In the case of a refiner whose conventional gasoline is blended with oxygenate downstream of the refinery, and where the refiner includes this oxygenate in its anti-dumping compliance calculations, what options are available to the refiner for defining the volume and properties of this oxygenate. In particular, must the refiner report each occasion when the oxygenate is blended (each truck in the case of splash blending), or may the refiner report the total volume and properties of oxygenate used over a larger period of time?
Under § 80.101(d)(4)(ii)(A), a refiner may include in its refinery anti-dumping compliance calculations the oxygenate added downstream to gasoline produced at that refinery, if the oxygenate is added by the refiner. In addition, under § 80.101(d)(4)(ii)(B), the refiner may include oxygenate added downstream to the refinery's gasoline by someone else provided the refiner: 1) has a contract with that oxygenate blender that specifies appropriate oxygenate blending procedures; 2) monitors the oxygenate blending operation through periodic audits designed to assess the overall volume and type of oxygenate used; 3) conducts periodic sampling and testing of the gasoline produced; and 4) conducts periodic inspections to ensure the contractual requirements are being met. Under § 80.104(a)(2)(x) refiners are required to maintain records of the oversight required by § 80.101(d)(4)(ii)(B).
Section 80.101(i) requires refiners to separately sample each batch of gasoline and blendstocks that are included in anti-dumping compliance calculations, and either separately analyze each sample, or under § 80.101(i)(2) analyze a volume-weighted composite of the samples collected during up to a one month period. These sampling and analysis requirements thus apply to oxygenate added downstream to a refiner's gasoline where the refiner includes the oxygenate in its compliance calculations.
In the case of compliance under the complex model, the calculation method necessary to include blendstocks in anti-dumping compliance calculations are described in the Preamble to the RFG Final Rule, 59 FR 7806 (February 16, 1994). This calculation method would apply to downstream-blended oxygenate that included in a refiner's compliance calculations under the complex model.
A refiner may include in its refinery compliance calculations the oxygenate added downstream to that refinery's gasoline without separately sampling each batch of oxygenate blended, provided the refiner meets the following requirements:
1. The refiner must comply with the downstream oxygenate blending oversight requirements specified under § 80.101(d)(4)(ii), and the recordkeeping required by § 80.104(a)(2)(x).
2. The refiner's oversight must demonstrate the type and amount of oxygenate that is blended with gasoline produced at the refinery.
3. Each type of oxygenate blended must be reported separately.
4. The oxygenate blended during a maximum of one month may be reported as a single batch. (10/17/94)
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