Bismarck Tribune - North Dakota News - Some fuel terminals have short-term outages

Some fuel terminals have short-term outages

Aug 28, 2008 - 04:07:11 CDT

By BLAKE NICHOLSON
Associated Press Writer

Industry officials say they are mystified by fuel shortages at terminals in the Upper Midwest in recent days, but they expect enough supplies for the Labor Day holiday weekend.

Terminals have run out of fuel in West Fargo and Grand Forks in North Dakota; Alexandria, Minn.; and Sioux Falls, S.D.

Officials are trying to figure out why.

"That's the million-dollar question," said Dawna Leitzke, executive director of the South Dakota Petroleum and Propane Marketers Association.

Dozens of tanker trucks lined up in West Fargo on Wednesday, after a new batch of fuel was delivered.

Burl Ingebretsen, a truck driver for Matson Oil Co. of Moorhead, Minn., said he waited in line in West Fargo for 10 hours. By the time it was his turn, Magellan posted a sign saying it was out of regular gas.

"We transport both gas and diesel, so I'm going to get diesel," Ingebretsen said. "I'm not going to wait here all day and come away empty-handed."

Ingebretsen said he had time to catch up on his reading. "I had been on vacation for a week, so I caught up on reading newspapers," he said.

Bruce Heine, a spokesman for Magellan Midstream Partners LP, which runs a network of pipelines and distribution terminals, said gas and diesel were being delivered to Sioux Falls, West Fargo and Alexandria, and diesel to Grand Forks. The terminal in Grand Forks was still without gas.

Heine said the pipeline is not to blame for any shortage.

"We don't own the (fuel) inventory in our system," he said. "If we don't have adequate supply to match up with demand, then we encounter some short-term outages."

Heine said he is confident there will be enough gas to cover demand during the upcoming holiday weekend, though "it may require (fuel tanker) drivers to go farther to get it."

Heine declined to speculate on why the supplies have been short. Jake Reint, a spokesman for the Flint Hills Resources refinery in Rosemount, Minn., one of the pipeline suppliers, said he was not aware of any supply problems.

"We are meeting our planned commitment to deliver products to the Magellan line," he said.

Mike Rud, president of the North Dakota Petroleum Marketers Association, said industry officials are investigating what is behind the supply glitches, especially since demand for fuel has been down this summer.

"We're being told demand is outstripping supply at this time," he said. "Many of us are having a hard time believing that."

Last summer, tight fuel supplies prompted Gov. John Hoeven to grant several extensions of the 15-hour work day for commercial truckers hauling fuel, so they could drive farther to fill their trucks without going over their limit. South Dakota and Minnesota put similar service-hour waivers in place for truck drivers.

The federal Environmental Protection Agency agreed to waive certain restrictions on Canadian gasoline imports to help with the fuel crunch, at Hoeven's request.

Rud and Leitzke said they have not yet seen a need to request similar measures this summer, but they said supplies could be tight for several weeks.

"We're being told that the next six to eight weeks could be touch and go from our sources," Rud said. "At this point in time, we're kind of taking a wait-and-see approach."

Hoeven spokesman Don Canton said the governor would consider such moves if asked. He said the governor's office also has been trying to get to the bottom of the fuel supply issues but is not aware of any refinery problems.

(Associated Press writer Dave Kolpack contributed to this report from Fargo.)

News > State

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Comments

THOROUGHLY DISGUSTED wrote on Sep 4, 2008 9:36 AM:

" There is no math to do. Read
G reedy
R etailers
E xtort
E xorbitant
D ollars "

dothemath wrote on Sep 3, 2008 7:52 PM:

" Oil has dropped over 30.00 dollars per barrel. Meanwhile Gas prices in Bismarck have dropped .20 cents. If that happens 4 more times oil will be free and gas will have dropped .80 and still be 3.00 per gallon. This just does not add up. "

wrote on Sep 3, 2008 5:51 PM:

" So.....the long weekend is over and Hurricane Gustav didn't knock out any oil rigs.
Why isn't the price of gas coming back down? Oh yeah...it is---everywhere else but here in Bismarck.
Go figure!!! "

