California - The Shell Oil Refinery on Rosedale Highway is scheduled to close at the end of September, but one consumer group said the only reason the refinery is closing is to drive up gas prices even higher than they are already.
News Channel 23 obtained internal Shell documents Tuesday from the Foundation For Taxpayers and Consumer Rights.
They have been released to the public in hopes of stopping the closure of the Bakersfield refinery. At a press conference Tuesday in Santa Monica, foundation president Jamie Court could not reveal who supplied the documents, which he said clearly demonstrate the Shell Refinery on Rosedale Highway is profitable and is only being closed to drive gas prices higher.
"We have people who are unhappy and saw that Shell had decieved the public," Court said. "We have supplied these (documents) so the public can really see what's going on." Court said the entire state will see higher gas prices if the refinery is allowed to close.
"There is irreprepable harm to the public if Bakersfield closes because it is 2 percent of our state's gasoline supply in the tightest market in history," Court said. "Californians cannot afford to pay another 50 cents per gallon for their gasoline because Shell decides to dismantle one of the last 13 refineries in a state that serves over 35 million people."
Shell spokesman Cameron Smyth told NewsChannel 23 that Shell still plans to close the refinery at the end of September, and these same documents explain why.
"Those same documents show that the refinery actually lost money two out of the last 3 years, and it's anticipated that it will operate at a loss in 2004," Smyth said.
Court disagrees, and he said in the name of California consumers, the attorney general needs to act now.
"What the attorney general should do is seek an injunction to either keep the Bakersfield refinery open, or to force Bakersfield to be sold to a competitor at a price that is more than the cost of demolition," Court said.
For now, there is no "for sale" sign on Rosedale Highway.
"We are saying that we will entertain credible offers," Smyth said. "If someone wants to make a credible offer, we will entertain it, but our decision is to close the refinery on Sept. 30, 2004."
News Channel 23 talked with the Attorney General's Office on Tuesday, which said they have not yet officially received the documents from the consumer group.
They said they continue their investigation into the closing of the Bakersfield refinery, and are exploring a variety of legal options.
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News ID 18550
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