San Diego, CA
Two companies agree to pay $50M over allegations they manipulated California gas prices
The California Attorney General’s Office on Wednesday announced a $50 million settlement over allegations that two gasoline trading firms secretly worked together and manipulated prices on the spot market for gasoline in Southern California in 2015.
The agreement is scheduled to go before San Francisco Superior Court Judge Y.S. Cheng on Aug. 2 to be finalized.
Pending the judge’s approval, the settlement wraps up four years of litigation between the Attorney General, Dutch multinational energy and commodity trading company Vitol, Korea-based SK Energy Americas and SK’s trading arm.
During that time, more than 2 million documents were exchanged and some 50 depositions were submitted among the parties.
The dispute dates back to a lawsuit filed in May 2020, when the state accused Vitol and SK of taking advantage of market conditions after an explosion at a refinery in Torrance knocked off about 10 percent of the state’s gasoline supply. The lawsuit claimed the companies engaged “in a scheme to drive up gas prices for their own profit” by suppressing competition within the gas market, thus driving up prices for consumers.
The lawsuit accused Vitol and SK of trading small amounts of gasoline at high prices, with the intention of causing a spike in the prices of large volumes of gas sold in California’s fuel market.
Under the terms of the agreement, Vitol and SK will pay $12.5 million in civil penalties under California’s Unfair Competition Law and $37.5 million to the Attorney General’s office. Both companies no longer operate in the California gasoline trading market.
“Market manipulation and price gouging are illegal and unacceptable, particularly during times of crisis when people are most vulnerable,” Attorney General Rob Bonta said in a statement.
The Union-Tribune reached out to Vitol and SK to comment on the settlement but did not receive responses from either company by 5 p.m. Wednesday. In the agreement, there is no admission by Vitol or SK of legal wrongdoing.
The Attorney General’s Office said the inflated price of retail gas affected 10 counties in Southern California — including San Diego County — between Feb. 20 and Nov. 10, 2015. Under the settlement, customers who purchased gas during that period may file a claim to receive a portion of the $37.5 million paid by Vitol and SK.
According to the Attorney General’s Office, the $37.5 million is currently sitting in escrow and can be tapped when and if the judge OKs the agreement.
Once that is done, a process will be put in place to notify customers how to file claims and access their respective shares of the $37.5 million payout. According to the settlement, notifications will include sending postcards to households and posting a link where customers can fill out claims.
The $12.5 million in civil penalties will go to a fund that supports the Unfair Competition Law, which includes paying the legal fees associated with bringing the case against Vitol and SK.
Over the course of the lawsuit, one expert called by the Attorney General’s Office estimated the higher price in gasoline attributed to Vitol and SK in 2015 came to $127.8 million.
But the AG’s office said in the legal agreement that “a number of challenges and unsettled legal issues” could potentially reduce the monetary liability that Vitol and SK faced. The office cited the “difficulty of piecing together the actions of individuals nine years ago” and the “inherent risk of putting on a jury trial.”
Taking those factors into consideration, “the negotiated Settlement represents the best outcome for consumers,” the Attorney General’s Office said.
The high cost of gasoline has long been a hot political topic in California, most recently after drivers saw the average price of a gallon of regular soar past $6 during spikes in 2022 and 2023.
With the prodding of Gov. Gavin Newsom, the Legislature last year passed Senate Bill X1-2.
Hailed by the governor’s office as the “nation’s first price gouging law,” SB X1-2 created the Division of Petroleum Market Oversight to monitor the state’s crude oil and gasoline companies.
The division’s director issued a statement after Wednesday’s settlement was announced.
“When oil companies manipulate markets to line their own pockets, California will hold them accountable, and I commend my former colleagues in the Department of Justice on seeing this landmark case through to a successful conclusion,” Tai Milder said.
SB X1-2 requires refineries to report maintenance schedules in advance and provide daily reports on the market and imports. In addition, the legislation gives the California Energy Commission authority to penalize oil companies if they exceed a “maximum gross refining margin.”
The details of what will trigger the penalty — the first of its kind in the U.S. — and when it will be enforced are still being worked out.
San Diego, CA
More Thoughts on ‘Yes on A’
By Dave Rice
Is Measure A going to affect a significant number of properties? Is it going to affect affordable housing in any meaningful way? Come now, let’s not be dense – this hits a handful of rich people who can absolutely afford to drop $10K in the city coffers if they’re leaving a vacation home vacant on purpose – let’s say that’s their civic contribution that would be realized in other ways if they actually lived, worked, and shopped here full-time.
Or it hits STVR hosts, who can either factor the cost into their business model or give it up if margins are really that thin (maybe not everyone needs to fancy themselves an amateur hotelier). But let’s not kid ourselves and believe the kind of housing this will free up will be plentiful or affordable.
In the exceedingly rare instances where someone might be eligible for an exemption, will it be too hard to apply for? That’s something we can argue and refine but that’s the bathwater, or just the little bit of it that splashes out of the tub, not the baby. An argument that the whole proposal is DOA because military members are too stupid to file for an exemption is either dismissive of or telling tales out of school about what we really think of military intelligence.
