OPMCA Connection - Keeping You Informed!
OPMCA Connection keeps you informed and current on regulations from all state and national agencies as well as laws pertaining to the petroleum marketing/c-store industry.
OPMCA STAFF
Candace McGinnis
Executive Director 
Candace@opmca4you.com 





Hannah Fite
Director of Member Services  
Hannah@opmca4you.com 





OPMCA  
6420 N. Santa Fe, Suite B
Oklahoma City, OK 73116
Phone: (405) 842-6625 
(800) 256-5013 
Fax: (405) 842-9562
2017-2018 Board of Directors
Brian Lohman, Chairman  
 ASAP Energy Inc.

Mark Cross 
Cross Oil Company

Jerry Davidson
Pete’s Corporation

Jason Flinn 
Flowers Oil Company

Mike Gramm  
Speedy's, LLC 

Kurtis Hutchinson
Hutchinson Oil Company

John Netherton
Danielson Fuel Services

Tommy Shreffler
OnCue Marketing, LLC
 
Rob Toth
Coffeyville Resources
The 2018 OPMCA Convention only TWO MONTHS AWAY!
The 2018 OPMCA Convention will be held on May 1st, with the Oklahoma Super Trade Show the following day on May 2nd. We have worked hard to make this year's convention activities new and exciting! Don't miss out on the fun and register before it is too late! Online registration is now open.
Wednesday, Feb. 28, 2018
  • ABLE Licensing Reminder
  • 2018 OCC Requirements
  • Reminder: Oil Spill Liability Tax Effective March 1st
  • Reminder: IRS Field Inspectors Check Dispensers for Proper Labeling
  • IRS Requirements for Tax Free Sale of Clear Kerosene from a Dispenser
ABLE Licensing Reminder - Expect Lengthy Wait Times
Although some laws regarding full strength alcohol sales in 2018 may not have been finalized yet, it is VITAL anybody who plans to carry ANY alcohol (including 3.2% product) begin the licensing process as soon as possible to avoid wait times.
The current wait time is 60-90 days to issue a license but this wait time will dramatically increase as October 1, 2018 approaches. The earlier you apply, the easier it will be to obtain licensing.

Click HERE for the Interim License Application

From now until September 30, 2018, an INTERIM license is available through the Oklahoma ABLE Commission. An INTERIM license allows a retailer to purchase full-strength beer and wine to be placed in storage, not available to the public, until 12:01 a.m. on October 1, 2018. An INTERIM license will become a PERMANENT license on October 1, 2018. Interim applications must be submitted by mail or in person at the OKC ABLE Commission offices, located at 3812 North Santa Fe, Suite 200, OKC, OK 73118. Tulsa and McAlester offices are enforcement offices only. 
Any stock (including 3.2% alcohol) in a retailer's inventory on October 1, 2018, will AUTOMATICALLY be considered "full point liquor" by Oklahoma law. Stores who have not obtained licensing will be unable to sell or keep stock of alcohol on location.

Please click HERE to view frequently asked questions and answers from the ABLE Commission regarding licensing and application.

More information can be found on the ABLE Commission website , or by calling the ABLE office at (405) 521-3484. 
2018 OCC Requirements
NEW REQUIREMENTS FOR UST OWNERS & OPERATORS OCTOBER 13, 2018

October 13, 2018 is the deadline for new operation and maintenance requirements for owners and operators of underground storage tank systems for inspections of overfill prevention equipment, spill prevention equipment testing, containment sump testing, testing of release detection equipment, and walkthrough inspections. OCC has posted an information sheet and forms you can download at no cost from their website. Please note that some of these requirements begin October 13, 2018, but some must have the first inspection and/or test conducted by October 13, 2018. For complete information and to download the free forms go to the Classes, Forms and Guidance tab on the Petroleum Storage Tank Division's webpage at www.occeweb.com and click on the Compliance link.
Liquid Tightness Tests for Spill Buckets and Containment Sumps: Click HERE

Overfill Equipment Inspection Recordkeeping form: Click HERE

Release Detection Testing Recordkeeping form: Click HERE

30-Day Walkthrough Inspection Checklist: Click HERE


Below are the new release detection testing and/or inspection requirements taking place in 2018. The sections below briefly cover each new requirement as well as explain how testing/inspection can be accomplished.  

Overfill Prevention Equipment Inspection
[ OCC Rule: 165:25-2-39, Federal Register: Volume 80, Number 135, July 15, 2015, Pg. 41579 ]
By October 13, 2018, overfill protection equipment must be inspected for proper operation at least once every 3 years. When inspecting, owners and operators must at a minimum ensure the overfill prevention equipment is set to activate as the correct level in the tank and will activate when regulated substances reach that level. The first inspection must be conducted by October 13, 2018.

