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PROVINCE OF BRITISH COLUMBIA FOURTH ANNUAL REPORT OF THE COAL AND PETROLEUM CONTROL BOARD FOR THE YEAR… British Columbia. Legislative Assembly 1943

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Full Text

 PROVINCE OF BRITISH COLUMBIA
FOURTH ANNUAL REPORT
OF THE
COAL AND PETROLEUM
CONTROL BOARD
for the
YEAR ENDED 31ST DECEMBER, 1941
PRINTED by
authority of the legislative assembly.
VICTORIA,   B.C. :
Printed liy Citakles F. Banfield, Printer to the King's Most Excellent Majesty.
1942. To His Honour W. C. Woodward,
Lieutenant-Governor of the Province of British Columbia.
May it please Your Honour :
Sir,—I have the honour to transmit herewith the Report of the Coal and Petroleum
Control Board for the year ended December 31st, 1941.
W. A. CARROTHERS,
Coal and Petroleum Control Board.
Victoria, B.C., 1942. Annual Report of the Coal and Petroleum Control Board
for the Calendar Year ended December 31st, 1941.
On November 28th, 1934, a Royal Commission, known as the Macdonald Commission, was appointed by Order in Council to inquire into coal and petroleum industries in British Columbia, special emphasis being placed on the cost of coal, gasoline,
and fuel-oil to the public.
The report of the Commission relating to the petroleum industry was submitted
on October 21st, 1936, and the report dealing with the coal industry was completed on
September 27th, 1937. These reports were tabled in the Provincial Legislature on
November 19th, 1937.
The final section dealing with " the comparative value of coal and petroleum
products for economic use in British Columbia and whether or not prices charged for
coal and petroleum products was unreasonable " was not completed until December
10th, 1938.
The Provincial Legislature on December 10th, 1937, passed the " Coal and Petroleum Products Control Board Act." This Act set up a Board to control the sale and
distribution of coal and petroleum products in British Columbia. The Act has been
amended twice; the first amendment came on December 9th, 1938, the second on
May 10th, 1940.
Under section 36 of the Act the Coal and Petroleum Control Board was given
power " to make regulations deemed advisable to control and regulate effectively in the
Province the coal and petroleum industries."
Twenty-one regulations have been passed by the Board since its inception.
Following is a brief resume of the consolidated regulations of the Board:—
Regulation 1 (amended by Regulations 3, 8, 12, and 13).—This regulation establishes a system of licensing for all phases of the coal and petroleum industries, and sets
the licence fee at $1, to be renewed annually.
Regulation 2 (amended by Regulation 4).—This regulation requires all applicants
for a licence to make statutory declarations confirming the accuracy of their statements.
Regulation 5.—Regulation 5 requires for firms or individuals engaged in the
petroleum industry, both wholesale or retail, to submit confidential monthly gallonage
returns.
Regulation 6.—This regulation requires the coal industry to submit reports similar
to those of Regulation 5.
Regidation 11 (amended by Regulations 14 to 20 and replacing Regulation 10).—
This regulation established rigid standards for the two types of gasoline used by
motor-vehicles and also set up fifteen price zones within the Province.
Two grades of gasoline were established for automobile engines—namely, " Regular " and " Premium." The sale of any other types of gasoline for motor-vehicles that
do not fall into either of the above categories was forbidden, and all retailers of gasoline had to have marked clearly on their pumps the grade of gasoline being sold.
Price zones set up by this regulation established both wholesale and retail prices in
all outlets within that zone, but certain exceptions were made where unusual delivery
charges were unavoidable. This regulation also provided that all existing agreements
covering the sales of gasoline must conform to the prices in the above-mentioned price
zones and forbade any unethical practices on the part of the retailer or wholesaler,
such as games of chance, offers of free oil or other commodities in order to promote
sales of gasoline.
Regulation 20.—This regulation is a rider to Regulation 11, respecting any special
Dominion tax to be added to prices laid down in Regulation 11.
Regulation 21.—This regulation was passed by the Board in accordance with its
policy of co-operation with the Dominion Oil Controller and covers the grading and
price of gasoline and is supplementary to Regulation 11. Q 4
BRITISH COLUMBIA.
The following paragraphs cover in brief the price-fixing orders of the Board and
Court actions arising from these orders and the final settlement.
The first price-fixing order of the Board, known as Regulation 7, was made on
October 22nd, 1938, and was to become effective October 26th, 1938. This order made
a decrease in the price of the gasoline in the Province, varying from 3 to 9 cents.
This order, which was considered very drastic by the petroleum industry, was not so
severe as the price reduction recommended by the Macdonald Commission.
