Minimum Wage Pg. 2

*********

Overtime Final Rule

Pg.7

Issue #1901 July 20,2016

Minnesota Petroleum Marketer

Issue #1901 July 20, 2016 Inside this Issue:

MINNESOTA PETROLEUM MARKETERS ASSOCIATION

3244 RICE STREET ST. PAUL, MN 55126-3047

651/484-7227 800/864-3813 FAX 651/484-9189

E-Mail: kthoma@mpmaonline.com www.mpmaonline.com

The Minnesota Petroleum Marketer (ISSN 1062-8282) is published semi-monthly by the Northwest Petroleum Association dba Minnesota Petroleum Marketers Association. Standard—postage paid at the St. Paul, MN (USPS 5220). Subscription cost $25.00 per year. POSTMASTER: Send address changes to Minnesota Petroleum Marketer at address above.

Minimum Wage Facts 2

MPCA 3

Final Rule: Overtime 4

Energy Outlook 5

Positive 2016 6

Pokemon Go 7

Gas Prices Fall 8

Insurance Corner 9-10

Legal Corner 11

Classifieds 12

Certified Food Manager Training 13

Bulletin No. 1901 -2- July 20, 2016

MINIMUM WAGE RATES

Bulletin No. 1901 -3- July 20, 2016

MPCA

Preparing your Tank System for Possible Flooding With the recent heavy rainfall in Minnesota, the MPCA has some tips to prevent water from entering your storage tank system. Ensure tank fill caps are in good condition and have the rubber gasket in place. Water can easily enter a tank through loose or broken fill caps or caps without the rubber gasket and contaminate fuel. If the tank fills with enough water, the fuel can float out of the tank into the environment. Make sure ATG probe caps and all other access ports are secure. Small aboveground storage tanks can easily float and tip in flood water even if they are full of fuel. If flood risk continues to increase in your area, it may be best to pump out small aboveground tanks to prevent spills and contamination, move them to higher ground, or secure them. Keep in mind that small waste oil tanks or drums stored indoors can also float, tip, and contaminate the building in which they are stored. Large above-ground storage tanks can also float away. Fillthe tanks with product to keep them in place. Make sure all ac-cess ports are secure to prevent water from entering the tank system and fuel from leaving the tank system. If your system is inundated with water, ensure electronic leak monitoring equipment, such as automatic tank gauges, electronic line leak detectors, and sump sensors are tested once the water recedes to ensure they still function. Electronic equipment such as this is generally not designed to be submerged in water and it can cause failure of the equipment. Also check the tank for the presence of water using water paste and a gauge stick. The following link includes more information about preventing flooding problems for underground storage tanks: www.pca.state.mn.us/sites/default/files/t-u1-16.pdf The EPA also has a guide for flood prevention for underground and above ground storage tanks. The infor-mation can be found at the following link: www.epa.gov/oust/pubs/ustfloodguide.htm If you have any questions, contact Jake Mueller at the information below. Thank you and have a great day. Jake Mueller Pollution Control Specialist Minnesota Pollution Control Agency 651-757-2862 jacob.mueller@state.mn.us

Bulletin No. 1901 -4- July 20, 2016

FINAL RULE: OVERTIME In the last Minnesota Petroleum Marketer Newsletter - Issue 1900, we provided an overview of the Final Rule: Overtime announcement made on May 18, 2016 in a publication by the U.S. Department of Labor (DOL). The Final Rule will become effective on December 1, 2016, giving employers a little more than four months from now to prepare. Here are some implementation options to consider.

How will employers implement the updated salary level requirements established in the Final Rule: Overtime?

Article courtesy of the professionals at the CPA firm of Conway, Deuth & Schmiesing, PLLP (CDS). CDS is a member of the Minnesota Petroleum Marketers Association. For more information, visit http://www.cdscpa.com/ ____________________ For a copy of the Final Rule and additional materials from the DOL, see https://www.dol.gov/whd/overtime/final2016/ . NOTE: This information is issued to provide you with general information about the Final Rule. Do not apply this general information to your specific situation without additional details. Be aware that laws contain vary-ing effective dates and numerous limitations and exceptions and cannot be summarized easily. For details and guidance in applying the Final Rule: Overtime to your individual circumstances, please contact CDS at (888) 388-1040.

