Department of Energy

Strategic Petroleum Reserve Project Management Office

900 Commerce East

New Orleans, Louisiana 70123

NOTICE OF SALE

DE-NS96-24PO10000

Pursuant to the authority and direction of the Secretary of Energy, the Department of

Energy is conducting a sale of Northeast Gasoline Supply Reserve (NGSR) petroleum

for June delivery of 998,824 barrels of Gasoline CBOB/RBOB as provided for by

Section 308 of the Consolidated Appropriations Act of 2024. “SEC. 308. (a)

Notwithstanding sections 161 and 167 of the Energy Policy and Conservation Act (42

U.S.C. 6241, 6247), the Secretary of Energy shall draw down and sell one million

barrels of refined petroleum product from the Strategic Petroleum Reserve during fiscal

year 2024. (b) All proceeds from such sale shall be deposited into the general fund of

the Treasury during fiscal year 2024. (c) Upon the completion of such sale, the

Secretary shall carry out the closure of the Northeast Gasoline Supply Reserve.”

Contracts resulting from this sale shall be subject to contract price adjustment as set

forth in the Supplements and Amendments to the Standard Sales Provisions (SSP).

This Notice of Sale contains the terms and conditions of the sale and specific

instructions for preparation and submittal of offers.

As stated in this Notice of Sale, offers must be submitted via email at

[email protected]ov.

Offers are due by 11:00 a.m. Central Time, Tuesday May 28, 2024.

Please read this solicitation carefully. Questions regarding this Notice of Sale must be

submitted via email by noon, Central Time, Friday May 24, 2024, to allow a reply to

reach all prospective Offerors prior to submission of their offers. Any questions

received after this date/time may not be answered prior to the date/time offers are due.

Questions/Responses will be posted daily, by 5:00 p.m. Central Time at:

https://www.spr.doe.gov/gas/default.htm. Questions must be addressed to:

Contact Telephone E-Mail

Mary C. Roark (504) 734-4195 [email protected]ov

(Contracting Officer)

Date: May 21, 2024 Kelly M. Gelé

Director, Office of Acquisition and Sales

 
i 
 
NOTICE OF SALE 
DE-NS96-24PO10000 
 
TABLE OF CONTENTS 
 
Page 
 
Instructions .................................................................................................................. 1 
 
  General Requirements ........................................................................................  1 
 
  Sale-Specific Requirements ...............................................................................  1 
 
Supplements and Amendments to Standard Sales Provisions ..................................... 4 
 
Attachments 
 
  GASOLINE CBOB/RBOB Offered for Sale ................................. Attachment A 
 
  Instructions for Payments to the Department of Energy  
  Using the Federal Reserve’s Fedwire Funds Service ..................... Attachment B 
 
   Specifications ................................................................................ Attachment C 
 
  Sample Offer Standby Letter of Credit .......................................... Attachment D 
 
  Sample Payment and Performance Letter of Credit ........................ Attachment E 
 
  Offer Form ....................................................................................... Attachment F 
 
  Supplement Exhibit B from SSPs…………………………………Attachment G 
 
  VIPERS instructions …………………….………………Attached via hyperlink 
 
  Standard Sales Provisions (SSPs) .................................... Attached via hyperlink

NOTICE OF SALE

DE-NS96-24PO10000

INSTRUCTIONS

GENERAL REQUIREMENTS

1. Offer must be submitted via the email address ([email protected]ov) by the

date/time specified in the Notice of Sale.

2. Offerors are required to submit an Offer Guarantee (See SSP B.12).

Failure to submit the above documents or to comply with material requirements of the

Notice of Sale may be cause for rejection of the offer.

SALE-SPECIFIC REQUIREMENTS

The following sales requirements are established for this sale:

1. The sale will be by price competition and shall be conducted pursuant to Title 10

Code of Federal Regulations Part 625 Appendix A, except as may be

supplemented or amended by this Notice of Sale. While the location of the

Appendix A: Standard Sales Provisions has changed, the provision itself has not

changed since 2005.

2. The intent of this sale is to award up to 998,824 barrels of Gasoline CBOB and

RBOB. The product is held at 2 locations: Port Reading, New Jersey and South

Portland, Maine. There are 900,000 barrels of Gasoline RBOB available at Port

Reading and 98,824 barrels of Gasoline CBOB available at South Portland. All

sales of Gasoline CBOB/RBOB will be conducted in-tank with the Buckeye

Terminal for completed deliveries during the month of June 2024.

3. Final pricing will be indexed using the Gasoline RBOB NYMEX futures (July

trading month). Final pricing will be the net of the 5 day average of the index from

June 7, 2024 – June 13, 2024 and the applicable awarded differential for each

successful line item (see Attachment F). Section 26 of this Notice of Sale has

further details on calculation.

4. The Gasoline CBOB and RBOB, delivery modes, periods, and the quantities

offered in this sale, as well as minimum contract quantities, are shown in

Attachment A.

Note: It is the responsibility of the Offerors to ensure that they are able to

accept an in-tank transfer at the Buckeye before submitting a bid.

5. Offers MUST be received by 11:00 a.m. Central Time, Tuesday May 28, 2024; any

offers received after 11:00 a.m. Central Time will be determined to be late and will

be rejected, except as provided in SSP B.11, “Late Offers, Modifications of Offers,

and Withdrawal of Offers.” Offers must be submitted to RBOBsale@spr.doe.gov.

6. An electronic copy of the fully executed Offer Guarantee shall be emailed or

efaxed. The e-fax number is (504) 818-5195 or e-mailed to

[email protected].gov AND MUST be received not later than the time/date

for receipt of offers. An original hardcopy of the Offer Guarantee is not

required for this Notice of Sale.

7. Pursuant to SSP B.7, State of Hawaii Access to SPR Petroleum, by submission of

a binding offer, the State of Hawaii, for this sale, is entitled to purchase up to three

percent of the offerred barrels. Pursuant to section 161(j)(4) of the Energy Policy

and Conservation Act, 42 U.S.C. 624(j)(4), the quantity to be sold to the State of

Hawaii may be adjusted upward or downward to match the full tanker load of

approximately 30,000 barrels, or such lesser tanker capacity as may be designated

by the State of Hawaii.