"For overfill prevention equipment inspections, owners and operators must use manufacturer’s requirements or a code of practice developed by a nationally recognized association or independent testing laboratory. Manufacturer’s requirements are an option only when manufacturers have developed inspection requirements for their overfill prevention equipment that determines the device is set to activate at the appropriate level in the tank and will activate when the regulated substance reaches that level. As of this final UST regulation, EPA is aware of one code of practice that contains procedures for inspecting overfill prevention equipment: Petroleum Equipment Institute (PEI) Recommended Practice (RP) 1200 (“PEI RP 1200”), Recommended Practices for the Testing and Verification of Spill, Overfill, Leak Detection and Secondary Containment Equipment at UST Facilities. "

Spill Prevention Equipment Testing
[ OCC Rule: 165:25-2-39, Federal Register: Volume 80, Number 135, July 15, 2015, Pg. 41577 ]
By October 13, 2018, spill prevention equipment must be tested for liquid tightness at least once every 3 years or use a double-walled spill bucket with periodic interstitial monitoring that is monitored at least every thirty (30) days. The first test must be conducted by October 13, 2018.

"For spill prevention equipment that must be tested once every three years, this final UST regulation requires owners and operators to conduct testing using vacuum, pressure, or liquid methods. In addition, the test must be conducted in accordance with manufacturer’s requirements or a code of practice developed by a nationally recognized association or independent testing laboratory. The manufacturer’s requirement is an option only when the manufacturer has developed requirements for testing the tightness of their spill prevention equipment. As of the publication date of this final UST regulation, EPA is aware of one code of practice that contains procedures for testing spill prevention equipment: PEI RP 1200, Recommended Practices for the Testing and Verification of Spill, Overfill, Leak Detection and Secondary Containment Equipment at UST Facilities. In addition, EPA is providing implementing agencies flexibility to allow other methods they determine to be as protective of human health and the environment as the manufacturer’s requirements or a code of practice. This option allows alternatives in case codes of practice and manufacturer’s requirements are not available for testing spill prevention equipment."

Annual Operation & Maintenance Tests for Release Detection Equipment
[ OCC Rule: 165:25-3-6.21, Federal Register: Volume 80, Number 135, July 15, 2015, Pg. 41581 ]
Beginning October 13, 2018, the electronic and mechanical components of release detection equipment must be tested for proper operation in accordance with manufacturer’s instructions or use a code of practice developed by a nationally recognized association or independent testing laboratory. A test of proper operation must be performed at least annually and, at a minimum, cover the following components and criteria as applicable to the facility.
(1.) Automatic tank gauge and other controllers: test alarm, verify system configuration, test battery backup;
(2.) Probes and sensors: inspect for residual buildup, ensure floats move freely, ensure shaft is not damaged, ensure cables are free of kinks and breaks, test alarm operability and communication with controller;
(3.) Automatic line leak detector: test operation to meet criteria in 40 CFR 280.44(a) by simulating a leak;
(4.) Vacuum pumps and pressure gauges: ensure proper communication with sensors and controller (Refer to PEI 900 Section 8 (8.5.3.4.2) ; and
(5.) Hand-held electronic sampling equipment associated with groundwater and vapor monitoring; ensure proper operation.
Owners and operators must maintain records of the annual operation tests for 3 years. At a minimum, records must list each component tested, indicate whether each component needed to have action taken and describe any action taken to correct the issue.

"Owners and operators must meet the release detection operation and maintenance requirements according to one of the following: Manufacturer’s instructions; a code of practice developed by a nationally recognized association or independent testing laboratory; or requirements determined by the implementing agency to be no less protective of human health and the environment than the two options listed above. These requirements are consistent with options for other operation and maintenance activities in this final UST regulation. EPA reviewed PEI’s final Recommended Practices for the Testing and Verification of Spill, Overfill, Leak Detection and Secondary Containment Equipment at UST Facilities (RP 1200) and is including it in this final regulation as an option for meeting the annual release detection equipment testing requirements."

Containment Sump Testing
[ OCC Rule: 165:25-3-6.25, Federal Register: Volume 80, Number 135, July 15, 2015, Pg. 41580 ]
By October 13, 2018, containment sumps used for interstitial monitoring of piping must be tested for liquid tightness at least once every 3 years or use double-walled containment sumps with periodic interstitial monitoring of the space between the 2 walls of the sump at least every 30 days (on installations containment sumps must be tested at installation and then every 3 years thereafter). The first test must be performed by October 13, 2018.

