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095805 1 (1974-07-30)

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UNITED STATES GENERAL ACcUINTING  OFFICE
            REGIONAL  OFFICE
     ROOM 1?.3 JOHN F. KENNEDY FEDERAL BUILDING
     ,       GOVERNMENT CENTER
       BOSTON, MASSACHUSETTS 02203
             July 30, 1974


Mr. Hugh Saussy, Jr.
Regional Administrator, Region I
Federal Energy Administration
150 Causeway Street
Boston, Massachusetts 02114

Dear Mr. Saussy:


     As you know, our office has been reviewing the activities of
the Federal Energy Administration.  To date, we have focused our
attention on the motor gasoline allocation program.  Since the
Petroleun Allocation and Price Regulations (10 CFR, Chapter II)
places a great deal of responsibility on suppliers for administering
the allocation program, we set out to determine whether the suppliers
were comlying  with the regulations; specifically, whether deliveries
were in accordance with the established base year volumes in Section
211.102 and whether adjustments were being made in accordance with
Section 211.13.

     We visited the local offices of Sunoco, Texaco, Exxon, Mobil,
and the coroorate headquarters of Sunoco in Philadelphia,  We dis-
cussed allocation program policy and company procedures with officials
and reviewed motor gasoline delivery records for randomly selected
retail outlets for the months of January through April 1974,

FTNDTIGS

     Three of the four major suppliers reviewed were generally comply-
0-n Tmih the reg'ulations relating to both deliveries and adjutments.

     Sunoco, however, was delivering more gasoline to stations than
regulations permitted,  Based on a review of deliveries to twenty-
two randomly selected stations, we found that eighteen had received
over one-half million gallons or about one-third more than allowed
during the period January through April 1974,  In one instance, for
example, during this period Sunoco delivered 73,401 gallons to a
station which was authorized only 26,581 gallons.  Details on this
and similar cases are attached to this letter.


BEST  DOC? ENT '!AltABLE


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