Farmland Industries, Inc. - Page 22




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             was forced to limit its allocation of gasoline and other                 
             petroleum distillates to its member associations.                        
             Allocations for farm use remained at or near 100 percent,                
             but little or no fuel was allocated for nonfarm uses.                    
             Petitioner’s officers and the managers of petitioner’s                   
             member associations then began lobbying the Federal                      
             Government for relief.  Through a combination of efforts,                
             including Government allocations and recertification of the              
             Coffeyville refinery to allow for increased allocations,                 
             petitioner was able to adequately supply fuel for its                    
             members’ agricultural needs.  Petitioner’s annual report                 
             for 1979 states that petitioner had begun searching for                  
             alternative sources of supply, and had increased its oil                 
             exploration and production activities.                                   
                  The oil shortage abated during the early 1980's and                 
             demand for petroleum products decreased.  Petitioner’s                   
             Scottsbluff and Phillipsburg refineries were closed in 1982              
             when the capacity of its remaining refineries was deemed                 
             adequate to meet its members’ needs.  However, the                       
             Phillipsburg refinery was reopened in 1984.  The McPherson               
             and Coffeyville refineries have remained in continuous                   
             operation during the time petitioner has held interests in               
             them.                                                                    








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