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NEWS RELEASE: REP. DAN SCHOEN TO INTRODUCE BILL MANDATING FAIR GAS PRICING AT RETAIL LOCATIONS NEAR REFINERIES

Friday, January 10, 2014

ST. PAUL – Representative Dan Schoen (DFL-St. Paul Park) will introduce legislation on Monday designed to address the concerns about the price of gas near refineries in the Metro area. Schoen’s bill stipulates that companies that own both gas refineries and retail locations that sell gas within the state of Minnesota must have fair pricing practices.

 

The legislation is a result of complaints from Rep. Schoen’s District 54A constituents over what they call unfair pricing policies by Northern Tier Energy, the owner and operators of Super America convenience stores.

 

“In the Twin Cities, gas prices have always varied in different ways based on location,” Rep. Schoen said. “But my constituents have been particularly concerned about what seems to be going on with the Northern Tier Energy Refinery and its Super America gas stations near that refinery.

 

“I did some investigating and found that the Super Americas and other gas stations closest to Northern Tier’s St. Paul Park refinery typically have the highest gas prices in the metro area,” Rep. Schoen continued.

 

Schoen noted that on Thursday, a gallon of regular at the St. Paul Park Super America cost $3.25, while at a Super America station in Burnsville – just 20 miles away – the price of a gallon of regular was $3.09.

 

Schoen has asked Northern Tier for an explanation but never received a response.

 

The bill states that these companies must offer consumers at retail locations within seven miles of a refinery the lowest price of a gallon of gas it offers at retail locations within a 35-mile radius of that refinery.

 

Rep. Joe Atkins, chairman of the Commerce and Consumer Protection Finance and Policy Committee, is the co-author of the House version of the bill.

 

“The people of District 54A have been good neighbors to Northern Tier,” Rep. Atkins said. “Northern Tier needs to return the favor through its pricing policies. If not, it should at least offer an explanation for this disparity in pricing.”

 

State Senator Katie Sieben (DFL-Newport) is introducing similar legislation, with Sen. James Metzen, chairman of the Senate Commerce Committee, a co-author.

 

The legislation will not affect current state minimum pricing laws already on the book.

 

“This issue goes deeper than gas prices,” Rep. Schoen said. “People tell me they will shop around for the cheapest gas prices. That’s also where they do most of their shopping for groceries or eat out. Northern Tier’s policy is taking money and jobs out of the district. Unless there is a reasonable explanation – and obviously transportation costs can’t be one – Northern Tier should step up and be a friend to its neighbors.”