CIPMA Connection

July | 2019

MESSAGE FROM THE PRESIDENT JENNIFER STEWART

CIPMA MEMBER SPOTLIGHT GALE’S GAS BARS LIMITED

UPCOMING EVENTS CIPMA GOLF CHALLENGE

NEWS UPDATES MEMBER UPDATES

FULL MEMBERS

ASSOCIATE MEMBERS

CONNECTION CONTENTS

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| MESSAGE FROM THE PRESIDENT

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| CIPMA MEMBER SPOTLIGHT | GALE’S GAS BARS LIMITED

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| UPCOMING EVENTS

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| ADVOCACY UPDATES

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| NEWS UPDATES

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MEMBER UPDATES

MISSION CIPMA’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 & CEO

Dear CIPMA Members and Associate Members Summer has finally arrived, just in time for the CIPMA team to continue preparations for its annual Golf Challenge, taking place September 12th at the Glen Abbey Golf Club. Registration is open, and space is filling up fast. We encourage you to register and look forward to seeing you on the greens.

While governments are adjourned for the summer, there is still a flurry of activity taking place on issues affecting CIPMA Members.

For example, CIPMA continues to participate in the Ontario Government’s Climate Plan. As Members will recall, the Government had publicly announced that they were reviewing an E15 mandate by 2025. Under the new proposed regulation, this has been scaled back, and the government will be escalating its mandate at much smaller increments. Specifically, CIPMA advocated for delayed implementation to allow retailers more time to upgrade their equipment to handle higher renewable fuels. This change will better support retailers so that regulatory changes don’t impose burden, but we also help governments in their mandate of reducing emissions. CIPMA is also engaged from coast-to-coast on a number of other issues, including the New Brunswick Energy and Utilities Board’s review of gasoline margins, and the British Columbia gasoline price review.

While next April seems quite far away, I encourage all of you to save the date for our 2020 Canadian Fuel Marketing Conference, taking place April 6th – 8th.

I wish you all a wonderful rest of your summer, and as always, please do not hesitate to reach out on any concerns or issues that you may wish to review.

Sincerely,

Jennifer Stewart President and CEO Canadian Independent Petroleum Marketers Association Canadian Independent Petroleum Marketers Association | Connection 2019 |

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Canadian Independent Petroleum Marketers Association | Connection 2019 |

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CIPMA MEMBER SPOTLIGHT GALE’S GAS BARS LIMITED

An example of an independent marketer, Gale’s Gas Bars Limited has been serving Niagara residents for over fifty years. A family company, Gale’s began with Bob Gale Senior’s purchase of one truck and one gas station in 1967.

In the early 1980’s Bob Gale Junior became the second-generation owner/operator, steering the company through the 1980’s, 1990’s, and early 2000’s. During this time Bob expanded the company further – building an oil terminal, growing the number of service stations and geographic reach of fuel delivery, and venturing into the convenience industry, opening the very first Bob’s Fast & Fresh Convenience in 2009.

The expansion into convenience coincided with the re-entry of Bob’s daughter, Jessica (Gale) Friesen, back into the family business. In 2014 Jessica became the third-generation owner/operator of Gale’s Gas Bars Limited.

2017 marked Gale’s fiftieth year in business. They are now proud to operate fifteen gas station locations (both full serve and self-serve). Four of those sites also offer Bob’s Fast & Fresh Convenience, and they have a fleet of six fuel delivery trucks.

Being locally owned and operated for three generations, Gale’s is proud to support the Region of Niagara. Gales believes that giving back to the community isn’t the just the nice thing to do – it is the right thing to do.

Below is a brief interview with Jessica Friesen, CEO of Gale’s Gas Bars Limited.

Q: Gales Gas Bar has been in operation since 1967. What do you believe has been the key to its success?

There are several elements that add to our longevity: •

We have a diverse business model. We have fifteen locations throughout Niagara, our own fleet of trucks supplying those stations as well as delivering home heating oil and other petroleum products directly to customers, in addition to our own chain of convenience stores – Bob’s Fast & Fresh. Located right in Niagara, we are able to act very quickly if a customer needs something.

