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Washington, DC - The current inventory of the Northeast Home Heating Oil Reserve will be converted to cleaner burning ultra low sulfur distillate to comply with new, more stringent fuel standards by some Northeastern states, the U.S. Department of Energy (DOE) said today.
The State of New York and other Northeastern states are implementing more stringent fuel standards that require replacement of high sulfur (2,000 parts per million) heating oil to ultra low sulfur fuel (15 parts per million). As a result, DOE will sell the current inventory of the Northeast Home Heating Oil Reserve, a total of approximately 2 million barrels, and repurchase ultra low sulfur distillate.
The sale of heating oil from the Reserve’s sites in New England and New York Harbor will commence Thursday, February 3, 2011, beginning 10:00 a.m. and ending at approximately 12:00 p.m. Eastern Time with an initial offer of approximately 1 million barrels from the Hess First Reserve Terminal in Perth Amboy, NJ using an interactive on-line bidding system.
The sale is open to all registered bidders who have posted the required $250,000 guarantee. For purposes of this sale, DOE has waived two requirements published in the Petroleum Distillate Sales Provisions, i.e., the limitation on the quantity of heating oil that may be awarded to a bidder or his affiliates and the requirement that a bidder certify that he is customarily engaged in the sale and distribution of heating oil. Locations, delivery points, pricing policies, and both minimum and maximum quantities offered are posted in the Notice of Sale.
More than one sales offering is planned until DOE has achieved its sales goal. Notices will be sent to registered potential bidders prior to each additional sales offer. To register for notices of sale, visit https://www.fossil.energy.gov/heatingoil/.
The Northeast Home Heating Oil Reserve was authorized by Congress in the Energy Policy Act of 2000 as a 2 million barrel emergency stockpile of Government-owned heating oil for the Northeastern States. The Reserve can supplement commercial fuel supplies should the region face or experience a severe disruption. Of the U.S. households that use heating oil to heat their homes, 69% reside in the Northeast.