Free Reply to Response to Motion - District Court of Federal Claims - federal

Case 1:02-cv-01460-LB

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SECOND SUPPLEMENTAL APPENDIX

Case 1:02-cv-01460-LB
"~iI Bs~
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Barrett Rdining Corp. v. U. S.

96-15C OPEN SESSION July 29, 1998 Page508 CONTENTS VOIR WITNESSES: DIRECTCROSSREDIRECT REEROSS DIRE For the Defendant: Robert Myrben 524 531 532 514 HenrySteven Prime 533 556 564 - -

//

Page507 ill APPEARANCES: (¢ondnued) 131 SHERRY FLOYD, L. ESQ.

Page 509 (I) EXHIBITS ta) PLAINTIFF'S DESCRIPTION O) EXHIBITS: IDENTIFIEDRECEIVED

Heritage Reporting

~202) 628-4888

Page 506 to Page 509

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703 767 5022

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economicscourses at the Unlveralty of SouthCarolina; five year~ at the Bureauof LaborStatistics, fire as an economl~and then a* o Branch Chief, doin8 research on service I~d~/ry pdd~g; and the~ tim ~ 18 yeure at the Deparm~mtand the Energy Informallon AdmJnfstretlon petroleum stafl~les.

Whereupon, ~OLIN$. COOK hav~ng first sworn, called us a wlm~s be©n duly wa~ herein ~udw~examined to,tiffed a~ follows: and THE COURT:Thank you, D~ECT ~AT/ON BY MS./fLOYD: Q Couldyou please ztare your fuH namc rhe for A Jo~S, Coo~ ~ ~ w~om are you ~l~¢d? A ~e Dep~ of En~ the

Ener~

~o~flon

Q ~yourfftle? A I ~ ~ ~ctor of the Pe~le~ ~ ~e Office of Ofl and G~. Q Are you located ~ W~h~D. C ?

Div~on

Q Can yo~ sl~e wh~ yo~ educ~io~ backs~und ~.

Q ~ you e~bor~e on your ~¢~¢nce following your Ph.D.? A I spe~ ~e y~ t~ g~d~-levd

Heri~e

Re~g

(202) 628-4888

Page 617 zo Page 620

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Page 621 to Page 624

(202) 628-4888

Heritage Reporting

FEB-~l-2006

DESC-G COUNSPL Case14:42 1:02-cv-01460-LB Document 72-2 you'd ~ve for

Filed 02/22/2006 ~e Page 5 of 35 ~7

7@3 767 5822

caa~mpfioa H~ off- on ~ ~ side.

(I) their computer records, dependin on howautomated they S ego. ~) They get a printout, and they should have a sys*emthat

~i~it 145, ~age on ~our I~. probably fo~ b~er you couP. ~ top,go 75 of ~ 145. A~ge 7S~ A O~y. You ~ it out of heee, Q~dpag¢TS. A O~y. documenr~ ? AUNT, ~ b ~e fo~, ~? O~y.

~ 782A that

we ~Deet

~e do~m~t reread ~ wes ma~ for ideu~on ~ Dc~dant'~ ~tblt ~45.)

Page 628 THEWIT~E, Yes. Wehaveaprelimtnery unda SS: final publication sy~em,The preliminary damfor 1anusw wouldcomeou~. and 60 days Iscr, the March/April time frame,andwemightnut have full re~orfin8by then, so we would imputefor the handtel of mi~slng f~el refiner~, jet but then by the followlll8 month,when data are final. the we'db~oye vi~,z~|y.all of them~ thosedsfa wo~d and go fag JI.Baa.W come in April or May. and Out BY MS. FLOYD:(~ O~y.Th~form the1 we have ~n fronr of ~, has tMsfann beenmodl.ffed o~er~he year~? A yes, It has. With the Clean Air Aet and the introduction of reformulated gasoline, that's wl~n we the gasoline products to the degree that yen nowsee them

Heritage

Reporting

(202) 628-4S88

Page 625 to Page 628

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~Z02) 62S-4888

HeritageReporting

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HeritageReporting

t202)

628-~885

PaSo ~33 ~o Page 636 TOTAL P, 0~

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LaGloria

Transcript

Bournazian

120303MF.txt 1

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

IN THE UNITED STATES COURT OF FEDERAL CLAIMS

LA GLORIA OIL AND GAS COMPANY,

: :

Plaintiff, :
VS. THE UNITED STATES~ :

NO. 02-465C (Judge Hewitt)

Defendant. : .............. X Pages 1-50

Deposition District

of JACOB BOURNAZIAN of columbia

wednesday, December 3, 2003

Reported

by:

Marilyn

Feldman,

RPR

Job NO. 156784

1 2 3 4 December 3, 2003 10:00 a.m. Page 1

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LaGloria 16 17 18 19 20 21 22

Transcript

Bournazian

120303MF.txt

the PMMback to the 1980s? A. Q. A. Q. Yes. Are they all Yes. To your knowledge, none of the project 1980s to now currently employed by EIA?

managers from the PMMfrom the early have left the agency; is that correct?

10

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 there collect

A.

Yes. turn to the first request,

Q. Let's request Exhibit relating concerning

no. 17, which is on page 6 of Plaintiff's 2. Request 17 reads: to communications "All documents

between DESCand prices

use of the PMMindex to adjust adjustment clauses."

in DESC'S price

what efforts

did you undertake

to

documents in response to that

and what did

you find? A. First, in response to that request on the use not a term we of two

was confusion

in our organization because that's an index

of the term "indices" use and we don't numbers with but we only assumption --

is a ratio

a baseline publish

being in the denominator, prices, price so my

statistics

is you meant just Is that

data when you

used the word index. Q. I think A. okay.

correct? assumption. in responding to

that's so the

a fair efforts

17, everyone was asked to check if Page 8

they have any

FEB-21-2006Case 1:02-cv-01460-LB 14:46 DESC-G COUNSEL Document

72-2

Filed 02/22/2006 Page5022of P.02/13 703 767 10 35
Forrn E:x~re~: 1~31R~

Energy Inl~m~ion

EIA-Tff2A: P.~VI.NERS'/~AS PLANTOPERA~ORS" MOR'TE[LY PETROLEb'M PRODUCT SALES REPORT

~eg~d;n~

th~

b~en e~e ~r ~ ~ ~ =f

th~

~ge~on ~ ;n~,

~du~ng s~g~o~ lot

mdudng ~ burd~

~ ~he

PART I.

IDENTIFICA~ON DATA

L
For assistance in ~mp/e~ing this form, carl (800) (~.~612.

Mo

Yr

lO,

"n~e Numbe~ State= For WMch of YouAre Rep=~in g

PART II.

CERTIFICATION l ced~fy ~at the inh:m~t~on rov~edhc~teln ~nd~penc~ed p her~o;~ tr~e and~'~e ~ the be~t ~ my~nowledge.

Case 1:02-cv-01460-LB

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No.2 Dbs~ Fuel No. 2 Fu~I Oil

Gasoline

NO.4 Fuel Oil,

Consumer Grade

(149)

FEB-21-2086 14:46 Case 1:02-cv-01460-LB

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I. PurpOse TheEIA-782A designed provide d~a on the sales of selectedpetroleum is to produc~s (volumes and prices)to various ¢~tegories end-users resellersby typeof seller at the Statelevel. o~ and These data are collected pursuant the provisionsof the Federal (0 Energy Adminisb'a1~on (FEA) of 1974, P.L 93-275,Thedata are usedby the Department Energy of (DOE')in review~ng petroleum product supply, demand price changes. and II.Who MustSubmit Anyfirr~ that di~lly indirectly controls a refinery or gasplant must or prepare file ~e E]A.782A end each month. IlL Whatand Where Submit to Submit single Schedule as ~ coversheet, anda separate a I Schedule for e~chState in which II the respondent sells oneor mereof the l~ted products, Send completed the EIA-782A to: U.S, Department Energy of EnergyInformation Admlnisbation E1-43 Mail S~tJon: BG-09~Forrestal W~shington0 D.C. 20585

I

Cer~Jed computer printouts that are generallyin the formatof the EIA-782A be accepted. will Request approvalin advance calling the number DOE by belowif youplan to submitcomputer pH~outs.