•

Being a locally owned and operated, third generation business is rare these days. We are very conscious that without the citizens of Niagara supporting our business, we would not be here today. In turn, our commitment to the community is something that makes us very special. We provide a large amount of time and money to various organizations throughout the Niagara Region.

Canadian Independent Petroleum Marketers Association | Connection 2019 |

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• We offer additional programs that are attractive to customers – our own gift cards, our own loyalty cards, and our own fleet cards for commercial customers • Our Vision Statement is “Fuelling Niagara for the next 50 years” and we keep this in mind with everything we do. We have been fuelling Niagara for the past 52 years, and plan to be here for a long time to come.

Q: What makes Gale’s Gas Bars stand out from the competition?

Being from Niagara we have relationships all through the Region and understand what Niagara really needs. One of the things we are very proud of is our full-service gas stations – we have nine of them. Niagara is a sleepy town for the GTA and has a large elderly/disabled population – we cater directly to all of them (and anyone else!) with the convenience of full serve in each municipality that we service.

We are very proud to be a newly designated Living Wage Supporter. This is another example of our commitment to Niagara. With this, we hope to attract and retain superior individuals for all positions within Gales.

Q: What does the future look like for the organization?

We are actively growing and have many projects under works right now. I took over the business five years ago this August and am very proud of the progress we have made so far. Our focus has been on site remediation – removing steel tanks and replacing with double walled fibreglass. Once that is complete, we have other plans – but we will go with the flow of the industry. We are keeping an eye on electric vehicles, and renewable fuels.

“Fuelling Niagara for the next 50 years.”

Canadian Independent Petroleum Marketers Association | Connection 2019 |

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UPCOMING EVENTS CIPMA CONNECTION | 2019 EVENTS

CIPMA GOLF CHALLENGE September 12, 2019 Save the Date!

Canadian Independent Petroleum Marketers Association | Connection 2019 |

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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 association’s advocacy efforts, which are also posted on the Members Only section of cipma.org.

2019 | Canadian Independent Petroleum Marketers Association | Connection 2018

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NEWS UPDATES This section presents a series of media articles of interest to the sector. The headlines included below are taken directly from media sources and are not written by CIPMA or CIPMA team members.

GLOBAL COULD RENEWABLE ENERGY PIONEER GERMANY RUN OUT OF POWER? Germany, a poster child for responsible energy, is renouncing nuclear and coal. The problem is, say many power producers and grid operators, it may struggle to keep the lights on.

IRAN DRIVING UNPLANNED OPEC OIL OUTAGE Unplanned crude oil production outages for the Organization of the Petroleum Exporting Countries (OPEC) averaged 2.5 million bpd in the first half of 2019, the highest six-month average since the end of 2015, according to the US Energy Information Administration (EIA).

IRAN SAYS IT SEIZED FOREIGN TANKER, ESCALATING REGIONAL TENSIONS The Islamic Revolutionary Guards Corps of Iran has detained a foreign oil tanker it said had been smuggling fuel, Iranian news media reported on Thursday [July 18], days after a United Arab Emirates vessel with the same name disappeared in the Persian Gulf.

UNITED STATES GOLDMAN SAYS OIL PRICE GAINS TO BE LIMITED AS U.S. OUTPUT OUTPACES GLOBAL DEMAND UNTIL 2020 Goldman Sachs said growth in U.S. shale production is likely to outpace that of global demand at least through 2020 and limit gains in oil prices despite output curbs led by the Organization of the Petroleum Exporting Countries.

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NORTH DAKOTA ASKS FEDERAL AGENCY TO INTERVENE IN OIL-BY-RAIL DISPUTE WITH WASHINGTON North Dakota on Wednesday, July 17, asked the federal government to step in amid a dispute with Washington state over a new law there that places restrictions on shipments of oil by rail.

