Airport Management Guide for Providing Aircraft Fueling Services (2019) / Chapter Skim
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Overview P A R T 1 11 Chapter 1 Introduction 11 1.1 Airports as Active Participants in the FBO Industry 12 1.2 Expectations about Aviation Fuel Revenues 13 1.3 Current Challenges for the Aviation Fueling Business 17 1.4 Purpose of the Management Guide 18 1.5 Navigating the Management Guide 19 1.6 References 20 Chapter 2 Overview of the Aviation Fuel Industry 20 2.1 Upstream, Midstream, and Downstream Functions 21 2.2 Crude Oil and Refined Product Basics 26 2.3 Production and Distribution of Aviation Fuels 27 2.4 Consumption of Aviation Fuels 28 2.5 Pricing of Avgas and Jet Fuel 31 2.6 Managing Volatility in Aviation Fuel Prices 35 2.7 References 36 Chapter 3 Airport Fueling Systems 36 3.1 Uses of Aviation Fuel 37 3.2 Fuel Delivery to Aircraft 37 3.3 Prefabricated Self-Service Units 38 3.4 Components of a Full-Service Fueling System 47 3.5 Safety and Environmental Considerations 51 3.6 Summary of Federal and State Regulations, Codes, and Standards 53 3.7 References Part 1 of the management guide provides an overview of the aviation fuel business, a basic introduction to the refining and transportation of aviation fuels, and a discussion of the components of an airport fueling system.
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From page 11... ...
11 1.1 Airports as Active Participants in the FBO Industry 1.2 Expectations about Aviation Fuel Revenues 1.3 Current Challenges for the Aviation Fueling Business 1.4 Purpose of the Management Guide 1.5 Navigating the Management Guide 1.6 References Over the last three decades, the provision of fueling services at many airports has moved from the private sector to the public sector. As of 2016, 47% of fixed-base operator (FBO)
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12 Airport Management Guide for Providing Aircraft Fueling Services Table 1-1 groups FBO locations by runway length.
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Introduction 13 price that customers are actually paying for the fuel. In the course of this research, participating airports shared several common observations about fuel sales.
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14 Airport Management Guide for Providing Aircraft Fueling Services 1965 and 1980 and are edging toward retirement, flying fewer hours, or retiring out of the active fleet. Since 2000, active piston aircraft have declined by 27,875 but still represent two-thirds of the active GA fleet in 2016.
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Introduction 15 Imperial Oil in Edmonton also refines a blend of 100LL (Avgas)
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16 Airport Management Guide for Providing Aircraft Fueling Services product. As an example, Figure 1-4 shows variations in the average delivered costs each month in 2015.
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Introduction 17 1. Lower fuel prices at nearby airports; 2.
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18 Airport Management Guide for Providing Aircraft Fueling Services • Does the fueling facility meet all environmental requirements and is the emergency plan adequate to cover fueling services? • What fuel testing, system maintenance and calibrations/certifications are required, and how will these be met?
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Introduction 19 1.6 References FAA. AC 150/5190-7 -- Minimum Standards for Commercial Aeronautical Activities.
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20 2.1 Upstream, Midstream, and Downstream Functions 2.2 Crude Oil and Refined Product Basics 2.3 Production and Distribution of Aviation Fuels 2.4 Consumption of Aviation Fuels 2.5 Pricing of Avgas and Jet Fuel 2.6 Managing Volatility in Aviation Fuel Prices 2.7 References Chapters 2 and 3 of this management guide are foundational and present background information about the petroleum products industry as it pertains to an airport's fueling business. Chapter 2 focuses on the extraction, refining, and distribution of aviation fuels to airports.
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Overview of the Aviation Fuel Industry 21 2.2 Crude Oil and Refined Product Basics Crude oil is considered a fossil fuel because it is a mixture of hydrocarbons that formed millions of years ago from plants, animals, and microorganisms. As these organisms decompose, they are covered by soil, sand, sediments, or rock that gradually compress the organic matter.
