CHAPTER 2. INSPECTION, SALE, AND DELIVERY OF PETROLEUM PRODUCTS
IC 16-44-2
Chapter 2. Inspection, Sale, and Delivery of Petroleum Products
IC 16-44-2-1
"Gasoline" defined
Sec. 1. As used in this chapter, "gasoline" has the meaning setforth in IC 6-6-1.1-103.
As added by P.L.2-1993, SEC.27.
IC 16-44-2-2
"Kerosene" defined
Sec. 2. As used in this chapter, "kerosene" means any light fueloil:
(1) with an A.P.I. gravity of at least thirty-nine (39) degreesFahrenheit as determined by the ASTM D-287-55 method; and
(2) having an end point of not greater than five hundred ninety(590) degrees Fahrenheit as determined by the ASTM D-86-56distillation method.
As added by P.L.2-1993, SEC.27. Amended by P.L.177-1993, SEC.3.
IC 16-44-2-2.4
"MTBE" defined
Sec. 2.4. As used in this chapter, "MTBE" refers to the gasolineadditive methyl tertiary butyl ether.
As added by P.L.26-2002, SEC.2.
IC 16-44-2-3
"Petroleum products" defined
Sec. 3. (a) As used in this chapter, "petroleum products" includesthe following:
(1) Gasoline.
(2) Naphtha.
(3) Kerosene.
(4) Distillate.
(5) Fuel oil.
(6) Similar petroleum products, regardless of name, includingbenzol and other similar products that are or may be used in theblending of motor fuel.
(b) The term does not include the following:
(1) Lubricating oils.
(2) Any product having:
(A) a Saybolt universal viscosity at one hundred (100)degrees Fahrenheit of at least seventy (70) seconds; and
(B) a flash point of at least one hundred fifty (150) degreesFahrenheit by the ASTM method.
As added by P.L.2-1993, SEC.27.
IC 16-44-2-4
Gasoline and kerosene for sale or use in Indiana; inspection ofsamples; fee Sec. 4. (a) The state department or any authorized agent of thestate department may inspect samples of gasoline or kerosene storedin any tank:
(1) that is adjacent to a refinery or marine or pipeline terminalin Indiana; and
(2) from which withdrawals are made for sale or use in Indianaor for transportation to destinations in Indiana other thantransportation to other refineries or terminals in Indiana.
(b) Gasoline or kerosene inspected under subsection (a) is subjectto the inspection fee specified in section 18 of this chapter wheneverthe stock in the tank is replenished.
As added by P.L.2-1993, SEC.27. Amended by P.L.177-1993, SEC.4.
IC 16-44-2-5
Imported gasoline and kerosene; inspection of samples; fee
Sec. 5. (a) The state department or any authorized agent of thestate department may inspect samples of gasoline or keroseneimported into Indiana other than that placed in storage at refineriesor marine or pipeline terminals in Indiana.
(b) Gasoline or kerosene inspected under subsection (a) is subjectto the inspection fee specified in section 18 of this chapter.
(c) A person who receives gasoline or kerosene:
(1) that is imported into Indiana (other than that placed instorage at refineries or marine or pipeline terminals in Indiana);and
(2) on which the inspection fee has not been paid;
shall notify the state department of the receipt of the gasoline orkerosene.
As added by P.L.2-1993, SEC.27. Amended by P.L.177-1993, SEC.5.
IC 16-44-2-6
Place of inspections
Sec. 6. The state department may conduct inspections and tests ongasoline or kerosene at any place the gasoline or kerosene is offeredfor sale in Indiana.
As added by P.L.2-1993, SEC.27. Amended by P.L.177-1993, SEC.6.
IC 16-44-2-7
Prohibition on sale of defective products
Sec. 7. (a) If the state department's inspection of gasoline orkerosene under this chapter reveals that the gasoline or kerosene failsto meet the specifications prescribed by law for those products, thestate department may prohibit the sale of those products.
(b) A person may not offer for sale any gasoline or kerosene thatthe state department has prohibited from sale.
As added by P.L.2-1993, SEC.27. Amended by P.L.177-1993, SEC.7.
IC 16-44-2-8
Conduct of inspections; minimum specifications
Sec. 8. (a) The inspections and tests made by the state department
under this chapter shall be conducted in accordance with the methodsoutlined by the American Society for Testing and Materials.
(b) The inspections and tests as to gasoline, gasohol, and kerosenemust reflect the following minimum specifications necessary for theapproval of the product:
(1) Gasoline or gasohol:
(A) Corrosion Test . Method ASTM D-130. A clean copperstrip may not show more than extremely slight discolorationwhen submerged in the gasoline for three (3) hours at onehundred twenty-two (122) degrees Fahrenheit.
