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Statement of-Continued

Martin, Drex R., general manager, marketing-business resources,
Shell Oil Co....

Page

491

Merlis, Edward A., staff, Senate Commerce Committee.
Minotti, A. M., senior counsel, legal department, Shell Oil Co....
Moss, Hon. Frank E., a U.S. Senator from the State of Utah.
Oden, T. J., executive director and general counsel, Independent
Gasoline Marketers Council__.

72

491

72

149

Phillips, Robert, president, Vickers Petroleum Corp., Wichita, Kans. 280, 288 Rhodes, Hon. John J., a Representative in Congress from the State of Arizona

75

Roper, John Dee, vice president, Koch Refining Co., Wichita, Kans. 280, 285
Shipley, Charles, member, legislative committee, National Congress
of Petroleum Retailers-

76

Sigler, Thomas W., senior vice president, North American operations,
Continental Oil Co..

434

Smith, Gorman C., Assistant Administrator, Regulatory Programs,
Federal Energy Administration____

Spillers, Ron, general counsel, Autronic Systems, Houston, Tex., on
behalf of Independent Gasoline Marketers Council.

Steffen, D. T., counsel, Standard Oil Co. of California, Western
Operations, Inc....

Taigen, Lou, vice president, retail sales, Standard Oil Co. of California,
Western Operations, Inc...

248

149

344

344, 359

Thomas, W. J., vice president/marketing, Rock Island Refining Corp.,
Indianapolis, Ind.

Walcutt, Dean, president, Certified Oil Co., Columbus, Ohio, on behalf
of Independent Gasoline Marketers Council and Society of Inde-
pendent Gasoline Marketers of America (SIGMA).

Additional material submitted for the record by

280

149, 316

280, 281

Winkler, Elmer L., president, Rock Island Refining Corp., Indianapolis, Ind...

Continental Oil Co., "Time for Compromise," speech by Thomas W. Sigler, vice president, marketing, at Indiana Oil Marketers fall convention, September 17, 1975

[blocks in formation]

Response to question regarding suppliers retailing gasoline at
lower price than price they charge their lessee dealers.
Responses to questions posed during hearings.
Retail investigatory time..

Federal Trade Commission, letter dated June 1, 1976, from Owen M.
Johnson, Jr., Director of Bureau of Competition, to Chairman
Dingell, supplying additional information requested regardiig
alternative legislative language; length of dealer leases; and
arbitration...

Gulf Oil Co., statement..

Independent Gasoline Marketers Council, Petroleum Market Shares, historical report on refiners and importers of motor gasoline, 1972 through 1974, Federal Energy Administration publication FEA/ B-75/616, October 1975---

276

278

277

427

557

159

Independent Terminal Operators Association:

Membership breakdown...

535

Suggestions for improving regulations relating to allocations and
price regulation

537

Interstate and Foreign Commerce Committee:
Standard Oil v. Federal Trade Commission_.

405

The Robinson-Patman Act: A Misguided Response to the A. & P., remarks by Jonathan C. Rose, Acting Deputy Assistant Attorney General, Antitrust Division, Department of Justice.. Koch Refining Co., letter dated May 12, 1976, from John Dee Roper, vice president, government relations, to Chairman Dingell, expressing opposition to Conoco's "Time for Compromise" statement.

420

293

Additional material submitted for the record by-Continued

Laborers' International Union of North America, AFL-CIO, CLC,
statement of Angelo Fosco, general president___.
McDonald, Leroy, St. Louis, Mo., statement...

Page

559

590

Marathon Oil Co., statement..

561

Maryland, State of, statement of Louis L. Goldstein, State comptroller...

567

Mobil Oil Corp., statement __

572

National Association of Texaco Consignees, Inc., letter dated May 1,
1976, from Fred B. Causey, executive director and counsel, to
Chairman Dingell....

National Association of Truck Stop Operators, statement of Howard
Roe, chairman, government affairs committee__.
National Congress of Petroleum Retailers, letters and documents
concerning pricing practices affecting branded service station
dealers..

Shell Oil Co., letter dated May 29, 1976, from Drex R. Martin, general
manager, marketing-business resources, to Chairman Dingell,
elaborating on terms "bankruptcy" and "insolvency" as used in
proposed revision of sec. 102(1)(C) of H.R. 13000.......

Society of Independent Gasoline Marketers of America (SIGMA), memorandum of FEA on policy regarding firms entering the marketing of petroleum products.

Standard Oil of Indiana (Amoco):

Proposed draft of Petroleum Marketing Practices Act-

Statement of dealer policy_

Texaco, Inc., statements..

Turner, Bob, dealer, statement-.

591

579

83

510

321

334

336

581, 584, 586

591

347

Union Oil Co. of California, Union 76 Division, examples for lease termination___.

ORGANIZATIONS REPRESENTED AT THE HEARINGS

Ashland Oil, Inc.:

Drogula, Fred, counsel, Ashland Petroleum Co.

