32786 Federal Register / Vol. 61, No. 123 / Tuesday, June 25, 1996 / Notices

ACTION: Sources Sought for possible

future competitive solicitation.

SUMMARY: The U.S. Department of

Energy (DOE), Pittsburgh Energy

Technology Center (PETC) is

contemplating research efforts leading

to technology demonstration in the area

of coprocessing fossil fuels (coal and

resid) and municipal solid wastes for

producing a source of premium liquid

fuels and valuable chemicals as byproducts. The Department believes that

benefits associated with coprocessing

include, improved plant operability,

increased product value and more

favorable economics. We are interested

in aiding in the formulation of nonfederal project teams that would

eventually demonstrate the reference or

alternate technology. Information

should be submitted pertinent to the

area of interest, such as experience of

the entity and personnel and a

description of the applicable technology

which can result in a demonstration

program and commercialization.

Responses should be limited to 5–10

pages.

ADDRESSES: U. S. Department of Energy,

Pittsburgh Energy Technology Center,

Acquisition and Assistance Division,

P.O. Box 10940, MS 921–118,

Pittsburgh, PA 15236–0940.

FOR FURTHER INFORMATION CONTACT:

William R. Mundorf, Contract

Specialist, 412/892–4483, Internet:

Mundorf@PETC.DOE.GOV.

SUPPLEMENTARY INFORMATION:

Cooperative Agreements are

contemplated.

Title of Effort:

Co-Processing of Coal with Plastics,

Rubber or Other Solid Wastes to

Produce Alternative Liquid Fuels

Award(s)

Phase 1—three to five, reducing to

two or three in Phase 2, and finally

one awardee in Phase 3

Term of Assistance Award(s)

Five (5) Years

Cost of Assistance Effort

The total estimated program value is

$25–35 Million

Phase 1—$100,000 per award, at least

20% cost sharing by non-federal

entity

Phase 2—$1–2 Million per award, at

least 35% cost sharing by nonfederal entity

Phase 3—$25+ Million, at least 50%

cost sharing by non-federal entity

Objective

The objectives of this program is to

provide the nation by 2005 with an

alternative source of liquid fuels,

costing $25 per barrel (Required selling

price in mid 1996 dollars) or less, that

can be produced from coal and solid

wastes. Some of the technological areas

that might meet this goal include:

Reference Technology

(1) Direct liquefaction technology

with coal PETC is already investigating

the addition of waste materials (plastics,

used oils and tires) to the direct coal

liquefaction process and preliminary

results are encouraging. Work remains

to be done in areas of feed preparation,

thermodynamic properties for scale-up

data, and product upgrading, process

engineering, and economics.

Alternate Approaches

(2) Indirect liquefaction technology

with coal Waste materials and coal

could be gasified and the resulting

syngas converted to liquid fuels through

Fischer-Tropsch or oxygenate-synthesis

technology.

(3) Conversion technologies without

coal PETC recognizes that in some

instances conversion technologies might

best be employed on waste feedstocks

without the addition of coal to the

process to produce premium liquid

fuels.

(4) Pyrolysis and Pre-treatments: Mild

to severe pyrolysis of wastes could

liquid products that could be used to

generate premium liquid fuels. Pretreatments could include processes that

would facilitate the goal of converting

solid wastes to produce high-value

products.

(5) Other technologies not specified

PETC recognizes that innovative

solutions to this problem may come

from a combination of technologies or

from technology areas not previously

identified.

Responsive technologies would be

those that are economically competitive

with current disposal technologies such

as land fill and incineration,

environmentally benign, with little

potential environmental impact through

ash/slag disposal, air emissions, ground

water contamination, and fugitive

missions. Entities of particular interest

in this announcement are key

stakeholders that would be interested in

applying the technology and using the

fuel and chemical products such as:

State/Municipal interests, solid waste

management infrastructure (e.g., landfill operators, haulers and regulators),

environmental interests, coal producers,

universities, technology developers and

the oil industry.

Issue Date: June 14, 1996.

Debra E. Ball,

Contracting Officer.

[FR Doc. 96–16123 Filed 6–24–96; 8:45 am]

BILLING CODE 6450–01–P

Revised Summary of Title I of the

Petroleum Marketing Practices Act

AGENCY: Department of Energy.

ACTION: Notice.