(B) Distillation Range . Method ASTM D-86. When thethermometer reads one hundred sixty-seven (167) degreesFahrenheit, not less than ten percent (10%) may beevaporated. When the thermometer reads two hundredeighty-four (284) degrees Fahrenheit, not less than fiftypercent (50%) may be evaporated. When the thermometerreads three hundred ninety-two (392) degrees Fahrenheit, notless than ninety percent (90%) may be evaporated. Theresidue may not exceed two percent (2%). Percentevaporated is found by adding the distillation loss to theamount collected in the receiver at each specificationtemperature.
(C) Sulphur . Method ASTM D-1266 or D-2622. Sulphurmay not exceed twenty-five hundredths of one percent(0.25%).
(D) Vapor Pressure . Method ASTM D-4953, ASTMD-5191, or any other ASTM method to determine vaporpressure approved by the United States EnvironmentalProtection Agency. For gasoline, the Reid vapor pressure atone hundred (100) degrees Fahrenheit may not exceed thefollowing:
(i) Fifteen (15) pounds per square inch at the normalbarometric pressure at the point of delivery duringNovember, December, January, February, and March.
(ii) Fourteen (14) pounds per square inch during April andOctober.
(iii) Twelve (12) pounds per square inch during May,June, July, August, and September.
(E) For gasohol (a blend of gasoline and alcohol permittedunder federal tax requirements), the vapor pressure may notexceed the following:
(i) Sixteen (16) pounds per square inch during November,December, January, February, and March.
(ii) Fifteen (15) pounds per square inch during April andOctober.
(iii) Thirteen (13) pounds per square inch during May,June, July, August, and September.
(F) After July 23, 2004, gasoline may not contain more thanone-half percent (0.5%) of MTBE by volume.
(2) Kerosene: (A) Flash Test . Method ASTM D-56. Flash point may notbe lower than one hundred (100) degrees Fahrenheit.
(B) For the purpose of this chapter, any petroleum productdesignated by name or reference as "kerosene" must meetthe federal specifications for kerosene VV-K-211d in effecton March 1, 1977.
(c) Gasoline, gasohol, and kerosene products that do not complywith the minimum specifications described in subsection (b) may notbe sold, offered for sale, or used in Indiana.
(d) Petroleum products other than gasoline, gasohol, or keroseneshall be inspected and tested by the methods as are necessary todetermine the contents and characteristics of the product.
As added by P.L.2-1993, SEC.27. Amended by P.L.177-1993, SEC.8;P.L.151-1997, SEC.1; P.L.26-2002, SEC.3.
IC 16-44-2-9
Petroleum products containing ethanol or methanol; sale ordelivery other than retail; instrument requirements
Sec. 9. (a) A person who sells or delivers a petroleum productcontaining ethanol (ethyl alcohol) or methanol (methyl alcohol), orboth, to a person other than a retail consumer must place on theinstrument evidencing the sale or delivery of the petroleum product:
(1) the name of each alcohol; and
(2) the percentage (to the nearest whole percent), by volume, ofeach alcohol;
that is contained in the petroleum product sold or delivered by theperson.
(b) A person who fails to comply with this section commits aClass A infraction.
As added by P.L.2-1993, SEC.27.
IC 16-44-2-10
Repealed
(Repealed by P.L.123-1994, SEC.3.)
IC 16-44-2-11
Samples; inspections and tests
Sec. 11. (a) The state department or any authorized agent of thestate department may take samples of petroleum products for tests,make inspections at any points inside or outside Indiana, open anyoriginal container containing petroleum products, and take a truesample of not less than sixteen (16) ounces of the contents, eventhough the original container may still be in the possession of acommon or contract carrier if opening and sampling does not undulyinconvenience or hamper the transportation of the products. The statedepartment or any authorized agent of the state department may nottake a sample that exceeds sixty-four (64) fluid ounces.
(b) If an original container is opened and sampled undersubsection (a), the container shall be resealed with seals furnished bythe state department or any authorized agent of the state department.As added by P.L.2-1993, SEC.27. Amended by P.L.177-1993,SEC.10.
IC 16-44-2-12
Powers of law enforcement officers
Sec. 12. The authorized agents or employees of the statedepartment have the authority of law enforcement officers in theenforcement of this chapter, including the authority to arrest, with orwithout warrants, and to take offenders to courts for prosecution.
As added by P.L.2-1993, SEC.27. Amended by P.L.177-1993,SEC.11.
IC 16-44-2-13
Rules and regulations governing inspections, forms, andenforcement
Sec. 13. The state department may adopt rules under IC 4-22-2concerning the following:
(1) Methods of inspections.
