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CONFIDENTIAL

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									                     UNITED STATES DISTRICT COURT
                   FOR THE DISTRICT OF MASSACHUSETTS




WILLIAM WHITE, R. CARLEEN CORDWELL,      )
KEN BAILEY, NADINE MONACO,               )
HENRY KRIEGSTEIN, JOAN KRIEGSTEIN,       )
HILARY SCHULTZ, ANN BUTTRICK             )
FLOYD AND SANDCASTLE REALTY, INC.        )
                                         )
     Plaintiffs                          )
                                         ) CIVIL ACTION NO. 07-CV-11601RWZ
v.                                       )
                                         )
R.M. PACKER COMPANY, INC.,               )
DRAKE PETROLEUM CO., INC.,               )
KENYON OIL COMPANY,                      )
DEPOT CORNER, INC, AND                   )
FRANCIS J. PACIELLO                      )
D/B/A EDGARTOWN MOBIL                    )
                                         )
     Defendants.                         )




                           EXPERT REPORT
                                OF
                         MICHAEL QUINN, Ph.D.


                               April 30, 2009




                             CONFIDENTIAL
                                                             Table of Contents

I.        Introduction ..............................................................................................................................1
     A.      Qualifications............................................................................................................. 1
     B.      Engagement................................................................................................................ 2
     C.      Summary of Conclusions........................................................................................... 3
II. Background ...............................................................................................................................5
III. The Sale of Retail Gasoline ......................................................................................................5
IV. Economic Issues Relevant to Assessing Allegations of Price Fixing.....................................7
     A. Patterns of Defendants’ Prices are Similar to Prices at Non-defendant Gasoline
     Stations on Martha’s Vineyard .......................................................................................... 7
     B. Defendants’ Retail Price Levels are Not “Artificially High” .................................. 10
     C. Identification of Other Potentially Comparable Gasoline Stations.......................... 14
V. Economic Issues Relevant to Assessing Price Gouging Claim............................................15
VI. Rebuttal of Professor Gollop .................................................................................................18
     A. Professor Gollop’s Preliminary Assumptions about the Market for the Retail Sales
     of Gasoline on Martha’s Vineyard................................................................................... 19
     B. Professor Gollop’s Conclusion Regarding Defendants’ “Supra-competitive Price” is
     based on Flawed Analyses ............................................................................................... 20
     C. Professor Gollop’s Price Gouging Analysis Lacks an Economic Foundation ........ 24




                                                         CONFIDENTIAL
           I.   INTRODUCTION

                   A. Qualifications

1. I, Michael Quinn, am a Managing Principal in the Boston office of Analysis Group, Inc., an

   economics and financial consulting firm. I hold Ph.D. and M.A. degrees in Economics from

   Princeton University and an S.B. in Economics from the Massachusetts Institute of

   Technology. I am a member of the American Economics Association and the Econometric

   Society. I have taught micro-economic theory, statistics, and econometrics at the graduate

   and undergraduate levels at Princeton and Tufts Universities.

2. For the last 15 years, my work as a professional economist has largely focused on energy

   markets. I have served as an expert on matters involving petroleum pricing, natural gas

   trading, and antitrust claims regarding market manipulation. I have published articles on

   various aspects of energy markets, and have spoken at numerous conferences.

3. On energy matters, I have consulted to governments and government regulators (including

   the Federal Energy Regulatory Commission (“FERC”) staff, Mexico’s energy regulator, the

   government of Singapore, the state of Victoria in Australia, Argentina’s energy regulator, and

   New Zealand’s Treasury Department, among others), non-governmental organizations

   (“NGOs”) such as the World Bank and the Asian Development Bank, as well as numerous

   private companies all over the world. I have provided training sessions for energy market

   regulators. I have advised on both physical gas market issues as well as on futures and

   derivatives trading to government entities, NGOs, and private firms. I have advised the

   World Bank on oil transport issues in Russia and provided recommendations for a new

   commercial, contractual, and regulatory regime. I have been engaged in numerous disputes

   over prices and pricing methodologies for energy (principally, natural gas), energy price

   negotiations, and contractual disputes over pricing.



                                                1
                                    CONFIDENTIAL
4. In the Western Markets Investigation carried out by the staff of FERC in 2002-2003, I was

    named as an expert by FERC to assist it in its investigation.1 As part of this, I performed

    analyses of several large energy companies’ gas trading operations (including those of Enron,

    Reliant, and Williams).

5. In federal and state court proceedings, I have submitted expert reports and testified on topics

    having to do with the economics of energy markets. My resume is attached as Appendix A.

                      B. Engagement

6. I have been retained to assist counsel for defendants in evaluating and analyzing the

    plaintiffs’ claims. Analysis Group is being compensated for my work in this matter at my

    usual billing rate of $495/hour.

7. I have been asked by counsel for the defendants to address allegations that the defendants

    conspired to “fix, raise, maintain and/or stabilize gas prices relating to the prices being

    charged by Defendants’ Gasoline Stations to consumers.”2 In particular, I have been asked to

    determine whether the defendants’ retail prices for gasoline during the relevant time period

    reflect supra-competitive price levels given the economics of the marketplace for the sale of

    retail gasoline on Martha’s Vineyard. 3 I have also been asked to address allegations that

    defendants engaged in price-gouging following Hurricanes Katrina and Rita. Finally, I have

    been asked to examine the report of plaintiffs’ expert, Professor Frank M. Gollop, and

    provide an assessment of his analysis of the plaintiffs’ claims in this matter.

8. As part of my work in this case, I have studied the structure and behavior of the sale of retail

    gasoline. Among other things, I examined the prices, sales, and other characteristics of the

    gasoline stations situated on Martha’s Vineyard, as well as certain attributes of gasoline sales

1
  “Final Report on Price Manipulation in Western Markets: Fact-Finding Investigation of Potential
Manipulation of Electric and Natural Gas Prices,” prepared by the staff of the Federal Energy Regulatory
Commission, March 2003, Docket No. PA02-2-000. Principal contributor to Chapter 2, “Analysis of Gas
Trading Activity in Southern California.”
2
  Second Amended Complaint and Jury Demand, p. 5.
3
  Supra-competitive prices refer to prices above levels that would otherwise exist in a competitive market.
                                                     2
                                        CONFIDENTIAL
    on Cape Cod and Nantucket. I examined company documents, deposition testimony,

    materials from trade press, and other third party documents.

9. Appendix B provides a comprehensive list of the documents and data considered in this

    report.

                      C. Summary of Conclusions

10. My analyses and findings are detailed in the remainder of this report. Of particular note, I

    conclude the following:

              1. The retail prices charged for unleaded gasoline and sold by the defendants during

                  the relevant time period are consistent with those in competitive markets;

              2. I have seen no economic evidence showing that the four defendants acted

                  collusively during the relevant time period. The observed pricing patterns are

                  consistent with rational economic behavior and make business sense from the

                  perspective of an individual station owner or operator;

              3. I have seen no economic evidence suggesting that customers on Martha’s

                  Vineyard are responsive to price—i.e., no evidence that gasoline stations on

                  Martha’s Vineyard face a high price elasticity of demand. To the extent that

                  plaintiffs are representative of gasoline buyers on Martha’s Vineyard, price is not

                  an important factor in consumers’ gasoline purchase decisions;

              4. The behavior of retail prices charged by the four defendant gasoline stations

                  during the time period following Hurricanes Katrina and Rita is consistent with

                  the economics of this industry; and

              5. Professor Gollop’s analysis of the plaintiffs’ claims in this matter is based on

                  several unsubstantiated assumptions and contains fundamental flaws that results

                  in conclusions which are misleading and unreliable. In particular,



                                                  3
                                       CONFIDENTIAL
                     •   He does not define the relevant geographic market for the sale of retail

                         gasoline on Martha’s Vineyard, and his analysis is fatally flawed by his

                         completely ignoring the presence of five other gasoline stations located

                         on the island, including two stations in Oak Bluffs located less than three

                         miles away from the two defendants in Vineyard Haven (miles nearer

                         than the defendants in Edgartown are to those in Vineyard Haven). The

                         Oak Bluffs stations are also closer to Edgartown than are the Vineyard

                         Haven stations;

                     •   His assumption, fundamental to plaintiffs’ claims, that the retail sale of

                         gasoline on Martha’s Vineyard is perfectly price competitive is false;

                     •   He incorrectly assumes that gasoline buyers on Martha’s Vineyard shop

                         for gasoline on the basis of price;

                     •   He ignores all non-price attributes of retail gasoline sales, including

                         location;

                     •   His use of an average price for gasoline stations for only three towns on

                         Cape Cod is misleading because he fails to account for the numerous

                         characteristics of these stations that impact price levels; and

                     •   His price gouging analysis is based fundamentally on the misuse and

                         mischaracterization of information presented in the Federal Trade

                         Commission’s report on gasoline prices following Hurricanes Katrina

                         and Rita.4




4
 Investigation of Gasoline Price Manipulation and Post-Katrina Gasoline Price Increases, Federal Trade
Commission, Spring 2006. (“FTC Report”)
                                                   4
                                      CONFIDENTIAL
             II. BACKGROUND

11. In this section, I provide background on the four defendant gasoline stations and the other

    five gasoline stations located on Martha’s Vineyard. The four defendant gasoline stations

    are:

             •   Tisbury Shell – located at 86 Beach Road, Vineyard Haven;
             •   XtraMart Citgo – located at 9 Beach Road, Vineyard Haven;
             •   Edgartown Mobil – located at 199 Upper Main Street, Edgartown; and
             •   Depot Corner – located at 149 Main Street, Edgartown.

12. The five other (non-defendant) gasoline stations located on Martha’s Vineyard are:

             •   DeBettencourt Mobil – located at 83 New York Avenue, Oak Bluffs;
             •   Jim’s Fuel Station – located at 27 Lake Avenue, Oak Bluffs;
             •   Airport Fuel Services – located at 3 North Line Road, Edgartown;
             •   Up-Island Automotive – located at 1074 State Road, West Tisbury; and
             •   Menemsha Texaco – located at 60 Basin Road, Chilmark.

13. Exhibit 1 is a map showing the location of each retail gasoline station on Martha’s Vineyard,

    and Exhibit 2 shows the distance (in miles) between each of the stations. For example, the

    table shows that Tisbury Shell is located 7.4 miles and 7.7 miles from Edgartown Mobil and

    Depot Corner, respectively, but closer to DeBettencourt Mobil (1.8 miles), Jim’s Fuel Station

    (2.5 miles), Airport Fuel Services (4.8 miles), and Up-Island Automotive (7.1 miles).

    Similarly, the two defendants—Edgartown Mobil and Depot Corner—are closer to three non-

    defendant stations—Airport Fuel Services, DeBettencourt Mobil, and Jim’s Fuel Station—

    than they are to Tisbury Shell and XtraMart Citgo.

             III. THE SALE OF RETAIL GASOLINE

14. Retail gasoline stations generally compete on a host of factors, of which price is one.5 The

    retail price per gallon for gasoline sold by gasoline stations is transparent to consumers. It is


5
 See, for example, Iyer, Ganesh and P.B. Seetharaman, “Too Close to be Similar: Product and Price
Competition in Retail Gasoline Markets,” Quantitative Marketing and Economics, Vol. 6, No. 3,
September 2008), pp. 205-234; Netz, Janet S. and Beck A. Taylor, “Maximum or Minimum
                                                   5
                                       CONFIDENTIAL
    easy for a potential customer to compare prices at nearby gasoline stations and shop on that

    basis if they so choose.

15. There are several different economic aspects associated with the retail sale of gasoline that

    preclude it from being perfectly price competitive. Gasoline stations differentiate themselves

    in many ways. Branded gasoline stations use additives in their gasoline (unbranded gasoline

    stations do not); some gasoline stations are full-service stations (as opposed to self-serve);

    some have convenience stores; and some have automotive repair shops, to name a few.6

    Gasoline stations are also differentiated by their geographic location. All of these factors can

    have an impact on the observed differences in retail prices charged by gasoline stations.7

16. The gasoline stations on Martha’s Vineyard compete on attributes other than price. There are

    different brands of gasoline sold (Mobil, Shell, and Citgo, as well as unbranded); most have a

    convenience store attached; one has a car wash (Airport Fuel Services); two have service

    stations attached (DeBettencourt Mobil and Up-Island Automotive, and XtraMart Citgo has

    one next door); and most are full service (all but Depot Corner). Exhibit 3 provides a general

    overview of the nine gasoline stations located on Martha’s Vineyard.

17. Customers take some or all of these factors into consideration when purchasing gasoline.

    Some factors may be more important to certain consumers than to others. For some

    customers, price may be the primary consideration, while others may consider location or

    other attributes of convenience (e.g., pay at the pump or full service) to be most important.


Differentiation? Location Patterns of Retail Outlets,” The Review of Economics and Statistics, Vol. 84, No.
1 (Feb., 2002), pp. 162-175; Neilson, Henry and Donald Bruce, The Geographic Extent of Gasoline
Markets, Working Paper, August 2007, http://web.utk.edu/~dbruce/neilson.bruce.gasoline.pdf.
6
  For example, based on data provided by Oil Price Information Service (OPIS), the average retail price for
regular unleaded gasoline reported at gasoline stations in Barnstable County that brands such as Mobil and
Shell were as much as $0.10 to $0.16 higher than retail prices reported at gasoline stations that sell other
brands (e.g., Cumberland Farms, Hess) or unbranded gasoline.
7
  See, for example, Shepard, Andrea, “Price Discrimination and Retail Configuration,” The Journal of
Political Economy, Vol. 99, No. 1 (February 1991), pp. 30-53; “Do Rockets Rise Faster and Feathers Fall
Slower in an Atmosphere of Local Market Power? Evidence from the Retail Gasoline Market” The Journal
of Industrial Economics, Vol. LVI, No. 3, (September 2008), pp. 581-612; Hasting, Justine S., “Vertical
Relationships and Competition in Retail Gasoline Markets: Empirical Evidence from Contract Changes in
Southern California,” The American Economic Review, Vol. 94, No. 1 (March 2004), pp. 317-328.
                                                     6
                                        CONFIDENTIAL
    Other customers may be loyal to a particular brand or to a particular station. Thus, as a result,

    individual gasoline stations may face different levels of price responsiveness—price

    differences alone may have little effect on consumers’ willingness to switch to other gasoline

    stations, and this willingness to switch may differ across consumers.8

             IV. ECONOMIC ISSUES RELEVANT TO ASSESSING ALLEGATIONS OF
                 PRICE FIXING

18. I have been asked to address the claims brought forth by plaintiffs regarding the allegations

    that defendants collectively colluded to raise and maintain the retail price of gasoline at

    artificially high levels. I examine the patterns and level of prices observed for the defendants

    and the other gasoline stations on Martha’s Vineyard. I analyze whether the prices charged

    by the defendants appear to reflect any type of cooperative behavior, or whether prices simply

    reflect an ordinary competitive marketplace. I also consider the extent to which gasoline

    prices in other geographic areas (e.g., Barnstable County (Cape Cod), Nantucket) can be used

    as a basis for assessing the economics of the marketplace for retail gasoline on Martha’s

    Vineyard. Finally, I review the testimony of numerous individuals deposed in this matter

    regarding the extent to which their testimony relates to many of the empirical observations in

    this case.

                     A. Patterns of Defendants’ Prices are Similar to Prices at Non-
                        defendant Gasoline Stations on Martha’s Vineyard

19. I reviewed and analyzed the retail prices for regular unleaded gasoline for the defendants

    during the relevant time period. I compare these prices to the retail prices charged by other

    gasoline stations on Martha’s Vineyard.