SUMMARY: This notice contains a

summary of Title I of the Petroleum

Marketing Practices Act, as amended

(the Act). The Petroleum Marketing

Practices Act was originally enacted on

June 19, 1978, and was amended by the

Petroleum Marketing Practices Act

Amendments of 1994, enacted on

October 19, 1994. On August 30, 1978,

the Department of Energy published in

the Federal Register a summary of the

provisions of Title I of the 1978 law, as

required by the Act. The Department is

publishing this revised summary to

reflect key changes made by the 1994

amendments.

The Act is intended to protect

franchised distributors and retailers of

gasoline and diesel motor fuel against

arbitrary or discriminatory termination

or nonrenewal of franchises. This

summary describes the reasons for

which a franchise may be terminated or

not renewed under the law, the

responsibilities of franchisors, and the

remedies and relief available to

franchisees. The Act requires

franchisors to give franchisees copies of

the summary contained in this notice

whenever notification of termination or

nonrenewal of a franchise is given.

FOR FURTHER INFORMATION CONTACT:

Carmen Difiglio, Office of Energy

Efficiency, Alternative Fuels, and Oil

Analysis (PO–62), U.S. Department of

Energy, Washington, D.C. 20585,

Telephone (202) 586–4444; Lawrence

Leiken, Office of General Counsel (GC–

73), U.S. Department of Energy,

Washington, D.C. 20585, Telephone

(202) 586–6978.

SUPPLEMENTARY INFORMATION: Title I of

the Petroleum Marketing Practices Act,

as amended, 15 U.S.C. §§ 2801–2806,

provides for the protection of franchised

distributors and retailers of motor fuel

by establishing minimum Federal

standards governing the termination of

franchises and the nonrenewal of

franchise relationships by the franchisor

or distributor of such fuel.

Section 104(d)(1) of the Act required

the Secretary of Energy to publish in the

Federal Register a simple and concise

summary of the provisions of Title I,

including a statement of the respective
Federal Register / Vol. 61, No. 123 / Tuesday, June 25, 1996 / Notices 32787

responsibilities of, and the remedies and

relief available to, franchisors and

franchisees under that title. The

Department published this summary in

the Federal Register on August 30,

1978. 43 F.R. 38743 (1978).

In 1994 the Congress enacted the

Petroleum Marketing Practices Act

Amendments to affirm and clarify

certain key provisions of the 1978

statute. Among the key issues addressed

in the 1994 amendments are: (1)

termination or nonrenewal of franchised

dealers by their franchisors for purposes

of conversion to ‘‘company’’ operation;

(2) application of state law; (3) the rights

and obligations of franchisors and

franchisees in third-party lease

situations; and (4) waiver of rights

limitations. See H.R. REP. NO. 737,

103rd Cong., 2nd Sess. 2 (1994),

reprinted in 1994 U.S.C.C.A.N. 2780.

Congress intended to: (1) make explicit

that upon renewal a franchisor may not

insist on changes to a franchise

agreement where the purpose of such

changes is to prevent renewal in order

to convert a franchisee-operated service

station into a company-operated service

station; (2) make clear that where the

franchisor has an option to continue the

lease or to purchase the premises but

does not wish to do so, the franchisor

must offer to assign the option to the

franchisee; (3) make clear that no

franchisor may require, as a condition of

entering or renewing a franchise

agreement, that a franchisee waive any

rights under the Petroleum Marketing

Practices Act, any other Federal law, or

any state law; and (4) reconfirm the

limited scope of Federal preemption

under the Act. Id.

The summary which follows reflects

key changes to the statute resulting from

the 1994 amendments. The Act requires

franchisors to give copies of this

summary statement to their franchisees

when entering into an agreement to

terminate the franchise or not to renew

the franchise relationship, and when

giving notification of termination or

nonrenewal. This summary does not

purport to interpret the Act, as

amended, or to create new legal rights.

In addition to the summary of the

provisions of Title I, a more detailed

description of the definitions contained

in the Act and of the legal remedies

available to franchisees is also included

in this notice, following the summary

statement.

Summary of Legal Rights of Motor Fuel

Franchisees

This is a summary of the franchise

protection provisions of the Federal

Petroleum Marketing Practices Act, as

amended in 1994 (the Act), 15 U.S.C.

