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AG files suit against Woodlands company for gas shorting
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| Inspectors from the Texas Department of Agriculture check the calibration on this Texaco Station pump, operated by Petroleum Wholesale L.P., based in The Woodlands. Inspectors found that 985 pumps of 1,700 inspected were dispensing less than a full gallon of gas or diesel fuel. |
By T.L. HAMILTON
Texas Attorney General Greg Abbott took legal action against a Woodlands-based gasoline wholesaler found by the Texas Agriculture Department to be shorting customers of gasoline.
The TDA investigation in July found that Petroleum Wholesale L.P.’s gas stations routinely failed to pump the amount of fuel its customers actually purchased.
Thursday afternoon, a representative for Petroleum Wholesale’s corporate office said no one was available for comment, but issued a prepared statement.
“We disagree with the opinions and conclusions announced by the Commissioner of Agriculture last week leading to the lawsuit filed by the Attorney General’s office,” it said.
“We adamantly deny that (Petroleum Wholesale) has ‘intentionally cheated consumers.’”
One Texaco station operated by the company in The Woodlands at 660 Sawdust Road was 69 percent non-compliant, meaning that a majority of its pumps shortchanged drivers.
Officials also found that the company attempted to hide its alleged cheating by calibrating pumps before inspectors arrived.
“Texans are paying record gas prices, and when they purchase a gallon of gas, they expect to receive a full gallon,” Abbott said.
Petroleum Wholesale, which operates Sunmart Travel Centers & Convenience Stores in several states and offers both wholesale and branded gasoline, is charged with violating the Texas Deceptive Trade Practices Act by maintaining fuel pumps that were improperly calibrated in a manner that benefited the company financially.
Agriculture Commissioner Todd Staples said the company raised department suspicions when its pumps repeatedly failed state registration tests.
Out of pumps tested last year, “their pattern of violations was around a 34 percent noncompliance,” he said. “The statewide average is 4 to 6 percent. It shined brightly that we had a problem here of major proportions.”
From July 18–20, department inspectors conducted Operation Spotlight, a concerted effort to test approximately 1,700 Sunmart pumps. The investigations revealed that 985 pumps were dispensing less than a full gallon of gas or diesel fuel.
Fifteen Sunmart stations had 100 percent of their pumps calibrated in the company’s favor.
The attorney general’s enforcement action also charges Sunmart with intentionally obstructing the department’s investigation.
Less than one day into their three-day investigation, department inspectors discovered that the defendant dispatched pump calibration technicians to several of its locations ahead of inspectors.
Additionally, some Sunmart stations put “out of order” signs on their pumps in an effort to prevent them from being inspected, telling state inspectors that the pumps were “out of order” or “out of gas.” However, when department inspectors turned on these pumps, the inspectors found that they contained gasoline and were operational.
In its statement, Petroleum Wholesale said the company has some concerns about the department’s testing methods, which the statement said “do not comply with the testing protocol set forth by applicable statutes designed to ensure test result accuracy.”
The attorney general is seeking civil penalties of up to $20,000 per violation of the Texas Deceptive Trade Practices Act as well as attorneys’ fees and customer restitution.
For more information, call (800) TELL-TDA or visit www.tda.state.tx.us.
The TDA investigation in July found that Petroleum Wholesale L.P.’s gas stations routinely failed to pump the amount of fuel its customers actually purchased.
Thursday afternoon, a representative for Petroleum Wholesale’s corporate office said no one was available for comment, but issued a prepared statement.
“We disagree with the opinions and conclusions announced by the Commissioner of Agriculture last week leading to the lawsuit filed by the Attorney General’s office,” it said.
“We adamantly deny that (Petroleum Wholesale) has ‘intentionally cheated consumers.’”
One Texaco station operated by the company in The Woodlands at 660 Sawdust Road was 69 percent non-compliant, meaning that a majority of its pumps shortchanged drivers.
Officials also found that the company attempted to hide its alleged cheating by calibrating pumps before inspectors arrived.
“Texans are paying record gas prices, and when they purchase a gallon of gas, they expect to receive a full gallon,” Abbott said.
Petroleum Wholesale, which operates Sunmart Travel Centers & Convenience Stores in several states and offers both wholesale and branded gasoline, is charged with violating the Texas Deceptive Trade Practices Act by maintaining fuel pumps that were improperly calibrated in a manner that benefited the company financially.
Agriculture Commissioner Todd Staples said the company raised department suspicions when its pumps repeatedly failed state registration tests.
Out of pumps tested last year, “their pattern of violations was around a 34 percent noncompliance,” he said. “The statewide average is 4 to 6 percent. It shined brightly that we had a problem here of major proportions.”
From July 18–20, department inspectors conducted Operation Spotlight, a concerted effort to test approximately 1,700 Sunmart pumps. The investigations revealed that 985 pumps were dispensing less than a full gallon of gas or diesel fuel.
Fifteen Sunmart stations had 100 percent of their pumps calibrated in the company’s favor.
The attorney general’s enforcement action also charges Sunmart with intentionally obstructing the department’s investigation.
Less than one day into their three-day investigation, department inspectors discovered that the defendant dispatched pump calibration technicians to several of its locations ahead of inspectors.
Additionally, some Sunmart stations put “out of order” signs on their pumps in an effort to prevent them from being inspected, telling state inspectors that the pumps were “out of order” or “out of gas.” However, when department inspectors turned on these pumps, the inspectors found that they contained gasoline and were operational.
In its statement, Petroleum Wholesale said the company has some concerns about the department’s testing methods, which the statement said “do not comply with the testing protocol set forth by applicable statutes designed to ensure test result accuracy.”
The attorney general is seeking civil penalties of up to $20,000 per violation of the Texas Deceptive Trade Practices Act as well as attorneys’ fees and customer restitution.
For more information, call (800) TELL-TDA or visit www.tda.state.tx.us.
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ffdon2 wrote on Aug 14, 2008 3:28 PM: