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Author Topic: Iowa gets it. Back to Topics
Hannie59

All-Star Author
Appleton

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Message Posted: Jul 5, 2013 12:49:34 PM

New laws go into effect in Iowa that prohibit oil companies from dictatorial practices in their supply agreements in the great state of Iowa.

It will prevent the following oil company abuses that have been commonly deployed:

New supply agreements will not be allowed to:

Restrict installing a blender pump;
Restrict using current equipment from offering higher blends, like E15, E85, and B20;
Restrict ethanol or biodiesel blends from being advertised;
Restrict the locations where a retailer may offer the higher blends (like under a canopy); and
Restrict payment for higher blends to cash only (no credit cards).

It does not modify any existing contracts.



[Edited by: Hannie59 at 7/5/2013 12:53:30 PM EST]
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krzysiek_ck
Champion Author Illinois

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Message Posted: Jul 12, 2013 8:40:27 AM

tdioiler wrote: "And start with those forcing higher levels of E fuels?"

How exactly are the higher levels of Ethanol being forced?

tdioiler wrote: "Then its a level playing field."

What about Big Oil Subsidies, I don't see you whining about them.

[Edited by: krzysiek_ck at 7/12/2013 8:41:56 AM EST]
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tdioiler
Champion Author Detroit

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Message Posted: Jul 11, 2013 11:11:06 PM

Well if they are going to ban dictatorial practices, why don't they start with the EPA mandates then? And start with those forcing higher levels of E fuels?

Then its a level playing field.
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dassfg
Champion Author Fort Worth

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Message Posted: Jul 8, 2013 9:33:32 AM

what is going to stop Iowa from dictating (through the political process) that we use corn based Ethanol
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goldseeker
Champion Author West Virginia

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Message Posted: Jul 7, 2013 6:26:54 AM

The playing field needs to be leveled everywhere.
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nurdco
Champion Author Colorado Springs

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Message Posted: Jul 7, 2013 12:53:51 AM

Nice ideas but only in their state in Renewed with modifications or New agreements
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Hannie59
All-Star Author Appleton

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Message Posted: Jul 6, 2013 8:42:37 AM

brerrabbitTX said: All correct statements. As branded sites contracts expire they will not be renewed and those retailers will be free to do whatever they like and the branded stations will disappear in Iowa. Not saying that is good or bad, just that it is what will happen.

He knows what he's talking about, so this is probably accurate. I cannot maintain his level of neutrality, however. I'd have to agree with Whiskey and say this is probably a good thing :)

I would also contest the statement that oil branded stations increase supply and pricing stability. If that is the case, we have monopolistic practices. Oil companies ought to do fine with brand contracts that can comply. These points of compliance, frankly, should be just that. If as brerrabbit says, they just walk away.. means that they can't handle any sort of compromise. I fail to see how an oil company could not still benefit from having a contract with a station just because they can't blatantly squash ethanol in the process.

I do understand why these contracts exist and am not against them, there are some instances where they are probably beneficial to the station owners. But Iowa keeping some things in check is not a bad thing.

[Edited by: Hannie59 at 7/6/2013 8:53:36 AM EST]
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WhiskeyBurner
Veteran Author Illinois

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Message Posted: Jul 6, 2013 1:49:04 AM

Hmmm, that could work for local brands and smaller franchises like Casey's, Thornton's, even Speedway and other companies expand for a greater market share if say BP, Phillips, Citgo, ect pull out.
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brerrabbitTX
Champion Author Houston

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Message Posted: Jul 5, 2013 12:59:41 PM

All correct statements. As branded sites contracts expire they will not be renewed and those retailers will be free to do whatever they like and the branded stations will disappear in Iowa. Not saying that is good or bad, just that it is what will happen.

Only effects will be credit card fees will rise for dealers, no site improvement capital put into the market by oil companies and supply contracts will be spot based not firm contracts. All things that are out of site to fuel buyers and unimportant until there is a shortage in the market. Prices will be more volatile and supply can be interrupted from time to time.

Nothing the market cannot overcome, just a reality that will take place.
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