266. Letter to researcher from Ted Gamble Clause, Deputy Attorney
     General, Department of the Attorney General, dated July 21,
     1995, at 2-3.

267. Letter from John Tantlinger, Ed.D., Energy Planner for the
     Department of Business, Economic Development, and Tourism,
     to Wendell K. Kimura, Director, Legislative Reference
     Bureau, dated June 13, 1995, at 2.

268. Letter to researcher from Richard C. Botti, Executive
     Director of the Hawaii Automotive & Retail Gasoline Dealers
     Association, dated July 1, 1995, at 3.

269. Letter to researcher from Alec McBarnet, Jr., Vice
     President, Hawaii Petroleum Marketers Association, dated
     July 7, 1995, at 2-3.

270. Letter to researcher from Jennifer A. Aquino, Administrative
     Manager, Aloha Petroleum, Ltd., dated September 21, 1995, at
     2-3 (emphasis in original).

271. Letter to researcher from R. A. Broderick, Western Region
     Business Manager, Shell Oil Products Company, dated June 30,
     1995, at 4-5.

272. United States, General Accounting Office, Energy Security
     and Policy:  Analysis of the Pricing of Crude Oil and
     Petroleum Products (Washington, DC:  March 1993)
     (hereinafter, "GAO (1993)") at 55.

273. Letter to Wendell K. Kimura, Director, Legislative Reference
     Bureau, from Susan A. Kusunoki, Manager of State
     Governmental Activities, BHP Hawaii Inc., dated July 18,
     1995, at 1-2.

274. Id. at 3.

275. Letter from J. W. McElroy, Regional Manager, Chevron U.S.A.
     Products Co., to Wendell K. Kimura, Director, Legislative
     Reference Bureau, dated August 7, 1995, at 3.  Chevron's
     Exhibit 2 is appended to this report in Appendix K.

276. GAO (1993) at 4.

277. Id. at 55.

278. See generally Hawaii, Department of the Attorney General,
     The Attorney General's 1994 Interim Report on the
     Investigation of Gasoline Prices (Honolulu:  1994)
     (hereinafter, "AG (1994)") at i, 2-13; Hawaii, Department of
     the Attorney General, An Investigation of Gasoline Prices in
     Hawaii:  A Preliminary Report (Honolulu:  September 1990)
     (hereinafter, "AG (1990)") at 7-13.

279. AG (1994) at 16.

280. For example, a recent survey of gasoline prices in Honolulu
     found the lowest self-service cash price for regular
     unleaded gasoline to be $1.499 per gallon, while the
     national average price for regular unleaded gasoline was
     $1.178 per gallon.  "Prices at the Pump", Honolulu Star-
     Bulletin, September 5, 1995, at D-1.  Honolulu stations
     surveyed were in the general area bordered by King, McCully,
     Beretania, and Pensacola Streets, and one on Queen Street.

281. AG (1994) at 13.

282. Nancy D. Yamaguchi and David T. Isaak, Hawaii and the World
     Oil Market:  An Overview for Citizens and Policymakers
     (Honolulu:  East-West Center Energy Program, August 1990) at
     82:  "Whether or not there are any anticompetitive practices
     in the Hawaii oil industry, (and, as we have noted earlier,
     none have been proven), the importance to government in
     monitoring the situation has been undervalued."  The
     Department of Business, Economic Development, and Tourism
     has also noted that "no evidence of anticompetitive behavior
     was reported by the Attorney General in two separate reports
     on this investigation" of petroleum pricing in Hawaii.
     Letter from John Tantlinger, Ed.D., Energy Planner,
     Department of Business, Economic Development, and Tourism,
     to Wendell K. Kimura, Acting Director, Legislative Reference
     Bureau, dated June 13, 1995, at 1.

283. See Walter Miklius and Sumner J. LaCroix, Divorcement
     Legislation and the Impact on Gasoline Retailing in the
     United States and Hawaii (Honolulu:  University of Hawaii,
     January 20, 1993) at 7; see also chapter 15 for a discussion
     of predatory pricing.

284. Alan Stone, Regulation and its Alternatives (Washington, DC:
     Congressional Quarterly Press, 1982) at 55-59.

285. Nancy D. Yamaguchi and David T. Isaak, Hawaii and the World
     Oil Market:  An Overview for Citizens and Policymakers
     (Honolulu:  East-West Center Energy Program, Aug. 1990) at
     56.

286. See id. at 58.

287. See notes 47 to 60 and accompanying text in chapter 16 for a
     discussion of energy policy issues.

288. Yamaguchi and Isaak (1990) at 59.  The imposition of motor
     fuel taxes and other legislative measures to reduce gasoline
     consumption is discussed further in chapter 16.

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