Case No. RF272-86026

May 19, 1997

DECISION AND ORDER

OF THE DEPARTMENT OF ENERGY

Applications for Refund

Names of Petitioners: Township of Montclair et al.

Dates of Filing: January 17, 1991 et al.

Case Numbers: RF272-86026 et al.

This Decision and Order will consider Applications for Refund filed by 18 claimants that purchased refined petroleum products during the period August 19, 1973 through January 27, 1981. Each applicant listed in the Appendices attached to the Decision and Order has requested a refund from crude oil monies available for disbursement by the Office of Hearings and Appeals of the Department of Energy pursuant to the Statement of Modified Restitutionary Policy in Crude Oil Cases, 51 Fed. Reg. 27899 (August 4, 1986).

In order to receive a refund for crude oil overcharges, an applicant that was an end-user (i.e., consumer) of refined petroleum products must document its purchase volumes. City of Columbus, Georgia, 16 DOE ¶ 85,550 (1987). Each applicant's refund share is calculated using the current refund amount of $0.0016 per gallon.

We have reviewed the information submitted by these applicants and determined that each was an end-user of petroleum products.(1) Each of the applicants has demonstrated the volume of its claim by consulting actual records or by using a reasonable estimation technique. The gallonage amounts listed in the Appendices to this Decision and Order reflect the approved purchase

volume for each applicant.(2) Each of the applicants listed in the Appendices is eligible to receive a refund. The purchase volumes and refunds approved for each applicant are set forth in the Appendices. The applicants considered in this Decision applied either on their own behalf or through a private filing service. In accordance with each applicant's request, refund checks will be sent to the applicant or the applicant's representative. The total volume for which refunds are approved in Appendix A is 4,143,597 gallons and the sum of the refunds granted is $6,631; the total volume for which refunds are approved in Appendix B is 7,166,425 gallons and the sum of the refunds granted is $11,466; the total volume for which refunds are approved in Appendix C is 54,543,259 gallons and the sum of the refunds granted is $87,268, and the total volume for which refunds are approved in Appendix D is 13,349,090 gallons and the sum of the refunds granted is $21,358.

The final deadline for applications in the crude oil refund proceeding was June 30, 1995. It is the current policy of the DOE to pay eligible refund claimants at the rate of $0.0016 per gallon. We will decide whether sufficient crude oil overcharge funds are available for additional refunds for these and other successful applicants when we are better able to determine how much additional money will be collected from firms that have either outstanding obligations to the DOE or enforcement cases currently in litigation.

It Is Therefore Ordered That:

(1) The Applications for Refund filed by the claimants listed in the Appendices to this Decision and Order for all available crude oil overcharge funds are hereby approved as set forth in Paragraph (2) below.

(2) The Director of Special Accounts and Payroll, Office of Departmental Accounting and Financial Systems Development, Office of the Controller, of the Department of Energy shall take appropriate action to disburse the refund amounts set forth in the Appendices to this Decision and Order from the DOE deposit fund escrow account maintained at the Department of the Treasury denominated Crude Tracking-Claimants 4, Account No. 999DOE010Z to the applicants listed in the Appendices. For those applicants listed in Appendix A, the checks should be made payable to “[the applicant] or Petroleum Funds, Inc.” and sent to:

Petroleum Funds, Inc.

P.O. Box 1380

Paris, TN 38242-9986

For those applicants listed in Appendix B, the checks should be made payable to “[the applicant] or McMickle & Edwards” and sent to:

McMickle & Edwards

P.O. Box 221145

Memphis, TN 38122

For those applicants listed in Appendix C, the checks should be made payable to the applicant and sent to the address indicated in the Appendix.

For those applicants listed in Appendix D, the checks should be made payable to “[the applicant] or Wilson, Keller & Associates” and sent to:

Wilson, Keller & Associates

P.O. Box 221145

Memphis, TN 38122

(3) Hatton Cooperative Oil Co. shall notify its membership of the receipt of the refund and shall pass through to its member customers all crude oil refunds received in Subpart V refund proceedings conducted by the Office of Hearings and Appeals.

(4) To facilitate the payment of future refunds, the applicants shall notify the Office of Hearings and Appeals in the event that there is a change of address, or if an address correction is necessary. Such notification shall be sent to:

Director of Management Information

Office of Hearings and Appeals

Department of Energy

1000 Independence Avenue, S.W.

Washington, D.C. 20585-0107

(5) The determinations made in this Decision and Order are based upon the presumed validity of the 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.

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

George B. Breznay

Director

Office of Hearings and Appeals

Date: May 19, 1997

(1)Interested parties were given an opportunity to submit comments regarding individual crude oil refund applications. No such comments were filed with respect to any application involved in this determination.

