Case No. RF272-80896
July 16, 1998
DECISION AND ORDER
OF THE DEPARTMENT OF ENERGY
Applications for Refund
Names of Petitioners: Indian River Transport, Inc.
Luppes Transport Co., Inc.
Aime Bellavance & Sons, Inc.
Dates of Filing: August 27, 1990
August 27, 1990
October 19, 1990
Case Numbers: RF272-80896
RF272-80899
RF272-83150
This Decision and Order will consider Applications for Refund that were submitted by Indian River Transport, Inc., Luppes Transport Co., Inc. and Aime Bellavance & Sons, Inc., purchasers of refined petroleum products during the period August 19, 1973, through January 27, 1981 (the crude oil price control period). These applicants have requested refunds from crude oil monies available for disbursement by the Office of Hearings and Appeals (OHA) of the Department of Energy (DOE) pursuant to the OHA's authority under 10 C.F.R. Part 205, Subpart V.
This refund proceeding was instituted to allow purchasers of refined petroleum products during the price control period to apply to the OHA for a refund from crude oil overcharge funds collected by the DOE. Statement of Modified Restitutionary Policy in Crude Oil Cases, 51 Fed. Reg. 27899 (August 4, 1986). We established refund procedures for these funds, which have been made available through consent orders entered into by the DOE and numerous firms that sold crude oil during the crude oil 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 set forth in these cases 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. However, as we discussed in City of Columbus, Georgia, 16 DOE ¶ 85,550 (1987), applicants who were end- users of petroleum products and whose businesses were not covered by the DOE's or its predecessors' price controls are presumed to have been injured.
Generally, a claimant is eligible for a refund equal to the number of gallons it purchased multiplied by $0.0016. We derived this volumetric refund amount by dividing the total crude oil refund monies currently available by the total U.S. consumption of petroleum products during the period of crude oil price controls (2,020,997,335,000 gallons).
Each of the claimants has submitted all of the information required of crude oil applicants.(1) Specifically, they have all submitted actual or estimated volume claims, and documentation for those claims. We have thoroughly examined the information submitted, and we conclude that the estimation techniques used are reasonable and that the volumes claimed reflect accurately the applicants purchases. We will therefore approve the applicants gallonage claims.
The claimants purchased their refined petroleum products for use in businesses that are unrelated to the petroleum industry and did not resell those products. They are therefore end-users of refined petroleum products and are presumed to have been injured by the crude oil overcharges. Accordingly, the claimants are entitled to receive their full allocable shares of the crude oil monies. Indian River Transport, Inc. will receive a refund of $25,970 (16,231,400 gallons x $0.0016), Luppes Transport Co., Inc. will receive a refund of $2,928 (1,830,227 gallons x $0.0016), and Aime Bellavance & Sons Inc.s refund will be $2,540 (1,587,776 gallons x $0.0016).
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 crude oil 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 Indian River Transport, Inc. (case no. RF272-80896), Luppes Transport Co., Inc. (case no. RF272-80899) and Aime Bellavance & Sons Inc. (case no. RF272-83150) 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 $25,970 to Indian River Transport, Inc., $2,928 to Luppes Transport Co., Inc. and $2,540 to Aime Bellavance & Sons Inc. from the DOE deposit fund escrow account denominated Crude Tracking - Claimants 4, Account Number 999DOE010Z, maintained at the Department of the Treasury. The refund checks shall be made payable to [Applicants Name] or McMickle & Edwards, and shall be sent to the following address: McMickle & Edwards, P.O. Box 221145, Memphis, TN, 38122.
(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 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
(4) The determinations made in this Decision and Order are based upon the presumed validity of the statements and documentary materials submitted by the applicants. These determinations may be revoked or modified at any time upon a finding that the basis underlying any 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: July 16, 1998
(1) Interested parties were provided with an opportunity to submit comments regarding individual crude oil refund applications. No such comments were filed with respect to the applications considered in this Decision.