Case No. RJ272-00033

January 28, 1997

DECISION AND ORDER

OF THE DEPARTMENT OF ENERGY

Supplemental Order

Name of Applicant:Chatham Memorial Hospital

Date of Filing:January 9, 1997

Case Number:RJ272-33

On December 23, 1987, Chatham Memorial Hospital (Chatham) filed an Application for Refund in the Subpart V crude oil refund proceeding that is being administered by the Office of Hearings and Appeals of the Department of Energy (Case No RF272-22426). On December 8, 1988, Chatham was granted a refund of $722 based upon purchases of 902,462 gallons of petroleum products. Don Bridges, et al., Case Nos. RF272-22011, et al. (December 8, 1988). Crude oil refunds are paid in installments as additional funds are collected and made available for distribution, and on June 21, 1995, Chatham was granted an additional supplemental refund of $722. Crude Oil Supplemental Refund Distribution, et al., Case No. RB272-39 (June 21, 1995).

On February 11, 1991, subsequent to approval of the first refund, Chatham filed a second crude oil refund application in which it claimed purchases of 535,680 gallons of petroleum products (Case No. RF272-86548). This application was filed on Chatham's behalf by Federal Refunds, Inc. (FRI), a private filing service. That application falsely stated that Chatham had never filed an application in the crude oil refund proceeding. On June 12, 1992, a refund of $429 was approved based upon the second application. Search School Dist., et al, Case Nos. RF272-78819, et al. (June 19, 1992). A supplemental refund of $429 based upon the second application was approved on October 8, 1996. Crude Oil Supplemental Refund Distribution, Case No. RB272-88 (October 8, 1996).

We contacted Chatham concerning the duplicate applications. An official of the hospital stated that neither of the individuals who filed the applications are still employed by the hospital and that she has no evidence that the second application did not duplicate volumes for which Chatham received a refund from the first application.(1) We therefore find that the second application resulted in the hospital receiving duplicate refunds.

We stated in the June 19, 1992, determination approving the second application that:

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

Such remedial action is appropriate here. Accordingly, we shall rescind both the initial and supplemental refunds that resulted from the second refund application. Chatham shall be required to repay $858, the amount of the resulting overpayment.(2)

It Is Therefore Ordered That:

(1) The Decision and Order issued on June 19, 1992, Search School Dist., et al, Case Nos. RF272- 78819, et al. and the Decision and Order issued on October 8, 1996, Crude Oil Supplemental Refund Distribution, Case No. RB272-88, are hereby rescinded with respect to Chatham Memorial Hospital (Case No RF272-86548, redesignated RJ272-33).

(2) Chatham Memorial Hospital is hereby directed to remit the sum of $858 to the DOE within 30 days. The check shall be made payable to the "Department of Energy," and shall prominently display Case No. RJ272-33 and shall be sent to:

Department of Energy

Office of the Controller

Cash Control Branch

P.O. Box 500

Germantown, MD 20874

In the event that payment is not made within 30 days of the date of this Supplemental Order, interest shall accrue from the date of this Supplemental Order 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 notification by the Office of the Controller of the receipt of these funds, the Director of

Special Accounts and Payroll, Office of the Departmental Accounting and Financial Systems Development, Office of the Controller of the Department of Energy, shall deposit these funds into the deposit fund escrow account maintained at the Department of Treasury, denominated Crude Tracking-Claimants 4, Account No. 999DOE0010Z.

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

George B. Breznay

Director

Office of Hearings and Appeals

Date: January 28, 1997

(1)The second application included only purchases from Gulf Oil Corporation, while the first included purchases of petroleum products from all suppliers.

(2)As the duplicate filing was caused by FRI's failure to investigate whether its client had already filed a crude oil refund claim, FRI should return to Chatham any commission that it was paid.