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April | 2018

2018 CANADIAN FUEL MARKETING CONFERENCE APRIL 23-25, 2018 | HYATT REGENCY, MONTREAL

FULL MEMBERS

ASSOCIATE MEMBERS

CONNECTION CONTENTS

| MESSAGE FROM THE PRESIDENT | Jennifer Stewart

| 2018 CANADIAN FUEL MARKETING CONFERENCE

| UPCOMING EVENTS | 2018 Events

10 |

ADVOCACY UPDATES

11 |

NEWS UPDATES | 2018 News

15 |

MEMBER UPDATES | 2018 Members

MISSION CIPMAâ€™s mission is to ensure the sustainability and growth of a healthy and viable independent fuel marketing and distribution sector at both the wholesale and retail levels in Canada. Our specific goals include: Ensuring that independent fuel marketers thrive and have the opportunity to earn a fair and reasonable return that is proportionate to their business risk and capital investment, and ensuring that Canadian consumers and independent fuel marketers have access to a competitively priced and readily available supply of fuel products in all regions of the country.

MESSAGE FROM THE PRESIDENT JENNIFER STEWART | PRESIDENT

Dear CIPMA Members and Associate Members

If you have any additional feedback, you can always feel free to contact me directly.

I want to personally thank each and every one of you that recently attended our 2018 Canadian Fuel Marketing Conference.

In addition to our events, our team is working to ensure the advocacy goals of the sector are also represented to government and that we remain a proactive voice on a number of regulatory issues. Please watch for our quarterly advocacy update for more specifics on this front.

We had a record-breaking number of attendees join us in Montreal for three days of thought provoking speakers and networking opportunities with new and old industry colleagues. We had the privilege of beginning the conference by hearing from the Right Honourable Jean ChrĂŠtien, who spoke candidly about his experience in the energy sector, and his time as the 20th Prime Minister of Canada.

Enjoy the warmer weather, and we hope to see many of you on the greens in September at our annual CIPMA Golf Challenge.

We then heard from leading automotive, technology and petroleum sector experts, who shared insight on how our sector is adapting, and what the future may look like for petroleum marketers. We also had the honour of hosting Bob Espey, President and CEO, Parkland Fuel Corporation, who shared with us the Parkland story of growth and innovation, while maintaining a strong corporate culture amidst it all.

Jennifer Stewart President and CEO Canadian Independent Petroleum Marketers Association

Thank you to all of our speakers for making the conference possible, and to all of our sponsors. We have recently sent out a survey, which I encourage everyone to fill out. Your responses will help us make each conference better than the last, and ensure your voice is heard.

Canadian Independent Petroleum Marketers Association | Connection 2018 |

2018 CANADIAN FUEL MARKETING CONFERENCE APRIL 23 - 25, 2018 - MONTREAL

Canadian Independent Petroleum Marketers Association | Connection 2018 |

UPCOMING EVENTS CIPMA CONNECTION | 2018 EVENTS

CIPMA GOLF CHALLENGE

Thursday, September 13, 2018 | Glen Abbey Golf Club, Oakville, ON Mark your calendars! Watch for details, coming soon.

Canadian Independent Petroleum Marketers Association | Connection 2018 |

ADVOCACY UPDATES Government advocacy is the main priority for the CIPMA team, and having a voice on important issues at the municipal, provincial and federal levels of government is one of the key reasons why members join our organization. CIPMA members receive quarterly updates on the associationâ€™s advocacy efforts, which are also posted on the Members Only section of cipma.org.

Canadian Independent Petroleum Marketers Association | Connection 2018 |

NEWS UPDATES CIPMA CONNECTION | 2018 NEWS Please note that all orange text in the following section is hyperlinked. If viewing electronically, you can click to read full articles.

GLOBAL HERE’S OPEC’S BIGGEST PROBLEM This news story examines OPEC’s current state and cautions that its thin spare capacity could mean outsized effects on oil prices from minor supply disruptions. FOSSIL FUELS ROAR BACK IN A WORLD HUNGRY FOR ENERGY: DON PITTIS This analysis explores global demand for fossil fuels amidst the climate change conversation. PERMIAN BASIN IS GROWING INTO THE LARGEST OIL PATCH IN THE WORLD This article examines the capacity and productivity potential of the Permian Basin.