Employers have several options for responding to the updated stand-ard salary level. Employers can choose the one that works best for them. For each affected employee newly entitled to overtime pay, em-ployers may:

Increase the salary of an employee to meet the duties test to at least the new salary level ($47,476) to retain his or her exempt status;

Pay an over me rate of one and a half mes the employee’s regular

rate of pay for any over me hours worked (This is an op on for em-

ployees who have occasional spikes requiring over me.);

Reduce or eliminate over me hours;

Evaluate and realign hours and staff workload;

o Employers need to ensure the workload distribu on, me,

and staffing levels are properly managed for those employ-

ees whom earn less than the salary threshold ($47,476).

o Employers may decide to hire addi onal workers to reduce

or eliminate a need for over me.

Or, use some combina on of the op ons named above.

Bulletin No. 1901 -5- July 20, 2016

ENERGY OUTLOOK

U.S. regular gasoline retail prices this summer are forecast to average $2.25/gallon (gal), 2

cents/gal lower than forecast in last month's STEO and 39 cents/gal lower than last summer, measured as April through September. U.S. regular gasoline retail prices are forecast to av-erage $2.12/gal in 2016 and $2.28/gal in 2017.

U.S. crude oil production averaged 9.4 million barrels per day (b/d) in 2015. Production is

forecast to average 8.6 million b/d in 2016 and 8.2 million b/d in 2017, both unchanged from last month's STEO. EIA estimates that crude oil production for June 2016 averaged 8.6 million b/d, which is 0.2 million b/d below the May 2016 level, and almost 1.1 million b/d below the 9.7 million b/d level reached in April 2015.

Natural gas working inventories were 3,179 billion cubic feet (Bcf) on July 1. This level is

20% higher than a year earlier, and 23% higher than the previous five-year (2011-15) aver-age for that week. The natural gas storage injection season typically runs from April through October. EIA projects that natural gas inventories will be 4,022 Bcf at the end of October 2016, which would be the highest end-of-October level on record. Henry Hub spot prices are forecast to average $2.36/million British thermal units (MMBtu) in 2016 and $2.95/MMBtu in 2017, compared with an average of $2.63/MMBtu in 2015.

Benchmark North Sea Brent crude oil spot prices averaged $48/barrel (b) in June, a $2/b in-

crease from May and the fifth consecutive monthly increase since reaching a 12-year low of $31/b in January.

Brent crude oil prices are forecast to average $44/b in 2016 and $52/b in 2017. West Texas

Intermediate (WTI) crude oil prices are forecast to be the same as Brent in 2016 and in 2017. However, the current values of futures and options contracts suggest high uncertainty in the price outlook. For example, EIA's forecast for the average WTI price in October 2016 of $48/b should be considered in the context of Nymex contract values for October 2016 de-livery. Contracts traded during the five-day period ending July 7 (Market Prices and Uncer-tainty Report) suggest the market expects WTI prices could range from $35/b to $67/b (at the 95% confidence interval) in October 2016.

