Case No. RF304-14663
October 15, 1998
DECISION AND ORDER
OF THE DEPARTMENT OF ENERGY
Applications for Refund
Names of Petitioners:Atlantic Richfield Company/
Mikes Fuel Oil, et al.
Dates of Filings: October 6, 1993 , et al.
Case Numbers: RF304-14663 , et al.
This Decision and Order considers and grants 24 Applicants refunds from the monies that the Atlantic Richfield Company (ARCO) remitted to the Department of Energy. Under the terms of a June 27, 1985 Consent Order entered into between the DOE and ARCO, ARCO remitted $46,387,976, plus accrued interest to the DOE. The Consent Order settled, except for certain matters specifically excluded, all claims regarding ARCO's compliance with the Federal Petroleum Price and Allocation Regulations during the period January 1, 1973, through January 27, 1981 (the consent order period). On January 28, 1988, the Office of Hearings and Appeals of the DOE instituted special refund procedures for the distribution of those funds. Atlantic Richfield Co., 17 DOE ¶ 85,069 (1988) (ARCO).(1) The special refund procedures allow purchasers of ARCO products which were regulated during the period of price controls (e.g., motor gasoline, propane, middle distillates, and natural gas liquid products) to file Applications for Refund from the ARCO consent order fund. Refunds can be sought only for regulated products purchased between March 6, 1973, and January 27, 1981, the end of the period of petroleum price controls. See id. at 88,143 n.5.
I. Background
Evaluating applications in this proceeding involves both an allocation of an appropriate portion of the consent order fund to each applicant and an evaluation of economic harm or injury suffered by that applicant. Id. at 88,151; see Sid Richardson Carbon & Gasoline Co., 12 DOE ¶ 85,054 (1984). To determine the portion of the fund to be allocated to each claimant, we assume that any overcharges were distributed equally over every gallon of regulated products sold by ARCO during the consent order period and allocated the consent order monies accordingly, i.e., by dividing the value of the fund by ARCO's total sales of covered products during the period. ARCO at 88,151. This calculation produces a "volumetric factor" of $0.000735 per gallon. When that factor is multiplied by an applicant's total eligible purchases, the result is a claimant's allocable share of the consent order fund. Unless an applicant demonstrates that it was disproportionately affected by ARCO's alleged practices, it cannot receive a refund greater than this allocable share of the consent order fund. Id. at 88,151.
Resellers and retailers claiming refunds of less than $5,000 in principal, those who have elected to limit their refunds to $5,000, and end users are presumed to have been injured by ARCO's alleged overcharges and are not required to submit a detailed showing of injury. Mid-level resellers and retailers whose full volumetric refunds exceed $12,193 may receive 41 percent of their full volumetric share up to $50,000 without providing detailed demonstrations of economic injury. Id. at 88,151-12. To qualify for a refund, such an applicant must submit evidence of its volume of purchases of ARCO products during the consent order period.
II. Analysis
All of the applicants listed in the Appendix to this Decision and Order are either end-users or resellers and retailers that have claimed refunds of less than $5,000 (principal amount), or are mid-level resellers who have elected to limit their refunds to the greater of $5,000 or 41 percent of their volumetric share. Each applicant has submitted satisfactory proof of its volume of purchases during the refund period.
We have reviewed these applications and have found them meritorious. Accordingly, we find that each of the firms listed in the Appendix should receive a refund from the ARCO consent order fund. In addition, each firm will receive a proportionate share of the interest accrued on the consent order funds. The purchases that form the basis for the refunds granted in this Decision total 27,250,912 gallons. The sum of the refunds approved in this Decision is $43,994, representing $20,031 in principal and $23,963 in interest.
Although we have carefully examined each applicant's claim and supporting data, the determinations reached in this Decision are based on the representations made in the applications. If the factual basis underlying any of our determinations in this Decision is later shown to be inaccurate, this Office has the authority to order appropriate remedial action, including rescission or reduction of the refunds ordered.
It Is Therefore Ordered That:
(1) The 24 Applications for Refund specified in the Appendix to this Decision and Order are 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 from the DOE deposit fund escrow account maintained at the Department of Treasury and funded by Atlantic Richfield Company, (Consent Order No. RARH00001Z) the amounts listed in the Appendix to the appropriate claimants. For each applicant, the checks shall be made payable to the Applicant and shall be sent to the address listed on the Appendix.
(3) The determinations made in this Decision and Order are based upon the presumed validity of statements and documentary material submitted by the applicants. The determinations may be revoked or modified at any time upon a finding that the factual basis underlying any of the Applications for Refund is incorrect.
(4) This is a final Order of the Department of Energy.
George B. Breznay
Director
Office of Hearings and Appeals
Date:October 15, 1998
(1)ARCO remitted a total of $68,035,516 to the DOE, of which $21,647,540 was associated with ARCO's alleged violations in the sale of crude oil. Those monies are being distributed in accordance with the crude oil refund procedures adopted in ARCO, 17 DOE at 88,150.
