as a result of higher expected natural gas prices. The natural gas share of


EIA OUTLOOK CONT’D

IRS FINES

EIA expects the share of U.S. total utility-scale electricity generation from natural gas to fall from an aver-

age of 34% in 2016 to 32% in 2017 as a result of higher expected natural gas prices. The natural gas share of

generation is then expected to rise slightly to 33% in 2018. Coal’s forecast generation share rises from 30% in

2016 to average 31% in 2017 before falling back to 30% in 2018. Nonhydropower renewables are forecast to

provide 9% of electricity generation in 2017 and 10% in 2018. The generation share of hydropower is forecast

to be relatively unchanged from 2017 to 2018 at 7%, and the nuclear share of electricity generation declines

slightly from almost 20% in 2017 to 19% in 2018.

EIA expects growth in coal-fired electricity generation to contribute to a 4% increase in coal production in

2017. Coal production is expected to be unchanged in 2018. EIA estimates the delivered coal price averaged

$2.11/MMBtu in 2016, a 5% decline from the 2015 price. Coal prices are forecast to increase in 2017 and 2018

to $2.17/MMBtu and $2.21/MMBtu, respectively.

Wind energy capacity at the end of 2016 was 81 gigawatts (GW). EIA expects capacity additions in the fore-

cast will bring total wind capacity to 95 GW by the end of 2018.

On a percentage basis, solar power is expected to be the fastest growing renewable energy source in the

forecast period, with total utility-scale capacity increasing by 44% from the end of 2016 to 31 GW at the end of

2018. With that level of growth, solar is expected to account for 1.4% of total utility-scale electricity generation

in 2018.

After declining by 1.9% in 2016, energy-related carbon dioxide (CO2) emissions are projected to decrease

by 0.2% in 2017 and then increase by 1.6% in 2018. Energy-related CO2 emissions are sensitive to changes in

IRS LEVIES HEFTY FINES FOR FAILURE TO DISPLAY DISPENSER TAX LABELS MPMA has received information that about IRS enforcement of dispenser labeling requirements. IRS fines for incorrect or missing labels are significant. The IRS requires all dyed diesel and dyed kerosene dispensers to have a specific label indicating that the fuel is for nontaxable use only. The labeling requirement has been in place for diesel dyed diesel dis-pensers since 1993 and for dyed and clear kerosene dispensers since 1998. The IRS has recently stepped up enforce-ment of the dispenser label requirements nationwide. The following IRS labels must be posted on any retail dispenser or other delivery facility (skid tank, consumer dispensers at bulk plants or card locks) where dyed diesel fuel and/or dyed kerosene are dispensed for use by a purchaser/consumer:

“DYED DIESEL FUEL, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE” or “DYED KEROSENE, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE”.

In addition, the following label must be posted on all blocked pumps that sell clear, untaxed kerosene: "UNDYED UNTAXED KEROSENE, NONTAXABLE USE ONLY".

The labels must be affixed to the dispenser in a conspicuous place within easy sight of the person dispensing the fuel either on the face of the dispenser (on both sides) or on the side of the dispenser just above the nozzle housing. The penalty for failing to display the dyed fuel notification is severe. Any seller that fails to post the required labels on any applicable dispenser is presumed to know that the fuel will not be used for a nontaxable use and may be responsible for paying the 24.4 cpg federal excise tax on the fuel (the back-up tax) and assessed a $10 fine for every gallon of fuel in the tank at the time of the violation. Heating oil dealers and petroleum marketers should check dyed diesel fuel, dyed kerosene and clear, untaxed kerosene dispensers for the proper IRS labels. If you need any of these IRS labels please contact the Association Office at 1-800-864-3813…