NDGuy wrote on Sep 3, 2008 3:06 PM:

" D, Im with you. Complaining doesnt seem to help but it does make me feel better. So here, for the little its worth is my complaint: OH WOW!! The governor has been trying to get to the bottom of the fuel supply issue and can't figure out why there is a shortage. Now there's a news flash. Nobody is saying there is a shortage according to the article yet prices are up because there is no fuel in the pipeline. HHMMMM, Gremlins? Please, somebody in the legislature or AG's office or State's Attorney's office, just follow the money. How many wholesalers serve Bismarck/Mandan? How many dealers OWN the stations in Bismarck/Mandan? Who is setting the prices here in Bismarck/Mandan and how are those prices set? Don't tell me that each retailer sets their own price!! Why is it that within minutes of one station changing prices everyone changes to the same price whether or not they have taken a fresh load of fuel in the last day or two? That defies logic. But, as has been said before, it's all coincidence. Someone is making that first call and everyone is following suit for what ever reason. Could it be- - - - -GOUGING? Oh no! "

d wrote on Sep 2, 2008 2:10 PM:

" Isn't it funny how a hurricane can change our gas price locally. They blame increase in Gustva oil refineries and wells were shut down in the Gulf area so the gas pricesincreased. I noticed when they were showing people evacuating they showed people fueling up their tanks before leaving and the price was 3.39 per gallon and that is where the hurricane was at but yet they pay less than people 1200 miles away. As far as the shortage is their really one or is it a way to raise the prices again barrel of oil fell below 110.00 today but no price changes in the works. If gass drops .20 per gallon for everty $40.00 drop in crude oil at this rate if they gave the oil to the refineries gas could would drop down .45 cents a gallon. It would still be 3.33 per gallon. A week ago gas in Fargo was .39 cents cheaper with a .o8 cents gallon coupon. Just something to ponder crying about the gas prices is like whinning t0 the Corps. about the lake levels it gets us know where but it's nice to vent. "

THOROUGHLY DISGUSTED wrote on Sep 2, 2008 10:37 AM:

" The car is called a GEM. So if these cars can only go 35 mph, I would think that they would tend to slow down speeders around here, if the speeder is stuck behind one. If they are allowed on the streets in Fargo, Minot, and GF, I think Bismarck should get with the program and allow them on Bismarck streets. I seriously doubt that the city of Bismarck can claim to care more about the safety of its citizens than the other large cities in North Dakota. Maybe there are other considerations at issue here "

JIm S wrote on Sep 2, 2008 9:18 AM:

" From what I understand these electic cars that are in question are leagal in Fargo, GF and Minot to date. I heard Bismarck doesn't want them because they are not safe, not enuff power, not enuff car to protect someone in the event of an accident. I forget what these cars are called but when I saw one up at Hazen Bay this weekend, I thought it was a golf cart with a hard top and a pickup bed. "

extra wrote on Sep 2, 2008 8:01 AM:

" gas is already ridiculous. However, if that $2 increase for a tank of gas kept you from enjoying the weekend, then you have bigger problems than gas prices. "

MamaMia wrote on Aug 29, 2008 9:54 AM:

" THOROUGHLY DISGUSTED: Tell me more about this ban on electric cars. "

THOROUGHLY DISGUSTED wrote on Aug 29, 2008 9:27 AM:

" Question: How come the media is so quick to print stories that will invariably raise the price of gas for regular citizens, but so reticent to pursue a story about the city of Bismarck banning LEGAL electric cars on all city streets? It appears that when the people take steps to improve a reprehensible situation, the powers that be are right there to say "NO, we don't want YOU to find ways to help yourselves." Please feel free to correct me if I have my facts wrong. I got them from the nightly news. "

Cynical Independent wrote on Aug 28, 2008 11:00 PM:

" Why did the Tribune get this story and there is no mention of it on the Fargo Forum website? Looks like it's working. Gas is up a dime in south Bismarck but that particular station always seems to be the leader when prices increase. "

