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97 Glossary A P P E N D I X A Additives: Substances added to diesel or gasoline fuel to improve its qualities or in the case of tax evasion untaxed substances which are added to increase the volume of the product sold. Substances include: methyl alcohol, ethyl alcohol (ethanol), tertiary butyl alcohol (TBA), isopropyl alcohol, normal butyl alcohol, isobutyl alcohol, methyl tertiary butyl ether (MTBE), tertiary amyl methyl ether (TAME), di-isopropyl ether. Aviation Gasoline (Finished): A complex mixture of relatively volatile hydrocarbons with or without small quantities of additives, blended to form a fuel suitable for use in aviation reciprocating engines. Fuel specifications are provided in ASTM Specification D 910 and Military Specification MIL-G-5572. Barrel: A volumetric unit of measure for crude oil and petroleum products equivalent to 42 U.S. gallons. Biodiesel: A petroleum diesel fuel substitute that is manufactured from vegetable oils, animal fats, or recycled greases combined with alcohol (ethanol or methanol) in the transesterification process. Blending: Mixing of two compatible fuels having different properties in order to produce an intermediate fuel. Blendstocks: Any petroleum product component of gasoline: straight-run gasoline, raformate, alkylates, butane, pentane, hexane, hydrocrackate, toluene, straight-run naphtha, catalytically cracked gasoline, thermally cracked gasoline, coker gasoline, polymer gasoline, natural gasoline, pentane mixture, raffinates, isomerate, butenes, aviation gasoline. Bulk: Any quantity of fuel sold or delivered except into fuel supply tanks of vehicles. Bulk Facility: A facility that receives gasoline and/or diesel fuel by pipeline, rail, or barge and then delivers the fuel into a cargo tank or barge. The term does not include petroleum products consumed at an electric generating facility.
98 Cargo Tanks: An assembly used for transporting, hauling or delivering liquids, comprising a tank, which may be one compartment or may be subdivided into two or more compartments mounted on a wagon, automobile, truck, trailer or wheels, together with its accessory piping, valves and meters, excluding fuel supply tanks connected to the carburetor or fuel injector of a motor vehicle. Daisy Chain: Daisy chain operations are a type of motor fuel tax evasion scheme common to a system that collects motor fuel taxes at the wholesale level. Perpetrators take advantage of the fact that, under this system, a licensed distributor may sell fuel tax free to another licensed distributor. Perpetrators establish a chain of companies and make a series of fuel sales on paper. The company in the chain that sells the fuel to an unregistered company would be responsible for owing the tax. This company â called the burn company â would dissolve before the tax was remitted to the revenue agency. Organized crime was commonly responsible for establishing these daisy chain operations. Dealer: A person who is the operator of a service station or other retail outlet who delivers motor fuel into the fuel supply tanks of motor vehicles or motorboats. Distillate Fuel Oil: A general classification for one of the petroleum fractions produced in conventional distillation operations. Products known as No. 1, No. 2, and No. 4 diesel fuel are used in on-highway diesel engines, such as those in railroad locomotives and agricultural machinery. Products known as No. 1, No. 2, and No. 4 fuel oils are used primarily for space heating and electric power generation. Distributor: A person who regularly makes sales or distributions of gasoline which are not deliveries into the fuel supply tanks of motor vehicles, motorboats, or aircraft, or who refines, distills, manufactures, produces, or blends for sale or distribution tax-free gasoline in this state, imports or exports tax-free gasoline other than in the fuel supply tanks of motor vehicles, or in any other manner acquires or possesses tax-free gasoline. Dyed Diesel: Diesel fuel to which color has been added to indicate that is not suitable for use in vehicles that are driven on highways and public roads. Electronic Data Interchange (EDI) - The computer-to-computer exchange of structured information, by agreed message standards, from one computer application to another by electronic means and with a minimum of human intervention. Electronic Funds Transfer (EFT): An electronic method used to remit funds directly from a bank account. Ethanol: Ethanol can be produced chemically from ethylene or biologically from the fermentation of various sugars from carbohydrates found in agricultural crops and cellulosic residues from crops or wood. Excise Tax: A tax on the sale or use of specific products or transactions.
