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For Immediate Release:  
For Further Information Contact:
April 27, 2006

Office of The Attorney General
- Zulima V. Farber, Attorney General
Division of Consumer Affairs
- Kimberly Ricketts, Director

 

Kara Wood
973-504-6327

 

Attorney General Announces Settlement with Motiva Shell

NEWARK – Motiva Enterprises LLC (“Motiva”), which operates Shell gas stations throughout New Jersey, has voluntarily settled a lawsuit filed by the State of New Jersey in September 2005 that alleged violations of the New Jersey Motor Fuels Act, including multiple price increases within a 24-hour period, Attorney General Zulima V. Farber and Consumer Affairs Director Kimberly Ricketts announced today.

In settling the lawsuit, Motiva agreed to pay New Jersey $371,000 and adhere to state law regarding the pricing of gasoline. Both sides agreed to settle the matter without an admission of any violation having occurred.

“With gasoline prices soaring again, we will continue monitoring stations throughout the state to make sure consumers are treated fairly,” said Attorney General Farber.

This settlement was announced as the Division's Office of Weights and Measures steps up monitoring of gas stations across the state to ensure that station owners and attendants are adhering to consumer protection laws. Investigators are checking to ensure that, among other things, gas prices are not changed more than once in a 24-hour period, per-gallon prices displayed on roadside signs match the price on the pump, and octane levels are accurate. Over the past weekend,15 citations were issued after visits to 200 gas stations.

With this agreement, New Jersey has reached settlements with all three oil companies sued in September 2005. A fourth company reached an agreement with the state without a lawsuit being filed. New Jersey has received $1.38 million under these four settlements.

Under terms of the settlement, Motiva agrees to:

  • not change its retail motor fuel prices more than once within a 24-hour period;
  • maintain required records at each service station; and
  • permit an audit, examination or investigation of the records maintained at its service stations.

“Our job is to protect New Jersey consumers, and this agreement helps us do just that,” said Director Ricketts.

In addition to Motiva, the state sued Amerada Hess Corporation and Sunoco, Inc. Amerada Hess paid $372,391 under a settlement announced in November 2005. Sunoco paid $325,000 under a settlement announced this February.

BP Products North America, which was not sued by the state, agreed to pay $315,000 under a settlement announced in January 2006.

In addition to the company-owned and -operated stations, the state sued 18 independent gas stations for alleged violations of the State Motor Fuels Act and Consumer Fraud Act. Settlements totaling $61,000 have been reached with 13 of these stations to date.

Assistant Attorney General Michael A. Shipp and Deputy Attorney General Jeffery Koziar represented the state in the settlement with Motiva.

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