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                                                                 Exhibit 11.0



July 9, 1999


United Refining Company
15 Bradley Street
Warren, Pennsylvania  16365

Gentlemen:

We are providing this letter to you for inclusion as an exhibit to your Form
10-Q for the quarterly period ended May 31, 1999 pursuant to Item 601 of
Regulation S-K.

Note 2 of the notes to the interim condensed financial statements of United
Refining Company (the "Company"), describes a change in the method of accounting
for turnaround costs. Turnaround costs, which consist of complete shutdown and
inspection of significant units of the refinery at intervals of three or more
years for necessary repairs and replacement, were estimated during the units'
operating cycles and were charged against income currently. Turnaround costs
will now be capitalized as incurred and amortized over the period between
turnarounds. Management has advised us that the change is necessary because it
has become increasingly difficult, if not impossible, to reasonably estimate the
amount of turnaround costs which will be incurred due to the numerous and
ever-changing environmental rules and regulations which impact their facilities.
Management has also advised us that they believe the new method is preferable
because (1) the costs extend the life of the assets which comprise the refinery;
(2) the change will result in a better matching of revenues and expenses; and
(3) the change is consistent with industry practices. Although there are no
authoritative criteria for determining a "preferable" method in the
circumstances, we conclude that the change in the method of accounting for
turnaround costs is to an acceptable alternative method, which based on
management's business judgement to make this change for the reasons cited above,
is preferable in the circumstances. We have not conducted an audit in accordance
with generally accepted auditing standards of any financial statements of the
Company as of any date or for any period subsequent to August 31, 1998, and
therefore we do not express any opinion on any financial statements of United
Refining Company subsequent to that date.


/s/ BDO SEIDMAN, LLP
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BDO Seidman, LLP
New York, New York