Kellerstrass Oil Buys Black Oil's Wholesale Business

Black Oil will retain Out West Food & Fuel retail locations

MONTICELLO, Utah -- Craig Kellerstrass and J. Burton Black, both former Western Petroleum Marketers Association (WPMA) presidents, have announced Kellerstrass Oil's purchase of Black Oil's wholesale business, reported the San Juan Record.

Kellerstrass assumed transportation of bulk products on September 1, 2011. The rest of Black Oil's wholesale business, including tankwagon and cardlock operations, were turned over on September 15, 2011, said the report.

Black Oil will remain in the retail business with four gas stations under the Out West Food & Fuel flag, serving as dealers for Kellerstrass.

Black Oil Co. is a third-generation business headquartered in Monticello, Utah.

In recent years, approximately 50% of the business volume has been on the wholesale side of the, according to the report; however, an estimated 80% of the employees have been on the retail side of the business.

Paul J. "P.J." Black started the business in the mid-1930s. In the late 1950s, P.J.'s sons took over the business. Later, all the other brothers sold out to their brother, Jim. Third-generation owners Burton and Rich Black are the two youngest children of Jim and Roberta Black.

Craig Kellerstrass is a second-generation petroleum marketer from Ogden, Utah. Kellerstrass Oil started in 1948, and serves customers in Utah, Wyoming, Idaho and Colorado. It handles more than 50 million gallons of fuel every year and serves more than 90 dealers, now including Black Oil.

Kellerstrass Oil will introduce Chevron lubricants and Sunoco racing fuel to its new customers, while still offering some of Shell's most popular lubricants, the newspaper said. Kellerstrass also sells motor fuels under Chevron, Texaco, Phillips 66 and Sinclair brands.

In the transition, most of the affected Black Oil employees have been or are being offered similar positions with Kellerstrass, said the report, with most choosing to continue their employment with Kellerstrass Oil.