if youhave quesi~ons ~ny concemlng of theEIA-78ZA any inst~ons, ~ toll flee (800} 638.8812. Firms located M~'yland in should (301} cail 495-8440. IV. When Submit to TheEIA-782A mustbe submittedto DOE later th~ 30 calendardaysattar the close of each no referencemonth.For example, the referencemonth June1990, the report mustbe submitted if is to DOE July 30, 1990. by V. San~onS This report is mandatory underPublic L~w 93-275.Failure to comply with repo~ng requirements may result in criminalfines, civil penalties,andothersanctions provided law. as by

903 969 5022 P,05/13 DESC-G COUNSEL FEB-21-2006 14:46 Case 1:02-cv-01460-LB Document 72-2 Filed 02/22/2006 Page 13 of 35 GENERAL INFORMATION (Cont|nued) VhProvisionsRegarding Confident~alltyof Information TheinfomlatJan contsined this formwill be kept confidential andnot dlsclosed the public to the on to extentthat it satisfies the crite.~a for exemption underthe Freedom Informa~on (FOtA),5 U.S.C. of Act §552,the DOE regulations, 10 G.F.R.§1004.11, imldement~ng FOtA,andt~e TradeSecretsAt1, 18 the U.S.C.§1905. Uponreceipt of a request for this information under the FOIA, the DOE shall makea final determination whetherthe information is exempt from disclosure In accordance wtth the procedures and criteria providedin the regulations. To assist us in thLs determination,respondents should demonstrat~ the DOE to that, for example, their informationcontainstrade secrets or commerc~a~ or financial information whose release wouldbe likely to causesubstantial horn to their company's competffivaposition. A letter accompanying submission the that explains (on ~ element-by-element basis) the reasons why the information would be llkely to cause the respondentsubst~ntia! competitive harm relaased the public would in thLs determination. new if to ~d A justil~cation doesnot needto be providedeachtime information is submittedon the form, if the company previously has submitted justification for that information a a.qd the jus~cation not changed. has Exceptas otherwiseprovidedby law, the information may made be available in response an order to of a Court of competent jurisdiction, or, uponrequest, to other components the DOE, any of to Committee Congress, GeneralAccounting of the Office, or other Congressional agenciesauthorized by law to receive suchinformation. Detailed provisionsor the rest~ctJons the disclosureof this on informationcanbe foundin the Policy on the Disclosure Indivldu~lly Iden1~abte of Energy Information in the PoesesSlcn the EIA(4S Eeder~ of Reaister59812

To avoid doublecounting, respondents to excludesales to other companies are (and their subsidiaries) whoalso report on the EtA-782A, list of thesecompanies providedperlsdically Goel| respondents. A is AdditionaJ copiesare availableupon request. Report volumes thousands gallons;, e.g., report 6,500gallonsas 7, and6,400gaJlons 6, Leave aJl in at' as both volume pdceblank if no volumes and weresold. Ente~1 for volumes between asd 1,499. Note: One 0 barrel is equalto 42 galtans. Enter data reflecting sales made during the reference month only. Excludetram all calculations any material prior pe~od adjustments volumes for and/or prices, andrevise the report(s)/or the appropriate prior perlod(s). Revisions prior month's to reports are requiredif previouslyreportedprices or volume data are in error by more than plus or minus five percent(5%), All revisions mustbe submitted within 120daysafter the end the reference month.However, mustbe netted of significant changes EtA dls~overed after this date and will determine a late resubmisslon required. if is Donot repert negativevolumes pdces;resubmitearlier repo~~nstead. or Reportunit pdces decimals U.S. dollars, expressed the nearesttenth of a cent (e,g., $1.065).Unit in of to prices are ta be determined dividing the total revenues by derivedfromthe sales of the productduring the referencemonth the fetal number gallons sold. Theunit price is the same the weightedaverage by of as price for all sales of that particular productto a particular groupof customers cless-of-~'ade. The or ~eported unit price should exclude taxeson the sale of the petroleum all productsuchas Federal,State, and local e~ciseor salestaxes. Taxes obt~i~ling, importing, or producing in petroleum preducls(suchas crud~ oil or product imporlation tar~s, domestic crudeoil taxes,f~cillties taxes, etc.) should be excluded not from

903 ?6'7 5822 P, 86/13 FEB-21-2086 14:4'7 DESC-G COUNSEL Case 1:02-cv-01460-LB(~ENE~RAL 72-2 Document Filed Page 14 of 35 |NSTI;iU~-'TIONS 02/22/2006 (C~nUnu~d) sales prices for EIA reporting purposes. For example, even though upstreameXpenSessuch the as Superfund mayh,= shown a separateline ~temon invoices of productsaJes, they should not be tax ;~s excluded fromthe reporteds~des price. Transportation coststhat a.re paidas I~rt Of the salesprice at the point of sale shouldbe iilcl~Jded in t~te reportedunit price, Donot ¢alculale unit prices using rounded volumes. Reportonly the data for the productslisted: DOE not seekingfull coyer'age all petroleum Is of products sold, Excludeamounts supplied to exchange partners except wr~erethe amount given up exceedsthe amount receivedandthe imbalance invoicedas a sale during the referencemonth. is If firms do not maintain information sufficient to provide actual sales volumes unit prices by the and customer categoriesspecified on the forms, estimatesof s~les volumes unit prices may provided. and be Thebasis for the estimatesmustbe consistent wlth the standardaccountingresordsmaintainedby the firm. Theestimating procedure data suppor~ng estimatesshouldresult in a reasonably and the accurate estimate whichwill be subjectto reView, Report solosin the Statewhere transfer of tit~e occurred. FOB the For salesat a ref~nenj~ermina~, State the is the onein whichthe rof~nery/terminalis located. For derNered sales (by anymode conveyance), of the Stateis the onein which buyerreceived product the the (seeAppendix for a list of Stateabbreviations). A transfer of title occursin the UnitedStates, volumes sold for export shouldbe includedunder"Wholesale ° = Sales. Residual fuel oil sales for vesselbunkering shouldbe reportedunder"Re~'] Sales. No.2 di~llate = sal~s for vesselbunkering should reportedunder=Commercial/Institutional be Salos. Reportthe entire firm's sales of the selectedproducts.This includessafes made directly by the parent, affiliates, subsidiaries; or through commissioned agents, Excludesales made among parent firm, the subsidiaries, affiliates; i.e., int~rm~ansfers/sales. and SPECIFICINSTRUC'IIONS Schedule I Part! IdentificalJonD~ta Item 1 thru 7 leslnJc~on Complete items 1 thru 7 if youare a newrespondent, if informationshown the label is or on incomplete incorrect. If changes or needto be made, cross out'he inappropriateinformation on the label andenterthe correct information the space(s) the right of the label. in to Enter the monlh year of the referencemonth. and Check type of report that is beingsubmittal. the Enter the number Schedule pages of II submittedwith Schedule This will rel]ect the total h number Statesfor whichreports are beingsubmitted. of Ente~r date the this reportis being filed, Minkthe appropriate type of entity accor~ng the definitions proVided. to Refinersoperating;n morethan one capacity should mad~ "Re~ner/Gas Plant Operator," Firms engagingin both

8 9 10 11

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SPECIFIC INSTRUCTIONS (Contlnued~ ...... reselling andretailing should ma~k "ReselledRe~iler." Firmswhichd'~rectly or indirectly control a refiner shouldmark 'Refiner/Gas Plant Operator.'Firmswhichdlre~y or indirectly control o = gas plant operator should mark"Refiner/GasPlant Operator. Thetype of entity should not change month month should from to but reflect the activity of the tirm throughout year. the 13 Enter the s(ams ~e firm at the endof the reference of month, the frm hasbeen if sold, leased, or permanently ceased opera,on, submtt letter to DQE a stating the ~'eason the ch~a'lgeIn for status. If the firm has been sold or leased, provide the name and address of the new company, the date of the bansfcr, if the firm haspermanently and ceased opera#on, provide the date the firm ceased operation. Youmayinclude the letter with your monthlyreport or sendit separatelyto theaddress shown Page on 1. Schedule I Pa~ II Certification Item Enter the name title of the individual designated the company sign the certlfical~on. and by to Theindividual mustslgn in the sp~ca provided the forma~denter the date of the signing. on Schedule II Iden~ificat~m Dat~ Item lnsb'uc~on Enterthe name the reportingfirm. of 2 Enter~e 10-digit identification number assigned the reporting firm for this survey.This ls to the number printed in the upperleft comer the company of identification labels whichhave beenprovidedto you. Sequentiallyassign a pagenumber eachSchedule page. Enter the total number pages to II of beingsubmitted item 10 on Schedule in I. Enter the month year of the referencemonth whichthis schedule beingsubmitted. and for ks Check whether 1his is anoriginal or revisedreport. Enterthe abbreviation ~e State. See for Appendix for a llst of Sta~abbreviations, A Schedule II Pa~t Ill Mon~ly State Sales of FinishedMotorG~tsoline lte..~m 7thnJ 9 Instm~on Include in the column headed "Sales 1o Older End-Users" direct sales to end-usersthat all werenot made through company-operated retail outlets. Sales made retag outlets othe~ to than theseoperated directly by the reporting company, alfltiates, or subsidiaries,should its he includedin the wholesale salescategory (Salesfor Resale).

