Case Nos. RC272-00370, RK272-00881 & RK272-00882

August 13, 1997

DECISION AND ORDER

OF THE DEPARTMENT OF ENERGY

Supplemental Order

Names of Petitioners: Pahl-Ruff Partnership

Ruff Times Farms

Pahl Farms

Dates of Filing: August 7, 1997

June 28, 1995

June 28, 1995

Case Numbers: RC272-370

RK272-881

RK272-882

On July 11, 1988, the Office of Hearings and Appeals (OHA) of the Department of Energy (DOE) issued a Decision and Order granting a refund to Pahl-Ruff Partnership (Pahl-Ruff)(Case No. RF272-22003), in the crude oil refund proceeding. See Runyan Family Farm et al., Case Nos. RF272-22000 et al. (Runyan). In that Decision, this Office granted a refund of $73 to Pahl-Ruff, which is headquartered in Dayton, Ohio, based on purchases of 363,724 gallons of refined petroleum products from August 1973 through January 1981 and a per gallon volumetric refund amount of $0.0002. Pahl-Ruff was later granted a supplemental refund of $218, based upon a per gallon volumetric refund amount of $0.0006. Crude Oil Supplemental Decision, 18 DOE ¶ 85,878 (1989) (unpublished appendix 10). Thus, the total refund that Pahl-Ruff was granted under Case No. RF272-22003 is $291.

This Office is in the process of issuing supplemental refunds to all applicants granted refunds in the crude oil proceeding. As we stated in the Runyan Decision and Order, when additional crude oil monies became available, meritorious applicants would receive a share of the additional monies. During our review process for this supplemental refund, we discovered that in June 1989, Pahl-Ruff was granted a refund of $290 for the purchase of 362,289 gallons under Case No. RF272-63884. See Tobias Heller et al., Case Nos. RF272- 68302 et al. (June 21, 1989). It appears that one partner, Douglas Ruff, filed the first application and the other partner, Greg Pahl, filed the second application. Each application requested a refund for the same purchases, as each application multiplied roughly the same total number of acres on the farm by a United States Department of Agriculture average for the use of petroleum

products. Thus, a duplicate refund was erroneously granted based on the same purchases.

Since the supplemental per gallon refund amount ($0.0008) is the same as the prior refund amount, rather than requiring Pahl-Ruff to repay the second refund, we normally would not have disbursed any additional funds to Pahl-Ruff. Unfortunately, a supplemental refund of $290 based on one of the duplicate applications, Case No. RF272-63884, has already been erroneously granted to Pahl-Ruff. See Crude Oil Supplemental Refund Distribution, Case No. RB272-55 (October 26, 1995).

We stated in Ordering Paragraph 3 of Runyan:

The determinations made in this Decision and Order are based upon the presumed validity of statements and documentary material submitted by the applicants. Any of these determinations may be revoked or modified at any time upon a finding that the basis underlying any refund application is incorrect.

Such remedial action is appropriate here. This Office is therefore rescinding Pahl-Ruff’s duplicative refund. See State of Montana, 25 DOE ¶ 85,059 (1995). Since we have already granted a supplemental refund for Case No. RF272-63884, we are rescinding the original refund granted under Case No. RF272-22003.

On June 28, 1995, Douglas Ruff and Greg Pahl submitted claims for a supplemental refund for Case No. RF272-22003. At that time, they notified us that Pahl-Ruff had been dissolved and they wished separate checks to go the former partners’ new farms, Ruff Times Farms and Pahl Farms. Therefore, we are holding Douglas Ruff and Greg Pahl jointly and severally liable for repayment of the $291 the partnership was duplicatively granted. In addition, we shall deny the Applications filed by the two men for another Supplemental Crude Oil Refund.

It Is Therefore Ordered That:

(1) The Decision and Order issued by the DOE on July 11, 1988, Runyan Family Farm et al., Case Nos. RF272-22000 et al., is hereby rescinded as to Pahl-Ruff Partnership, Case No. RF272-22003, redesignated RC272-370.

(2) Douglas Ruff and Greg Pahl are hereby jointly and severally directed to remit $291 to the Department of Energy. Payment shall be mailed to the following address:

U.S. Department of Energy

Office of the Controller

Cash Control Branch

P.O. Box 500

Germantown, MD 20874-0500

Payment should be made by check payable to the U.S. Department of Energy and should refer to Case No. RC272-370. In the event that payment is not made within 30 days of the date of this Decision and Order, interest shall accrue on the amount due at the rate generally assessed by the Department of Energy on overdue receivables. Other charges generally assessed on overdue DOE receivables shall also apply.

(3) Upon receipt of the payment specified in paragraph (2) above, the Director of Special Accounts and Payroll, Office of Chief Financial Officer, shall take appropriate action to deposit these funds into the DOE deposit fund escrow account denominated Crude Tracking-Claimants 4, Account No. 999DOE010Z, maintained at the Department of the Treasury.

(4) The Applications for Supplemental Refund filed by Ruff Times Farms (Case No. RK272-0881) and Pahl Farms (Case No. RK272-0882) are hereby denied.

(5) This is a final Order of the Department of Energy.

George B. Breznay

Director

Office of Hearings and Appeals

Date: August 13, 1997