8. Pursuant to SSP B.9, Submission of Offers and Modifications of Previously

Submitted Offers, paragraph (e), DOE will inform simultaneously all Offerors and

other interested parties of the successful and unsuccessful Offerors and their offer

data by means of a public “offer posting”. This offer posting will occur

approximately one week after receipt of offers. This information will be provided

by a posting on the Internet at the following address:

https://www.spr.doe.gov/gas/default.htm.

NOTICE OF SALE

DE-NS96-24PO10000

SUPPLEMENTS AND AMENDMENTS

TO THE STANDARD SALES PROVISIONS

For this sale only, the Standard Sales Provisions (SSPs) are supplemented or amended as

follows:

1. Standard Sales Provision B.1, Requirements for a valid offer - caution to offerors,

paragraphs (a) and (b) are deleted in their entirety and replaced with the following:

(a) Offerors are advised that the submission of an offer (Attachment F) via

email is required. Submission of an offer via email will constitute a legal,

binding offer.

(b) A valid offer to purchase SPR petroleum must meet the following

conditions:

(1) The offer must be submitted via email at RBOBs[email protected].

(2) The offer must be received no later than the date and time set for

receipt of offers;

(3) The offer guarantee must be received no later than the time set for

the receipt of offers;

(4) Any amendments explicitly requiring acknowledgment of receipt

must be properly acknowledged as specified in this Notice of Sale;

and

(5) Submission of an offer in accordance with this provision constitutes

agreement without exception to all provisions of the SSPs and this

Notice of Sale.

2. Offerors are advised that the requirements of the “Jones Act” must be met for the

marine delivery of Gasoline CBOB/RBOB purchased in this sale which is destined

for U.S. ports. SSP B.4, Requirements for Vessels-Caution to Offerors and SSP

C.7, Application Procedures for “Jones Act” and Construction Differential

Subsidy Waivers are supplemented as follows:

The Secretary of the Department of Homeland Security has not issued a general

(‘blanket’) waiver of the ‘Jones Act’ for the marine delivery of Gasoline RBOB

purchased in this sale. Consequently, it is necessary for an Apparently Successful

Offeror (ASO) to follow the procedures of SSP C.7. Standard Sales Provision C.7

(a) is modified to provide the following address for submission of a Jones Act

waiver request.

U. S. Customs and Border Protection

Office of International Trade/Regulations and Rulings

Chief, Cargo Security

Carriers and Restricted Merchandise Branch

U.S. Department of Homeland Security

Telephone No. (202) 860-7502

JonesActWaiverReq[email protected]

For more information visit: https://www.cbp.gov/trade/jones-act-waiver-request

3. Standard Sales Provision B.5, “Superfund” Tax on SPR Petroleum-Caution to

Offerors, is supplemented as follows:

The “Superfund” taxes and or Oil Spill Liability Trust Fund (OSLTF) taxes (or

any applicable increase/decrease as enumerated by the US government) will be

the responsibility for successful Awardees for any deliveries during the resultant

delivery period if applicable, for all SPR petroleum streams/products and must

comply with current OSLTF requirements if enacted by Congress. Additionally,

purchasers are liable for: Coastal Protection fees, Waterway Navigation fees, state

and local environmental fees, including the federal Harbor Maintenance Trust

Fund fees, if applicable will be rebillable to purchasers. In regards to OSLTF, per

the authoritative source:

https://www.uscg.mil/Mariners/National-Pollution-Funds-

Center/About_NPFC/osltf/:

4. Standard Sales Provision B.6, Export Limitations and Licensing – Caution to

Offerors, is removed in its entirety. Offerors are advised to review Division O,

Section 101 of the Consolidated Appropriations Act, 2016 (Public Law 114-113)

concerning the export of Gasoline RBOB/CBOB, and are required to comply with

all U.S. export laws.

5. Standard Sales Provision B.12, Offer Guarantee, is amended as follows:

Exhibit C “Offer Standby Letter of Credit” is deleted and replaced with

Attachment D of the NS. All references to Exhibit C shall mean Attachment D.

Paragraph (c) is deleted in its entirety and replaced with:

The offer guarantee shall be in the amount of $500,000. There will only be 1 offer

guarantee required per bidder participating in this Notice of Sale.

Paragraph (d) is amended as follows:

The fourth sentence shall read “The depository institution must be an account

holder with the Federal Reserve Banking system with permission to send Fedwires

and must have Fedwire eligibility Funds status of either Eligible or Eligible –

Settlement-only”.

Paragraph (g) is supplemented as follows:

For this sale the actual expiration date of the letters of credit furnished as offer

guarantees will be June 30, 2024.

Paragraph (h) is amended as follows:

Offer guarantee letters of credit cancellation letters will be returned via e-mail

only, if requested, in accordance with Attachment D - REQUEST FOR OFFER

GUARANTEE RETURNS, to an unsuccessful Offeror 5 business days after

expiration of the Offeror's acceptance period, and, except as provided in (i) of this

provision, to a successful Offeror upon receipt of a satisfactory payment and

performance letter of credit.

6. Standard Sales Provision B.17, SPR Crude Oil Streams and Delivery Points, is

supplemented with the following information:

Crude Oil Streams is replaced with Gasoline CBOB and Gasoline RBOB.

Minimum delivery lot sizes are 100,000 barrels at Port Reading, and 98,824

barrels at South Portland. All awards will be delivered via in-tank transfer. The

Offerors are reminded that it is their responsibility to ensure that they are able to

comply and or receive an in-tank transfer prior to bid submission and or successful

award. The SPR will not be providing any tanks or transportation on the volumes

offered in this Notice of Sale. See Attachment G for information on Buckeye

Terminal to replace Exhibit B identified in the Standard Sales Provisions.

7. Standard Sales Provision B.18, Notice of Sale Line Item Schedule – Petroleum

Quantity, Quality, and Delivery Method, paragraph (h) is supplemented with the

following information:

The quality characteristics of the Gasoline CBOB and Gasoline RBOB volumes

offered for sale are those found at Attachment A.

8. Standard Sales Provision B.19, Requirements for a valid offer - Line item

information to be provided in the offer, is deleted in its entirety and replaced with

the following:

(a) Each offeror, if determined to be an ASO on a DLI, agrees to enter into a

contract under the terms of its offer for the purchase of petroleum in the offer and

to take delivery of that petroleum.

(b) An offeror may submit an offer for any or all the MLIs offered.

