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Author Archives: Mike Fox

Diversion of state gas tax funds puts gas station owners in jeopardy!

Published: Saturday, February 18, 2012
By Luther Turmelle, North Bureau Chief
lturmelle@nhregister.com / Twitter: @lutherturmelle

Connecticut lawmakers have until the end of the current legislative session to fix a problem with the state’s underground fuel tank cleanup program, or risk having federal environmental regulators cease recognizing it as a viable alternative to self-insurance for service station owners. Continue Reading…

ATTORNEY GENERAL POSTED GOUGING LAW GOES INTO AFFECT!

(HARTFORD) – Pursuant to Section 4 of Senate Bill 457, which was signed into law and became effective on April 3, 2012, the Attorney General hereby gives notice of an abnormal disruption in the market for energy resources. In accordance with Section 4 of Senate Bill 457, the inception date of the abnormal market disruption is Tuesday, April 3, 2012, at 12:00 p.m., and the end date is 11:59 p.m. on July 2, 2012. As used herein, “energy resources” and “abnormal market disruption” shall be defined as set forth in Conn. Gen. Stat. § 42-234, as amended by Senate Bill 457.

ATTORNEY GENERAL EXTENDS NOTICE OF REASONABLE ANTICIPATION OF IMMINENT ABNORMAL DISRUPTION IN MARKET FOR ENERGY RESOURCES

Due to Hurricane Irene’s continuing potential to affect fuel distribution and sale in the State of Connecticut, the Attorney General extends the notice issued on August 26, 2011, pursuant to Conn. Gen. Stat. § 42-234(d), of the reasonable anticipation of an imminent abnormal disruption in the market for energy resources. The end date of the imminent abnormal market disruption is extended to 5:00 pm on September 6, 2011. This end date is subject to further amendment as circumstances dictate. The full text of the amended notice is as follows:

AMENDED NOTICE OF REASONALBE ANTICIPATION OF IMMINENT ABNORMAL DISRUPTION IN MARKET FOR ENERGY RESOURCS

In light of anticipated impacts of Hurricane Irene on the State of Connecticut, the Attorney General hereby gives notice pursuant to Conn. Gen. Stat. § 42-234(d) of the reasonable anticipation of an imminent abnormal disruption in the market for energy resources. For purposes of this notice, the inception date of the imminent abnormal market disruption is August 26, 2011 at 1:00 pm, and the end date is 5:00 pm on September 6, 2011. The end date of the imminent abnormal market disruption is subject to amendment by further notice. As used herein, “energy resources” and “abnormal market disruption” shall be defined as set forth in Conn. Gen. Stat. § 42-234(a)(1) and § 42-234(a)(3), respectively.

See Conn. Gen. Stat. Conn. Gen. Stat. § 42-234.

Connecticut Gasoline Gouging Law!

Sec. 42-234. Abnormal market disruptions and prices of energy resources. Definitions. Unconscionably excessive price prohibited. Attorney General notice re abnormal market disruption. Ability of Commissioner of Consumer Protection or courts to establish acts or practices as unfair or unconscionable not limited. (a) As used in this section:

(1) “Energy resource” shall include, but not be limited to, middle distillate, residual fuel oil, motor gasoline, propane, aviation gasoline and aviation turbine fuel, natural gas, electricity, coal and coal products, wood fuels and any other resource yielding energy;

(2) “Seller” shall include, but not be limited to, a supplier, wholesaler, distributor or retailer involved in the sale or distribution in this state of an energy resource;

(3) “Abnormal market disruption” refers to any stress to an energy resource market resulting from weather conditions, acts of nature, failure or shortage of a source of energy, strike, civil disorder, war, national or local emergency, oil spill or other extraordinary adverse circumstance;

(4) “Margin” means, for each grade of product sold, the percentage calculated by the following formula: One hundred multiplied by a fraction, the numerator of which is the difference between the sales price per gallon and the product price per gallon and the denominator of which is the product price per gallon. For purposes of this subdivision, “product price per gallon” includes all applicable taxes;

(5) “Notice” means a posting made by the Attorney General pursuant to subsection (d) of this section announcing the inception and end date of any abnormal market disruption or the reasonable anticipation of any imminent abnormal market disruption. (b) No seller during any period of abnormal market disruption or during any period in which an imminent abnormal market disruption is reasonably anticipated shall sell or offer to sell an energy resource for an amount that represents an unconscionably excessive price.

(c) Evidence that (1) the amount charged represents a gross disparity between the price of an energy resource that was the subject of the transaction and the price at which such energy resource was sold or offered for sale by the seller in the usual course of business immediately prior to (A) the onset of an abnormal market disruption, or (B) any period in which an imminent abnormal market disruption is reasonably anticipated, and (2) the amount charged by the seller was not attributable to additional costs incurred by the seller in connection with the sale of such product, shall constitute prima facie evidence that a price is unconscionably excessive. (d) The Attorney General shall post a notice on the home page of the Internet web site of the office of the Attorney General announcing the inception and end date of any abnormal market disruption or the reasonable anticipation of any imminent abnormal market disruption.

