Case No. RK272-03346
February 25, 1997
DECISION AND ORDER
OF THE DEPARTMENT OF ENERGY
Supplemental Order
Names of Applicants: Melvin Boots
Allen Boots
Date of Filing: June 21, 1995
Case Numbers : RK272-3346
RK272-3347
RK272-3358
On November 3, 1988, the Office of Hearings and Appeals (OHA) of the Department of Energy (DOE) issued a Decision and Order in the Subpart V crude oil refund proceeding approving refunds for purchases made by Noelridge Park Service (Noelridge)(Case Nos. RF272-17307 and RF272-17308). See Home Rubber Co. et al., Case Nos. RF272-17223 et al. (November 3, 1988). In that Decision, this Office granted a refund of $225 to Melvin and Allen Boots (Case No. RF272- 17307), partners in Noelridge, based on purchases of 1,125,519 gallons of refined petroleum products and a refund of $238 to Allen Boots (Case No. RF272-17308), sole owner of Noelridge prior to the partnership with his father, Melvin Boots, based on purchases of 1,919,050 gallons of refined petroleum products.(1)
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 November 3, 1988 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 supplemental refunds in Case Nos. RF272-17307 and RF272-17308, however, we discovered that both of the applications filed on behalf of Noelridge were erroneously granted. In their initial applications, Melvin and Allen Boots indicated that during the refund period (August 17, 1973 through January 1, 1981) Noelridge operated as a reseller of petroleum products. The OHA has held that resellers and retailers of refined petroleum products must submit evidence of injury to be eligible for refunds in this proceeding. See Joe's Exxon Service et al., 19 DOE ¶ 85,116 (1989). Melvin and Allen Boots submitted no evidence that Noelridge was injured by crude oil overcharges. Since crude oil overcharges were spread evenly throughout the petroleum industry, the market prices of all resellers and retailers increased. Thus, we have presumed
that all resellers and retailers were compensated for increased costs through generally higher selling prices to their customers.
Consequently, this Office has decided to deny the Applications for Supplemental Refund filed by Melvin Boots (Case No. RK272-3346) and Allen Boots (Case Nos. RK272-3347 and RK272-3358).
It Is Therefore Ordered That:
(1) The Applications for Supplemental Refund filed by Melvin Boots, Case No. RK272-3346, and Allen Boots, Case Nos. RK272-3347 and RK272-3358, are hereby denied.
(2) This is a final Order of the Department of Energy.
George B. Breznay
Director
Office of Hearings and Appeals
Date: February 25, 1997
(1)On April 11, 1989, supplemental refunds of $675 and $715 were granted in Case Nos. RF272-17307 and RF272-17308, respectively. Crude Oil Supplemental Refund Distribution, 18 DOE ¶ 85,878 (1989).