(d) The following information will be provided to DOE by the offeror on the

SPR offer form:

(1) Maximum MLI Quantity. The offer shall state the maximum

quantity of each crude oil stream Gasoline CBOB and Gasoline

RBOB that the offeror is willing to buy.

(2) Desired Qty. The offer shall state the number of barrels that the

offeror will accept on each DLI line item, i.e., by the delivery mode

and during the delivery period specified. The quantity per MLI can

exceed the total value of MLI volume available (i.e., tiered bids)

and will constitute a single offer. Be advised that DOE will only

award up to the MLI quantity.

(3) Price. The offer shall state the price per barrel for each DLI for

which the offeror has designated a Desired Qty. Where offers have

indicated multiple quantities and different price for one DLI, DOE

will award the highest priced DLI first. If the offeror has the same

price for two or more DLIs, it may indicate its first choice, second

choice, etc., for award of those items; if the offeror does not

indicate a preference, or indicates the same preference for more

than one DLI, DOE may select the DLIs to be awarded at its

discretion. Prices may be stated in four decimals ($0.000l). DOE

shall drop from the offer and not consider any numbers of less than

one one-hundredth of a cent.

(4) Accept Minimum Quantity. The offeror must choose whether to

accept only the Desired Qty (by deselecting the Accept Min Qty

checkbox to indicate an unwillingness to accept less than the

Desired Qty for that DLI) or, in the alternative, to accept any

quantity awarded between the offer's Desired Qty and the minimum

contract quantity for the DLI (by leaving the Accept Min Qty

checkbox selected). However, DOE will award less than the

Desired Qty only if the quantity available to be awarded is less than

the Desired Qty.

9. Standard Sales Provision B.22, Procedures for Evaluation of Offers, paragraphs

(a) and (b)(8), is amended as follows:

(a) Award on each DLI will be made to the responsible offerors that submit the

highest priced offers responsive to the SSPs and the NS, in addition to

operational considerations, and that have provided the required payment and

performance guarantee as required by Provision C.21

(b)(8) Exhibit D “Payment and Performance Letter of Credit” is deleted and

replaced with Attachment E of the NS. All references to Exhibit D shall mean

Attachment E.

10. Standard Sales Provision B. 27, Contract Documents, is amended as follows:

The third sentence is deleted in its entirety. The fourth sentence shall read: “The

NS and the Provisions of the SSPs will be made applicable through incorporation

by reference in the Notice of Acceptance (NA)”. The last sentence is deleted in its

entirety.

11. Standard Sales Provision C.2, Compliance with the “Jones Act” and the U.S.

Export Control Laws, is amended to delete all references to U.S. Export Control

Laws. (See 4. above.)

12. Standard Sales Provision C.5, Delivery and Transportation Scheduling, is deleted

in its entirty and replaced with the following:

(a) Scheduling of Gasoline CBOB/RBOB will be coordinated between the

NGSR terminal (Buckeye) and a successful Offeror. Offerors may use the contacts

below in Subsection (b) at Buckeye Terminal Port Reading and South Portland to

coordinate logistics and or validate capability prior to bid.

Note: After in-tank transfer, Successful Offeror shall disposition, at

their cost, the Gasoline RBOB/CBOB purchased from DOE to other

tank, barge, pipeline or truck rack by June 30, 2024.

(b) Buckeye Partners contacts:

(i) Jeremy Korth

Office: 610.904.4045 Mobile: 610.663.2479

Email: jkorth@buckeye.com

(ii) Paul Vasko

Office: 610.904.4214 Mobile: 610.724.3305

Email: pvasko@buckeye.com

contract number, if available, or the offer number in the subject.

(d) ASOs shall adhere to the nomination process and requirements at the

respective Buckeye Terminal location.

13. Standard Sales Provision C.8 through C.12 will not apply in this Notice of Sale.

Purchaser will coordinate delivery with terminal after in-tank transfer is executed.

14. Standard Sales Provision C.13, Title and Risk of Loss, is deleted in its entirety and

replaced with the following::

Title and Risk of Loss will pass to the Offeror in Buckeye tank(s) storing NGSR

Gasoline once the in-tank transfer is executed. In-tank transfers will be

documented by a Product Transfer Order (PTO) between the DOE, Purchaser, and

Buckeye Terminal. This item will be issued by the Buckeye Terminal. The SPR

will follow up with a CODR within 14 business days.

15. Standard Sales Provision C.16, Price Adjustments for Quality Differentials, is

deleted in its entirety and replaced with the following:

Price adjustments for quality differentials will not apply in this Notice of

Sale. All products will meet the specifications as noted in Attachment A with

the product quality being warranted by the Buckeye Terminal. Gasoline

CBOB/RBOB will be certified 24 hours prior to in-tank transfer.

16. Standard Sales Provision C.19, Delivery Documentation, Appendix A to Part 625 –

Standard Sales Provisions, Exhibit E, is amended as follows:

The Strategic Petroleum Reserve Crude Oil Delivery Report Number (CODR) is

changed to SPRPMO F-416.1-3.

Digital signature(s) shall be utilized for completion of SPRCODR.

SPR will provide a CODR for signature once the pricing can be finalized in

accordance with this Notice of Sale. The volume indicated on the CODR will

match the Product Transfer Order for the applicable contract of the contract.

17. Standard Sales Provision C.20, Contract Amounts is replaced in its entirety with

the following:

The contract quantities and dollar value stated in the Notice of Acceptance (NA)

are estimates. The per barrel unit price is subject to adjustment when calculated for

the net value of Offer awarded delta (Δ), five (5) day average of the Gasoline

RBOB NYMEX futures (July trading month) (same for Gasoline CBOB), from

June 7, 2024 through June 13, 2024. Since all awards will be in-tank transfer

fulfillments, there will not be any variance between the award and invoice

volumes.

18. Standard Sales Provision C.21, Payment and Performance Letter of Credit, is

amended as follows:

Exhibit D “Payment and Performance Letter of Credit” is deleted and replaced

with Attachment E of the NS. All references to Exhibit D shall mean Attachment

Paragraph (a) is supplemented as follows:

The expiration date of the LOC will be provided in the ASO letter.

The last sentence of paragraph (a) is deleted and replaced with:

Letters of credit will be sent to the Contracting Officer via email or efax.

Paragraph (b) is amended as follows:

The second sentence shall read: “The depository institution must be an account

holder with the Federal Reserve Banking system with permission to send Fedwires

and must have Fedwire eligibility Funds status of either Eligible or Eligible –

Settlement-only”.