APPENDIX
CASE NO. APPLICANT CONTACT STREET CITY/STATE VOLUME PRINCIPAL INTEREST REFUND RF304-14663 MIKE'S FUEL OIL CO. OR MIKE CAMELLINO 4510 STONE GATE LN. RENO, NV 89503 901,525 $663 $793 $1,456 RF304-14764 F & W ARCO OR ROBERT MARINUCCI 304 EDEN MILLS RD. SARASOTA, FL 34237 525,614 $386 $462 $848 RF304-14884 RICH'S ARCO OR RICHARD W. SAYELL 1945 N.E. BLVD. VINELAND, NJ 08360 545,470 $401 $480 $881 RF304-14885 GLENSIDE FOREIGN MOTORS, INC. OR REMO DILELLO 323 GRAVEL HILL RD. HUNTINGDON VALLEY, PA 19006 244,937 $180 $215 $395 RF304-14886 NORM'S ARCO OR PAUL BISSON 8273 60TH RD. BALDWINSVILLE, NY 13027 280,094 $206 $246 $452 RF304-14887 MERLE FRANCE SERVICE OR MERLE O. FRANCE 5774 LEISURE DR. S.E. GRAND RAPIDS, MI 49548 350,451 $258 $309 $567 RF304-14888 PETRI'S ARCO SERVICE OR MANFRED A. PETRI 6910 BLUE RIDGE DR. RICHMOND, TX 77469 236,719 $174 $208 $382 RF304-14889 MARTY'S ARCO OR MRS. MARTIN G. LEWIS 1656 BIEBEL AVE. ERIE, PA 16509 278,200 $204 $244 $448 RF304-14890 LOU'S ARCO SERVICE OR LOUIS F. TRAPASSO 684 RIDGE RD. LEWISTON, NY 14092 881,711 $648 $775 $1,423 RF304-14891 PERSHING ARCO OR LEWIS K. BAICK 13101 FOXDEN DR. ROCKVILLE, MD 20850 227,300 $167 $200 $367 RF304-14893 HAWKINS ARCO SERVICE CENTER OR I. HERBERT HAWKINS RT. 4, BOX 370 FAIRMONT, WV 26554 386,529 $284 $340 $624 RF304-14895 JAMES M. NAYE, INC. C/O DAVID DARLEY P.O. BOX 498 NEW TOWN SQUARE, PA 19073 617,169 $454 $543 $997 RF304-14897 HARRY'S ARCO OR HARJ O. KALAMIAN 2307 W. 231 ST. TORRANCE, CA 90501 488,491 $359 $429 $788 RF304-15012 SUEDALA INDUSTRIES C/O BOB GENNERIA 350 RAILROAD ST. DANVILLE, PA 178212046 1,784,906 $1,312 $1,570 $2,882 RF304-15052 LLOYD'S ARCO OR LLOYD L. FLETCHER 1023 N. SHACKLEFORD RD. LITTLE ROCK, AR 72211 2,850,000 $2,095 $2,506 $4,601 RF304-15072 OLYMPIC ARCO OR GEORGE ANASTASAKIS P.O. BOX 134 BETHEL, CT 08801 1,888,180 $1,388 $1,660 $3,048 RF304-15074 RONNIE'S AUTOMOTIVE OR RONALD J. MCNULTY 626 BOSTON ST. BILLERICA, MA 01821 1,641,081 $1,206 $1,443 $2,649 RF304-15408 ROBERT SPRING'S ARCO OR ROBERT A. SPRING 8 STUYVESANT DR. HOCKESSIN, DE 19707 282,365 $208 $249 $457 RF304-15412 INDUSTRIAL GENERATING C/O ROBERT AUSTIN OR TEXAS UTILITIES MINING CO. 1601 BRYAN ST. DALLAS, TX 75201 2,131,490 $1,567 $1,875 $3,442 RF304-15421 LUCIA'S ATLANTIC SERVICE OR ANDREW LUCIA 34 WINDING LANE SPRINGFIELD, MA 01118 297,593 $219 $262 $481 RF304-15424 SOUTH TEXAS L.P. GAS CO. C/O CLIFFORD PONTON 417 CHASE DR. CORPUS CHRISTI, TX 78412 302,072 $222 $266 $488 RF304-15428 KING GAS PRODUCTS, INC. OR LAKES GAS CO. P.O. BOX 400 FOREST LAKE, MN 55025 4,526,835 $3,327 $3,980 $7,307 RF304-15504 M&M MINI MARKET C/O MATHEW LINDSAY 3401 NOTTINGHAM RD. OCEAN SPRINGS, MS 39564 1,233,684 $907 $1,085 $1,992 RF304-15514 ISABELLE LORRAH & PATRICIA LORRAH-KENT 10581 WAKEFIELD ST. ADELANTO, CA 92301 4,348,496 $3,196 $3,823 $7,019 TOTALS: 24 27,250,912 $20,031 $23,963 $43,994
Last Updated on 10/15/98
By OHA