Case No. RF272-94052
May 1, 1998
DECISION AND ORDER
OF THE DEPARTMENT OF ENERGY
Application for Refund
Name of Applicant:McCann-Shields Paint Company
Date of Filing: January 21, 1993
Case Number: RF272-94052
This Decision and Order will consider the Application for Refund filed by McCann- Shields Paint Company (McCann). The Application is based upon McCann's purchases of refined petroleum products during the crude oil price control period (August 19, 1973 through January 27, 1981). McCann 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 have been 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).
In order to receive a refund for crude oil overcharges, 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 been injured because they 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 of petroleum products it purchased during the price control period multiplied by the
volumetric refund amount. Currently, the volumetric refund amount is $.0016 per gallon.
We have carefully reviewed the information that McCann has submitted and determined that it was an end-user of refined petroleum products. On the basis of the documentation McCann has provided, we have also determined that it purchased 3,492,360 gallons of liquid asphalt during the price control period, which it used in the manufacturing of asphalt-based sealants. As an end-user, 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 for which a refund is approved in this Decision is 3,492,360 gallons, and the refund granted is $5,588.
It Is Therefore Ordered That:
(1) The Application for Refund filed by McCann-Shields Paint Company, Case No. RF272-94052, is hereby granted 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 to McCann-Shields Paint Company $5,588 from the DOE deposit fund escrow account denominated Crude Tracking- Claimants IV, Account Number 999DOE010Z, maintained at the Department of Treasury.
(3) The refund check should be sent to:
McCann-Shields Paint Company
William E. Shields, President
27 Alexander Street
Pittsburgh, PA 15220
(4) To facilitate the payment of future refunds, McCann-Shields Paint Company 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 that McCann-Shields Paint Company has submitted. This Decision and Order may be revoked or modified at any time upon a finding that the basis underlying the 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, 1998