19. Standard Sales Provision C.22, Billing and Payment, paragraphs (a) and (d) are

deleted in their entirety and replaced with the following:

(a) The Government will invoice the purchaser at the conclusion of pricing period

as noted in the amended C.20 at item 17 of this Notice of Sale. The invoice

will be based on the volume awarded and subsequently fulfilled by in- tank

transfer.

(d) In the event that the bank refuses to honor the draft against the letter of

credit, the purchaser shall be responsible for paying the principal and any

interest, administrative costs and penalties due (see Provision C.24) from the

due date.

20. Standard Sales Provision C.23, Method of Payments, paragraphs (a) and (d) are

deleted in their entirety and replaced with the following:

(a) All amounts payable by the purchaser shall be paid by deposit to the account

of the U.S. Treasury by wire transfer of funds using the Fedwire Funds

Service. The information to be included in each wire transfer will be

provided in the NS. All wire deposit electronic funds transfer costs will be

borne by the purchaser.

(d) Notwithstanding any other contract provision, DOE may, via a draft message,

request a wire transfer of funds against the standby letter of credit at any time

for payment of monies due under the contract and remaining unpaid in

violation of the terms of the contract. These would include but not be limited

to interest, administrative costs, penalties, liquidated damages, demurrage,

amounts owing for any services provided under the contract, and the

difference between the contract price and price received on the resale of

undelivered petroleum as defined in Provision C.25.

In addition, Government payments to gasoline purchaser(s) will be in

accordance with VIPERS instructions.

21. Standard Sales Provision C.24, Interest, is deleted in its entirety and replaced with

the following:

C.24 Interest, Administrative Costs and Penalties

(a) Amounts due and payable by the purchaser or its bank that are not paid in

accordance with the provisions governing such payments shall bear interest,

which will be indexed with the Current Value of Funds rate, from the day the

invoice is mailed or transmitted to the purchaser until the date payment is

received by the Government.

(b) Administrative Costs will be charged monthly to cover the expense of

collecting delinquent debt. The current rate is $7.25/month.

accrues from the day the invoice is mailed or transmitted to the purchaser,

and is assessed on any portion of the debt that is outstanding for more than 90

days, including any interest and administrative costs.

22. Standard Sales Provision C.32, Disputes, is amended as follows:

Paragraph (c) “$50,000” is changed to “$100,000”, and the following language is

added to the last sentence of the certification: and that I am duly authorized to

certify the claim on behalf of the purchaser.

23. Standard Sales Provisions Exhibit C, SAMPLE -- OFFER GUARANTEE

STANDBY LETTER OF CREDIT, is replaced by Attachment D of this NS.

Instructions for Offer Letter of Credit are included in Attachment D of this NS.

24. Standard Sales Provision Exhibit D, SAMPLE -- PAYMENT AND

PERFORMANCE LETTER OF CREDIT, is replaced by Attachment E of this NS.

Instructions for Payment and Performance Letter of Credit are included in

Attachment E of this NS.

25. By submission of an offer, the Offeror certifies that the Offeror, and any entity

owned or controlled by the Offeror, does not engage in any activity prohibited

under applicable U.S. export control and sanctions laws and regulations.

26. Contract Price Adjustment

(a) The unit price for petroleum product under the contract shall be the

Delivery Reference Price (DRP) adjusted by the Price Adjustment Factor

(PAF) as provided in this provision, subject to any additional adjustments

provided for elsewhere in the contract. All prices will need to be converted

to a per barrel price (42 US gallons per barrel). Table below for example

purposes:

(b) The terms used in this provision are defined as follows:

Base Reference Price (BRP)

USC/USG 270.50$

Convert to per gallon price 2.705$

Gallons per Barrel 42.00

Price per barrel 113.61$

Final price for 1 barrel of RBOB is $113.61

(1) The BRP for all Gasoline CBOB and Gasoline RBOB offered for

sale is the average (to the $0.0001) of the Daily Index Prices as

computed by the Government from prices for the most recent five

days on which trading activity occurred, ending two trading days

before the date of the Notice of Sale. The applicable index is

Gasoline RBOB NYMEX futures (July trading month).

(2) For this Notice of Sale, the BRP is $105.1390 for all Gasoline

CBOB streams.

(3) For this Notice of Sale, the BRP is $105.1390 for all Gasoline

RBOB streams.

Daily Index Price (DIP)

The DIP applicable to RBOB stream offered for sale is the “Gasoline

RBOB NYMEX Futures Settlement (July)” (to the $0.0001) for all trading

day transactions assessed for the June delivery month. The DIP applicable

to CBOB stream offered for sale is the “Gasoline RBOB NYMEX Futures

Settlement (July)” (to the $0.0001) for all trading day transactions assessed

for the June delivery month. Reference pricing streams associated with

offered crude oil are shown below.

Gasoline RBOB Stream

Reference Gasoline RBOB

Stream

RBOB

Gasoline RBOB NYMEX

Futures settlement (July)

CBOB

Gasoline RBOB NYMEX

futures settlement (July)

Delivery Reference Price (DRP) - The DRP is the average (to the $0.0001)

of the Daily Index Prices for the five trading days beginning June 7, 2024

through June 13, 2024 and "price date" as stated in Block 7, "PRICE

DATE", on the Strategic Petroleum Reserve Crude Oil Delivery Report:

SPRPMO F-416.1-3 will be indicated as June 11, 2024 for reporting

purposes only.

The "five trading days surrounding the price date" means the following five

days: The midday, day three, is the price date as determined above the two

days preceding the midday of the five day period on which trading activity

occurred and the two days succeeding the midday on which trading activity

occurred.

Price Adjustment Factor (PAF) - The PAF is the purchaser's offered price or Δ

minus the Base Reference Price (BRP). The PAF may be either positive or

negative.

