Full Text:

Mobil/Exxon Merger Puts The Squeeze On Local Station Owners

(with photo)

BY STEVE BIGHAM

Twenty seven Exxon station owners from across the state have filed a lawsuit

against the company claiming it has breached a contract by selling their

businesses out from underneath them.

Among them is Nicholas Kopcik of Newtown Exxon, a local businessman, who feels

he is being treated unfairly by the powerful oil company.

As a dealer/franchisee, Mr Kopcik has been building his business up for years,

hoping to someday buy the retail outlet. Now, Exxon has plans to sell the

station to Alliance Energy/Global Petroleum of Connecticut. Mr Kopcik's future

at the station's remains uncertain.

According to Michael Fox, executive director of the gasoline and automobile

dealers of America in Stamford, Exxon is trying to dump the service stations

that directly serve Connecticut as part of its merger with Mobil. In a normal

merger, the company that buys out the other usually assimilates those

businesses. However, in the oil industry, both service stations cannot remain

in business under two different flags (Exxon and Mobil). The state's

Divorcement Law passed in 1978 prohibits Exxon from running a company-owned

store. It would be a sham on the public, Mr Fox explained.

In short, the government does not allow Exxon to put a manager in the store

and run it. It has to be sold to a franchisee.

In order to get around that, Mr Kopcik believes Exxon is trying to sell the

stations so they can say "we have no control over them."

That's not the case, however, according to Mr Fox.

"They can indirectly control the pricing by rents, rent rebates and the price

of gasoline sold to us at the station," he said. "But by selling them off, it

eliminates the perception of a conflict of interest."

All across the state, Mr Fox said, Exxon has been selling the Exxon property

to another distributorship right out from under guys like Nick. The next thing

that happens is they double and triple the rent, forcing Nick and others out.

"Exxon is trying to sell property out from under me. It violates federal law,"

said Mr Kopcik, who said federal law gives him right-of-first-refusal if the

Exxon land was ever put on the market.

"They met with us and said everything would remain the same. However, rumors

are going around that rents are going to get worse," Mr Kopcik said. "They're

in a position where they can't force me out, but they can make it unprofitable

for me to be here."

As of now, Mr Kopcik's business does not appear to be in any immediate danger.

He still has a three-year lease.

"It's aggravating that overnight they come up with something like this, but I

don't want people to think I'm going out of business tomorrow. That's not the

case," he said.

Attempts to reach a spokesperson from Exxon familiar with the issue were

unsuccessful.