Case No. RG272-00609
May 1, 1997
DECISION AND ORDER
OF THE DEPARTMENT OF ENERGY
Applications for Refund
Names of Applicants: Air Siam No. 1
Air Siam No. 2
Date of Filing: July 3, 1995
Case Numbers: RG272-609
RG272-610
This Decision and Order will consider two Applications for Refund filed on behalf of Air Siam Air Company (Air Siam). Air Siam was an airline company which was based in Bangkok, Thailand. It is currently the subject of a bankruptcy proceeding in Thailand. The applications are based upon the applicants purchases of refined petroleum products during the crude oil price control period (August 19, 1973 through January 27, 1981). Air Siam applied through Wilson, Keller & Associates, a private filing service. Air Siam has requested a refund from crude oil funds available for disbursement by the Office of Hearings and Appeals (OHA) of the Department of Energy (DOE) under the provisions of 10 C.F.R. Part 205, Subpart V.
In the past, purchasers of refined products were allowed to apply to the OHA for a refund from crude oil overcharge funds collected by the DOE. 51 Fed. Reg. 27899 (August 4, 1986). We have established refund procedures for these funds, which have been made available through consent orders between the DOE and numerous firms that sold crude oil during the price control period. E.g., Berry Holding Co., 16 DOE ¶ 85,405 (1987); A. Tarricone, Inc., 15 DOE ¶ 85, 495 (1987); Mountain Fuel Supply Co., 14 DOE ¶ 85,475 (1986).
The refund procedures specify that in order to receive a refund, an applicant generally must: (1) document its purchase volumes and (2) show that it was injured by alleged crude oil overcharges. Applicants who were end-users of petroleum products, however, and whose businesses were unrelated to the petroleum industry are presumed to have absorbed the crude oil overcharges. These applicants need not submit proof of injury to receive a refund in the Subpart V proceeding. City of Columbus, Georgia, 16 DOE ¶ 85,550 (1987).
In general, an applicant is eligible for a refund equal to the number of gallons it purchased multiplied by the volumetric refund amount. Currently, the volumetric refund amount is $.0016 per gallon.
Air Siam is a foreign air carrier which operated flights in the United States during the refund period. Air Siam states in its application that it purchased large quantities of non-bonded aviation fuel in the United States which its planes consumed. Air Siam certified that it seeks a refund only for its domestic purchases of non-bonded as opposed to bonded aviation fuels.(1)
Air Siam does not have actual purchase data from the refund period. Therefore, it estimated its purchases based on records of fuel consumption per hour, types of aircraft operated, and the number of its scheduled flights from U.S. airports during the price control period. We have examined the estimation method used by Air Siam and find it to be reasonable.
We find Air Siam was an end-user of refined petroleum products. Accordingly, it is presumed injured by the crude oil overcharges and is entitled to receive its full allocable share of the crude oil funds. The total volume approved in this Decision is 30,239,418 gallons, and the sum of the refunds granted is $48,383.
Since Air Siam is bankrupt, the application was filed by the Official Receiver of Air Siam Air Company, Mrs. Langnoi Palawatwichai. Mrs. Palawatwichai was appointed by the bankruptcy court in Thailand at the time of Air Siams bankruptcy. She has requested that sixty-five percent of the refund be sent directly her office and thirty-five percent be sent directly to Air Siams representative in this proceeding, Wilson, Keller & Associates. To facilitate the payment method, Air Siam filed two separate applications. One application represents the sixty-five percent share to be sent to the Official Receiver, and the other represents the thirty-five percent to be sent to Wilson, Keller.
The final deadline for the crude oil proceeding was June 30, 1995. It is the current policy of the DOE to pay eligible crude oil refund applicants at the rate of $0.0016 per gallon. We will decide whether sufficient crude oil overcharge funds are available for additional refunds for this 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 Air Siam Air Company are hereby granted as set forth in Paragraphs (2) and (3) below.
(2) The funds shall be disbursed from the escrow fund denominated Crude Tracking-Claimants 4, Account No. 999DOE010Z, maintained at the Department of the Treasury.
(3) Air Siam Airways applied through the filing service Wilson, Keller & Associates. In accordance with its request, a refund check in the amount of $31,449 (Case No. RG272-609) should sent to:
Department of Legal Executions
Official Receiver of Air Siam Air Company, Ltd.
Official Receiver Div. I, 189/1 Bangkok Noi-Talingchan Road
Bangkhunnon Sub-district, Bangkok Noi District
Bangkok 10700, Thailand
A second refund check in the amount of $16,934 (Case No. RG272-610) should be sent to:
Wilson, Keller & Associates
Re: Air Siam Air Company, Ltd.
P.O. Box 221145
Memphis, TN 38122
(4) To facilitate the payment of future refunds, Air Siam 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 materials submitted by the applicant. Any of these determinations may be revoked or modified at any time upon a finding that the basis underlying any Application for Refund is incorrect.
(6) This is a final Order of the Department of Energy.
George B. Breznay
Director
Office of Hearings and Appeals
Date: May 1, 1997
(1)Bonded fuels means those fuels produced outside the custom limits of the United States, held in bond under continuous United States customs custody in accordance with Treasury Department Regulations, and destined for use outside the United States, its territories or possessions. 10 C.F.R. § 211.51.