Almost two years and more than 70 cents a gallon later, the Oregon Department of Justice released its long-awaited report on the South Coast's escalating gas prices on Thursday.

The investigation was initiated in the fall of 2004, after more than 100 South Coast residents complained about gas prices that were higher - sometimes by as much as a quarter or more - than outlying and more remote areas.

Justice investigators questioned whether the price increases were due to market conditions or due to anticompetitive behavior - and didn't find enough support for any conclusion.

“On the basis of this investigation, insufficient evidence exists to conclude that high prices consumers experienced on the Southern Oregon Coast during the period examined resulted from illegal anticompetitive behavior. High gasoline and diesel prices on the southern Oregon coast in 2004 appear to have been the result of national and local market factors rather than unlawful collusion,” the 13-page report said.

The report points to the standard mix of factors as causes for drivers paying more gas in the fall of 2004 and winter of 2005:

n crude oil prices;

n seasonal demands;

n restricted refinery and pipeline capacity;

n foreign political instability and speculation in the futures market;

n the relative strength or weakness of the U.S. dollar;

n federal and state taxes; and

n the profits and costs embedded in the refining, distribution and retail sale of fuel.

At the time South Coast residents complained about high gas prices - about $2.25 a gallon at the time - crude oil was at about $36 a barrel. By September 2005, the price was up to $59.84 a barrel.

But the report doesn't say whether those prices reflect overall average prices for crude oil, including all imports, oil from the Gulf Coast or Alaska North Slope crude. Often, the price for crude oil from Alaska is a couple dollars cheaper than imported or crude oil from the Gulf Coast. It's the Alaska oil on which the West Coast primarily depends.

In May 2004, according to the same federal Energy Information Administration Web site from which Oregon the department obtained its information, the price for Alaska crude was $32.69 a barrel. In September 2005, it was almost $3 a barrel cheaper than what the department reported, at $56.88 a barrel.

The department and Oregon Attorney General Hardy Myers received more than 150 complaints about gas prices and potential collusion or price-fixing. Department personnel talked with some of the folks who made the complaints and also with petroleum industry business representatives.

Investigators did find that South Coast prices oftentimes were about 30 cents higher than the state average and dropped more slowly than prices in major metropolitan areas.

The report also said that other factors contribute to higher prices on the coast:

n a lack of a readily available supply;

n additional transportation costs to get the fuel from the pipeline terminal in Eugene; and

n fluctuating demand that peaks in the summer.

Local fuel companies had little to say about the investigation results. A woman who answered the phone at Goddard Energy Co. in Bandon hung up on reporters and refused to answer questions on the company's participation in the investigation.

Reporters were stymied, as well, in repeated phone calls to Dedicated Fuels Inc. in North Bend. There, a woman speaking for the company, refused to answer questions, demanded that The World stop its “harassing phone calls,” and hung up on the caller.

Scott Bassett, president of Bassett-Hyland Energy Company, was the only local fuel company official who spoke to The World. He said the Oregon Department of Justice never contacted them in their investigation.

“They had Dedicated Fuels in for a talk, I think, but they own a lot of stations in the area. We only own one, the Chevron on the south end of town.”

Bassett attributed the area's unusually high gas prices in 2004 to transportation costs and the regular “seasonal fluctuations” of gas prices, but acknowledged it might have been the case that some gas retailers kept their prices unnecessarily high and other retailers simply went along with it.

“Copycatting happens in every location,” said Bassett. “It's been in the gasoline industry for decades. All you do is look around and see the prices others are charging. (Retailers) don't want to be too many cents higher than the guy across the street, and in the winter, when things are leaner, that same thing sometimes causes prices go up a bit.”

The investigation took more than two years to complete. Stephanie Soden, speaking for Myers' office, said it took two and a half years to release the results of the investigation, not to complete the probe.

“The report did not just get completed - it's been completed for awhile. We've been involved in ongoing investigations into gas prices nationally and decided now was a good time to provide consumers with a follow-up on our investigations into gas prices,” she said.

While the report doesn't address specific complaints against fuel companies and gas retailers on the South Coast, according to Soden, the attorney general functions under state laws regulating what information can be released.

“Oregon law dictates that fraud investigations remain confidential,” she said. “One of the reasons we face restrictions in investigations is to help protect companies. We're supposed to balance the rights to companies and customers, and we walk a fine line with that.”

The investigation was put on hold following hurricane Katrina last year, but the attorney general's office has little to say about their role in the response to Katrina and why the investigation was held back. Soden said that Myers' office was involved in national discussions on financial fraud and working with other attorneys general, but said the fuel price investigation had little to do with that.

Myers encouraged Oregonians to continue to monitor gas prices and to report “unlawful conduct” to the state.

“It's one of the hottest issues in terms of contact from consumers. We get a number of complaints saying the price of gas is too high,” Soden said. “We want people to feel like there's something they can do and they can assist us. We feel fortunate that we've not had any unlawful activity in Oregon, but we remain dedicated to making sure that continues.”

- Staff writers Hallie Winchell and Drew Atkins contributed to this story.

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On the Net: Oregon Department of Justice: www.doj.state.or.us

Energy Information Administration: http://tonto.eia.doe.gov/ dnav/per/hist/wtotusw.htm