(2)One applicant, Hatton Cooperative Oil Co. (Hatton), is an agricultural cooperative. In Subpart V refund proceedings, we have generally regarded refund applications filed by cooperatives as claims filed on behalf of their members because cooperatives are in a position to pass through any refunds received to their members. Thus, to the extent that the volumes claimed by Hatton were sold to its members, the end-user presumption of injury is applicable to this claim. Hatton has certified that it will pass through any refund to its members. Furthermore, we have subtracted from the gallonage claim the volume that Hatton sold to non-members. Accordingly, we will grant a refund to Hatton based on the volume set forth in Appendix C.

Another applicant, Oneida County, Idaho (Case No. RF272- 86850), originally claimed an estimated purchase volume of 237,940 gallons based upon average purchases by county governments in Idaho. Recently, the county submitted actual annual dollar purchase figures for three years (only one of which was during the refund period) in support of its contention that it purchased a greater volume of petroleum products than it initially claimed. However, this information was only sufficient for us to find that the initial gallonage figure submitted by the county was reasonable. Because the total dollar purchase for two products (gasoline and motor oil) were combined and the figures for a third product, road oil, included freight charges, we were not able to calculate a more accurate estimated purchase volume. Therefore, Oneida County’s application will be approved for 237,940 gallons of petroleum products, which consist of gasoline and motor oil.

Appendix
CASE NO. APPLICANT FIRM CONTACT VOLUME REFUND  
RF272-86026 TOWNSHIP OF MONTCLAIR OR PETROLEUM FUNDS, INC. C/O JOAN HOYT 1,537,908 $2,461  
RF272-86079 BENTON COUNTY OR PETROLEUM FUNDS, INC. MARK M. ORMON 674,086 $1,079  
RF272-86252 CITY OF TROY OR PETROLEUM FUNDS, INC. C/O SUE KNIGHT 1,638,663 $2,622  
RF272-86268 TOWN OF LANDOVER HILLS OR PETROLEUM FUNDS, INC. C/O KATHLEEN A. TAVEL 55,000 $88  
RF272-86850 ONEIDA COUNTY, IDAHO OR PETROLEUM FUNDS, INC. C/O SHIRLEY BLAISDELL 237,940 $381  
Totals: 5     4,143,597 $6,631  
             
             
CASE NO. APPLICANT FIRM CONTACT VOLUME REFUND  
RF272-86127 PETRILLO BROTHERS OR MCMICKLE & EDWARDS C/O KEVIN MCHUGH 1,539,093 $2,463  
RF272-86809 FLOYD DUENOW, INC. OR MCMICKLE & EDWARDS C/O FLOYD DUENOW 1,785,192 $2,856  
RF272-86810 SHARRON MOTOR LINES, INC. OR MCMICKLE & EDWARDS C/O TOMMY H. TUCKER 3,842,140 $6,147  
Totals: 3     7,166,425 $11,466  
             
             
CASE NO. APPLICANT FIRM CONTACT VOLUME REFUND  
RG272-00431 BAHAMASAIR OR WILSON, KELLER & ASSOCIATES C/O BASIL INGRHAM 11,950,767 $19,121  
RG272-00432 MID-SOUTH AIRLINES, INC. OR WILSON, KELLER & ASSOCIATES C/O GEORGE W. PARKER 89,546 $143  
RG272-00438 DAVIS AIRLINES, INC. OR WILSON, KELLER & ASSOCIATES C/O GUY A. DAVIS 1,217,076 $1,947  
RG272-00441 GREEN HILLS AVIATION, LTD. OR WILSON, KELLER & ASSOCIATES C/O IRA S. BRACKENS 91,701 $147  
Totals: 4     13,349,090 $21,358  
             
             
             
CASE NO. APPLICANT CONTACT STREET ADDRESS CITY/STATE VOLUME REFUND
RF272-86862 SHELBY COUNTY, INDIANA C/O MAURICE LEAP COUNTY COURTHOUSE SHELBYVILLE, IN 46176 1,310,913 $2,097
RF272-86869 BRD. OF COOPERATIVE EDUCATION. 3RD SUPERVISORY DIST. C/O ANTONIO V. FRACCALVIERI 507 DEER PARK RD. DIX HILLS, NY 11746 2,096,826 $3,355
RF272-86873 LAFAYETTE CENTRAL SCHL DIST. C/O RITA E. BUSH 5655 RT. 20 W. LA FAYETTE, NY 13084 1,717,794 $2,748
RF272-86874 HATTON COOPERATIVE OIL CO. C/O SCOTT ENGER BOX 367 HATTON, ND 58240 8,385,049 $13,416
RG272-00259 GILVIN-TERRILL, INC. C/O SHIRLEY A. VERNON P.O. BOX 9027 AMARILLO, TX 791059027 38,325,873 $61,321
RG272-00527 AIR HAITI, S.A. C/O JOHN MATHIS HOGAN & HARTSON 555 13TH ST., N.W. WASHINGTON, DC 20004 2,706,804 $4,331
Totals: 6       54,543,259 $87,268
             
             


Last Updated on 7/9/97
By OHA