8
 See, for example, Borenstein, Severin, “Selling Costs and Switching Costs: Explaining Retail Gasoline
margins,” RAND Journal of Economics, Vol. 22, No. 3, (Autumn 1991), pp. 354-369.
                                                   7
                                       CONFIDENTIAL
20. Exhibit 4 contains the reported prices for the nine gasoline stations on Martha’s Vineyard for

    the August 2003 to December 2008 time period.9 The retail prices charged by the four

    defendants are similar to the prices charged by the non-defendants and follow similar trends

    during this period.10

21. Disaggregating these data by year allows me to examine more closely the relative patterns of

    the defendants’ and non-defendants’ prices. Exhibits 5-10 show that the non-defendants’

    retail prices are generally similar to the defendants’ prices—at times higher, and at other

    times lower. For example, during 2003, there were several instances where prices for regular

    unleaded gasoline at Jim’s Fuel Station, Airport Fuel Services, and Up-Island Automotive

    were higher than the prices charged at XtraMart Citgo or Tisbury Shell; for several months in

    2004, the prices at Up-Island Automotive were higher than any gasoline station on the island;

    and in late-2005, prices at Jim’s Fuel Station were frequently the highest prices among all

    stations on the island.

22. The price patterns observed on Martha’s Vineyard are similar to patterns observed among

    gasoline stations in municipalities in Barnstable County. For example, Exhibits 11-17 show

    the distribution of prices across stations in Orleans, MA. There are several instances where

    price levels for several gasoline stations in Orleans remain constant for long periods of time,

    as well as prices that are very similar, if not identical, between two or more stations during

    this time period. The price dispersion across various stations in Orleans is also similar to

    Martha’s Vineyard, with price differences as large as $0.15 to $0.25 on numerous occasions.

    Similar observations can be made in other towns on Cape Cod.




9
  The price data for the four defendants and Jim’s Fuel Station, Airport Fuel Services, and Up-Island
Automotive were obtained through the production of documents in this case. I supplemented data for Jim’s
Fuel Station and Up-Island Automotive with additional price data provided by OPIS. OPIS is my only
source of retail price data for DeBettencourt Mobil and Menemsha Texaco.
10
   As I discuss later in my report, the observed fluctuations in Exhibit 4 reflect primarily the underlying
price of gasoline, as represented by the average rack price for gasoline received from Providence RI.
                                                    8
                                        CONFIDENTIAL
23. The observation that prices at two or more of the defendants’ stations are similar for long

     periods of time is not uncommon. Based on an examination of the price data in Barnstable

     County, I found this to be a very common occurrence. Some examples include:

             •    Sav On (Unbranded) and Cumberland Farms, Hyannis – These two stations are

                  located 0.5 miles apart from one another and the average price difference over

                  1,256 overlapping11 days was $0.0039;

             •    Jay Mart Inc (Unbranded) and South Yarmouth Getty, South Yarmouth – These

                  two stations are located 0.08 miles apart from one another and the average price

                  difference over 277 overlapping days was $0.0043;

             •    Bill’s Sunoco Station Gas Service and Gills Automotive (Citgo), Orleans –

                  These two stations are located 0.6 miles apart from one another and the average

                  price difference over 712 overlapping days was $0.0038.

             •    Buzzards Bay Xtra Mart (Citgo) and Nouria Energy Corpor (Shell), Buzzards

                  Bay – These two stations are located 0.06 miles apart from one another and the

                  average price difference over 763 overlapping days was $0.0023.

     The price differences reported for the examples above are smaller than the differences

     reported between the two Vineyard Haven gasoline stations, Tisbury Shell and XtraMart

     Citgo (average price difference over 1,460 overlapping days was $0.0064).

24. It is also not uncommon to see price similarities between two stations that are located farther

     apart. For example,

             •    Mashpee Shell and Mashpee Mobil, Mashpee – These two stations are located

                  3.1 miles apart from one another and the average price difference over 60

                  overlapping days was $0.0010;


11
   “Overlapping days” refers to those days on which I have retail price data points for both gasoline
stations.
                                                     9
                                        CONFIDENTIAL
               •   Two Getty stations, Falmouth – These two stations are located 5.4 miles apart

                   from one another and the average price difference over 1,255 overlapping days

                   was $0.0120;

25. The patterns of the defendants’ prices are consistent with a competitive marketplace. The

       descriptive data presented in the exhibits discussed above reflect price behavior that is

       consistent with prices in other geographic areas where gasoline stations compete.

                        B. Defendants’ Retail Price Levels are Not “Artificially High”

26. Plaintiffs allege that “[t]he price for gasoline sold by the defendants on Martha’s Vineyard is

       artificially high and does not reflect market prices.”12 In this section, I compare the retail

       price levels at defendant stations to reported price levels at other gasoline stations on

       Martha’s Vineyard, Barnstable County, and Nantucket to assess the extent to which the

       defendants’ prices are set at competitive levels.

27. I examine the prices charged by the stations nearest to the defendants, some of which are

       closer to defendant stations than the defendant stations are to one another. The non-defendant

       gasoline stations on Martha’s Vineyard are DeBettencourt Mobil, Jim’s Fuel Station, Airport

       Fuel Services, Up-Island Automotive, and Menemsha Texaco. As discussed above (see

       Exhibits 4-10), the price levels charged by these stations are often similar to each other while

       sometimes displaying more pronounced price variations. These gasoline stations are most

       comparable to the defendant gasoline stations from both a supply (e.g., cost structure) and

       demand (e.g., type of consumer) perspective.

28. Moreover, the proximity of these gasoline stations would prevent any type of cooperative

       pricing behavior to occur among the four defendants—in particular, Jim’s Fuel Station and

       Debettencourt Mobil, which are only a couple miles away from two of the defendants. These




12
     Second Amended Complaint and Jury Demand, p. 9.
                                                    10
                                         CONFIDENTIAL
     two stations, located in Oak Bluffs—one of the most populated towns on Martha’s Vineyard13

     —provide a ready alternative to customers. Airport Fuel Services, only approximately five

     miles away from all four defendants is a third nearby alternative. Even Up-Island

     Automotive is closer to the Vineyard Haven stations than are the Edgartown stations. These

     stations are all established retail gasoline businesses and would have the ability to discipline

     supra-competitive pricing, if necessary.14

29. Evidence presented through deposition testimony shows station owners’ pricing decisions to

     be based on observations of prices charged by their competitors.15 Based on my review of the

     testimony there appears to be no evidence that the defendants, or any sub-group of

     defendants, conspired with each other to fix retail gasoline prices. The pricing decisions of

     the station owners suggest a competitive marketplace. For example,

             •    “Q. Who do you consider to be your competitors?
             •    A. The closer the station, the more I consider them competition, but roughly, I
                  look at the whole island.
             •    Q. But to the extent that you look at or get information on price being charged at
                  other gas stations, what other gas stations do you look at?
             •    A. I typically will look at DeBettencourt station which is in Oak Bluffs. I look at
                  what -- there's two stations in Vineyard Haven that I'll look at, and there's two
                  stations in Edgartown that I'll look at.
             •    Q. When you say look at, who does the looking?
             •    A. I personally do quite a bit, but again, I'll ask my employees to drive by, you
                  know, to find out what the price is.
             •    Q. Do you ever call those stations and say what are you charging?
             •    A. You know, I don't think I have ever done that myself because when I ask an
                  employee to drive by, they'll say I'll just call, you know, they don't know who I
                  am. Sometimes they'll give it to them, sometimes they won't.”
                                   Deposition of Michael Wallace (December 16, 2008, pp.49-50)

             •    “Q. While [What] factors do you take into account in setting the price of gasoline
                  that you are selling at your two stations in Edgartown?

13
   Population data from http://www.census.gov/popest/cities/cities.html.
14
   Based on my review of the documents in this matter, these gasoline stations are not insignificant players
in the marketplace. For example, Jim Fuel Station sells approximately 400,000-500,000 gallons per year.
Deposition of Michael Wallace, December 16, 2008, p. 39.
15
   The owner of Tisbury Shell testified that he sets prices based on a target, in order to maintain a constant
difference between the station’s retail price and its costs. Deposition of Ralph Packer, December 11, 2008.
                                                     11
                                         CONFIDENTIAL
               •   A. I let the market decide that. I do a market survey.
               •   Q. What is involved in the market survey?
               •   A. I get in my truck and I drive around the island and look at all the gas stations
                   and their posted prices.”
                                    Deposition of Louis R. Paciello (December 17, 2008, p.45)

30. Moreover, as described in deposition testimony, efforts to increase sales via lower prices have

       been unsuccessful. The operator of Jim’s Fuel Service, Michael Wallace, stated that his

       gasoline sales would not noticeably increase if he were to lower his prices, and even noted

       that he once tried lowering prices by 20 cents per gallon with minimal success.16 His

       testimony that lowering prices does not attract customers suggests that purchasers of retail

       gasoline on Martha’s Vineyard are apparently insensitive to price changes of that magnitude,

       i.e., a low price elasticity of demand.

31. The low price elasticity of demand faced by gasoline stations on Martha’s Vineyard is

       confirmed through testimony by the lead plaintiffs. As I noted above—and as discussed

       extensively in the economics literature—consumers base their gasoline purchase decisions on

       several factors, including price, brand, convenience (e.g., location), and full-serve v. self-

       serve, among others. Although plaintiffs allege that they “paid artificially inflated prices for

       gasoline,”17 they state a general lack of interest in making the effort to search for lower cost

       gasoline. Several lead plaintiffs testified that price is not a key determinant in their decision

       to purchase gasoline. Convenience appears to be the primary factor. For example,

               •   “Q. On the Vineyard, do you ever shop around for a better price?
               •   A. No.”
               •   “Q. Is price ever a factor where you buy gas on the Vineyard?
               •   A. No.”
                                    Deposition of Joan B. Kriegstein (December 5, 2008, pp.15, 23)

               •    “Q. When you’re making decisions about where to purchase gas, what factors do
                   you consider?


16
     Deposition of Michael Wallace, pp. 76-77.
17
     Second Amended Complaint and Jury Demand, p. 5.
                                                    12
                                         CONFIDENTIAL
            •   A. Not going out of my way to work.
            •   Q. So convenience. Is that the number one factor?
            •   A. For me it is.”
                                  Deposition of Nadine Monaco (January 23, 2009, pp.23-24)

            •   “Q. Are there any other factors or is convenience the only factor that you
                consider?
            •   A. Really just convenience.
            •   Q. So is it fair to say you don’t shop around for the best price?
            •   A. That’s correct.”
                                   Deposition of Henry Kriegstein (December 12, 2008, pp.37-38)

            •   “Q. The car wash and the convenience factor, and when you’re purchasing fuel,
                no matter where it is, it’s really just a matter of convenience whatever is closest
                by when you need the fuel? Is that a fair statement?
            •   A. Fair – I guess it’s fair.”
                                 Deposition of Carleen Cordwell (November 25, 2008, p.71)

32. The above deposition testimony suggests that even if gasoline stations (other defendant or

    non-defendant) charged lower retail prices, plaintiffs would not change their purchase

    practices, corroborating the testimony of Michael Wallace, the operator of Jim’s Fuel Station.

    The testimony is further supported by the actual prices observed at nearby gasoline stations

    on Martha’s Vineyard. (See Exhibits 4-10.) During the relevant time period, Up-Island

    Automotive had lower prices than many of the other stations for long periods of time and it is

    closer to Tisbury Shell or XtraMart Citgo than Edgartown Mobil or Depot Corner are to those

    two stations. Plaintiffs could have changed their purchases from Tisbury Shell or XtraMart

    Citgo to Up-Island Automotive but made no effort to do so on a regular basis. Furthermore,

    the fact that Up-Island Automotive’s prices were lower than several other stations for

    noticeable periods of time provides more evidence that the sale of retail gasoline is not a

    perfectly price competitive market.

33. Basic economics dictates that reducing prices on a product whose demand is price inelastic—

    as supported by plaintiffs’ testimony—would decrease profits for the supplier (i.e., the

    gasoline station in this case). In other words, the reduced margin to the station of lowering

                                                13
                                     CONFIDENTIAL
    price is not offset by the increase in gasoline purchased by consumers, so there is no incentive

    to reduce prices if price is not an important factor to consumers. Thus, the prices set by

    gasoline stations (defendants and non-defendants) represent a competitive equilibrium

    condition that reflects the interaction of both supply and demand factors on Martha’s

    Vineyard as well as individual profit-maximizing choices of the gasoline station operators.


                     C. Identification of Other Potentially Comparable Gasoline
                        Stations

34. Other than the five non-defendant gasoline stations on Martha’s Vineyard there are no other

    directly comparable gasoline stations in terms of price. As discussed above, variation and

    differences in price levels across stations in other geographic areas due to a host of factors,

    including the underlying cost structure, brand of gasoline, full-service vs. self-service,

    proximity of other stations, consumers’ price elasticity of demand, among others, and would

    preclude one from drawing any inferences or conclusions about the behavior of prices on the

    island. As a first step, examining station-specific prices would reveal dispersion across

    individual (or perhaps sub-groups of) gasoline stations, which would provide a more

    informed basis from which to assess relative prices across gasoline stations. A proper

    analysis would require one to control for the factors noted above before constructing a

    meaningful estimate of a comparable average price. However, most of the information

    necessary to do such an analysis is not readily available but, as I discuss below, a comparison

    of average prices by brand supports the notion that using average prices alone is not an

    economically sound approach for assessing the relevant issues in this case.

35. One potentially comparable geographic area is the island of Nantucket. As part of my data

    collection efforts, I was able to obtain from Oil Price Information Service (OPIS) some retail

    price data for Nantucket. Although there are relatively few price points reported for

    Nantucket gasoline stations, there appears to be some evidence that retail prices on Nantucket


                                                 14
                                      CONFIDENTIAL
     are similar to those on Martha’s Vineyard, particularly during the spring and summer months.

     For example,

             •   In May 2004, the average price of gasoline at defendants’ stations was $2.40; on

                 Nantucket it was $2.34;

             •   In August 2005, the average price of gasoline at defendants’ stations was $3.13;

                 on Nantucket it was $3.15;

             •   In March 2006, the average price of gasoline at defendants’ stations was $2.96;

                 on Nantucket it was $2.98;

             •   In June 2007, the average price of gasoline at defendants’ stations was $3.69; on

                 Nantucket it was $3.55; and

             •   In April 2008, the average price of gasoline at defendants’ stations was $3.98; on

                 Nantucket it was $4.00.

             V. ECONOMIC ISSUES RELEVANT TO ASSESSING PRICE GOUGING
                CLAIM

36. I examine the allegations related to price gouging by the defendants during the time period

     following Hurricanes Katrina and Rita, i.e., August 31, 2005 to December 2, 2005. During

     this time period, the alleged “market emergency period,” the retail prices for gasoline charged

     by the defendants increased in August 2005, before gradually decreasing in late-

     October/early-November 2005. In this section I analyze the behavior of these, and other

     prices before, during, and after this time period to determine the extent to which the observed

     price increases are consistent with the economics of this industry.

37. Hurricane Katrina made landfall in Louisiana on August 29, 2005. Hurricane Rita made

     landfall on September 24, 2005.18 In late August, there was a dramatic increase in oil and



18
  Traczek, Chris, “Katrina Touches All: Devastating Hurricane Leaves Mark on Americans From Coast to
Coast,” Fuel Oil News, October 1, 2005; Paganie, David and Pam Boschee, “Operators Begin Cleanup,
                                                 15
                                      CONFIDENTIAL
    wholesale gasoline prices throughout the U.S., including the Northeast, due to the anticipated

    impact the storms would have on the supply and delivery of oil and gasoline.19

38. During this time period prices increased throughout the U.S. Focusing on the local

    geographic area during the alleged market emergency period, I find that percentage changes

    in the defendants’ prices were similar to those at non-defendant gasoline stations on Martha’s

    Vineyard and less than those on Barnstable County. Exhibit 18 shows on a monthly basis the

    absolute and percentage change in price during the following months. The average price

    increase for the four defendants between August 2005 and September 2005 was 16.3 percent.