§§ 2801–2806. This summary must be

given to you, as a person holding a

franchise for the sale, consignment or

distribution of gasoline or diesel motor

fuel, in connection with any termination

or nonrenewal of your franchise by your

franchising company (referred to in this

summary as your supplier).

You should read this summary

carefully, and refer to the Act if

necessary, to determine whether a

proposed termination or nonrenewal of

your franchise is lawful, and what legal

remedies are available to you if you

think the proposed termination or

failure to renew is not lawful. In

addition, if you think your supplier has

failed to comply with the Act, you may

wish to consult an attorney in order to

enforce your legal rights.

The franchise protection provisions of

the Act apply to a variety of franchise

agreements. The term ‘‘franchise’’ is

broadly defined as a license to use a

motor fuel trademark which is owned or

controlled by a refiner, and it includes

secondary arrangements such as leases

of real property and motor fuel supply

agreements which have existed

continuously since May 15, 1973,

regardless of a subsequent withdrawal

of a trademark. Thus, if you have lost

the use of a trademark previously

granted by your supplier but have

continued to receive motor fuel supplies

through a continuation of a supply

agreement with your supplier, you are

protected under the Act.

Any issue arising under your

franchise which is not governed by this

Act will be governed by the law of the

State in which the principal place of

business of your franchise is located.

Although a State may specify the

terms and conditions under which your

franchise may be transferred upon the

death of the franchisee, it may not

require a payment to you (the

franchisee) for the goodwill of a

franchise upon termination or

nonrenewal.

The Act is intended to protect you,

whether you are a distributor or a

retailer, from arbitrary or discriminatory

termination or nonrenewal of your

franchise agreement. To accomplish

this, the Act first lists the reasons for

which termination or nonrenewal is

permitted. Any notice of termination or

nonrenewal must state the precise

reason, as listed in the Act, for which

the particular termination or

nonrenewal is being made. These

reasons are described below under the

headings ‘‘Reasons for Termination’’

and ‘‘Reasons for Nonrenewal.’’

The Act also requires your supplier to

give you a written notice of termination

or intention not to renew the franchise

within certain time periods. These

requirements are summarized below

under the heading ‘‘Notice

Requirements for Termination or

Nonrenewal.’’

The Act also provides certain special

requirements with regard to trial and

interim franchise agreements, which are

described below under the heading

‘‘Trial and Interim Franchises.’’

The Act gives you certain legal rights

if your supplier terminates or does not

renew your franchise in a way that is

not permitted by the Act. These legal

rights are described below under the

heading ‘‘Your Legal Rights.’’

The Act contains provisions

pertaining to waiver of franchisee rights

and applicable State law. These

provisions are described under the

heading ‘‘Waiver of Rights and

Applicable State Law.’’

This summary is intended as a simple

and concise description of the general

nature of your rights under the Act. For

a more detailed description of these

rights, you should read the text of the

Petroleum Marketing Practices Act, as

amended in 1994 (15 U.S.C. §§ 2801–

2806). This summary does not purport

to interpret the Act, as amended, or to

create new legal rights.

I. Reasons for Termination

If your franchise was entered into on

or after June 19, 1978, the Act bars

termination of your franchise for any

reasons other than those reasons

discussed below. If your franchise was

entered into before June 19, 1978, there

is no statutory restriction on the reasons

for which it may be terminated. If a

franchise entered into before June 19,

1978, is terminated, however, the Act

requires the supplier to reinstate the

franchise relationship unless one of the

reasons listed under this heading or one

of the additional reasons for nonrenewal

described below under the heading

‘‘Reasons for Nonrenewal’’ exists.

A. Non-Compliance with Franchise

Agreement

Your supplier may terminate your

franchise if you do not comply with a

reasonable and important requirement

of the franchise relationship. However,

termination may not be based on a

failure to comply with a provision of the

franchise that is illegal or unenforceable

under applicable Federal, State or local

law. In order to terminate for noncompliance with the franchise

agreement, your supplier must have

learned of this non-compliance recently.

The Act limits the time period within

which your supplier must have learned

of your non-compliance to various

periods, the longest of which is 120
32788 Federal Register / Vol. 61, No. 123 / Tuesday, June 25, 1996 / Notices

days, before you receive notification of

the termination.

