Case No. RF272-81162

September 20, 2001

DECISION AND ORDER

OF THE DEPARTMENT OF ENERGY

Applications for Refund

Names of Petitioner: Battle Creek Farmers Cooperative

Dates of Filings: August 31, 1990

Case Numbers: RF272-81162

This Decision and Order considers and ultimately grants the Application for Refund, releasing a total of $11,298 in the Subpart V crude oil refund proceeding, that was filed on behalf of Battle Creek Farmers Cooperative (the Applicant). The Applicant 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 (DOE) pursuant to the Statement of Modified Restitutionary Policy in Crude Oil Cases, 51 Fed. Reg. 27899 (August 4, 1986). The Applicant relies on the presumption of injury for end-users as the basis for its refund claim. Under this presumption, OHA will presume applicants were injured if they were end-users of petroleum products and were not covered by the DOE or its predecessors’ price controls. City of Columbus, Georgia, 16 DOE ¶ 85,550 (1987).

We have reviewed the information submitted by the Applicant and determined that it was an end- user of eligible petroleum products. The Applicant, an agricultural cooperative, derived its purchase volume claim by consulting actual records or by using reasonable estimation techniques. The application is based on petroleum products that the cooperative purchased for resale to the farmers who were its members. We regard a refund application filed by a cooperative that resold petroleum products to its members as a claim filed on behalf of the members themselves. Farmers Union Oil Co., 17 DOE ¶ 85,464 (1988). A cooperative can thus claim the presumption of end-user injury to the extent that its members were end-users. The cooperative has certified that it will pass through any refund received to its members. Consequently, on this basis we will grant a refund to the cooperative based on products resold to members.

After considering the Application carefully, we have concluded that a refund is warranted for the purchase volume. The total volume for which the refund is approved in this Decision is 7,061,536 gallons and the sum of the refund granted is $11,298.

The final deadline for the crude oil proceeding was June 30, 1995. 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 refund.

It Is Therefore Ordered That:

(1) The Application for Refund filed by the claimant named in this Decision and Order for all available crude oil overcharge funds are 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 the refund amount set forth in this Decision and Order from the DOE deposit fund escrow account maintained at the Department of the Treasury denominated Crude Tracking-Claimants IV, Account No. 999DOE010Z, to the applicants named this Decision and Order. A refund check in the sum of $11,298 shall be sent to:

Bryan Daum

Battle Creek Farmers Cooperative

P.O. Box 10

400 West Front Street

Battle Creek, Nebraska 68715

(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 in its 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 determinations made in this Decision and Order are based upon the presumed validity of the statements and documentary material submitted by the applicant. This Decision and Order may be revoked or modified at any time upon a determination that the basis underlying a 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: September 20, 2001