Case No. RK272-04123
August 7, 2001
DECISION AND ORDER
OF THE DEPARTMENT OF ENERGY
Supplemental Order
Name of Petitioner: I.C. King Trucking, Inc.
Date of Filing: January 23, 1997
Case Number: RK272-04123
Pursuant to the long-standing policy of the Department of Energy (DOE), thousands of purchasers of petroleum products have applied for, and been granted, refunds from crude oil overcharge funds under jurisdiction of the DOE's Office of Hearings and Appeals (OHA). See Statement of Modified Restitutionary Policy To Be Implemented In Crude Oil Cases, 51 Fed. Reg. 27899 (August 4, 1986). The standards for considering Applications for Refund from these crude oil funds are set forth at 10 C.F.R. Part 205, Subpart V.
The OHA has approved more than 87,000 requests for refund from the pool of crude oil overcharge funds. In Subpart V crude oil refund cases, a claimant is generally eligible for a refund equal to the number of gallons of eligible refined petroleum products it purchased during the period from August 19, 1973 through January 27, 1981, multiplied by a per gallon amount. That per gallon refund amount is derived by dividing the total refund monies available by the total U.S. consumption of petroleum products during the crude oil price control period. Refunds had been calculated by multiplying the number of gallons of eligible refined petroleum products purchased by the applicant by $0.0008 (the volumetric factor). That volumetric factor had been in use since April 1989, when it replaced an earlier volumetric factor of $0.0002 per gallon. Any applicant who received a refund at the lower volumetric factor has also received a supplemental refund based on an additional $0.0006 per gallon. See Crude Oil Supplemental Refund Distribution, 18 DOE ¶ 85,878 (1989).
Additional crude oil overcharge funds have become available for disbursement and we can now issue additional refund checks to
applicants. Sufficient funds are available to pay applicants at a new, aggregate rate of $0.0016 per gallon.(1) Thus, the amount of the supplemental refund will be equal to the refund already received. Refunds are rounded to the nearest dollar.
In order to receive a supplemental refund check, applicants are being required to verify (directly or through their representatives) that their name and address in our records are correct, to correct any information that is not accurate, and to indicate whether there has been any change in circumstances affecting the payment of the refund. We intend to issue a series of Decision and Orders approving supplemental refunds as we receive completed verification forms from all applicants or certifications from their representatives.
Normally, the Applicant in this case, Ms. Joann King, the former owner of I.C. King Trucking, would be eligible for a $961 supplemental refund on behalf of the firm. However, in her verification form, Ms. King indicated that the firm was involved in a bankruptcy proceeding, and submitted documents relating to that bankruptcy. We contacted the Bankruptcy Trustee who informed us that the bankruptcy case had closed, but the Internal Revenue Service had filed a claim in the bankruptcy. This office then contacted Mr. John A. Dietrich, a Revenue Officer, informing him of I.C. King Truckings refund claim. Subsequently, in a letter dated March 30, 2001, Mr. Dietrich stated that he would be filing an administrative notice to Ms. King, and would issue a Notice of Levy.
On June 22, 2001, the IRS filed with the OHA a Notice of Levy against funds in the DOEs possession which are owed to I.C. King Trucking. According to the Notice, it appears that I.C. King Trucking owes the IRS for federal taxes for the years 1986 and 1987. The Notice of Levy makes a demand that the OHA pay to the IRS the sum which is owed to I.C. King. In this instance, the refund amount for which I.C. King qualifies is smaller than the amount of taxes owed. Accordingly, we shall direct that the entire $961 refund owed to I.C. King be remitted to the IRS. See Amtel, Whitco, Inc., 19 DOE ¶ 85,319 (1989); Wallace & Wallace Oil Co./Carib Oil Co., 14 DOE ¶ 85,383 (1986). Under 26 U.S.C. § 6332(e), this payment to the IRS discharges the DOE from any obligation which it otherwise might have to I.C. King Trucking with respect to the amount in question. The total amount of the additional refund approved in this Order is $961.
It Is Therefore Ordered That:
(1) 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 supplemental refund in the amount of $961 to:
Internal Revenue Service
Collection Division
c/o John Dietrich
1415 Directors Row Suite 1B
Ft. Wayne, IN 46897-0853
(2) The funds shall be disbursed from the escrow fund denominated Crude Tracking-Claimants IV, Account No. 999DOE010Z, maintained at the Department of the Treasury.
(3) To facilitate the payment of future refunds, an 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) This is a final Order of the Department of Energy.
George B. Breznay
Director
Office of Hearings and Appeals
Date: August 7, 2001
(1)We are now paying first-time crude oil refund recipients at the volumetric rate of $0.0016 per gallon.