(e) Notwithstanding the provisions of subsections (b) and (c) of this section, it shall not be a violation of this section if a seller sells or offers to sell motor gasoline during an abnormal market disruption or any period in which an imminent abnormal market disruption is reasonably anticipated if the seller’s average margin for such motor gasoline during the longer of the following: (1) Any such period of abnormal market disruption or imminent abnormal market disruption, or (2) thirty days following the date notice was provided by the Attorney General pursuant to subsection (d) of this section, is not greater than such seller’s maximum margin on the sale of such motor gasoline during the ninety-day period prior to the onset of the abnormal market disruption or period in which an imminent abnormal market disruption is reasonably anticipated.

(f) This section shall not be construed to limit the ability of the Commissioner of Consumer Protection or the courts to establish certain acts or practices as unfair or unconscionable in the absence of abnormal market disruptions.

(Oct. 25 Sp. Sess. P.A. 05-2, S. 10; Oct. 25 Sp. Sess. P.A. 05-4, S. 3; P.A. 10-176, S. 2.)

History: Oct. 25 Sp. Sess. P.A. 05-2 effective October 31, 2005; Oct. 25 Sp. Sess. P.A. 05-4 amended Subsec. (a)(3) to make a technical change, effective December 1, 2005; P.A. 10-176 amended Subsec. (a) to add Subdivs. (4) and (5) defining “margin” and “notice”, added new Subsec. (d) re Attorney General posting notice, added Subsec. (e) re average margin for sales or offers that are not a violation of section and redesignated existing Subsec. (d) as Subsec. (f), effective July 1, 2010.
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Sec. 42-234a. Abnormal market disruptions and prices of energy resources: Civil actions by Attorney General; unfair trade practice. (a) The Attorney General, upon referral by the Commissioner of Consumer Protection, may bring a civil action in the superior court for the judicial district of Hartford against any person who violates any provisions of section 42-234 to recover a civil penalty of not more than ten thousand dollars per violation and such equitable relief as the court deems appropriate.

(b) The Attorney General, upon referral by the Commissioner of Consumer Protection, may bring a civil action in the superior court for the judicial district of Hartford against any person who knowingly violates any provision of section 42-234 to recover a civil penalty of not more than ten thousand dollars per violation, double damages and such equitable relief as the court deems appropriate.

(c) Notwithstanding the provisions of this section, any violation of section 42-234 shall be deemed to be an unfair trade practice within the provisions of chapter 735a.

Hurricane Irene – What to do with Gasoline Deliveries!

August 25, 2011

Blast Email – Fax Communication Re: Gasoline Deliveries during Hurricane!

With the pending hurricane on the way the CT DOT has requested that all Distributors fill gasoline tanks! This will require a waiver for hours on the road and the ICPA along with GASDA has requested the DOT & DMV to grant this wavier!

With that said, as we all know the storm my come or the storm may not come and if it comes you most likely will sell the extra gas and if it does not come you most likely will not and then you will have draft issues. Our suggestion is to call your supplier NOW and work out these issues in advance. Communicate on the phone and follow up with emails if they say Yes to delayed drafts!

Also WATCH YOUR FILLS FOR WATER! Get water paste NOW do not wait! Check your tanks daily with water paste as is REQURIED by law. Do not think if your fills caps are not put back on tight by the delivery driver that you will not be responsible for the water in your tanks. We have seen this before! Get Veeder Route copies now showing zero water in your tanks! Check after ever single deliver no matter what time of the day or night it comes and if you get more than 1 inch of water after a delivery report it ASAP which means right after the delivery, not the next day after you have sold hundreds of gallons of possibly contaminated product to consumers! Sorry to tell you but it is your RESPONSIBILITY to make sure contaminated product does not get pumped into your customers’ cars NO MATTER how it gets into the tanks!! Your fault or not your fault! Why you have water alarms now and that is what they are for!

Here is what we see – during heavy rain storms delivery drivers are human – they do not always put the caps back on and seal them. Heavy rain goes into your fill area and the caps pop off, water goes into the tanks, the next day after the rain has stopped, dealers go and look and no water or the water is below the fill because it has already gotten into the tanks!! Tell your employee’s to call you ASAP is a water alarm goes off and check it out then – even if at 3AM!! These are all suggestions on how to avoid issues with the pending storm and while they are a pain, following them will be much less of a pain if you get water in your tanks and pumped into your customers’ cars. Have seen this before and it is no fun!!

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