Case No. RF272-93953
February 11, 1998
DECISION AND ORDER
OF THE DEPARTMENT OF ENERGY
Application for Refund
Name of Applicant:Brewer Products, Inc.
Date of Filing: November 9, 1992
Case Number: RF272-93953
This Decision and Order will consider the Application for Refund filed by Brewer Products, Inc. (Brewer). The Application is based upon Brewer's purchases of refined petroleum products during the crude oil price control period (August 19, 1973 through January 27, 1981). Brewer 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 Brewer has submitted and determined that it was an end-user of refined petroleum products. On the basis of the documentation Brewer has provided, we have also determined that it purchased 4,898,120 gallons of asphalt cement during the price control period, which it used in the manufacturing of asphalt concrete and asphalt sealant. 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. Brewer has informed us, however, that approximately ten percent of the volume of its sales were covered by contracts that contained escalator clauses, which permitted Brewer to pass through to its customers increases in the cost of the petroleum products it purchased. Consequently, we will reduce the size of the claim by ten percent, or 489,812 gallons. The total volume for which a refund is approved in this Decision is 4,408,308 gallons, and the refund granted is $7,053.
It Is Therefore Ordered That:
(1) The Application for Refund filed by Brewer Products, Inc., 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 Brewer Products, Inc., $7,053 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:
Brewer Products, Inc.
P.O. Box 43130
Cincinnati, OH 45243
(4) To facilitate the payment of future refunds, Brewer Products, Inc., 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 Brewer Products, Inc., 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: February 11, 1998