"For containment sumps that require testing at least once every three years, this final UST regulation requires owners and operators conduct testing by using vacuum, pressure, or liquid methods. In addition, the test must be conducted in accordance with manufacturer’s requirements or a code of practice developed by a nationally recognized association or independent testing laboratory. The manufacturer’s requirement is an option only when the manufacturer has developed testing requirements for their containment sumps that ensure their containment sump is tight. As of this final UST regulation, EPA is aware of one code of practice that contains procedures for testing containment sumps: PEI RP 1200, Recommended Practices for the Testing and Verification of Spill, Overfill, Leak Detection and Secondary Containment Equipment at UST Facilities, and is adding this code of practice to the final UST regulation. In addition, EPA is providing implementing agencies flexibility to allow other methods they determine to be as protective of human health and the environment as the manufacturer’s requirements or a code of practice. This option allows alternatives in the event that a code of practice and manufacturer’s requirements are not available for testing containment sumps."


30-Day Walkthrough Inspections
[ OCC Rule: 165:25-1-60, Federal Register: Volume 80, Number 135, July 15, 2015, Pg. 41576 ]
By October 13, 2018, owners and operators of UST systems must begin conducting 30-day and annual walkthrough inspections. Walkthrough records must be maintained on site for 3 years. The first walkthrough inspection must be performed by October 13, 2018.
(1.) Every 30 days all spill prevention equipment and release detection equipment must be inspected (except spill prevention equipment at UST systems receiving deliveries at intervals greater than 30 days may be checked prior to delivery). Containment sumps and any hand-held release detection equipment, such as tank gauge sticks, must be inspected annually.
(2.) Records should include a list of each area checked, whether each area checked was acceptable or needed action taken, a description of any actions taken to correct issues, and delivery records if spill prevention equipment is checked less frequently. Airport hydrant systems must meet the additional walkthrough inspection requirements (see 40 CFR 280.252(c) for specifics).

"In addition, this final UST regulation allows owners and operators to conduct operation and maintenance walkthrough inspections according to a standard code of practice developed by a nationally recognized association or independent testing laboratory or according to requirements developed by the implementing agency. The inspections must check equipment in a manner comparable to the walkthrough inspection requirements described above."

Temporary Out of Use (TOU) Tanks
[ OCC Rule: 165:25-2-133, Federal Register: Volume 80, Number 135, July 15, 2015, Pg. 41639 ]
Beginning October 13, 2018, tank systems that are temporary closed for 3 months or less are not required to meet spill testing and overfill inspections, however, they are required to:
(A) Continue to monitor for leaks by performing release detection,
(B) Perform monthly walkthrough inspections,
(C) Perform annual inspections and tests of release detection equipment, and
(D) Perform 3-year containment sump testing on containment sumps used for interstitial monitoring of piping.

Beginning October 13, 2018, tank systems that are empty to less than one inch (1”) of residual fluid are not required to maintain the following:
(1.) Spill prevention testing,
(2.) Overfill prevention inspections,
(3.) Release detection,
(4.) Annual release detection equipment testing and inspections,
(5.) Monthly walkthrough inspections, and
(6.) Three-year containment sump testing on containment sumps used for interstitial monitoring of piping.

If you have any further question regarding this matter, please contact our Compliance staff. See contact information below.

Darryl Cole – (405) 522-4810
Brock Stuber – (405) 521-6397
Brian McDonald – (405) 522-2989
Reminder: Oil Spill Liability Tax Effective March 1st
A tax extenders package was included in the recently-passed budget bill. One tax provision important to petroleum marketers is a prospective renewal of the Oil Spill Liability Tax (OSLT) effective on March 1, 2018 through Dec. 31, 2018. The 9 cents per barrel OSLT tax is imposed on crude oil at the refinery gate. Proceeds from the OSLT go into a trust fund used by the Coast Guard to pay for clean-up after accidents like oil spills. PMAA has been fighting against the tax being applied retroactively so this is welcome news to petroleum marketers. This is also good news because suppliers who continued to charge the tax even when it expired have indicated they will reimburse jobbers if the tax isn’t applied retroactively. Click here to view a PMAA issue brief on the OSLT issue.

Reminder: IRS Field Inspectors Check Dispensers for Proper Labeling
IRS field agents are always on the lookout for dispenser labeling violations. The IRS requires labels for dyed diesel, dyed kerosene and untaxed clear kerosene dispensers. IRS fines for faded, incorrect or missing dispenser labels are significant - $10 for every gallon of fuel in the storage tank connected to the noncompliant dispenser. The labeling requirement has been in place for diesel dyed diesel dispensers since 1993 and for dyed and clear kerosene dispensers since 1998. 

