Case No. RF272-89141
May 19, 2000
DECISION AND ORDER
OF THE DEPARTMENT OF ENERGY
Application for Refund
The Name of Petitioner: Las Vegas Tonopah Reno Stage, Inc.
Date of Filing: April 4, 1991
Case Number: RF272-89141
This Decision and Order will consider an Application for Refund filed by McMickle and Edwards (also known as Wilson, Keller & Associates (WKA), a private filing service, on behalf of Las Vegas Tonopah Reno Stage, Inc. (Las Vegas Tonopah), formerly located in Las Vegas, Nevada. Las Vegas Tonopah, a claimant that purchased refined petroleum products during the period August 19, 1973 through January 27, 1981, has requested a refund from crude oil monies available for disbursement by the Office of Hearings and Appeals (OHA) 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).
In order to receive a refund for crude oil overcharges, an applicant that was an end-user (i.e., consumer) of refined petroleum products must document its purchase volumes. City of Columbus, Georgia, 16 DOE ¶ 85,550 (1987). Each applicant's refund share is calculated using the current refund amount of $0.0016 per gallon.
Las Vegas Tonopah requests a refund for 3,288,517 gallons of petroleum products which it purchased during the crude oil refund period. We have reviewed the information submitted by Las Vegas Tonopah and have determined that Las Vegas Tonopah was an end-user of petroleum products.(1) Las Vegas Tonopah has demonstrated the
volume of its claim by consulting reports filed with the Interstate Commerce Commission (ICC) reports. Consequently, we find that Las Vegas Tonopah is eligible for a refund based on a total volume of 3,288,517 gallons of petroleum products. Las Vegas Tonopah would therefore be entitled to a refund of $5,262.
In the application, WKA stated that the firm was involved in a bankruptcy proceeding, and the proceeding closed on July 9, 1998. Refund Application at 1 (Case No. RF272-89141). On February 15, 2000, this Office contacted the Trustee for the Las Vegas Tonopah Reno Stage, Inc., and inquired as to whether or not he would be interested in pursuing this claim. On February 25, 2000, this Office received a letter from Mr. Tom Grimmett, the Trustee, indicating that he was not aware of the Application for Refund filed on behalf of the Debtor by McMickle & Edwards, and that he was interested in the recovery of any assets. Mr. Grimmett also requested that any refund be sent to him. See Letter from Tom Grimmett, Trustee in Bankruptcy, Las Vegas Tonopah to OHA (February 21, 2000).
In cases in which a refund applicant is in bankruptcy, we have generally determined that the restitutionary purposes of the refund process are served by disbursing the refund to the trustee for appropriate distribution in accordance with the instructions of the bankruptcy court. See e.g., Murphy Oil Corp./Energy Cooperative, Inc., 23 DOE ¶ 85,104 at 88,271 (1993) (the OHA has recognized the court-appointed bankruptcy trustee, not the individual creditors, as the appropriate recipient of the refund); see also Atlantic Richfield Co./Mid Continent Systems, Inc., 21 DOE ¶ 85,424 (1991). Because the trustee is the appropriate person to receive the refund in such cases, we have directed that the refund be sent to the trustee even when he has not filed a formal Application for Refund. See, e.g., Shell Oil Co., Case No. RF315-5538 (December 16, 1992) (unpublished Decision). Thus, we will disburse Las Vegas Tonopahs refund to its bankruptcy trustee. Since these funds will then fall within the jurisdiction of the bankruptcy court, it is that court that will have the responsibility for determining the ultimate disposition of these funds.
The deadline for the crude oil proceeding, June 30, 1995, has passed. 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 Application for Refund filed on behalf of Las Vegas Tonopah Reno Stage, Inc., Case No. RF272-89141, 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 $5,262 from the DOE deposit fund escrow account maintained at the Department of the Treasury denominated Crude Tracking-Claimants 4, Account No. 999DOE010Z, to:
Las Vegas Tonopah Reno Stage, Inc.
c/o Tom Grimmett
U.S. Bankruptcy Trustee
1455 E. Tropicana, Suite 490
Las Vegas, NV 89119
(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
1000 Independence Avenue, S.W.
Washington, D.C. 20585-0107
(4) The determination made in this Decision and Order is based on the presumed validity of the statements and documentary material submitted by the applicant. This determination may be revoked or modified at any time upon a finding that the basis underlying this Decision and Order is incorrect.
(5) This is a final Order of the Department of Energy.
George B. Breznay
Director
Office of Hearings and Appeals
Date: May 19, 2000
(1)Interested parties were given an opportunity to submit comments regarding individual crude oil refund applications. No such comments were filed with respect to the applicant involved in this determination.