This price order was opposed by the nine oil companies, and they were successful
in obtaining a temporary injunction restraining the order of the Board. Following
hearings in the Supreme Court of British Columbia the injunction was extended until
such time as the decision had been heard by the Court of Appeal of the Province, to
which Court the Government had carried its case. The Court of Appeal on November 29th, 1938, dismissed the hearings on the injunction.
On December 23rd, 1938, the British Columbia Government entered a plea to the
Supreme Court that the " Coal and Petroleum Products Control Board Act " was within
the powers of the Province. Hearings commenced on January 9th, 1939. The Act
was declared intra vires, with the exception of those portions of the Act that dealt
with price-fixing.    The Province then took steps to appeal the decision.
On June 9th, 1939, the British Columbia Court of Appeal declared the Act as a
whole intra vires. As a result of this decision the Coal and Petroleum Control Board
passed Regulation 10, establishing prices and grades, and requiring grade posting.
This regulation called for a 3-cent reduction in the wholesale price of gasoline throughout the Province, with variations to meet special conditions at various points. The
division of the Province into price zones in this regulation is similar to that of Regulation 7, with the exception of the Queen Charlotte Islands, which were transferred
from Zone 3 to Zone 15. However, on an order of the Chief Justice of British Columbia
the Board was restrained from enforcing its order, pending an appeal by the nine
major oil companies to the Supreme Court of Canada. On April 23rd this Court
declared the Act intra vires and Regulation 10 became effective immediately.
Following this the petroleum industry froze all deliveries of gasoline, save for
essential services, for seven days. At the end of this " strike " an agreement was
reached between the Government and the industry; Regulation 10 was rescinded and
Regulation 11, the present price regulation of the Board, was approved May 14th, 1940.
Regulation 11 brought a 2-cent price reduction in gasoline for the Victoria and Vancouver areas and larger reductions in other parts of the Province, varying from 3 to
8 cents per gallon.
The following is a table of the comparative tank-wagon prices of Grade II. gasoline in British Columbia and larger centres in other parts of the Dominion:—
City.
Gasoline
(Tank-
wagon ).
Gasoline
Taxes.
Total Price.
Dominion.
Provincial.
Cents.
17.5
17.5
21.0
20.5
18.0
20.8
18.9
16.0
15.0
17.0
16.5
16.5
Cents.
3
3
3
3
3
3
3
3
3
3
3
3
Cents.
8
8
7
7
7
7
7
7
7
8
10
10
Cents.
28.5
28.5
31.0
30.5
28.0
30.8
28.9
26.0
25.0
28.0
St. John, N.B.
29.5
Halifax, N.S.                                                      	
29.5
It is to be noted the price of gasoline is lower in British Columbia than in any other
part of Canada. This is to be definitely attributed to the existence of the price structure in this Province set up under the Board. REPORT OF COAL AND PETROLEUM CONTROL BOARD, 1941.     Q 5
The administration of the " Coal and Petroleum Products Control Board Act"
has had a stabilizing influence on the gasoline industry in this Province. The policy
of having a fixed price rather than a maximum price eliminated price-cutting, which
was continuously detrimental to the industry in certain parts of the Province, but
particularly in Vancouver. Restricting the number of licences led to increased volume
of sales per outlet. Prior to the advent of gasoline rationing, the position of the
service-station operator was improving even though he was operating at a lower margin
per gallon than previously. Even under present conditions, the regulations of the
Board are beneficial to the industry, and operators are anxious that protection given
should be continued.
During the calendar year of 1941 the reduction of the price of gasoline under
Regulation 11 has saved the motoring public approximately $1,113,000. Since there
were 104,241 passenger vehicles operating in the Province in 1941, this amounted to
an approximate saving of $10.67 per motorist.
Retail Sales of Gasoline to Motorists for the Period
January 1st to December 31st, 1941.
Gallons.
Vancouver and District  25,420,033
Approximate saving at 2 cents per gallon   $508,400.66
Victoria  6,363,091
Approximate saving at 2 cents per gallon   127,261.82
Balance of Province   15,916,888
Approximate saving at 3 cents per gallon   477,506.44
Total approximate saving  $1,113,168.92
LICENCES.
The number of licences issued by the Board under Regulation 1, and in force on
January 1st, 1941, totalled 3,481. Of these, some 572 were in the coal industry.
During the year thirty-eight new licences were granted by the Board, covering both
the petroleum and coal industries. Offsetting this increase various licences were
cancelled, due to operators discontinuing the sale of either coal or petroleum products,
leaving in force at December 31st, 1941, some 3,461 licences.
Summary of Licences, December 31st, 1941.
