Effective April 1, 1998 New Brunswick introduced a marking program for tax exempt diesel fuel, stove oil and furnace oil so as to distinguish it from taxed motive fuel. In order to ensure proper distribution of the tax exempt products, retailers must maintain separate storage facilities for exempt (dyed) motive fuel.
Authorization to Mark
Licensed wholesalers may apply for location specific authorizations to mark motive fuel. Marker can only be added to motive fuel by persons authorized to do so. In order to mark, the following requirements must be met:
- Hold a valid Gasoline and Motive Fuel Wholesaler's Licence; and
- Hold a valid authorization to mark for each location at which fuel is marked.
- No person shall remove the dye from marked motive fuel or render the dye invisible; and
- No person shall carry dye in any delivery truck or transport such dye in any vehicle unless authorized by the Minister.
The person authorized to mark motive fuel shall add the dye, by means of an injector, on the premises of a bulk plant located in the Province or by means of a mobile injector, as approved by the Minister. The person authorized to mark motive fuel is also responsible for the safe and proper disposition of the empty dye containers and shall take all reasonable precautions for the safe keeping of the dye to prevent unauthorized use of the dye..
A person authorized to mark motive fuel must requisition from the Minister, or a person designated by the Minister, sufficient quantities of dye to ensure that such person has on hand at all times a quantity of dye that is adequate for the required marking.
Inventory Control and Record Keeping Requirements
A wholesaler authorized to mark motive fuel shall maintain sufficient records of the quantities of the dye received and used in order to disclose an accurate account of the dye consumed. The wholesaler could also be requested to file a report giving details of the dye inventory, dye obtained, dye used and fuel marked during the preceding month and any other such information that the Minister may require.
Where the coloring agent is not kept in a fixed storage tank, the wholesaler authorized to mark shall keep the coloring mixture in a sealed container placed in premises situated close to the place where the marking of motive fuel is done.
The wholesaler authorized to mark is also responsible for the coloring agent and shall ensure that it is used for no purpose other than the marking of motive fuel under the Act. In addition, the coloring agent shall be kept at all times at a temperature higher than -20 degrees Celsius.
The wholesaler authorized to mark shall acquire, install and maintain in good operating condition the equipment necessary for marking. Where the equipment includes an injection system, the system shall be installed so that it may be easily accessible for maintenance or inspection purposes.
Before commencing the marking of motive fuel, the wholesaler shall submit to the Minister a plan of the projected equipment and installations for the marking of motive fuel. The wholesaler shall also submit to the Minister before any change in the existing marking equipment and installations, a plan of the projected changes.
Routine inspections will be conducted to verify record keeping requirements and to ensure that dye-mixing procedures are performed in accordance with Regulations.
Proportion of Coloring Agent
Marking or coloring motive fuel shall be done by adding a coloring agent (marker), containing a red tincture, a tracer and aromatic solvents in a proportion of 14 litres of each million litres of motive fuel.
In order to mark the motive fuel in a proportion of 14 parts per million, the pure dye must be properly diluted with stove oil or kerosene (cocktail mix). The cocktail mix is created by blending 18 kilograms of pure dye with 625 litres of stove oil or kerosene. The cocktail mix is then injected at the rate of 50 millilitres per 100 litres of motive fuel.
a. Refined in New Brunswick
Where motive fuel to be marked is refined in New Brunswick, the marking shall be done during the:
- storage of the motive fuel in the tanks at the refinery, at an oil pipeline terminal, or at a marine terminal operated by the wholesaler authorized to mark, or
- delivery of the motive fuel to the loading station at the refinery, at an oil pipeline terminal, or at a marine terminal operated by the wholesaler authorized to mark.
b. Imported into New Brunswick
Where motive fuel to be marked is imported into New Brunswick and is already refined, the marking shall be done during the storage of the motive fuel in the importer's tanks, or at the loading racks of a marine terminal operated by the importer, unless the marking of such motive fuel was done in accordance with the Regulation before being imported.
Where the motive fuel is not stored in such tanks, marking shall be done before or on its entry into New Brunswick.
c. Tank Truck Loading Racks
Marking at the tank truck loading racks is effected by means of an injection system equipped with an automatic cut-off device designed to prevent the delivery of non- marked motive fuel in case of a defect in the system.
The motive fuel delivery system at the tank truck loading rack shall comprise separate loading spouts for marked motive fuel and non-marked motive fuel, and each spout shall be equipped with a meter.
A motive fuel delivery system may include only one loading spout for marked motive fuel and clear motive fuel where it meets the following conditions:
- The loading spout shall be designed or equipped so that it may be cleaned by means of a sufficient quantity of clear motive fuel at the end of each delivery of motive fuel and it shall be used for the delivery of motive fuel only; and
- The delivery system shall be equipped with a meter in order to distinguish between deliveries of marked motive fuel and deliveries of clear motive fuel.
Any deviation of this procedure must be approved by the Revenue Administration Division.