PMAA UPDATE

FMCSA PERMANENTLY SUSPENDS 2013 AMENDMENTS TO DRIVER 34-HOUR RESTART PROVISIONS

The U.S. Department of Transportation’s (DOT) Federal Motor Carrier Safety Administration (FMCSA) is permanently suspending amendments to the 34-hour restart provisions issued in 2013 under U.S. DOT driver hours of service (HOS) regulations. PMAA has been fighting the 2013 restart amendments since they were imposed because they remove much needed flexibility in driver scheduling by requiring longer rest periods between restart of drivers’ work week. The amendments required any 34-hour work week restart to include two consecutive 1 a.m. to 5 a.m. rest periods; limited driver’s use of restart to once per 168 hours; and required a 30 minute rest break period within the first 8 hours from the time a driver comes on duty. Only the 30 minute rest period remains in effect for long-haul drivers only. The 30 minute break period does not apply to petroleum marketers qualifying for the short-haul driver exception from keeping written hours of service log books. The written log book exception applies if drivers stay within a 100-air mile radius (115.08 statute miles) of their normal reporting location and return to that location at the end of their shift after a maximum 12 hour period on duty. In response to industry pressure, Congress temporarily suspended the controversial restart amendments in December 2014 as part of the Consolidated and Further Continuing Appropriations Act, 2015. The suspension was to remain in place until the FMCSA conducted a new study to determine whether the 2013 restart amendments actually provided any additional benefits related to driver operation, safety, fatigue and health. The Commercial Motor Vehicle Driver Restart Study, released by the FMCSA last week, concluded that the 2013 restart amendments offered no additional benefits in any of these categories. As a result, the U.S. DOT’s Office of Inspector General informed Congress in a letter last week of the study findings and the FMCSA posted a notice on its web site announcing the permanent suspension of the 2013 amendments. The FMCSA announcement means that the 34-restart provisions in effect before the July 1, 2013 amendments were finalized now apply. Drivers have been operating under those regulations since the Congressional freeze was imposed. The pre-2013 regulations now in effect allow drivers to invoke the 34-hour restart as often as they like without waiting 168 hours between restarts or including two consecutive rest periods between 1:00 a.m. and 5:00 a.m. before returning to duty. A more detailed explanation of the 34 hour restart provision changes will be discussed in a PMAA compliance Bulletin issued later this week. E15 NOT SAFE FOR OUTDOOR POWER EQUIPMENT

Yesterday, the Outdoor Power Equipment Institute (OPEI) released the results of their nationwide Harris Poll survey of 2,000 Americans showing that most are confused about fuel choices at the pump, and more consumers have incorrectly used an E15 or higher ethanol fuel in an engine not designed for it (five percent this year) compared to three percent in 2015. In 2014, OPEI launched a "Look Before You Pump" program to help educate consumers on proper fueling and, alt-hough more people (44 percent) are paying attention to fuel type that they use than in past years (35 percent in 2015), price continues to drive consumer choice when purchasing gas. In 2016, 69 percent of survey respondents reported choosing the least expensive gas whenever possible (up from 63 percent in 2015). “Hundreds of millions of pieces of legacy outdoor power equipment products are in use today that are designed and warranted to run on E10 or less fuel. Remember E15 is unlawful to use, according to the Environmental Protection Agency. With higher ethanol blends available for sale, such as E15, E30 and E85, it's up to all of us to educate consum-ers about selecting the right fuel for the right product. Consumers can no longer assume that what goes in their truck or car is right for their lawn mower, snow blower, chainsaw, generator or other piece of outdoor power equipment," said Kris Kiser, president and CEO of OPEI. Alarmingly, three in five Americans assume that any gas sold at fueling stations is safe for all of their cars as well as non-road engine products, like boats and mowers (63 percent in 2017, compared to 60 percent in 2016 and 57 percent in 2015).


INSURANCE CORNER


INSURANCE CORNER CONT’D


SPOTLIGHT PROGRAM


CLASSIFIEDS

NOTE: Classified ads are accepted on a first come, first serve basis. The cost is $3.00 a line for non-members. The Association office does not look into nor endorse the products and services offered through the Newsletter ads. FOR SALE: 2005 Freightliner LP Truck—3499 vessel, 2007 Freightliner LP Truck—3499 vessel. Details can be viewed on Arrow Bobtail website. Pirkl Gas Owatonna. Call Greg, 507-451-7380. FOR SALE: 1999 chev c7500 propane delivery bobtail, 3126 cat, 6 speed, ac, 277,000 mi, 3000 gal Westmor tank, VK-Apr 16, hydro-2015, very nice condition, ask-ing $19,950 obo, call Shane, 701-238-1281 FOR SALE: C-Store equipment for sale. We have equipment from a store closure that must go. Shelving, displays, signage, warmers, fryers, breading table, coffee equipment, etc. Call Josh for details at 507-452-4743 FOR SALE: Convenience Store located at the intersection of Hwy’s 59 & 67 in Clark-field. Many updates inside and out including complete store remodel in 2008 with new electrical, plumbing, flooring, siding, etc. LED lighting in cooler & canopy & a steel roof new in July 2014! New walk-in cooler & freezer installed in kitchen in June 2016. Kitchen sells breakfast, lunch and dinner. Also includes 2-6,000 gal. fiberglass tanks, 24-hour pay-at-the-pump, Security camera system, ATM Machine is owned, Propane Exchange program and much more! Environmental work has been completed. In-ventory is NOT included in price. $149,900. Call Jenni Shuler (320) 669-4961 WANTED: Representing a buyer looking for a C-store with gas. Seven country met-ro area preferred. Priced under $3m. Contact Scott Schultz, REMAX Results Commericial, 952-221-7419, [email protected] with potential properties.

REMINDER—This newsletter is available in an electronic version to be sent directly to your email. If you would like to receive the newsletter electronically, email Holly Werner at [email protected] and request the electronic version of the MPM Marketer.

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