Shell appeals
gas cap ruling

The oil company seeking
the law's reversal goes to court
over a July PUC order

For the second time in as many weeks, Shell Oil Co. has gone to court challenging the state's gasoline price cap law, arguing that the Public Utilities Commission's implemented the law over objections from oil companies and against the recommendations of its own consultant.

Shell last week submitted a petition to the Supreme Court through the PUC, seeking to have the law reversed. The company said its appeal filed yesterday in Circuit Court of a July PUC ruling was done so because of the "unique nature" of the case.

Lisa Kikuta, chief researcher at the PUC, said the commission had not received the most recent filing yesterday afternoon. The PUC typically does not comment on pending matters.

Shell, Chevron USA Inc., Tesoro Hawaii Corp. and the Hawaii Petroleum Marketers Association had asked the PUC in July to delay implementation of the price-cap law to allow further study of the state's gasoline market.

The commission rejected all arguments, saying some were "incomplete and too unclear," and others "did not meet the burden of showing that the commission's decision is unreasonable, unlawful and erroneous."

Shell has said it will comply with the law as it pursues legal action to have it repealed.

Meanwhile, the commission granted oil companies, the marketers association and other industry officials a one-month extension on a deadline to provide reports showing they are in compliance with the gas cap law.

The commission on Sept. 12 had asked manufacturers, wholesalers and jobbers to submit reports showing they were in compliance with the law. Officials were seeking information including prices charged and volumes sold.

Reports were due this week Monday, but oil companies asked for an extension, saying they needed additional time to prepare the reports.

In letters to the commission, oil companies also noted that the information being sought was proprietary information containing trade secrets that could fall into the hands of their competitors.

Albert Chee, a spokesman for Chevron in Honolulu, said the extension was needed to work out a protective order to ensure confidentiality.

"We have no objection to the request," Chee said. "We intend to continue to be cooperative, but our concern right now is that we be able to cooperate with the right level of protection."

In a letter to oil companies, PUC Chairman Carlito Caliboso said only that the commission found "good cause" to grant the extension until Oct. 17. The commission also changed the reporting period to a monthly basis, as opposed to weekly.

House Majority Leader Marcus Oshiro (D, Wahiawa-Poamoho) criticized the decision, saying the commission should require the information to ensure that oil companies are complying with the law.

GAS CAP HELP How to contact the state about Hawaii's gas cap law: Public Utilities Commission www.hawaii.gov/budget/puc/gaspricecaps Commerce and Consumer Affairs www.gascap.hawaii.gov Hotlines for consumers: 586-2769, on Oahu; (800) 830-4295, toll-free, from neighbor islands. Business, Economic Development & Tourism www.hawaii.gov/dbedt/ert/gasoline/gasoline.html Hotline for owners and operators of gas stations: 586-2752 E-mail: gasoline@dbedt.hawaii.gov AAA Fuel Gauge Report: www.fuelgaugereport.com