UNITED STATES MARATHON PETROLEUM TO BUY ANDEAVOR FOR $23 BILLION, CREATING NEW TOP U.S. REFINER This story shares the latest news on Marathon Petroleum’s purchase of Texas refiner and pipeline company Andeavor. The deal is expected to close in the second half of the year. Canadian Independent Petroleum Marketers Association | Connection 2018 |

WHAT CONSUMERS THINK ABOUT GAS PRICES This news release outlines findings from a new NACS report on consumer perceptions related to gas prices and the overall economy. THE OCTANE GAME: AUTO INDUSTRY LOBBIES FOR 95 AS NEW REGULAR This article highlights the U.S. auto industry’s push to replace 87 octane as the default ‘regular’ gasoline. SEVERAL INJURED AFTER EXPLOSION ROCKS HUSKY ENERGY REFINERY IN WISCONSIN This feature shares details of the oil tank explosion at a Husky Energy refinery in Wisconsin on April 26. APPALACHIA MARKETS ITSELF AS GLOBAL ENERGY HUB This story draws focus on a recent announcement from a team of rivals from Pennsylvania, Ohio and West Virginia who intend to redouble their efforts to draw new oil and gas investment to the Appalachia region. CHEVROLET, SHELL DELIVER FUEL PAYMENT FROM COMFORT OF DRIVER’S SEAT This news feature shines a light on a new Shell and Chevrolet partnership to introduce the automotive industry’s first embedded, in-dash fuel payment and savings experience. CALIFORNIA ASSEMBLYMAN PULLS STATE COMBUSTION-ENGINE BAN PROPOSAL This article features the latest from California on the AB 1745 rulemaking proposal that called for a statewide transition to electric vehicles from fossilfueled vehicles by 2040.

NATIONAL CANADIAN RETAIL GASOLINE PRICES AVERAGE 139.0 CENTS PER LITRE IN APRIL As of April 26, the Canadian average retail regular gasoline price was 139.0 cents per litre, up from 116.0 cents per litre in April 2017, while the average retail diesel price hit 127.8 cents per litre, versus 108.6 for the same time last year, according to Kent Group Ltd. For more information and analytics, click here.

FEDS TO SPEND $280K TO STUDY WHY CANADA’S OIL AND GAS SECTOR IS FALLING BEHIND This news story features the federal government’s plans to invest in a new study on Canada’s competitiveness in the oil and gas industry, to address the current lag in investment and new U.S. incentives for companies to move south. NEW NAFTA AUTO RULES WOULD ACT AS A MULTIBILLION-DOLLAR TAX, ADDING THOUSANDS TO THE COST OF A CAR This article highlights a new study by the Center for Automotive Research suggesting that if passed, the new proposals would ultimately hurt the automotive sector. CANADIAN DOLLAR EDGES HIGHER, BOOSTED BY HIGHER OIL PRICES This news feature speaks to the stronger Canadian dollar vs. its U.S. counterpart on April 26, and the increase in oil prices with rising employee earnings. MAJORITY OF CANADIANS IN MOST PROVINCES WITH CARBON PRICES DON’T KNOW THEY HAVE ONE: SURVEY This news story features the results of a poll commissioned by Canada’s Ecofiscal Commission, showing that a majority of respondents in British Columbia, Ontario and Quebec did not know that their province has a carbon price in place. CANADA AND U.S. CLASH OVER SUNSET CLAUSE IN ‘FORCEFUL’ NAFTA TALKS This article features the clashing views between Foreign Affairs Minister Chrystia Freeland and United States Trade Representative Robert Lighthizer over the American side’s demand for a sunset clause. HOW CANADA CAN BE AN ENERGY SUPERPOWER WITHOUT CRUDE OIL This analysis claims that the energy mix of the future involves the production of Canada’s rare earth elements; critical ingredients in renewable energy products, from solar panels to electric car batteries.

Canadian Independent Petroleum Marketers Association | Connection 2018 |

WESTERN REGION

IMPERIAL OIL HIKES DIVIDEND AS PROFIT RISES

This feature highlights Imperial Oil Ltd’s recent move to increase its dividend after reporting improved firstquarter profits compared with the previous year. SASK. AIMS TO INTRODUCE EXPORT PERMITS FOR OIL AND GAS DUE TO B.C.’S TRANS MOUNTAIN DELAYS This article focuses on new legislation in Saskatchewan, effective April 23, which requires companies to obtain permits before exporting oil and gas out of the province.

