Case No. RC272-00383

April 10, 1998

DECISION AND ORDER

OF THE DEPARTMENT OF ENERGY

Supplemental Order

Names of Applicants: Steele County

Eddy County

Towner County

Slope County

Bowman County, North Dakota

North Dakota Association of Counties

Steele County

Eddy County

Towner County

Slope County

North Dakota Association of Counties

Date of Filing: March 20, 1998

March 20, 1998

March 20, 1998

March 20, 1998

March 20, 1998

April 7, 1998

March 20, 1998

March 20, 1998

March 20, 1998

March 20, 1998

April 7, 1998

Case Numbers: RC272-00383

RC272-00384

RC272-00385

RC272-00386

RC272-00387

RC272-00388

RJ272-00055

RJ272-00056

RJ272-00057

RJ272-00058

RJ272-00059

This Supplemental Order will prevent five North Dakota counties from receiving any further refunds in the Subpart V crude oil refund proceeding. Each county has received two sets of refunds

based on duplicate Applications for Refund. The five counties received their refunds as follows.

Steele County

On August 16, 1988, the Office of Hearings and Appeals (OHA) of the Department of Energy (DOE) issued a Decision and Order granting a refund to Steele County (Steele) in the Subpart V crude oil refund proceeding. Richard Kretzer, 17 DOE ¶ 85,699 (1988) (Case No. RF272-08744). Steele was granted a $69 refund based on purchases of 345,109 gallons of refined petroleum products between August 19, 1973, and January 27, 1981 (the crude oil price control period). Steele was later granted a supplemental refund of $207. Crude Oil Supplemental Refund Distribution, Case No. RA272-00002, 18 DOE ¶ 85,878 (1989). Steele was also granted a second supplemental refund of $276. Crude Oil Supplemental Refund Distribution, Case No. RB272-00020 (July 25, 1995) (unpub. decision).

Eddy County

On September 19, 1988, the OHA issued a Decision and Order granting a refund to Eddy County (Eddy) in the Subpart V crude oil refund proceeding. Glenn Pomerenke, 17 DOE ¶ 85,778 (1988) (Case No. RF272-11464). Eddy was granted a $58 refund based on purchases of 290,732 gallons of refined petroleum products during the crude oil price control period. Eddy was later granted a supplemental refund of $174. Crude Oil Supplemental Refund Distribution, Case No. RA272-00002, 18 DOE ¶ 85,878 (1989). Eddy was also granted a second supplemental refund of $233. Crude Oil Supplemental Refund Distribution, Case No. RB272-00039 (August 15, 1995) (unpub. decision).

Towner County

On July 12, 1988, the OHA issued a Decision and Order granting a refund to Towner County (Towner) in the Subpart V crude oil refund proceeding. City of Crofton, 17 DOE ¶ 85,583 (1988) (Case No. RF272-11698). Towner was granted a $110 refund based on purchases of 547,562 gallons of refined petroleum products during the crude oil price control period. Towner was later granted a supplemental refund of $329. Crude Oil Supplemental Refund Distribution, Case No. RA272-00002, 18 DOE ¶ 85,878 (1989). Towner was also granted a second supplemental refund of $438. Crude Oil Supplemental Refund Distribution, Case No. RB272-00020 (July 25, 1995) (unpub. decision).

Bowman County

On October 12, 1995, the OHA issued a Decision and Order granting a refund to Bowman County, North Dakota (Bowman) in the Subpart V crude oil refund proceeding. Farmers Union Oil Company, Case Nos. RF272-86470, et al., (1995) (unpub. decision) (Case No. RF272- 89731). Bowman was granted a $1,492 refund based on purchases of 932,232 gallons of refined petroleum products during the crude oil price control period.

Slope County

On January 6, 1995, the OHA issued a Decision and Order granting a refund to Slope County (Slope) in the Subpart V crude oil refund proceeding. Town of Oelwein, Case Nos. RF272-96608, et al., (1995) (unpub. decision) (Case No. RF272-96638). Slope was granted an $82 refund based on purchases of 102,188 gallons of refined petroleum products during the crude oil price control period. Slope was later granted a supplemental refund of $82. Crude Oil Supplemental Refund Distribution, Case No. RB272-00058 (November 20, 1995) (unpub. decision).

Duplicate Refunds

On February 13, 1991, the OHA issued a Decision and Order granting a refund to the North Dakota Association of Counties (the Association) in the Subpart V crude oil refund proceeding. North Dakota Association of Counties, 21 DOE ¶ 85,092 (1991) (Case No. RF272-56656). The Association was granted a $22,463 refund based on purchases of 28,079,341 gallons of refined petroleum products made by 17 counties in North Dakota during the crude oil price control period. The Association was later granted a supplemental refund of $22,463. Crude Oil Supplemental Refund Distribution, Case No. RB272-00040 (September 11, 1995) (unpub. decision).

The petroleum purchases made by the five counties discussed above were included in the Association’s approved gallonage claim. Therefore, each county was granted two sets of refunds for the same petroleum purchases.(1) To preclude the five counties from receiving additional refunds, the OHA will make the appropriate changes to its database, as set forth in the ordering paragraphs below.

Conclusion

The OHA generally requires that applicants who received refunds for duplicate applications remit any crude oil refunds which were incorrectly issued. We find that Steele, Eddy, Towner, Bowman, and Slope improperly received excessive refunds in the Subpart V crude oil refund proceeding. However, given the small size of the refunds and the fact that the applicants are municipalities, we will not require the applicants to remit the excessive amounts of their refunds.