B. Lack of Good Faith Efforts

Your supplier may terminate your

franchise if you have not made good

faith efforts to carry out the

requirements of the franchise, provided

you are first notified in writing that you

are not meeting a requirement of the

franchise and you are given an

opportunity to make a good faith effort

to carry out the requirement. This

reason can be used by your supplier

only if you fail to make good faith

efforts to carry out the requirements of

the franchise within the period which

began not more than 180 days before

you receive the notice of termination.

C. Mutual Agreement To Terminate the

Franchise

A franchise can be terminated by an

agreement in writing between you and

your supplier if the agreement is entered

into not more than 180 days before the

effective date of the termination and you

receive a copy of that agreement,

together with this summary statement of

your rights under the Act. You may

cancel the agreement to terminate

within 7 days after you receive a copy

of the agreement, by mailing (by

certified mail) a written statement to

this effect to your supplier.

D. Withdrawal From the Market Area

Under certain conditions, the Act

permits your supplier to terminate your

franchise if your supplier is

withdrawing from marketing activities

in the entire geographic area in which

you operate. You should read the Act

for a more detailed description of the

conditions under which market

withdrawal terminations are permitted.

See 15 U.S.C. § 2802(b)(E).

E. Other Events Permitting a

Termination

If your supplier learns within the time

period specified in the Act (which in no

case is more than 120 days prior to the

termination notice) that one of the

following events has occurred, your

supplier may terminate your franchise

agreement:

(1) Fraud or criminal misconduct by

you that relates to the operation of your

marketing premises.

(2) You declare bankruptcy or a court

determines that you are insolvent.

(3) You have a severe physical or

mental disability lasting at least 3

months which makes you unable to

provide for the continued proper

operation of the marketing premises.

(4) Expiration of your supplier’s

underlying lease to the leased marketing

premises, if: (a) your supplier gave you

written notice before the beginning of

the term of the franchise of the duration

of the underlying lease and that the

underlying lease might expire and not

be renewed during the term of the

franchise; (b) your franchisor offered to

assign to you, during the 90-day period

after notification of termination or

nonrenewal was given, any option

which the franchisor held to extend the

underlying lease or to purchase the

marketing premises (such an assignment

may be conditioned on the franchisor

receiving from both the landowner and

the franchisee an unconditional release

from liability for specified events

occurring after the assignment); and (c)

in a situation in which the franchisee

acquires possession of the leased

marketing premises effective

immediately after the loss of the right of

the franchisor to grant possession, the

franchisor, upon the written request of

the franchisee, made a bona fide offer to

sell or assign to the franchisee the

franchisor’s interest in any

improvements or equipment located on

the premises, or offered the franchisee a

right of first refusal of any offer from

another person to purchase the

franchisor’s interest in the

improvements and equipment.

(5) Condemnation or other taking by

the government, in whole or in part, of

the marketing premises pursuant to the

power of eminent domain. If the

termination is based on a condemnation

or other taking, your supplier must give

you a fair share of any compensation

which he receives for any loss of

business opportunity or good will.

(6) Loss of your supplier’s right to

grant the use of the trademark that is the

subject of the franchise, unless the loss

was because of bad faith actions by your

supplier relating to trademark abuse,

violation of Federal or State law, or

other fault or negligence.

(7) Destruction (other than by your

supplier) of all or a substantial part of

your marketing premises. If the

termination is based on the destruction

of the marketing premises and if the

premises are rebuilt or replaced by your

supplier and operated under a franchise,

your supplier must give you a right of

first refusal to this new franchise.

(8) Your failure to make payments to

your supplier of any sums to which

your supplier is legally entitled.

(9) Your failure to operate the

marketing premises for 7 consecutive

days, or any shorter period of time

which, taking into account facts and

circumstances, amounts to an

unreasonable period of time not to

operate.

(10) Your intentional adulteration,

mislabeling or misbranding of motor

fuels or other trademark violations.

(11) Your failure to comply with

Federal, State, or local laws or

regulations of which you have

knowledge and that relate to the

operation of the marketing premises.

(12) Your conviction of any felony

involving moral turpitude.

(13) Any event that affects the

franchise relationship and as a result of

which termination is reasonable.

II. Reasons for Nonrenewal

If your supplier gives notice that he

does not intend to renew any franchise

agreement, the Act requires that the

reason for nonrenewal must be either

one of the reasons for termination listed

immediately above, or one of the

reasons for nonrenewal listed below.