Poor, poor grandma who needs a home near her doctor? If she’s really poor why does she have multiple houses, and if she’s not does this really affect her? I live in a neighborhood where “aren’t you afraid you’re going to get shot?” is the first thing outsiders ask me about where I’m from, and if Grandma has owned her mostly-unoccupied vacation house for any significant time I probably pay a lot more property tax than she does. You couldn’t trip over the limbo bar to gain my sympathy, it’s buried a few feet deep.
This is a tiny nod toward taxing the rich, but that’s all. It’s not significant or meaningful, it won’t do a lot, most of the housing stock in question even if returned to actual residents won’t make a dent in the astronomical cost of living in or anywhere near this city. But it’s a tiny step in the right direction – and watching how hysterical the moneyed class is about the rest of us asking for even the tiniest drop in the goddamned bucket we’re trying to fill without their help is telling.
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San Diego, CA
Dining Out — series Part 1: A look at the evolution of La Jolla’s restaurant scene
This is the first installment in a series of stories on the history of dining out in La Jolla, how it’s changed and how it continues to evolve.
It’s hard to imagine La Jolla without its restaurants, from the lines stretching down the block at The Taco Stand to the iconic views at George’s at the Cove.
But the way La Jollans eat and where has changed dramatically since the area’s founding in the 1800s.
In this first part of the new month-long series “Dining Out,” the La Jolla Light looks at local restaurants from the 1880s (when La Jolla was first developed and settled) to the early 1920s.
“La Jolla had very few people at that time,” according to local historian Carol Olten. “There weren’t a lot of restaurants, as far as we know.”
Olten said she gets information about La Jolla’s earliest days from the diaries of local pioneer Anson Mills.
“He kept track of where he went and what he did … but he did a lot of home cooking,” she said. “So when they went to a restaurant for dinner, it was a big occasion. It was something people mainly did on holidays or … a social occasion.”
One restaurant Mills would go to — believed to be one of the first in La Jolla — was Montezuma Cottage. Olten said it is believed to have opened in 1895 near the intersection of Prospect and Jenner streets.
Mills described the restaurant as a popular eating and gathering spot for locals and tourists, Olten said. He wrote an entry about a Thanksgiving dinner there with about 60 people.
Montezuma Cottage later became known as the Seaside Inn and Ocean View restaurant. It was torn down in 1931.
Culturally, eating at a restaurant was a more formal occasion at the time, Olten said.
“You didn’t go to a restaurant just to hang out with friends like you would today. It was purposeful then,” she said.
Around 1900, a restaurant known as the White Rabbit opened near the corner of Girard Avenue and Prospect Street. In addition to a rooftop garden, it featured a tea room, joining a national trend.
“Tea rooms went with the suffragette movement because in those days, [women] didn’t have a place to gather without an escort, so tea rooms started opening in hotels and women could go there and sit down and have a social tea or lunch,” Olten said. “La Jolla got in on the tail end of that thanks to [Green Dragon Colony founder] Anna Held and [La Jolla philanthropist] Ellen Browning Scripps.”
One of them, called The Cricket, opened in the early 1900s with white tablecloths. Olten said it was near what it is now Eddie V’s restaurant.
“It was originally part of the Green Dragon Colony … and was sold to a British woman named Daisy Mitchell,” she said. “It stayed a tea room for many years, and she kept a guest book that was decorated with reds and greens and had a medieval theme. So it was very British.”
Joining a trend toward more upscale dining, one of La Jolla’s “most well-established and well-known restaurants” opened in 1912 at 1227 Prospect St. The Brown Bear had “stylish, fashionable service and a menu to please the gods,” Olten said.
A house specialty was Welsh rabbit served in a silver chafing dish. The restaurant was in operation until 1941.
Several restaurants opened around 1915, about the same time as the Panama-California Exposition, a world’s fair-type event held in 1915-16 that brought 3.7 million people to San Diego.
One of La Jolla’s new restaurants, the Spindrift Inn, opened in 1916 and was considered a “last stop” out of town.
“Most restaurants at that time were located in the immediate Village area,” Olten said. “The one that was astray would have been the Spindrift Inn [in La Jolla Shores]. This was in the very early days of automobiles, so not very many people had cars, but those that did would … drive their cars and the last stop before you got out of town was Spindrift Inn.”
The Spindrift Inn later became The Marine Room, which still stands.
Olten said the restaurant was operated by the Hannay family for about 20 years. Their “rambunctious” fox terrier, Jiggs, would roam the dining room.
Another Expo-era restaurant was the Dining Car, which operated in an old trolley car parked near Goldfish Point. Dinner was $2 per person. It burned down on Halloween night in 1923.
Next installment: With new hotels being built in La Jolla in the 1920s came new hotel restaurants. But later, World War II would have an impact on La Jollans and San Diegans in general and on where and how they ate. ♦
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