Case No. RF272-52229

June 22, 2000

DECISION AND ORDER

OF THE DEPARTMENT OF ENERGY

Application for Refund

Name of Petitioner:Huntsman Corporation

Dates of Filings: March 25, 1988

Case Numbers: RF272-52229

This Decision and Order grants an Application for Refund filed by Huntsman Corporation (Huntsman). Huntsman purchased refined petroleum products during the period August 19, 1973, through January 27, 1981, and has requested a refund from crude oil monies available for disbursement by the Office of Hearings and Appeals of the Department of Energy pursuant to the Statement of Modified Restitutionary Policy In Crude Oil Cases, 51 Fed. Reg. 27899 (August 4, 1986) (SMRP).

In the past, purchasers of refined petroleum products could apply for refund from crude oil overcharge funds collected by the DOE from firms that sold crude oil during the price control period. Id.; 10 C.F.R. Part 205. The Office of Hearings and Appeals has established refund procedures for these funds. E.g., Barry Holding Co., 16 DOE ¶ 85,405 (1987); A. Tarricone, Inc., 15 DOE ¶ 85,495 (1987).

In general, the refund procedures, adopted in the SMRP, presume applicants--such as Huntsman--were injured if they were end-users of petroleum products and were not covered by the DOE’s or its predecessors’ price controls. City of Columbus, Georgia, 16 DOE ¶ 85,550 (1987). In this case, a group of States have filed Objections to the Huntsman's refund Application. The States assert that Huntsman passed through the overcharges to its customers and an showing of injury is not burdensome to large claimants.

The States’ comments have been considered and rejected in the past. We have found that chemical companies are eligible to receive a refund in this proceeding. Great Salt Lake Minerals & Chemicals Corporation, 23 DOE ¶ 85,118 (1993). Finally, without substantiation, the allegation that Huntsman was able to pass through the crude oil overcharges is insufficient to rebut the end-user injury presumption. Id. at 88,305-06.

Huntsman used gasoline, diesel fuel, motor oil, butane, benzene, aviation fuel, and propane in its manufacture and sale of petrochemicals. We have carefully reviewed the Application filed by Huntsman. Huntsman is an end-user of refined petroleum products. Huntsman claims, based upon usage records, that it purchased 2,244,789,215 gallons of

petroleum products. After considering the Application, we have concluded that the claimed volume is accurate, and a refund of $3,591,485 is warranted ($0.0016 x 2,244,678,215 = $3,591,485). It is the policy of the DOE to pay all crude oil refund claims that were filed by June 30, 1995, the final deadline for the crude oil proceeding, at the rate of $.0016 per gallon. We will decide whether sufficient crude oil overcharge funds are available for additional refunds for these and other successful applicants at a later date.

It Is Therefore Ordered That:

(1)The Application for Refund filed by Huntsman Corporation, Case No. RF272-52229, is 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 a total of $3,591,485 from the DOE deposit fund escrow account denominated Crude Tracking - Claimants 4, Account Number 999DOE010Z, maintained at the Department of the Treasury. The check should be made payable to “El Paso Products Co or Huntsman Corporation.” and shall be sent to:

Huntsman Corporation

Attn: Mr. Todd Zagorec

500 Huntsman Way

Salt Lake City, UT 84108

(3)To facilitate the payment of future refunds, the Applicant 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

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 materials submitted by the Applicant. These determinations may be revoked or modified at any time upon a finding that the basis underlying this 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: June 22, 2000