GENERIC EXAMPLES:

Delivery Reference Price + Price Adjustment Factor = Unit Price per Barrel

(subject to any additional adjustments provided for elsewhere in the

contract):

Example 1:

Assume:

Offered Price

$113.2534

BRP

$111.0015

(5 day average specified in the NS)

PAF

$2.2519

DRP

$115.5055

(5 day average surrounding price date)

Add: PAF

$2.2519

Unit Price/bbl

$117.7574

Example 2:

Assume:

Offered Price

$110.7564

BRP

$111.0015

(5 day average specified in the NS)

PAF

$(0.2451)

DRP

$115.5055

(5 day average surrounding price date)

Add: PAF

$(0.2451)

Unit Price/bbl

$115.2604

A - 1

ATTACHMENT A

PETROLEUM PRODUCTS GASOLINE - (RBOB) QUANTITIES OFFERED FOR SALE

U. S. DEPARTMENT OF ENERGY - STRATEGIC PETROLEUM RESERVE (NGSR)

Note: It is the responsibility of the Offerors to ensure that they are able to accept an

in-tank delivery at the Buckeye Terminals before submitting a bid.

The Gasoline RBOB streams, delivery mode and periods, daily maximum delivery capability, and quantities of

Gasoline RBOB offered in this sale, under emergency conditions, are as follows:

MLI =

Master Line Item/Petroleum Stream

DLI =

Mode of Delivery (in this Notice of Sale only In-Tank transfer is available)

MIN Qty. =

Minimum Contract Quantity Per for PTO Execution

MB =

Thousands of Barrels

DLI QTY=

Available on applicable DLI as identified in table

MLI NGSR

Stream

(Gasoline RBOB)

DLI - Mode of

Delivery

Period

MLI QTY

(barrels)

DLI QTY

(barrels )

MIN QTY

(barrels)

Port Reading 900,000

DLI - Tank: in tank

transfer

June 2024 900,000 100,000

MLI NGSR

Stream

(Gasoline CBOB)

DLI - Mode of

Delivery

Period

MLI QTY

(barrels)

DLI QTY

(barrels )

MIN QTY

(barrels)

South Portland 98,824

DLI - Tank: in tank

transfer

June 2024 98,824 98,824

B - 1

ATTACHMENT - B

INSTRUCTIONS FOR FEDWIRE FUNDS TRANSFERS TO THE

DEPARTMENT OF ENERGY

Please provide the following instructions to your Financial Institution for Fedwire funds

transfers to the Department of Energy at the U.S. Treasury:

Item

Number

Fedwire

Field Tag

Length

Fedwire Field Name

Required Information

{1510}

Type/Subtype

1000

{2000}

Amount

Enter payment amount

{3100}

Sending ABA number

Sender ABA-number

{3320}

Sender Reference

Filled by sender

{3400}

Receiver ABA number *

021030004

{3400}

Receiver Short Name

TREAS NYC

{3600}

Business Function Code

CTR (or CTP)

{4200}

Beneficiary Identifier

(account number)

89000001

{4200}

Beneficiary Name

DEPARTMENT OF

ENERGY

{5000}

Originator Name

Enter the (company) name of

the originator of the payment

{6000}

Originator to Beneficiary

Information – Line 1

Enter Contract Number

{6000}

Line 2

Enter Cargo Number

{6000}

Line 3

Enter Invoice Number

{6000}

Line 4

* The financial institution address for Treasury’s routing number is:

Federal Reserve Bank of New York

33 Liberty Street

New York, NY 10045

Attachment C

RBOB Specifications

C - 3

REFORMULATED REGULAR GASOLINE BLENDSTOCK (RBOB)

PRODUCT SPECIFICATIONS FOR

BLENDING WITH 10% DENATURED FUEL ETHANOL (92% PURITY) AS DEFINED IN ASTM D4806.

This RBOB may not be combined with any other RBOB except RBOB having the same requirement

for

oxygenate type and amount.

All parameters must be met after blending with denatured fuel ethanol unless noted.

ALL F GRADE REQUIREMENTS (SEGREGATED AND FUNGIBLE)

ASTM Test Test Results

Product Property

Method Minimum Maximum Note

Benzene

(vol%)

D3606

1.30

Octane RON D2699

Report

MON D2700

82.0

(R+M)/2

87.0

*Oxygen Content, weight % D5599 (See Note) 1,2,7,8

*Aromatics (vol%) D5769, D5599 (See Note)

E200 (vol%)

D86 30

E300 (vol%)

D86 70

100

Olefins (vol%)

D1319

Sulfur (ppmwt)

D2622 80

Non‐VOC Controlled Requirements

RVP (psi)

D5191

Grades

F3,3F (Non‐VOC Controlled) 11.5

F4,4F (Non‐VOC Controlled) 13.5

F5,5F (Non‐VOC Controlled) 15.0

VOC Controlled Requirements

(Grades F1,F2,1F,2F, only)

RVP (psi) D5191

Report

*Emissions Performance Reductions

(%)

Region 1 (Grades F1,1F)

Origin:

‐28.0%

Delivery:

‐27.0%

‐25.0%

Region 2 (Grades F2,2F)

Origin:

‐26.4%

Delivery:

‐25.4%

‐23.4%

Corrosion (Cu) 3 hrs @122

F (50

C) D130 1

*Corrosion (Ag) 3 hrs @122

F (50

C) D4814 Annex A1 1

Doctor test D4952 Negative (sweet) 5

Attachment C

RBOB Specifications

C - 3

Mercaptan sulfur, wt.% D3227 0.002

Existent Gum mg/100 ml D381 4

Gravity

API at 60

F D287,D1298, Report 7

D4052

Oxidation stability‐minutes D525 240

Phosphorous, gms/gal D3231 0.004

*Nace Corrosion TM0172 B+ (Origin) 7

Volatility:

Driveability Index D4814 See Chart

ASTM Test Test Results

Product Property

Method Minimum Maximum Note

Distillation,

C (

F) @ %Evap. D86

Vapor/Liquid Ratio (V/L),

C (

F) @ 20 6

D5188 (See Note 6)

Driveability 10 vol% 50 vol% 90 vol% End Pt. V/L Grades Index

Max Min Max Max Max Min F1,F2 1250

70(158) 77(170) 121(250) 190(374) 221(430) 56(133)

F3 1230 60(140) 77(170) 116(240) 185(365) 221(430) 51(124)

F4 1220 55(131) 66(150) 113(235) 185(365) 221(430) 47(116)

F5 1200 50(122) 66(150) 110(230) 185(365) 221(430) 41(105)

NOTES (Apply to Fungible and Segregated):

Th is

is a base gasoline, not for sale to the ultimate consumer.

Heavy Metals are not allowed to be present.

Any gasoline exhibiting an offensive odor and/or poses a personal health hazard will not be accepted for shipment. Any gasoline

containing more than 0.50 wt. % of dicyclopentadiene will not be accepted for shipment.