3

4 5 6

Case 1:02-cv-01460-LB

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Reportgasolinesagasvolumes prices by gradein accordance their classification at and with the timeof sale, The intent of this formis to capturesalesvolumes prices for gasoline and sold as leadedregular, unleaded regular, premium (both leadedandunleaded),anda "mldgrade" unleaded gasolinethat lies betWeen unleaded reguter and premium both octaneandprice. in For the majority of the UnitedStates, the o~taneranges(R÷MI2) beloware appropriatefor distinguishingamong four classesof g~S01ine be repo~ted: the to Leaded Regular Greater than er equalto 87, andless than or equa~to oct.~neo 90 Unleaded Regular-Greaterthan or equ~lto 85, but tess than 88 octane. Unleaded Mldgt'ade.Equalto, or greaterthan Ba, but tess than, or equalto 90 octane. Premium Greaterthan 90 octane,leadedor unleaded. In general, automotive octanerequirements lower at high altitudes. Therefore,in some are areas of the United States, suchas the Rocky Mountain States, the octanerangesfor the gasoline gradesabovemay 2 or moreoctanepoin~ lower. For other aspectsor' gasoline be spedfflcations, please the Det~nltions See s~ction. Blends gasolinecontainingethanolor other oxygenates of shouldbe reportedaccording the to above criteria. Donot report ethanol(~lcohol) sold separately blending for purposes. SchedUleparclV II Monthly Sta~eSalesof No.2 Dis~llates Item I0and 11 Instn~ction Reportvolumeand price data in accordance what the pr~luof wassold as, regardless w~h of the actual speolflcat~o~ that p~oduct.If a No. 2 distillate wassold as a diesel fuel, of reportthat volume price in the category and ~No. DieselFuel;' if a No.2 distillate was 2 sold as a heatingor fuel oil, report that volume price in the category and "No. 2 Fue!Oil= evenif that product Conformedthe higherspecifications a dieselfuel. If salesof a No.2 distillate were to of made whichno determination be made to whether productwasspecifically sold for can as the as either a fuel oil or diesel tuel, salesvolumes prices should classit~edin accordance and be with your best estimate Of the Inte~lded use of the procluct rega~'dless of the product specifica~on: i.e., salesof No,2 distillate ~f~t youbelievewill be used hea~ing for purposes or as a boiler fuel should reportedunder"No. 2 Fuel Oil," salesof No. 2 distillate that you be believewill be used trellsportafion fuels should repo~ted "No. 2 Diese~ as be as Fuel," = Include underthe category=ResidentialSales those sales of No. 2 fuel oil to individual customersor households (as opposed businessesor institutions). Sales to apartment to buildings/complexes other mulE-family or dwelling shouldbe excluded ~'omthe 'Residentlal s Sales"categorybut includedin the "Comme~'cial/lnstitu~onal Sales' category.For thosesales to residential facil{tles for whichthe respondent unsure to where is as thosesalesare to be reported, respondents asked report those sales in the categorythat, in their best are to judgment, moreappropriate. is IncludeUnder category the "Commercial/Institutional Sales"thosesalesof either No.2 fuel oil or No. 2 diesel rue! to firms engaged transportation, wholesale retail trade, finance, in or insuranceand real estate. Also include sales to apartment buildi~gs/ccmplexes, other and multi-family dweWngs, hotels andoffice buildingsor complexes, salesto local, ~tate or Federal P~gc i

FEB-21-208G 14:48 DESC-G Case 1:02-cv-01460-LB COUNSEL 72-2 Document

983 '769 5022 P.09/13 Filed 02/22/2006 ,Page 17 of 35 "-"..'~--

Governmental facilities or organizations, a~ong military sales including thosedirected to ~th post exchanges, ~les to scho<~ls,hospitals, religioUS institutions, universities or other govemment-~upported organizatlans aL~oto be includedin this category. are = Includeunder category the "Industrial Sales thosesalesof e~lhe¢ 2 fuel oil or No.2 diesel No. fuel to pub~ic prhr~tefirms engaged mining,const~ction, manufacturing. or ~n or Include underthe c~tegory'Sales Through Company-Operated Ret~u'l OutletS" thOSe sales of No, 2 diesel fuel made throughcompany-operated retail outlets whichare subiect to motor rue! gallonage taxes. Refer~ the de,hilton of company-operated ou~dts. retail Includeunderthe category "Salesto OtherEnd-Users" (e.g., salesto agricultural customers or to ub'~fties) salesof either No,2 fuel oil or No,2 diesel fuel to end-USe customers included not in a~yof the above four categories, Schedg[e II PadV Monthly Sta~eSalesof Other Peboleum Products Instruct/o~n 12 thru 19 Include under category the =RetailSaJas" direct salesto arid-users. ~11 Includeunder category 1he WVholesale Sa~es" salesto resellers, all DEFINITIONS Affiliate/Subsidiary- En~es direc~yor indirectly conuolled a p~rant, by ASTM Theacronym11 the American for Societyfor Testingarid M~/eriat~, Aviation Gaso~ne (Rnished} All special grades gasolinefor usein aviat/on reciprocat;ng of engines, as given in ASTM Spech3catlon 910 and Military Specification MIL-C--5572, D Excludes blending componen~ whichwil| be us~Jin blending or compounding finished into aviationgasoline. Commercial/lns~fif~bnalFirmsengaged transportation, wholesale retail l~adefinance, in or insurance, and ~eal estate, Also included ~re apartmentbui|dlngslcomplexesand other multi-family dwellings, hotels, andoffice build|ngs or complexes, local, State or Federal facilities or organizations includlng the military, schools,hospitals, religious institutions, universities andall other government-supported organizal~ons. Gompa~ny'-OperatedReta.i.I - Anyretail outlet (e.g., servicestation) selling gasoline Outlet dieselfuel which under direct controlof the f~rmt~ngthis reportby v|rtua of the ab~Ry" is the to set the retail product price anddirectly collect all or part of the retail margin. Thiscategory includes retail outlets: (1) beingoperatedby salaried emp(oyees the company of and/or subsidi~ies a~liates, and/or(2) involvingpersonnel and servicescontracled the firm. by pistil/ate Fuel Oi/- A generalclassification for oneof the petroleum fractions produced in convenfiona~ dLst~(lationoperations. ~s usedpr~'mari|yfor spase It heating,on- andoff-h~ghw~y diesel enginefuel (including railroad enginefuel andfuel for agricultural machinery), and

FEB-21-2008 14:48 DESC-GDocument Case 1:02-cv-01460-LB COUNSEL 72-2

703 787 18 of 35 Filed 02/22/2006 Page5022 P,10/13

electric power generation.Included products are known No. 1, No, 2, andNo. 4 fuel oils; as andNo.1, No.2, andNo.4 diese~ fuels. a~ No. 1 D~stil/a~.. A petraleum dist~ll~e whichmeets specifications for No. 1 Heatingor the Fuel O~l as defined in A~M 396 a~or the spes~c~tions No, 1 Diesel Fuel as defined D for in ASTM Specification D 975, No. 1 Diesel Fuel - A volaBe dist~ate fuel oil with a boiling ran;e between 3o0-575"F and usedin hlgh-speed diesel enginesgenerally operatedunderwide variations in speedand Iced, Includes type C-B diesel fuel used for clt~/buses and similar operat/ons.Properties are defined in A~TM Sp~d~cation 975. D

