Friday,  July 20, 2012 • Vol. 13--No. 007 • 23 of 37 •  Other Editions

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Lawsuit says 2 fuel dealers sold substandard gas

• SIOUX FALLS, S.D. (AP) -- A Democratic state legislator and five others have filed lawsuit accusing two fuel companies of overcharging for some gasoline and lying about the quality.
• The lawsuit claims that Harms Oil Co., of Brookings, and M.G. Oil Co., of Rapid City, sold gasoline with an 85-octane rating as if it were rated at 87. It says the sales could have taken place for several years. The lower octane rating can cause rough engine running in some vehicles.
• The companies "knowingly and fraudulently charged inflated prices" for the fuel, the lawsuit says. Its plaintiffs, which include state Rep. Mitch Fargen, D-Flandreau,

want to expand the lawsuit to include South Dakotans who may have bought mislabeled fuel after 2002.
• Jason Harms, a vice president at Harms Oil, challenged the lawsuit's allegations and said the company planned to "vigorously defend our positions."
• "We are going to focus on two things as a fuel distributor. Number one is to supply gasoline to our customers, and number two (is) to work with regulatory agencies on this issue," Harms told the Sioux Falls Argus Leader.
• M.G. Oil Co. did not respond Thursday to telephone messages left by The Associated Press for comment.
• The lawsuit follows an investigation by South Dakota's Department of Public Safety that showed a number of gasoline stations were not given required documentation about the quality of the fuel they were buying, and that some were selling 85-octane gasoline with a higher rating. The agency earlier determined that it is illegal to sell 85-octane fuel in South Dakota.
• The state's octane battle heightened in June when Attorney General Marty Jackley issued an opinion stating that 85-octane fuel can't be sold in the state, in part because some consumers could unknowingly damage their vehicles by using the lower-octane fuel. Many vehicle manufacturers recommend a minimum of 87-octane fuel.
• Gov. Dennis Daugaard intervened because he worried that a ban would cause fuel shortages. Gas stations selling 85-octane fuel are supposed to post warnings to customers.
• A public hearing on state rules that would permanently allow sales of the lower-octane fuel is scheduled Friday in Pierre.
• Separately, the Department of Public Safety said Thursday said it had acquired

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