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22 Airport Management Guide for Providing Aircraft Fueling Services Crude oil exists in liquid form in underground pools or reservoirs, in tiny spaces within sedimentary rocks, and near the surface in tar oil sands. Extraction of crude oil involves different degrees of difficulty, depending on where reserves are located and the cost to extract it.
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Overview of the Aviation Fuel Industry 23 Source: Walter Siegmund, January 2008. Figure 2-2.
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24 Airport Management Guide for Providing Aircraft Fueling Services down and liquefy. Heavier fractions remain on the bottom.4 Medium-weight fractions stay in the middle of the tower.
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Overview of the Aviation Fuel Industry 25 Figure 2-4 shows the different products made from a barrel of crude oil.8 Jet fuel represents approximately 10% of a barrel of crude oil, while Avgas represents 0.1%. The difference in the size of these fuel markets is dramatic.
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26 Airport Management Guide for Providing Aircraft Fueling Services Source: U.S. Energy Information Administration, Refinery Net Production, https://www.eia.gov/dnav/pet/PET_PNP_REFP2_DC_NUS_MBBL_A.htm.
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Overview of the Aviation Fuel Industry 27 2.4 Consumption of Aviation Fuels Figures 2-7 and 2-8 show fuel consumption by air carriers and general aviation aircraft. Since 2005, domestic consumption of jet fuel by U.S.
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28 Airport Management Guide for Providing Aircraft Fueling Services Source: U.S. DOT Form 41, via FAA Aerospace Forecasts.
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Overview of the Aviation Fuel Industry 29 • Transportation costs; • Fluctuations in seasonal and regional demand; • Environmental regulations; • Federal, state, and local taxes and fees; and • Supply disruptions caused by natural disasters and conflicts. All of these factors combine to produce different prices depending on the geographic location of the buyer and where the buyer is in the aviation fuel supply chain.
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30 Airport Management Guide for Providing Aircraft Fueling Services Wholesale Price by Refiner The wholesale price is the rack sales price charged by the refiner. This is the price charged to fuel distributors who purchase fuel at a supplier's terminal and provide their own transportation for the product.
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Overview of the Aviation Fuel Industry 31 specific credit cards that are offering promotions, frequent buyer awards, weekend specials, or advanced purchase cards for fuel bought at a specific airport or network of FBOs. Self-Service Discounts Airport fuel providers that offer a self-service product will set the self-service price, usually 50 to 80 cents below the full-service product.
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32 Airport Management Guide for Providing Aircraft Fueling Services of spot prices for jet fuel. For example, assume a local fuel operator receives deliveries of 7,500 gallons.
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Overview of the Aviation Fuel Industry 33 Mexico, Iraq, Colombia, and other countries. While imports are considerable, they are actually down from 2011, when crude oil imports were 61% of refinery inputs (Levine et al., 2015)
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34 Airport Management Guide for Providing Aircraft Fueling Services price at a particular location. There are spot markets around the world that serve as pricing benchmarks.
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Overview of the Aviation Fuel Industry 35 Current and future fuel prices are important considerations when an airport fuel operator sets a price. Chapter 5 provides a discussion about how to identify an airport's competitors and keep track of fuel prices at airports that directly compete.
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36 3.1 Uses of Aviation Fuel 3.2 Fuel Delivery to Aircraft 3.3 Prefabricated Self-Service Units 3.4 Components of a Full-Service Fueling System 3.5 Safety and Environmental Considerations 3.6 Summary of Federal and State Regulations, Codes, and Standards 3.7 References Chapter 2 provided an overview of the production and distribution of aviation fuels to airports. Chapter 3 takes a closer look at the storage and dispensing of fuel on an airport, the regulatory environment, and maintenance of fueling operations.
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Airport Fueling Systems 37 fuel, like Avgas, requires separate tanks and equipment. Some aircraft owners that use Mogas will purchase fuel at regular gas stations and self-fuel their aircraft.