Luellen, Charles J., group vice president, Ashland Petroleum Co. Atlantic Richfield Co.:

Babikian, George H., vice president, products division, retail marketing. Kowal, J. D., general counsel.

Cities Service Co., John H. Dewell, vice president, Citgo Retail Marketing. Continental Oil Co., Thomas W. Sigler, senior vice president, North American operations.

Federal Energy Administration:

Hill, John A., Deputy Administrator.

Smith, Gorman C., Assistant Administrator, Regulatory Programs.

Federal Trade Commission:

Foer, Albert A., Assistant to Director, Bureau of Competition.
Johnson, Owen M., Jr., Director, Bureau of Competition.

Independent Gasoline Marketers Council:

Oden, T. J., executive director and general counsel.

Spillers, Ron, general counsel, Autronic Systems, Houston, Tex.
Walcutt, Dean, president, Certified Oil Co., Columbus, Ohio.

Independent Terminal Operators Association, William C. Lane, assistant general counsel.

Koch Refining Co., Wichita, Kans., John Dee Roper, vice president.

National Congress of Petroleum Retailers:

Binsted, Charles L., executive director.

Cohen, Jerry, general counsel.

Haskell, Lewis, president.

Shipley, Charles, member, legislative committee.

National Oil Jobbers Council:

Amori, Robert, chairman, brand chairmen committee.

Bassman, Robert S., counsel.

Rock Island Refining Corp.; Indianapolis, Ind.:

Thomas, W. J., vice president/marketing.

Winkler, Elmer L., president.

ORGANIZATIONS REPRESENTED AT THE HEARINGS-Continued

Shell Oil Co.:

Martin, Drex R., general manager, marketing-business resources.
Minotti, A. M., senior counsel, legal department.

Society of Independent Gasoline Marketers of America (SIGMA), Dean Walcutt, director.

Standard Oil Co. of California, Western Operations, Inc.:

Steffen, D. T., counsel.

Taigen, Lou, vice president, retail sales.

Standard Oil of Indiana (Amoco):

Curtis, Kenneth E., vice president of marketing.

Keating, M. J., assistant general counsel.

Standard Oil Co. (Ohio), Griffin, Robert G., vice president, marketing.

Union Oil Co. of California, Joseph Byrne, Ph. D., vice president, operations coordination, Union 76 Division.

Vickers Petroleum Corp., Wichita, Kans.:

Casey, Robert, Jr., counsel.

Grueskin, Harold, vice president.

Phillips, Robert, president.

PETROLEUM MARKETING PRACTICES

TUESDAY, APRIL 13, 1976

HOUSE OF REPRESENTATIVES,

SUBCOMMITTEE ON ENERGY AND POWER,

COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE,

Washington, D.C. The subcommittee met at 1:30 p.m., pursuant to notice in Room 2123, Rayburn House Office Building, Hon. John D. Dingell, chairman, presiding.

Mr. DINGELL. The subcommittee will come to order.

Today's hearing marks the beginning of consideration by the Subcommittee on Energy and Power of legislation designated to address petroleum marketing problems. Today the subcommittee will hear from witnesses on behalf of the independent sector of the petroleum industry-retail dealers, jobbers, and non-branded independent marketers. Following the Easter recess the subcommittee will resume these hearings and receive testimony from representatives of the Federal Energy Administration, the Federal Trade Commission, both major oil companies and independent refiners, and other interested parties.

The bills before the subcommittee address three principal marketing problem areas-franchise protection of branded dealers; forward integration of refiners into marketing through predatory pricing practices; and disclosure of gasoline octane information to con

sumers.

The fact that these problem areas exist is well documented in hearings before congressional committees and in agency proceedings of the Federal Energy Administration and the Federal Trade Commission. It should not, in my opinion, be necessary to repeat for the record here the numerous examples of marketing abuses which require enactment of this legislation. It is sufficient for the subcommittee to notice those hearings and proceedings for purposes of assuring that this legislation addresses itself to the needs of the marketplace.

It is appropriate to observe that the subcommittee's consideration of this matter now takes on added significance in light of the prospect that the President will propose to remove gasoline and other products from Federal allocation and price controls. The timing of any such proposal is, of course, of critical significance to any congressional review and evaluation of it. In my view, an essential precondition to any consideration of the removal of price and allocation controls on gasoline is the existence of adequate market safeguards to protect distributors and consumers.

The bill, H.R. 13000, is one such essential safeguard. It is designed to protect the supply relationships of franchised distributors and dealers and to guard against predatory pricing practices by refiners. By aiding fair competition and providing meaningful information to consumers regarding the antiknock characteristics of gasolines, this bill represents an important step in consumer protection legislation.

[The texts of H.R. 13000, H.R. 612, H.R. 5663, H.R. 10070, H.R. 12712, and S. 323, and all identical bills follow:]

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