Razors Edge wrote on Aug 28, 2008 1:50 PM:

" Can we stop with the politics? My question is if one day you see you're a little short, and the next day you see youre a little short. Maybe you ask questions then instead of waiting till you have no fuel? Is it that hard? "

Grumpy Old Republican wrote on Aug 28, 2008 1:03 PM:

" OK, "Republican Incompetence" just exactly WHO has hampered further development for the past 25-30 years? WHO sides with the enviroMENTALists and buys into all the global warming scare tactics? WHO has tightened controls so hard over the decades that oil companies have given up on building refineries, exploring, drilling and building pipelines? HMMMMM???? "

Repubican Incompentence wrote on Aug 28, 2008 12:15 PM:

" Energy Dept. states we are using 877,000 less gallons of gas since it is so high
so there are no shortages. Republicans propaganda that off shore oil will bring down prices we have to drill but it will take 10 years to get this oil and we would
see a 2 cent reduction in gas prices. Could it be that the Republicans are meeting in St. Paul and they want to convince the American people that democrats are responsible for gas shortages and high prices? Big oil last push
to get people to vote Republican. We have Republican governor and Republican
legislature that can't do anything? This will give them cover for the Hoeven
Energy Policy that we have to give oil companies more money despite their profits. How much have refineries cut their production? "

Oracle CEO wrote on Aug 28, 2008 11:57 AM:

" I agree. Vote for Obama. Then we could just fuel up our cars with hope, good intentions, and empty promises. I here you can get pretty good mileage that way, especially down hill. "

LB wrote on Aug 28, 2008 11:29 AM:

" Funny how there is a shortage around every holiday weekend???? "

Mandan wrote on Aug 28, 2008 11:24 AM:

" of course when we decided all summer not to go anywhere this year because of gas prices we make last minute plans and decide to go this weekend and now this. should have known that the powers that be would find a way to raise gas up again for the weekend! go figure! It does always seem to be the same area that has problems and causes our prices to be higher than most! "

Al Gee wrote on Aug 28, 2008 11:06 AM:

" Personnally, i blame god for putting all of the oil in the middle east. With 7 days to create heaven and earth, you think he woulda put the oil in a more accessible area. "

why wrote on Aug 28, 2008 10:31 AM:

" why would someone have to add political talk into this conversation? just can't let it go or what? thanks for 'fuel'ing the fire obama! can't people just complain about shortages and gas prices without having to hear about it's the republicans or democrats fault? "

obama battery powered cars wrote on Aug 28, 2008 9:33 AM:

" just more corporate greed that the bush administration will ignore. please make your vote count this year people "

THOUROUGHLY DISGUSTED wrote on Aug 28, 2008 9:14 AM:

" How convenient that at a time when the public was told to expect a slight reduction in gas prices around the holiday, that this " glitch" happened. I for one, don't believe it "

THOUROUGHLY DISGUSTED wrote on Aug 28, 2008 9:10 AM:

" What's unfortunate is the fact that they have "no clue" where it went. "

Grumpy Old Republican wrote on Aug 28, 2008 8:51 AM:

" Sounds like a good excuse to jack prices over the holiday weekend to me... "

gas wrote on Aug 28, 2008 8:43 AM:

" Now Bismarck can raise their gas prices because Grand Forks and Fargo has a shortage. "

Its Political wrote on Aug 28, 2008 7:44 AM:

" It's all about "who's paying who" . . . the North Dakota oil & rigs, refinery in Mandan and no fuel? Comes down to which group of people is buying off which group of people. It's money, political corruption and ripping off the american consumer.a6iq "

Jeff wrote on Aug 28, 2008 6:49 AM:

" WHY? -- It is Labor Day weekend, gas prices have been falling - without a shortage how would anyone be able to raise prices for the last long weekend. "

wow wrote on Aug 28, 2008 6:25 AM:

" I guess now we know why the cost of a gallon of gas here is usually thirty to fourty cents higher than other states. "

abc wrote on Aug 28, 2008 6:01 AM:

" Eighty oil rigs in North Dakota and no refined gas? That is unfortunate. "

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