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096726 1 (1974-10-29)

handle is hein.gao/gaobacxmp0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE REGIONAL OFFICE ROOM 833 FOX PLAZ4 DUILOING, 13140 MARKET STREET SAN FRANCISCO, CALIFORNIA 94102 IN REPLY REFER TO;. 00107 ;4 ocr 25' :r. Willian C. Arntz, leg inal Aidinistrator Federal knergy Adm~inistration 11 Pine tret -LM096726 / ;an Francisco, California 1k111 Dear r. Arntz: urin,; or current reviv of' 'enru iner ; A'inistration oprations relatint to tne anloatin an1- Tricin.( of fuel. we found tInat Lie ..adi'SOT, Inc. ( .izIon) and tne Conusu'r il Dpterations (CJ), -tcLranto. :'alifornia, ig;ht have vio- lated the provisions of t'ie Puel \llocation Pro';rw:. We esti- -ate that durir. the critical neriod of Jnuary 15 to :'ay 3), 1974, 350,003 allos of ,asoline wer diverted Pron service stations wuich, it appears, were leased by C,0 solely to obtain allocated fuel. The supplier of this fuel. AJdion, leases out and sp-plies a ruaber of coapany-ovred service stations and supplies other nonco~pany-OWnId service s-tatios, * n January 1), 13 T+tr of the co-mpany-ooiieu stations in the 3acra':-nto area were leased to CO0. 'e were told th'it .)0 never zperatei tu'se stations but, rather, sold tae allocatem fuel to otnxDr service station oera- tors in the central Jalifor:,ix area. AJdi on records indic'ato that all fuel 'ieliveriea to A) were rade to locations other lan the leased stat ions. In addition, 11, , d 7,134 'rjlons of fu,l aere .oved or transferrd by ir:Jcric .cu tah Lines and Petroleum lank Line, respectively fur Ct. ise transfers qt;:ar to have been -manioilation.3 of faol a o, CI customers, oo::e of which were also Addison eustoi.nrs. :iz data, wic± is attacheJ, was obtained fro. tue talifornmi-i State -oard of i:rquaizatiou. We were uiable to locate 'Q0) or its operator, Ar. K. Gary. We were tola, iiowever, tat 1r. Gary sus a criminal record and is currently wanted by law enforccient agencies. ie were also told that :Ir. Gary had apparently biloed several retailers of various sums of oney. - awoG oI

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