(2) ,N,,o. 1 Fu,el Oil -

A light distillate fuel o=1 ~ntended usein vaporizing for pot-type bumer~. ASTM 8peci~cationD 396 specifies for ~;s grademeximum distillzd~o~ temperatures of 400°Fat the 10-percent point and 550"F at the 90-percent point, and kinematic '~scos'~eS between and2.2 ~'~stokesat 100°F, 1.4

N.,p. 2 D/stilPate- A petroleum dLst~ilatewhichmeets spacifical~ons No,2 Heating the for or Fuel Oil as defined~nASTM 396~ncl/or the specie,athens No. 2 DieselFuel as defined D for in ASTM Specit~ca~on 975. D

(1) N_o.2 Diesel Fuel -

A gasoil type distillate of lower volaffiity with distillation temperatures the 90-percentpoi~ between at 540-640"F use in hlgh-speed for diesel enginesgenerally operatedunder uniform speedand load conCti~onso Includes Type R-Rdiesel fUel usedfor railroad locomotiveengines,andTypeT-T for dieeel-eng~ne tracks. Prope~es defined in ASTM a~e Specific~onD 975. ¯ A distillate fuel o1! for use in atomizingtype bumen; domestic for heating or for moderate capacity cemmer¢ial-indust¢ial bt~rner units. ASTM SpecificationD396spec'diesfor this gradedistiilation temperatures the g0.pe~cent at point between540"F and 640"F, and kinematic viscosities between2.0 and 3.6 cen~stokes 100"F. at

(2) No-2 Fuel Oil

No.4 Fue.~lo A fuel oil for commercial burnerinstallations not equipped with preheating facilities. It is used ex~aneively industrial pla~t~.Th~s in grade a blend distillate fuel o~ is of and residual fuel oil stocks that conformsto ASTM Specification D 396 or Federa~ Spec~fic~ionW-F*815C; kinematic viscosity is be~veen and 26.4 cantlstokes at its 5.6 100"F.Also includedis No. 4-D, a fuel oil for low- andmedium-Speed engines diesel that conformsto ASTM ~pec~cat~ee 97~. D Fin~shedMotorGesollneA complexmixture of relatively volatile hydrocarbons,w~th or * withoutsm~llquantities of additives, blended fon~a fuel suitable for usein spark-ignition to engines.Specification for motor9~sefine,as 91yen ASTM in SpecificationD 439-88 Feder~J or Specification W.~-1690B, include a bo~ing~ange 122" to 158°Fat ~e 10-percentpoint to of ° 365 tc 3"/4°F at the 90.percent point anda Reid vaporpressure ~,~ge~om to 15 psi. "Motor 9 gasoline" includes finished leaded gasoline, finished unleadedgasoline, and gasohol. Blends~ock excluded is until blendinghasbeencompleted. (Alcoholthat is to be usedin the blen~ng gasoholis also excluded,) of a. ~Leaded Regu,/arGaso/i~e Gasolinehaving an anb'knockindex (R+M/2)greater than equalto 87 andless than or equa!to 90, andcontaining morethan 0.05 grams lead or of 0.005 grams phosphorus gallon. of per

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U.n/eaded RegularGasdlne.Gasolinehaving an ~ntiknockindex (R+M/2) greater than equal to 85 andless ~an 88, and containing not morethan 0.05 grams lead or 0.005 of grams phosphorus gallon. of per ~/eadedMid.qradeGasoF~ne~Gasolinehaving an antiknock index (R+M/2)greater th~ or equalto B8 andtess than or equal to 90, andcontaining not morethan 0.05 9rams of le~d or 0.005 grams phosphorus gallon. of per Prem,~um Ga,solin.e, -Gasoline having an antiknock index (R+M,/2)greater than 90. Includes bo~hLEADED premium gasoline as well as UNLEADED premium gasoline, (1) Leaded ~[_emium Gasoline- Gasolinehav~ng antiknock index {R+M/2) an greater than g0. and cont~inlng morethan 0.05 gramsof lead or o.o05 gramsot phosphorus per gallon, Gasoline - Gasoline having an antiknock index (R+M/g)greater (2) UnleadedPremium than 90, and containing not more than 0.05 grams of lead or 0,005 grams of phosphorus gallon. per Note: For ~is sun/ey, gasoline sales shouldbe reported by gradein accordance with their classification at the time of sale. In general,automotive octane requi~'ementS lowerat high are ~tudes. Therefore,in some areas of the United States, such as the Rocky Mountain States, the octanerangesfor the gasolinegradesabove be 2 or moreoctanepoints lower. may

8=

~ - Anyassociation, company, corporal~on, asia.re, individual, joint-venture, partnership, or sole proprietorship or any other entity, however organized, including charitable, educational, other charitableinsti~Jt~ons,andthe Federal or government includingoperations, depadments, Federal~geneies, othe~instrumentalities, andState andIoca~governments. and GasPlant Operator- Anyfirm. including a gas plant owner,whichoperatesa gasplant and keeps gaS the plant records.A gasplant Is a facility in which natural gasliquids are sepa?ated fromnatur',~l gas, or in whiohnatural gasliquids are fractionatedor otho~se separated into natural gasliquid products both. or

10.

Gasoho/- blend of finished motor gasoline 0eadad unleaded)and ~lcohol (generally A or ethanolbut sometimes methanol),limited to 10 percentby volume alcohol. For the purpose of of ~s surveyreport gasohol the gradeof gasolinein whichit was in sold. Industrial - Firmsengaged mining,construction,or manufacturing. in KeroSene A petroleumd~=Jllat~ that has a ma~3mum di~llation temperature 401 degrees of F at the lO-percent recoven] point, a final boiling point of 57Zdegrees anda minimum F, flash point of ~00degrees Included ~e the two classifications recognized ASTM F. by Spec~cat~on D 3699:No.1-K alld No.2-K, andall gradesof kerosene called rangeor stove eli whichhave pmpe~es similar to No. 1 fue~oil, but w~h gravity of about43" APIa~d~ maximum a endpoint o1 625"F.Kerosene usedin spaceheaters, cookstoves, and waterhea~ers iS suit~le is a~d for useas an illuminant when burned w~ck in lamps,

11.

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Page 20 of 35

Po12/13

Kerosene.type JetFuel - A quality kerosene productwith ~= maximum distillation temperature of 400degrees at the lO-perccntrecoverypoint anda final maxim boiling point of 572 F um degreesF. Thefuel Ls designatedin ASTM Specification D1655 Military Specification and MIL-T-5624L (Grades JP-SandJP-8), A relatively low-#oozing point ~stil~ate of the kerosene type usedprimarily for commercial turboiet andturboprop aircraft engines. 14. 15. Pare_____~ o A l~rrnthat directlyor indirectlycontrols another entity. P~ropane, Consumer Grade. A normally gaseous paraf~nic compound (C3H~},whichincludes all products coveredby Natural GasPolicy Act Specifications for commercia! and HD-5 propane and ASTM Specification D 1835. EXCLUDES: feedstock proper=as, which are propanes classified as consumer not gradepropanas,including the propane portion of any natta-~gasliquid m~xes, i.e., butane-propane mix. ReferenceMonth- The calendar monthand year to which the reported cost, price, and volume informationrelates. R~ffner- A firm or the p~t of a firm that refines products blendsandsubstantially changes or pro~/~'~ts, or refines liquid hydrocarbons oil andgasfield gases,or recoversliquefied from petrofeum gases incident to petroleum refining andsells thoseproducts resellers, reta'lers, to reseller/retailers or ultimate consumers. "Refiner" includes any ownerof productswhich contracts to havethoseproductsrefined andthen sells the refined productsto resellers, retailers, or uWmate consumers. Reseller - A firm (ether than a refiner) that carries on the trade or business purchasing of refined petroleum productsandreselling themto purchasers other than ultimate consumers. Reseller~Retailer firm (otherthana refiner] that carrieson the tradeor business -A activ{t;es of both a reseller anda retailer;, i.e., purchasing refined petroleum products reselfing them and to purchasers may either ultimate or other than ultimate consumers. who be Reside~_~.~In cases sales of No. 2 Fuel Oil, includesindividual customers households of or (as opposed businesses institutions} whoostensiblyusethe fuel in a residence. to or Salesto apartmentbuildings/complexes to other multi-family dwellings are excludedfrom the or "Residential8ales" categonjendare includedin the "Commercia//]nst~bl/onaJ c~tego~y. S~es" ,Residua/Fuel Oils - Thetopped crudeof refinery opera~ions, whichincludesNo. 5 andNo. 6 fuel oils as defined in ASTM Specification D 396and Federal Specification W-F-815C0 Navy SpeciaJfuel o}1 asdefinedin Military Specification MIL-F-859E incluo~ngAmendment 2 (NATO Symbol F-77), andBunker fuel oil. Residualfuel oil is usedfor the production electric C of power,spaceheating, vessel hunkering,andvarbusindust~al purposes, Retager A firm (other thana refiner, reseller, or reseller/ret~ler) that carrieson the ~rade busi~lessof purchasing refined petroleum productsandreselling themto ultimate consumers.
3°

16.