NEW REPORTS REVEAL ETHANOL’S POTENTIAL TO REDUCE GHG EMISSIONS Two new studies have offered further evidence of grain-based ethanol’s potential to significant reduce greenhouse gas (GHG) emissions, the Renewable Fuels Association (RFA) has revealed.

NATIONAL

OIL AND GAS GIANT SETS BIG TARGET OF NET ZERO OILSANDS EMISSIONS Canada’s largest oil and gas producer is setting an ambitious target, albeit aspirational, to reduce the amount of pollution from its oilsands operations to effectively zero in terms of carbon emissions.

INNOVATION ENERGY: THE HOT NEW FUEL THAT COULD BRING JOBS AND GROWTH BACK TO CANADA’S OILPATCH Cheap, renewable geothermal power has the potential to meet the country’s energy needs and put thousands of laid-off oil and gas workers back to work.

FEDS SAY CLEAN FUEL STANDARD CAN MAKE LNG ‘MORE EFFICIENT THAN COAL’, DESPITE REPORT’S WARNING Canadian Association of Petroleum Producers calls the recent Global Energy Monitor report ‘misleading’, and says Canada has the ‘strongest environmental performance’ among LNG-producing nations.

TRUCKING HR CANADA LAUNCHES NEW PROJECT FOCUSED ON INDIGENOUS YOUTH Trucking HR Canada announced today that it is launching a new project focused on Indigenous youth. Over the next year, Trucking HR Canada will be working in collaboration with Indigenous organizations to deliver career awareness resources to Indigenous youth in northern Canada.

CANADA, THE FOURTH BIGGEST OIL NATION, MAY BE THE WORLD’S LEAST ENERGY SECURE Central Canada continues to import most of its oil through pipelines from the United States and recent events raise the probability of disruption.

WHAT ELIZABETH MAY WANTS TO DO WITH CANADIAN OIL The Green Party leader talks to Paul Wells about oil dependency, her deep disappointment with successive governments on climate change—and how Canada can move to a zero-carbon economy.

PIPELINE RELIEF ON THE HORIZON FOR CANADA WITH SURPRISE MOVES TO PUMP MORE OIL THROUGH EXISTING LINES Unexpected additions to Canada’s existing pipelines could relieve the pain felt by the country’s oil companies and reduce the total number of railway cars moving oil by late next year.

INNOVATION ENERGY: CANADA LEADS THE WAY IN CARBON CAPTURE AS MORE GOVERNMENTS PUT A PRICE ON CO2 Canada started early to build up expertise in carbon capture and storage, considered a pillar of any plan to stop climate change.

HERE’S WHERE THE FEDERAL PARTIES STAND ON THE CARBON TAX For the first time in years, climate change is shaping up to be a major issue in the federal election campaign this fall.

Canadian Independent Petroleum Marketers Association | Connection 2019 |

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THE FLEETING CANADIAN HARMONY ON CARBON PRICING Canadian federal and provincial governments are deeply divided over carbon pricing. The current state of affairs is a far cry from that in 2016, when the prime minister and the premiers of 11 of 13 provinces and territories unveiled the Pan Canadian Framework on Clean Energy and Climate Change, in which the parties committed to work together to achieve Canada’s Paris Agreement target using carbon pricing and other policy tools.

HYDROGEN-POWERED CARS ARE THE FUTURE. BUT ARE WE READY? Hydrogen-powered cars might make a lot of sense, but there are only two public filling stations in Canada: one in Quebec City and one in Vancouver.

A third is planned for Montreal and a half-dozen more for B.C.’s Lower Mainland. But outside those areas, without being able to refuel, they’ll literally go nowhere.

WESTERN REGION CAPTURING CARBON AND CONSERVATIVES’ CLIMATE-CHANGE HOPES One of Canada’s largest science projects is humming away on the south Saskatchewan Prairie, capturing thousands of tonnes of climate-warming carbon dioxide every month and storing it underground where it should remain buried for eons.

