ajtj99's Market Pulse

[jdaasoc]

Reformulated unleaded gas, RFG, is pretty much the standard and is what is traded on NYMEX.


Summmer gas regs, lower VOCs, ended I far as I can read from EPA web site. That will get rid of 2 grades as listd on NYMEX contracts specs.

It is that crappy oxygenated winter gas we get in Northern NJ coming up now with 10-15% less power and mileage I wish they do away with. I bolded it in detail below.

http://yosemite.epa.gov/opa/admpress.nsf/d9bf8d9315e942578525701c005e573c/ed5a062e1b421d578525707c00....

In addition, EPA waived the federal enforceability of the summer grade gasoline required under state law in California, Eastern Texas and Phoenix, Ariz. On Aug. 31, EPA waived the federal requirement for summer grade gasoline nationwide. Under normal circumstances that requirement ends in all parts of the country on Sept. 15, except for the three areas mentioned above which, under state laws, extend the requirement until Sept. 30 (Phoenix), Oct. 1 (Texas) and Oct. 31 (California). The three states have requested that EPA waive federal enforceability of these requirements.

from NYMEX contract grade details

http://www.nymex.com/rule_main.aspx?pg=27#190.04

190.03 Grade and Quality Specifications

The oil delivered shall be a hydrocarbon oil free from alkali, mineral acid, grit, fibrous or other foreign matter, meeting the specifications then in effect at the time of delivery of the Colonial Pipeline Company (Atlanta, Georgia) for:

(A) Fungible A Grade, 87 Octane Index Gasoline or any other fungible grade 87 Octane Index Gasoline listed by the Colonial Pipeline as being properly designated for sale as Reformulated Gasoline (in New York Harbor) in accordance with U.S. Environmental Protection Agency (EPA) regulations; provided, however, and notwithstanding anything to the contrary in the Colonial Pipeline Company specifications, the specifications set forth in Subsections (A)(1) through(A)(6) below shall apply for the gravity, lead content, octane, Reid Vapor Pressure, and EPA Reformulated Gasoline requirements:

(1) Gravity: A.P.I. 52 degrees minimum (A.S.T.M. Test Method D287).

(2) Lead: maximum 0.03 grams per gallon (A.S.T.M. Test Method D2599 or equivalent).

(3) Octane: (RON+MON)/2 maximum less than 91.0. All other octane specifications shall conform to the Colonial Pipeline Company specifications then in effect.

(4) Reid Vapor Pressure: Gasoline delivered pursuant to this contract shall have Reid Vapor Pressure no greater than the following maximum levels:

MONTH P.S.I.
January 15.0
February 15.0
March 13.5
April 9.0
May 9.0
June 9.0
July 9.0
August 9.0
September 1-15 9.0
September 16-30 13.5
October 13.5
November 15.0
December 15.0


Provided that, deliveries on the September contract originally nominated for delivery on or before September 15 shall not exceed 9.0 p.s.i., regardless of the time of actual delivery.

(5)(A) Gasoline deliveries shall comply with EPA Reformulated Gasoline requirements at all times, including the minimum and maximum standards set forth in 40 C.F.R. Part 80 as are in effect for downstream parties at the time and place of delivery, and shall be adjusted by the amount of any increase or decrease in such standards as required by EPA for Reformulated Gasoline sold and distributed for consumption in the New York Harbor area. Gasoline deliveries shall comply with New Jersey requirements for oxygen content for gasoline sold for consumption as are in effect at the time and place of delivery, to the extent that such State requirements are not superseded by EPA requirements for gasoline sold for consumption in Northern New Jersey.

(B) Gasoline shall be designated as VOC-Controlled Reformulated Gasoline in accordance with EPA regulations during the period April 1 through September 15, including any deliveries on the September contract originally nominated for delivery on or before September 15, regardless of the date of actual delivery.

(C)(1) All tests shall be performed in accordance with EPA regulations.

(2) Enforcement tolerances, as permitted by EPA for downstream parties, shall apply to all specifications governed by EPA regulations. Product delivered in conformance with such specifications, including enforcement tolerances, may not be rejected by the buyer as nonconforming to the specifications.

(3) A.S.T.M. refers to the American Society for Testing Materials.

(4) A.P.I. refers to the American Petroleum Institute.