CHICAGO -- Biodiesel issues, government mandates, price volatility, acquisition strategies and real-estate development were standout topics at this year's fall SIGMA conference, which wrapped up this past Sunday.
In one of the more lively discussions at its Saturday legislative committee meeting, members of the Society of Independent Gasoline Marketers of America reviewed the murky issue of biodiesel and what strategy the association should take regarding potential mandates.
To aid in the discussion, the committee brought in Richard [image-nocss] Moskowitz, assistant general counsel and regulatory counsel for the American Trucking Association (ATA)to provide his group's perspective. Moskowitz presented a view that mandates are inevitable given the popularity of the issue among state and federal lawmakers. When we argue against a mandate, we lose, he said. When we talk about what the mandate should be, then we make headway.
Moskowitz suggested that SIGMA consider joining its position on a federal mandate for biodiesel, one that specified a 5%-or-less blend of bio-additives and that was tied to available supply (to circumvent what one SIGMA member called wacky prices).
Though members present did express concern about supporting any mandate, the meeting leaders agreed the topic warranted more discussion and fact gathering. They tabled the matter until a later date.
During the three-hour meeting, SIGMA members heard additional updates on issues including blending compliance, underground storage tank (UST) reforms, skyrocketing credit-card fees and UL (Underwriters Laboratories Inc.) approval of E85 (85% ethanol, 15% gasoline blend) dispenser systems.
Throughout the weekend, attendees participated in educational sessions and meetings on topics of interest. At one session, Paul Nazzaro, director of petroleum affairs for the National Biodiesel Board, talked about concerns over the quality of product. A recent study found a significant degree of product failing specifications, he said, noting how incorrect glycerin levels accounted for a third of those failures.
In a session on acquisitions, Tom Kelso, managing director for Baltimore-based Matrix Capital Markets Group Inc., talked to an estimated 100 attendees about merger and acquisition trends. Chief among these trends included single-store owners either entering the business or upgrading, jobbers acquiring competitors for their entire companies or for selected assets and the acquisition of major oil company properties. Todd Anderson, petroleum industry head for Citi Petroleum Finance Group, New York, concurred with Kelso about the types of transactions his company has been seeing and reviewed different types of financing possibilities for buyers and sellers.
Then in a session on real-estate development, Jim Fisher, CEO of IMST Corp., Houston, advised about 75 attendees on the benefits of site assessment. He detailed a case where a developer bought a piece of property with the intent of building an upscale c-store with gasoline facility, only to find out that area did not warrant such an investment.
Attendance numbers for the conference overall were at record levels this year, with 675 retailer and supplier registrantsSIGMA's second highest, according to Molly Martin, manager of education and communications for the association. She said the group's biggest numbers came with its 40th anniversary eight years ago, which she said was considered a special event.
Meeting chairman Grady Chronister, a Springfield, Ill.-based retailer, said attendance was up due to interest in the topics addressed at the conference, inclusive of pricing volatility, capital financing, acquisitions, real-estate development and questions surrounding alternative fuels.
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