Bulletin No. 1901 -6- July 20, 2016

FIRST HALF OF 2016 POSITIVE by NACS Two-thirds optimistic about industry's prospects. The first half of 2016 is set to go down in the record books as a strong six-month period for convenience store operators. According to the quarterly Retailer Sentiment Survey, released by NACS, the Association for Convenience & Fuel Retailing, lower gas prices, as well as the continued addition of fresh and healthy food options led c-stores to have a banner first six months of the year. Seven in every 10 retailers said in-stores sales were higher in the first half of 2016 vs. the same period in 2015. A majority (54 percent) also said fuel sales were higher compared to the first half of 2015. Conversely, only 8 percent of retailers said in-store sales were lower than the comparable 2015 period. On the fresh-food front, 43 percent of c-store retailers surveyed by NACS stated they added more fresh fruits and vegetables this year; 39 percent have added more packaged salads; and 30 percent have added more cut fruits and vegetables. Overall, 85 percent of retailers say they sell fresh fruit or vegetables, an eight percentage-point increase vs. last year. Foodservice — something that can provide sought-after high margins for c-store operators — continues to be an opportunity as well. Sixty-four percent of c-store retailers are confident they can compete with quick-service restaurants regarding foodservice, reported NACS. All in all, c-store retailers are changing with the changing times, and their efforts have paid off. “It’s not a matter of if we are going to evolve. It’s a requirement,” said Dennis McCarntey with Kennett Square, Pa.-based Landhope Farms Corp., which is currently investing in new foodservice equipment. Bottled water sales were another specific area of strength. Nearly half of all retailers stated they have expand-ed their bottled water offerings and 59 percent say they increased their nutraceuticals and enhanced water se-lections. According to NACS, convenience stores sell approximately half of all single-serve bottled water pur-chases in the United States. Based upon a strong six-month sales period to start the year, more than two-thirds of c-store retailers say they are optimistic about their own business prospects and nearly two-thirds (63 percent) are optimistic about the industry’s prospects. WORDS OF CAUTION This optimism, although strong, is a significant decline compared to one year ago, when 83 percent of re-spondents said they were optimistic about their own business prospects. This drop in optimism is led by larger economic concerns. A slight minority of retailers (47 percent) now say they are optimistic about the overall U.S. economy vs. 61 percent one year ago. Government regulations, especially those targeting higher mini-mum wages, are of major concern to c-store retailers, reported NACS. The downward trend in overall optimism can also be summed up in two words, according to Robin Gabriel with Hinsdale, Ill.-based Shell Food Mart: “The election.” The NACS Retailer Consumer Sentiment Survey comprised a total of 110 member companies representing a total of 1,905 stores. The survey was conducted in June.

Bulletin No. 1901 -7- July 20, 2016

POKEMON GO by PMAA Since Pokemon Go was released on July 4, many businesses have experienced large groups of people coming to their site in order to play the game. For some this can be an advantage (some stores are promoting their Pokemon status on Facebook) but it can also cause security problems. While it is important that businesses are aware of the game it is also important that people not dismiss suspicious activity. The app is generating $1.6m per day for Niantic, Nintendo, Google and the Pokemon Company and analysts predict that Apple will make $3 billion in revenue from the game in the next two years as iPhone users can use PokéCoins to buy additional features. The American Heart Association is touting Pokemon Go as a way to promote exercise and boost heart health - as long as people remember to look up from their phones. How-ever, there has been an increase of crime, suspicious activity reports, and traffic accidents linked to in-game locations where people are attempting to advance in the game by capturing Pokémon creatures or obtaining in-game items. A state government bulletin specifically notes that some people may use the game to gain access to non-public areas and claim they are playing Pokémon GO as a means to circumvent law enforcement or security. The Department of Defense has issued guidelines for playing the game to US military and intelligence per-sonnel and police departments around the country have issued guidance as well. Furthermore, the International Association of IT Asset Managers has called on IT departments around the country to ban the app from their corporate devices—those provided by employers as well as employee de-vices connected to enterprise networks as part of a bring-your-own-device (BYOD) strategy. Initially the app was allowed access to nearly every part of users’ Google accounts and although that has been corrected, there is a rise in malware associated with the app. The game was first released in the U. S., Australia and New Zealand, and has since been released in 20 other countries. Pokemon Go is close to a release in Japan and the country’s National Center of Incident Readiness and Strategy for Cybersecurity issued a warning about being taken in by fake apps and suggested players not use their real names when playing. In addition the government advised players to watch the weather, where they walk and not to play the game in dangerous areas.

Businesses can submit a removal request by going to the Pokemon Go support page (https://support.pokemongo.nianticlabs.com/hc/en-us/articles/221968408) and clicking on "Request Removal of a PokeStop or Gym." It will require an email address, a subject line, and a selection of why the reported PokeStop/Gym should be removed (dangerous, not at this location, private property). However, requesting a removal does not ensure that the business will be removed, and, since the game has already been hacked, businesses are cautioned to use discretion with the information provided to the app developers to remove a site from the game.

