SURVEY QUESTIONNAIRE
	
	This questionnaire is being distributed to all participants specified
in House Resolution No. 174, H.D. 2, which requests the Legislative
Reference Bureau to provide the Legislature with useful information and
data from participants in the petroleum industry in Hawaii that the
Legislature may consider in formulating policies that protect the
short- and long-term interests of Hawaii's gasoline consumers. 
Specifically, the Legislature, under the terms of the resolution, seeks
to protect these consumers by ensuring the:  (1) lowest possible
gasoline prices; (2) availability of automotive services; and (3)
convenient access to retail gasoline outlets.  Please bear these
objectives in mind when responding to this questionnaire.
	
	As specified below, we are requesting that you complete this
questionnaire in three parts in order to expedite the completion of the
required report.  Part I should be completed by July 1, 1995; part II
should be completed by August 1, 1995; and part III should be completed
by September 1, 1995.  Specifically, we would appreciate receiving the
following:
	
	(A)  The name of your department, company, or other entity, address,
and the names, titles, and phone numbers of the persons responsible for
overseeing the completion of this questionnaire.
	
	(B)  The resolution states that "any person or entity consulted by
the Bureau may submit data, responses, arguments, or other statements
prepared by appropriate experts or consultants hired by those
individuals or entities ..." (page 2, lines 42 to 45).  If any
information or data has been supplied by any such expert or consultant,
please supply the names, titles, departments, companies, or other
entities, addresses, and phone numbers of those persons.
	
	(C)  Views, data, and other relevant information on each of the
topics specified in items (1) to (15) and (17) on pages 3 to 5 of the
resolution, as set forth below.  Please limit your comments
specifically to the items identified while bearing in mind the intent
of the resolution, i.e., to provide the Legislature with useful
information and data that it may consider in formulating policies to
protect the short- and long-term interests of Hawaii's gasoline
consumers.  For example, in responding to item no. (7) (the effects of
establishing a petroleum regulatory commission), please frame your
response in terms of whether you believe that establishing such a
commission will protect the interests of Hawaii's gasoline consumers in
terms of ensuring the lowest possible gasoline prices, the availability
of automotive services, and convenient access to retail gasoline
outlets, as appropriate, and your reasons why or why not, together with
supporting data if available.

	Also, in presenting this information and data, please adhere to the
following format and order:

       (i) Concisely state your salient points with respect to
           each numbered item at the outset in one or two
           paragraphs, if possible;

      (ii) Next, present clear and focused arguments, views, and
           information, as applicable, in support of your points
           for each item; and

     (iii) Next, provide data, preferably in the form of charts,
           graphs, or other aides, as appropriate.

	If reasonably possible, please limit your responses to no more than
five pages (double spaced) of text for each item, exclusive of data, to
prevent the report from becoming bogged down in too much detail. 
Miscellaneous supporting data and other information not specifically
relevant should be included as appendices.  If you do not have any
comment regarding an item, please state that you decline to comment on
that particular item and the reasons why.
	
	Please provide your response to or position concerning each of the
listed items by the date specified.
	
                    PART I - DUE JULY 1, 1995

     (1)  The effects of prohibiting franchise agreements from
          requiring franchisees to purchase all of their gasoline
          from the franchisor or restraining franchisees from
          dealing with the franchisors' competitors;

     (2)  The effects of limiting the amount of gasoline
          franchisors require franchisees to purchase from the
          franchisor;

     (3)  The effects of prohibiting gasoline allotment under
          exchange agreements on the basis of historical market
          share;

     (4)  Measures to ensure the lowest retail gasoline prices
          for the consumer in the short and long-term;

     (5)  Whether price inversion has occurred or is currently
          occurring in the distribution of gasoline in Hawaii;

     (6)  The effects of encouraging the establishment of a
          public bulk gasoline terminal facility, which could
          make the importation of gasoline cost effective and
          could also lead to a reduction in wholesale gasoline
          prices;

     (7)  The effects of establishing a petroleum regulatory
          commission having general supervision over all
          petroleum manufacturers and jobbers in the State with
          the authority to:

          (A)  Authorize new retail service stations and
               determine whether they may be operated by a
               petroleum manufacturer or jobber;

          (B)  Restrict price increases when prices rise above a
               certain percentage over a benchmark market, as
               determined by rules adopted by the commission
               under chapter 91;

          (C)  Decide when a petroleum manufacturer or jobber may
               convert a retail service station from one operated
               by a gasoline dealer to one operated by a
               petroleum manufacturer or jobber, and vice versa;

          (D)  Decide when a petroleum refiner may close a retail
               service station, to prevent communities from being
               underserved;

          (E)  Review management decisions of petroleum
               manufacturers and jobbers regarding
               infrastructure, strategic planning, and other
               areas to ensure market compliance; and

          (F)  Review profits for reasonableness in light of the
               need for petroleum utilities to promote a safe
               workplace and ensure environmental protection;