A. Failure To Agree on Changes or

Additions To Franchise

If you and your supplier fail to agree

to changes in the franchise that your

supplier in good faith has determined

are required, and your supplier’s

insistence on the changes is not for the

purpose of converting the leased

premises to a company operation or

otherwise preventing the renewal of the

franchise relationship, your supplier

may decline to renew the franchise.

B. Customer Complaints

If your supplier has received

numerous customer complaints relating

to the condition of your marketing

premises or to the conduct of any of

your employees, and you have failed to

take prompt corrective action after

having been notified of these

complaints, your supplier may decline

to renew the franchise.

C. Unsafe or Unhealthful Operations

If you have failed repeatedly to

operate your marketing premises in a

clean, safe and healthful manner after

repeated notices from your supplier,

your supplier may decline to renew the

franchise.

D. Operation of Franchise is

Uneconomical

Under certain conditions specified in

the Act, your supplier may decline to

renew your franchise if he has

determined that renewal of the franchise

is likely to be uneconomical. Your

supplier may also decline to renew your

franchise if he has decided to convert

your marketing premises to a use other

than for the sale of motor fuel, to sell the

premises, or to materially alter, add to,

or replace the premises.
Federal Register / Vol. 61, No. 123 / Tuesday, June 25, 1996 / Notices 32789

III. Notice Requirements for

Termination or Nonrenewal

The following is a description of the

requirements for the notice which your

supplier must give you before he may

terminate your franchise or decline to

renew your franchise relationship.

These notice requirements apply to all

franchise terminations, including

franchises entered into before June 19,

1978 and trial and interim franchises, as

well as to all nonrenewals of franchise

relationships.

A. How Much Notice Is Required

In most cases, your supplier must give

you notice of termination or nonrenewal at least 90 days before the

termination or nonrenewal takes effect.

In circumstances where it would not

be reasonable for your supplier to give

you 90 days notice, he must give you

notice as soon as he can do so. In

addition, if the franchise involves leased

marketing premises, your supplier may

not establish a new franchise

relationship involving the same

premises until 30 days after notice was

given to you or the date the termination

or nonrenewal takes effect, whichever is

later. If the franchise agreement permits,

your supplier may repossess the

premises and, in reasonable

circumstances, operate them through his

employees or agents.

If the termination or nonrenewal is

based upon a determination to

withdraw from the marketing of motor

fuel in the area, your supplier must give

you notice at least 180 days before the

termination or nonrenewal takes effect.

B. Manner and Contents of Notice

To be valid, the notice must be in

writing and must be sent by certified

mail or personally delivered to you. It

must contain:

(1) A statement of your supplier’s

intention to terminate the franchise or

not to renew the franchise relationship,

together with his reasons for this action;

(2) The date the termination or nonrenewal takes effect; and

(3) A copy of this summary.

IV. Trial Franchises and Interim

Franchises

The following is a description of the

special requirements that apply to trial

and interim franchises.

A. Trial Franchises

A trial franchise is a franchise,

entered into on or after June 19, 1978,

in which the franchisee has not

previously been a party to a franchise

with the franchisor and which has an

initial term of 1 year or less. A trial

franchise must be in writing and must

make certain disclosures, including that

it is a trial franchise, and that the

franchisor has the right not to renew the

franchise relationship at the end of the

initial term by giving the franchisee

proper notice.

The unexpired portion of a transferred

franchise (other than as a trial franchise,

as described above) does not qualify as

a trial franchise.

In exercising his right not to renew a

trial franchise at the end of its initial

term, your supplier must comply with

the notice requirements described above

under the heading ‘‘Notice

Requirements for Termination or

Nonrenewal.’’

B. Interim Franchises

An interim franchise is a franchise,

entered into on or after June 19, 1978,

the duration of which, when combined

with the terms of all prior interim

franchises between the franchisor and

the franchisee, does not exceed three

years, and which begins immediately

after the expiration of a prior franchise

involving the same marketing premises

which was not renewed, based on a

lawful determination by the franchisor

to withdraw from marketing activities in

the geographic area in which the

franchisee operates.

An interim franchise must be in

writing and must make certain

disclosures, including that it is an

interim franchise and that the franchisor

has the right not to renew the franchise

at the end of the term based upon a

lawful determination to withdraw from

marketing activities in the geographic

area in which the franchisee operates.