ONTARIO / QUÉBEC REGION

QUEBEC JOINS LEGAL CAMPAIGN AGAINST FEDERAL CARBON TAX

The Quebec government is joining other provinces in their legal fight against Ottawa’s carbon tax, hoping to convince the Supreme Court of Canada that a key part of the federal law intrudes on provincial jurisdiction.

DOUG FORD SAID GAS WOULD GET MORE EXPENSIVE BECAUSE OF THE CARBON TAX — BUT IT’S STILL CHEAPER NOW THAN IT WAS A YEAR AGO

Ontario Premier Doug Ford has been steadfast in his warnings that once the federal carbon tax kicked in, motorists should be prepared to pay more at the pumps. It is now more than three months since carbon pricing came into effect in Ontario — but prices are lower today than they were one year ago.

ALBERTA, QUEBEC INTERVENING IN B.C. APPEAL OF OIL TRANSPORT RULING

NO COLLUSION, SAYS OIL COMPANY AS B.C. GAS PRICE HEARINGS BEGIN

The governments of Alberta and Quebec have filed notices of intervention in B.C.’s appeal to the Supreme Court of Canada regarding jurisdiction over oil transportation.

One of the largest fuel companies in British Columbia says there’s no retail market more competitive than gasoline in Canada and denies any price setting between competitors.

TECHNOLOGY DEVELOPED AT TRENT UNIVERSITY CLEANING UP OILSANDS TAILING PONDS

THE RISE OF ALBERTA’S UNAPOLOGETIC PETRO-PATRIOTS Legions of Albertans are showing their allegiance to oil by wearing their hearts on their sleeves (and caps and T-shirts and hoodies).

An Indigenous-owned firm that aims to use green technology developed at Trent University to clean tailing ponds in the Alberta oilsands received $3.1 million in federal funding on Monday [July 15] in Peterborough.

Canadian Independent Petroleum Marketers Association | Connection 2019 |

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CONFEDERATION COLLEGE PROGRAMS TO SUPPORT NEED FOR TRUCK DRIVERS The Ontario government’s plans to increase the number of people choosing to work in high demand careers in the North, including trucking and personal support workers (PSWs). The efforts being made through the Ontario Immigrant Nominee Program (OINP) expansion could open the door for more individuals to take interest in the careers, but the key to any candidate’s success will be the right education.

US ETHANOL GROUPS WEIGH IN ON ONTARIO’S E15 PLAN Growth Energy, the Renewable Fuels Association and the U.S. Grains Council sent joint comments to Ontario’s Ministry of Environment, Conservation and Parks July 8 regarding its proposed plan and schedule for implementing E15. The comments encourage higher blends of ethanol and offer technical expertise on implementing E15.

ATLANTIC REGION

ALBERTA COMPANY TO TRY TO HARNESS BAY OF FUNDY’S POWERFUL TIDES An Alberta-based company has been granted permission to try to harness electricity from the powerful tides of the Bay of Fundy.

HIGGS PUSHES NATIONAL ENERGY CORRIDOR TO GET PIPELINES BUILT WITH FEW HOLDUPS New Brunswick Premier Blaine Higgs says he and some of his fellow conservative premiers back the concept of an energy corridor across the country that would allow a project such as the Energy East pipeline to be built without a lot of obstacles.

PETROLEUM STORAGE PROJECT HAS BIG RIVER RESIDENTS WORRIED Residents of the rural community of Big River, outside Bathurst, are concerned about a proposal to build a petroleum storage site near their homes.

Canadian Independent Petroleum Marketers Association | Connection 2019 |

MEMBER UPDATES CIPMA is pleased to welcome new Full Member, World Fuel Services Canada

FULL MEMBER

WORLD FUEL SERVICES CANADA World Fuel Services (WFS) provides energy procurement advisory services, supply fulfillment, and transaction and payment management solutions to commercial and industrial customers, principally in the aviation, marine and land transportation industries. They believe strongly that the way they achieve results is just as important as the results themselves.

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We want to share the successes of our members.

If you want to feature your company’s recent achievements, updates, or simply want to be featured, please reach out to Jennifer Stewart at jstewart@cipma.org

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