1. INTRODUCTION...............................................1
   • Survey Participants...................................3
   • Methodology, Organization, and Focus of Study.........4
   • Use of Terms..........................................6
   • Additional Terms Defined..............................8
   • Scope of Study.......................................10
   • Endnotes.............................................11

2. PETROLEUM INDUSTRY, GENERALLY.............................15
   • Vertical Integration.................................15
   • Oligopolies..........................................18
   • Gasoline Retailing...................................20
   • Oil and Gasoline Prices..............................22
   • Federal Legislation..................................25
   • Endnotes.............................................26

3. PETROLEUM INDUSTRY IN HAWAII..............................33
   • Hawaii's Dependence on Oil...........................33
   • Hawaii's Gasoline Industry...........................35
   • Changing Market Conditions...........................36
   • Gasoline Prices in Hawaii............................38
   • Hawaii Legislation...................................40
   • Endnotes.............................................43

4. OPEN SUPPLY...............................................54
   • State Government.....................................54
   • Gasoline Dealers.....................................55
   • Jobbers..............................................56
   • Oil Companies........................................57
   • Discussion...........................................61
   • Endnotes.............................................65

5. EXCHANGE AGREEMENTS.......................................72
   • State Government.....................................72
   • Gasoline Dealers.....................................73
   • Jobbers..............................................73
   • Oil Companies........................................74
   • Discussion...........................................74
   • Endnotes.............................................77

6. RETAIL GASOLINE PRICES....................................79
   • State Government.....................................79
   • Gasoline Dealers.....................................79
   • Jobbers..............................................80
   • Oil Companies........................................81
   • Discussion...........................................82
   • Endnotes.............................................84

7. PRICE INVERSIONS..........................................86
   • State Government.....................................86
   • Gasoline Dealers.....................................86
   • Jobbers..............................................86
   • Oil Companies........................................87
   • Discussion...........................................87
   • Endnotes.............................................89

8. PUBLIC TERMINAL FACILITY AND STORAGE AUTHORITY............92
   • State Government.....................................92
   • Gasoline Dealers.....................................93
   • Jobbers..............................................94
   • Oil Companies........................................95
   • Discussion...........................................98
     • Regional Petroleum Reserve......................99
     • Commerce Clause Implications...................100
   • Endnotes............................................101

9. PETROLEUM REGULATORY COMMISSION..........................105
   • State Government....................................105
   • Gasoline Dealers....................................107
   • Jobbers.............................................107
   • Oil Companies.......................................109
   • Discussion..........................................114
   • Endnotes............................................116

10. PRICE CONTROLS...........................................123
    • State Government....................................123
    • Gasoline Dealers....................................124
    • Jobbers.............................................124
    • Oil Companies.......................................125
    • Discussion..........................................127
      • Price Controls.................................127
      • Below-Cost Sales and Minimum-Markup Laws.......128
      • Equal Protection...............................130
    • Endnotes............................................132

11. TARIFFS AND TERMINALLING.................................141
    • State Government....................................141
    • Gasoline Dealers....................................142
    • Jobbers.............................................143
    • Oil Companies.......................................144
    • Discussion..........................................148
      • Price Discrimination...........................148
      • Public Utility Regulation......................148
      • Eminent Domain.................................149
    • Endnotes............................................150

12. DIVESTITURE..............................................156
    • State Government....................................156
    • Gasoline Dealers....................................158
    • Jobbers.............................................158
    • Oil Companies.......................................159
    • Discussion..........................................160
    • Endnotes............................................164

13. PETROLEUM INDUSTRY INFORMATION REPORTING.................168
    • State Government....................................168
    • Gasoline Dealers....................................169
    • Jobbers.............................................170
    • Oil Companies.......................................170
    • Discussion..........................................172
    • Endnotes............................................175

14. INDEPENDENT DEALERS......................................181
    • State Government....................................181
    • Gasoline Dealers....................................182
    • Jobbers.............................................182
    • Oil Companies.......................................183
    • Discussion..........................................185
      • Environmental Regulations......................185
      • Lease Rent.....................................188
    • Endnotes............................................190

15. RETAIL DIVORCEMENT.......................................196
    • State Government....................................196
    • Gasoline Dealers....................................197
    • Jobbers.............................................198
    • Oil Companies.......................................200
    • Discussion..........................................202
    • Divorcement Laws of Other Jurisdictions........202
    • State Reports..................................206
    • Arguments For and Against Divorcement..........209
    • Predatory Pricing..............................210
    • Independent Dealers............................212
    • Endnotes............................................213

16. ALTERNATIVES TO REGULATION...............................225
    Part I
    • Regulatory Framework............................225
    • Justifications for Regulation.......................225
    • Alternatives to Regulation..........................227
    • Matches of Regulatory Ends and Means................229
    Part II
    • Application of Framework.......................230
    • Justifications for Regulation.......................230
    • Additional Factors..................................232
    • Energy Policy.......................................232
    • Equity Considerations...............................234
    • Political Considerations............................235
    • Regulatory Options..................................237
    • Alternatives to Regulation..........................238
    • Conclusion...............................................250
    • Endnotes.................................................255

A. House Resolution No. 174, H.D. 2 (1995)..................282

B. Contact Persons..........................................287

C. Survey Questionnaire.....................................291

D. Act 295, Session Laws of Hawaii 1991.....................296

E. Act 329, Session Laws of Hawaii 1993.....................298

F. Act 238, Session Laws of Hawaii 1995.....................301

G. Chapter 486E, HRS (Fuel Distribution)....................303

H. Chapter 486H, HRS (Gasoline Dealers).....................306

I. Chapter 486I, HRS (Petroleum Industry Information Reporting)...312

J. Letter from DBEDT dated October 18, 1995.................318

K. Chevron's Exhibits 2 and 3 (image files).................321

L. Bibliography.............................................324

	Table of Contents	Chapter 1	Studies and Reports