2 Del. Admin. Code § 2245-4.0

Current through Register Vol. 27, No. 12, June 1, 2024

Section 2245-4.0 - Independence of Retail Dealers

4.1 Ban against company-operated service stations.

4.1.1 Notification of company-operated stations. Every manufacturer operating a station with company personnel, a subsidiary company, a commissioned agent or under a fee arrangement shall submit to the Office a written notification which, with regard to each station so operated, shall specify the address, describe the manner of operation and state the date that company operation began.

4.2 Temporary operation of a previously dealer-operated station by manufacturers of petroleum products.

4.2.1 Temporary operation. After July 29, 1974, a manufacturer of petroleum products may operate, for a period not to exceed 30 days, a previously dealer-operated station only if the dealer:

4.2.1.1 vacated the station in breach of his lease; or

4.2.1.2 takes an extended vacation or a temporary leave and there is a mutual agreement of operation; or

4.2.1.3 was terminated or not renewed as provided for by P.M.P.A., 15 U.S.C.A. § 2801 and/or evicted by the manufacturer for cause, as provided for by said Act; or

4.2.1.4 the parties mutually agree to terminate the contract. The 30-day period shall commence on the day following the date of such death, abandonment, vacation, eviction or termination.

4.2.2 Applications for exceptions. Applications for exceptions to the time period specified in section A of this Regulation will be considered only if they are submitted to the Office in writing and specify as to each station for which such exception is requested:

4.2.2.1 the address;

4.2.2.2 the basis for the applicability of subsection A of this regulation;

4.2.2.3 the name and address of the previous dealer;

4.2.2.4 the reason why the exception is sought;

4.2.2.5 the duration of the exception sought;

4.2.2.6 a complete description of the actions being taken to locate a new dealer; and

4.2.2.7 an acknowledgement that all additional information demanded by the Office will be provided by the applicant within 20 business days of receipt of the demand.

4.2.3 Action on applications. Decisions on applicants made pursuant to subsection 2905.2 of this Regulation shall be written and sent by certified mail, return receipt requested, to the applicant at the return address appearing on the application.

4.2.4 Operation pending action. Operation of a previously dealer-operated station by a manufacturer in excess of the time period specified in section 2905.1 of this Regulation and during the pendency of an application made pursuant to subsection 2905.2 of this Regulation shall not be allowed unless the contrary has been authorized in writing by the Office.

4.2.5 Operation of a new station by a manufacturer. Upon the approval of the Office a manufacturer may open a new station and operate said station with company personnel. Any period of time that a manufacturer would be allowed to operate a new station shall be decided by the Office on the merits of each case.

4.2.6 Rebuilding or relocating a lawfully operated outlet by a manufacturer. Rebuilding: Producer/refiner locations may be rebuilt at the same location or in reasonable proximity thereto when the station is lost to fire or other disasters, or when facilities are being remodeled or renewed.

4.3 Formal hearing procedures.

4.3.1 Formal hearing. Any person, partnership, corporation or any other entity having had an Application for Exception under Regulation 2905.2 denied by the Office may demand a formal hearing with the Secretary or his designee within 30 days after receipt of that decision or, if applicable, the date on which the application is deemed to have been denied.

4.3.2 Requisites of demand. The demand for hearing shall be in writing and set forth the grounds upon which review of the denial is sought.

4.3.3 Notice; place of hearing. After receipt of a written demand for hearing, the office shall give reasonable notice to the petitioning party and the Attorney General of the date and time for the hearing. All hearings shzall be held at the Dover, Delaware address of the Office and shall be conducted by the Administrator of the Retail Gasoline Sales or his designee in accordance with 29 Del.C. Ch. 64, the Administrative Procedures Act.

4.3.4 Decision and appeal. The Hearing Officer shall render a written decision stating his findings of fact and conclusions of law. Copies of the decision shall be promptly mailed to all parties.

4.4 Effective date.

The provisions of 6 Del.C. § 2905 (a) shall apply only to service stations or retail outlets first operated or which began operation by company personnel, a subsidiary company or a commissioned agent after July 29, 1974.

2 Del. Admin. Code § 2245-4.0