(2) The providing of forms required.
(3) Other matters necessary for the enforcement of this chapter.
As added by P.L.2-1993, SEC.27. Amended by P.L.177-1993,SEC.12.
IC 16-44-2-14
Railroad and transportation companies; records; inspections
Sec. 14. (a) Every agent and employee of any railroad companyor other transportation company that has the custody of books orrecords showing the shipment or receipt of petroleum products shallgive and permit the state department or the state department's agentsand employees free access to those books and records for the purposeof determining the amount of those products shipped and received.
(b) All clerks, bookkeepers, express agents, railroad agents orofficials, employees of common carriers or contract carriers, or otherpersons shall assist the state department or the state department'semployees or authorized agents, when so requested, in tracing,finding, and inspecting shipments.
As added by P.L.2-1993, SEC.27. Amended by P.L.177-1993,SEC.13.
IC 16-44-2-15
Receipt of kerosene or gasoline; definition
Sec. 15. For the purposes of this chapter, gasoline or kerosene isconsidered to be received in Indiana as follows:
(1) If stored in tanks adjacent to a refinery or a marine orpipeline terminal in Indiana, the gasoline or kerosene isconsidered to be received when withdrawn from storage for saleor use in Indiana or for transportation to destinations in Indianaother than for transfer to other refineries or marine or pipelineterminals in Indiana and not before. When so withdrawn, thegasoline or kerosene is considered to be received by the person
who is the owner of the gasoline or kerosene at the time ofwithdrawal unless the gasoline or kerosene is withdrawn fortransportation or delivery to or for the account of a person whois bonded under the gasoline tax law (IC 6-6-1.1), in which casethe gasoline or kerosene is considered to be received by theperson to or for whose account the gasoline or kerosene istransported or delivered.
(2) If imported into Indiana (other than to a refinery or marineor pipeline terminal in Indiana), the gasoline or kerosene isconsidered to be received at the time and by the person who isthe owner of the gasoline or kerosene when the gasoline orkerosene is spotted or placed for unloading in Indiana.
(3) If produced, blended, or compounded in Indiana other thanat a refinery or a marine or pipeline terminal, the gasoline orkerosene is considered to be received when produced, blended,or compounded.
As added by P.L.2-1993, SEC.27.
IC 16-44-2-16
Records of tests and inspections
Sec. 16. The state department shall keep the records necessary forthe purposes of this chapter of all tests and inspections under thischapter.
As added by P.L.2-1993, SEC.27. Amended by P.L.177-1993,SEC.14.
IC 16-44-2-17
Certificate of inspection
Sec. 17. (a) The state department shall furnish to the person forwhom inspections are made under this chapter a certificate ofinspection covering each receipt by that person of gasoline orkerosene with respect to which an inspection is made. The certificatemust indicate the following:
(1) The date of the inspection.
(2) The identity of the container from which the sample wastaken.
(3) The kind and quantity of the product received.
(4) The identity of the conveyance by which the product wasreceived.
(5) The result of the test and inspection.
(b) To enable the state department to make certificates coveringwithdrawals from storage at a refinery or marine or pipeline terminaland the receipt of gasoline or kerosene at other points in Indiana, therecords of withdrawals and receipts shall be available to the statedepartment during all reasonable business hours.
As added by P.L.2-1993, SEC.27. Amended by P.L.177-1993,SEC.15.
IC 16-44-2-18
Inspection fees; surety bonds; failure to pay tax; penalty and
interest
Sec. 18. (a) Except as provided in subsection (b), fees for theinspection of gasoline or kerosene shall be at the rate of fifty cents($0.50) per barrel (fifty (50) gallons) on all gasoline or kerosenereceived in Indiana less deductions provided in this section.
(b) A fee for inspection of gasoline or kerosene may not becharged for the following:
(1) On transport or tank car shipments direct to the federalgovernment.
(2) On gasoline or kerosene received and subsequently exportedfrom Indiana or returned to refineries or marine or pipelineterminals in Indiana.
(c) Fees shall be paid to the state department by the personreceiving gasoline or kerosene in Indiana at the time gasoline orkerosene products are received, unless the person receiving thegasoline or kerosene is licensed as a distributor under the gasolinetax law (IC 6-6-1.1). In that case, the person in receipt of the gasolineor kerosene shall do the following:
(1) Include in the person's monthly gasoline tax report astatement of all gasoline and kerosene received during thepreceding calendar month on which inspection fees are due.
(2) Remit the amount of the inspection fees at the same time themonthly motor fuel tax report is due.