Because the five counties have each received almost twice the refund they are entitled to, we find that they should not receive any further payments if there should be another supplemental refund distribution.(2) Because the five counties would receive additional refunds if another payment were made to the Association, we will reduce the approved gallonage claim for the Association by the number of gallons claimed by the five counties in the Association’s Application. This reduction will mean that the five counties will not receive any further crude oil refunds, even if there are additional supplemental refunds made to the Association.

It Is Therefore Ordered That:

(1) The Decision and Order issued by the DOE on August 16, 1988, Richard Kretzer, and the Supplemental Order issued by the DOE on April 11, 1989, Crude Oil Supplemental Refund Distribution, Case No. RA272-00002, are hereby modified as to Steele County (Case No. RF272-08744, redesignated RC272-00383).

(2) The Decision and Order issued by the DOE on September 19, 1988, Glenn Pomerenke, and the Supplemental Order issued by the DOE on April 11, 1989, Crude Oil Supplemental Refund Distribution, Case No. RA272-00002, are hereby modified as to Eddy County (Case No. RF272-11464, redesignated RC272-00384).

(3) The Decision and Order issued by the DOE on July 12, 1988, City of Crofton, and the Supplemental Order issued by the DOE on April 11, 1989, Crude Oil Supplemental Refund Distribution, Case No. RA272-00002, are hereby modified as to Towner County (Case No. RF272-11698, redesignated RC272-00385).

(4) The Decision and Order issued by the DOE on October 12, 1995, Farmers Union Oil Company, is hereby modified as to Bowman County, North Dakota (Case No. RF272-89731, redesignated RC272-00387).

(5) The Decision and Order issued by the DOE on January 6, 1995, Town of Oelwein, is hereby modified as to Slope County (Case No. RF272-96638, redesignated RC272-00386).

(6) The Decision and Order issued by the DOE on February 13, 1991, North Dakota Association of Counties, is hereby modified (Case No. RF272-56656, redesignated RC272-00388).

(7) The Supplemental Order issued by the DOE on July 25, 1995, Crude Oil Supplemental Refund Distribution, Case No. RB272-00020, is hereby modified as to Steele County (Case No. RF272-08744, redesignated RJ272-00055) and Towner County (Case No. RF272-11698, redesignated RJ272-00057).

(8) The Supplemental Order issued by the DOE on August 15, 1995, Crude Oil Supplemental Refund Distribution, Case No. RB272-00039, is hereby modified as to Eddy County (Case No. RF272-11464, redesignated RJ272-00056).

(9) The Supplemental Order issued by the DOE on November 20, 1995, Crude Oil Supplemental Refund Distribution, Case No. RB272-00058, is hereby modified as to Slope County (Case No. RF272-96638, redesignated RJ272-00058).

(10) The Supplemental Order issued by the DOE on September 11, 1995, Crude Oil Supplemental Refund Distribution, Case No. RB272-00040, is hereby modified as to the North Dakota Association of Counties (Case No. RF272-56656, redesignated RJ272- 00059).

(11) The approved original and supplemental volume claims for Steele County, Case No. RF272-08744, redesignated RC272-00383, and Case No. RB272-00020, redesignated RJ272-00055, shall be modified in the OHA database from 345,109 gallons to 0 gallons.

(12) The approved original and supplemental volume claims for Eddy County, Case No. RF272-11464, redesignated RC272-00384, and Case No. RB272-00039, redesignated RJ272-00056, shall be modified in the OHA database from 290,732 gallons to 0 gallons.

(13) The approved original and supplemental volume claims for Towner County, Case No. RF272-11698, redesignated RC272-00385, and Case No. RB272-00020, redesignated RJ272-00057, shall be modified in the OHA database from 547,562 gallons to 0 gallons.

(14) The approved volume claim for Bowman County, North Dakota, Case No. RF272-89731, redesignated RC272-00387, shall be modified in the OHA database from 932,232 gallons to 0 gallons.

(15) The approved original and supplemental volume claims for Slope County, Case No. RF272-96638, redesignated RC272-00386, and Case No. RB272-00058, redesignated RJ272-00058, shall be modified in the OHA database from 102,188 gallons to 0 gallons.

(16) The approved original and supplemental volume claims for the North Dakota Association of Counties, Case No. RF272-56656, redesignated RC272-00388, and Case No. RB272-00040, redesignated RJ272-00059, shall be modified in the OHA database from 28,079,341 gallons to 22,692,825 gallons.

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

George B. Breznay

Director

Office of Hearings and Appeals

Date: April 10, 1998

(1)In crude oil refund cases, an applicant can receive a refund equal to the number of gallons of eligible refined petroleum products it purchased during the crude oil price control period, multiplied by a volumetric factor. The size of the volumetric factor depends on the amount of crude oil overcharge funds that the DOE has collected. Initially, we set the volumetric factor at $.0002 per gallon. The current volumetric is $.0016 per gallon. The five counties have each received a total of $.0016 per gallon through their original and supplemental refunds. They also received an additional $.0016 per gallon through the Association’s refunds.

(2)Each county had a larger approved gallonage claim, and therefore received a larger refund, in the Association’s claim than it had in its own individual claim. The Association used more detailed records to estimate the gallonage claim for each county.