    During these same time periods, retail gasoline prices increased 16.4 percent for the non-

    defendant stations on Martha’s Vineyard, and 20.2 percent in Barnstable County. More

    generally, the percentage increase in retail prices for the four defendants is consistent with the

    increase in the national average price of gasoline of 16.7 percent found by the FTC in their

    investigation of gasoline price increases following Hurricanes Katrina and Rita.20

39. In order to determine the extent to which the two hurricanes correlate with increases in both

    gasoline prices and costs in the Northeast, I compiled information on the average rack price

    for gasoline. The rack price is the price paid at the suppliers’ distribution terminals. The data

    I obtained and used for this analysis are represented as the average rack price.

40. Exhibits 19-20 show the average rack prices for the U.S., Boston, and Providence. As shown

    in the exhibits, rack prices spiked up at the end of August and again in late-September of

    2005, corresponding with the arrival of each hurricane. For example, the average rack price

    for Providence increased 15.2 percent from August to September 2005. In general, the price


Repair from Katrina, Rita: Cost Set at Twice that of Sept. 11, Attack,” Offshore, October 1, 2005; Aldrich,
Lester, “DJ Texas Forest Damage from Rita Seen At $833 Mln,” Dow Jones Commodities Service,
September 30, 2005.
19
   See, for example, Edmonds, Christopher, “Katrina Hits the Energy Patch,” RealMoney.com, August 29,
2005; Gavin, Robert and Chris Reidy, “Gas Prices Exceed $3; U.S. to Tap Oil Reserves, The Boston Globe,
September 1, 2005; Gavin, Robert, “Inflation Skyrockets after Hurricanes,” The Boston Globe, October 15,
2005.
20
   FTC Report, p. 67.
                                                    16
                                        CONFIDENTIAL
     increases were said to reflect the damage caused to oil wells and pipelines amidst an already

     “tight supply” due to the “world economy’s increased appetite for energy.”21

41. The observed relationship between retail and rack prices before, during, and after the alleged

     market emergency period is not an uncommon relationship. Exhibits 21-22 show the co-

     movements of retail prices at stations on Martha’s Vineyard and in Barnstable County with

     Providence rack prices during the relevant time period. In both instances, the correlation

     between average retail and average rack prices from August 2003 to December 2008 is high

     (Exhibit 21, correlation coefficient = 0.9745; Exhibit 22, correlation coefficient = 0.9780).

     The variation in price differences observed during the August to December 2005 time period

     appears no different than the variation observed during other times of rack price volatility.

     Similarly, as shown in Exhibit 23, these patterns can be seen for the U.S. In summary, there

     is nothing distinctive in the differences observed between retail and rack prices on Martha’s

     Vineyard.

42. As noted above, there is a very strong correlation between retail prices and rack prices. The

     differences in retail and rack for Dukes County, which are reported in Exhibits 24-25, vary

     over time. There appears to be slightly larger upward swings in these differences during the

     late 2005 time period (following Hurricanes Katrina and Rita) and again in mid-2008 (when

     the price of oil reached all-time highs).22 Not surprisingly, there are also several noticeable

     decreases in the difference between retail and rack prices.23 Exhibits 26-27 show these

     differences for gasoline stations in Barnstable County and the trends are remarkably similar


21
   Howe, Peter J., “Making Sense of Varying Gas Prices in Massachusetts, The Boston Globe, September 7,
2005; Stein, Charles, “Squeezed by Energy; Market Forces, Not Gouging, to Blame for Sudden Run-Up,”
The Boston Globe, September 10, 2005.
22
   Baskin, Brian, “Crude Pierces the $115 Mark --- Rice Futures Rally To a Record High; Strike Lifts
Copper,” The Wall Street Journal, April 17, 2008; Fitzgerald, Jay, “Gas Leaps $4 Barrier; Station Owners:
Record Prices Due to High Costs,” Boston Herald, May 13, 2008.
23
   The differences between the defendants’ retail prices and their reported costs show patterns to those in
Exhibits 24 and 25. I have reviewed documents for the fourth defendant, Tisbury Shell. Those documents
indicate that the difference between the retail price and the reported cost of unleaded gasoline to Tisbury
Shell was approximately $0.54 in the months prior to, during, and after this time period.
                                                    17
                                        CONFIDENTIAL
     to the trends observed in Exhibits 24-25. The observed variation in these differences reflects

     the price-cost dynamics inherent in this industry.

43. It has long been observed that when underlying oil or wholesale prices change, the retail price

     response can be asymmetric in that retail prices increase at a faster rate when costs increase

     than prices decrease when costs decrease. This phenomenon—studied extensively for almost

     20 years—is generally referred to as “rockets and feathers,” to describe the trend of prices

     rising more quickly than they decline.24 This is not a pattern suggestive of anything other

     than common price trends in this industry.

             VI. REBUTTAL OF PROFESSOR GOLLOP

44. I have examined the report of Professor Frank M. Gollop, submitted on behalf of the

     plaintiffs. He states that he was asked to address four issues within the context of the

     plaintiffs’ claims:

             “(1) if the defendants priced their gasoline on Martha’s Vineyard at competitive or

             supra-competitive levels between August 2003 and July 2007, (2) if the data,

             standing alone, are sufficient for an economist to conclude that the defendants acted

             independently or cooperatively, (3) whether the data yield any ‘plus factors’ from

             which cooperative behavior could be inferred, and (4) whether the defendants

             engaged in price gouging following hurricanes Katrina and Rita.”25



24
   See, for example, Bacon, Robert W. “Rockets and Feathers: the Asymmetric Speed of Adjustment of
UK Retail Gasoline Prices to Cost Changes,” Energy Economics, (July 1991), pp. 211-218; Borenstein,
Severin, A. Colin Cameron, Richard Gilbert “Do Gasoline Prices Respond Asymmetrically to Crude Oil
Price Changes?” The Quarterly Journal of Economics, Vol. 112, No. 1 (February 1997), pp. 305-339;
Peltzman, Sam, “Prices Rise Faster than They Fall,” The Journal of Political Economy, Vol. 108, No. 3
(June 2000), pp. 466-502; Lewis, Matthew, “Asymmetric Price Adjustment and Consumer Search: An
Examination of the Retail Gasoline Market” Working Paper, The Ohio State University, Department of
Economics (July 26, 2005); Deltas, George, “Retail Gasoline Price Dynamics and Local Market Power,”
Working Paper, University of Illinois, Urbana-Champaign, (August 2004); Verlinda, Jeremy A., “Do
Rockets Rise Faster and Feathers Fall Slower in an Atmosphere of Local Market Power? Evidence from the
Retail Gasoline Market” The Journal of Industrial Economics, Vol. LVI, No. 3, (September 2008), pp. 581-
612.
25
   Gollop Report, p. 2.
                                                  18
                                      CONFIDENTIAL
     I address these issues below within the context of Professor Gollop’s report and show that his

     analysis relies on several unsubstantiated assumptions and contains numerous fundamental

     flaws, all of which undermine his conclusions.

                      A. Professor Gollop’s Preliminary Assumptions about the Market for
                         the Retail Sales of Gasoline on Martha’s Vineyard

45. One of the foundations of Professor Gollop’s analysis is his assumption that the market for

     retail gasoline is a market in which the products being sold by the defendants are “perfectly

     homogeneous products (i.e., indistinguishable, perfect substitutes)” and that the defendant

     stations “thereby [face] highly if not perfectly elastic inter-station demand.”26 Were this the

     case, even the smallest difference in price between gasoline stations would cause consumers

     to buy gasoline from the station with the lowest price.27 The assumption does not hold, and

     is refuted by: (1) the data; (2) the plaintiffs’ depositions; and (3) the fact that retail gasoline

     stations compete on several dimensions, of which price is but one.

46. The evidence presented in this case suggest that price differentials as large as $0.10 to $0.20

     per gallon have little, if any effect on consumers’ gasoline purchase decisions. Testimony by

     the plaintiffs themselves rejects Professor Gollop’s assumption that defendant stations face

     “perfectly elastic inter-station demand.” Moreover, the persistent price level dispersion

     observed across gasoline stations on Martha’s Vineyard and in Barnstable County confirms

     that the retail sale of gasoline is not a marketplace in which stations compete solely on price.

47. Professor Gollop apparently assumes, without providing any proposed basis, that the four

     defendant gasoline stations constitute a “market.” His report is entirely silent on the

     presence of the five other gasoline stations located on Martha’s Vineyard and the extent to




26
 Gollop Report, pp. 20, 21.
27
 For a discussion of perfectly elastic demand, see Pindyck, Robert S. and Daniel L. Rubinfeld,
Microeconomics, Prentice-Hall, Inc. 5th Edition, 2001, pp. 30-32.
                                                    19
                                        CONFIDENTIAL
     which they participate in the sale of retail gasoline on the island.28 If one considers a gasoline

     station to be in the same geographic market as gasoline stations located approximately more

     than seven miles away, then one should, at a minimum, also include all other stations located

     within that distance, or provide a compelling explanation for their exclusion. Professor

     Gollop’s failure to include, or even consider, the other, nearer gasoline stations is a fatal flaw

     in his analysis. Moreover, even if one considers a scenario, albeit an incorrect one, where

     these four gasoline stations comprise the relevant geographic market, the persistent price

     dispersion across the stations reflects a market that is not perfectly price competitive. Thus,

     regardless of his market assumption, Professor Gollop’s analysis is premised on an unrealistic

     model of competition.

                      B. Professor Gollop’s Conclusion Regarding Defendants’ “Supra-
                         competitive Price” is based on Flawed Analyses

48. Professor Gollop purports to compare the defendants’ retail prices to the prices of a group of

     gasoline stations located in Barnstable County and finds “that gasoline at the defendants’

     stations was sold at supra-competitive prices.”29 He states that he uses this particular group

     of stations—located in Falmouth, Hyannis, and Provincetown— “because of its proximity to

     the island but also because Cape and island stations experience the same seasonal business

     fluctuations and, equally important, receive their gasoline from the same Providence RI

     terminals.”30 He asserts that, after accounting for the additional costs associated with selling

     gasoline on Martha’s Vineyard, there remain “unexplained price differences” between

     defendants’ prices and prices on mainland Cape Cod.

49. This analysis is flawed in several ways. The most serious flaw is that Professor Gollop

     implicitly assumes, after making his cost adjustments, that the numerous characteristics of



28
   He also calculates “market shares” using only the volume of gasoline sold by the four defendants.
(Gollop report, p. 26, Exhibit 6).
29
   Gollop Report, p. 3.
30
   Gollop Report, p. 5.
                                                    20
                                        CONFIDENTIAL
     gasoline stations on Cape Cod are the same as those operated by the defendants, e.g., brand of

     gasoline, location of station, concentration of stations within certain geographic areas,

     whether a station is full-service or self-service, among others. All of these characteristics

     may to some extent impact retail price levels. Additionally, he asserts, without providing any

     basis, that business fluctuations are identical on Martha’s Vineyard and his chosen subset of

     Cape Cod stations.

50. Professor Gollop uses data only for Falmouth, Hyannis, and Provincetown. He computes

     simple average measures of price across these three towns, and uses these measures as a basis

     for comparison in his analysis. However, OPIS data are available for all towns in Barnstable

     County. Thus, at a minimum, he could have used the data from all the gasoline stations

     across Barnstable County and examined the price variation across towns, across different

     brands of gasoline, and across other characteristics of these stations. Unpacking the station-

     specific information would reveal substantial price variation across the various stations, and

     these stations differ from each other in various attributes, but Professor Gollop fails to

     consider this information in his analysis.

51. In one example for stations in Barnstable County, which is shown in Exhibits 28-29, the

     average annual difference between the retail price and the average Providence rack price

     differs by brand—brands such as Mobil and Shell have higher prices than other brands;

     lesser-known brands and unbranded gasoline stations have the lowest prices.31 In some years,

     the difference in price between the highest and lowest priced brands is approximately $0.10-

     $0.16.

52. As seen in the preceding paragraph, brand is one characteristic correlated with price variation,

     and there are numerous other characteristics of these stations not available from OPIS that are

31
  Academic studies have found that price differences can persist by brand. See, for example, Shepard,
Andrea, “Price Discrimination and Retail Configuration,” The Journal of Political Economy, Vol. 99, No. 1
(Feb., 1991), pp. 30-53; Thompson, Jennifer R., “Brand Loyalty and Gasoline Pricing in Sacramento,”
Giannini Foundation of Agricultural Economics, University of California, pp. 9-11.
                                                   21
                                       CONFIDENTIAL
       likely to impact price level. As noted earlier, variation in price levels is often driven by

       factors other than just underlying costs. Professor Gollop’s analysis fails to account for any

       of the factors.

53. Moreover, Professor Gollop assumes that the price elasticity of demand facing his chosen

       subset of Cape Cod stations (in Falmouth, Hyannis, and Provincetown) is identical to the

       price elasticity of demand facing defendants. That is, he assumes that customers on Cape

       Cod and Martha’s Vineyard are all very responsive to price, even though the testimony of the

       plaintiffs in this case relates to “convenience” and “price not being a factor” when purchasing

       gasoline. He neither addresses this conflict for the Martha’s Vineyard stations nor does he

       provide any assessment of how price responsive customers are in Falmouth, Hyannis, and

       Provincetown.

54. As noted above, one potential comparable geographic area is the island of Nantucket. OPIS

       provides only limited data for four gasoline stations on this island but there appears to be

       several time periods where the prices at those gasoline stations were as high, if not higher,

       than the defendants’ prices. While there may remain certain differences in station

       characteristics, which might contribute to differences in observed prices, to the extent one

       wishes to compare the Martha’s Vineyard gasoline stations to stations elsewhere, Nantucket

       seems an obvious choice. Professor Gollop ignores Nantucket.

55. As part of his report, Professor Gollop looks at whether inferences can be made about

       potential cooperative behavior among the defendants by examining the defendants’ retail

       prices and costs during three limited time intervals of the proposed class period: May 1 –

       September 15, 2004; March 20 – May 25, 2005; and July 15 – November 7, 2005. He

       ignores the rest of the proposed class period.32 Exhibit 30 illustrates the sub-periods of his

       analysis and it shows that of the 1,827 total days (August 1, 2003 to July 31, 2008), Professor


32
     Gollop Report, pp. 19-24.
                                                    22
                                         CONFIDENTIAL
    Gollop undertakes an analysis of only 321 days, or 17.6 percent of the total days at issue.

    Moreover, his findings of “cooperative behavior” span a total of only 272 days, or 14.9

    percent of the total days at issue.

56. His lack of examining the majority of the entire time period notwithstanding, Professor

    Gollop states that he finds instances where the defendants’ prices do not fall when underlying

    costs decline. His findings, which he himself admits are “mixed,” provide no credible

    evidence that cooperative behavior existed among the four defendants during the relevant

    time period.

57. First, his analysis is premised on the assumption that the market for the sale of retail gasoline

    is perfectly price competitive, i.e., that prices should increase (decrease) immediately upon a

    corresponding change in costs. This premise remains invalid.

58. Second, the patterns of retail prices and costs observed in this case—and noted by Professor

    Gollop—are consistent with the economics of this industry, i.e., the “rockets and feathers”

    phenomenon. Prices are frequently observed to increase quickly with cost increases but to

    decrease much more slowly. He has made no demonstration that the patterns of price

    changes at issue here are in any way unusual, let alone problematic.

59. Finally, the observed relationship pattern between defendants’ retail prices and costs are

    similar to the price-cost relationship observed for numerous other gasoline stations in

    Barnstable County. Using the Providence rack price, I find that during Professor Gollop’s

    chosen subset of time periods of analysis, there were many other stations whose retail prices

    either remained the same or increased, despite decreasing rack prices. In some instances, the

    observed price increases were greater than the price increases of the defendants as cited by

    Professor Gollop. (Examples from each time period are shown in Exhibits 31-33.) In

    summary, Professor Gollop mischaracterizes his findings as something representative of




                                                 23
                                      CONFIDENTIAL
     cooperative behavior based on his false assumption of perfect price competition. His analysis

     provides no evidence of cooperative behavior among the defendants.