                  PART II - DUE AUGUST 1, 1995

     (8)  The effects of regulating retail gasoline prices of
          company-operated retail service stations;

     (9)  The effects of requiring manufacturers, terminal
          operators, and jobbers of petroleum products to file
          with the State, a tariff listing all prices at which
          the manufacturer or jobber offers goods or services for
          sale or lease;

    (10)  The effects of prohibiting any terminal operator having
          excess capacity from refusing to provide terminalling
          services to any person at the prices published in the
          tariff that the terminal operator filed with the State;

    (11)  The effects of prohibiting manufacturers of petroleum
          products not only from directly operating retail
          service stations, but also from franchising them or
          owning and leasing them to branded dealers
          (divestiture);

    (12)  The effects of establishing a public petroleum products
          storage authority with power to import, store, and
          market petroleum products;

                PART III - DUE SEPTEMBER 1, 1995

    (13)  The effects of active enforcement of the Petroleum
          Industry Information Reporting Act of 1991 and Act 291,
          Session Laws of Hawaii 1991 (codified as chapter 486I,
          Hawaii Revised Statutes);

    (14)  Measures that could be initiated to reduce the cost of
          conducting business for independent dealers (i.e.,
          lease rent and environmental regulations);

    (15)  The effects of the provision contained in section
          486H-10(a), Hawaii Revised Statutes, that allows
          manufacturers and jobbers to open one company operated
          retail service station for each dealer operated service
          station owned by that manufacturer or jobber, up to a
          maximum of two company owned retail service stations;
          ...

    (17)  Whether or not the existing moratorium has resulted in
          lower gasoline prices for consumers.

	Note:  Item (16) of the resolution, which asked whether laws in other
states prohibit or limit the number of retail service stations that may
be opened or operated by wholesalers, producers, or refiners of
petroleum products, or their subsidiaries, will be researched and
addressed by the Bureau in its report to the Legislature.

	(D)  Please feel free to make any other comments or remarks relating
to the matters discussed in the resolution that you believe should be
pointed out to the Legislature.
	
	NOTE:  For the purposes of this survey, the following words as used
in House Resolution No. 174, H.D. 2, are deemed to have the same
meanings as defined in section 486H-1, Hawaii Revised Statutes.  We
have set out the relevant definitions below:

     "Franchise" means:

     (1)  Any agreement or related agreements between a petroleum
          distributor and a gasoline dealer under which the
          gasoline dealer is granted the right to use a
          trademark, trade name, service mark, or other
          identifying symbol or name owned by the distributor in
          connection with the retail sale of petroleum products
          supplied by the petroleum distributor; or

     (2)  Any agreement or related agreements described in
          paragraph (1) and any agreement between a petroleum
          distributor and a gasoline dealer under which the
          gasoline dealer is granted the right to occupy the
          premises owned, leased, or controlled by the
          distributor, for the purpose of engaging in the retail
          sale of petroleum products supplied by the distributor.

	"Gasoline" includes gasoline, benzol, benzine, naphtha, and any other
liquid prepared, advertised, offered for sale, sold for use as, or used
for, the generation of power for the propulsion of motor vehicles,
including any product obtained by blending together any one or more
petroleum products with or without other products, if the resultant
product is capable of the same use.
	
	"Gasoline dealer" means any person engaged in the retail sale of
petroleum products in the United States under a franchise agreement
entered into with a petroleum distributor.
	
	"Jobber" means every wholesaler of petroleum products.
	
	"Manufacturer" means every producer or refiner of petroleum products
on January 1, 1992, or any subsidiary of that producer or refiner.
	
	"Motor vehicle fuel" means gasoline, diesel fuel, alcohol, and any
mixture of those fuels suitable for use in vehicles registered under
chapter 286.
	
	"Petroleum distributor" means any person engaged in the sale,
consignment, or distribution of petroleum products to retail outlets
that it owns, leases, or otherwise controls.
	
	"Petroleum products" includes motor vehicle fuel, residual oils
number 4, 5, and 6, and all grades of jet (turbo) fuel.
	
	"Purchase" means any acquisition of ownership.
	
	"Retail" means the sale of a product for purposes other than
resale.
	
	"Retail service station" means a place of business where motor
vehicle fuel is sold and delivered into the tanks of motor vehicles.

	"Sale" means any exchange, gift, or other disposition.

PLEASE SEND YOUR RESPONSES TO OR POSITIONS CONCERNING EACH OF
THE
RESPECTIVE ISSUES BY THE SPECIFIED DATE TO:

                   MARK ROSEN
                   LEGISLATIVE REFERENCE BUREAU
                   STATE CAPITOL
                   HONOLULU, HAWAII 96813

     Please call me at ******** if you have any questions.

                                 Sincerely yours,



                                 Mark Rosen
                                 Researcher

APPROVED:



Wendell K. Kimura
Acting Director

	Appendix D	Table of Contents