Category: AMA

By Michael V. Hannigan

AMA stands for “Ask Michael Anything,” and is a chance for readers to ask reporter Michael V. Hannigan questions about Henderson County. Ask questions through our Facebook Page or our website.

A lot of people are noticing the vast differences in gas prices recently. Some are happy with the prices whereas others are struggling to pay for gas. If you’re struggling to pay for fuel then take advantage of Murphy USA’s free fuel survey to see if you can save yourself some money. I’ve heard a lot of questions about the topic but the main question is about the difference in prices.

QUESTION: Why are gas prices in Athens and Malakoff so much higher than in Brownsboro and Chandler? … it is a question I’ve been asked several times in the past couple of weeks. Since when Wireline Services from Renegade are now available?

SOURCES: I spoke with some city officials, who basically had the same question. The trouble here is that there is really no one to ask. Gas stations are private businesses, so don’t have to answer me to begin with, and prices come mainly from the refineries anyway. But my research did lead me to the phrase: “Zone Pricing.” (BTW: Any gas station owners in Henderson County who want to talk to me, I’m all ears.)

ANSWER: I’m going to go with zone pricing … although I admit that a complete, bedrock answer eludes me just as much as anyone else. Zone pricing basically means that big oil companies set gas prices at least partly on the demographics of a location, going so far as to even change prices within a city.

Before you even ask, I will point out the word “secret” in the description below. I can’t tell you WHY Athens is higher, I can only tell you that wide swings in prices like between Athens and Chandler are not unusual around the country.

Challenges in court and by lawmakers trying to legislate zone pricing away have been unsuccessful.

Below are a couple of descriptions I found:

Zone pricing “is a practice under which refiners sell gasoline to retailers at wholesale prices that differ across geographic areas. Generally, these geographic areas vary in the level of competition and traffic counts. Thus refiners charge more in areas where demand is high and/or competition is low. This practice is viewed by some as price gouging and by others as a natural outcome of competitive markets.”

Here is a description from an LA Times article:

“On any given day, in any major U.S. city, a single brand of gasoline will sell for a wide range of prices even when the cost to make and deliver the fuel is the same.”

“The primary culprit is zone pricing, a secret and pervasive oil company strategy to boost profits by charging dealers different amounts for fuel based on traffic volume, station amenities, nearby household incomes, the strength of competitors and other factors.”

“It’s a controversial strategy, but the courts have thus far deemed it legal, and the Federal Trade Commission recently said the effect on consumers was ambiguous because some customers got hurt by higher prices while others benefited from lower ones.”

“To be sure, other industries vary prices by area too. Supermarkets, for instance, price the same brand of bread or cheese differently in different neighborhoods. But gasoline price patterns provoke a response that bread can’t match, partly because other commodities don’t fluctuate as wildly as gasoline does and their prices aren’t posted by the side of the road.”

That is the best I can do on answering this particular question. If I get a better answer, I will let you know.

By mvhannigan

AMA stands for “Ask Michael Anything,” and is a chance for readers to ask reporter Michael V. Hannigan questions about Henderson County. Ask questions through our Facebook Page or our website.

QUESTION: When I mentioned AMA on our Facebook Page last week, I received several questions about TxDOT projects.

Amy Dredla would like to know if there’s anything in the plans for the intersection of Loop 7 and FM 1616, which locals know is very dangerous. “I have seen Loop traffic (on several occasions) actual come to a complete stop, obviously confused by the overwhelming intersection. Those of us who live in the area know to be cautious. It is the new drivers, and the visitors that I am concerned about,” she said.

Gage Guinn would like to know the status of the widening of Highway 175 between Poynor and Baxter.

SOURCES: Texas Department of Transportation Public Information Officer Larry Krantz, who works out of the Tyler District Office.

ANSWER: I don’t think either Amy or Gage is going to like the answers.

Amy: Sorry, there aren’t any plans at this time for that intersection.

“We were looking at building an overpass there about seven years ago, but it never moved forward,” Larry said.

Gage: Apparently the widening of US 175 is still in the plans … there’s just no money for the project. That plan is part of the Texas Trunk System series of projects, and funding for that has dried up.

Larry said TxDOT continues to do things like purchase right-of-way and continue planning so that the project is “shovel ready” if the money is ever appropriated.

“We’re ready to move forward if funding ever materializes,” he said. “We’re hopeful it will be funded sooner rather than later, but there is no money for it right now.”

By mvhannigan

AMA stands for “Ask Michael Anything,” and is a chance for readers to ask reporter Michael V. Hannigan questions about Henderson County. Ask questions through our Facebook Page or our website.

QUESTION: Reader Mike Hembree asked about the cost for ongoing maintenance to the proposed splash pad in Athens.

SOURCE: Kim Hodges, who is an Athens Chamber of Commerce board member and the go-to person when it comes to splash pad information.

ANSWER: According to Hodges, organizers have not only talked with the manufacturer, they have had multiple talks with officials in Palestine, Longview and Rockwall, which all have this sort of splash pad, about just the sorts of questions Mike asked.

“We didn’t want to give (Kiwanis) a money pit,” Hodges said.

Let’s breakdown the answer into three parts: Maintenance, water and liability insurance.

Maintenance: One of the biggest costs for maintaining a water feature is usually the filtration system. However, since there is no standing water with a splash pad, there’s no filter, therefore no maintenance cost.

There is also not much to go wrong with the system itself since there are no moving parts. The one thing to watch is the spray nozzles themselves, but there isn’t usually much of a problem there, according to the other cities.

The Kiwanis Club (which leases the park from the city) will be responsible for the actual upkeep of the splash pad, which shouldn’t require much more than going out with some soap and a broom on a regular schedule and washing down the pad.

Water: This is the one big ongoing resource, and the city has stepped up to provide the water. However, it is important to note that city officials have told organizers that the splash pad will be the first thing turned off if we have drought conditions or water issues.

The system itself will be on a 5-minute timer … meaning someone will have to hit the start button every 5 minutes to keep it going. This will stop the water from running when the splash pad is empty. The system will be turned on at 9 a.m. and turned off at 8 p.m.

It is also important to note, Hodges said, that the splash pad won’t be running at all for extended times of the year because of the weather.

Liability insurance: Insurance for the splash pad will be under the policy already in place for Kiwanis Park. For insurance purposes, the splash pad is like another piece of playground equipment.

By mvhannigan

AMA stands for “Ask Michael Anything,” and is a chance for readers to ask reporter Michael V. Hannigan questions about Henderson County. Ask questions through our Facebook Page or our website.

QUESTION: Reader Chris Schwantes asked about road construction on State Highway 19 south of Athens, specifically: What is being done, when will it be finished, and why didn’t it stretch all the way to the current four lanes south of Athens (or where).

SOURCE: Texas Department of Transportation Public Information Officer Larry Krantz.

ANSWER: I will go through this point-by-point, but I think the most important thing I learned is that the project is not a widening for more capacity. The state is simply adding passing lanes in various locations.

And that pretty well answers the “what” question: adding passing lanes. Krantz said that the project is not really designed for added capacity (or a full-fledged road widening), but just for adding passing lanes “where we have the right-of-way.” That might be the reason you were having trouble determining what they were doing, Chris.

The “when” is the fall of 2014.

As for the “where,” Krantz said from south of the Koon Creek Bridge to the Anderson County Line. He said the reason the project does not extend farther north (to the four lane portion) is because the state probably didn’t have enough money to work on the bridge.