The opinion of the court was delivered by: CALDWELL
William W. Caldwell, United States District Judge
1. Plaintiff, John Slatky, operates a service station located at 1001 West Market Street in the City of York, Pennsylvania under a lease agreement and dealer supply agreement with defendant, Amoco Oil Company.
2. Defendant, Amoco Oil Company, is the owner of a service station facility located at 1001 West Market Street, York, Pennsylvania.
3. Plaintiff's and defendant's most recent lease and supply agreements are dated August 17, 1982 and run from September 1, 1982 until August 31, 1985.
4. By a letter dated May 29, 1985, defendant informed plaintiff that his lease would not be renewed and that any attendant franchise relationship would be terminated effective August 31, 1985.
5. The letter of May 29, 1985, further stated that in compliance with the requirements of the PMPA defendant would by separate letter, provide plaintiff with "a personal and nontransferable opportunity to purchase defendant's fee property and improvements thereon."
6. By letter dated June 28, 1985, defendant offered to sell plaintiff the station property for $306,300.00. This initial offer did not include the underground tanks and pumps.
7. Defendant's offering price for the property was determined by its employees who value any property that defendant intends to buy, sell or lease. Defendant's employees followed the procedures which it uses in the valuation of any of its property being offered for sale.
8. Defendant's general procedure for determining the offering price of property is to conduct an initial appraisal of the land and real estate improvements by its employees. The initial appraisal is transmitted for review to the real estate manager and project team director. If there are any questions from the review, the property is reappraised or the appraisal otherwise corrected. The offering price is then determined by defendant's capital asset Manager. The district manager for the area in which the property is located also participates in this process.
9. Mr. M. O'Dell performed the initial appraisal of the land value of 1001 West Market Street in York in early May, 1985. Mr. C. Bogdanowicz performed the initial appraisal of the property improvements. These appraisals were reviewed by Messrs. Compton (Real Estate Manager), O'Brien (Project Team Manager) and L. Warfield (District Manager). A reappraisal of the land value was requested and was performed by Mr. O'Dell in latter May, 1985. The offering price was determined to be $306,300.00 and was communicated to plaintiff.
10. By a letter dated July 25, 1985, plaintiff through counsel advised defendant that he was interested in purchasing the property, and that his independent appraisal had valued the property at only $158,200.00, including the tanks and dispensers.
11. Through a telephone conversation with plaintiff's counsel and by a letter dated July 30, 1985, defendant rejected plaintiff's counter offer.
12. The parties through a stipulation filed by counsel on August 16, 1985, and approved by the court, agreed to maintain the status quo pending a determination of the ...