MEMORANDUM
Subject:
Discussions
with
the
American
Refining
Group
re
the
Proposed
Fuel
Marker
Provisions
From:
Jeff
Herzog,
Mechanical
Engineer
Office
of
Transportation
and
Air
Quality
To:
Environmental
Protection
Agency
(
EPA),
Air
Docket
A­
2001­
28
Date:
April
24,
2004
During
January
and
February
of
2004,
we
held
conversations
with
John
Robinson
of
American
Refining
Group
(
ARG)
regarding
how
to
accommodate
ARG's
desire
for
access
to
the
envisioned
small
refiner
flexibilities
in
light
of
our
consideration
of
a
Northeast/
Mid­
Atlantic
Area
in
which
no
small
refiner
or
credit
fuel
could
be
sold
and
the
fuel
marker
requirements
would
not
apply.
I
spoke
by
phone
with
Mr.
Robinson
on
January
5th,
2004.
Paul
Machiele,
Director
of
EPA's
Fuel
Center,
and
I
spoke
with
Mr.
Robinson
on
February
11,
2004.
We
also
exchanged
EMails
with
Mr.
Robinsion
in
this
subject
on
January
15,
2004,
January
28,
2004,
and
February
11,
2004.
We
used
the
input
obtained
from
these
discussions,
and
conversations
with
other
interested
parties
(
see
related
docket
items),
in
determining
where
to
draw
the
boundary
of
the
Northeast/
Mid­
Atlantic
Area
in
order
to
maintain
ARG's
access
to
the
envisioned
small
refiner
flexibilities
while
minimizing
the
number
of
facilities
that
would
need
to
add
the
fuel
marker
and
the
volume
of
fuel
that
would
need
to
be
marked.
Mr.
Robinsion
was
also
the
distribution
list
for
a
series
of
other
E­
Mails
regarding
the
definition
of
the
Northeast/
Mid­
Atlantic
Area
between
a
broader
group
of
interested
industry
parties
(
see
related
docket
items)

Attached
are
copies
of
the
E­
Mails
that
we
exchanged
with
Mr.
Robinsion.
2
Attachments
(
3)
3
Attachment
#
1:
E­
Mail
on
January
15th,
2004
Jeff
Herzog
01/
15/
2004
10:
45
AM
To:
JRobinson@
AMREF.
com
cc:
Subject:
Request
for
you
input
on
concept
under
EPA's
upcoming
off­
highway
diesel
rule
John,
Following
is
a
draft
concept
re
how
we
might
balance
terminal
operator
concerns
re
limiting
the
need
to
install
additional
injection
equipment
to
add
a
marker
to
heating
oil
(
and
the
volume
of
heating
oil
that
must
be
marked)
and
our
desire
to
maintain
the
intended
small
refiner
flexibilities
under
EPA's
upcoming
non­
highway
diesel
(
nonroad,
loco,
and
#
2
marine)
rule:

The
area
that
would
be
excluded
from
the
marker
requirement
and
thus
in
which
the
sale
of
fuel
manufactured
under
the
credit
and
hardship
(
including
small
refiner)
provisions
of
the
offhighway
rule
would
be
prohibited
would
be:
North
Carolina,
Virginia,
Maryland,
Delaware,
New
Jersey,
Connecticut,
Rhode
Island,
Massachusetts,
Vermont,
New
Hampshire,
Maine,
Washington
D.
C.,
New
York
except
for
the
following
counties
of,
Chautauqua,
Cattaraugus,
and
Allegany,
and
Pennsylvania
except
for
the
counties
of
Erie,
Warren,
Forest,
Elk,
Cameron,
Potter,
and
McKean.
The
area
(
shaded
green)
is
illustrated
in
the
following
figure:
4
The
area
in
which
the
heating
oil
marker
would
be
required
to
be
added
at
terminals
(
and
refinery
racks),
and
consequently
in
which
small
refiner
and
credit
fuel
could
be
sold
is
the
unshaded
area
in
the
above
map.
Note
that
refiners
in
the
unshaded
area
could
sell
marked
heating
oil
to
customers
in
the
shaded
as
well
as
the
unshaded
areas.
I
would
appreciate
your
input
on
how
well
the
above
concept
would
preserve
the
intended
small
refiner
flexibilities
under
the
offhighway
diesel
rule
wrt
the
operations
of
American
Refining.
Any
information
that
you
might
be
able
to
provide
re
the
extent
of
your
nonroad,
locomotive,
and
marine
fuel
marketing
area
would
be
very
useful
in
our
consideration
of
where
to
draw
the
boundary
of
the
area.
Please
clearly
mark
any
materials
that
you
might
provide
to
us
which
you
consider
confidential
as
CBI.
Anything
not
labeled
as
CBI
will
be
placed
in
the
public
docket.
We
are
currently
in
the
process
of
preparing
a
draft
final
rule
for
review
by
the
Office
of
Management
and
Budget.
Therefore,
we
would
appreciate
working
through
this
issue
with
you
at
your
earliest
convenience.