The referee method for oxygenates will be based on a gas chromatograph test.

Delivery test results may vary by the smaller of ASTM reproducibility for a given test or any test tolerance as allowed by state or EPA

regulations at the point of delivery.

1. All F grades may not contain oxygenates, such as ethers and alcohols. The use of non‐hydrocarbon blending

components in these grades is prohibited. Origin maximum MTBE .25 vol.%.

Delivery maximum MTBE .50 vol. %.

2. Refer to test methods published in 40 CFR Chapter 1, Part 80.46. Alternative aromatics and oxygenates test methods, ASTM

D1319 and ASTM D 4815, may be used according to federal and state regulations.

3. For products blended to meet EPA or state imposed summer VOC requirements, tests must be performed in accordance

with the procedures described in 40 CFR, Part 80.

4. Emissions reductions must be calculated using EPA guidelines.

5. Mercaptan Sulfur waived if fuel is negative by Doctor test.

6. Computer and Linear methods may be used to determine V/L value. D5188 will be the referee

method

7. Specifications must be met before blending of denatured fuel ethanol.

8. Oxygen content must meet a minimum of 1.7 wt.% and a maximum of 4.0 wt.% after blending of

denatured

fuel ethanol.

9. Refer to 40 CFR Part 80.195 (d)(2). Alternative sulfur test methods, ASTM D 5453 and D 7039, may

be used

according to federal and state regulations.

10. Woodbury and Linden facilities will only allow shipments of region 2 fuels.

Any Region 1 fuels shipped downstream of Aberdeen will be comingled with region 2 fuels

11. Refer to Colonial's current RVP schedule for cycle numbers.

Attachment C

CBOB Specifications

C - 4

CONVENTIONAL REGULAR GASOLINE BLENDSTOCK (CBOB)

PRODUCT SPECIFICATION FOR

BLENDING WITH 10% DENATURED FUEL ETHANOL (PURITY) AS DEFINED IN ASTM D4806.

This CBOB may not be combined with any other CBOB except CBOB having the same

requirement for

oxygenate type and amount.

All parameters must be met after blending with denatured fuel ethanol unless noted.

ALL A GRADE REQUIREMENTS (SEGREGATED AND FUNGIBLE)

ASTM Test Test Results

Product Property

Method

Minimum Maximum Note

Octane RON D2699

Report

MON D2700

82.0

(R+M)/2

87.0

Oxygen Content, weight % D4815, D5599

0.1

1,2,7

RVP (psi)

D5191

Grades

A1,1A

8.8

A2,2A

10.0

A3,3A

12.5

A4,4A

14.5

A5,5A

15.5

A1,1A, the RVP of this blendstock/gasoline for oxygenate blending does not exceed 7.8 psi

A2,2A, the RVP of this

blendstock/gasoline for oxygenate blending does not exceed 9.0 psi

Gasoline designed for gasoline-ethanol blends in

accordance with 40 CFR 80.27(d)(2)

Suitable for the special RVP provisions for ethanol blends that contain 9 and 10 vol

% ethanol.

The use of this gasoline to manufacture a gasoline-ethanol blend containing anything other than between

9 and 10 volume percent ethanol may cause a summertime RVP violation.

Benzene (vol%)

D3606

3.8

Color Undyed

Corrosion (Cu) 3 hrs @122

F (50

D130

Corrosion (Ag) 3 hrs @122

F (50

D7667,D7671

Doctor test

D4952

Negative (sweet) 5

Mercaptan sulfur, wt.%

D3227

0.002

[W] Existent

Solvent Washed Gum mg/100 ml

D381

Gravity

API at 60

D287,D1298, Report

D4052

Oxidation stability-minutes

D525 240

Phosphorous, gms/gal

D3231

0.004

Sulfur (ppmwt)

D2622 80

or equivalent

Nace Corrosion

TM0172

B+ (Origin) 7

Volatility:

Driveability Index

D4814

See Chart

Distillation,

C (

F) @ %Evap.

D86

Vapor/Liquid Ratio (V/L),

C (

F) @ 20

D5188 (See Note 6)

Driveability

10 vol% 50 vol% 90 vol% End Pt. V/L Grades Index

Max

Min

Max Max

Max

Min

A1,A2 1250

70(158)

66(150) 121(250) 190(374) 221(430)

50 (122)

Attachment C

CBOB Specifications

C - 4

A3 1230 60(140) 66(150) 116(240) 185(365) 221(430)

47(116)

A4 1220 55(131) 66(150) 113(235) 185(365) 221(430)

42(107)

A5 1200 50(122) 66(150) 110(230) 185(365) 221(430)

39(102)

NOTES (Apply to Fungible and Segregated):

This is a base gasoline, not for sale to the ultimate consumer.

Heavy Metals are not allowed to be present.

Any gasoline exhibiting an offensive odor and/or poses a personal health hazard will not be accepted for shipment. Any gasoline

containing more than 0.50 wt. % of dicyclopentadiene will not be accepted for shipment.

The referee method for oxygenates will be based on a gas chromatograph test.

Delivery test results may vary by the smaller of ASTM reproducibility for a given test or any test tolerance as allowed by state or EPA

regulations at the point of delivery.

1. All A grades may not contain oxygenates, such as ethers and alcohols. The use of non-hydrocarbon blending components in these grades is

prohibited.

2. Refer to test methods published in 40 CFR Chapter 1, Part 80.46. Alternative aromatics and oxygenates test methods, ASTM D1319 and

ASTM D 4815, may be used according to federal and state regulations

3. For products blended to meet EPA or state imposed summer VOC requirements, tests must be performed in accordance with the procedures

described in 40 CFR, Part 80.

4. Reserved

5. Mercaptan Sulfur waived if fuel is negative by Doctor test.

6. Computer and Linear methods may be used to determine V/L value. D5188 will be the referee method

7. Specifications must be met before blending of denatured fuel ethanol.

8. Refer to 40 CFR Part 80.195 (d)(2). Alternative sulfur test methods, ASTM D 5453 and D 7039, may be used according to federal and state

regulations.

Heavy Metals are not allowed to be present.

Any gasoline exhibiting an offensive odor and/or poses a personal health hazard will not be accepted for shipment. Any gasoline

containing more than 0.50 wt. % of dicyclopentadiene will not be accepted for shipment.