Petroleum Industry—
Petroleum refiner .,         8
Petroleum wholesaler _..      355
Petroleum retailer   2,530
         2,893
Coal Industry—
Mine operator        22
Wholesale coal-dealer        77
Retail coal-dealer       469
  568
Total          3,461 Q 6                                                         BRITISH COLUMBIA.
The following table gives a breakdown of petroleum licences issued by the Board
during 1941 to the various oil companies and individuals, in respect of bulk plants,
barrel agencies, or distributing points; and licences restricted to the sale of fuel and
lubricating Oils.                                                                                                                       Wholesale.              Retail.
Tmnerial Oil                85                  85
Standard Oil           26
50
Shell Oil                        46
56
Union Oil .                                   56
56
Home Oil     36
B.A. Oil                                                                                    17
42
16
B.C. Fuel                                                                        ....      3
2
Hi-Way Oil                     0
0
Mainland Distributors                                  ...      1
0
Signal Oil                         4
4
McColl-Frontenac                                            3
3
Total company licences  277 314
Others      38 2,056
Restricted fuel-oil, lubricants, or naphtha gasoline....    40 160
Total licences
355
2,530
Licensed gasoline outlets serving the general public are:—
Garages and service-stations   1,467
Pumps (no service)  . .  459
Marine outlets __. .-.  130
Total   2,056
Note.—In addition to these 2,056 licences, the 314 retail licences issued to the
various oil company distribution plants supply gasoline to commercial accounts.
In granting new licences under section 6 of the " Coal and Petroleum Products
Control Board Act," careful consideration has been given to public necessity. Apart
from this, all new licences granted, through which the sale of gasoline to motor-
vehicles would be made, or where the installation of new equipment was applied for,
have also the approval of the Dominion Oil Controller, his orders governing both the
commencement of new outlets in the petroleum industry and the installation of pumps
and dispensing equipment.
Special licences granted under section 6 during 1941 are as follows:—
Petroleum Retailer's Licence, 14.—Of these, 13 are operating;  1 is still waiting
delivery of tanks before commencing.    These retail licences are as classified below and
at the following points in the Province:—
Restricted retail marine, 6:   Goose Bay, Nelson, Ladysmith, Sonora Island,
Skeena River, and Maple Bay.
Retail restricted to fuel-oil only, 1:   Chemainus, V.I.
Retail barrel agency, 1:   Abbotsford.
Service outlets, 6:  Revelstoke, Castlegar, Sheep Creek, Horsefly, Pinchi Lake,
and Clayhurst.
Petroleum Wholesaler's Licence, 4-—Goose Bay  (marine outlet), 1;   Abbotsford,
Duncan (barrel plants), 2;  Chemainus (fuel-oils), 1.
Special licences granted under section 6 to new operators taking over existing
businesses in the petroleum industry:—
Petroleum retailers   290
Petroleum wholesalers        7 REPORT OP COAL AND PETROLEUM CONTROL BOARD, 1941.     Q 7
Special licences granted in the coal industry to persons newly commencing in the
industry:—
Retail coal-dealers  16
Wholesale coal-dealers     2
Mine operators      2
Total   20
New operators taking over existing businesses in the coal industry:—
Retail coal-dealers      5
Wholesale coal-dealers     1
Total :     6
The Board had for consideration during 1941 fifty-eight applications for licences
from persons wishing to commence new businesses in either the coal or petroleum
industries. These were dealt with in co-operation with both the Dominion Oil Controller and the Dominion Coal Administrator, resulting in fourteen licences being
refused by the Board.
Twenty-six retail outlets selling gasoline closed down during the year, while ten
surrendered their licences. The others closed mainly due to lack of business. The following types of outlets were closed: Four garages, six service-stations, sixteen pumps
(located at stores or connected with businesses not catering exclusively to the automobile trade).
During the year there has been no change in the number of oil companies operating
in the Province. The Signal Oil Company was purchased by the Standard Oil Company of B.C. and licences held by them were taken over with the approval of the
Board. The Imperial Oil, Limited; Shell Oil Company of B.C.; Union Oil Company
of Canada, Limited; and the Standard Oil Company of B.C. extend their operations
over the greater part of the Province. The Home Oil Distributors, Limited, and the
B.C. Fuel Company, Limited, have more or less extensive distributing facilities, but do
not cover the entire Province, the B.C. Fuel Company, Limited, confining its distribution to the lower mainland and Vancouver Island.
The British American Oil Company, Limited, and the/McColl-Frontenac Oil Company, Limited, distribute their products mainly in the eastern and southern part of the
Province.
In addition to its regular work the Board has co-operated with the Dominion Oil
Controller and the Dominion Coal Administrator, and acts especially in an advisory
capacity to the latter.
