Case No. RF272-95745
October 27, 1998
DECISION AND ORDER
OF THE DEPARTMENT OF ENERGY
Application for Refund
Name of Applicant: Arrow Trucking Company
Date of Filing: May 24, 1994
Case Number: RF272-95745
This Decision and Order will consider an Application for Refund filed by Arrow Trucking Company (Arrow). In its application, Arrow requests a refund from crude oil overcharge funds. These funds are available for disbursement by the Office of Hearings and Appeals (OHA) of the Department of Energy (DOE) under 10 C.F.R. Part 205, Subpart V. As explained below, we will deny Arrows application.
In the past, purchasers of refined petroleum products during the crude oil price control period were allowed to apply to the OHA for a refund from crude oil overcharge funds. (1) 51 Fed Reg. 27899 (August 4, 1986). These funds were collected by the DOE through consent orders with certain firms that sold crude oil during the price control period. E.g., Berry Holding Co., 16 DOE ¶ 85,495 (1987); Mountain Fuel Supply Co., 14 DOE ¶ 85,45 (1986). We accepted Applications for Refund in the Subpart V crude oil proceeding from injured parties that had not waived their claims by participating in one of the Stripper Well refund proceedings. 51 Fed. Reg. 29689 (August 20, 1986); 52 Fed. Reg. 11737 (April 10, 1987).
The Stripper Well refund proceedings were created to carry out the terms of the Settlement Agreement reached in The Department of Energy Stripper Well Exemption Litigation, 653 F. Supp. 108 (D. Kan. 1986). The Settlement Agreement established escrow accounts to refund crude oil overcharges to eight groups of petroleum product purchasers: Refiners, Retailers, Resellers, Agricultural Cooperatives, Airlines, Surface Transporters, Rail and Water Transporters, and Utilities.
In creating the escrow accounts, the court announced that all parties and claimants receiving refunds under this agreement will waive any further claims to crude oil refunds. 653 F. Supp. At 114. Following the courts holding, the Settlement Agreement provides that the settling parties waive their right to participate in any future refund proceeding based on crude oil overcharges. Settlement Agreement, Paragraph III.A.1, 6 Fed. Energy Guidelines ¶ 90,509 at 90,660.
Arrow participated in the Surface Transporters refund proceeding of the Stripper Well settlement.(2) To participate in this proceeding, Arrow executed a Claim Form and Waiver.(3)
The provisions of the Claim Form and Waiver follow those in the Settlement Agreement. The general waiver provision is found in Paragraph 7 of the Claim Form and Waiver, which provides that Arrow:
hereby releases, and waives all [Arrows] existing and future claims whether
assertable at law or in equity, and whether known or unknown that fall within
any one or more of the following classes...
... (2) all present and future claims asserting rights to share in existing
monies paid, ordered to paid, or held for payment as restitution as a result of
any judicial or administrative proceeding relating to the federal mandatory
allocation and price regulations applicable to crude oil....
In addition, Paragraph 10 of the Claim Form provides that:
... [Arrow] hereby agrees to withdraw and to take all necessary steps to file
appropriate withdrawals of any and all claims it now has or hereinafter may
have for funds in any Court or agency proceedings, including Subpart V
proceedings, where such funds are related to Alleged Crude Oil Violations...
[Arrow] agrees it will not file any such claims for refund of Alleged Crude
Oil Violations in these or similar proceedings in the future.
Roberts Dairy Co., 16 DOE ¶ 85,573 at 89,147 (1987); enforced sub nom Mid-American Dairymen, Inc. v. Herrington, 704 F. Supp. 198 (D. Kan. 1988); affd 878 F.2d 1448 (Temp. Emer. Ct. App. 1989); see also Boise Cascade Corp., 16 DOE ¶ 85,214 (1987); enforced sub nom In Re: The Department of Energy Stripper Well Exemption Litigation, 707 F. Supp. 1267 (1987).
By choosing to obtain relief from the Surface Transporters escrow account, Arrow waived its right to participate in the Subpart V crude oil proceeding. We will therefore deny Arrows application.
It is Therefore Ordered That:
(1) The Application for Refund filed by Arrow Trucking Company (Case No. RG272-747) is hereby denied.
(2) This is the final Order of the Department of Energy.
George B. Breznay
Director
Office of Hearings and Appeals
Date:October 27, 1998
(1)The crude oil price control period extended from August 19, 1973 through January 27, 1981.
(2)The OHA, administrator of the Surface Transporters escrow account, granted a refund to Arrow Trucking (Case No. RF270-2419) on June 15, 1987. Farm House Foods Corporation, 16 DOE ¶ 85,339.
(3)The Claim Form was signed on behalf of Arrow Trucking Company by Robert A. Hirsch, Designated Agent, on December 8, 1986.