The Petroleum Marketing Practices Act (PMPA)
The Petroleum Marketing Practices Act (PMPA) may be found at 15 U.S.C. §2801-2806. The full text of the act as codified follows
this narrative. First, we present the amendments to the PMPA, and then present an overview of each section. You may use the hypertext
in the description to get where you want to go in the PMPA, or leisurely scroll your way on down through the PMPA. Click here for a link to the Department of Energy's notice required for termination pursuant to the PMPA as published in the Federal Register at 61 F.R.32786 on June 25, 1996. This link is to the Federal Register at the website maintained by the United States Government Printing Office. Soon we hope to be
adding links to the premier digest of cases for the PMPA: the Digest of Decisions Under the Petroleum Marketing Practices Act. Thank you for visiting our site.
The 1994 Amendments
The 1994 amendments to the PMPA:
- Re-defined "Failure" by adding §2801(13)(C) which removes from the definition of failure any
"failure" based on any illegal or unenforceable law of any State;
- Added §2802(b)(3)(A) which addresses the issue of converting a leased facility from a dealer-operated facility to a company-operated facility;
- Amended §2802(c)(4) so that a franchisor company must offer to assign to the franchisee any underlying
lease of the facility, allowing certain conditions to be met prior to the assignment;
- Added §2806(a)(2) which prohibits any state from legislating payment of goodwill upon termination or
- Added §2806(b)(2), which clarifies the right of a State to legislate the terms and conditions
under which a franchise may make provision for succession upon death; and,
- Inserted §2805(f)(1) and (2) making it clear that waiver of rights under
PMPA, other federal law or applicable state law is not allowed, and that the only allowed applicable state law is the law of the principal
place of business of the franchise.
The Petroleum Marketing Practices Act 15 USC §2801-2806 (Summary)
Section 2801. This section sets out the definitions of key terms that are used throughout the PMPA.
Section 2802. This section is the meat of the termination and nonrenewal of franchises. §2802(a) essentially prohibits termination of nonrenewal except as provided for in the PMPA.
§2802(b) sets forth in detail the cookbook for proper termination or nonrenewal of a franchise. §2802(c)
is a definition for the "relevant events" as referred to in 2802(b).
Section 2803. Here you will find the provisions relating to trial franchises.
§ 2803(a) removes applicability of §2802 in relation to trial franchises. The definitions for §2803 are in §2803(b). The conditions
for nonrenewal of a trial franchise are set forth in §2803(c).
Section 2804. This section of the PMPA sets out the requirements for the timing, manner and form of the notification of
termination and nonrenewal. §2804(a) sets forth the general requirements of notification. In §2804(b) attention is
given to particular situations that allow for special notification requirments. The form notice and its content are spelled out in §2804(c). The special notice from the Department of Energy is called for in
Section 2805. This section sets forth the procedural matters in the event that an action is commenced to enforce franchise
rights under the PMPA. §2805(a) specifies where and how a franchisee may sue a franchisor. The equitable relief available
through the PMPA is set out in §2805(b). The burden of proof and of going forward are set out in §2805(c).
The damages available under the PMPA are set out in §2805(d). The power of the court to continue a franchise is set out in
Section 2806. This section is about preemption. The prohibition of termination legislation is found in
§2806(a). Transfer, assignment and succession rights are addressed in §2806(b).