                       C. Professor Gollop’s Price Gouging Analysis Lacks an Economic
                          Foundation

60. Professor Gollop purports to follow the parameters laid out in the Massachusetts Price

     Gouging Law33 and findings presented in the FTC’s report on gasoline prices following

     Hurricanes Katrina and Rita34 in order to address whether the defendants engaged in price

     gouging. He reaches conclusions based on a misuse of both the state price gouging law and

     the FTC’s findings, which result in a mischaracterization of the observed increase in

     defendants’ retail prices during this time period.

61. For ease of reference I include the section of the Massachusetts price gouging law relied upon

     by Professor Gollop:

     “(1) It shall be an unfair or deceptive act or practice, during any market emergency, for any
     petroleum-related business to sell or offer to sell any petroleum product for an amount that
     represents an unconscionably high price.

     (2) A price is unconscionably high if:

             (a) the amount charged represents a gross disparity between the price of the
             petroleum product and
                  1. the price at which the same product was sold or offered for sale by the
                  petroleum-related business in the usual course of business immediately prior to
                  the onset of the market emergency, or
                  2. the price at which the same or similar petroleum product is readily obtainable
                  by other buyers in the trade area; and

             (b) the disparity is not substantially attributable to increased prices charged by the
             petroleum-related business suppliers or increased costs due to an abnormal market
             disruption.”35


33
   Gollop Report, p. 29.
34
   The FTC report states in its report that price gouging “lacks an accepted definition. It is neither a well-
defined term of art in economics, nor does any federal statute identify price gouging as a legal violation.”
(FTC Report, p. iii)
35
   940 CMR 3.00: General Regulations.
http://www.mass.gov/?pageID=cagoterminal&L=3&L0=Home&L1=Government&L2=AG's+Regulations
&sid=Cago&b=terminalcontent&f=government_Regulations_940CMR3&csid=Cago#3.18:%20Price%20
Gouging.
                                                      24
                                         CONFIDENTIAL
62. Part (2) of the Massachusetts law states that a price is “unconscionably high” if both criteria

     (parts (a) and (b)) are satisfied. Professor Gollop begins his analysis by addressing section

     (2)(a)1. in an attempt to determine whether there was a “gross disparity in prices offered by

     the defendants after Hurricanes Katrina and Rita, when compared to the prices offered

     immediately prior to the hurricanes.”36 He contrives his own definition of “gross disparity”

     by relying on a value of $3.50 which the FTC uses in its report.37 The FTC identifies in its

     survey of stations the number of stations whose retail prices rose above $3.50 following

     Hurricane Katrina but does not state nor conclude that prices over $3.50 per gallon represent

     a “gross disparity” when compared to pre-hurricane prices. That appellation by Professor

     Gollop lacks basis.

63. The FTC identified instances in the OPIS survey data used for its analysis when prices at

     stations exceeded $3.50, $3.80, and, in one instance, $4.00. It further noted that the DOE

     Gasoline Price Hotline received 23 complaints in Atlanta where prices exceeded $4.00 and

     nine complaints of prices exceeding $5.00.38 Moreover, there were gasoline stations in

     Barnstable County for which the retail price was $3.50 or higher for several days. Thus, the

     $3.50 price level was arbitrarily selected by Professor Gollop and used by him as a measure

     of “gross disparity”—a measure not used by the FTC for this purpose.

64. Professor Gollop proceeds to address section (2)(a)2. of the law by comparing defendants’

     prices to the average price for gasoline stations located in Falmouth, Hyannis, and

     Provincetown—the towns he considers the “relevant trade area.” However, Professor Gollop

     provides no basis for the use of this term, simply stating that “[a]s a matter of economics, the

     term “trade area,” relevant to an investigation of price gouging, must be defined differently

36
   Gollop Report, p. 31.
37
   I am not aware of any published economic studies that define the terms “gross disparity” and
“unconscionably high” as it relates to prices. Professor Gollop creates his own definition by relying on the
FTC Report “for quantifying the criteria constituting unconscionable pricing as defined in the
Massachusetts Price Gouging Law,” (Gollop Expert Report, p. 30) even though the FTC report uses neither
term in its analysis.
38
   FTC Report, pp. 109-110.
                                                    25
                                        CONFIDENTIAL
     than the more common economic term “market area.”39,40 He assumes that gasoline stations

     in Barnstable County exist in the same “trade area” because they all purchase gasoline from

     the same Providence, RI rack terminals. He has not demonstrated in any other way that

     gasoline stations on Martha’s Vineyard exist in the same “trade area” as stations in Falmouth,

     Hyannis, and Provincetown.

65. If one somehow assumes that Professor Gollop’s use of Falmouth, Hyannis, and

     Provincetown as the relevant “trade area” is economically sound, there still remains a critical

     error in his analysis of the price data during this period that renders his conclusion false. He

     sets out to examine whether during the alleged market emergency period there was a “gross

     disparity between defendants’ prices and prices in the relevant trade area.”41 However, his

     analysis simply consists of a comparison between the defendants’ prices and the average

     price at stations in Hyannis, Falmouth, and Provincetown during the September to November

     2005 time period.

66. The relevant analysis in this case is whether defendants’ prices increased relative to prices for

     gasoline stations in a comparable area from August to September 2005. Although I do not

     agree that Professor Gollop’s “trade area” is appropriate for this analysis, under this approach

     Professor Gollop’s own analysis would show that defendants’ prices decreased relative to the

     average price for stations in Falmouth, Hyannis, and Provincetown.42      Based on my review

     of the price data, from August to September 2005 the defendants’ average price increased by

     $0.51 while the average price for the three towns in Professor Gollop’s “trade area”—

     Falmouth, Hyannis, and Provincetown—increased by $0.53, $0.58, and $0.51, respectively.

67. The last part of Professor Gollop’s analysis focuses on whether observed price increases can

     be attributed to increased costs, but again he misuses information provided by the FTC to

39
   Gollop Report, p. 33.
40
   He also does not define “market area” for purposes of his report.
41
   Gollop Report, p. 33.
42
   See Gollop Report, Exhibit 1.
                                                     26
                                         CONFIDENTIAL
     support his conclusion. In particular, he relies on a quote in the FTC report, which states that

     a retail gasoline station had “a price increase not substantially explained by increased costs if

     its gross margin increased by more than five cents per gallon or more between August and

     September 2005.”43 He then states that the increase in margins for the defendants exceeded

     $0.05 from August to September 2005 and then concludes that “the price ‘disparity is not

     substantially attributable to increased prices charged by the petroleum-related business

     suppliers or increased costs due to an abnormal market disruption.’”44,45 However, Professor

     Gollop fails to carry out the additional test employed by the FTC in instances where the gross

     margin increase is greater than $0.05.

68. Specifically, the FTC notes that “Katrina’s impact on gasoline prices varied substantially in

     different areas of the country” and that the vast majority of retailers with increased gross

     margins are located in PADD I (which includes the Northeast region of the U.S.).46 As a

     result, the FTC analyzed local market prices from the Energy Information Administration

     (EIA) and OPIS to determine whether local market trends may have affected the gasoline

     stations’ margins. Thus, they derive a second threshold test for stations whose gross margins

     increased by more than $0.05—and most importantly, a test ignored by Professor Gollop—by

     comparing the retail price increase for those stations to the average price increase of stations

     in the local market area. If the station’s price increase from August to September 2005 did

     not exceed the average price increase of the local market area by more than $0.05, then it is

     not appropriate to conclude that the gasoline stations engaged in price gouging.

69. Applying the FTC’s secondary threshold I find that the increase in the defendants’ prices was

     not more than $0.05 above the average increase in prices observed in Professor Gollop’s

     “trade area.” Exhibit 34 compares the average increase in defendants’ prices to the average


43
   Gollop Report, p. 35.
44
   See Gollop Report, Exhibit 13.
45
   Gollop Report, p. 36.
46
   FTC Report, pp. 6, 152.
                                                  27
                                       CONFIDENTIAL
   increase for three groups of gasoline stations—the non-defendant stations on Martha’s

   Vineyard, stations in Barnstable County, and stations in Professor Gollop’s “trade area.” The

   average increase in defendants’ prices ($0.51) was not more than $0.05 above the average

   increase reported for any of these groups of stations. The average increase in prices in

   Professor Gollop’s trade area was nearly $0.06 higher than the average defendants’ price

   increase. Thus, when using the FTC’s methodology, the one on which Professor Gollop bases

   his analysis, the defendants did not engage in price gouging.




Signed:


Michael Quinn
Managing Principal
April 30, 2009




                                               28
                                    CONFIDENTIAL
             Confidential




APPENDIX A
                                           Appendix A

                                     MICHAEL QUINN, Ph.D.
                                        Managing Principal

Phone: 617.425.8188                                                        111 Huntington Avenue
Fax: 617.425.8001                                                                      Tenth Floor
mquinn@analysisgroup.com                                                       Boston, MA 02199


Michael Quinn specializes in the application of economics and finance to issues in the natural gas
industry, as well as investment management. He has served as an expert on matters involving
natural gas transportation, distribution, storage, and commodity markets, as well as electricity
transmission and distribution. He has worked with leading academic experts from prominent
institutions on cases involving issues such as commodity market manipulation, risk management
practices, and hedging strategies.

On natural gas matters, he has consulted to governments and government regulators (including
the U.S. Federal Energy Regulatory Commission, Mexico’s energy regulator, the government of
Singapore, the state of Victoria in Australia, Argentina’s energy regulator, and New Zealand’s
Treasury Department, among others), non-governmental organizations (“NGOs,” including the
World Bank and the Asian Development Bank), and numerous private companies all over the
world. He has provided training sessions for energy market regulators. He has advised on both
physical gas market issues as well as on futures and derivatives trading to government entities,
NGOs, and private firms. Dr. Quinn has advised governments on prices and pricing
methodologies for natural gas, natural gas price negotiations, industry restructuring, contractual
disputes over pricing, and rate design for pipeline systems. For such clients, he has analyzed
issues of market power in natural gas matters involving potential acquisitions as well as the
effects of industry restructuring on the potential for the exercise of market power.

He has supported academics and managed case teams involving mutual fund market-timing,
management fee litigation, side-by-side portfolio management, and portfolio trading costs. He
has led case teams in support of academic experts on mutual market-timing matters before the
Securities and Exchange Commission, the Massachusetts Secretary of the Commonwealth, and
the New York Attorney General’s office. This work has involved large-scale analyses of
identifying market-timing activity, measuring dilution, and analyzing fund portfolio trading costs.
On mutual fund 36(b) excessive fee cases, he has supported experts examining issues of
competition, scale economies, 12b-1 fees, profitability, retail vs. institutional comparisons, and
governance.
                                                                            Michael Quinn, page 2

Prior to joining Analysis Group, Dr. Quinn also taught micro-economic theory, statistics, and
econometrics at the graduate and undergraduate levels at Princeton and Tufts Universities.

EDUCATION

Ph.D. Economics, Princeton University, 1995.
M.A. Economics, Princeton University, 1992.
S.B. Economics, Massachusetts Institute of Technology, 1986.

EMPLOYMENT HISTORY

2001-           Analysis Group, Inc., Boston, MA

1994-2001       National Economic Research Associates, Inc., Cambridge, MA
                Senior Consultant

2000            Tufts University, Medford, MA
                Lecturer, Intermediate Microeconomics

1993-1994       Woodrow Wilson School, Princeton University, Princeton, NJ
                Lecturer. Graduate Econometrics and Public Policy; Graduate Quantitative
                Analysis: Advanced.

1991-1994       Computing Information and Technology, Princeton University, Princeton, NJ
                Statistical Consultant: SAS and Stata.

1986-1989       National Economic Research Associates, Inc., Cambridge, MA
                Analyst

PROFESSIONAL AFFILIATIONS & FELLOWSHIPS

Member, American Economics Association, Econometrics Society.
Referee for The American Economic Review.
Bradley Foundation Fellowship, September 1992 - June 1994
Princeton University Fellowship, September 1989 - June 1993


EXPERT REPORTS, TESTIMONIES, AND AFFIDAVITS

    U.S. Commodity Futures Trading Commission v. Amaranth Advisors, L.L.C., Amaranth
    Advisors (Calgary) ULC and Brian Hunter , United States District Court, Southern
    District of New York, Case No. 07 Civ. 6682 (DC), Expert Report, March 27, 2009.

    Before the Federal Energy Regulatory Commission, Order to Show Cause and Notice of
    Proposed Penalties (Respondents: National Fuel Marketing Company, LLC, et al.)
    Docket No. IN09-10, Affidavit assisting counsel with evaluating and responding to
    FERC’s claims regarding natural gas market manipulation, February 17, 2009.

    Before the Federal Energy Regulatory Commission, Office of Enforcement, Notice of
    Intent to Recommend the Commission Issue an Order to Show Cause (Respondents:
    National Fuel Marketing Company, LLC, et al.) Affidavit assisting counsel with
                                                                         Michael Quinn, page 3

evaluating and responding to Staff’s claims regarding natural gas market manipulation,
December 5, 2008.

City Oriente v. Ecuador, Expert Report in response to: “Evaluation of Damage to City
Oriente Limited in Ecuador,” ICSID Arbitration Case ARB/06/21, July 14, 2008.
Valuing future crude oil production.

Before the Federal Energy Regulatory Commission, Order to Show Cause and Notice of
Proposed Penalties (Respondents: Amaranth Advisors L.L.C., Amaranth LLC, Amaranth
Management Limited Partnership, Amaranth International Limited, Amaranth Partners
LLC, Amaranth Capital Partners LLC, Amaranth Group Inc., Amaranth Advisors
(Calgary) ULC, Brian Hunter, Matthew Donohoe) Docket No. IN07-26, Affidavit
assisting counsel with evaluating and responding to FERC’s claims regarding natural gas
price manipulation, December 14, 2007.

Nelson Brothers, LLC v. Cherokee Nitrogen v. Dynegy Marketing & Trade; Dynegy,
Inc., Circuit Court of Colbert County, State of Alabama, File No. CV-2003-142JMH,
Deposition, June 1, 2007.

Nelson Brothers, LLC v. Cherokee Nitrogen v. Dynegy Marketing & Trade; Dynegy,
Inc., Circuit Court of Colbert County, State of Alabama, File No. CV-2003-142JMH,
Expert Report, March 15, 2007.

Nelson Brothers, LLC v. Cherokee Nitrogen v. Dynegy Marketing & Trade; Dynegy,
Inc., Circuit Court of Colbert County, State of Alabama, File No. CV-2003-142JMH,
Affidavit, August 22, 2006.

E. & J. Gallo Winery vs. Encana Corporation, and WD Energy Services Inc., United
States District Court, Eastern District of California, Case No.: CV F 03-5412 AWI LJO,
Declaration, August 10, 2005

E. & J. Gallo Winery vs. Encana Corporation, and WD Energy Services Inc., United
States District Court, Eastern District of California, Case No.: CV F 03-5412 AWI LJO,
Deposition, July 12, 2005.

E. & J. Gallo Winery vs. Encana Corporation, and WD Energy Services Inc., United
States District Court, Eastern District of California, Case No.: CV F 03-5412 AWI LJO,
Supplemental Expert Report, June 24, 2005.

E. & J. Gallo Winery vs. Encana Corporation, and WD Energy Services Inc., United
States District Court, Eastern District of California, Case No.: CV F 03-5412 AWI LJO,
Expert Report, May 31, 2005.

Sierra Pacific Resources and Nevada Power Company vs. El Paso Corporation et al, Case
No.: CV-S-03-0414-JCM-RJJ, Affidavit on western U.S. energy markets, November 6,
2003.