17.

18. 19.

20.

21.

Sa/e* Thet~ulsfer ~f tff~e fromthe seller toa buyer a price. EXCLUDE: for Intra~rm transfers, product consumed directly by the reporting firm, or sales of bonded fuel. ~Jso exclude products delivered/10~ned exchange to partners except wherethe amount g~Ven exceeds up the amount received arid the differential isinvoicedas a sale duringthe reference month,

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UnitPdce Total revenue derived from the sale of productdudng referencemonth the ~the total volumesold: also knownas the weighted avamga price. Total revenue shauldexclude t~xesbut includetransportation all coststhat were paid as part of the purchase price. ~r~itedSlates-"l~e 50St~t.esand DLstrict of Columbia. the

APPENDIX A

LIST OF STANDARD STATEABBREVIATIONS

CO... CT.., DE,.. FL... ID... IL...

Arizona Arkansas California Colorado Connecticut Delaware Dis~ct of Columbia Rodda Georgia Hawa~ Idaho Illinois Indiana

KS...

KY ... Kentucky LA ... Louisiana ME... Maine MD... Maryland MA... Messachussetts MI ,.. Michigan MN, .. Minnesota MS ... Mississippi MO... Missou~ MT ... Monlan~ NE ... Nebrask~ NV ... Nevada NH... NewHampshire NJ ... NewJersey NM... NewMexJco NY ... NewYork NC.-- NorlhC~rolina

ND.., OH,.. OK... OR... PA... RI ... SC ... SD... TN .,. "IX ... LIT ... VT ,.. VA ... WA... WV... WI .., WY...

North Dakota Ohio Oklahoma Oregon Pennsyhtan(a Rhode Island SouthCarolina South Dakot~ Tennessee Texas Utah Vermont Virginia Washington Wesl:V~rginia Wisconsin Wyoming

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A Comparisonof Selected EIA-782 Data with Data From Other Sources
by JacobBournazian

Introduction
The Energy Information Administration (EIA) EIA-782survey series collects data on petroleum markets to fulfill legislative mandates from Congress and to provide comprehensiveinformation for evaluating market behavior. It includes three surveys: Form EIA-782A,"Refiners'/Gas Plant Operators' Monthly Petroleum Product Sales Report;" Form EIA-782B, "Resellers'/Retailers' Monthly Petroleum Product Sales Report;" and Form EIA-782C, "Monthly Report of Prime Supplier Sales of Petroleum Products Sold for Local Consumption." Anyreference to the EIA782 prices refers to the series that includes both the EIA-782Aand EIA-782Bsurveys. Any reference to the EIA-782 volumes refers to the ElA-782Csurvey series. Any reference to the specific survey is identified as such. This article compares the data from the EIA-782survey series with other sources to assess the quality of the EIA-782data. Significant differences and trends among data series mayindicate the need for changes in data collection and processing, the reporting population, survey or sample design, or may simply reflect conceptual differences

The following data sources were used to comparewith the EIA-782series. For prices: o The Bureau of Labor Statistics (BLS) Office of Consumer Price Index (CPI) data for retail prices of motorgasoline and residential No. 2 fuel oil. The BLSOffice of Producer Prices (PPI) data for wholesale prices of motor gasoline, No. fuel oil and diesel fuel, and kerosene-type fuel. jet Oil Price Information Service (OPIS), a privately owned petroleum news and infurmation source, for retail prices of on-highway diesel fuel. Form EIA-888, "On-HighwayDiesel Fuel Price Survey," for retail diesel fuel. prices of on-highway

FormE1A-878,"Motor Gasoline Price Survey," for retail pumpprices of gasoline.

FormEIA-821, "Annual Fuel Oil and KeroseneSales Report," for retail volumes of distillate and residual fuel oil.

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e

EIA's Petroleum Supply Ammal (PSA) product supplied for volumes of distillate residual fuel oil, and motorgasoline. Federal HighwayAdministration (FHWA) retail for volumes of motor gasoline.

fuel oil,

e

A more detailed description of each data source is contained in the Notes section at the end of this article.

Overview
The EIA-782prices track closely ~vith other EIA surveys and OPISprices while the BLSprices are higher than EIA-782prices. Tbe EIA-782Cvolume data were compared with data from other EIA surveys and the FHWA data series. The EIA-782C volumes for motor gasoline and distillate fuel follow closely with the other data series. However,the EIA-782C residual fuel volumes are significantly below the levels shownby other EIA surveys. The following sections of this article discuss the differences among price and volumedata sources for No. 2 distillate the fuel oil and diesel fuel, gasoline, kerosene-typejet fuel, and residual fuel.

Price Comparisons
Tables FEI - FE6 show that EIA-782national prices are generally lower than the BLS,EIA-878, and EIA-888price data series and follow OPISprices closely. Retail EIA-782prices include data from both the EIA-782Aand EIA-782Bsnrveys. Differences in the survey methodology across the surveys explain someof the price differences. The BLS, EIA-878, EIA-888, and OPIS prices include taxes, whereas EIA-782 prices exclude taxes. For Tables FE3 and FE5, a U.S.-total-weighted Federal and State tax provided by the FHWA deducted from BLS, EIA-878, EIA-888, and OPIS retail prices. No is adjustment was made to the BLS, EIA-878, EIA-888, and OPIS prices for local sales taxes and other State and local fuel taxes such as environmental taxes, underground storage tank taxes, and transportation use taxes because there were not sufficient data available for making adjustmentsat the U.S. level. BLSretail prices are collected from urban areas, whereas EIA-782, EIA-878, and EIA-888 prices are collected from both rural and urban areas across a region or state. The BLS wholesale prices used to calculate the Producer Price Index are collected from a sample of refiners and represent the refiners' selling price for the selected refined products. The EIA782 gasoline, No. 2 fuel oil and diesel prices are collected frmn a census of refiners and a sampleo f resellers and retailers. EIAresale prices represent sales to a seller whowill resell the product, i.e., sales by refiners that are not to the ultimate consumer.In most transactions, the wholesale price and resale price are the same. However,there are circumstances where a

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refiner may make a wholesale sale to an ultimate consumer. EIA began using the term "Reseller" in 1983 to exclude wholesale transactions to ultimate consumers. The EIA-782uses current period volume ~veights, ~vhile BLS, tbe EIA-878and EIA-888 use fixed weigbts to computeweighted average prices. The EIA-782 prices represent all sales during tbe montb, while BLSprices represent the average of outlet prices collected on different days across the first tbree weeksof tbe month. The EIA-878and the EIA-888weekly surveys also represent a point in time in the week. In this article, the annual EIA-878and EIA-888prices were calculated using simple arithmetic means of the published weekly prices.

Residential No. 2 Fuel Oil Table FEI shows BLSprices are 3 to 5 percent bigher tban EIA-782 prices from 1995 tbrougb 2003. The difference between the two series widened from 3 to 5 percent after 1999 and then declined to the usual 3 percent level after 2001. BLSprices are obtained from urban areas only and do not reflect cmnplete geographic coverage for this product. EIA-782prices are volume weighted price estimates.

