Court Rules in Equilon's Favor

    LOS ANGELES, Sept. 7 On August 17, the United States
District Court for the Central Division of California issued its opinion in
the Coast Village v. Equilon case and found no evidence of bad faith by
Equilon Enterprises LLC.

    The suit, filed by a group of 20 Shell- and Texaco-branded retailers in
the Los Angeles area, claimed that the new franchise agreements and rent
program were intended to drive them out of business and violated their rights
under the Petroleum Marketing Practices Act (PMPA).

    According to the court opinion, the retailers had produced no credible
evidence demonstrating a specific intent by Equilon to impact their business.
It also determined that the agreements were found to be the result of a
"careful, deliberative process, with the goal being the creation of uniform
dealer agreements."  The Court additionally found that nearly all of contested
terms had appeared in earlier franchise agreements and were accepted by the
"... overwhelming majority of Equilon dealers to whom they have been
presented."

    "We are very pleased with the Court's decision," said David Burrow,
general manager for the Pacific South region, Equilon Enterprises.  "We felt
confident that the evidence would support Equilon's position that we developed
the franchise agreements in good faith."