Order No. P.920414
IN THE MATTER of Section 46 of the Petroleum Products Act Stats. P.E.I. 1990, Cap. 43;
- and -
IN THE MATTER of alleged non-compliance with Sections 23(2) and 63 of the Petroleum Products Act, supra, and Regulation 11 (2) (a) & (c) and Regulation 16 made pursuant to the Petroleum Products Act, supra, in respect of ALBION SERVICE STATION, owned and operated by Larry Creed, holder of Petroleum Products License No. D1359-00.
Tuesday, the 14th day of April, A.D., 1992
BEFORE
Linda Webber, Chairman
John Blakney, Vice-chairman
Decision and Order
TABLE OF CONTENTS
APPEARANCES AND WITNESSES
DECISION
I. INTRODUCTION
II. FINDINGS
ORDER
APPEARANCES AND WITNESSES
Participants in the hearing and the parties for whom they appeared were as follows:
FOR ALBION SERVICE STATION:
Witness: Mr. Larry Creed
Observer: Mr. Reuben CreedFOR THE COMMISSION:
(Mrs.) H. Doris Pursey, Director - Petroleum Division
Mr. Harry MacDonald (Witness) - Assistant to Director - Petroleum DivisionRECORDING SECRETARY:
(Mrs.) Faye Weeks
Decision
I. INTRODUCTION
On 18 December 1991, the Commission fixed the date of 6 February 1992 as the date for commencement of a show cause hearing into alleged non-compliance with Sections 23(2) and 63 of the Petroleum Products Act, supra and Regulations 11 (2) (a) and (c) and Regulation 16 made pursuant to the Petroleum Products Act, supra, by Larry Creed, owner and operator of the motor fuels outlet known as Albion Service Station, and operating under Petroleum Products License No. D1359-00.
The matters which led to the decision of the Commission to hold this hearing may be summarized as follows:
On 20 June 1991, the Assistant to the Director of the Petroleum Division visited the outlet at approximately 2:30 p.m. and reported back to the Director that the outlet was closed for business at that time and that the prices posted on the pumps were not within the allowable range for that date. On checking with the supplier of the outlet, Island Petroleum Products Ltd., it was determined that a delivery of gasoline was made to the outlet on 10 June 1991.
On 11 July 1991, attempts were made to reach Mr. Larry Creed at the outlet, and it was found that the phone was not in service. Mrs. Spencer Creed, mother of Larry, was contacted by telephone, and she advised that Larry Creed was working at other employment, and that the outlet was not operating during the day, but that Spencer Creed was
operating the outlet in the evenings. Mrs. Creed was requested to have Larry contact the Commission Office in this regard. No contact was made.
On 19 September 1991, Mr. MacDonald again visited the outlet at approximately 12:30 p.m. and found the outlet closed and the pump prices not within the allowable ranges.
On 24 September 1991, a registered letter was forwarded to Larry Creed with regard to the above-noted inspections, and fixing a date of 30 September 1991 for Mr. Creed to meet with Commission staff. This letter went unclaimed at the post office and was subsequently returned to the Commission.
On -2 October 1991, Mr. Creed's supplier was again requested to provide information relative to deliveries to the outlet, and it was determined that the last delivery of gasoline had been made to the outlet on 14 August 1991.
On 24 October 1991, a similar letter was dispatched to Larry Creed both by regular and registered mail, requesting Mr. Creed to meet with Commission staff on 7 November 1991. Mr. Creed did not appear at this rescheduled meeting.
On 8 November 1991, the Commission was advised that a representative of the supplier of the outlet, Mr. Michael Hennessey, had visited the outlet and found it to be closed.
On 10 January 1992, a Notice of Hearing was issued and served on Larry Creed by Harry MacDonald. On that date, Mr. MacDonald noted that the outlet was again closed. A copy of this Notice was mailed to Michael Hennessey of Island Petroleum Products Limited and to James Darnbrough of Ultramar Canada Inc.
Testimony given at the hearing by Commission Staff Member, Harry MacDonald, confirmed the above history of events, and Mr. Creed agreed with the facts as outlined by Mr. MacDonald. Exhibits Nos. 1 to 9 were entered into the record without objection. Mr. Creed's testimony was to the effect that he had constructed the outlet in 1989 and operated it for the period early 1990 to the fall of 1991, and during its early operation felt that it was successful and was providing a good service to the public. Mr. Creed indicated, however, that he had run into both financial and health problems which prevented him from continuing to make a success of the operation. He apologized to the Commission for his inaction in responding to requests of staff to meet with regard to the problems being encountered at the outlet, and agreed that the public had not been adequately served for several months preceding this hearing. He requested that his license be allowed to continue until its normal expiry date of 31 March 1992 to allow him time to make arrangements to lease the outlet to someone capable of doing so properly.
Mr. Creed was assured that the Commission would not take immediate action with regard to cancellation of his license in view of the fact that he felt he had someone interested in leasing the outlet. Mr. Creed was requested to report back to the Commission if he was successful in this endeavour.
II. FINDINGS
The Commission is extremely concerned with what has occurred at this outlet as reported at the hearing into this matter. The Commission finds that there has been a breach of Petroleum Products License No. D1359-00 in that the service to the public was neither reasonable nor adequate for some extended period of time. The Commission is also concerned with respect to Mr. Creed's disregard of the repeated attempts by Commission staff to arrange a meeting with him in an attempt to reach a satisfactory solution to the difficulties being experienced at the outlet.
Further, nothing having been heard from Mr. Creed following the show cause hearing into this matter, a letter dated 13 March 1992 was forwarded to Mr. Larry Creed seeking specific information with regard to the status of this outlet. On 31 March 1992, Mr. Larry Creed delivered a response to this letter dated 26 March 1992 to the Office of the Commission which advised that the outlet had been leased for a two-year period to Reuben Creed and Allan Graham. During this visit, Mr. Creed obtained forms for licensing under the Petroleum Products Act. On the same date, Mr. MacDonald visited the outlet and found it to be in operation in accordance with the information supplied in the above-noted letter.
On 7 April 1992, the Commission met to consider recent developments in this matter, and determined that no license would be renewed in the name of Larry Creed, who has been found incapable, by his own admission, of properly operating this outlet under the terms and conditions required by the Petroleum Products Act. The Director was instructed at this meeting to attempt to contact the present operators of the outlet and notify them that immediate action was necessary with regard to the filing of the lease, an application for licensing, and the appropriate fee.
In view of these developments, the Commission's determinations in this matter are set out in the Order appended to this Decision.
Order
The Commission hereby Orders as follows:
1) THAT Petroleum Products Dealer's License No. D1359-00 issued under the Petroleum Products Act, supra, in respect of the Albion Service Station will not be renewed in the name of Larry Creed as a result of non-compliance with Sections 23(2) and 63 of the Petroleum Products Act, supra, as well as Regulation 11 (2) (a) and (c) and Regulation 16 made thereunder.
2) That consideration will be given to an application from the lessees Reuben Creed and Allan Graham for licensing of the Albion Service Station under the Act, providing such application is supported with a satisfactory lease and payment of the necessary fees.
DATED at CHARLOTTETOWN this 14th day of APRIL, A.D., 1992.
BY THE COMMISSION
Chairman
Vice-Chairman
