|
Midwest Gas Price Investigation - Investigation Likely To
Continue For At Least
|
By David C Skul
[Hits: 7182]
|
|
The Federal Trade Commission (FTC) issued an interim report toCongress on its investigation into Midwest gas price increasesthat was cited at the reasons that the FTC launched theinvestigation. It also provides a status report on thecontinuing investigation, including progress and a descriptionof the work not yet done. The report details the history of theprice spikes of reformulated gasoline (RFG) in the Midwesternpart of the country and how these increases caused Commissionstaff to initiate a preliminary investigation in June andprompted the Commission to begin a formal investigation duringthe latter part of July.
The report analyzes many conditions reported as potential causesof the gas price spikes -ranging from higher than normal crude oil prices, to theexpectation of compliance with EPA Phase II regulations forsummer-blend reformulated gasoline in high-ozone urban areas, tothe damage to the critically important Explorer pipeline duringMarch. However, the report says that "although it is likely thateach of these supply factors contributed to the dramatic recentprice spikes in the Midwest, no single factor appears fromstaff's preliminary investigation to be likely to provide a fullexplanation, and staff does not yet have sufficient informationto assess the impact of these factors in combination."
In accordance with the report, Commission staff is investigating"the possibility of collusion or tacit coordination, conductthat could be illegal under Section 5 of the Federal TradeCommission Act." Due to the abundance of potential interwovencauses as well as the monstrous amount of evidential informationbeing collected for the course of the investigation, the reportalso states that "this investigation is likely to consume, at aminimum, another three or four months."
The report shows that on June 29, Commission staff issued thefirst round of subpoenas to the nine refiners that currentlysupply the Midwestern markets and that within the month, staffhas accepted and logged approximately 200 boxes ofdocumentation. Around mid August, most documents requested fromthe first round of subpoenas will be delivered to the Commissionoffices. The Commission also issued a second round of subpoenasto other refiners last week, and has issued Civil InvestigativeDemands (CIDs) to the refiners recently, requesting that therefiners compile data and answers to all of the Commissionswritten questions. Commission staff issued another set ofsubpoenas on July 25 to the entities that own or control the gastransportation pipelines serving the Midwest markets of theUnited States. Documents from that set of subpoenas are expectedto begin arriving shortly at Commission offices. The reportfurther details the Commission's plan to conduct a series of indepth interviews as part of the investigation. Staff has alreadyconducted nearly 15 interviews with market participants,consumers, corporate consumers and many others with knowledge ofinvestigation relevant information, and continues the process ofcapturing pertinent industry-wide data from the Oil PriceInformation Service (OPIS). After the documentary evidence hasbeen reviewed and analyzed, staff will take depositions underoath of key participating personnel throughout the gasolinedistribution chain in the Midwest United States.
Federal Trade Commission staff will also coordinate all of theinvestigative efforts with the Attorney General of Michigan,Ohio, Wisconsin, Illinois, Iowa, Minnesota, Kentucky, SouthDakota, Indiana, Missouri, and West Virginia.
This article and one-waylink advertisement provided by LinkAcquire.com
|
|
|
|
|
|
