Case No. RK272-04833

August 14, 1998

DECISION AND ORDER

OF THE DEPARTMENT OF ENERGY

Supplemental Order

Name of Applicant: Amertex Service Group

Date of Filing: July 22, 1998

Case Number: RK272-04833

This Decision and Order will consider an Application for Supplemental Refund filed in the Subpart V crude oil refund proceeding by Central Quality Service Corporation, d/b/a Amertex Service Group (Amertex).(1) The Application is based upon purchases of refined petroleum products made by Banner Laundering Company (Banner) from August 1973 to January 1981.

In the Application, Kathleen Fournier of Amertex stated that Amertex purchased Banner in 1993. In a telephone conversation with the OHA on August 3, 1998, Neal Silber of Amertex explained that the purchases were asset purchases only, and that Amertex did not buy any of the capital stock in Banner.

We have a statutory duty to identify and provide restitution to injured persons. 15 U.S.C. § 4502 (b). We would be negligent in discharging that duty if we granted a refund to someone other than an identified injured person. Texaco/Huffy Gas, 22 DOE ¶ 85,220 at 88,586 n. 4. Therefore, the refund procedures we have established provide that the right to receive a refund generally remains with the owner of a firm during the price control period. Nevertheless, the right to receive a refund can be transferred to a subsequent owner of the firm if: (i) the firm

is a corporation, the entire capital stock of which was purchased by the subsequent owner; or (ii) the firm's assets were sold under an agreement that indicated, either explicitly or implicitly, that potential refunds were being transferred. Mrs. M.B. Troy, 23 DOE ¶ 85,049 (1993).

According to Mr. Silber, Amertex did not purchase any of the capital stock of Banner. In addition, there is no indication in the Application that the right to receive future crude oil refund monies was either explicitly or implicitly included in the sale of Banner’s assets to Amertex. As such, the owners of the capital stock of Banner did not relinquish their right to receive the supplemental crude oil refunds based on Banner’s petroleum purchases during the price control period. We will therefore deny the Application submitted by Amertex.

It Is Therefore Ordered That:

(1) The Application for Supplemental Refund filed by Central Quality Services Corporation, d/b/a Amertex Service Group, Case No. RK272-04833, is hereby denied.

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

George B. Breznay

Director

Office of Hearings and Appeals

Date: August 14, 1998

(1) For information pertaining to the Supplemental Distribution of Subpart V Crude Oil Refund Monies, see State of Montana, et al., 25 DOE ¶ 85,059 (1995).