GASOLINE SALES IN BRITISH COLUMBIA.
In 1941 the sales of gasoline in the Province of British Columbia increased
5,784,000 gallons over 1940, making a total of 70,995,000 gallons. Of this amount
approximately 63,249,283 gallons came from the refineries of- British Columbia. This
gasoline consisted of approximately 50,178,797 gallons which were refined from crude
oil and 13,070,486 gallons of imported blending gasoline. The gasoline imports from
the Province of Alberta amounted to 7,189,697 gallons, which was an increase of
2,552,892 gallons over 1940. There was a marked decrease in refined gasoline imported
from United States and Alaska. The total number of gallons so imported dropped
from 2,672,719 gallons in 1940 to 556,020 gallons in 1941. Q 8
BRITISH
COLUMBIA.
The following table shows the
years in gallons (000 omitted) :—
monthly consumpt
on of gasoline for
the past ten
1932.
1933.
1934.
1936.
1936.
1937.
1938.
1939.
1940.
1941.
January   	
2,513
2,369
2,911
3,371
3,477
3,757
4,117
4,266
3,806
3,386
2,813
2,673
2,259
2,051
2,521
2,948
3,408
3,707
4,368
4,246
3,854
3,469
3,096
2,780
2,585
2,487
2,842
3,152
3,749
4,036
4,435
4,593
4,305
4,053
3,233
2,868
2,411
2,664
2,819
3,471
3,868
3,075
4,805
4,954
4,417
4,215
3,744
2,967
3,087
2,628
3,042
3,569
4,084
4,674
5,252
5,343
4,854
4,498
3,976
3,816
2,864
2,770
3,634
4,043
4,902
5,301
6,997
6,157
6,619
5,008
4,484
3,996
3,481
3,313
3,885
4,383
5,037
5,379
5,824
6,308
5,571
4,866
4,822
4,266
3,748
3,522
3,950
4,425
5,412
5,541
6,073
6,571
5,718
5,393
4,917
4,554
4,224
4,177
4,449
4,845
5,680
5,979
6,728
6,944
6,065
5,973
5,287
4,860
4,605
4,574
5,051
6,050
May   	
6,030
6,359
July  - 	
7,654
7,160
September  	
6,469
5,980
5,670
December 	
Totals	
5,393
39,458
38,707
42,338
43,410
48,723
54,775
57,135
59,824
65,211
70,995
Source:   Taxation Department, Province of British Columbia.
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Q 9
The following table gives a breakdown of gasoline sold by the various bulk plants
throughout the Province. These sales vary slightly from those in the previous table
supplied by the Taxation Department.
Retail "outlets took 47,700,011 gallons out of a total of 69,778,737 gallons. The
remainder was divided between marine sales, which were 5,179,142 gallons, and sales
direct to consumers, which were 16,899,584 gallons. The latter consumers consisted
of commercial, industrial, and farmers' accounts. For the key to the various zones
see the map at the end of this Report.
To Resellers.
To Consumers.
Marine.
Total.
Gallons.
6,363,091
26,420,032
15,916,888
Gallons.
2,053,042
6,029,973
8,816,569
Gallons.
189,837
1.488,857
3,500,448
Gallons.
8,605,970
32,938,862
28,233,905
Totals for Province    	
47,700,011
16,899,584
5,179,142
69,778,737
2,435,712
1,798,771
958,225
1,118,644
97,780
202,427
1,399,638
3,001,994
1,924,873
104,472
174,183
909,504
258,507
1,532,158
1,626,194
1,911,655
531,522
535,067
42,396
27,636
501,432
1,275,774
639,951
91,302
167,700
253,834
85,435
1,126,671
234,776
2,935,548
58,810
69,043
4,699
489
13,649
9,090
16,386
90
188
1,674
1,887
154,119
4,296,682
6,645,974
1,548,557
1,722,754
Zone 6                      	
144,875
Zone 7  — 	
230,552
ZoneS       --.     	
1,914,719
Zone 9     	
4,286,858
Zone 10                  	
2,581,210
Zone 11   ._. 	
Zone 12         	
,   195,864
342,071
Zone 13 '     —	
1,165,012
Zone 14       ____     .
345,829
Zone 15          ...	
2,812,948 Q 10
BRITISH COLUMBIA.
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tf REPORT OF COAL AND PETROLEUM CONTROL BOARD, 1941.
Q 11
Gasoline Imports from Alberta, 1941.
British-America Oil Co.   1,679,951
Home Oil  480,965
Imperial Oil   4,310,473
McColl-Frontenac   488,594
Union Oil  227,244
Miscellaneous  2,470
Total   7,189,697
COAL INDUSTRIES.
