Friday, February 15. 1974
5
Conoco Hit Hard by New FEO Plan
By BYRON MYERS
Kansan Staff Reporter
Lawrence Conco dealer are beginning to feel the crunch caused by a re-allocation of crude oil supplies ordered by the Federal Energy Office, (FEO), Dick Allen, district marketing manager for Conco, said yesterday.
A survey of Conoco stations in Lawrence yesterday found two closed completely and a third open for service work only. None were selling gasoline.
Alen said all Conoco agents, jobbers and dealers had been informed that the federal government's new crude oil allocations significantly reduce their petroleum supplies.
Conoco's crude oil supplies have been sufficient to run its refineries at maximum capacity; but under the federal program, Conoco must sell an equivalent of 2.8 million gallons of gasoline daily to other refiners during February and March. Allen said
ALLEN SAID the result would be a 20 percent decrease in supply to Conoco's own refiners. He said Atlantic Richfield Co., Standard Oil of Ohio, Oil Mill Co. and Texaco could purchase crude oil from Concoo and other small refiners.
"We're being penalized for our foreword in all exploration and development," Allen
Allen also said a Conoco newsgram pointed out that it "didn't make sense for Conoco to import crude oil at $18 a barrel to sell to our competitors at $7 to $8 a barrel."
Conoco was also concerned about diversion of domestic crude oil from inland refineries that "serve our agricultural heartland" to eastern refineries that traditionally have used crude oil from offshore drilling.
The newsman said that Conoco generally supported FEO's actions, but that Conoco didn't think crude oil allocation was in the best interests of its own people. Allen said.
"CONOCO'S VOLUNTARY allocation program was much more workable than the complex situation we find ourselves faced with under federal regulations." Allen said.
University Daily Kansan
Allen said he had spent all day Saturday with representatives of FEO. The company made an appeal and filled out all the information he provided. He said with Conoco's suggested program he said
Conoco dealers from across the state met yesterday with company officials in Kansas
Dealers and jobbers were told they couldn't sell any more gasoline this month, and any gasoline now in their tanks would be shipped part of March's allotment, Allen said.
City, Allen said. All the dealers were presented, he said, to hear marketing officials explain the situation and make recom- ments before the dealer until more gasoline becomes available.
state energy office in Topeca for exemption from the set-aside rule, which requires gasoline be put in reserve in case of a state emergency. The successful, he can appeal similarly to FEO.
Alen said some dealers had called FEO but received nothing except more condiments.
"We'll only have 75 per cent of our 1972 volume for jobbers and dealers after we take care of top priority customers and the two per cent set-aside figure." Allen said.
There are two appeals a jober or dealer can make, Allen said. He can appeal to the
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The recommendation will be presented Monday to the Council of Deans, which will approve the selection.
A PETER
BOGDANOVICH
PRODUCTION
A recommendation for an early enrollment system for the University of Kansas was made yesterday to Executive Vice President Brian Gill, Dean of admissions and records.
THE RITUAL d. Ingmar Bergman
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2:00:4:30:7:00:9:30
Kansas Union
Tuesday, Feb. 19
Sunday, Feb. 17
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Thursday, Feb. 21
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Dyck declined to reveal what the plan was until after it was presented to the council.
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Kansas Union
Enrollment Plan Submitted
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d. Fellini
Wednesday, Feb. 20
7:30-9:15
Kansas Un
Special Films
THE PASSION OF ANNA d. Drever
Monday, Feb. 18
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If the plan is adopted, the council will have to discuss how to handle the early enrolment of incoming freshmen and how to prepare them for the instrument for the entire University, Dyck said.
Freddy King
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