Notice to Members
Notice No. 209
04/19/2006
Clarification of Distillation Standard for the NYMEX RBOB Contract
Beginning effective for deliveries against the May 2006 contract month of the NYMEX RBOB Gasoline Blendstock Contract, the T50 distillation standard during the summer for VOC controlled RBOB shall meet the Buckeye T50 minimum requirement at 158 Degrees Fahrenheit, as required by Grade 532. This reflects the EPA downstream standards for delivery of RBOB in the New York Harbor area. Attached below is the rule amendment.

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Rule Amendments
(Italics indicate insertion, and strikethrough indicates deletion)

Rule 191.03 Grade and Quality Specifications

The RBOB delivered shall be a hydrocarbon oil free from alkali, mineral acid, grit, fibrous or other foreign matter, meeting the specifications as are in effect for downstream parties at the time of delivery meeting the requirements of Colonial Pipeline Company (Atlanta, Georgia) for:

(A) Fungible F Grade, Reformulated Regular Gasoline Blendstock (RBOB) for Blending with 10% Denatured Fuel Ethanol (92% Purity) as defined in ASTM D4806 as listed by the Colonial Pipeline as being properly designated for sale in New York and New Jersey in accordance with U.S. Environmental Protection Agency (EPA) regulations; provided, however, and notwithstanding anything to the contrary in the Colonial Pipeline Company specifications, the specifications set forth in Subsections (A)(1) through(A)(5) below shall apply for Reid Vapor Pressure, Oxygenation, Corrosion, Distillation, and EPA Reformulated Gasoline requirements:

(1) Reid Vapor Pressure: RBOB delivered pursuant to this contract shall have Reid Vapor Pressure no greater than the following maximum levels after blending with denatured fuel ethanol:

MONTH
p.s.i
January
15.0
February
15.0
March
13.5
April
9.0
May
9.0
June
9.0
July
9.0
August
9.0
September 1-15
9.0
September 16-30
13.5
October
13.5
November
15.0
December
15.0


Provided that, deliveries on the September contract originally nominated for delivery on or before September 15 shall not exceed 9.0 p.s.i., regardless of the time of actual delivery.

(2) Oxygenation: RBOB shall not contain oxygenates, such as ethers or alcohols. The di minimis limit of MTBE, ETBE, and TAME allowed is 0.3% by volume maximum.

(3) Corrosion: RBOB shall comply with the Colonial specifications for Copper and Silver Corrosion under ASTM D130 and ASTM D4814. The NACE Corrosion test is not required.

(4) Distillation: RBOB shall comply with the Colonial Pipeline Distillation requirements, except for the T50 minimum requirement which shall comply with the Buckeye Pipeline requirements for Grade 542 for Non-VOC controlled RBOB and Grade 532 for VOC controlled RBOB.

dDuring the winter season when the Non-VOC controlled RBOB shall meet the T50 minimum requirement (for 50% by volume Evaporation) at 150 Degrees Fahrenheit, as required by Buckeye Pipeline Grade 542. During the summer season the VOC controlled RBOB shall meet the T50 minimum requirement (for 50% by volume Evaporation) at 158 Degrees Fahrenheit, as required by Buckeye Pipeline Grade 532.

(5)(A) RBOB deliveries shall comply with EPA requirements at all times, including the minimum and maximum standards set forth in 40 C.F.R. Part 80 as are in effect for downstream parties at the time and place of delivery, and shall be adjusted by the amount of any increase or decrease in such standards as required by EPA for RBOB sold and distributed for consumption in the New York Harbor area. RBOB deliveries shall comply with State and Federal requirements for oxygen content for RBOB sold for consumption as are in effect at the time and place of delivery.

(B) RBOB shall be designated as VOC-Controlled in accordance with EPA regulations during the period April 1 through September 15, including any deliveries on the September contract originally nominated for delivery on or before September 15, regardless of the date of actual delivery.

(C)(1) All tests shall be performed in accordance with EPA regulations.

(2) Enforcement tolerances, as permitted by EPA for downstream parties, shall apply to all specifications governed by EPA regulations. Product delivered in conformance with such specifications, including enforcement tolerances, may not be rejected by the buyer as nonconforming to the specifications.

(3)A.S.T.M. refers to the American Society for Testing Materials.

(4) A.P.I. refers to the American Petroleum Institute.
Should you have any questions or require any further information, please contact exchangeinfo@nymex.com