TableFE1.'U.S. ResidentialNo. 2 Distillate Prices, 1995-2003

I995 1996 1997 1998 1999 2000 2001 2002 2003

86.7 98.9 98.4 85.2 87.6 131.1 125.0 112.9 135.6

89.3 101.9 101.4 88.0 90.0 136.0 131.0 116.2 140.0

103.00% 103.03% 103.05% 103.29% 102.74% 103.74% 104.80% 102.88% 103.28%

EIA Soume: Table 18 PetroleumMarketing Monthly.

No. 2 Fuel Oil Resale Table FE2 shows BLS wholesale prices vary widely with EIA-782Aresale prices between a range of 5 to 14 percent bigher than EIA-782A. differential bet~veen the series bas decreased The during the past 2 years. One possible reason is that the EIA-782A prices are current period volumeweigbted averages, and larger volume sales by refiners at lower prices receive greater

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weight in calculating EIA-782Aprices. The BLSprices are calculated using weights derived from other (non-current) time periods. BLSdoes adjust their weights on a monthly basis.

TableFE2U.S. Refiner ResaleNo. 2 Fuel Oil Prices, 1995-2003

1995 1996 1997 1998 1999 2000 200I 2002 2003

51.1 63.9 59.0 42.2 49.3 88.6 75.6 69.4 87.9

56.6 69.4 64.9 48.2 55.9 93.3 84.5 74.8 95.6

110.80% 108.66% 110.04% 114.22% 113.32% 105.32% 111.79% 107.77% 108.75%

EIA Soume: Table 4 PetroleumMarketingMonthly. Diesel Fuel On-Highway Table FE3 shows the annual estimates for EIA-782, EIA-888, and OPIS retail on-highwaydiesel fuel prices from 1995-2003. EIA-782, EIA-888, and OPIS prices vary mostly by 1 to 2 percent and track closely over this time period. Although State and Federal diesel fuel taxes were subtracted from the OPIS and EIA-888prices, no adjustment was made for local sales taxes, and additional State and/or local taxes relating for environmentalregulations and transportation use. Table FE3. U.S. Retail On-Highway Diesel Fuel Prices, 1995-2003

1995 1996 1997 1998 1999 2000 2001 2002 2003

67.0 78.8 74.5 59.3 68.5 103.6 94.3 86.2 104.4

67.5 80.0 75.8 60.2 67.7 104.5 95.4 87.3 105.6

66.0 78.8 74.7 58.9 66.5 103.7 94.4 86.6 104.6

100.72% 101.55% 101.79% 101.52% 98.83% 100.87% 101.20% 101.28% 101.12%

98.53% 100.05% 100.24% 99.26% 97.10% 100.14% 100.15% 100.44% 100.19%

EIA Soume: Table 16 PetroleumMarketing Monthlyfor EIA-782data.

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OPISprices are a compilation of different sources obtained from several credit card issuers and do not reflect complete sales coverage for this product. Outlets from leading truckstop chains, as well as outlets participating in a price and credit reporting service report daily retail prices to OPIS. Approximately 4,500 price quotes are reported daily. In this article, the annual OPIS prices at the U.S. level were calculated using simple aritbmetic meansbased on an average of the prices reported as of Monday each weekof the year. of The EIA-888 prices are based on a sample of 350 outlets. The sample uses a probability proportional to size sampling technique. The U.S. average is calculated using a weigbted average of the regional prices where the weights are volumesreported on another EIA survey at the time of sample selection. Diesel Fuel Resale Table FE4 shows the annual estimates for EIA-782A resale and BLSwholesale prices for No. 2 diesel fuel. BLSprices are consistently higher witb tbe difference doubling from 7%in 2002 to 14%in 2003. This product category contains prices for both lmv and high sulfur diesel fuel. Tbe EIA-782A volume weighted averages reflect tbe relative importance of these two sulfur categories reported by refiners in the calculation of the average price. TableFE4. U.S. Refiner ResaleNo. 2 Diesel Fuel Prices, 1994-2003

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

52.9 53.8 65.9 60.6 44.4 54,6 89.8 78.4 72.4 88.3

56.0 57.0 69.9 64.6 47,4 57.1 93.1 83.6 77.7 100.9

105.94% 105.87% 106.06% 106.52% 106.83% 104.58% 103.69% 106.66% 107.35% 114.29%

EIA Source: Table 4 PetroleumMarketingMonthly. Motor Gasoline - Retail Table FE5 shows the annual estimates for EIA-782, EIA-878, and BLSretail prices from 19942003. This paper only discusses the prices for regular grade gasoline. BLSprices vary between5 and 8 percent above the EIA-782 prices. EIA-878 prices vary bet~veen I and 6 percent above EIA-782 prices during the same time period. Even though both BLSand EIA-878 prices have been adjusted for federal and state taxes, these prices still contain additional taxes relating to local sales taxes and highwayuse taxes that could not be removedfor this analysis. As a result, the EIA-782prices sbould be lower tban these otber series.

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Table FE5. U.S. Retail MotorGasolinePrices, RegularGrade, 1994-2003

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

69.4 72~5 81.2 80.0 62.5 73.0 106.6 99.6 91.6 111.0

70~1 73.7 85.0 82.0 64.4 75.2 109.6 103.2 96.1 117.2

73.9 77.3 85.7 85.5 67.4 78.2 112.2 107.3 97.4 120.2

101.01% 101.66% 104.68% 102.50% 103.04% 103.01% 102.81% 10&61% 104.91% 105.59%

106.48% 106.62% 105.54% 106.88% 107.84% 107.12% 105.28% 107.76% 106.33% 108.26%

Source: Table 31 Petroleum MarketingAnnualfor EIA-782data. The annual BLS prices were calculated using simple arithmetic mean of monthly prices. The BLSmonthly prices are calculated based on approximately 900 price quotes. Approximately 25 to 35 prices are collected from outlets in each published geographic area. EIA-782 prices represent all sales transactions through company-operated outlets by all refiners and a sample of resellers/retailers throughout the U.S. There are limitations in comparinga simple average data series with a volumeweighted average price series across monthsbecause of the effect of volume changes throughout the year on the annual price estimate. The EIA-878also uses fixed volume weights for calculating U.S. prices based on approximately 800 price quotes each week. Separate outlet weights are used based on the sampled outlet's number of pumps, a proxy for sales volume, to obtain weekly averages for the specific formulations, grades and geographic areas. The weights used in aggregating grades, formulations and geographic areas are derived using volume data from the EIA-782C "Monthly Report of Prime Suppliers Sales of Petroleum Products Sold for Local Consumption," and demographic data from the Bureau of the Census and Department of Transportation on population, number of gasoline stations and numberof vehicles. A simple average of ~veekly prices was calculated to obtain the annual average price. The EIA-782prices utilize all sales transactions throughout the reference month, whereas the EIA-878prices are Monday morning prices as of 8:00 A.M. Motor Gasoline - Resale Table FE6 shows the annual estimates for EIA-782A and BLSresale motor gasoline prices from 1994 - 2003. Except for 1994, the BLSprices vary between 1 and 3 percent from the EIA-782A during this ten-year period. The data track closely during 1998 - 2002 despite increased price volatility in the gasoline markets during this time period. The difference widened during 2003 whenthere were strong price increases in gasoline markets.

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Table FE6. U.S. Refiner ResaleMotorGasolinePrices, RegularGrade, 1994-2003

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

56.6 59.3 68.5 67.3 49.9 62.0 94.2 86.5 80.6 98.1

59.2 60.9 70.7 69.6 51.1 62.3 92.5 87.9 81.0 100.6

104.64% 102.68% 10&26% 103.41% 102.42% 100.51% 98.14% 101.58% 100.51% 102.54%

EIA Source: Table 6 PetroleumMarketingAnnual.

