Chevron to Work With East Coast Operators on Re-Imaging Reimbursement

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Chevron to Work With East Coast Operators on Re-Imaging Reimbursement

SAN RAMON, Calif. -- News that Chevron is pulling its motor fuels operations out of parts of the Eastern United States had some branded station owners wondering if the oil company will reimburse them for money spent on recent reimaging efforts.

Some 1,100 independently owned and operated retail convenience store stations -- representing roughly 8 percent of Chevron's U.S. sales volume -- will be de-branded by midyear 2010. Impacted areas include Delaware, Indiana, Kentucky, North Carolina, New Jersey, Maryland, Ohio, Pennsylvania, South Carolina, Virginia, West Virginia, Washington, D.C. and parts of Tennessee.

According to one Chevron-branded operator -- who said he learned of the oil company's plan to withdraw from his market from this Web site's news report -- hundreds of stations have spent considerable amounts this year complying with Chevron's mandatory reimaging program.

Public Relations Manager Gus Santoyo told CSNews Online: "These specific issues are being addressed by Chevron business consultants with each marketer on a case-by-case basis. We are committed to work with the marketers to make sure the transition goes as smoothly as possible. We want to make sure people understand this was a tough decision, but also a very reasoned decision.

"We want to make sure people are in close communications with their business consultants," he added.

Santoyo said there were "various communications" sent to marketers when the oil company first announced its intentions to withdraw from the selected East Coast markets and the oil company will "continue to communicate with marketers."

Chevron expects all of the stations to continue operating under other brands. It will continue to supply more than 5,000 Chevron and Texaco branded stations in the Eastern Unites States, and will continue to develop its retail presence in other areas of the country, the company said in a statement.

The last time Chevron realigned its markets was in the mid-1990s, when it exited some areas of Arkansas, western Kentucky, Tennessee and southern Indiana.

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