Thanks
for
your
consideration
Jeffrey
A.
Herzog,
Mechanical
Engineer
United
States
Environmental
Protection
Agency
National
Vehicle
and
Fuel
Emissions
Laboratory
Assessment
and
Standards
Division
2000
Traverwood
Drive
Ann
Arbor,
Michigan,
48105
Phone:
(
734)
214­
4227
Fax:
(
734)
214­
4816
E­
Mail:
herzog.
jeff@
epa.
gov
5
Attachment
#
2:
E­
Mail
on
January
28th,
2004
Note:
Attachment
sent
by
Mr.
Robinsion
is
Confidential
Business
Information
and
hence
is
not
publicly
available.

John
Robinson
<
jrobinson@
amref.
com>
01/
28/
2004
02:
48
PM
To:
Jeff
Herzog/
AA/
USEPA/
US@
EPA
cc:
Subject:
RE:
Latest
thinking
on
definition
of
Northeast
exclusion
area
(
re
the
NR
heating
oil
marker
issue)

Jeff,

I
have
sent
to
you
today
via
Fed­
X
our
thoughts
on
the
recent
marker
proposal.

Best
Regards,

John
W.
Robinson
American
Refining
Group
V.
P.
of
Sales
phone
814­
368­
1234
fax:
814­
362­
7311
e­
mail:
jrobinson@
amref.
com
­­­­­
Original
Message­­­­­
From:
Herzog.
Jeff@
epamail.
epa.
gov
[
mailto:
Herzog.
Jeff@
epamail.
epa.
gov]
Sent:
Wednesday,
January
28,
2004
2:
38
PM
To:
MELeister@
MAPLLC.
com;
Andrea.
Grant@
piperrudnick.
com;
sallen@
gwec.
com;
John
Robinson;
ddoane@
ilta.
org;
EGustafson@
epamail.
epa.
gov
Subject:
Latest
thinking
on
definition
of
Northeast
exclusion
area
(
re
the
NR
heating
oil
marker
issue)

Folks,
To
better
match
distribution
patterns,
EPA
is
considering
assigning
the
following
8
Eastern
most
states
in
West
Virginia
to
the
exclusion
area:
Jefferson,
Berkeley,
Morgan,
Hampshire,
Mineral,
Hardy,
Grant,
and
Pendleton.
These
are
the
counties
in
the
"
handle"
of
West
Virginia.
Any
thoughts
that
you
might
have
on
this
would
be
appreciated.

Best
regards
Jeffrey
A.
Herzog,
Mechanical
Engineer
United
States
Environmental
Protection
Agency
National
Vehicle
and
Fuel
Emissions
Laboratory
Assessment
and
Standards
Division
2000
Traverwood
Drive
6
Ann
Arbor,
Michigan,
48105
Phone:
(
734)
214­
4227
Fax:
(
734)
214­
4816
E­
Mail:
herzog.
jeff@
epa.
gov
­­­­­
Forwarded
by
Jeff
Herzog/
AA/
USEPA/
US
on
01/
28/
2004
02:
36
PM
­­­­­

Jeff
Herzog
01/
23/
2004
04:
23
PM
To:
MELeister@
MAPLLC.
com,
Andrea.
Grant@
piperrudnick.
com,
sallen@
gwec.
com,
JRobinson@
AMREF.
com,
ddoane@
ilta.
org,
jhuber@
nora­
oilheat.
org>,
EGustafson@
Buckeye.
com,
BBrown@
ColPipe.
com
cc:

Subject:
Latest
thinking
on
definition
of
Northeast
re
the
NR
heating
oil
marker
issue)

Gentlefolk,
Following
is
my
latest
draft
concept
re
how
we
might
balance
terminal
operator
concerns
re
limiting
the
need
to
install
additional
injection
equipment
to
add
a
marker
to
heating
oil
(
as
well
as
concerns
regarding
limiting
the
volume
of
heating
oil
that
must
be
marked)
and
our
desire
to
maintain
the
intended
small
refiner
flexibilities
under
EPA's
upcoming
non­
highway
diesel
(
nonroad,
loco,
and
#
2
marine)
rule:

