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MODEL LETTER TO SEVERAL MAJOR REFINERS CONCERNING REFORMULATED GASOLINE AND ENERGY

Release Date: 06/08/2000
Contact Information:

Attached is a model letter that went out today to several major refiners concerning reformulated gasoline and energy. The letter is signed by Robert Perciasepe, EPA's Assistant Administrator for Air and Radiation, and Melanie Kenderdine, Acting Director of the Department of Energy's Office of Policy.


R-86 # # #

Don Althoff
Vice President
BP AMOCO
Via Fax

Dear Mr. Althoff:

We are writing to invite you to meet with us to discuss gasoline price and supply issues in the Midwest. Consumers in the Chicago and Milwaukee metropolitan areas are extremely concerned about the unusually high prices of gasoline. We share those concerns. In no other areas of the country using cleaner burning reformulated gasoline (RFG) have we seen comparable increases. Environmental Protection Agency (EPA) and Department of Energy (DOE) staff have spoken to representatives of your company, as well as other Midwest refiners. We have heard a consistent message from refiners that the supply of fuel is adequate to meet demand. We want to ensure that consumers are being fully protected.

Over the past week, gasoline prices have continued to climb and there are inexplicable price differentials between RFG and conventional gasoline especially considering the modest difference in the relative cost of producing RFG as compared to conventional gasoline. In order to help us address our concerns about why both conventional and RFG prices are higher in the Midwest than elsewhere in the country and why the differential is also greater given the modest cost and adequate supply, we invite you to meet with us as soon as possible at EPA headquarters in Washington, DC. We are sending a similar invitation to each gasoline refiner that supplies RFG to the the Chicago and Milwaukee areas.

It is our intention to have a general discussion on these matters with representatives of all invited refiners. We will also make time for individual refiners to meet with us to share certain refiner-specific information, such as RFG production costs.

We are sure you understand the importance of these discussions given the severe impact on consumers and the need to have the meeting with such short notice. We have rearranged our schedules and hope you can do the same. If you have any questions, please call Don Zinger of EPA at 202-564-1682. We look forward to having a productive meeting with you and your colleagues.

Sincerely,



Robert Perciasepe Melanie Kenderdine
Assistant Administrator Acting Director
Office of Air and Radiation Office of Policy
Environmental Protection Agency Department of Energy