(d) A refiner or other person supplying gasoline or kerosene to thefirst receiver in Indiana may elect to pay the fees monthly on allgasoline or kerosene supplied to persons in Indiana not licensed asdistributors under the gasoline tax law (IC 6-6-1.1). If the supplier isnot licensed as a distributor under the gasoline tax law of Indiana (IC6-6-1.1), the supplier shall, as a condition precedent to such election,file with the state department a corporate surety bond that meets thefollowing conditions:
(1) Is in the form and amount that the state departmentdetermines, not to exceed two thousand dollars ($2,000).
(2) Is conditioned that the supplier does the following:
(A) Reports all gasoline and kerosene supplied by thesupplier to persons in Indiana not licensed as distributorsunder the gasoline tax law (IC 6-6-1.1).
(B) Pays inspection fees monthly on or before thetwenty-fifth day of each calendar month for the precedingcalendar month.
(e) A person taking credit for gasoline or kerosene exported orreturned to a refinery or terminal shall substantiate that credit in themanner that the state department reasonably requires by rule.
(f) A distributor who fails to file a monthly report and pay the taxdue as required by this chapter is subject to a penalty of five percent(5%) of the amount of unpaid tax due and interest on the unpaid taxand penalty at the rate of eight percent (8%) annually. However, ifa delay not exceeding ten (10) days is due to a mistake, an accident,or an oversight without intent to avoid payment, the administratormay waive the penalty and interest.As added by P.L.2-1993, SEC.27. Amended by P.L.177-1993,SEC.16; P.L.28-1997, SEC.29; P.L.214-2005, SEC.60.
IC 16-44-2-18.5
Special fuel inspection fee; collection; refunds
Sec. 18.5. (a) As used in this section, "special fuel" has themeaning set forth in IC 6-6-2.5-22, except that the term does notinclude kerosene.
(b) Except as provided in subsection (c), fees for the inspection ofspecial fuel shall be at the rate of fifty cents ($0.50) per barrel (fifty(50) gallons) on all special fuel sold or used in producing orgenerating power for propelling motor vehicles in Indiana lessdeductions provided in this section.
(c) A fee for the inspection of special fuel may not be chargedwith respect to special fuel that is exempt from the special fuel taxunder IC 6-6-2.5-30.
(d) The fee imposed by this chapter on special fuel sold or usedin producing or generating power for propelling motor vehicles inIndiana shall be collected and remitted to the state at the same time,by the same person, and in accordance with the same requirementsfor collection and remittance of the special fuels tax underIC 6-6-2.5-35.
(e) Fees collected under this section shall be deposited by thedepartment in the underground petroleum storage tank excessliability trust fund established by IC 13-23-7-1.
(f) A person who receives a refund of special fuel tax underIC 6-6-2.5 is also entitled to a refund of fees paid under this sectionif:
(1) the fees were paid with respect to special fuel that was usedfor an exempt purpose described in IC 6-6-2.5-30; and
(2) the person submits to the department of state revenue aclaim for a refund, in the form prescribed by the department ofstate revenue, that includes the following information:
(A) Any evidence requested by the department of staterevenue concerning the person's:
(i) payment of the fee imposed by this section; and
(ii) receipt of a refund of special fuel taxes from thedepartment of state revenue under IC 6-6-2.5.
(B) Any other information reasonably requested by thedepartment of state revenue.
The department of state revenue may make any investigation itconsiders necessary before refunding fees to a person.
As added by P.L.214-2005, SEC.61. Amended by P.L.1-2006,SEC.307.
IC 16-44-2-19
Disposition of funds collected
Sec. 19. All money collected for inspections under this chaptershall be deposited in the underground petroleum storage tank excessliability trust fund established by IC 13-23-7-1.As added by P.L.2-1993, SEC.27. Amended by P.L.1-1996, SEC.78;P.L.2-1998, SEC.61.
IC 16-44-2-20
Inspectors; conflict of interest
Sec. 20. A person employed by the state department to makeinspections under this chapter may not do any of the following:
(1) Directly or indirectly engage in the business of dealing inpetroleum products.
(2) Engage in any other business of a nature that preventsproper attention to the details and duties of the necessaryinspections as prescribed by this chapter.
As added by P.L.2-1993, SEC.27. Amended by P.L.177-1993,SEC.17.
IC 16-44-2-21
False or altered mark or brand
Sec. 21. A person may not knowingly mark or brand falsely acontainer of petroleum products or change, alter, or deface the markor brand of such a container.
As added by P.L.2-1993, SEC.27.
IC 16-44-2-22
Violations
Sec. 22. Except as provided in sections 9 and 10 of this chapter,a person who recklessly violates this chapter commits a Class Bmisdemeanor.
As added by P.L.2-1993, SEC.27.