Before the New Jersey Board of Public Utilities, In the Matter of Public Service Electric
and Gas Company’s Proposal to Transfer its Rights and Obligations Under its Gas
Supply and Capacity Contracts and Operating Agreements to an Unregulated Affiliate
and for Other Relief, Oral Rebuttal Testimony on behalf of Public Service Electric &
Gas, June 15, 2001. Docket GM00080564. Subject: Transferring portfolio of gas
transportation and storage contracts out of the regulated gas distribution company.
                                                                            Michael Quinn, page 4

SELECTED REPORTS

     “Final Report on Price Manipulation in Western Markets: Fact-Finding Investigation of
     Potential Manipulation of Electric and Natural Gas Prices,” Prepared by the Staff of the
     Federal Energy Regulatory Commission, March 2003, Docket No. PA02-2-000. Principal
     contributor to Chapter 2, “Analysis of Gas Trading Activity in Southern California.”
     Consulting Services for Restructuring of the Gas Industry in Singapore, July 2000 – August
     2001, for the Energy Markets Authority and the Ministry of Trade and Industry, Singapore.
     Proposing and implementing a framework for gas market competition and regulation.

PAPERS

“Live Prices and Stale Quantities: T+1 Accounting and Mutual Fund Mispricing,” with Peter
Tufano and Ryan Taliaferro, Rev. November 8, 2006.

“Large RTOs and Traditional Transmission Pricing Don’t Mix,” with Rodney Frame, Electricity
Journal, January/February 2002.
“Large RTOs May Have Implications for Gas Pipeline Investments,” Natural Gas, January 2002
“Performance-Based Regulation Options for Electricity Distribution in Alberta,” white paper for
UtiliCorp Networks Canada, 19 July 2000.
“Incentive Regulation Meets Electricity Transmission on a Grand Scale: FERC Order No. 2000
and PBR,” with Jeff D. Makholm and Cesar Herrera, Electricity Journal, May 2000.
“PBR Possibilities in Order 2000,” EnergyResource2000, May 2000.
“Worldwide Experience with Electricity Transmission PBR Plans,” EnergyResource2000, May
2000.
“Disappearing Differentials: Basis Differentials and New Pipeline Construction,” mimeograph,
May 1999.
“‘X’ Marks the Spot,” Public Utilities Fortnightly, Vol. 135, No. 22, December 1997.
“Price Cap Plans for Electricity Distribution Companies Using TFP Analysis,” NERA Working
Paper, October 1997.
“Gas in México: Tariff, Infrastructure Affect Strategies,” Natural Gas, June 1997.
“United States: Gas,” Utility Regulation 1997, edited by Ilka Luwington, Privatisation
International / Centre for the Study of Regulated Industries, with C. Augustine and J. Makholm.

PRESENTATIONS

“Transmission Pricing for Super-RTOs,” Speech given at the EUCI Dec 2001 Electric Utility
Consultants, Inc Electricity Power Market Performance Conference,” Denver, Colorado,
December 14, 2001. Conference chair.
“Performance-Based Ratemaking Workshop,” presented to Alberta’s electricity industry
stakeholders with UtiliCorp Networks Canada, Edmonton, Alberta, June 23, 2000.
4/28/09
             Confidential




APPENDIX B
                                                                                                             Confidential


                                                   Appendix B
                                               Materials Considered

Court Filings
Complaint and Jury Demand.
First Amended Complaint and Jury Demand.
Second Amended Complaint and Jury Demand.
Defendants, Drake Petroleum Co., Inc., Kenyon Oil Company and Mid-Valley Oil Company's Answer To Complaint.
Economic Analysis of Plaintiffs Claims, Expert Report Prepared by Frank M. Gollop, March 18, 2009.
Non Party Airport Fuel Services Inc., Improperly Named as Airport Service Station, Response To Drake Petroleum's Joint
Motion to Compel Persuant to Court Order Dated December 16, 2008.
Tisbury Fuel Services, Inc. vs. Martha's Vineyard Commission, Memorandum of Decision, Findings of Fact and Order,
Superior Court Civil Action 03-007.

Deposition Testimony
Deposition of Ann Buttrick Floyd, November 19, 2008.
Deposition of Doug Seward, January 16, 2009.
Deposition of Francis Paciello, December 17, 2008.
Deposition of Henry Kriegstein, December 12, 2008.
Deposition of Hilary Schultz, December 5, 2008.
Deposition of James Ahern, January 14, 2009.
Deposition of Joan Kriegstein, December 5, 2008.
Deposition of Joseph McCarthy, December 9, 2008.
Deposition of Karen Gauthier, December 9, 2008.
Deposition of Kenneth Bailey, November 19, 2008.
Deposition of Leonard Antos, December 9, 2008.
Deposition of Louis Paciello, December 17, 2008.
Deposition of Michael Wallace, December 16, 2008.
Deposition of Nadine Monaco, January 23, 2009.
Deposition of Nelson DeBettencourt, January 15, 2009.
Deposition of Paul Samar, December 9, 2008.
Deposition of R. Carleen Cordwell, November 25, 2008.
Deposition of Ralph Packer, December 11, 2008 and January 16, 2009.
Deposition of Sean Conley, December 5, 2008.
Deposition of Sidney Richards, January 28, 2009.
Deposition of Steven Wehner, December 5, 2008.
Deposition of Walter Jenkinson, January 15, 2009.
Deposition of William White, November 25, 2008.

Data Received from Client
Airport Fuel Services Prices.xls
data for Jim's Shell + Airport Service Station.xlsx
gas prices .PDF
Gas Prices Charted from Defendant Documents.Backup to Gollop Report.pdf
Martha's Vineyard May 06 05.pdf
Martha's Vineyard October 06-05.pdf
Martha's Vineyard PL's 2006 2005.pdf
MV Selling Prices Costs w-Margins.xls
MV Selling Prices Costs.xls
MV Volume Sales-40298.xls



                                                           1
                                                                                                              Confidential


mvgas_doc1.pdf
mvgas_doc2.pdf
mvgas_doc3.pdf
packer gas prices 2005.xls.XLS
PACKER SALES.XLS
Pump Read-Price History.htm
Pump Read-Price History.xls
RM Packer Customer's Credit History.pdf
up island 2003 retail gas prices-40287.pdf
up island 2004 retail gas prices-40288.pdf
up island 2005 retail gas prices-40289.pdf
up island 2006 retail gas prices-40291.pdf
up island 2007 retail gas prices-40290.pdf
up island 2008 retail gas prices-40292.pdf
Vineyard Pump price 8-1-03 to 6-30-08.xlsx
Vineyard.xls

External Data Sources
Bloomberg
Google Maps (http://maps.google.com)
Oil Price Information Service (OPIS) Data

Academic Articles and Publications
Bacon, Robert W. “Rockets and Feathers: the Asymmetric Speed of Adjustment of UK Retail Gasoline Prices to Cost
Changes,” Energy Economics, (July 1991), pp. 211-218.
Borenstein, Severin, “Selling Costs and Switching Costs: Explaining Retail Gasoline margins,” RAND Journal of
Economics, Vol. 22, No. 3, (Autumn 1991), pp. 354-369.
Borenstein, Severin, A. Colin Cameron, Richard Gilbert “Do Gasoline Prices Respond Asymmetrically to Crude Oil Price
Changes?” The Quarterly Journal of Economics, Vol. 112, No. 1 (February 1997), pp. 305-339.
Deltas, George, “Retail Gasoline Price Dynamics and Local Market Power,” Working Paper, University of Illinois, Urbana-
Champaign, (August 2004).
“Do Rockets Rise Faster and Feathers Fall Slower in an Atmosphere of Local Market Power? Evidence from the Retail
Gasoline Market” The Journal of Industrial Economics, Vol. LVI, No. 3, (September 2008), pp. 581-612.
Hasting, Justine S., “Vertical Relationships and Competition in Retail Gasoline Markets: Empirical Evidence from Contract
Changes in Southern California,” The American Economic Review, Vol. 94, No. 1 (March, 2004), pp. 317-328.
Iyer, Ganesh and P.B. Seetharaman, “Too Close to be Similar: Product and Price Competition in Retail Gasoline Markets,"
Quantitative Marketing and Economics, Vol. 6, No. 3, (September 2008), pp. 205-234.
Lewis, Matthew, “Asymmetric Price Adjustment and Consumer Search: An Examination of the Retail Gasoline Market”
Working Paper, The Ohio State University, Department of Economics (July 26, 2005).
Neilson, Henry and Donald Bruce, "The Geographic Extent of Gasoline Markets," Working Paper, (August 2007),
http://web.utk.edu/~dbruce/neilson.bruce.gasoline.pdf.
Netz, Janet S. and Beck A. Taylor, “Maximum or Minimum Differentiation? Location Patterns of Retail Outlets,” The
Review of Economics and Statistics, Vol. 84, No. 1 (February 2002), pp. 162-175 .
Peltzman, Sam, “Prices Rise Faster than They Fall,” The Journal of Political Economy, Vol. 108, No. 3 (June 2000), pp. 466-
Pindyck, Robert S. and Daniel L. Rubinfeld, Microeconomics , Prentice-Hall, Inc. 5th Edition, 2001, pp. 30-32.
Shepard, Andrea, “Price Discrimination and Retail Configuration,” The Journal of Political Economy, Vol. 99, No. 1
(February, 1991), pp. 30-53.
Thompson, Jennifer R., “Brand Loyalty and Gasoline Pricing in Sacramento,” Giannini Foundation of Agricultural
Economics, University of California, pp. 9-11.
Verlinda, Jeremy A., “Do Rockets Rise Faster and Feathers Fall Slower in an Atmosphere of Local Market Power? Evidence
from the Retail Gasoline Market” The Journal of Industrial Economics, Vol. LVI, No. 3, (September 2008), pp. 581-612.



                                                            2
                                                                                                              Confidential



News Articles and Press Releases
Aldrich, Lester, “DJ Texas Forest Damage from Rita Seen At $833 Mln,” Dow Jones Commodities Service, September 30,
Baskin, Brian, “Crude Pierces the $115 Mark --- Rice Futures Rally To a Record High; Strike Lifts Copper,” The Wall Street
Journal, April 17, 2008.
Edmonds, Christopher, “Katrina Hits the Energy Patch,” RealMoney.com, August 29, 2005.
Fitzgerald, Jay, “Gas Leaps $4 Barrier; Station Owners: Record Prices Due to High Costs,” Boston Herald, May 13, 2008.
Gavin, Robert and Chris Reidy, “Gas Prices Exceed $3; U.S. to Tap Oil Reserves, The Boston Globe, September 1, 2005.
Gavin, Robert, “Inflation Skyrockets after Hurricanes,” The Boston Globe, October 15, 2005.
Howe, Peter J., “Making Sense of Varying Gas Prices in Massachusetts, The Boston Globe, September 7, 2005.
Paganie, David and Pam Boschee, “Operators Begin Cleanup, Repair from Katrina, Rita: Cost Set at Twice that of Sept. 11,
Attack,” Offshore, October 1, 2005.
Stein, Charles, “Squeezed by Energy; Market Forces, Not Gouging, to Blame for Sudden Run-Up,” The Boston Globe,
September 10, 2005.
Sigelman, Nelson, "Judge Sides with MVC in Gas Station Appeal," The Martha's Vineyard Times, March 23, 2006.
Traczek, Chris, “Katrina Touches All: Devastating Hurricane Leaves Mark on Americans From Coast to Coast,” Fuel Oil
News, October 1, 2005.

Government Publications and Websites
Final Report on Price Manipulation in Western Markets: Fact-Finding Investigation of Potential Manipulation of Electric
and Natural Gas Prices,” Federal Energy Regulatory Commission, March 2003, Docket No. PA02-2-000.
http://www.census.gov/popest/cities/cities.html.
http://www.mass.gov/?pageID=cagoterminal&L=3&L0=Home&L1=Government&L2=AG's+Regulations&sid=Cago&b=ter
minalcontent&f=government_Regulations_940CMR3&csid=Cago#3.18:%20Price%20Gouging.
Investigation of Gasoline Price Manipulation and Post-Katrina Gasoline Price Increases , Federal Trade Commission,




                                                            3
           Confidential




EXHIBITS
.                                                                                                                                   Confidential
                                                                                                                                .
                                                                    Exhibit 1
                                           William White et al. v. R. M. Packer Company, Inc. et al.
                                                  Map of Gasoline Stations: Dukes County


             Legend
    Defendant Locations

     I
     8    1 - XtraMart Citgo

     8
     I    2 - Tisbury Shell

     8
     I    5 - Edgartown Mobil

     I
     8    6 - Depot Corner                                                                         3   4
    Non-Defendant Locations
                                                                                       12       88
                                                                                                II
                                                                                    8
                                                                                    I
                                                                                    8
                                                                                    I
     I
     8    3 - DeBettencourt Mobil

     8
     I    4 - Jim's Fuel Station

     8
     I    7 - Airport Fuel Services

     8
     I    8 - Up-Island Automotive

     I
     8    9 - Menemsha Texaco

                                                                                       7
                                                                                                               5   6
                                                                                   8
                                                                                   I                       88
                                                                                                           II
                                                           8
                                                       8
                                                       I

                                       9
                                   8
                                   I




                                                                                                           0       1.25   2.5       5 Miles


                                                                                                                                               .
                                                                                                                                                Confidential




                                                                             Exhibit 2
                                                     William White et al. v. R. M. Packer Company, Inc. et al.
                                                        Distance between Gasoline Stations: Dukes County

                           XtraMart                                    Edgartown     DeBettencourt    Jim's Fuel   Airport Fuel   Up-Island    Menemsha
Station Name                 Citgo     Tisbury Shell Depot Corner        Mobil          Mobil           Station      Services     Automotive    Texaco
XtraMart Citgo                  -           -                 -              -             -               -            -             -           -
Tisbury Shell                  0.2          -                 -              -             -               -            -             -           -
Depot Corner                   7.6         7.7                -              -             -               -            -             -           -
Edgartown Mobil                7.2         7.4               0.3             -             -               -            -             -           -
DeBettencourt Mobil            2.0         1.8               6.4            6.1            -               -                          -           -
Jim's Fuel Station             2.6         2.5               5.7            5.4           0.6              -             -            -           -
Airport Fuel Services          4.6         4.8               5.1            5.0           6.0             5.9            -            -           -
Up-Island Automotive           6.9         7.1               8.5            8.4           8.9             9.5           4.8           -           -
Menemsha Texaco               12.0         12.2             15.0           15.0           14.0           14.7          11.3          6.6          -

Note:
1. Distance is measured in miles.