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38 Airport Management Guide for Providing Aircraft Fueling Services Costs for small prefabricated systems could start at approximately $50,000 to $100,000, and depending on storage tank size, quantity, and siting, a system could cost significantly more. Self-service stations are not typically high priorities for federal funding, but airports interviewed for this project indicated that state grants, local governments, and private tenants have contributed to the purchase and installation of a self-service fueling system.
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Airport Fueling Systems 39 Fuel system diagrams provide an added level of safety. They can be used for the training of maintenance and operations personnel as well as the local emergency response.
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40 Airport Management Guide for Providing Aircraft Fueling Services Source: Burns & McDonnell Engineering Company, 2017. Figure 3-3.
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Airport Fueling Systems 41 in the fuel and can precipitate out when fuel temperature drops. For Jet A, approximately one part per million (PPM)
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42 Airport Management Guide for Providing Aircraft Fueling Services mandate that a tank be offset certain distances from buildings, property lines, public areas, any additional tanks, and dispensing equipment (Quilty, 2015)
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Airport Fueling Systems 43 for periodic removal of precipitated water through low-point drains and accumulated air through high-point vents. Secondary containment, such as a curbed concrete pad with valve drain, should be considered for aboveground pipe connections or non-welded joints where fuel could potentially drip or leak.
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44 Airport Management Guide for Providing Aircraft Fueling Services the storage tank. For smaller fuel quantities, truck-mounted pumps can be used.
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Airport Fueling Systems 45 Meters are used for pipeline receipt and are located at both the airport and upstream terminal or pipeline entrance. Having meters at both ends allows for a meter-in/meter-out form of leak detection on the buried pipeline.
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46 Airport Management Guide for Providing Aircraft Fueling Services • Equipment data sheets, • Normal operating procedures, • Emergency shutdown, and • Alarms and alarm responses. The O&M manual can be developed from instructions provided by equipment suppliers.
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Airport Fueling Systems 47 inspections of facility equipment in one location. The inspection procedures can be based on governing documents listed below or a fuel supplier or manufacturer recommendations.
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48 Airport Management Guide for Providing Aircraft Fueling Services • Vehicle collision protections; • Equipment safeguards to eliminate potential sources of sparks; • Bonding cables to avoid static electricity buildup during fueling; • Daily, quarterly, and annual inspections; and • Technician training. 3.5.2 Safety Regulations and Standards The principal safety regulations include the following: Code of Federal Regulations Requirements for handling and storage of aviation fuel on Part 139: Airports are detailed in Title 14 Code of Federal Regulations Section 139.321.
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Airport Fueling Systems 49 add to the risk of a spill. An accident or equipment failure could result in a high-pressure leak, releasing significant fuel quantities in a matter of minutes.
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50 Airport Management Guide for Providing Aircraft Fueling Services Certain airport hydrant systems are regulated under the UST regulations defined in 40 CFR Part 280. This regulation applies to all owners of underground tanks or pipes used to store fuel.
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Airport Fueling Systems 51 Clean Air Act Title V of the Clean Air Act requires major sources of air pollutants and certain other sources to obtain and maintain an operating permit. Major sources generally include those emitting more than 100 tons per year of any criteria pollutant, and lower thresholds apply in non-attainment areas.
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52 Airport Management Guide for Providing Aircraft Fueling Services specific National Fire Protection Association codes and standards. Additional guidance documents are published by Airlines for America.
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Airport Fueling Systems 53 – NFPA 407: Standard for Aircraft Fuel Servicing – NFPA 704: Standard System for the Identification of the Hazards of Materials for Emergency Response • SAE International: – Aerospace Recommended Practice (ARP) 5789: Aviation Fuel Facilities – Aerospace Standard 6401: Storage, Handling, and Distribution of Jet Fuels at Airports • State, county, and city building and fire codes (if any)
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54 Airport Management Guide for Providing Aircraft Fueling Services Price, H
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