The referee method will be based on a gas chromatograph test.

Delivery test results may vary by the smaller of ASTM reproducibility for a given test or any test tolerance as allowed by state or EPA

regulations at the point of delivery.

Attachment D

D - 1

SAMPLE - OFFER GUARANTEE STANDBY LETTER OF CREDIT

BANK LETTERHEAD

IRREVOCABLE STANDBY LETTER OF CREDIT

Date:

To: U.S. Department of Energy

Strategic Petroleum Reserve

900 Commerce Road East

New Orleans, LA 70123

Attn: (Mary Roark)

AMOUNT OF LETTER OF CREDIT: U.S. $ ___________________(______________________)

CONTRACTOR: ___________________________________________________

NOTICE OF SALE NO: _____________________________________________

OFFER NO:_______________________________________________________

LETTER OF CREDIT NO: __________________________________________

EXPIRATION DATE: June 30, 2024_________________________________

AMERICAN BANKERS ASSOCIATION (ABA) NO: ______________________

To whom it may concern:

We hereby establish in the U.S. Department of Energy’s favor our irrevocable standby Letter of

Credit effective immediately for the account of our customer in response to the above U.S.

Department of Energy’s Notice of Sale, including any amendments thereto, for the sale of Strategic

Petroleum Reserve petroleum (Gasoline CBOB/RBOB). This Letter of Credit expires at least 30

calendar days after the date set for receipt of offers.

This letter of credit is available by your draft/s at sight, drawn on us and accompanied by a manually

signed statement that the signer is an authorized representative of the Department of Energy, and the

following statement:

“THIS DRAWING OF U.S. $__________________ (_________________) AGAINST

YOUR LETTER OF CREDIT NUMBERED __________________, DATED

______________, IS DUE THE U.S. GOVERNMENT BECAUSE OF THE FAILURE

OF _(CONTRACTOR)_ TO HONOR ITS OFFER TO ENTER INTO A CONTRACT

FOR THE PURCHASE OF SPR PETROLEUM FROM THE STRATEGIC

PETROLEUM RESERVE, IN ACCORDANCE WITH THE U.S. GOVERNMENT’S

NOTICE OF SALE NO. _____________, INCLUDING ANY AMENDMENTS

THERETO.”

Attachment D

D - 2

Drafts must be presented for payment on or before the expiration date of this Letter of Credit at our

bank. The Government may make multiple drafts against this Letter of Credit.

Upon receipt of the U.S. Department of Energy’s demand by hand, mail express delivery, or other

means, at our office located at , we will honor the demand and make

payment, by 3 p.m. Eastern Time of the third business day following receipt of the demand by wire

transfer of funds as a deposit to the account of the U.S. Treasury over the Fedwire Funds Service.

The information to be included in each transfer will be as provided in the above referenced Notice of

Sale.

This Letter of Credit is subject to the Uniform Customs and Practice for Documentary Credits (2007

Revision, International Chamber of Commerce Publication no. 600) and except as may be

inconsistent therewith, to the Uniform Commercial Code in effect on the date of issuance of this

Letter of Credit in the state in which the issuer’s head office within the United States is located.

We hereby agree with you that all drafts drawn under and in compliance with the terms of this Letter

of Credit will be duly honored upon presentation and delivery of the above documents for payment

at our bank on or before the expiration date.

In the event of a bankruptcy filing by the applicant prior to the expiration date of this letter of credit,

the expiration date of this letter of credit will automatically be extended by one hundred twenty

(120) calendar days from the expiration date.

Address all communications regarding this Letter of Credit to (name and phone number).

Very truly yours,

(Authorized Signature)

(Typed Name and Title)

Attachment D

D - 3

INSTRUCTIONS FOR OFFER GUARANTEE LETTER OF CREDIT

1. The depository institution must be an account holder with the Federal Reserve Banking

system with permission to send Fedwires and must have Fedwire eligibility Funds status of

either Eligible or Eligible – Settlement-only.

2. Letter of Credit must not vary in substance from this attachment. Provide a copy of this

attachment to your bank.

3. Banks shall fill in blanks EXCEPT those in the drawing statement. The drawing statement

is in bold print.

4. The information to be included and format to be used for a wire transfer are noted in

Attachment B of this Notice of Sale.

5. Type name and title under authorized signature and provide documentation of authorized

signature.

Attachment D

D - 4

REQUEST FOR OFFER GUARANTEE RETURNS

If you elect to have a letter of cancellation returned to you via e-mail only for cancellation of

your Offer Letter of Credit, please provide information below:

Send a signed authorization to cancel the Offer LOC to the following point of contact via e-

mail address:_________________

Contact Phone Number: _________________________

Attachment E

E - 1

SAMPLE - PAYMENT AND PERFORMANCE LETTER OF CREDIT

BANK LETTERHEAD

IRREVOCABLE STANDBY LETTER OF CREDIT

Date:

To: U.S. Department of Energy

Strategic Petroleum Reserve

900 Commerce Road East

New Orleans, LA 70123

Attn: (Mary Roark)

AMOUNT OF LETTER OF CREDIT: U.S.$______________(__________________________)

CONTRACTOR:_______________________________________________________

CONTRACT NO:______________________________________________________

LETTER OF CREDIT NO: ______________________________________________

EXPIRATION DATE: __________________________________________________

AMERICAN BANKERS ASSOCIATION (ABA) NO: _________________________

To whom it may concern:

We hereby establish in the U.S. Department of Energy’s favor our irrevocable standby Letter of Credit

effective immediately for the account of our customer’s above contract with the U.S. Department of

Energy for the sale of Strategic Petroleum Reserve petroleum (Gasoline CBOB/RBOB).

This letter of credit is available by your draft/s at sight, drawn on us and accompanied by a manually

signed statement that the signer is an authorized representative of the Department of Energy, and one or

both of the following statements:

a. “THIS DRAWING OF U.S. $______________(______________________) AGAINST

YOUR LETTER OF CREDIT NUMBERED ______________, DATED __________, IS

DUE THE U.S. GOVERNMENT BECAUSE THE GOVERNMENT HAS DELIVERED

SPR PETROLEUM (GASOLINE CBOB/RBOB) UNDER THE TERMS OF CONTRACT

NUMBER _____________________ , INCLUDING ANY AMENDMENTS THERETO,

AND _(CONTRACTOR)_ HAS NOT PAID UNDER THE TERMS OF THAT

CONTRACT.”

b. “THIS DRAWING OF U.S. $______________(______________________) AGAINST

YOUR LETTER OF CREDIT NUMBERED ______________, DATED __________, IS

DUE THE U.S. GOVERNMENT BECAUSE (CONTRACTOR) HAS FAILED TO TAKE

Attachment E

E - 2

DELIVERY OF SPR PETROLEUM UNDER THE TERMS OF CONTRACT

NUMBER________________, INCLUDING ANY AMENDMENTS THERETO.”