Source:
1. Data from Google Maps (http://maps.google.com).
                                                                                                                                                                                                 Confidential




                                                                                           Exhibit 3
                                                                  William White et al. v. R. M. Packer Company, Inc. et al.
                                                                                      Station Attributes

                                                                                                   DeBettencourt   Jim's Fuel     Airport Fuel     Up-Island                      Menemsha
Attribute              XtraMart Citgo      Tisbury Shell      Depot Corner      Edgartown Mobil       Mobil          Station        Services      Automotive                       Texaco
Brand                      Citgo               Shell             Mobil               Mobil            Mobil    Unbranded; Shell      Mobil          Mobil                            Shell
                                                                                                               until 7/08; Texaco
                                                                                                                   until 04/05
Address                  9 Beach Road      86 Beach Road     149 Main Street    199 Upper Main 83 New York Ave 27 Lake Avenue 3 North Line Road 1074 State Road                 60 Basin Road
                                                                                     Street
Town/State             Vineyard Haven,    Vineyard Haven,    Edgartown, MA      Edgartown, MA Oak Bluffs, MA Oak Bluffs, MA Edgartown, MA West Tisbury, MA                      Chilmark, MA
                            MA                 MA
Supplier               Drake Petroleum      R.M. Packer      Drake Petroleum    Drake Petroleum   Drake Petroleum Loud Fuel; R.M. Noonan Brothers R.M. Packer until                 -
                          Company            Company            Company            Company         Company; R.M. Packer until 07/08       Petroleum           02/03
                                                                                                  Packer until 2007
Pumps               3 pumps (1 diesel) 3 pumps (1 diesel) 3 pumps (1 diesel) 2 pumps (1 diesel        2 pumps       2 pumps (1 diesel 3 pumps (1 diesel) 4 pumps (1 diesel) 4 pumps (1 diesel;
                                                                             and gas;                                   and gas)                                               1 kerosene)
                                                                             1 kerosene and
                                                                             gas)
Full/Self Service      Full Service       Full Service       Self Service       Full Service        Full Service       Full Service       Full Service        Full Service            -
Pay at Pump                Yes                 No                Yes                Yes                 Yes                 No                Yes                 Yes                No
Credit Card                Yes           Yes/No Amex             Yes                Yes                 Yes                Yes                Yes                 Yes               Yes
Convenience Store          Yes          Sandwich Shop            Yes                Yes                 Yes                Yes                Yes                  No           Drinks/Candy
                                       Attached/Can get                                                                                                                         Bars/Fishing
                                            Drinks                                                                                                                                Supplies
Liquor                      No                 No                 No                 No                 No                 Yes                No                 No                   -
Car Wash                    No                 No                 No                 No                 No                 No                 Yes                No                  No
Repair/Service Shop         No                 No                 No                 No                 Yes                No                 No                 Yes                 No
                    (One Next Door)
Ownership Structure     Integrated with    Integrated with     Own Station        Own Station       Own Station        Own Station             -             Own Station               -
                           Supplier           Supplier
Hours of Operation        6am-11pm           6am-10pm        7am-9pm (peak 630am-11/12pm 7am-6pm Mon- 830am - 9pm Mon- 8am-8pm Mon- 730am-6pm Mon-                                 7am-5pm
                                                                season);     (peak season); Sat; 7am-5pm Sun Thurs; 830am - Sat; 8am-7pm Sun Sat; 8am-5pm Sun
                                                             7am-8pm (off- 630am-10pm (off-                   10pm Fri - Sat;
                                                                season)         season)                      12pm - 6 pm Sun

Rewards Program                -            Volume Plus             -                  -                  -            Island Club -           -                   -                   -
                                               Cards                                                                  Residents Only
ATM                          Yes                Yes               Yes                 No                Yes                 Yes               Yes                No                  No
Air                          Yes                Yes           Across Street           No                Yes                 Yes               Yes                Yes                 Yes
                                                             (Not Affiliated)
Fire Wood                    Yes                No                 No                 No                No                 Yes                Yes                No                   -
Forecourt                    No                 Yes               Yes                 No                Yes                Yes                Yes                No                  No
Tobacco                      Yes                No                Yes                 Yes               Yes                Yes                Yes                No                  Yes
Lottery                      Yes                No                Yes                 Yes               No                 Yes                No                 No                  No
Oil                          Yes                Yes               Yes                 Yes               Yes                Yes                Yes                Yes                  -
Ice                           -                 Yes               Yes                 Yes               Yes                Yes                Yes                No                   -
Gasoline Prices
(as of 4/25/2009)
  Unleaded Regular           2.67              2.69                2.69              2.75               2.67              2.72                2.69               2.60                2.59
  Mid-Grade                  2.77              None                2.79              2.85               2.77              None                2.79               2.70                None
  Super                      2.87              2.89                2.89              2.95               2.87              None                2.89               2.80                2.98
  Diesel                     2.65              2.69                2.99              2.99               2.69              2.89                2.66               2.84                2.67
  Kerosene                     -                 -                   -               2.99               2.87                -                   -                3.78                  -

Sources:
1. Deposition of Ralph Packer, December 11, 2008 and January 16, 2009.
2. Deposition of Joseph McCarthy, December 9, 2008.
3. Deposition of Francis Paciello, December 17, 2008.
4. Deposition of Louis Paciello, December 17, 2008.
5. Deposition of Nelson DeBettencourt, January 15, 2009.
6. Deposition of Michael Wallace, December 16, 2008.
7. Deposition of Walter Jenkinson, January 15, 2009.
8. Non Party Airport Fuel Services Inc., Improperly Named as Airport Service Station, Response To Drake Petroleum's Joint Motion to Compel Persuant to Court Order Dated December 16, 2008.
9. Oil Price Information Service (OPIS)
10. exxon.com
11. Station visit on April 25, 2009 by expert's support staff.
                                                                                                                                                                                   Confidential




                                                                                                 Exhibit 4
                                                                         William White et al. v. R. M. Packer Company, Inc. et al.
                                                                               Average Daily Retail Unleaded Gasoline Prices
                                                                                      August 2003 - December 2008
                          $5.00
                                          XtraMart Citgo
                                          Tisbury Shell
                          $4.50
                                          Depot Corner
                                          Edgartown Mobil
                          $4.00           DeBettencourt Mobil
                                          Jim's Fuel Station
Retail Price per Gallon




                                          Airport Fuel Services
                          $3.50
                                          Up-Island Automotive
                                          Menemsha Texaco
                          $3.00


                          $2.50


                          $2.00


                          $1.50


                          $1.00
                              8/1/03                     8/1/04                      8/1/05                      8/1/06                     8/1/07                      8/1/08
                                                                                                         Date
                              Sources: 1. Gas Prices Charted from Defendant Documents.Backup to Gollop Report.pdf; 2. up island 2003 retail gas prices-40287.pdf; 3. up island 2004
                              retail gas prices-40288.pdf; 4. up island 2005 retail gas prices-40289.pdf; 5. up island 2006 retail gas prices-40291.pdf; 6. up island 2007 retail gas prices-
                              40290.pdf; 7. up island 2008 retail gas prices-40292.pdf; 8. data for Jim's Shell + Airport Service Station.xlsx; 9. Airport Fuel Services Prices.xls; 10. OPIS.
                                                                                                                                                                                    Confidential




                                                                                                 Exhibit 5
                                                                         William White et al. v. R. M. Packer Company, Inc. et al.
                                                                               Average Daily Retail Unleaded Gasoline Prices
                                                                                      August 2003 - December 2003
                          $2.60
                                                                                                                                            XtraMart Citgo
                                                                                                                                            Tisbury Shell
                          $2.50
                                                                                                                                            Depot Corner
                                                                                                                                            Edgartown Mobil
                          $2.40                                                                                                             DeBettencourt Mobil
                                                                                                                                            Jim's Fuel Station
                                                                                                                                            Airport Fuel Services
Retail Price per Gallon




                          $2.30                                                                                                             Up-Island Automotive
                                                                                                                                            Menemsha Texaco

                          $2.20


                          $2.10


                          $2.00


                          $1.90


                          $1.80
                              8/1/03                         9/1/03                       10/1/03                        11/1/03                       12/1/03
                                                                                                          Date
                             Sources: 1. Gas Prices Charted from Defendant Documents.Backup to Gollop Report.pdf; 2. up island 2003 retail gas prices-40287.pdf; 3. up island 2004
                             retail gas prices-40288.pdf; 4. up island 2005 retail gas prices-40289.pdf; 5. up island 2006 retail gas prices-40291.pdf; 6. up island 2007 retail gas prices-
                             40290.pdf; 7. up island 2008 retail gas prices-40292.pdf; 8. data for Jim's Shell + Airport Service Station.xlsx; 9. Airport Fuel Services Prices.xls; 10. OPIS.
                                                                                                                                                                                   Confidential




                                                                                                 Exhibit 6
                                                                         William White et al. v. R. M. Packer Company, Inc. et al.
                                                                               Average Daily Retail Unleaded Gasoline Prices
                                                                                                    2004
                          $2.80


                          $2.70


                          $2.60


                          $2.50
Retail Price per Gallon




                          $2.40


                          $2.30
                                                                                                                                      XtraMart Citgo
                          $2.20                                                                                                       Tisbury Shell
                                                                                                                                      Depot Corner
                          $2.10                                                                                                       Edgartown Mobil
                                                                                                                                      DeBettencourt Mobil
                          $2.00                                                                                                       Jim's Fuel Station
                                                                                                                                      Airport Fuel Services
                          $1.90                                                                                                       Up-Island Automotive
                                                                                                                                      Menemsha Texaco
                          $1.80
                              1/1/04                  3/1/04                    5/1/04                   7/1/04                    9/1/04                  11/1/04
                                                                                                          Date
                              Sources: 1. Gas Prices Charted from Defendant Documents.Backup to Gollop Report.pdf; 2. up island 2003 retail gas prices-40287.pdf; 3. up island 2004
                              retail gas prices-40288.pdf; 4. up island 2005 retail gas prices-40289.pdf; 5. up island 2006 retail gas prices-40291.pdf; 6. up island 2007 retail gas prices-
                              40290.pdf; 7. up island 2008 retail gas prices-40292.pdf; 8. data for Jim's Shell + Airport Service Station.xlsx; 9. Airport Fuel Services Prices.xls; 10. OPIS.
                                                                                                                                                                                   Confidential




                                                                                                 Exhibit 7
                                                                         William White et al. v. R. M. Packer Company, Inc. et al.
                                                                               Average Daily Retail Unleaded Gasoline Prices
                                                                                                    2005
                          $4.25
                                         XtraMart Citgo
                          $4.05          Tisbury Shell
                                         Depot Corner
                          $3.85          Edgartown Mobil
                                         DeBettencourt Mobil
                          $3.65          Jim's Fuel Station
                                         Airport Fuel Services
Retail Price per Gallon




                          $3.45          Up-Island Automotive
                                         Menemsha Texaco
                          $3.25


                          $3.05


                          $2.85


                          $2.65


                          $2.45


                          $2.25
                              1/1/05                  3/1/05                   5/1/05                  7/1/05                    9/1/05                  11/1/05
                                                                                                        Date
                             Sources: 1. Gas Prices Charted from Defendant Documents.Backup to Gollop Report.pdf; 2. up island 2003 retail gas prices-40287.pdf; 3. up island 2004
                             retail gas prices-40288.pdf; 4. up island 2005 retail gas prices-40289.pdf; 5. up island 2006 retail gas prices-40291.pdf; 6. up island 2007 retail gas prices-
                             40290.pdf; 7. up island 2008 retail gas prices-40292.pdf; 8. data for Jim's Shell + Airport Service Station.xlsx; 9. Airport Fuel Services Prices.xls; 10. OPIS.
                                                                                                                                                                                   Confidential




                                                                                                Exhibit 8
                                                                        William White et al. v. R. M. Packer Company, Inc. et al.
                                                                              Average Daily Retail Unleaded Gasoline Prices
                                                                                                   2006
                          $4.40
                                                                                                                                                         XtraMart Citgo
                                                                                                                                                         Tisbury Shell
                          $4.15                                                                                                                          Depot Corner
                                                                                                                                                         Edgartown Mobil
                          $3.90                                                                                                                          DeBettencourt Mobil
                                                                                                                                                         Jim's Fuel Station
                                                                                                                                                         Airport Fuel Services
Retail Price per Gallon




                          $3.65                                                                                                                          Up-Island Automotive
                                                                                                                                                         Menemsha Texaco

                          $3.40


                          $3.15


                          $2.90


                          $2.65


                          $2.40
                              1/1/06                  3/1/06                   5/1/06                   7/1/06                   9/1/06                   11/1/06
                                                                                                         Date
                             Sources: 1. Gas Prices Charted from Defendant Documents.Backup to Gollop Report.pdf; 2. up island 2003 retail gas prices-40287.pdf; 3. up island 2004
                             retail gas prices-40288.pdf; 4. up island 2005 retail gas prices-40289.pdf; 5. up island 2006 retail gas prices-40291.pdf; 6. up island 2007 retail gas prices-
                             40290.pdf; 7. up island 2008 retail gas prices-40292.pdf; 8. data for Jim's Shell + Airport Service Station.xlsx; 9. Airport Fuel Services Prices.xls; 10. OPIS.
                                                                                                                                                                                   Confidential




                                                                                                 Exhibit 9
                                                                         William White et al. v. R. M. Packer Company, Inc. et al.
                                                                               Average Daily Retail Unleaded Gasoline Prices
                                                                                                    2007
                          $4.40
                                        XtraMart Citgo
                                        Tisbury Shell
                          $4.15         Depot Corner
                                        Edgartown Mobil
                                        DeBettencourt Mobil
                          $3.90
                                        Jim's Fuel Station
                                        Airport Fuel Services
Retail Price per Gallon




                          $3.65         Up-Island Automotive
                                        Menemsha Texaco

                          $3.40


                          $3.15


                          $2.90


                          $2.65


                          $2.40
                              1/1/07                  3/1/07                    5/1/07                   7/1/07                    9/1/07                   11/1/07
                                                                                                          Date
                            Sources: 1. Gas Prices Charted from Defendant Documents.Backup to Gollop Report.pdf; 2. up island 2003 retail gas prices-40287.pdf; 3. up island 2004
                            retail gas prices-40288.pdf; 4. up island 2005 retail gas prices-40289.pdf; 5. up island 2006 retail gas prices-40291.pdf; 6. up island 2007 retail gas prices-
                            40290.pdf; 7. up island 2008 retail gas prices-40292.pdf; 8. data for Jim's Shell + Airport Service Station.xlsx; 9. Airport Fuel Services Prices.xls; 10. OPIS.
                                                                                                                                                                                    Confidential




                                                                                                 Exhibit 10
                                                                         William White et al. v. R. M. Packer Company, Inc. et al.
                                                                               Average Daily Retail Unleaded Gasoline Prices
                                                                                                    2008
                          $5.00


                          $4.50


                          $4.00
Retail Price per Gallon




                          $3.50

                                            XtraMart Citgo
                          $3.00             Tisbury Shell
                                            Depot Corner
                          $2.50
                                            Edgartown Mobil
                                            DeBettencourt Mobil
                                            Jim's Fuel Station
                          $2.00             Airport Fuel Services
                                            Up-Island Automotive
                                            Menemsha Texaco
                          $1.50


                          $1.00
                              1/1/08                   3/1/08                   5/1/08                   7/1/08                    9/1/08                   11/1/08
                                                                                                          Date
                             Sources: 1. Gas Prices Charted from Defendant Documents.Backup to Gollop Report.pdf; 2. up island 2003 retail gas prices-40287.pdf; 3. up island 2004
                             retail gas prices-40288.pdf; 4. up island 2005 retail gas prices-40289.pdf; 5. up island 2006 retail gas prices-40291.pdf; 6. up island 2007 retail gas prices-
                             40290.pdf; 7. up island 2008 retail gas prices-40292.pdf; 8. data for Jim's Shell + Airport Service Station.xlsx; 9. Airport Fuel Services Prices.xls; 10. OPIS.
                                                                                                                                                       Confidential




                                                                                                 Exhibit 11
                                                                         William White et al. v. R. M. Packer Company, Inc. et al.
                                                                         Average Daily Retail Unleaded Gasoline Prices in Orleans
                                                                                      August 2003 - December 2008
                          $5.00
                                        Orleans Getty - Getty
                                        Cumberland Farms - Cumberland
                          $4.50
                                        Gills Automotive - Citgo
                                        Bill's Sunoco Station Gas Service - Sunoco
                          $4.00         Alliance Energy Corp - Citgo
                                        Exxon Mobil Corp - Mobil
                                        Christys Of Cape Cod - Unbranded
Retail Price per Gallon




                          $3.50
                                        Getty Terminals Corp - Texaco


                          $3.00


                          $2.50


                          $2.00


                          $1.50


                          $1.00
                              8/1/03                      8/1/04                     8/1/05                8/1/06                    8/1/07   8/1/08
                                                                                                    Date


                                  Source:
                                  1. OPIS.
                                                                                                                                                       Confidential




