You’re probably heard the phrase “I’ve got bad news and I’ve got good news!” I’m going to make the case that everything I have to tell you is good news, even if the first couple paragraphs is negative.
First, our remote fueling locations at Elmore and Frost have been inspected by the Minnesota Pollution Control Agency and found to be out of compliance. The pumps and equipment at both locations are obsolete, as are the lines to the underground storage tanks; and if you touch the lines you have to replace the tanks. A significant amount in upgrades to each location would be needed to keep these two locations in compliance.
Even then, both locations only take local cards—no credit cards—and we cannot dispense E15 (a higher grade of ethanol recently authorized by the Federal government) at either Elmore or Frost, because their steel lines will not permit it.
That may sound like bad news, but it’s actually good, because it has helped us to make decisions that will result in a better fuel dispensing system being installed.
FOCUS ON ELMORE
Financially, it doesn’t make sense to upgrade or install new lines, pumps and tanks at both facilities, which are (as I mentioned) nine miles apart. So,
the Pollution Control Agency has instructed us to stop selling diesel at our Frost fueling location at the end of November. They will, however, allow us to continue to sell gasoline from an above-ground tank at Frost until further notice.
At the same time, we plan to install a new 12,000 gallon above-ground partitioned tank (6,000 gallons for gas and 6,000 gallons for diesel) on a slab at our Elmore location, which sells more refined fuels because of its location on Highway 169. In addition, we’ll install new fiberglass lines and pumps that are able to take all credit cards.
The tank, which we hope to receive in March or April of 2023, should be installed and in service by July or August of next year. It will be similar to the Titonka remote fueling location pictured below.
The new tank and piping at our Elmore location will enable us to offer E-15, which is usually reduced in price. Because of this, we have applied for and received a $104,000 grant from the USDA to help with the significant capital investment of the project.
This investment will improve the permanence and profitability of our remote fueling operations in the Elmore area.