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. Many petroleum equipment vendors sell IRS compliant labels online. 

IRS Requirements for Tax Free Sale of Clear Kerosene from a Dispenser
The IRS has specific rules for the tax-free sale of undyed kerosene from a dispenser which applies to all petroleum marketers making such sales. Under IRS regulations, no tax is due on kerosene used in a space heater. Since red dye required for nontaxable kerosene can damage various space heater components, only clear kerosene may be used. However, all clear kerosene is taxed at the terminal rack. The only way for customers to file a claim for the tax paid on clear kerosene is on their annual
income tax return. In order to relieve customers of the trouble of filing a claim for the tax paid, the IRS allows tax free sales of clear kerosene from a dispenser under certain conditions. Petroleum marketers should comply with the following requirements to sell tax free, clear kerosene for use in space heaters:

Credit or Refund Process - The retail vendor selling the undyed kerosene is the only party allowed to file a claim for a credit or refund of the federal excise tax provided the following conditions are met: 
  • The undyed kerosene is sold for a non-taxable use, 
  • The undyed kerosene is dispensed from a “blocked pump” 
  • The retail vendor has an IRS 637 UP certificate (available at www.irs.gov.) 
  • The claim is filed on IRS Form 8849 or 4136, and 
  • The retail vendor writes “KEROSENE” at the top of the form submitted to the IRS.
  • A credit or refund may be submitted every seven days for claims exceeding $100.  

Purchase Receipt Requirement - For purchases of five gallons or more, the vendor must: 

  • Record the date of sale, name and address of the buyer, and 
  • The number of gallons of kerosene sold to the buyer. 

Blocked Pump Definition - A blocked pump is a dispenser that meets the following conditions: 

  • The dispenser is used to make retail sales of undyed kerosene for use by the buyer for any non-taxable use. 
  • The dispenser is identified with a legible and conspicuous notice stating:

  “UNDYED UNTAXED KEROSENE, NONTAXABLE USE ONLY”

  • The dispenser it is in a fixed location, and 
  • The dispenser meets either of the following conditions: 

  • The dispenser cannot reasonably be used to dispense fuel directly into the tank of a diesel-powered highway vehicle or train. This can be achieved by using a short hose that cannot reach the tank of a diesel-powered highway vehicle or the use of barriers that prevent the vehicle from reaching the hose, OR
  • The dispenser is locked by the vendor after each sale and unlocked by the vendor only in response to a buyer’s request for undyed kerosene for use as fuel other than in a diesel-powered highway vehicle.

Federated Insurance Risk Management Academy
Offered April 24-26, 2018

Federated Insurance is offering complimentary risk management training for petroleum marketers on April 24-26, 2018. Through this valuable session, you will discover methods you can use immediately to help protect profits by reducing risk at your business.

Companies that are the most successful at controlling losses and protecting profits have integrated risk management into their overall company culture. Many have designated a key person as their risk manager. This person is supported by top management and is both responsible and accountable for identifying loss exposures and implementing risk management solutions.

These seminars are designed for individuals in positions of risk leadership including owners, operations management, service management, risk management, or human resources. The key to a successful business is implementing and leading a strong risk management culture, so attendees should be in a position to take action!

Class size is limited to 25. For more information or to reserve your spot in the upcoming session, please contact Royetta Spurgeon at Federated Insurance by calling 507.455.5604, or e-mailing drm@fedins.com.
Federated Insurance February HR Question of the Month
Send Employee I-9 Expiration Reminder?
 
Question
One of our current employees is a lawful permanent resident and her permanent resident card expires on 2/22/2018 according to the I-9 that she completed when she was hired. My question is whether we, as her employer, can send her a reminder of this upcoming expiration date?
Response
Yes, you can. We are not aware of any law prohibiting the employer from reminding the employee of the upcoming expiration of her employment eligibility documentation and of the need to produce current evidence of work authorization prior to the date of expiration and in fact, it is a good idea to do so. Note that only documents listed as acceptable on the most current version of the Form I-9 can be accepted to verify her employment eligibility (as opposed to the List of Acceptable Documents as may have been in effect at the time of hire – it has changed over the years). You may wish to give the employee in question a copy of the current List of Acceptable Documents along with the reminder notice so that she is aware of what documents the employer can accept. It is available on the last page of the Form I-9 itself which is available online at USCIS (see also " Acceptable Documents ").
Note that if the employee in question does not produce documentation by 2/22/18 that evidences continued employment eligibility, the employer cannot employ her after that date. Want to learn more?. Click here to listen to our podcast on Acceptable Documentation.

Federated Insurance February Educational Articles
Risk Management Corner: Drive SAFER