Lyric discussion by mandalex 

from wiki.....

Although the lyrics are, at first glance, typically oblique and allusive, writers Walter Becker and Donald Fagen have stated that it was loosely inspired by the exploits of the infamous 1960s San Francisco-based LSD chemist Owsley Stanley[1] — although it conflates the core story with numerous other images of the Sixties. This is evident in the following lines:

On the hill the stuff was laced with kerosene But yours was kitchen clean Everyone stopped to stare at your Technicolor motor home

The first two lines draw on the fact that Owsley's acid was famed for its purity, although the last line is clearly a reference to the famous psychedelic bus named Furthur, which was used by the Merry Pranksters.

The final verse foreshadows the main reason for Owsley's eventual bust:

Clean this mess up else we'll all end up in jail Those test tubes and the scale Just get them all out of here Is there gas in the car? Yes, there's gas in the car I think the people down the hall know who you are

Owsley and another person were arrested after their car ran out of gas.

The song features a famous guitar solo by guitarist Larry Carlton.

Owsley Stanley (b. Augustus Owsley Stanley III, January 19, 1935, also known as Owsley or Bear) was an "underground" LSD chemist, the first to produce large quantities of pure LSD. His total production is estimated at around half a kilogram of LSD, or roughly 5 million 100-microgram "trips" of normal potency, although accounts vary widely. The widespread and low-cost (often given away free) availability of high-quality Owsley LSD in the San Franciso area in the mid-1960s may well have been indispensable for the emergence of the "hippie" movement in the Haight-Ashbury area, which the historian of that movement Charles Perry has described as "one big LSD party" and which has had continuing repercussions to this day in American society in terms of increasing tolerance for alternative perspectives and lifestyles. He was also an accomplished sound engineer, and the longtime soundman for seminal psychedelic rock band The Grateful Dead; the band's well-known "dancing bear" icon derives from his nickname, as he frequently printed the image on blotter sheets of LSD distributed at Grateful Dead concerts.[citation needed] He designed the massive "Wall of Sound" electrical amplification system used by the Grateful Dead in their live shows, at the time a highly innovative feat of engineering[1], and was involved with the creation of high-end musical instrument maker

Not only is the song about acid chemist Owsley - it is pretty much historically accurate. He did run out of gas prior to being busted. Mandalex's answer should be on top, IMO.

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