Fuels

Irving Fixes Off-Spec Glitch

Reimbursing motorists for receiving lower-than-expected-octane gas
SAINT JOHN, N.B. - Irving Oil Ltd. said Friday that it has completed its review of the recently announced finding of off-specification premium gasoline arising from a malfunction of one of its loading racks at its Saint John, N.B., refinery. During the period under review, many retail customers may not have received the appropriate grade of octane, the company said, although it added that others did.

The review indicated that octane levels have been lower than expected since the beginning of 2008, but to a significantly lesser extent than in 2010. Octane levels during 2008 [image-nocss] and 2009 averaged 90.1 and 90.2, respectively, rather than an expected 91.

"When we investigated further, we discovered that one of our truck loading bays at the Saint John refinery had an automated valve malfunction," Mark Sherman, general manager of the refinery, said earlier this month. "As a result, some loads leaving the refinery were off-spec, some were on-spec. The malfunction appears to have let some regular gasoline mix with our Supreme grade, making our Supreme and mid-grade blends of gasoline off-specification at some fuel stations."

The malfunctioning equipment was taken out of service and as of August 13, all shipments of Supreme gasoline were on-specification. At no time were there any safety or environmental concerns related to the automated valve malfunction, the company added.

"Irving Oil will now offer a program of reimbursement for our customers who purchased Irving-branded Supreme and Plus gasoline at those affected Irving-bannered sites in 2008 and 2009," said Sherman. "A reimbursement fund will be established and customers can visit our website for information on how to participate."

As of August 30, customers can access information regarding the reimbursement fund and obtain a claim form by going to www.irvingoil.com. The deadline for submission of the claim form to Irving Oil is September 10, 2010. Following the claim period, Irving Oil will review the claims submitted and reimburse valid claims from the fund in a fair manner, it said.

On August 17, 2010, Irving Oil established a reimbursement program for customers who purchased Supreme and Plus-grade gasoline this year at affected Irving-bannered sites in New Brunswick, as well as a few stations in Nova Scotia, Prince Edward Island and Quebec. This 2010 reimbursement program ended at 5:00 on Friday.

A total of nearly 8000 customers have received reimbursement from this program, the company said.

"On behalf of Irving Oil, I would like to express our regret that this situation occurred," said Sherman. "The problem has been corrected, and quality control initiatives are underway to ensure that this type of incident is not repeated. Our intention is to reimburse our customers as quickly and fairly as possible."

Click herefor more details on Irving Oil's website.

Irving Oil is a family-owned and privately-held regional energy processing, transporting and marketing company headquartered in Saint John, New Brunswick, Canada, with U.S. marketing operations in Portsmouth, N.H. With more than 7,000 employees, more than 700 fueling locations, operations from 13 marine terminals and a delivery fleet of tractor-trailers, Irving Oil serves wholesale, commercial and retail customers in Eastern Canada, Quebec and New England. It operates Canada's largest refinery, in Saint John.

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