The custody transfer point of the RBOB between the terminal operator and the exchange company is normally at the loading arm connection to the transport. Since the title to the RBOB is therefore held by the exchange company and not the terminal operator at the moment the RBOB enters the blending facility (the transport truck), is the terminal operator still considered an oxygenate blender in this situation? Our interpretation is that, in the case of automated sequential blending, the terminal would be an oxygenate blender because it "controls and supervises" the blending process. Likewise, it is our interpretation that the terminal operator would not be an oxygenate blender in a splash blending situation since the operator does not have 137 title to the RBOB or ethanol at the time of blending and does not supervise or control the blending process. Is this interpretation correct?
Your interpretation is correct in the first situation. If, in the second situation, the transport truck operator controls the amounts of products to be splash blended in the truck, your interpretation is also correct. (7/1/94)
This question and answer was posted at List of Reformulated Gasoline and Anti-Dumping Questions and Answers: July 1, 1994 through November 10, 1997 (pdf)