Case No. RF304-15512

January 5, 1998

DECISION AND ORDER

OF THE DEPARTMENT OF ENERGY

Supplemental Order

Name of Petitioner:Atlantic Richfield Company/

Chuck Lorrah's ARCO #1

Chuck Lorrah's ARCO #2

Date of Filing:December 19, 1997

Case Numbers:RF304-15512

RF304-15513

This Decision and Order concerns two Applications for Refund that were filed in the ARCO special refund proceeding with respect to retail outlets owned by Charles Lorrah. On July 26, 1991, Wilson, Keller & Associates (WKA), a private filing service, filed refund applications based upon ARCO purchases by the two retail outlets. One station, Chuck Lorrah's ARCO #1, was located in West Covina, California (Case No. RF304-12333) and the other, Chuck Lorrah's ARCO #1, in Roland Heights, California (Case No. RF304-12334). Charles Lorrah is deceased and these refund applications were filed by his brother, Mr. Russ Lorrah, who claimed to be his heir. The refund applications were approved on August 12, 1991. Atlantic Richfield Co./Dick's ARCO, et al., Case No. RF304-12308, et al. (1989). The West Covina outlet received a refund of $810 ($548 principal plus $262 interest), and the Roland Heights outlet received a refund of $3,911 ($2,648 principal plus $1,263 interest).

Subsequently, on May 10, 1996, Patricia Kathleen Lorrah-Kent, Charles Lorrah's step-daughter and the executrix of his will claimed that Russ Lorrah is not Charles Lorrah's heir. In support of this claim she submitted a copy of Charles Lorrah's will and statements by family and friends of Charles Lorrah indicating that Russ Lorrah was not involved in operating the two retail outlets and that the two brothers were not on good terms. A copy of Ms. Lorrah-Kent's submission was provided to Russ Lorrah, and he was asked to provide evidence that he was entitled to the refund. Russ Lorrah did not submit any evidence that he is entitled to Charles Lorrah's ARCO refund.(1) His response also confirmed that he and his brother were not on good terms.

As Russ Lorrah was not listed as a beneficiary in Charles Lorrah's will, we find that he is not entitled to the ARCO refund attributable to Charles Lorrah's two retail outlets.(2) We stated in the August 12, 1991 determination granting the refunds that:

The determinations made in this Decision and Order are based on the presumed validity of statements and documentary material submitted by the applicants. The determinations may be revoked or modified at any time upon a finding that the factual basis underlying the Applications for Refund is incorrect.

Such remedial action is appropriate here. Accordingly, Mr. Russ Lorrah and his agent, WKA, shall be required to repay the refunds together with the interest the funds would have earned had they remained on deposit in the ARCO escrow account. The total amount of this repayment obligation is $6,587.(3)

It Is Therefore Ordered That:

(1) The Decision and Order issued by the DOE on August 12, 1991. Atlantic Richfield Co./Dick's ARCO, et al., Case No. RF304-12308 et al. (1989) is hereby rescinded with respect to Chuck Lorrah's ARCO #1 (Case No. RF304-12333, redesignated as RF304-15512) and Chuck Lorrah's ARCO #2 (Case No. RF304-12334, redesignated as RF304-15513).

(2) Russ Lorrah and Wilson, Keller & Associates are hereby directed to remit $6,587 to the Department of Energy at the following address:

U.S. Department of Energy

Office of the Chief Financial Officer

P.O. Box 500

Germantown, MD 20874-0500

Payment should be made by check payable to the U.S. Department of Energy and should refer to Case Nos. RF304-15512 and RF304-15513. In the event that payment is not made within 30 days of the date of this Decision and Order, interest shall accrue on the unpaid amount at the rate generally assessed by the Department of Energy on overdue receivables. Other charges generally assessed on overdue receivables shall also apply.

(3) Upon receipt of the payment specified above, the Director of Special Accounts and Payroll, Office of the Controller of the Department of Energy shall take appropriate action to deposit these funds into the DOE deposit fund escrow account funded by Atlantic Richfield, Inc., Consent Order No. RARH00001Z. For purposes of this account, the payment shall consist of $548 principal plus $581 interest for Case Number RF304-15501, and $2,648 principal plus $2,810 interest for Case Number RF304-15502.

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

George B. Breznay

Director

Office of Hearings and Appeals

Date: January 5, 1998

(1)Russ Lorrah claims that his brother owes him $1,800 as a result of a loan he made to him so he could buy a load of gas. Even if he were a creditor, it would not entitle him to Charles's ARCO refund. If Russ Lorrah was owed money, the appropriate action would be to file a claim with the executrix.

(2)WKA claims that it has been unable to find any evidence that the will was probated. Whether the will was probated is, however, irrelevant to our determination. What is relevant is that there is no will naming Russ Lorrah as a beneficiary. If there was no valid will, the estate (including any ARCO refund) would go to Charles Lorrah's widow and children, not to Russ Lorrah.

(3)This amount includes $1,866 in interest that the funds would have earned had they remained on deposit in the ARCO escrow account.