                                                                              Exhibit 12
                                                      William White et al. v. R. M. Packer Company, Inc. et al.
                                                      Average Daily Retail Unleaded Gasoline Prices in Orleans
                                                                   August 2003 - December 2003
                          $2.20
                                                                                                          Orleans Getty - Getty
                                                                                                          Cumberland Farms - Cumberland
                          $2.10                                                                           Gills Automotive - Citgo
                                                                                                          Bill's Sunoco Station Gas Service - Sunoco
                          $2.00                                                                           Alliance Energy Corp - Citgo
                                                                                                          Exxon Mobil Corp - Mobil
                                                                                                          Christys Of Cape Cod - Unbranded
Retail Price per Gallon




                          $1.90
                                                                                                          Getty Terminals Corp - Texaco


                          $1.80


                          $1.70


                          $1.60


                          $1.50


                          $1.40
                              8/1/03         9/1/03                10/1/03                   11/1/03                   12/1/03
                                                                                 Date


                                  Source:
                                  1. OPIS.
                                                                                                                                                      Confidential




                                                                              Exhibit 13
                                                      William White et al. v. R. M. Packer Company, Inc. et al.
                                                      Average Daily Retail Unleaded Gasoline Prices in Orleans
                                                                                 2004
                          $2.30


                          $2.20


                          $2.10


                          $2.00
Retail Price per Gallon




                          $1.90


                          $1.80
                                                                                                         Orleans Getty - Getty
                                                                                                         Cumberland Farms - Cumberland
                          $1.70                                                                          Gills Automotive - Citgo
                                                                                                         Bill's Sunoco Station Gas Service - Sunoco
                          $1.60                                                                          Alliance Energy Corp - Citgo
                                                                                                         Exxon Mobil Corp - Mobil
                          $1.50                                                                          Christys Of Cape Cod - Unbranded
                                                                                                         Getty Terminals Corp - Texaco
                          $1.40
                              1/1/04         3/1/04       5/1/04                7/1/04                9/1/04                11/1/04
                                                                                 Date


                                  Source:
                                  1. OPIS.
                                                                                                                                              Confidential




                                                                                                Exhibit 14
                                                                        William White et al. v. R. M. Packer Company, Inc. et al.
                                                                        Average Daily Retail Unleaded Gasoline Prices in Orleans
                                                                                                   2005
                          $3.75
                                       Orleans Getty - Getty
                          $3.55        Cumberland Farms - Cumberland
                                       Gills Automotive - Citgo
                          $3.35
                                       Bill's Sunoco Station Gas Service - Sunoco
                                       Alliance Energy Corp - Citgo
                          $3.15
                                       Exxon Mobil Corp - Mobil
Retail Price per Gallon




                          $2.95        Christys Of Cape Cod - Unbranded
                                       Getty Terminals Corp - Texaco
                          $2.75


                          $2.55


                          $2.35


                          $2.15


                          $1.95


                          $1.75
                              1/1/05                  3/1/05                 5/1/05               7/1/05                9/1/05      11/1/05
                                                                                                   Date


                                  Source:
                                  1. OPIS.
                                                                                                                                               Confidential




                                                                                                 Exhibit 15
                                                                         William White et al. v. R. M. Packer Company, Inc. et al.
                                                                         Average Daily Retail Unleaded Gasoline Prices in Orleans
                                                                                                    2006
                          $3.80
                                       Orleans Getty - Getty
                                       Cumberland Farms - Cumberland
                          $3.60        Gills Automotive - Citgo
                                       Bill's Sunoco Station Gas Service - Sunoco
                                       Alliance Energy Corp - Citgo
                          $3.40
                                       Exxon Mobil Corp - Mobil
                                       Christys Of Cape Cod - Unbranded
                          $3.20        Getty Terminals Corp - Texaco
Retail Price per Gallon




                          $3.00


                          $2.80


                          $2.60


                          $2.40


                          $2.20


                          $2.00
                              1/1/06                  3/1/06                  5/1/06               7/1/06                9/1/06      11/1/06
                                                                                                    Date


                                  Source:
                                  1. OPIS.
                                                                                                                                                     Confidential




                                                                              Exhibit 16
                                                      William White et al. v. R. M. Packer Company, Inc. et al.
                                                      Average Daily Retail Unleaded Gasoline Prices in Orleans
                                                                                 2007
                          $3.60


                          $3.40


                          $3.20
Retail Price per Gallon




                          $3.00


                          $2.80

                                                                                                        Orleans Getty - Getty
                          $2.60                                                                         Cumberland Farms - Cumberland
                                                                                                        Gills Automotive - Citgo
                                                                                                        Bill's Sunoco Station Gas Service - Sunoco
                          $2.40
                                                                                                        Alliance Energy Corp - Citgo
                                                                                                        Exxon Mobil Corp - Mobil
                          $2.20
                                                                                                        Christys Of Cape Cod - Unbranded
                                                                                                        Getty Terminals Corp - Texaco
                          $2.00
                              1/1/07         3/1/07       5/1/07                7/1/07                9/1/07                11/1/07
                                                                                 Date


                                  Source:
                                  1. OPIS.
                                                                                                                                             Confidential




                                                                                               Exhibit 17
                                                                       William White et al. v. R. M. Packer Company, Inc. et al.
                                                                       Average Daily Retail Unleaded Gasoline Prices in Orleans
                                                                                                  2008
                          $5.00


                          $4.50


                          $4.00
Retail Price per Gallon




                          $3.50


                          $3.00
                                       Orleans Getty - Getty
                                       Cumberland Farms - Cumberland
                          $2.50
                                       Gills Automotive - Citgo
                                       Bill's Sunoco Station Gas Service - Sunoco
                          $2.00
                                       Alliance Energy Corp - Citgo
                                       Exxon Mobil Corp - Mobil
                          $1.50
                                       Christys Of Cape Cod - Unbranded
                                       Getty Terminals Corp - Texaco
                          $1.00
                              1/1/08                 3/1/08                 5/1/08               7/1/08                9/1/08      11/1/08
                                                                                                  Date


                                  Source:
                                  1. OPIS.
                                                                                                                                  Confidential




                                                           Exhibit 18
                                   William White et al. v. R. M. Packer Company, Inc. et al.
                                       Price Changes During Market Emergency Period
                                                 June 2005 - December 2005

                 Dukes County: Defendants     Dukes County: Non-Defendants         Barnstable County
             Average   Change      % Change Average   Change     % Change  Average   Change      % Change
  Month       Price From August From August  Price From August From August  Price From August From August
June          2.795        -            -    2.793        -            -    2.205        -             -
July          2.901        -            -    2.906        -            -    2.393        -             -
August        3.131        -            -    3.024        -            -    2.589        -             -
September     3.640      0.509      16.25%   3.520      0.495      16.38%   3.113      0.524       20.22%
October       3.419      0.288       9.21%   3.419      0.395      13.06%   2.791      0.202        7.80%
November      3.015     -0.116      -3.71%   3.068      0.043       1.43%   2.351     -0.239       -9.21%
December      2.846     -0.285      -9.11%   2.767     -0.258      -8.52%   2.219     -0.370      -14.29%

Notes:
1. Dukes County defendants include Depot Corner, Edgartown Mobil, Tisbury Shell, and XtraMart Citgo.
2. Dukes County non-defendants include Airport Fuel Services, DeBettencourt Mobil, Jim's Fuel Station, Menemsha Texaco, and Up-
Island Automotive.

Sources:
1. Gas Prices Charted from Defendant Documents.Backup to Gollop Report.pdf
2. up island 2003 retail gas prices-40287.pdf
3. up island 2004 retail gas prices-40288.pdf
4. up island 2005 retail gas prices-40289.pdf
5. up island 2006 retail gas prices-40291.pdf
6. up island 2007 retail gas prices-40290.pdf
7. up island 2008 retail gas prices-40292.pdf
8. data for Jim's Shell + Airport Service Station.xlsx
9. Airport Fuel Services Prices.xls
10. OPIS
                                                                                                                                                                                 Confidential



                                                                                                      Exhibit 19
                                                                              William White et al. v. R. M. Packer Company, Inc. et al.
                                                             United States, Boston and Providence Regular Unleaded Gasoline Daily Average Rack Price
                                                                                           August 2003 - December 2008

                                $4.00


                                $3.50


                                $3.00
Average Rack Price per Gallon




                                $2.50


                                $2.00


                                $1.50


                                $1.00


                                $0.50


                                $0.00
                                    8/1/03         2/14/04       8/30/04       3/16/05       9/30/05        4/16/06      10/31/06       5/17/07       12/1/07        6/16/08      12/31/08
                                                                                                             Date
                                                                                          United States    Boston     Providence
                                        Notes: 1. The United States average rack price is the last trading price of the "Bloomberg Regular Gasoline Average Rack Price, Total US" (ID:
                                        RKU4AVER); The Boston average rack price is the last trading price of the "Bloomberg Regular Gasoline Average Rack Price, Boston, Massachusetts"
                                        (ID: RKU4BOST); and the Providence average rack price is the last trading price of the "Bloomberg Regular Gasoline Average Rack Price, Providence,
                                        Rhode Island" (ID: RKU4PROV). Non-trading days, such as weekends and holidays, assume the last trading price of the previous active trading day.
                                        Source: 1. Bloomberg (according to Bloomberg, data may be subject to one day lag).
                                                                                                                                                                                  Confidential



                                                                                                       Exhibit 20
                                                                               William White et al. v. R. M. Packer Company, Inc. et al.
                                                              United States, Boston and Providence Regular Unleaded Gasoline Daily Average Rack Price
                                                                                            August 2005 - December 2005

                                $3.50




                                $3.00
Average Rack Price per Gallon




                                $2.50




                                $2.00




                                $1.50




                                $1.00
                                   8/1/05                         8/31/05                     9/30/05                     10/31/05                     11/30/05                    12/31/05
                                                                                                             Date

                                                                                            United States   Boston     Providence
                                        Notes: 1. The United States average rack price is the last trading price of the "Bloomberg Regular Gasoline Average Rack Price, Total US" (ID:
                                        RKU4AVER); The Boston average rack price is the last trading price of the "Bloomberg Regular Gasoline Average Rack Price, Boston, Massachusetts"
                                        (ID: RKU4BOST); and the Providence average rack price is the last trading price of the "Bloomberg Regular Gasoline Average Rack Price, Providence,
                                        Rhode Island" (ID: RKU4PROV). Non-trading days, such as weekends and holidays, assume the last trading price of the previous active trading day.
                                        Source: 1. Bloomberg (according to Bloomberg, data may be subject to one day lag).
                                                                                                                                                                             Confidential



                                                                                         Exhibit 21
                                                                 William White et al. v. R. M. Packer Company, Inc. et al.
                                              Average Daily Unleaded Regular Retail Price for Dukes County and Providence Average Rack Price
                                                                              August 2003 - December 2008
                   $5.00

                   $4.50

                   $4.00

                   $3.50
Price per Gallon




                   $3.00

                   $2.50

                   $2.00

                   $1.50

                   $1.00

                   $0.50

                   $0.00
                       8/1/03      1/12/04      6/25/04     12/7/04      5/21/05      11/2/05      4/16/06       9/28/06    3/12/07      8/24/07      2/5/08       7/19/08     12/31/08
                                                                                                    Date

                                                                  Dukes County Average Retail Price          Providence Average Rack Price

                       Notes: 1. The correlation coefficient for Dukes County Average Retail Price and Providence Average Rack Price is .9745 from August 2003 to July 2008.
                       2. The Providence Average Rack Price is the last trading price of the "Bloomberg Regular Gasoline Average Rack Price, Providence, Rhode Island" (ID:
                       RKU4PROV). Non-trading days, such as weekends and holidays, assume the last trading price of the previous active trading day.
                       Sources: 1. Gas Prices Charted from Defendant Documents.Backup to Gollop Report.pdf; 2. up island 2003 retail gas prices-40287.pdf; 3. up island 2004
                       retail gas prices-40288.pdf; 4. up island 2005 retail gas prices-40289.pdf; 5. up island 2006 retail gas prices-40291.pdf; 6. up island 2007 retail gas prices-
                       40290.pdf; 7. up island 2008 retail gas prices-40292.pdf; 8. data for Jim's Shell + Airport Service Station.xlsx; 9. Airport Fuel Services Prices.xls; 10. OPIS;
                       11. Bloomberg (according to Bloomberg, data may be subject to one day lag).
                                                                                                                                                                   Confidential



                                                                                         Exhibit 22
                                                                William White et al. v. R. M. Packer Company, Inc. et al.
                                           Average Daily Unleaded Regular Retail Price for Barnstable County and Providence Average Rack Price
                                                                              August 2003 - December 2008
                   $5.00

                   $4.50

                   $4.00

                   $3.50
Price per Gallon




                   $3.00

                   $2.50

                   $2.00

                   $1.50

                   $1.00

                   $0.50

                   $0.00
                       8/1/03    1/12/04       6/25/04    12/7/04    5/21/05     11/2/05     4/16/06     9/28/06     3/12/07     8/24/07     2/5/08     7/19/08     12/31/08
                                                                                              Date

                                                             Barnstable County Average Retail Price    Providence Average Rack Price

                      Notes: 1. The correlation coefficient for Barnstable County Average Retail Price and Providence Average Rack Price is .9780 from August 2003 to July
                      2008. 2. The Providence Average Rack Price is the last trading price of the "Bloomberg Regular Gasoline Average Rack Price, Providence, Rhode Island"
                      (ID: RKU4PROV). Non-trading days, such as weekends and holidays, assume the last trading price of the previous active trading day.
                      Sources: 1. OPIS; 2. Bloomberg (according to Bloomberg, data may be subject to one day lag).
                                                                                                                                                                   Confidential



                                                                                       Exhibit 23
                                                               William White et al. v. R. M. Packer Company, Inc. et al.
                                            United States Average Daily Unleaded Regular Retail Price and United States Average Rack Price
                                                                             March 2004 - December 2008
                   $5.00

                   $4.50

                   $4.00

                   $3.50
Price per Gallon




                   $3.00

                   $2.50

                   $2.00

                   $1.50

                   $1.00

                   $0.50

                   $0.00
                      3/1/04         9/13/04         3/28/05        10/10/05         4/24/06           11/7/06        5/22/07        12/4/07        6/17/08         12/31/08
                                                                                               Date

                                                               United States Average Retail Price     United States Average Rack Price
                      Notes: 1. The United States Average Retail Price is the last trading price of the "Daily National Average Gasoline Prices Regular Unleaded" (ID:
                      3AGSREG); The United States Average Rack Price is the last trading price of the "Bloomberg Regular Gasoline Average Rack Price, Total US" (ID:
                      RKU4AVER). Non-trading days, such as weekends and holidays, assume the last trading price of the previous active trading day. 2. Data was not available
                      prior to March 2004.
                      Source: 1. Bloomberg (according to Bloomberg, data may be subject to one day lag).
                                                                                                                                                                                                Confidential



                                                                                                              Exhibit 24
                                                                                     William White et al. v. R. M. Packer Company, Inc. et al.
                                                                 Dukes County Average Retail Price less Providence Average Rack Price for Regular Unleaded Gasoline
                                                                                                    August 2003 - December 2008
                                       $2.00

                                       $1.80

                                       $1.60
Retail Price - Rack Price per Gallon




                                       $1.40

                                       $1.20

                                       $1.00

                                       $0.80

                                       $0.60

                                       $0.40

                                       $0.20

                                       $0.00
                                           8/1/03       2/1/04         8/1/04        2/1/05        8/1/05        2/1/06          8/1/06      2/1/07        8/1/07        2/1/08        8/1/08
                                                                                                                          Date