Under
the
current
draft,
the
areas
that
would
be
excluded
from
the
marker
requirement
and
thus
in
which
the
sale
of
fuel
manufactured
under
the
credit
and
hardship
provision
of
today's
rule
would
be
prohibited
are:
North
Carolina,
Virginia,
Maryland,
Delaware,
New
Jersey,
Connecticut,
Rhode
Island,
Massachusetts,
Vermont,
New
Hampshire,
Maine,
Washington
D.
C.,
New
York
(
except
for
the
counties
of
Chautauqua,
Cattaraugus,
and
Allegany),
and
Pennsylvania
(
except
for
the
counties
of
Erie,
Warren,
Mc
Kean,
Potter,
Cameron,
Elk,
Jefferson,
Clarion,
Forest,
Venango,
Mercer,
and
Crawford).

The
area
in
which
the
heating
oil
marker
would
be
required
to
be
added
at
terminals
(
and
at
refinery
racks),
and
consequently
in
which
small
refiner
and
credit
fuel
could
be
sold
is
the
unshaded
area
in
the
attached
map.
I
would
appreciate
any
input
that
you
might
have
on
this
draft
concept.

There
is
two
specific
issues
that
I
would
appreciate
input
on
>>>
If
it
is
unlikely
that
refiners
would
market
small
refiner
or
credit
fuel
in
South
Carolina,
I
would
like
to
designate
SC
as
an
exclusion
area
State.
The
current
draft
has
SC
outside
of
the
exclusion
area
because
heating
oil
use
drops
off
significantly
as
you
move
South
from
North
Carolina
to
South
Carolina.
However,
there
is
still
a
sizeable
(
albeit
relatively
much
smaller)
volume
of
heating
oil
used
in
South
Carolina.
Also,
would
it
be
more
appropriate
to
assign
the
Eastern
most
~
8
counties
in
the
"
handle"
of
Western
Virginia
to
the
exclusion
area.
7
Please
let
me
know
if
there
is
anyone
else
that
you
think
it
would
be
good
to
have
input
from
on
this
issue.

Thanks
for
your
consideration
Draft
Northeast
Heating
Oil
Marker
and
Small
Refiner/
Credit
NRLM
Exclusion
Area
(
Embedded
image
moved
to
file:
pic11969.
jpg)

Jeffrey
A.
Herzog,
Mechanical
Engineer
United
States
Environmental
Protection
Agency
National
Vehicle
and
Fuel
Emissions
Laboratory
Assessment
and
Standards
Division
2000
Traverwood
Drive
Ann
Arbor,
Michigan,
48105
Phone:
(
734)
214­
4227
Fax:
(
734)
214­
4816
E­
Mail:
herzog.
jeff@
epa.
gov
8
Attachment
#
3:
E­
Mail
on
February
11,
2004
John
Robinson
<
jrobinson@
amref.
com>
02/
11/
2004
04:
22
PM
To:
Jeff
Herzog/
AA/
USEPA/
US@
EPA
cc:
Rick
Kucharski
<
rkucharski@
amref.
com>
Subject:
RE:
NR
rule
exclusion
area
concept
We
will
stay
with
you
plan
as
outlined
and
go
with
adding
the
fuel
marker.
Have
you
any
details
on
this
marker?
Type,
supplier,
amount?

Thanks,

John
W.
Robinson
American
Refining
Group
V.
P.
of
Sales
phone
814­
368­
1234
fax:
814­
362­
7311
e­
mail:
jrobinson@
amref.
com
­­­­­
Original
Message­­­­­
From:
Herzog.
Jeff@
epamail.
epa.
gov
[
mailto:
Herzog.
Jeff@
epamail.
epa.
gov]
Sent:
Wednesday,
February
11,
2004
4:
18
PM
To:
John
Robinson
Subject:
NR
rule
exclusion
area
concept
Importance:
High
John,

Have
your
folks
come
to
a
conclusion
regarding
which
approach
you
would
prefer
wrt
the
NR
rule
exclusion
area
concept?
If
not,
do
you
have
a
date
that
you
expect
to
be
able
to
get
to
us
by?

Thanks
Jeffrey
A.
Herzog,
Mechanical
Engineer
United
States
Environmental
Protection
Agency
National
Vehicle
and
Fuel
Emissions
Laboratory
Assessment
and
Standards
Division
2000
Traverwood
Drive
Ann
Arbor,
Michigan,
48105
Phone:
(
734)
214­
4227
Fax:
(
734)
214­
4816
E­
Mail:
herzog.
jeff@
epa.
gov