In exercising his right not to renew a

franchise relationship under an interim

franchise at the end of its term, your

supplier must comply with the notice

requirements described above under the

heading ‘‘Notice Requirements for

Termination or Nonrenewal.’’

V. Your Legal Rights

Under the enforcement provisions of

the Act, you have the right to sue your

supplier if he fails to comply with the

requirements of the Act. The courts are

authorized to grant whatever equitable

relief is necessary to remedy the effects

of your supplier’s failure to comply with

the requirements of the Act, including

declaratory judgment, mandatory or

prohibitive injunctive relief, and interim

equitable relief. Actual damages,

exemplary (punitive) damages under

certain circumstances, and reasonable

attorney and expert witness fees are also

authorized. For a more detailed

description of these legal remedies you

should read the text of the Act. 15

U.S.C. §§ 2801–2806.

VI. Waiver of Rights and Applicable

State Law

Your supplier may not require, as a

condition of entering into or renewing

the franchise relationship, that you

relinquish or waive any right that you

have under this or any other Federal law

or applicable State law. In addition, no

provision in a franchise agreement

would be valid or enforceable if the

provision specifies that the franchise

would be governed by the law of any

State other than the one in which the

principal place of business for the

franchise is located.

Further Discussion of Title I—

Definitions and Legal Remedies

I. Definitions

Section 101 of the Petroleum

Marketing Practices Act sets forth

definitions of the key terms used

throughout the franchise protection

provisions of the Act. The definitions

from the Act which are listed below are

of those terms which are most essential

for purposes of the summary statement.

(You should consult section 101 of the

Act for additional definitions not

included here.)

A. Franchise

A ‘‘franchise’’ is any contract between

a refiner and a distributor, between a

refiner and a retailer, between a

distributor and another distributor, or

between a distributor and a retailer,

under which a refiner or distributor (as

the case may be) authorizes or permits

a retailer or distributor to use, in

connection with the sale, consignment,

or distribution of motor fuel, a

trademark which is owned or controlled

by such refiner or by a refiner which

supplies motor fuel to the distributor

which authorizes or permits such use.

The term ‘‘franchise’’ includes any

contract under which a retailer or

distributor (as the case may be) is

authorized or permitted to occupy

leased marketing premises, which

premises are to be employed in

connection with the sale, consignment,

or distribution of motor fuel under a

trademark which is owned or controlled

by such refiner or by a refiner which

supplies motor fuel to the distributor

which authorizes or permits such

occupancy. The term also includes any

contract pertaining to the supply of

motor fuel which is to be sold,

consigned or distributed under a

trademark owned or controlled by a

refiner, or under a contract which has

existed continuously since May 15,

1973, and pursuant to which, on May

15, 1973, motor fuel was sold,

consigned or distributed under a
32790 Federal Register / Vol. 61, No. 123 / Tuesday, June 25, 1996 / Notices

trademark owned or controlled on such

date by a refiner. The unexpired portion

of a transferred franchise is also

included in the definition of the term.

B. Franchise Relationship

The term ‘‘franchise relationship’’

refers to the respective motor fuel

marketing or distribution obligations

and responsibilities of a franchisor and

a franchisee which result from the

marketing of motor fuel under a

franchise.

C. Franchisee

A ‘‘franchisee’’ is a retailer or

distributor who is authorized or

permitted, under a franchise, to use a

trademark in connection with the sale,

consignment, or distribution of motor

fuel.

D. Franchisor

A ‘‘franchisor’’ is a refiner or

distributor who authorizes or permits,

under a franchise, a retailer or

distributor to use a trademark in

connection with the sale, consignment,

or distribution of motor fuel.

E. Marketing Premises

‘‘Marketing premises’’ are the

premises which, under a franchise, are

to be employed by the franchisee in

connection with the sale, consignment,

or distribution of motor fuel.

F. Leased Marketing Premises

‘‘Leased marketing premises’’ are

marketing premises owned, leased or in

any way controlled by a franchisor and

which the franchisee is authorized or

permitted, under the franchise, to

employ in connection with the sale,

consignment, or distribution of motor

fuel.

G. Fail to Renew and Nonrenewal

The terms ‘‘fail to renew’’ and

‘‘nonrenewal’’ refer to a failure to

reinstate, continue, or extend a

franchise relationship (1) at the

conclusion of the term, or on the

expiration date, stated in the relevant

franchise, (2) at any time, in the case of

the relevant franchise which does not

state a term of duration or an expiration

date, or (3) following a termination (on

or after June 19, 1978) of the relevant

franchise which was entered into prior

to June 19, 1978 and has not been

renewed after such date.