The number of licences issued in the coal industry during 1941 was 568, as compared with 572 in 1940. Under the regulations of the Board, all dealers are required
to make monthly returns to the Board; from these a consolidation of the retail sales
in the Province is made, a copy of which is forwarded to the Coal Administrator at
Ottawa.
The following table shows the amount of coal sold at retail in the various districts
of the Province during the year ended December 31st, 1941.
(Short Tons.)
Districts.
British
Columbia.
Coals.
Alberta
Coals.
U.S.A.
Coals.
Unknown
Origin.
Unrecorded
Sales.
Totals.
410,246%
45,8721/.
86,298!/"
310
7,899
26,7081/2
4,999
562,0101/.
36,569
3.8511/j
1,930
12,5831/2
752
8,499%
29,8911/2
693%
1,408%
2,759%
4,702%
■ 25,94314
72
6,124
7,056%
10,225%
22
59%
■
3,263
1.681
6,095
202
222
39
359i_
4,024
223
83iy2
221
2,630
414,283%
110%
773
56,163%
123,117%
1,205%
22
3i,_
18
305
9,551%
21 V_
29,532%
10,078%
592,283
38,864
'   17%
10,8241/.
9,207%
21%
25,461
Totals _-___ _   	
1,199,278%
98,129%
905
4691/2
19,791
1,318,5731/; Q 12 BRITISH COLUMBIA.
APPENDIX.
REGULATION 11.
(Approved May 14th, 1940; and as amended June 14th, 1940; July 3rd, 1940; July
10th, 1940; July 16th, 1940; August 2nd, 1940; August 9th, 1940; and March
4th, 1941.)
Establishing Gasoline Prices and Grades and requiring Grade Posting.
1. In this regulation, " automobile " includes any motor-vehicle used or operated
on any highway, and " motor-vehicle " and " highway " shall have the meaning given
thereto by the " Motor-vehicle Act."
2. There is hereby established within the Province two grades of gasoline for
use in automobile-engines, namely, " Premium " and " Regular," in accordance with the
standards set out in Schedule A attached hereto. No person shall, within the Province,
sell or offer for sale for use in an automobile-engine any gasoline that is not either
" Premium " or " Regular."
3. The Province is hereby divided into fifteen price zones, numbered 1 to 15,
inclusive, and the area contained in each zone is the area described opposite the
distinctive number of such zone in Schedule B attached hereto.
4. (1.) No person shall sell or offer for sale "Regular" gasoline to any retailer
except at a price per imperial gallon, inclusive of all taxes and of delivery, service, and
other charges, of:—
22c. in Zone 1 and at Muir Creek and Jordan River.
21c. in Zone 2.
23c. in Zone 3.
22c. in Zone 4.
23c. in Zone 5.
24c. in Zone 6, and at Skidegate, Masset, and Arrandale.
25c. in Zone 7 and at Stewart.
26c. in Zone 8.
27c. in Zone 9.
28c. in Zone 10 and at Terrace, 100-Mile House, Smithers, and Hazelton.
29c. in Zone 11 and at Williams Lake, Prince George, Vanderhoof,  Fraser
Lake, Burns Lake, Dawson Creek, and Pouce Coupe.
27c. in Zone 12.
26c. in Zone 13.
25c. in Zone 14.
26%c. at Bridge River, Shalalth, Pemberton, Lillooet, and Clinton.
291/2C at Quesnel.
32c. at Fort St. James and Stuart Lake.
(2.) No person shall sell or offer for sale " Regular " gasoline at any place within
Zone 15, not mentioned in subsection (1) of this section, to any retailer except at the
price per imperial gallon, inclusive of all taxes and of delivery, service, and other
charges, as fixed by subsection (1) of this section at the place where the wholesale
outlet supplying such retailer is situated, plus the cost of delivery from that wholesale
outlet to that retailer.
5. No person shall sell or offer for sale " Premium " gasoline to any retailer, in any
zone or at any place in the Province, except at a price two cents in excess of the price
per imperial gallon, inclusive of all taxes and of delivery, service, and other charges,
fixed under the provisions of section 4 of this regulation for " Regular " gasoline sold
in such zone or at such place to any retailer.
6. No person shall sell or offer for sale to any person other than a retailer any
" Regular " or " Premium " gasoline, in any zone or at any place in the Province, REPORT OF COAL AND PETROLEUM CONTROL BOARD, 1941.    Q 13
except at the price fixed under the provisions of sections 4 and 5 of this regulation
in respect of such grade and of such zone or place, plus a charge for retailing of—
4c. per imperial gallon in Zones 1 to 5, inclusive:
5c. per imperial gallon in Zones 6 to 15, inclusive.