99 Fuel Oil: The heavy distillates from the oil refining process; used as fuel for power stations, marine boilers. Gas Plant Operator: Any firm, including a gas plant owner, which operates a gas plant and keeps the gas plant records. A gas plant is a facility in which natural gas liquids are separated from natural gas, or in which natural gas liquids are fractionated or otherwise separated into natural gas liquid products or both. Gasohol: A blend of finished motor gasoline containing alcohol (generally ethanol but sometimes methanol) at a concentration of 10 percent or less by volume. International Fuel Tax Agreement (IFTA): A base state fuel tax agreement among jurisdictions to simplify the reporting of fuel taxes by interstate motor carriers. Upon application, the carrier's base jurisdiction issues credentials which allow the IFTA licensee to travel in all IFTA jurisdictions. International Fuel Tax Association, Inc. (IFTA, Inc.): A national organization that maintains a base state fuel tax agreement among participating jurisdictions in order to simplify the reporting of fuel taxes by interstate motor carriers. Upon application, the carrier's base jurisdiction issues credentials which allow the IFTA licensee to travel in all IFTA jurisdictions. International Registration Plan (IRP): A U.S. based plan that allows for the distribution of registration fees for commercial motor vehicles traveling inter-jurisdictionally through member states and provinces. Kerosene: A light petroleum distillate that is used in space heaters, cook stoves, and water heaters and is suitable for use as a light source when burned in wick-fed lamps. Kerosene has a maximum distillation temperature of 400 degrees Fahrenheit at the 10-percent recovery point, a final boiling point of 572 degrees Fahrenheit, and a minimum flash point of 100 degrees Fahrenheit. Included are No. 1-K and No. 2-K, the two grades of kerosene called range or stove oil, which have properties similar to those of No. 1 fuel oil. Kerosene-Type Jet Fuel: A kerosene-based product having a maximum distillation temperature of 400 degrees Fahrenheit at the 10-percent recovery point and a final maximum boiling point of 572 degrees Fahrenheit and meeting ASTM Specification D 1655 and Military Specifications MIL-T-5624P and MIL-T-83133D (Grades JP-5 and JP-8). It is used for commercial and military turbojet and turboprop aircraft engines. Motor Gasoline (Finished): A complex mixture of relatively volatile hydrocarbons with or without small quantities of additives, blended to form a fuel suitable for use in spark-ignition engines. Motor gasoline, as defined in ASTM Specification D-4814 or Federal Specification VV- G-1690B, is characterized as having a boiling range of 122 to 158 degrees Fahrenheit at the 10 percent recovery point to 365 to 374 degrees Fahrenheit at the 90 percent recovery point. âMotor Gasolineâ includes conventional gasoline; all types of oxygenated gasoline, including gasohol; and reformulated gasoline, but excludes aviation gasoline.
100 Naphtha: A generic term applied to a petroleum fraction with an approximate oiling range between 122 and 400 degrees Fahrenheit. Naphtha-Type Jet Fuel: A fuel in the heavy naphtha boiling range with an average gravity of 52.8 degrees API, 20 to 90 percent distillation temperatures of 290 degrees to 470 degrees Fahrenheit, and meeting Military Specification MIL-T-5624L (Grade JP-4). It is used primarily for military turbojet and turboprop aircraft engines because it has a lower freeze point than other aviation fuels and meets engine requirements at high altitudes and speeds. Pipeline Terminal: The storage and loading facilities at pipeline outlets, usually of the major oil companies. Rack: A dock, a platform, or an open bay with metered pipes, hoses or both that is used for delivering motor fuel or special fuel from a refinery or terminal into the cargo area of a motor vehicle, rail car, marine vessel, or aircraft for subsequent transfer or use into the engine fuel supply tank of a locomotive or any self-propelled vehicle. Rack Sales: Wholesale truckload sales or smaller of gasoline where title transfers at a terminal. Refiner: A firm or the part of a firm that refines products or blends and substantially changes products, or refines liquid hydrocarbons from oil and gas field gases, or recovers liquefied petroleum gases incident to petroleum refining and sells those products to resellers, retailers, resellers/retailers, or ultimate consumers. âRefinerâ includes any owner of products which contracts to have those products refined and then sells the refined products to resellers, retailers, or ultimate consumers. Refinery: A plant used to separate the various components present in crude oil and convert them into usable products or feedstock for other processes. Reseller: A firm (other than a refiner) that carries on the trade or business of purchasing refined petroleum products and reselling them to purchasers other than ultimate consumers. Reseller/Retailer: A firm (other than a refiner) that carries on the trade or business activities of both a reseller and a retailer; i.e., purchasing refined petroleum products and reselling them to purchasers who may be either ultimate or other than ultimate consumers. Splash Blend: To blend or mix two or more products together by merely adding one product to the other such as alcohol to gasoline in a cargo tank compartment or even a service station underground tank. Tax Avoidance: An action taken to lessen tax liability and maximize after-tax income. Tax Evasion: A failure to pay or a deliberate underpayment of taxes. Terminal: Storage facility used in the wholesale segment of the industry usually comprised of a number of large-capacity tanks. Wholesale or Jobber: A person who purchases tax-paid gasoline for resale or distribution at wholesale.
