A.M. Executive Briefing - Sept. 13
This Morning's Headlines:
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The Regulatory Toll
While U.S. gasoline prices have been low throughout the 1990s, they will likely go up soon if proposed federal environmental rules go into effect. The oil industry predicts levels across the country to approach those in California, which beat the rest of the country by 60 percent. The industry has suffered from the low prices, and might suffer more if it cannot pass to consumers the cost of compliance with the proposed Tier 2 rules, which among other things are to cut sulfur and emissions in gasoline.Eventually, the Environmental Protection Agency (EPA) wants to cut sulfur in diesel as well. The American Petroleum Institute and the National Petrochemical and Refiners Association say the industry will have to pay between $3 billion and $5 billion annually to keep up with the proposals, while EPA administrator Carol Browner puts the cost at $2 billion to $2.5 billion for 16 years starting in 2004.
Some environmentalists are less worried about cleaning up gasoline and diesel than about the low oil prices reducing the desires to cut fuel consumption and to look for alternative fuels.
The On-Road Diesel Sulfur Plan regulation will probably take effect in 2004, forcing refiners to cut diesel sulfur from 500 ppm to a level that the EPA says it will propose before 1999 is out and believes it will finalize before 2000 is half over. Industry members worry the level could be between 30 ppm and 50 ppm. Wall Street Journal (09/13/99) P. R9; Walsh, Campion
UPS in Pact With Office Depot
Office Depot stores are to feature United Parcel Service of America shipping centers, which are to appear first in the 23-store Atlanta market. In August, FedEx said it intends to set up similar accommodations in Kinko's copy centers. Wall Street Journal (09/13/99) P. B7Court Denies Big Bonuses for NationsWay Executives
The U.S. Bankruptcy Court has rejected part of a plan by NationsWay Transport to pay its top three executives bonuses equal to half their salaries, while approving a bonus plan to pay hundreds of thousands of dollars to the remaining employees of the company. The decision prevents a large payment to NationsWay Senior Vice President and CFO Harold Roth, who is also CFO of the Colorado Rockies.According to the plan, the three top executives instead will receive a $5,000 bonus if they remain with the company until the bankruptcy is completed, while the other remaining employees will receive weekly incentive pay at a rate about equal to half their salaries, and a final bonus payment as low as $750 or as high as $3,000.
Meanwhile, the city of Denver has laid claims to bank account holdings of more than $800,000 dollars, arguing the firm owes the city for back taxes. Colorado Rockies co-owner Jerry McMorris owns the Denver-based NationsWay firm, which filed for bankruptcy May 20. Denver Rocky Mountain News Online (09/11/99); Burrough, D.J.
Protesters Start Recall Drive Over Truck Terminal
Despite protests, the town of Franklin, Wisc., is a little closer to being home to a USF Holland trucking terminal at 27th and Oakwood Roads. Protestors cite worries about the surrounding neighborhood, including air quality, noise, and the dangers a terminal might pose to children. In addition, a petition to recall Mayor Patrick Murray because of the issue has begun. However, the town's city planning commission voted to continue building the 25-acre terminal. Franklin's Common Council will discuss the matter September 21. MSNBC Online (09/10/99)Lack of Emissions Testing Stations Gives Ontario Truckers Some Breathing Room
While Ontario will start emissions testing of trucks and other diesel vehicles more than three years old on Sept. 30, enforcement of the mandate will not begin until after Jan. 15 because not enough test sites have yet been certified. Land Line Magazine Online (09/10/99); Cisper, JasonFleetclean Systems Inc. Makes Announcement
Fleetclean Systems debuted a new computerized tanker washing facility Sept. 7 in Hahnville, La. The double-occupancy bay can clean 40 tanks in a 24-hour day, and the site also features service facilities. The company plans to expand in the tank-washing sector. Business Wire (09/10/99)Meritor Expects Jump in 4th-Quarter Earnings
Meritor Automotive is anticipating per-share earnings up $0.25 for its fourth fiscal quarter because of a payment from ZF Friedrichshafen, of Germany, its joint-venture partner. Meritor is shifting its heavy-truck transmission assets and its share in Meritor Clutch Co. to the joint venture. Crain's Detroit Business (09/06/99-09/12/99) Vol. 15, No. 36; P. 4© copyright 1999 INFORMATION, INC. Terms of Service