7. Notwithstanding the provisions of sections 4, 5, and 6, the prices fixed thereunder may, on account of unusual delivery costs, be increased by the following amounts
per imperial gallon at the following places:—
X/_\C. at Tappen, Monte Lake, Pritchard, Lower Nicola, and Nicola.
lc. at Notch Hill, Cherry Creek, Sorrento, Bella Coola, Chase, Squilax, Solsqua,
Westwold, Malakwa, Quilchena, Hedley, and Spences Bridge,
l^c. at Walhachin, Deer Park, and Blind Bay.
2c. at Savona, Marble Canyon, Hat Creek, Dot, and Aspen Grove.
3c. at Vermilion Crossing, Celista, and Magna Bay.
8. Sections 4, 5, and 6 shall not apply to the sale of gasoline by licensed wholesalers to commercial users. For the purpose of this section, a commercial user means
a licensed wholesaler or a person other than a retailer who takes delivery in storage
facilities on his own premises or in drums, and in amounts of not less than forty gallons
at one time.
9. Wherever special provision is made that all or any part of any tax of the
Dominion or the Province otherwise required to be paid upon gasoline shall not be
collected, the prices specified in this regulation shall be reduced by the amount of the
tax not required to be collected.
10. No person in any zone shall sell or offer for sale, for use in any automobile-
engine, gasoline in any drum or other container unless such drum or container has
marked or labelled thereon, in letters and figures easily legible, the number of imperial
gallons and the grade of the gasoline contained therein.
11. No person in any zone shall put into, deliver to, or have in any tank or
container, except in a tank-wagon, any gasoline for the purpose of selling or offering
the same for sale to the consumer for use in any automobile-engine, unless such tank
or container, or the pump connected therewith, has posted or painted thereon, in letters
easily legible, the grade of the gasoline put into, delivered to, or had in such tank or
container.
12. No person in any zone shall sell or offer for sale gasoline to a consumer for
use in any automobile-engine unless there is posted or painted on the pump, tank, or
container from which the gasoline is so dispensed, in letters easily legible, the grade of
gasoline contained in such pump, tank, or container.
13. Wherever it is required in this regulation that the grade of gasoline shall be
marked, labelled, painted, or posted, the grade shall be in conformity with the standards
set forth in Schedule A, attached hereto, and shall be known by the names prescribed
therein.
14. Any existing covenant or agreement for the purchase or sale within the
Province of gasoline for use in the Province shall be varied so that the price shall
conform to the price fixed by this regulation.
15 (1.) No licensee shall conduct any lottery or game of chance for the purpose
of promoting the sale of gasoline.
(2.) No licensee shall give without charge to any person and no person shall accept
from any licensee any premiums, trading-stamps, coupon-books, oil, or other commodities or things of value, nor shall any licensee sell to any person any coupon-books
or any oil or other commodities or things of value at a price below the recognized fair
market price, applicable to the method of delivery, of such oil or other commodities or
things of value, where the giving without charge or selling at a reduced price is contingent upon or designed to promote the sale of gasoline.
(3.) Nothing in this section shall be deemed to prevent any licensee from furnishing water for radiators or air for tires free of charge, or from performing the service
of wiping off windshields or windows, dusting off hoods, or draining crank-cases of
automobiles free of charge.
16. This regulation shall not apply to the sale of gasoline for use in marine engines. Q 14 BRITISH COLUMBIA.
17. The schedules herein referred to shall be deemed to be part of this regulation,
and where mining divisions are referred to in Schedule B the same shall be the mining
divisions as described in The British Columbia Gazette on October 19th, 1936, and
May 6th, 1937.
18. Regulation 10 of the Coal and Petroleum Control Board is rescinded.
19. This regulation shall come into operation immediately upon its approval by the
Lieutenant-Governor in Council.
SCHEDULE A.
Specifications for Gasoline.
1. All gasolines known as "Premium" or "Regular" shall meet the following tests:—
(a.)  Appearance.—The  gasoline  shall be clear, i.e., free from undissolved water and
suspended matter.
(6.) Sulphur.—The total sulphur content shall not exceed 0.25 per cent, by weight. The
test shall be conducted in accordance with A.S.T.M. Procedure D-90.
(c.) Corrosion.—The fuel shall pass the test for corrosion in accordance with A.S.T.M.
Procedure D-130.
(d.) Freezing-point (from October to March, inclusive).—The freezing-point of the fuel
as indicated by the initial formation of solid matter shall not be higher than minus 36.6° C.