GAS PRICES FALL by NACS

Bulletin No. 1901 -8- July 20, 2016

Consumer optimism increased to its highest level since March as gas prices reversed a four-month climb and dropped 12 cents per gallon last month, according to the latest national consumer survey released by the Na-tional Association of Convenience Stores (NACS). Overall consumer optimism about the U.S. economy increased three points to 47% in July, but there were sig-nificant demographic variations. Six in 10 younger consumers (60%) ages 18–34 say that they are optimistic, compared to only 37% of those ages 50 or older. Gas prices remain much lower than they have been in recent summers. This month’s reported price of $2.26 per gallon is 53 cents lower than the reported price of $2.79 in July 2015. As gas prices have declined, U.S. fuel consumers are less likely to say that gas prices significantly affect their feelings about the economy. Just one in five (22%) of fuel consumers say gas prices have a “great impact” on their feelings about the economy, the lowest number since NACS began surveying in January 2013. Not only are consumer less concerned about current prices, they also feel good about future price changes. Only four in 10 (41%) consumers expect gas prices to increase over the next 30 days, the lowest percentage since February. And they say that prices would have to reach an average of $4.71—more than double today’s prices—before they would consider alternatives to driving or significantly reduce the amount that they drive. The boost in consumer optimism regarding the economy may not immediately translate into a boost for the economy. Only one in five consumers (20%) say they will drive more over the coming month and only one in six consumers (16%) say they will spend more money shopping at all retail locations this month. However, both percentages are in line with historical averages for the month. Fuel efficiency may also play a role in optimism. Consumers say their vehicle’s average fuel efficiency in-creased to 25.2 miles per gallon, the highest level since NACS began conducting monthly consumer surveys in 2013. As a result, average miles per dollar—a calculation that examines gas prices related to vehicle fuel efficiency—increased to 11.2 miles per dollar. “Monthly changes in gas prices clearly affect consumer sentiment. The question is how much any future price drops can push optimism higher at a time when consumers still have broader political concerns, especially as the national conventions loom,” said Jeff Lenard, NACS vice president of strategic industry initiatives. NACS, which represents the convenience store industry that sells 80% of the gas in the United States, con-ducts monthly consumer surveys to gauge how gas prices affect broader economic trends. The survey was conducted online by Penn Schoen Berland; 1,101 U.S. adults who purchase fuel for a vehicle such as a car, truck or van at least once per month were surveyed July 5–8, 2016. Summary results are available at nacsonline.com/fuelssurvey.

Bulletin No. 1901 -9- July 20, 2016

INSURANCE CORNER

Bulletin No. 1901 -10- July 20, 2016

INSURANCE CORNER

Bulletin No. 1901 -11- July 20, 2016

LEGAL CORNER

Bulletin No. 1901 -12- July 20, 2016

CLASSIFIEDS

REMINDER—This newsletter is available in an electronic version to be sent directly to your email. If you would like to receive the newsletter electronically, email Holly Werner at hwerner@mpmaonline.com and request the electronic ver-

sion of the MPM Marketer.

NOTE: Classified ads are accepted on a first come, first serve basis. The cost is $3.00 a line for non-members. The Association of-fice does not look into nor endorse the products and services offered through the Newsletter ads.

