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Emerald
346-5511
Accusations fuel frustration
By Martha Irvine
The Associated Press
CHICAGO — Oil and ethanol in
dustry executives blamed each oth
er for rising gas prices Monday at a
congressional hearing designed to
examine why drivers are paying
more than $2 a gallon in cities such
as Chicago and Milwaukee.
Few left the special hearing
convened by Illinois Democrats
with much hope for a resolution.
“I think this could be a serious
situation throughout the sum
mer,” said Eric Vaughn, president
of the Renewable Fuels Associa
tion, a Washington-based group
representing ethanol producers.
One oil industry spokesman
blamed higher local taxes, noting
that Chicagoans are paying more
than 50 cents in total taxes per gal
lon. He also said new mandates to
use reformulated gas with ethanol
in Chicago and Milwaukee have
contributed to the price jump.
Ethanol, made from corn and
subsidized by a federal tax break,
burns cleaner than other fuels.
“I’m not knocking ethanol. It’s
a good product,” said David
Sykuta, executive director of the
Illinois Petroleum Council. “But
it’s a logistical nightmare to han
dle this stuff.”
For example, he said, gas with
ethanol must be transported by
truck or train because it damages
pipelines. Meanwhile, only about
half of the six refineries in Illinois
have been retooled to make gas
with ethanol, he said.
In a separate briefing in New
York, American Petroleum Insti
tute president Red Cavaney cited
“six or seven different variables”
for the higher Midwest prices —
everything from ethanol to the in
crease of crude prices to above
$30 a barrel to pipelines that have
been out of commission.
But members of the congression
al panel, the Environmental Protec
tion Agency and a spokesman for
the ethanol industry disputed the
explanations.
Panel members said the indus
try should be charging no more
than an additional 8 cents a gallon
for gas that has ethanol in it in
stead of MTBE, a controversial ad
ditive used in most states that
some environmentalists believe
contaminates water supplies.
Illinois, the nation’s biggest
ethanol producer, is one of the
few states that requires its use as a
gas additive. Minnesota, where
prices have not exceeded the $2
a-gallon mark, is another.
“I think the oil companies are
punishing and gouging us for us
ing ethanol,” said Rep. Jan
Schakowsky, one of four Illinois
Democrats who made up the Con
gressional panel. “It’s the only
reason I can come up with to ex
plain why Chicago and Milwau
kee are paying 40 cents more a
gallon than everyone else.”
The meeting came just two
days before ministers from the Or
ganization of Petroleum Export
ing Countries are scheduled to
meet to discuss raising produc
tion by about 500,000 barrels a
day — or about 2 percent of the
countries’ total production.
But analysts have suggested
that even if the increase is ap
proved, it could be several weeks
before enough oil is produced to
help lower gas prices.
Rep. Luis Gutierrez said he
would ask Attorney General Janet
Reno to look for any signs of
price-fixing in the oil industry.
The Federal Trade Commission is
already investigating.
Cavaney, of the American Petro
leum Institute, defended the in
dustry, saying it was being blamed
as a scapegoat even though no
proof existed of the companies’ al
leged price manipulation.
Arrests
continued from page 1A
Schoonmaker walked away from
the jail shirtless.
Sunday afternoon’s rally was
mostly peaceful, with speakers
using a bullhorn to address the
crowd about their beliefs or some
times just to rant and yell obsceni
ties. Hundreds of people milled
about, either1 listening to the
speeches or talking amongst
themselves.
Once a punk band wrapped up
its set, a group of about 100 peo
ple moved the rally to the Satur
day Market area at Eighth Avenue
and Oak Street. There they played
several games of Red Rover in the
middle of the street before police
in riot gear ordered them to leave
the area.
When the protesters stood their
ground, police moved in and be
gan making arrests, firing bean
bag rounds at the dispersing
groups. The police brigade then
began cordoning off streets and
pushing the protesters out of the
area.
Arrest figures for Sunday night
were in the mid-20s, and the most
common charges were disorderly
conduct and interfering with a
peace officer. A strong number of
police — estimated at 100 to 150
— swept into the Washington-Jef
ferson Bridge area on bikes, in
vans, in patrol cars and on foot.
One of the neutral observers at
Sunday’s afternoon rally in the
park was told by police officers
that he would have to leave the
area as they began their Sunday
night actions.
“I think the anarchist folks are
a little frightening; they’re scary to
the community,” John Buffalo
said. “But I think that no matter
what they did ... which they did
n’t really do anything ... Nothing
could have brought on this; this is
overkill to the max.”
The majority of the weekend’s
arrests came Friday night follow
ing a gathering at Prince Lucien
Campbell Hall on campus, where
approximately 300 punks, anar
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chists and other citizens attended
a video premiere of “Breaking the
Spell.” The video, made by Eu
gene resident Tim Lewis, is a
compilation of footage from last
December’s World Trade Organi
zation protests in Seattle.
A large part of the contingent
then made its way to the Lane
County Jail, where police con
fronted the crowd and began mak
ing arrests. All observers and
news media were kept at bay
while the arrests were being
made.
Included in the total number of
arrests were two suspects in a ve
hicle fire at the Joe Romania car
dealership at Franklin Boulevard
and Walnut Street.
After police received a 911 call
at 1:04 a.m. Friday, they respond
ed and stopped Jeffrey Michael
Luers, 21, and Craig Andrew Mar
shall, 27, who were observed
driving in the area. The men were
eventually arrested and charged
with first-degree criminal mis
chief and first-degree arson.
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