Q1:       Why is CountryMark changing its logo and retail identity?
A:         For many years, CountryMark used the “Co-op Circle” logo for brand identification. This symbol (used by local cooperatives, our predecessor Indiana Farm Bureau Co-operative, and then Countrymark Cooperative) became synonymous with farm supply across a broad range of goods and services. Today, our product mix and customer makeup is different from what the Co-op Circle represented, and so we are making this change to better reflect who the company is today. CountryMark is now exclusively an energy company, and today more than half of its sales come from non-farm customers. We supply fuels and lubricants through local cooperatives across Indiana and into neighboring states including Michigan, Ohio and Illinois.

Q2:       Can I still purchase fuel at the EnergyPlus 24 locations?
A:         Yes. Most of the EnergyPlus 24 locations have changed to the new CountryMark identity. There are 90 of these fuel stations across Indiana, Ohio, Illinois and Michigan where customers can purchase high quality fuel 24 hours a day and do not need to be a cooperative member.

Q3:       How is CountryMark fuel distributed?
A:         A key strength of our brand is the quality control realized through our private pipeline and terminal system, the efficient distribution channel of our branded retailers, expertise of petroleum sales representatives and experience of local energy managers. CountryMark sells fuel to 19 branded cooperatives who then distribute it through a network of 90 retail fuel stations, 180 petroleum tank wagons and numerous transport loads. This fuel is delivered daily to Indiana companies, farms and government entities.

Q4:       Where does CountryMark source its crude oil?
A:         The CountryMark refinery in Mount Vernon, Ind., uses 100 percent American crude sourced from the Illinois Basin, a 53,000 square mile depression underneath most of Illinois, western Indiana, western Kentucky and northern Tennessee. A system of approximately 500 miles of pipelines owned by CountryMark is used to gather the crude from thousands of small wells that are owned by farmers and other individuals who own the land above the oil field.

Q5:       How productive is the Illinois Basin oil field?
A:         The Illinois Basin is one of the most extensively drilled and mature hydrocarbon basins in the world and has been in production for more than a century. Production declined over the years but is now at a fairly constant level of about 50,000 barrels per day (roughly half of that production is refined by CountryMark). Based on geological evidence and the advent of new technologies, experts believe that recent resource discoveries and new applications are signs that the basin still has much potential. For example:

• While the basin is considered mature in terms of shallow production (less than 6,000 feet), potential resources at greater depths (more than 15,000 feet) are yet unexplored.
• New technologies that reduce the costs and risks of deep drilling are in development.
• Advances in drilling technologies allow operators to reach reservoirs up to several miles from the drilling site, so that more resources can be recovered with fewer wells, less waste and less surface disturbance.
• New technologies also will help operators reach more complex geological settings where traditional production processes were limited.

Q6:       What makes Illinois Basin crude so special?
A:         First is the fact that it comes from America. By sourcing American crude oil, we reduce our reliance on foreign oil and all dollars spent for this oil stay here in the Midwest. Second, the crude itself is higher quality than that from the Middle East. Crude oils are classified by their density and sulfur content. Lighter crudes, which are found in the United States, result in higher value products that can be recovered with simple distillation. By contrast, for example, Saudi Arabia’s crude has a heavy residue that produces a lower value product and must go through additional processing to produce desired products. U.S. crude naturally contains less sulfur, which also contributes to processing ease and product quality. It refines better, yields diesel with a higher cetane rating (see Question #7) and produces more gasoline and diesel from each barrel. Asphalt is a byproduct of the refining process, and asphalt from Illinois Basin crude is used to make some of the highest quality roofing shingles available.

Q7:       What is the cetane rating of diesel fuel?
A:         Cetane is the diesel equivalent to gasoline’s octane rating. Unlike an octane rating, which rates gasoline’s resistance to spontaneous ignition, the cetane rating number notes the relative ease with which diesel fuel ignites. The higher the cetane number, the easier the fuel ignites. Standards require at least a 40 cetane rating, and premium, off-road diesel fuel has a 47 to 50 cetane rating. CountryMark premium diesel is guaranteed to have a cetane rating of 50 or above. Our premium diesel flagship product, Super Dieselex-4, is made from 100 percent American crude oil that contains naturally high cetane. 

Q8:       What is CountryMark’s investment in alternative fuels, and what is its vision for this market?
A:         CountryMark has been on the forefront of biofuels, and especially crop-based products, since the late 1970s when “Gasohol” first came on the scene. In the early 1990s, CountryMark worked with the Indiana Soybean Board on soy biodiesel, and in 2002 we made soy biodiesel available. CountryMark was the first in the nation to implement metered blending of biodiesel at the terminal. In 2004, CountryMark was the first in the nation to implement terminal biodiesel rack injection, a process by which pure biodiesel is injected into the diesel stream as it is being loaded into the tanker. This computer-controlled blending process ensures a completely accurate and seamless biodiesel blend. Our local cooperatives have done a great job getting the product accepted by their customers, and today CountryMark is the largest blender of soy biodiesel in Indiana. Finally, it’s important to note that whether it is ethanol or soy biodiesel, we still hold these products to the stringent quality standards our customers have come to expect.

1 Appalachian and Illinois Basin Directors’ Report, in cooperation with the Interstate Oil and Gas Compact Commission and the U.S. Department of Energy Office of Fossil Energy and National Energy Technology Laboratory, 2005.
 

Contact:     Belinda Puetz, 317.238.8225