October 30, 2003

DECISION AND ORDER

OF THE DEPARTMENT OF ENERGY

Motion for Reconsideration

Name of Petitioner: Amax Magnesium Company

Date of Filing: August 7, 2003

Case Number: RR272-00319

On July 8, 2003, the Office of Hearings and Appeals (OHA) of the Department of Energy (DOE) issued a Decision and Order denying a crude oil refund to Phelps Dodge Corporation (Phelps Dodge) on behalf of Amax Magnesium Company. Amax Magnesium Company, Case No. RF272-14118 (July 8, 2003) (Amax I). In Amax I, the DOE denied Phelps Dodge’s request for a refund based on purchases by Amax of 17,497,631 gallons of petroleum products because of a lack of supporting documentation or records. Phelps Dodge has subsequently been able to gather additional information and current petroleum product usage figures to support its gallonage claim on behalf of Amax. Consequently, we will now grant Phelps Dodge’s Motion for Reconsideration and approve a refund based upon Amax’s original gallonage claim of 17,497,631 gallons. At the current refund level of $0.0016 per gallon, Phelps Dodge, on behalf of Amax will be granted a refund of $27,996 (17,497,631 gallons x $0.0016 per gallon).

It Is Therefore Ordered That:

(1) The Motion for Reconsideration submitted by Phelps Dodge Corporation on behalf of Amax Magnesium Company on August 7, 2003 is hereby granted.

(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 $27,996 from the DOE deposit fund escrow account maintained at the Department of the Treasury denominated Crude Tracking-Claimants IV, Account No. 999DOE010Z, to “Phelps Dodge Corporation.” The check should be sent to the applicant’s representative at the following address:

Phelps Dodge Corporation

c/o Stephen K. Gardner, Esq.

McKenna & Cunneo, L.L.P.

1900 K Street, N.W.

Washington, DC 20006

(3) This is a final Order of the Department of Energy.

George B. Breznay

Director

Office of Hearings and Appeals

Date: October 30, 2003