Which Way, L.A.?

Are Oil Companies Increasing Pain at the Pump on Purpose?

Although gasoline prices have stayed at more than $2 a gallon for the past seven weeks, the Shell Oil Company still insists on closing its big refinery near Bakersfield, cutting California-s gasoline supply by 2% and its diesel supply by 6. Shell maintains that the 72-year old facility is less efficient than other such plants, and that the crude oil supply in the San Joaquin Valley is running low, but politicians all over the West Coast want to know if Shell is really cutting back on supply in order to manipulate prices, driving them higher. Warren Olney speaks with State Senator Joe Dunn, economist Peter Navarro and Anita Mangles of the Western States Petroleum Association, about calls for an investigation into possible market manipulation and a look at how the oil industry is responding. Reporter's Notebook: State Says Volunteers Can-t Work for Free California gives millions of dollars a year to watershed restoration programs, encouraging the use of volunteer labor to stretch government money and raising environmental awareness. Now, it turns out that-s against the law, even though the legislator who wrote the measure says that-s not what he meant it to do. Michael Wellborn, President of the Board of Directors of the California Watershed Network, explains.