FOUR WAYS TECHNOLOGY IS MAKING THE OIL AND GAS INDUSTRY GREENER

This special feature highlights efforts made by exploration and production (E&P) companies and cleantech startups to repair the negative reputation that the oil and gas sector has suffered with for some time.

ONTARIO / QUÉBEC REGION

SKY-HIGH GAS PRICES THE ‘NEW NORMAL,’ ANALYST WARNS

This article shares Analyst Dan McTeague’s prediction that gas prices in Ottawa could reach up to $1.42 or $1.43 a litre this summer.

‘YOU CANNOT PUT IT BACK IN THE GROUND’: DESPERATE CANADIAN OIL PRODUCERS TURN TO TRANSPORT TRUCKS TO SHIP CRUDE

SCRAPPING ONTARIO’S CAP AND TRADE WOULD BE FOOLISH: CALIFORNIA GOVERNOR

This piece highlights the increased use of transport trucks to ship crude out of Western Canada, with current full pipelines and a rail car shortage.

This news story features California Governor Jerry Brown’s take on the Tory proposal to get rid of the province’s cap and trade system.

SASKATCHEWAN’S SCOTT MOE SEEKS COURT OPINION ON WHETHER CARBON TAX IS CONSTITUTIONAL

FEDS PROMISE CARBON PRICE FOR ONTARIO EVEN IF A FORD GOVERNMENT PULLS OUT

This news story features Saskatchewan’s constitutional reference case challenging the federal government’s ability to force a carbon tax on the provinces.

This feature reveals the federal government’s plan to impose a price on carbon if Ontario cancels its capand-trade program.

OIL LOGJAM SET TO EASE AS CANADIAN DRILLERS CUT DEALS WITH RAILROADS TO SHIP MORE CRUDE

WHY QUEBEC WADED INTO THE TRANS MOUNTAIN PIPELINE SPAT

This article shares hope for some relief from the persistent shipping bottlenecks for Alberta’s plagued oil industry in the second half of 2018.

This analysis looks into the reasons for Quebec’s interest in the B.C. – Alberta pipeline debate, and it’s push for cooperative federalism.

Canadian Independent Petroleum Marketers Association | Connection 2018 |

HYDRO OTTAWA TO TEST RESIDENTIAL EV CHARGING STATIONS This article highlights the recent Hydro Ottawa FLO partnership to pilot the installation of charging stations for electric vehicles at local residences.

ATLANTIC REGION

MCKENNA DEFENDS BP CANADA’S PLANS TO DRILL IN NOVA SCOTIA This article shares the latest on the federal support of BP Canada’s plans to drill a deep-water exploration well off the coast of Halifax.

USE OIL AND GAS MONEY TO KEEP POWER RATES IN CHECK, SAYS DANNY WILLIAMS This news story shares former Newfoundland and Labrador Premier Danny Williams’s recommendation - to use Nalcor profits from oil and gas and hydro to keep provincial power rates in check. ADRIAN WHITE: ATLANTIC CANADA NEEDS A NOTLEY This opinion piece penned by Adrian White, CEO of NNF Inc., Business Consultants urges for a leader, like Rachel Notley, to fight for economic prosperity in the Maritimes.

Canadian Independent Petroleum Marketers Association | Connection 2018 |

MEMBER UPDATES CIPMA CONNECTION | NEW MEMBERS

FULL MEMBERS

GROUPE FILGO-SONIC Founded in 1956, Groupe Filgo is a leader in the distribution of petroleum products in Quebec. Groupe Filgo is divided into 3 business units, namely the gasoline-convenience store network, the distribution of petroleum products and the distribution of lubricants. Founded in 1958, Sonic is a division of La Coop fédérée, which annually distributes more than 900 million liters of energy products (gasoline, propane, diesel, fuel oil, lubricants, DEF and forest biomass) and operates 152 service stations in Quebec.

ASSOCIATE MEMBERS

NORTH ATLANTIC North Atlantic refines over 130,000 barrels of oil per day. We have one of North America’s largest refinery docks and our location is unbeatable. Perched on Canada’s east coast.

Canadian Independent Petroleum Marketers Association | Connection 2018 |

Jennifer Stewart, President and CEO jstewart@cipma.org | Cell: 613.915.5699

Rita Molinari, CMP, Operations Manager rmolinari@cipma.org | Cell: 416.358.5207

MAILING ADDRESS | 3-1750 The Queensway, Suite 115 - Toronto, ON., M9C 5H5

Canadian Independent Petroleum Marketers Association | Connection 2018 |