II. Legal Remedies Available to

Franchisee

The following is a more detailed

description of the remedies available to

the franchisee if a franchise is

terminated or not renewed in a way that

fails to comply with the Act.

A. Franchisee’s Right to Sue

A franchisee may bring a civil action

in United States District Court against a

franchisor who does not comply with

the requirements of the Act. The action

must be brought within one year after

the date of termination or nonrenewal or

the date the franchisor fails to comply

with the requirements of the law,

whichever is later.

B. Equitable Relief

Courts are authorized to grant

whatever equitable relief is necessary to

remedy the effects of a violation of the

law’s requirements. Courts are directed

to grant a preliminary injunction if the

franchisee shows that there are

sufficiently serious questions, going to

the merits of the case, to make them a

fair ground for litigation, and if, on

balance, the hardship which the

franchisee would suffer if the

preliminary injunction is not granted

will be greater than the hardship which

the franchisor would suffer if such relief

is granted.

Courts are not required to order

continuation or renewal of the franchise

relationship if the action was brought

after the expiration of the period during

which the franchisee was on notice

concerning the franchisor’s intention to

terminate or not renew the franchise

agreement.

C. Burden of Proof

In an action under the Act, the

franchisee has the burden of proving

that the franchise was terminated or not

renewed. The franchisor has the burden

of proving, as an affirmative defense,

that the termination or nonrenewal was

permitted under the Act and, if

applicable, that the franchisor complied

with certain other requirements relating

to terminations and nonrenewals based

on condemnation or destruction of the

marketing premises.

D. Damages

A franchisee who prevails in an

action under the Act is entitled to actual

damages and reasonable attorney and

expert witness fees. If the action was

based upon conduct of the franchisor

which was in willful disregard of the

Act’s requirements or the franchisee’s

rights under the Act, exemplary

(punitive) damages may be awarded

where appropriate. The court, and not

the jury, will decide whether to award

exemplary damages and, if so, in what

amount.

On the other hand, if the court finds

that the franchisee’s action is frivolous,

it may order the franchisee to pay

reasonable attorney and expert witness

fees.

E. Franchisor’s Defense to Permanent

Injunctive Relief

Courts may not order a continuation

or renewal of a franchise relationship if

the franchisor shows that the basis of

the non-renewal of the franchise

relationship was a determination made

in good faith and in the normal course

of business:

(1) To convert the leased marketing

premises to a use other than the sale or

distribution of motor fuel;

(2) To materially alter, add to, or

replace such premises;

(3) To sell such premises;

(4) To withdraw from marketing

activities in the geographic area in

which such premises are located; or

(5) That the renewal of the franchise

relationship is likely to be

uneconomical to the franchisor despite

any reasonable changes or additions to

the franchise provisions which may be

acceptable to the franchisee.

In making this defense, the franchisor

also must show that he has complied

with the notice provisions of the Act.

This defense to permanent injunctive

relief, however, does not affect the

franchisee’s right to recover actual

damages and reasonable attorney and

expert witness fees if the nonrenewal is

otherwise prohibited under the Act.

Issued in Washington, D.C. on June 12,

1996.

Marc W. Chupka,

Acting Assistant Secretary for Policy.

[FR Doc. 96–16124 Filed 6–24–96; 8:45 am]

BILLING CODE 6450–01–P

Office of Energy Efficiency and

Renewable Energy

Energy Conservation Program for

Consumer Products: Granting of the

Application for Interim Waiver and

Publishing of the Petition for Waiver of

Bard Manufacturing Company From

the DOE Furnace Test Procedure.

(Case No. F–086)

AGENCY: Office of Energy Efficiency and

Renewable Energy, Department of

Energy.

ACTION: Notice.

SUMMARY: Today’s notice grants an

Interim Waiver to Bard Manufacturing

Company (Bard) from the existing

Department of Energy (DOE or

Department) test procedure regarding

blower time delay for the company’s TU

and TDH series furnaces.

Today’s notice also publishes a

‘‘Petition for Waiver’’ from Bard. Bard’s

Petition for Waiver requests DOE to

grant relief from the DOE furnace test

procedure relating to the blower time