FOR SALE: Algas SDI Fire 120/60H gallon per hour vaporizers (3) available. In nice condition-updated & ser-viced every year by trained technicians. Natural gas $3000 each. Ben @ 320-491-8572 FOR SALE: Rollies Sales & Service, Inc. / Pictures http:\rolliessales.com\ New tank 4500, 5 compartment Polar Tank, New LC Meters, dual inverted hannay reels, opw nozzles, sculyl swivels, 3rd high speed reel, purge tank-comes w/ warranty. 2011 freightliner, Cummins. 2100 Gallon, repainted, 5 compartment, current testing V,K,I,P & D.O.T. dual reels & meter, 2003 freightliner, automatic transmission-2014 polar 2 axle, 5400 gallon pup, w/ extendable draw bar (like new & FET already paid) 07 Polar, 9500 4 compartment, air ride, 3” hydrolick drive pump & manifold FOR SALE: 1996 Beall 4 compartment (9500 gal) trailer. $31,200 or best offer. Call Gary 563-845-9711 FOR SALE: APW WYOTT HRS-50S Roller Grill $1000. Almost new, this roller grill w/ bun holder and menu board was purchased in 2010 for $2600 and used for only one year. Great for convenience store, food cart, charitable groups, special events and more. Would be willing to deliver within 100 mile radius of McGregor. Ron 612-961-2570 FOR SALE: JE adams dual motor 110 volt stainless steel commercial vaccum. Unit has very little use/ great condt. Dual recessed locks & user adjustable quarter mechanism for setting the price. Comes w/ several new hoses. $795. Scott 507-276-0655 FOR SALE: Scottsman CME306 Ice Machine. Standalone Ice Center, Owner’s Manual included. Good con-dition. Dimensions 24 x 22 x 28. $500 or best offer. Contact Reed at (952) 461-2251, or at fish-rock@integra.net . Elko New Market, MN FOR SALE: Established gas station/repair shop/car wash business in Bagley, MN/ 3 bays w/ hoists, 2 pumps w/ gas & diesel & 24 hr computer pay on one. Rental & U-Haul also available but not included in price. All tanks etc with up to date inspection certificates. $240,000 call Dick at Grimes Realty 218-556-2882 FOR SALE: Trailer from Felling Trailer in St. Cloud, 16000#, wood platform (8x20), ramps, brakes, only used 2x. Located in Central MN, pics available $7500.00. (763)-300-2298 SPECIALIZING in the petroleum industry, Flaten Sandblasting and Paint LLC, fuel tanks, lp tanks, bulk plants, piping. Schedule your next job now with Blake @320-815-4468. FOR SALE: Petroleum Transports . Contact Dick Otterstrom– LBT Inc-Regional Sales Manager 651-402-2838. dotterstrom@comcast.net // pictures & Specification sheets available. (1) 2009 LBT Inc-petroleum transport-9500 gallon –4 compartment (4000//1500//1000//3500) double bulk-heads-disc wheels-hose tubes –11R22.5 –air ride

Bulletin No. 1901 -13- July 20, 2016

CERTIFIED FOOD MANAGER TRAINING AND RECERTIFICATION

2016 Certified Food Manager & Recertification Training Sponsored by

SafeFoodTraining Department of Health & Agriculture approved

Certified Food Manager Course & Exam $165 8:29 a.m. to 4:29 p.m. Recertification Course $75 8:29 a.m to 12:29 p.m. Online Certified Food Manager Course & Exam $175 Exam at 2:15 p.m. Online Food Manager Recertification Course $75

Register online at: www.safefoodtraining.co

NEW Mail in Registration address Mail form & payment to: SafeFoodTraining, 7469 Fernbrook Lane Maple Grove, MN 55311. Questions: email us at info@safefoodtraining.com or call Tim or Doug at 952-210-

0195. Please copy form as needed MPMD July 2016 Course Date & Location _______________________________________ Amount enclosed _______ Name _____________________________________________________ Certification/ Renewal Business name __________________________ Address _____________________________________ City_______________________________ State ____ Zip ________ Phone # ______________________

July

27– Wed. – Chanhassen, AmericInn 28– Thurs. - Mounds View, Mermaid Event Center

August 8 –Mon. - Bloomington LaQuinta Inn

11 – Thurs. – Otsego/Elk River Holiday Inn 16 – Tues.- Plymouth, Comfort Inn

17 – Tues. – Woodbury Country Inn 22 – Mon. – Minneapolis Aloft Hotel

23– Tues. – Burnsville, Best Western Premier 30 – Tues. - St. Paul, Capital Inn

31– Wed. – Chanhassen, AmericInn S

September

7 – Wed. – St. Cloud, Holiday Inn 8 – Thurs. – Bloomington LaQuinta Inn

13 –Tues. – Plymouth, Comfort Inn 14 – Wed. – Woodbury Country Inn 19– Mon. - Minneapolis Aloft Hotel

20 – Tues. - Burnsville, Best Western Premier 27– Tues. - Mounds View, Mermaid Event Center

Minnesota Petroleum Marketers Association 3244 Rice Street St. Paul, MN 55126-3047

PRSRT STD US POSTAGE

PAID TWIN CITIES MN

PERMIT NO. 5220