Case No. RF040-03712
January 23, 1998
DECISION AND ORDER
OF THE DEPARTMENT OF ENERGY
Supplemental Order
Names of Petitioners: Gulf Oil Corporation/
Rice-Lindquist, Inc.
Gulf Oil Corporation/
Rice-Lindquist, Inc.
Quantum Chemical Corporation/
Rice Oil Company
Date of Filing: December 30, 1997
Case Numbers: RF040-03712
RF300-21841
RF330-67
Between 1988 and 1992, the Department of Energy (DOE) approved two refund applications filed by Rice-Lindquist, Inc., in the Gulf Oil Corporation overcharge refund proceedings and one refund application filed by Rice Oil Company in the Quantum Chemical Corporation overcharge refund proceeding. Gulf Oil Corporation/ Rice-Lindquist, Inc., 17 DOE ¶ 85,524 (1988) (Gulf I/ Rice); Gulf Oil Corporation/ Rice-Lindquist, Inc., 20 DOE ¶ 85,509 (1990) (Gulf II/ Rice); Quantum Chemical Corporation/ Rice Oil Company, Case No. RF330-59 (October 21, 1992) (Quantum/ Rice). Rice- Lindquist was granted a refund of $74,056 ($57,547 in principal and $16,509 in interest) in Gulf I/ Rice, and a refund of $62,574 ($44,008 in principal and $18,566 in interest) in Gulf II/ Rice. Rice Oil Company was granted a refund of $341 ($256 in principal and $85 in interest) in Quantum/ Rice. Rice-Lindquist, Inc., and Rice Oil Company are hereinafter referred to collectively as Rice. Because Rice was then the subject of a DOE enforcement proceeding (the Rice enforcement proceeding), the three refunds were withheld and deposited in two separate interest-bearing escrow accounts.
The Rice enforcement proceeding has been concluded, and Rice does not owe the DOE any amount. A federal district court granted Rices motion for summary judgement. Rice v. Department of Energy, No. A4-93-24 (February 15, 1996). The DOE appealed to the Federal Circuit; Rice appealed to the Eighth Circuit, requesting attorney fees. Both appeals were dismissed with prejudice pursuant to an Agreement of Compromise and Settlement. December 30, 1997
Submission, Ex. 2. As a result, neither Rice-Lindquist nor Rice Oil Company owes money to the DOE.
Both Rice-Lindquist and Rice Oil Company are corporations. They were voluntarily dissolved on December 28, 1992. The sole shareholder in both corporations at the time of dissolution was Leonard O. Rice. On December 30, 1997, Mr. Rice filed three applications in which he requests that we disburse the funds in the escrow accounts established by the Gulf I/ Rice, Gulf II/ Rice, and Quantum/ Rice Decision and Orders. Mr. Rice states that because the enforcement proceeding has been concluded in favor of Rice- Lindquist and Rice Oil Company, he should now receive the entire amount being held in escrow.
Since the Rice enforcement proceeding has been resolved, the conditions for the release of the refunds set forth in the Gulf I/ Rice, Gulf II/ Rice, and Quantum/ Rice decisions have been met. Therefore, the refunds that have been held in escrow for Rice- Lindquist and Rice Oil Company may now be disbursed to the appropriate recipient.
In the case of a voluntarily dissolved corporation, the Office of Hearings and Appeals has generally refunded the stockholders of the corporation at the time of dissolution according to their respective ownership percentages. See Gulf Oil/Pates Gulf, 22 DOE ¶ 85,219 (1992). Mr. Rice was the sole shareholder in both Rice- Lindquist and Rice Oil Company at the time of dissolution, and is therefore the proper recipient of the corporations refunds. Accordingly, the refunds which have been held in escrow for Rice- Lindquist and Rice Oil Company, plus interest, shall now be disbursed to Mr. Rice.
Mr. Rice is represented by the firm of Bassman, Mitchell & Alfano. Mr. Rice has requested that the refunds be disbursed to Bassman, Mitchell & Alfano via wire transfer. Since the refund amount is large, we have concluded that a wire transfer of funds directly to Bassman, Mitchell & Alfano is appropriate.
It Is Therefore Ordered That:
(1) The three Applications for Supplemental Order filed by Leonard O. Rice on December 30, 1997, requesting the disbursement of the refunds approved in Quantum Chemical Corporation/ Rice Oil Company, Case No. RF330-59 (October 21, 1992), Gulf Oil Corporation/ Rice- Lindquist, Inc., 20 DOE ¶ 85,509 (1990),and Gulf Oil Corporation/ Rice-Lindquist, Inc., 17 DOE ¶ 85,524 (1988) are 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 $136,630 ($101,555 in principal and $35,075 in interest) and all additional interest accrued on that amount through the date of disbursal from the DOE deposit fund escrow account maintained at the Department of the Treasury in the name of Rice-Lindquist, Inc., Account No.BFBBBBBBBB, and $341 ($256 in principal and $85 in interest) and all additional interest accrued on that amount through the date of disbursal from the DOE deposit fund escrow account maintained at the Department of the Treasury in the name of Rice Oil Company, Account No. BZBBBBBBBB, directly to Leonard O. Rices attorneys, Bassman, Mitchell & Alfano via wire transfer. Instructions concerning the wire transfer are being submitted to the Director by separate memorandum.
(3) The determinations made in this Decision and Order are based upon the presumed validity of the statements and documentary materials submitted by the applicant. Any of these determinations may be revoked or modified at any time upon a finding that the basis underlying any Application for Refund is incorrect.
(4) This is a final order of the Department of Energy.
George B. Breznay
Director
Office of Hearings and Appeals
Date: January 23, 1998