Gasoline stations sue ethanol operation

Wednesday, September 05, 2007

A story by Bob Meyer on the Web site of Brownfield Network:

A group of 42 gasoline stations in northeastern Wisconsin have filed suit against ethanol producer, Utica Energy LLC and its retailer, Renew 85. The suit claims Utica violated the Wisconsin Unfair Sales Act by selling 10, 20 and 85% ethanol fuel for less than the required minimum price from mid-August until the end of December last year. The $12 million suit not only seeks damages but also asks for a permanent injunction to prevent Renew from selling fuel for vehicles. An attorney for Utica Energy describes the suit as big oil ganging up on Renew and Utica.

This is not the first time that renewable fuels producers have been charged with violating the state’s minimum mark-up law however Governor Jim Doyle has told officials not to pursue such cases.

Utica Energy LLC has a 52 million gallon ethanol plant in the Town of Utica near Oshkosh, Wisconsin. The plant began production in April, 2003 and expanded to its current capacity in November, 2004.