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Marathon Responds to Pricing Allegations in Kentucky

5/10/2007 6:03:00 PM



FINDLAY, Ohio, May 10 /PRNewswire-FirstCall/ -- Marathon Oil Corporation (NYSE: MRO) issued the following statement in response to a suit filed today by the Kentucky Attorney General against Marathon Oil Corporation, Marathon Petroleum Company LLC and Speedway SuperAmerica LLC seeking restitution and alleging violations of the Consumer Protection Act and the Kentucky price gouging law.

"We are very disappointed with the actions taken by the State of Kentucky, and Marathon will vigorously defend itself in this enforcement action," said Gary R. Heminger, Marathon executive vice president and president of Refining, Marketing and Transportation operations.

In 2005, Marathon subsidiary Speedway SuperAmerica LLC (SSA) was informed that its retail operations in Kentucky were under investigation for alleged gasoline price gouging utilizing a new and extremely vague law. The Attorney General began by reviewing the timeframe following the 2005 hurricane season. The Attorney General subpoenaed financial records from Marathon and SSA and numerous other retail gasoline marketers. From the beginning, Marathon has cooperated fully with the Attorney General on this investigation and participated in a number of discussions. However, the Company has not been contacted by the Attorney General's office since January 2007.

"We do not believe that we violated the law. In fact, we are very proud of our Company's response in the wake of hurricanes Katrina and Rita to keep fuel supplies available when 25 percent of the domestic crude oil production and 15 percent of the nation's refinery capacity was shut down by these historic storms. Our product pricing during the time in question was made responsibly, using the same market-based, supply and demand pricing fundamentals we use every day."

Marathon believes that the law, which Kentucky Attorney General Stumbo cited in bringing suit, is not only unclear, but unconstitutional. The Attorney General himself has stated the law on price gouging is unclear, both today and previously. Due to the lack of clarity and other issues with the current law, Marathon today filed suit in federal court in Frankfort, Ky., challenging the constitutionality of the law and the interpretation taken by the Attorney General.

"Our goal each day is to provide our products at a competitive price at each of our retail locations. We have a 100-year history of supplying the Midwest markets with quality products, and we have been recognized for our strong ethical standards," Heminger added. "We will continue to focus on providing quality products to the citizens of Kentucky and the Midwest, and we are confident we will be successful in our defense of this lawsuit."


SOURCE Marathon Oil Corporation
05/10/2007
CONTACT: media, Angelia Graves, +1-419-421-2703, or investor relations, Ken Matheny, +1-713-296-4114, or Howard Thill, +1-713-296-4140, all of Marathon Oil Corporation

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AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com

News From CPSC

U.S. Consumer Product Safety Commission
Office of Information and Public Affairs
Washington, D.C. 20207

For Immediate Release
March 31, 2006
Release #06-DRAFT

Speedway's Recall Hotline (800)643-1948
CPSC Recall Hotline: (800)638-2772
CPSC Media Contact: (301)504-7908

CPSC, Speedway SuperAmerica LLC Announces Recall of "Speedway" Cigarette Lighters

WASHINGTON, D.C. - The U.S. Consumer Product Safety Commission, in cooperation with the firm named below, today announced a voluntary recall of the following consumer product. Consumers should stop using recalled products immediately unless otherwise instructed. (To access color photos of the following recalled products, see CPSC's Web site at www.cpsc.gov.)


Lighter Pic

Name of Product Units: "Speedway" Cigarette Lighters

Importer: About 500,000

Retailer: Golden Star Group, of Walnut, California

Hazard: The flame can flare up or the lighter can catch fire when ignited, posing risks of unexpected fires and burn injuries.

Incidents/Injuries:Speedway SuperAmerica LLC has received six reports of incidents involving flare-ups on these lighters. Burn injuries to the head, hair, face and hand have been reported.

Description: The affected lighters have the Speedway logo on the front, "Acculite" embossed on only one side of the silver metal windscreen, and the warning information on the back is only in black type (no red type).

Sold at: Speedway, SuperAmerica and Rich convenience stores from July 2005 through October 5, 2005 for about 99 cents each.

Manufactured in:China

Remedy: Consumers should stop using these lighters immediately and return them to the store where purchased for a refund.

Consumer Contact: For more information, contact a Speedway representative at (800)643-1948 between 7:30am and 6:00pm EST, Monday through Friday, or go to the firm's website at www.speedway.com.

Media Contact: Linda Casey, (419)421-3262; or Angelia Graves, (419)421-2703.


The U.S. Consumer Product Safety Commission is charged with protecting the public from unreasonable risks of serious injury or death from more than 15,000 types of consumer products under the agency's jurisdiction. Deaths, injuries and property damage from consumer product incidents cost the nation more than $700 billion annually. The CPSC is committed to protecting consumers and families from products that pose a fire, electrical, chemical, or mechanical hazard. The CPSC's work to ensure the safety of consumer products - such as toys, cribs, power tools, cigarette lighters, and household chemicals - contributed significantly to the 30 percent decline in the rate of deaths and injuries associated with consumer products over the past 30 years.

To report a dangerous product or a product-related injury, call CPSC's hotline at (800)638-2772 or CPSC's teletypewriter at (800)638-8270 or visit CPSC's Web site at www.cpsc.gov/talk.html. Consumers can obtain this release and recall information at CPSC's Web site at www.cpsc.gov.
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