(minus 30° F.). The test shall be made by cooling the sample in a test-tube equipped with
a suitable thermometer and stirrer, and 'jacketed by a second test-tube, the whole being
immersed in a carbon dioxide ether mixture.
(e.) Vapour-pressure.—The vapour-pressure of the fuel shall not exceed 10 lb. per square
inch from April to September, inclusive, and 13 lb. per square inch from October to March,
inclusive. The test shall be conducted in accordance with A.S.T.M. Procedure D-323, except
that a vapour-pressure 1 lb. greater shall be permitted at the refinery or at delivery from
railway tank-car.
(/.) Gum.—The increase in weight in the test according to A.S.T.M. Procedure D-381
shall be limited to 15 mg. per 100 cc. Any increase in weight shall be considered as gum.
In the case of gasolines stated to contain top-cylinder lubricant, allowance may be made for
any increase in weight due to the presence of such lubricant, at the discretion of the Board.
2. Gasoline known as " Premium " gasoline shall meet, in addition to the requirements of
section 1 hereof, the following requirements as to distillation range:—
Not less than 10 per cent, shall be recovered at 155° F.;
Not less than 50 per cent, shall be recovered at 265° F.;
Not less than 90 per cent, shall be recovered at 380° F.;
and shall have an octane number not less than 78.
3. Gasoline known as " Regular " gasoline shall have, in addition to the requirements of
section 1 hereof, the same distillation range as " Premium " gasoline and shall have an octane
number of not less than 68.
4. (1.) Subject to the provisions of subsection (3) hereof, the method of procedure to
be used in making the above distillation tests for all grades is that described in A.S.T.M. D-86.
(2.) Subject to the provisions of subsection (3) hereof, the octane number in all cases is
to be determined by the CFR motor method in accordance with A.S.T.M. Procedure D-357.
(3.) All the tests shall be as set forth in the foregoing or by such methods as may, from
time to time, be prescribed by the National Research Council of Canada, unless otherwise
prescribed by the Board.
5. (1.) Gasoline meeting the requirements of sections 1 and 2 of this schedule shall be
known as " Premium " gasoline.
(2.) Gasoline meeting the requirements of sections 1 and 3, but .not section 2, of this
schedule shall be known as " Regular " gasoline.
SCHEDULE B.
Gasoline Price Zones.
Zone 1.—Nanaimo Mining Division south of an east-and-west line through the mouth of
Chef Creek, running into Deep Bay, and south of Lasqueti Island; that portion of Victoria REPORT OF COAL AND PETROLEUM CONTROL BOARD, 1941.    Q 15
Mining Division east of the westerly boundary of the Esquimalt and Nanaimo Railway Company's Land Grant and of a line drawn due south from the south-west corner of said land
grant.
Zone 2.—That portion of Vancouver Mining Division south of the northerly boundaries
of the District Municipalities of North Vancouver and West Vancouver and east of the middle
line of Queen Charlotte Channel of Howe Sound and its production south-westerly; that
portion of New Westminster Mining Division west of and including the District Municipality
of Langley and west of a line running due north from the northerly boundary of said municipality through the easterly end of McMillan Island, south of the northerly boundary of the
District Municipality of Maple Ridge, the southerly shore-line of Pitt Lake, and the northerly
boundary of the District Municipality of Coquitlam, together with the area west of the
easterly boundary of the watershed of Indian Arm south of an east-and-west line through
the north-east corner of the District Municipality of North Vancouver.
Zone 3.—Victoria and Nanaimo Mining Divisions, except those portions in Zone 1; Vancouver Mining Division, except that portion in Zone 2; Skeena Mining Division, except that
portion within the Skeena River watershed above and including the drainage-basins of Zyma-
gotitz River on the north and Lakelse River on the south;, together with Alberni, Clayoquot,
Quatsino, and Bella Coola Mining Divisions.
Zone U.—That portion of New Westminster Mining Division lying to the west of the
easterly boundary of the District Municipality of Sumas, the westerly and north-westerly
boundaries of the District Municipality of Chilliwhack, the southerly production of and the
middle line of Harrison River, the westerly boundary of the watershed of Chehalis River,
south of the easterly production of and the northerly boundaries of the District Municipalities of Mission and Maple Ridge, and east of the area described in Zone 2.
Zone 5.—That portion of New Westminster Mining Division, excepting areas described
in Zones 2 and 4, and also excepting the drainage-basin of the Fraser River on the south side,
above and including Wahleach Creek.
Zone 6.—That portion of New Westminster Mining Division within the drainage-basin
of the Fraser River on the south side, above and including Wahleach Creek; Yale Mining
Division, except that portion east of the Fraser River, north of an east-and-west line through
the mouth of Anderson Creek.