Drafts must be presented for payment on or before the expiration date of this Letter of Credit at our

bank. The Government may make multiple drafts against this Letter of Credit.

Upon receipt of the U.S. Department of Energy’s demand by hand, mail express delivery, or other

means, at our office located at , we will honor the demand and make payment,

by 3 p.m. Eastern Time of the third business day following receipt of the demand by wire transfer of

funds as a deposit to the account of the U.S. Treasury over the Fedwire Funds Service. The

information to be included in each transfer will be as provided in the above referenced contract.

This Letter of Credit is subject to the Uniform Customs and Practice for Documentary Credits (2007

Revision, International Chamber of Commerce Publication no. 600) and except as may be inconsistent

therewith, to the Uniform Commercial Code in effect on the date of issuance of this Letter of Credit in

the state in which the issuer’s head office within the United States is located.

We hereby agree with you that all drafts drawn under and in compliance with the terms of this Letter of

Credit will be duly honored upon presentation and delivery of the above documents for payment at our

bank on or before the expiration date.

In the event of a bankruptcy filing by the applicant prior to the expiration date of this letter of credit,

the expiration date of this letter of credit will automatically be extended by one hundred twenty (120)

calendar days from the expiration date.

Address all communications regarding this Letter of Credit to (name and phone number).

Very truly yours,

(Authorized Signature)

(Typed Name and Title)

Attachment E

E - 3

INSTRUCTIONS FOR PAYMENT AND PERFORMANCE GUARANTEE LETTER OF CREDIT

1. The depository institution must be an account holder with the Federal Reserve Banking system

with permission to send Fedwires and must have Fedwire eligibility Funds status of either

Eligible or Eligible – Settlement-only.

2. Letter of Credit must not vary in substance from this attachment. Provide a copy of this

attachment to your bank.

3. Banks shall fill in blanks EXCEPT those in the drawing statements. The drawing statements

are in bold print.

4. The information to be included and format to be used for a wire transfer are noted in

Attachment B of this Notice of Sale.

5. Type name and title under authorized signature and provide documentation of authorized

signature.

Attachment F

Offer Form

Line Item MLI

Delivery

Mode

Min QTY

(barrels)

DLI QTY

(barrels)

Terminal

Name

Min QTY

(Y/N)

Desired QTY

(barrels)

Pref

(Y/N)

Unit Price

(per barrel)

1 In Tank

2 In Tank

3 In Tank

4 In Tank

5 In Tank

NGSR Site Code (MLI and Terminal)

PR Port Reading, NJ In Tank In tank transfer

SP South Portland, ME

Please note min/max QTY as noted on Attachment A of this Notice of Sale

Delivery Modes

Offer Number/Identifier (bidder provided):

Attachment G

Terminal Information Supplementing Exhibit B from Standard Sales and Provisions

Name: Buckeye Terminals, LLC

Terminal Contact: Jeremy Korth

Terminal: Port Reading Terminal

Manager: Jeremy Korth

Location: 750 Cliff Road,

Port Reading, NJ 07064-2201

Tel. No.: 610.904.4045

Waterfront Loc.: Arthur Kill

Fax No.: 732.692.5214

Owner: Buckeye Terminals, LLC

E-mail: [email protected]

Operator: Buckeye Terminals, LLC

Hours of Operation: 24 hours / 7 days

Delivery Modes:

Tanker Docks

Dock #

Max. Loading

Rate (bbls/hr)

Max.

LOA(ft)

Max.

Beam (ft)

Max. Draft

(ft)

Max. DWT

North Dock

15,000

900

150

36.8

100,000 MT

South Dock

15,000

750

150

36.6

100,000 MT

Barge Docks

Dock #

Max. Loading

Rate (bbls/hr)

Max.

LOA(ft)

Max.

Beam (ft)

Max.

Draft(ft)

Max. DWT

FOOB

7,000

350

South Bulkhead

5,000

300

40-70*

*no south slip use

Pipelines

Name

Size (in)

Receipt Rate

(bbls/hr)

Issue Rate

(bbls/hr)

Buckeye 605 (BE)

N/A

7,000

Buckeye 604 (BE)

N/A

4,500

Colonial (CPL)

8,500

4,500

Truck Loading Racks

Hours of Operation: 24 hours / 7 days

Top-loading Positions: 2

Max. Loading Rate/Truck: 800 GPM

Bottom-loading Positions: 4

Max. Loading Rate/Truck: 800 GPM

Attachment G

Terminal Information Supplementing Exhibit B from Standard Sales and Provisions

Name: Buckeye Terminals, LLC

Terminal Contact: Paul Vasko

Terminal: South Portland Terminal

Manager: Paul Vasko

Location: 170 Lincoln Street

South Portland, ME 04106

Tel. No.: 610.904.4214

Waterfront Location: Fore River

Fax No.: 207.767.3253

Owner: Buckeye Terminals, LLC

E-mail: Pvasko@Buckeye.com

Operator: Buckeye Terminals, LLC

Hours of Operation: 24 hours / 7 days

Delivery Modes:

Tanker Docks

Dock #

Max. Loading

Rate (bbls/hr)

Max.

LOA (ft)

Max.

Beam (ft)

Max. Draft

(ft)

Max. DWT

N/A

Barge Docks

Dock #

Max. Loading

Rate (bbls/hr)

Max.

LOA(ft)

Max.

Beam (ft)

Max. Draft

(ft)

Max. DWT

N/A

Pipelines

Name

Size (in)

Receipt Rate

(bbls/hr)

Issue Rate

(bbls/hr)

755 Line

550

Truck Loading Racks

Hours of Operation: 24 hours / 7 days

Four (4) CBOB Bays

Top-loading Positions: N/A

Max. Loading Rate/Truck: N/A

Bottom-loading Positions: 7

Max. Loading Rate/Truck: 600 GPM