Case No. RG272-00944
November 7, 1996
DECISION AND ORDER
OF THE DEPARTMENT OF ENERGY
Applications for Refund
Names of Applicants: Peetz Farmers Co-op Co., et al.
Date of Filings: July 5, 1995, et al.
Case Numbers: RG272-00944, et al.
This Decision and Order will consider Applications for Refund filed by six Applicants that purchased refined petroleum products during the period August 19, 1973 through January 27, 1981. All Applications considered in this Decision and Order were filed with the assistance of the filing service Energy Refunds, Inc. Each Applicant listed in the attached Appendix has requested a refund from crude oil monies available for disbursement by the Office of Hearings and Appeals of the Department of Energy pursuant to the Statement of Modified Restitutionary Policy In Crude Oil Cases, 51 Fed. Reg. 27899 (August 4, 1986).
In the past, purchasers of refined products were able to apply to the OHA for a refund from crude oil overcharge funds collected by the DOE. 51 Fed. Reg. 27899 (August 4, 1986). We have established refund procedures for these funds, which have been made available through consent orders between the DOE and numerous firms that sold crude oil during the price control period. E.g., Berry Holding Co., 16 DOE ¶ 85,405 (1987) (Berry); A. Tarricone, Inc., 15 DOE ¶ 85, 495 (1987); Mountain Fuel Supply Co., 14 DOE ¶ 85,475 (1986).
In order to receive a refund for crude oil overcharges, an Applicant generally must (1) document its purchase volumes and (2) show that it was injured by the overcharges. However, applicants that were end users of petroleum products and whose business was unrelated to the petroleum industry are presumed to have been injured. As such, they need not submit proof of injury to receive a refund in the Subpart V proceeding. City of Columbus, Georgia, 16 DOE ¶ 85,550 (1987).
All six of the Applications considered in this Decision and Order
are cooperatives. We regard an Application for Refund filed by a cooperative that resold petroleum products to its members as a claim filed on behalf of the members themselves. Farmers Union Oil Co., 17 DOE ¶ 85,464 (1988). A cooperative can thus claim the presumption of end-user injury to the extent that its members were end-users. Consequently, we will consider granting a refund to a cooperative based on products resold to its members on the condition that it certify that it will pass through the refund to its members. All of the cooperatives whose Applications are considered in this Decision and Order have certified that they will pass through any refunds they receive from the Subpart V crude oil refund proceeding. As such, we will consider these Applications under the presumption of end-user injury.
We have reviewed the information submitted by these six Applicants and determined that each was an end user of petroleum products.(1)Each of the Applicants listed in the Appendix has documented its purchase volumes. The purchase volumes and refunds approved for each Applicant are set forth in the Appendix. The total volume for which refunds are approved in this Decision is 59,627,364 gallons and the sum of the refunds granted is $95,405.
The final deadline for submitting Applications in the crude oil proceeding was June 30, 1995. It is the current policy of the DOE to pay eligible crude oil refund claimants at the rate of $0.0016 per gallon. We will decide after the resolution of a few outstanding enforcement proceedings whether sufficient funds are available for additional refunds.
It Is Therefore Ordered That:
(1) The six Applications for Refund filed by the claimants listed in the Appendix to this Decision and Order for all available crude oil overcharge funds are hereby approved as set forth in Paragraphs (2), (3) and (4) below.
(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 the refund amounts set forth in the Appendix to this Decision and Order from the DOE deposit fund escrow account maintained at the Department of the Treasury denominated Crude Tracking-Claimants II, Account No. 999DOE008Z, to the Applicants listed in the Appendix. The total amount of refunds approved in this Decision is $95,405.
(3) All of the Applicants listed in the Appendix shall pass through to their members/patrons any refunds received on a dollar-for- dollar basis.
(4) All of the Applicants listed in the Appendix applied through the filing service Energy Refunds, Inc. In accordance with their requests, their refund checks should be sent to: Energy Refunds, Inc., Eric T. Small, Highway 80 East, 31 Small Lane, Hardin, KY 42048.
(5) To facilitate the payment of future refunds, the Applicants shall notify the Office of Hearings and Appeals in the event that there is a change in its address, or if an address correction is
necessary. Such notification shall be sent to:
Director of Management Information
Office of Hearings and Appeals
Department of Energy
1000 Independence Avenue, S.W.
Washington, D.C. 20585-0107
(6) The determinations made in this Decision and Order are based upon the presumed validity of the statements and documentary material submitted by the Applicants. This Decision and Order may be revoked or modified at any time upon a determination that the basis underlying a refund Application is incorrect.
(7) This is a final Order of the Department of Energy.
George B. Breznay
Director
Office of Hearings and Appeals
Date: November 7, 1996
(1) Interested parties were given an opportunity to submit comments regarding individual crude oil refund Applications. No such comments were filed with respect to any Application involved in this determination.
Appendix
CASE NO. APPLICANT FIRM CONTACT VOLUME REFUND RG272-00944 PEETZ FARMERS COOP CO. OR ENERGY REFUNDS, INC. C/O PHILLIP SCHUMACHER 5,621,609 $8,995 RG272-00946 FARMERS CO-OP SOCIETY #1 OR ENERGY REFUNDS, INC. C/O JIM WHITE 1,056,965 $1,691 RG272-00948 LAKE COUNTY FARM BUREAU COOP OR ENERGY REFUNDS, INC. C/O DON HARRELL 15,917,422 $25,468 RG272-00949 NORTH ARKANSAS FARM SUPPLY OR ENERGY REFUNDS, INC. C/O RICHARD ARENDALL 2,049,282 $3,279 RG272-00950 WASHTENAW FARMERS OIL CO. OR ENERGY REFUNDS, INC. C/O FRED GIRBACH 29,058,507 $46,494 RG272-00952 CONSUMER CO., INC. OR ENERGY REFUNDS, INC. C/O JACK OSBORN 5,923,579 $9,478 Totals: 6 59,627,364 $95,405
Last Updated on 8/15/97
By OHA