March 17, 2004

DECISION AND ORDER

OF THE DEPARTMENT OF ENERGY

Supplemental Order

Names of Petitioners: Enron Corporation/

Amoco Corporation, et al.

Date of Filings: December 2, 2003

Case Numbers: RR340-00009, et al.

Beginning in early 1999, the Office of Hearings and Appeals (OHA) made fifty percent partial payments to five large refined product refund applicants in the Enron Corporation (Enron) refined product refund proceeding. These partial payments were based on a finding that available refund moneys were limited as a result of Congressional revocation of portions of the Petroleum Overcharge and Restitution Act of 1986 (PODRA). The purpose of this Supplemental Order is to consider whether full payment of these refund claims is now warranted.

The Interior and Related Agencies Appropriations Act for FY 1999 amended certain provisions of the PODRA. These amendments extinguished rights that refund applicants had under PODRA to refunds for overcharges on the purchase of refined petroleum products. They also identified and appropriated a substantial portion of the funds being held by the DOE to pay refund claims. Congress specified that these funds were to be used to fund other DOE programs. As a result, the petroleum overcharge escrow accounts in the refined product area contained substantially less money than before. In fact, they may not have contained sufficient funds to pay in full all pending refund claims (including those in litigation) if they should all be found meritorious. Congress directed DOE to "assure that the amount remaining in escrow to satisfy refined petroleum product claims for direct restitution is allocated equitably among all claimants." In Enron Corp./Phillips Petroleum Company (Case No. RF340-163), 27 DOE ¶ 85,024 at 88,165 (1999)(Enron/Phillips), the OHA found that in view of this Congressional directive and the limited amount of funds available, it might become necessary to prorate the funds available among the meritorious claims. However, the OHA also found that it would be some time before the OHA could know the full value of the meritorious claims and the precise, total amount available for distribution to each claimant. Id.

The OHA therefore determined that it would be equitable to pay the remaining small claims (less than 250) in full. To require small claimants to wait several more years for their refunds would constitute an inordinate burden and be inequitable. Cf. Atlantic Richfield Co./Major Oil, Inc., 26 DOE ¶ 85,068 at 88,195 (1997) ("The principal purpose of the presumptions of injury . . . is to reduce the burden on small claimants.").

However, with respect to certain large refund claimants, the OHA found that full payment of the refund could well have a substantial impact on the ability of the OHA to make payments to other remaining claimants who are seeking large refund claims. Until other large claims were resolved, the OHA determined to limit the current large refund payment to fifty percent of the total approved refund (principal and interest). Enron/Phillips, 27 DOE at 88,165, see also Atlantic Richfield Co./Oil Transit, Inc., et al. (Case No. RR304-0044), 27 DOE ¶ 85,026 at 88,188 (1999). Pursuant to this holding, fifty percent refunds totaling $1,040,314 in principal and interest were paid out to Enron refund applicants in the following five refund cases:

(1) Enron Corp./Amoco Corp. (Case No. RR340-00002), $305,757;

(2) Enron Corp./Phillips Petroleum Company (Case No. RF340- 00163), $148,864;

(3) Enron Corp./Sheila S. Brown (Case No. RF340-00016), $165,207;

(4) Enron Corp./Richardson Products Co., Ltd. (Case No. RF340-00171), $255,279; and

(5) Enron Corp./David A. Stillings (Case No. RF340-00204), $165,206.

The OHA stated that once other pending refund claims had been resolved, the remainder of these large refunds would be paid to the extent possible through an equitable distribution of the funds remaining in the petroleum overcharge escrow accounts. Enron/Phillips, 27 DOE at 88,165. The OHA has now determined that sufficient funds remain in the refined product refund pool to pay out the remaining portions of these claims. Accordingly, this Supplemental Order provides for the full payment of these five Enron refined product refunds previously granted by the OHA, based on the same amounts previously granted to those firms.

It is OHA policy to pay accrued interest on refined product refund payments whenever possible. Accordingly, the applicants will receive additional payments, designated as interest, which approximate the interest that has accrued on the unpaid portions of these refunds from April 1998 until the present.

It Is Therefore Ordered That:

(1) A Supplemental Refund hereby is granted to Amoco Corporation in the Enron Corporation Refund Proceeding (RR340-00009). The Director of Special Accounts and Payroll, Office of the Controller, of the Department of Energy shall take appropriate action to disburse a total of $379,005 ($305,757 principal plus $73,248 interest) from the DOE deposit fund escrow account maintained at the Department of the Treasury titled “Product Tracking - Claimants,” Account No. 999DOE035Z, to “BP Corporation North America, Inc.” (fka Amoco Corporation) according to the instructions submitted by the firm on its “ACH Vendor Payment System Payment Information Form.”

(2) A Supplemental Refund hereby is granted to Phillips Petroleum Company (Case No. RR340-00010) in the Enron Corporation refund proceeding. The Director of Special Accounts and Payroll, Office of the Controller, of the Department of Energy shall take appropriate action to disburse a total of $184,526 ($148,864 principal plus $35,662 interest) from the DOE deposit fund escrow account maintained at the Department of the Treasury titled “Product Tracking - Claimants,” Account No. 999DOE035Z, to “ConocoPhillips Company” according to the instructions submitted by the firm on its “ACH Vendor Payment System Information Form.”

(3) A Supplemental Refund hereby is granted to Sheila S. Brown (Case No. RR340-00011) in the Enron Corporation refund proceeding. The Director of Special Accounts and Payroll, Office of the Controller, of the Department of Energy shall take appropriate action to disburse a total of $204,784 ($165,207 principal plus $39,577 interest) from the DOE deposit fund escrow account maintained at the Department of the Treasury titled “Product Tracking - Claimants,” Account No. 999DOE035Z, to “Ms. Sheila S. Brown” (fifty percent shareholder of Stillings Petroleum Corporation at the time of its dissolution) according to the instructions submitted by her counsel, Lloyd K. Holtz, Attorney at Law, on his “ACH Vendor Payment System Information Form.”

(4) A Supplemental Refund hereby is granted to Richardson Products Company, Ltd. in the Enron Corporation refund proceeding (Case No. RR340-00012). The Director of Special Accounts and Payroll, Office of the Controller, of the Department of Energy shall take appropriate action to disburse a total of $316,434 ($255,279 principal plus $61,155 interest) from the DOE deposit fund escrow account maintained at the Department of the Treasury titled “Product Tracking - Claimants,” Account No. 999DOE035Z to “Richardson Energy Marketing, Ltd.” according to the instructions submitted by the firm on its “ACH Vendor Payment System Information Form.”

(5) A Supplemental Refund hereby is granted to David A Stillings (Case No. RR340-00013) in the Enron Corporation refund proceeding. The Director of Special Accounts and Payroll, Office of the Controller, of the Department of Energy shall take appropriate action to disburse a total of $204,783 ($165,206 principal and $39,577 interest) from the DOE deposit fund escrow account maintained at the Department of the Treasury titled “Product Tracking - Claimants,” Account No. 999DOE035Z, to “Mr. David A. Stillings” (fifty percent shareholder of Stillings Petroleum Corporation at the time of its dissolution) according to the instructions submitted by his counsel, Lloyd K. Holtz, Attorney at Law, on his “ACH Vendor Payment System Information Form.”

(6) The determinations made in this Decision and Order are based on the presumed validity of the statements and documentary material submitted by the applicant. Any of those determinations may be revoked or modified at any time upon a determination that the factual bases underlying these Supplemental Refunds are incorrect.

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

George B. Breznay

Director

Office of Hearings and Appeals

Date: March 17, 2004