Case No. RF272-94116

September 11, 1998

DECISION AND ORDER

OF THE DEPARTMENT OF ENERGY

Applications for Refund

Names of Petitioners: Henna Chevrolet, Inc., et al.

Date of Filings: October 17, 1994, et al.

Case Numbers: RF272-94116, et al.

This Decision and Order considers and ultimately grants, in whole or in part, four Applications for Refund, releasing a total of $28,806 in the Subpart V crude oil refund proceeding. The names of the five Applicants are set forth in the Appendix to this Decision and Order. Each Applicant purchased refined petroleum products during the period August 19, 1973 through January 27, 1981 and each has requested a refund from crude oil monies available for disbursement by the Office of Hearings and Appeals of the Department of Energy (DOE) pursuant to the Statement of Modified Restitutionary Policy In Crude Oil Cases, 51 Fed. Reg. 27899 (August 4, 1986). Each Applicant relies on the presumption of injury for end-users as the basis for its refund claim. Under this presumption, OHA will presume applicants were injured if they were end-users of petroleum products and were not covered by the DOE or its predecessors’ price controls. City of Columbus, Georgia, 16 DOE ¶ 85,550 (1987).

We have reviewed the information submitted by all four applicants and determined that each was an end-user of eligible petroleum products. Each of the applicants listed in the Appendix derived its purchase volume claim by consulting actual records or by using reasonable estimation techniques. Two of the four applicants listed in the Appendix are agricultural cooperatives. Each application is based on petroleum products that the cooperative purchased for resale to the farmers who were its members. We regard a refund application filed by a cooperative that resold petroleum products to its members as a claim filed on behalf of the members themselves. Farmers Union Oil Co., 17 DOE ¶ 85,464 (1988). A cooperative can thus claim the presumption of end-user injury to the extent that its members were end-users. Each cooperative has certified that it will pass through any refund received to its members. Consequently, on this basis we will grant a refund to these cooperatives based on products resold to members.

After considering each Application carefully, we have concluded that refunds are warranted for the purchase volumes and in the amounts set forth in the Appendix attached to the Decision.(1) We have reduced each applicant’s approved gallonage claim by the percentage of petroleum sales to non-members during the refund period. (2) The total volume for which refunds are approved in this Decision is 18,003,644 gallons and the sum of the refunds granted is $28,806.

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 claimants at the rate of $0.0016 per gallon. We will decide after the resolution of a few outstanding enforcement proceedings whether sufficient funds are available for additional refunds.

It Is Therefore Ordered That:

(1) The Applications for Refund filed by the claimants listed in the Appendix 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 Appendix to this Decision and Order from the DOE deposit fund escrow account maintained at the Department of the Treasury denominated Crude Tracking-Claimants IV, Account No. 999DOE010Z, to the applicants or their representatives listed in the Appendix. A refund check in the amount of $376 shall be sent to the representative of White Farmers Cooperative:

Energy Refunds, Inc.

31 Small Lane

Hardin, KY 42048

A refund check in the amount of $2,348 shall be sent to the representative of two of the applicants:

Wilson, Keller & Associates

P.O. Box 221145

Memphis, TN 38122

A check in the amount of $26,082 shall be sent to Glencoe Butter & Produce Association.

(3) 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 in its 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

(4) The determinations made in this Decision and Order are based upon the presumed validity of the statements and documentary material submitted by the applicants. This Decision and Order may be revoked or modified at any time upon a determination that the basis underlying the refund application is incorrect.

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

George B. Breznay

Director

Office of Hearings and Appeals

Date:September 11, 1998

(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)Following are the names of the cooperatives and in parentheses the percentages sold to non- members: White Farmers Cooperative, Case No. RF272-94687 (2%); Glencoe Butter and Produce Association, Case No. RF272-94698 (20%).

Appendix
CASE NO.APPLICANT CONTACTSTREET ADDRESSCITY/STATE VOLUMEREFUND
RF272-94116 HENNA CHEVROLET, INC.C/O TIM WARREN OR WILSON, KELLER & ASSOCIATESP.O. BOX 221145MEMPHIS, TN 38122 839,931 $1,344
RF272-94296 WILL & BAUMER CANDLE CO.C/O MARSHALL CICCONE OR WILSON, KELLER & ASSOCIATESP.O. BOX 221145MEMPHIS, TN 38122 627,397 $1,004
RF272-94687 WHITE FARMERS COOPERATIVEC/O DAVID GLOVER OR ENERGY REFUNDS, INC.31 SMALL LANEHARDIN, KY 42048 234,966 $376
RF272-94698 GLENCOE BUTTER & PRODUCE ASSN. 330 E. 10TH ST.GLENCOE, MN 55336 16,301,350 $26,082
Totals: 4       18,003,644 $28,806
             


Last Updated on 9/8/98
By OHA