Kerosene-TypeJet Fuel - Resale Table FE7 shows the annual estimates for EIA-782A refiner resale kerosene-type jet fuel prices and BLSwholesale kerosene-type jet fuel prices from 1994 - 2003. The two price series vary between I and 5 percent during 1994 - 1998. The price differential narrows after 1998 and remains stable at approximately 1 percent. BLSwholesale prices are expected to be similar to EIA-782A resale prices since EIA kerosene-type jet fuel prices are collected from a census of refiners on Form EIA-782A BLScollects from a sample of refiners. and

Table FE 7. U.S. Kerosene-Type Fuel ResalePrices, 1994-2003 Jet

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

53.4 53.9 64.6 61.3 45.0 53.3 88.0 76.3 71.6 87.2

53.8 55.1 67.6 64.0 46.7 53.9 89.1 78.2 72.2 87.3

100.75% 102.23% 104.64% 104.40% 103.83% 101.16% 101.21% 102.52% 100.78% 100.08%

EIA Source: Table 4 PetroleumMarketingMonthly.

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Volume Comparisons

EIA-782Cvolumes are compared with volumes reported in the EIA-82 I, the PSA, and the FHWA data series. Product supplied in the PSAis an estimate of the demandfor petroleum products. It is calculated by adding and subtracting volumes as they move in and out of the primary distribution stream. Sales volumedata from the EIA-821reflect the transfer of product title from a seller to a buyer whereas the EIA-782C measures sales into the States where the products are ultimately consumed.FHWA doesn't collect actual sales data on gasoline and diesel fuel. States report their fuel voltamas to FHWA based on the beginning inventory at the terminal facility minus exports plus shipments to the terminal during the reporting cycle. The difference in survey populations, concepts and methodologyunderlie some of the differences that exist between the EIA-821, the PSA, and the FHWA series. data Distillate Fuel Oil Table FE8 shows volumesof distillate fuel oil for the EIA-782C, EIA-821, and PS,'t series from 1993 through 2002. EIA-782C volumes have been below EIA-821 volumes since 1993 and below PSA volumes since 1997. The differential continues to grow wider after 1999. Table FE8 also shows that the difference between the EIA-782Cand EIA-821 volumes is greater than the difference between the EIA-782C and the PSA volumes.

Table FE&U.S. Distillate Fuel Oil Volumes, 1993-2002

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

48,029 49,188 49,332 51,753 51,903 52,371 54,614 55,670 57,344 55,237

48,290 50,424 51,469 53,379 54,366 55,306 57,573 59,601 59,911 59,343

46,622 48,477 49,158 51,731 52,665 53,064 54,759 57,217 58,971 57,885

100.54% 102.51% 104.33% 103.14% 104.75% 105.60% 105.42% 107.06% 104.48% 107.43%

97.07% 98.55% 99.65% 99.96% 101.47% 101.32% 100.27% 102.78% 102.84% 104.79%

EIA Source: Table 50 PetroleumMarketingAnnualfor EIA-782C data. Table $5 PetroleumSupply Annualfor PSA data. Table 1 Fuel Oil and Kerosense Sales, 2002for EIA-821 data.

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All three data series show a decline in volume from 2001 - 2002. Although Table FE8 shows total distillate volumes, a closer review of the energy use sector volumes in the ElA-821data series (not sbown this table) provide someexplanation for the variation betweenthe data series. in EIA-821data showthat sales of distillate fuel oil declined in the industrial, commercialand electric powersectors as moderate natural gas prices reduced the opportunities and need for fuel switching from natural gas to distillate. One possible source for the widening gap between EIA821 and EIA-782C volumes is the sales reported for on-highwayuse, which comprised 58%of all distillate sales in 2002 in the EIA-821data series. The EIA-821on-highwayenergy use sector shows an increase of approximately 27%since 1996 and is the largest componentcontributing to the increase in distillate volumes for that survey during the past 7 years. The EIA-821volumes for on-highway use are obtained from the Federal HighwayAdministration and used in place of data reported for this category. However, some EIA-821 respondents may report sales to commercialand institutional fleet vebicles in the commercialuse category rather than in the onhighway use category. Iftbe commercial category contains some on-highway use volumes, and exogenous data are used to replace the data for on-highwayuse, then some double counting of distillate volumesfor transportation use on the EIA-821mayoccur. If sales to fleet vehicles, which are reported in the commercialcategory., are increasing at approximately the same rate as other distillate sales for other on-highwayuse, then the amountof double counting of distillate sales in the EIA-821survey mayalso be increasing over the past seven years, and maycontribute to any differences between the EIA-782C EIA-821data series. and Motor Gasoline Table FE9 shows volumes of motor gasoline from the EIA-782C, PSA, and FHWA series 1993 through 2002. Table FE9, U.S. Motor GasolineVolumes, 1993-2002

from

1993 117,886 116,614 97.22% 98.92% 114,607 1994 120,151 116,523 118,531 96.98% 98.65% 1995 122,582 119,405 120,876 97.41% 98.61% 1996 123 904 97.63% 99.53% 120,969 123,327 1997 125 632 122,901 125,045 97.83% 99.53% 1998 128 696 98.31% 99.85% 126,518 128,504 1999 131 066 100.91% 129,247 132,261 98.61% 2000 129 173 129,876 132,280 100.54% 102.41% 2001 132 029 131,991 134,110 99.97% 101.58% 2002 135 164 135,640 137,664 100.35% 101.85% EIA Source: Table 48 PetroleumMarketingAnnualfor EIA-782C data. Table $4 PetroleumSupply Annualfor PSA data.

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EIA-782C and PSA Table FE9 sho~vs the differential between the EIA-782Cvolumes and the PSA volumes narrowed during the past ten years with the difference being within 1% since 1999. One reason the differential narrowed during the 1990s was that the PSA improved its coverage of downstream blending of finished motor gasoline by including gasoline blenders in the survey reporting population. Blending of fuel ethanol, methanol, methyl tertiary butyl ether (MTBE),and other blend stock ~vith gasoline often occurs downstream from the refineries. EIA-782C and FHWA Table FE9 also sbows that EIA-782C volumes generally track closely with the FHWA motor gasoline volumesand the differential has remained at 2 percent since 2000. FHWA estimates the gasoline consumption by the federal, state, and local government since these volumes are not taxed. Also, FHWA various models to estimate non-highway use in each state. FHWA has estimates federal government highway gasoline use based on information obtained from federal agencies. State-reported federal use of gasoline in excess of the FHWA estimate is presumedto be either civilian non-highwayor military use and is eliminated from the Federal figure reported by the State. The constant level of the difference in volumes bet~veen these two series maybe due to some under coverage of the market by the EIA-782C or differences in how FHWA estimates gasoline sales for off-highway and governmentuse. Residual Fuel Oil Table FEI0 shows volumes of residual fuel oil from the EIA-782C,EIA-821, and PSA from 1993 through 2002.

Table FE10. U.S. ResidualFuel Oil Volumes, 1993-2002

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

13,555 12,753 9,623 10,610 10,583 11,513 10,259 9,733 10,285 8,259

15,064 14,825 12,318 13,257 12,504 14,730 13,328 13,211 13,609 10,362

16,559 15,652 13,061 13,000 12,218 13,598 12,724 13,375 13,508 10,731

111.13% 116.25% 128.01% 124.95% 118.15% 127.94% 129.92% 135.73% 132.32% 125.46%

122.16% 122.73% 135.73% 122.53% 115.45% 118.11% 124.03% 137.42% 131.34% 129.93%

EIA Source: Table 49 PetroleumMarketingAnnualfor EIA-782C data. Table $6 PetroleumSupply Annualfor PSA data. Table 2 Fuel Oil and Kerosene Sales, 2002for EIA-821 data.

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EIA-782C vs. PSA and EIA-821 Table FE10 shows the EIA-782Cis significantly below the PSA and EIA-821 data series. The difference bet~veen the EIA-782C the other two series is quite large and fluctuates relative to and the EIA-782Cfrom 1 l% in 1993 to a high of 37%in 2000. The gap between the EIA-782Cand the EIA-821has slightly declined since 2000 but there remains a significant gap of 25%in 2002. The gap between the EIA-782C and P&'t data has remained at approximately 30% since 2001. The large and continuous divergence between the EIA-782Cand the other two series indicates that the EIA-782C missing someresidual fuel oil sales. is Residual fuel oil sales plunged in 2002, with the EIA-782Cvolumes declining by 20%, EIA-821 declined by 24% and PSA declined by 21%. Although Table FEI0 shmvs total residual fuel volumes, a closer review of the energy use sector volumesin the EIA-821data series (not shown in this table) provide someexplanation for the variation between the data series. Environmental regulations restricting fuel use, abundant supplies and moderateprices for natural gas prices all contributed to the sharp decline in residual fuel sales. The EIA-821data series showselectric power and vessel bunkering, the largest categories for residual fuel, falling by 37%and 10% respectively,during 2002. The gap bet~veen the EIA-782Cand the EIA-821 narrowed by 7%but the gap bet~veen the EIA-782C and PSAremained approximately the same between 2001 and 2002. The narrowing of the large gap between the EIA-782Cand the EIA-821 from 2001 to 2002 suggests that the sales related to fuel switchingfrom natural gas to residual fuel that occurred on a large scale during 2001 maycontribute to the divergence between the EIA-782C the EIA-821 and and PSAdata series.