                                                                                      Dukes County Average Retail Price - Providence Average Rack Price

                                           Notes: 1. The Providence Average Rack Price is the last trading price of the "Bloomberg Regular Gasoline Average Rack Price, Providence, Rhode Island"
                                           (ID: RKU4PROV). Non-trading days, such as weekends and holidays, assume the last trading price of the previous active trading day.
                                           Sources: 1. Gas Prices Charted from Defendant Documents.Backup to Gollop Report.pdf; 2. up island 2003 retail gas prices-40287.pdf; 3. up island 2004
                                           retail gas prices-40288.pdf; 4. up island 2005 retail gas prices-40289.pdf; 5. up island 2006 retail gas prices-40291.pdf; 6. up island 2007 retail gas prices-
                                           40290.pdf; 7. up island 2008 retail gas prices-40292.pdf; 8. data for Jim's Shell + Airport Service Station.xlsx; 9. Airport Fuel Services Prices.xls; 10. OPIS;
                                           11. Bloomberg (according to Bloomberg, data may be subject to one day lag).
                                                                                                                                                                                                Confidential



                                                                                                           Exhibit 25
                                                                                  William White et al. v. R. M. Packer Company, Inc. et al.
                                                              Dukes County Average Retail Price less Providence Average Rack Price for Regular Unleaded Gasoline
                                                                                                 August 2005 - December 2005
                                       $2.00

                                       $1.80

                                       $1.60
Retail Price - Rack Price per Gallon




                                       $1.40

                                       $1.20

                                       $1.00

                                       $0.80

                                       $0.60

                                       $0.40

                                       $0.20

                                       $0.00
                                           8/1/05                       8/31/05                       9/30/05                      10/30/05                      11/29/05                      12/29/05
                                                                                                                    Date

                                                                                       Dukes County Average Retail Price - Providence Average Rack Price
                                           Notes: 1. The Providence Average Rack Price is the last trading price of the "Bloomberg Regular Gasoline Average Rack Price, Providence, Rhode Island"
                                           (ID: RKU4PROV). Non-trading days, such as weekends and holidays, assume the last trading price of the previous active trading day.
                                           Sources: 1. Gas Prices Charted from Defendant Documents.Backup to Gollop Report.pdf; 2. up island 2003 retail gas prices-40287.pdf; 3. up island 2004
                                           retail gas prices-40288.pdf; 4. up island 2005 retail gas prices-40289.pdf; 5. up island 2006 retail gas prices-40291.pdf; 6. up island 2007 retail gas prices-
                                           40290.pdf; 7. up island 2008 retail gas prices-40292.pdf; 8. data for Jim's Shell + Airport Service Station.xlsx; 9. Airport Fuel Services Prices.xls; 10. OPIS;
                                           11. Bloomberg (according to Bloomberg, data may be subject to one day lag).
                                                                                                                                                                                      Confidential



                                                                                                          Exhibit 26
                                                                                 William White et al. v. R. M. Packer Company, Inc. et al.
                                                          Barnstable County Average Retail Price less Providence Average Rack Price for Regular Unleaded Gasoline
                                                                                               August 2003 - December 2008
                                       $2.00

                                       $1.80

                                       $1.60
Retail Price - Rack Price per Gallon




                                       $1.40

                                       $1.20

                                       $1.00

                                       $0.80

                                       $0.60

                                       $0.40

                                       $0.20

                                       $0.00
                                          8/1/03       2/1/04       8/1/04       2/1/05       8/1/05       2/1/06       8/1/06        2/1/07       8/1/07       2/1/08       8/1/08
                                                                                                               Date

                                                                                  Barnstable County Average Retail Price - Providence Average Rack Price

                                          Notes: 1. The Providence Average Rack Price is the last trading price of the "Bloomberg Regular Gasoline Average Rack Price, Providence, Rhode Island"
                                          (ID: RKU4PROV). Non-trading days, such as weekends and holidays, assume the last trading price of the previous active trading day.
                                          Sources: 1. OPIS; 2. Bloomberg (according to Bloomberg, data may be subject to one day lag).
                                                                                                                                                                                      Confidential



                                                                                                          Exhibit 27
                                                                                 William White et al. v. R. M. Packer Company, Inc. et al.
                                                          Barnstable County Average Retail Price less Providence Average Rack Price for Regular Unleaded Gasoline
                                                                                               August 2005 - December 2005
                                       $2.00

                                       $1.80

                                       $1.60
Retail Price - Rack Price per Gallon




                                       $1.40

                                       $1.20

                                       $1.00

                                       $0.80

                                       $0.60

                                       $0.40

                                       $0.20

                                       $0.00
                                           8/1/05                    8/31/05                     9/30/05                     10/30/05                   11/29/05                    12/29/05
                                                                                                                 Date
                                                                                   Barnstable County Average Retail Price - Providence Average Rack Price

                                          Notes: 1. The Providence Average Rack Price is the last trading price of the "Bloomberg Regular Gasoline Average Rack Price, Providence, Rhode Island"
                                          (ID: RKU4PROV). Non-trading days, such as weekends and holidays, assume the last trading price of the previous active trading day.
                                          Sources: 1. OPIS; 2. Bloomberg (according to Bloomberg, data may be subject to one day lag).
                                                                                                                                                                                                    Confidential



                                                                                                             Exhibit 28
                                                                                     William White et al. v. R. M. Packer Company, Inc. et al.
                                                                       Average Difference between Retail Price and Providence Average Rack Price by Brand
                                                                                                        Barnstable County
                                                                                                            2003 - 2008
                                      $0.80
                                                 $0.718     $0.706      $0.692     $0.691      $0.691   $0.682      $0.678
                                      $0.70                                                                                   $0.669      $0.658       $0.647     $0.636      $0.635
                                                                                                                                                                                           $0.573
Average Price Difference per Gallon




                                      $0.60


                                      $0.50


                                      $0.40


                                      $0.30


                                      $0.20


                                      $0.10


                                      $0.00




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                                                                                                                    Brand

                                              Notes: 1. The Providence Average Rack Price is the last trading price of the "Bloomberg Regular Gasoline Average Rack Price, Providence, Rhode
                                              Island" (ID: RKU4PROV). Non-trading days, such as weekends and holidays, assume the last trading price of the previous active trading day.
                                              Sources: 1. OPIS; 2. Bloomberg (according to Bloomberg, data may be subject to one day lag).
                                                                                                                                                                                        Confidential



                                                                                                             Exhibit 29
                                                                                     William White et al. v. R. M. Packer Company, Inc. et al.
                                                                   Average Difference between Retail Price and Providence Average Rack Price by Brand and Year
                                                                                                         Barnstable County
                                                                                                             2003 - 2008
                                      $0.90


                                      $0.80


                                      $0.70
Average Price Difference per Gallon




                                      $0.60


                                      $0.50


                                      $0.40


                                      $0.30


                                      $0.20


                                      $0.10


                                      $0.00
                                                         2003                    2004                  2005                    2006                   2007                    2008
                                                                                                                   Year

                                                 Mobil     Shell      Sunoco     Citgo    Irving    Texaco      Exxon     Gulf     Getty     Unbranded       Hess    Cumberland      Valero
                                              Notes: 1. The Providence Average Rack Price is the last trading price of the "Bloomberg Regular Gasoline Average Rack Price, Providence, Rhode
                                              Island" (ID: RKU4PROV). Non-trading days, such as weekends and holidays, assume the last trading price of the previous active trading day.
                                              Sources: 1. OPIS; 2. Bloomberg (according to Bloomberg, data may be subject to one day lag).
                                                                                                                                                                                    Confidential




                                                                                              Exhibit 30
                                                                      William White et al. v. R. M. Packer Company, Inc. et al.
                                                        Time Periods Used by Professor Gollop for his Analysis of Alleged Cooperative Behavior
                                                                                    August 2003 - December 2008
                          $5.00
                                                                                                                     I. May 1 - September 15, 2004
                                                        I.                   II.       III.
                                                                                                                     II. March 20 - May 25, 2005
                          $4.50                                                                                      III. July 15 - November 7, 2005



                          $4.00
Retail Price per Gallon




                          $3.50



                          $3.00



                          $2.50


                                                                                                                           XtraMart Citgo             Tisbury Shell
                          $2.00
                                                                                                                           Depot Corner               Edgartown Mobil
                                                                                                                           DeBettencourt Mobil        Jim's Fuel Station
                          $1.50
                                                                                                                           Airport Fuel Services      Up-Island Automotive
                                                                                                                           Menemsha Texaco
                          $1.00
                              8/1/03                      8/1/04                     8/1/05                      8/1/06                      8/1/07                        8/1/08
                                                                                                      Date

                              Sources: 1. Gas Prices Charted from Defendant Documents.Backup to Gollop Report.pdf; 2. up island 2003 retail gas prices-40287.pdf; 3. up island 2004
                              retail gas prices-40288.pdf; 4. up island 2005 retail gas prices-40289.pdf; 5. up island 2006 retail gas prices-40291.pdf; 6. up island 2007 retail gas prices-
                              40290.pdf; 7. up island 2008 retail gas prices-40292.pdf; 8. data for Jim's Shell + Airport Service Station.xlsx; 9. Airport Fuel Services Prices.xls; 10. OPIS.
                                                                                                                                                                               Confidential



                                                                                             Exhibit 31
                                                                     William White et al. v. R. M. Packer Company, Inc. et al.
                                                      Examples of Stations in Barnstable County with Constant or Increasing Prices During the
                                                      Time Periods Used by Professor Gollop for his Analysis of Alleged Cooperative Behavior
                                                                                 May 1, 2004 - September 15, 2004
                          $3.00
                                         May 25                                              Sunoco - West Harwich (I)                                     Sep 15
                                         I.       $2.04                                      Barnstable Road Getty - Hyannis (II)                          I.       $2.13
                          $2.80          II.      $2.00                                                                                                    II.      $2.00
                                                                                             Harwichport - Harwich Port (III)
                                         III.     $1.75                                      Monument Beach Mobil - Buzzards Bay (IV)                      III.     $1.90
                          $2.60          IV.      $1.78                                      Rack Price (V)                                                IV.      $1.80
                                         V.       $1.53                                                                                                    V.       $1.29

                          $2.40
Retail Price per Gallon




                                        May 25, 2004 =>                                                                                                      Sep 15, 2004 =>
                          $2.20


                          $2.00


                          $1.80

                          $1.60


                          $1.40

                          $1.20

                          $1.00
                              5/1/04                         6/1/04                         7/1/04                          8/1/04                         9/1/04
                                                                                                     Date
                              Notes: 1. The Providence Average Rack Price is the last trading price of the "Bloomberg Regular Gasoline Average Rack Price, Providence,
                              Rhode Island" (ID: RKU4PROV). Non-trading days, such as weekends and holidays, assume the last trading price of the previous active
                              trading day; 2. For Sunoco - West Harwich, reported price from 9/14/04 was employed, because data is not available on 9/15/04. 3. Professor
                              Gollop cites May 25 as the date at which the underlying price of gasoline starts to decrease (Gollop Expert Report, p. 21).
                              Sources: 1. OPIS; 2. Bloomberg (according to Bloomberg, data may be subject to one day lag).
                                                                                                                                                                               Confidential



                                                                                              Exhibit 32
                                                                      William White et al. v. R. M. Packer Company, Inc. et al.
                                                       Examples of Stations in Barnstable County with Constant or Increasing Prices During the
                                                       Time Periods Used by Professor Gollop for his Analysis of Alleged Cooperative Behavior
                                                                                   March 20, 2005 - May 25, 2005
                          $3.00
                                                          Apr 8                                     Sunoco - Pocasset (I)                                     May 25
                                                          I.          $2.25                         Cumberland Farms - Falmouth (II)                          I.       $2.30
                          $2.80                           II.         $2.15                         Whites Automotive Ctr - Falmouth (III)                    II.      $2.16
                                                          III.        $2.20                         Hyannis Getty - Hyannis (IV)                              III.     $2.28
                                                          IV.         $2.20                         Rack Price (V)                                            IV.      $2.24
                          $2.60
                                                          V.          $1.49                                                                                   V.       $1.48

                          $2.40
Retail Price per Gallon




                          $2.20


                          $2.00
                                                          Apr 8, 2005 =>                                                                                     May 25, 2005 =>
                          $1.80


                          $1.60


                          $1.40


                          $1.20


                          $1.00
                              3/20/05                        4/3/05                       4/17/05                         5/1/05                   5/15/05
                                                                                                     Date
                                  Notes: 1. The Providence Average Rack Price is the last trading price of the "Bloomberg Regular Gasoline Average Rack Price, Providence, Rhode
                                  Island" (ID: RKU4PROV). Non-trading days, such as weekends and holidays, assume the last trading price of the previous active trading day. 2.
                                  Professor Gollop cites April 8 as the date at which the underlying price of gasoline starts to decrease (Gollop Expert Report, p. 22).
                                  Sources: 1. OPIS; 2. Bloomberg (according to Bloomberg, data may be subject to one day lag).
                                                                                                                                                                           Confidential



                                                                                              Exhibit 33
                                                                      William White et al. v. R. M. Packer Company, Inc. et al.
                                                       Examples of Stations in Barnstable County with Constant or Increasing Prices During the
                                                       Time Periods Used by Professor Gollop for his Analysis of Alleged Cooperative Behavior
                                                                                  July 15, 2005 - November 7, 2005
                          $4.50
                                    July 15                                   Hyannis Sunoco - Hyannis (I)                                               Nov 1
                                    I.        $2.45                           Sav On - Hyannis (II)                                                      I.      $2.75
                                    II.       $2.32                                                                                                      II.     $2.52
                                                                              Cumberland Farms - Hyannis (III)
                          $4.00     III.      $2.34                                                                                                      III.    $2.52
                                    IV.       $2.51                           Station Avenue Shell - South Yarmouth (IV)                                 IV.     $2.61
                                    V.        $1.76                           Rack Price (V)                                                             V.      $1.58

                          $3.50
                                   <= Jul 15, 2005                                                                                                     Nov 1, 2005 =>
Retail Price per Gallon




                          $3.00



                          $2.50



                          $2.00



                          $1.50



                          $1.00
                              7/15/05                               8/15/05                              9/15/05                            10/15/05
                                                                                                      Date
                                  Notes: 1. The Providence Average Rack Price is the last trading price of the "Bloomberg Regular Gasoline Average Rack Price, Providence, Rhode
                                  Island" (ID: RKU4PROV). Non-trading days, such as weekends and holidays, assume the last trading price of the previous active trading day.
                                  Sources: 1. OPIS; 2. Bloomberg (according to Bloomberg, data may be subject to one day lag).
                                                                                                                                                    Confidential




                                                                               Exhibit 34
                                                       William White et al. v. R. M. Packer Company, Inc. et al.
                                                           Price Changes During Market Emergency Period
                                                                      August - September 2005

                 Dukes County: Defendants     Dukes County: Non-Defendants         Barnstable County       Professor Gollop's "Trade Area"
             Average   Change      % Change Average   Change     % Change  Average   Change      % Change Average    Change      % Change
Month         Price From August From August  Price From August From August  Price From August From August  Price From August From August
August        3.131       -            -     3.024       -            -     2.589        -            -    2.580        -             -
September     3.640     0.509       16.25%   3.520     0.495       16.38%   3.113     0.524        20.22%  3.145      0.565        21.91%


Notes:
1. Dukes County defendants include Depot Corner, Edgartown Mobil, Tisbury Shell, and XtraMart Citgo.
2. Dukes County non-defendants include Airport Fuel Services, DeBettencourt Mobil, Jim's Fuel Station, Menemsha Texaco, and Up-Island Automotive.

Sources:
1. Gas Prices Charted from Defendant Documents.Backup to Gollop Report.pdf
2. up island 2003 retail gas prices-40287.pdf
3. up island 2004 retail gas prices-40288.pdf
4. up island 2005 retail gas prices-40289.pdf
5. up island 2006 retail gas prices-40291.pdf
6. up island 2007 retail gas prices-40290.pdf
7. up island 2008 retail gas prices-40292.pdf
8. data for Jim's Shell + Airport Service Station.xlsx
9. Airport Fuel Services Prices.xls
10. OPIS

								
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