Zone 7.—That portion of Yale Mining Division east of the Fraser River, north of an
east-and-west line through the mouth of Anderson Creek; that portion of Ashcroft Mining
Division east of the Fraser River and south of an east-and-west line through the mouth of
Sakum Creek and south of Nicola River.
Zone 8.—Nicola and Similkameen Mining Divisions; Ashcroft Mining Division, except
that portion described in Zone 7; that portion of Kamloops Mining Division south of the 51st
parallel of latitude and west of the 120th meridian of longitude.
Zone 9.—Osoyoos, Vernon, Lardeau, and Windermere Mining Divisions: That portion of
Kamloops Mining Division south of the 51st parallel of latitude and east of the 120th meridian
of longitude; that portion of Revelstoke Mining Division within the drainage-basin of Eagle
River and the drainage-basin of Columbia River below the mouth of Martha Creek; that
portion of Golden Mining Division within the drainage-basin of the Columbia River above the
mouth of Blaeberry River.
Zone 10.—Greenwood, Grand Forks, Trail Creek, and Slocan City Mining Divisions;
Nelson Mining Division, excepting that part east of Kootenay Lake and Kootenay River flowing
thereinto, south of the watershed of Sanca Creek; that part of Ainsworth Mining Division
east of Kootenay Lake, south of an east-and-west line through the mouth of Hendryx Creek.
Zone 11.—Arrow Lake and Slocan Mining Divisions; Ainsworth Mining Division, excepting that part east of Kootenay Lake, south of an east-and-west line through the mouth of
Hendryx Creek.
Zone 12.—That portion of Nelson Mining Division east of Kootenay Lake and Kootenay
River flowing thereinto, south of the watershed of Sanca Creek.
Zone 13.—That portion of Fort Steele Mining Division lying to the west and north of
the westerly boundary of the watershed of Gold Creek, an east-and-west line through the
south-east corner of Lot 2374, Kootenay Land District, and the westerly boundary of the
watershed of Elk River. ■
Zone 14.—That portion of Fort Steele Mining Division lying to the east and south of the
westerly boundary of the watershed of Gold Creek, an east-and-west line through the southeast corner of Lot 2374, Kootenay Land District, and the westerly boundary of the watershed
of Elk River.
Zone 15.—All that portion of the Province not hereinbefore described. Q 16 BRITISH COLUMBIA.
REGULATIONS SUPPLEMENTARY TO REGULATION 11.
Regulation 20.
(Approved May 1st, 1941.)
(Respecting Dominion Tax on Gasoline.)
1. Notwithstanding anything to the contrary in Regulation 11 of the Coal and
Petroleum Control Board, the prices for gasoline therein prescribed shall not include
any special tax on gasoline imposed or to be imposed by the Parliament of Canada
during 1941 or thereafter, and, where such tax is payable, the amount thereof per
gallon shall be added to the prices prescribed in said Regulation 11.
2. This regulation shall come into operation on the 30th day of April, 1941.
Regulation 21.
(Approved November 19th, 1941.)
Whereas powers of regulation of grades and prices of gasoline have been given
to the Oil Controller under the laws of the Dominion of Canada, and it is desirable
that the regulations heretofore made under the provisions of the " Coal and Petroleum
Products Control Board Act " be revised in order to eliminate any conflict with the
policy and orders of the Oil Controller:
And whereas the Oil Controller, by order numbered 008A and dated September
26th, 1941, has prescribed grades of gasoline, referred to in the Order as " Grade I."
and " Grade II.":
The Coal and Petroleum Control Board hereby makes the following regulation:—
Regulation 21.
(Respecting Prices and Grades of Gasoline.)
1. During such time as the grades of gasoline established by the Oil Controller
by his order numbered 008a and dated September 26th, 1941, are in effect, or until
further order of the Coal and Petroleum Control Board, Regulation 11 of the said
Board, as amended and supplemented by Regulations 14 to 20, inclusive, shall be
subject to the following special provisions:—
(a.)  Sections 2 and 13 and Schedule A are suspended:
(b.) The grades of gasoline referred to as " Premium " and " Regular " shall
be the grades of motor-fuel established by the Oil Controller as " Grade
I." and " Grade II." respectively in his order numbered 008a:
(c.) Each of the prices set out in subsection (1) of section 4 may be increased
lc. per imperial gallon.
2. This regulation shall come into operation immediately on its approval by the
Lieutenant-Governor in Council.
victoria, B.C. :
Printed by Ciiahi.es F. Banfield, Printer to the King's Most Excellent Majesty.
1942.
475-942-9279 138 137 136
59

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