Table FEll. EIA-821 andEIA-782CU,S. Residual Fuel Oil Volumes by PADD,2000-2002 (Million Gallons) 2000 2001 2002 EIA-782C Residual Fuel Oil US 9,733 10,285 8,259 EIA-821USResidualFuel Oil 13,211 13,546 10,362 PercentageEIA-782C/EIA-821 73.67% 75.93% 79.70% Percentage Across PADDs EIA-782C/EIA-821 PADD1 73.75% 73.63% 76.62% PAD Subdistrict 1A 101.11% 83.18% 96.66% PAD Subdistrict 1B 87.42% 87.84% 86.02% PAD Subdistrict 1C 55.20% 59.69% 64.65% PADD2 48.20% 48.47% 60.40% PADD3 67.68% 80.70% 82,06% PADD4 328.57% 332.71% 297.10% PADD5 83.47% 82.49% 87.66% EIA Source: Table 49 PetroleumMarketingAnnualfor EIA-782C data. Table 2 Fuel Oil and Kerosene Sales, 2002for EIA-821 data.

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Table FE11 compares the EIA-782C and EIA-821 volumes for 2000 -2002 across the five PADD regions. Tbe data showtbat during this time period, the 782Cdata are missing significant volumes in PADSub-district 1C and in PADDs and 3. Although, the EIA-782C volumes are 2 approximately 3 times as high as tbe EIA-821 volumes in PADD PADD is the smallest 4, 4 market with approximately 3% of total US residual fuel salas. Sub-district 1C comprises approximately 25%of U.S. residual fuel sales and PADD constitutes approximately 15%. 3 Additional research is needed, mainly in PAD Sub-district IC and PADD to determine the 3, causes for tbe divergence between tbe EIA-782C EIA-821data series. and

Summary
The EIA-782 petroleum product prices were compared witb alternative sources from other EIA surveys, BLS, and OPIS prices. The EIA-782 prices tracked closely with otber EIA surveys and OPIS prices. BLSprices were higber tban EIA-782prices, and the price differences widened in 2003 across all products. Somedifference was expected between these two series because EIA collects prices from a census of refiners and BLS collects prices from a sample of refiners. The EIA-782C volume data were compared with data from other EIA surveys and the FHWA series. Tbe EIA-782C volumes for motor gasoline and distillate fuel track closely ~vith the otber data series. However,the EIA-782C residual fuel volumesare significantly below tbe levels shownby other EIA surveys. The large difference bet~veen the EIA-782Cresidual fuel volumes and the other data sources requires further investigation into the reporting practices of the EIA-782C respondents for this product. Other differences exist among data sources because of different the reporting populations, geographic and/or market coverage, survey design, methodology, reference period intervals, and product and energy-use sector definitions.

Notes
Data Sources Tbe Form EIA-782A,"Refiners'/Gas Plant Operators' Monthly Petroleum Product Sales Report," collects monthly price and volumedata at the State level for 14 petroleum products for various retail and wholesale marketing categories. It is a census of refiners and gas plant operators. The frame is updated on an ongoing basis using respondent lists from surveys sucb as the FormEIA810, "Montbly Refinery Report;" the Form EIA-816, "Monthly Natural Gas Liquids Report;" and industry trade publications. Currently, 110 companiesrespond to the EIA-782A survey. The Form EIA-782B,"Resellers'/Retailers' MonthlyPetroleum Product Sales Report," is sent to a sample of resellers and retailers of motor gasoline, distillate, propane, and residual fuel oil. Respondents to Form EIA-863, "Petroleum Product Sales Identification Survey," are used as the sampling frame of resellers and retailers for the EIA-782B.Firms having 5 percent or more of

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sales in a State are selected with certainty. The remaining companieson the frame are sampled using probability proportional to size methodology geographic area, product, and type of sale. by Tbe EIA-782Bsample includes approximately 2,000 companies. Tbe Form EIA-782C, "Monthly Report of Prime Supplier Sales of Petroleum Products Sold for Local Consumption,"collects volumesof prime supplier sales of selected petroleum products into States where they are locally sold and consumed. A prime supplier is a firm that produces, imports, or transports any of the selected petroleum products across State boundaries and local marketing areas and sells the product to local distributors, local retailers, or end users. This survey provides an accurate measure of consumption in most States. Currently, 183 firms respond to the EIA-782Csurvey. Data collected on the Forms EIA-782A, EIA-782B, and EIA-782C are published Petrolennl Marketing Monthly (PMM)and the Petroleum Marketing Annual (PMA). in the

In addition, production, import, and export data collected by EIA's Petroleum Division are published in tbe Petroleum Snpply Monthly (PSM) and the Petrolemn Supply Ammal(PSA). The Petroleum Division uses the Petroleum Supply Reporting System (PSRS) for data collection. The PSRSis composedof a family of data collection survey forms, data processing systems, and publications systems. Detailed data on refinery and natural gas plant operations, bulk terminal and pipeline stocks, petroleum products imports, and movementsof petroleum products among Petroleum Administration for Defense (PAD)districts are collected monthly. Figures for product supply originate from Forms EIA-810, "Monthly Refinery Report;" EIA-811, "Monthly Bulk Terminal Report;" EIA-812, "Monthly Product Pipeline Report;" EIA-813, "Monthly Crude Oil Report;" EIA-814, "Monthly hnports Report;" EIA-816, "Montbly Natural Gas Liquids Report;" and EIA-817, "Monthly Tanker and Barge MovementReport." Aggregate export data obtained from the Bureau of the Census are also included in computations for the PSMand PSA. The PMAand tbe PSA may contain revisions of the data published in the PMM and the PSM, respectively, due to late submissionsor revisions to tbe montblydata. The Form EIA-821, "Annual Fuel Oil and Kerosene Sales Report," collects data on tbe sales to end users of distillate fuel oil, residual fuel oil, and kerosene. The samplesize is approximately 4,000 for 2002. The data are used to determine the level of sales by energy-use category and product at tbe State, regional, aod national levels. The sampling frame for the ETA-821 also is derived from the respondents to Form EIA-863. The EIA-863 is a quadrennial census used to collect information on size, type, and geographic location of firms selling petroleum products. Data from the Federal Highway Administration (FHWA) of the U.S. Department Transportation replace EIA-821data reported as on-highwaydiesel sales. The Highway Statistics Division of the FHWA collects information related to highway transportation. Sales volumesof motor gasoline are published on a calendar year basis and are a

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cumulative tabulation of gross gallons of gasoline reported by wholesale distributors to State motor fuel tax agencies. The FHWA collects information on finished motor gasoline, with no distinction made amongmotor gasoline grades. The data include gasoline for both highway and non-highwayuse. The FHWA includes gasohol but excludes exports, fuels for military use, and dealer transfers. The Bureau of Labor Statistics (BLS) publishes the aggregate index for household fuels and its componentindexes for motor fuels. Retail prices are collected rnontbly by BLSrepresentatives in the urban areas, and support the estimation of the ConsumerPrice Index (CPI). Wholesale prices are collected monthlyand support the estimation of the Producer Price Index (PPI). The CPI and PPI use fixed volume weights to measure the change in price over time. The CPI measures the change in prices for a defined market basket of goods and services and the PPl measures the change in prices received by domestic producers for their output. Approximately 900 retail prices are collected for regular grade gasoline in approximately 87 urban areas across the countu,, and include all taxes directly associated with the purchase and the use of the items. The 87 areas cover 39 States and the District of Columbia. The PPI collects prices from a sample of domestic refiners. Although most PPt prices are collected