Case No. RF272-99112
December 17, 1996
DECISION AND ORDER
OF THE DEPARTMENT OF ENERGY
Applications for Refund
Names of Applicants: Cyrus Truck Lines, Inc.
KHS Air Freight, Inc.
Date of Filings: July 12, 1994
July 12, 1994
Case Numbers: RF272-99112
RF272-99114
This Decision and Order will consider Applications for Refund filed by two Applicants that purchased refined petroleum products during the period August 19, 1973 through January 27, 1981. Both Applicants listed in the attached Appendix have 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).
We have reviewed the information submitted by these Applicants and determined that each was an end user of petroleum products.(1)
Each of the Applicants has documented its purchase volumes. In both cases, the company has been dissolved and the Applicants have submitted documentation indicating the percentage of stock each party listed in the Appendices owned at the time of dissolution. 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/Pate's Gulf, 22 DOE ¶ 85,219 (1992). Therefore, each of the parties listed in the Appendices is entitled to a refund based on his or her ownership percentage, as set forth in the Appendices.
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 5,300,729 gallons and the sum of the refunds granted is $8,481. In accordance with the Applicants' instructions, we will direct the refund checks to their filing service, Wilson, Keller & Associates. Upon receipt of the refund checks, the filing service will split the refunds for each of the companies as specified in the Appendices. The filing service shall then notify the Office of Hearings and Appeals that it has divided the refund for each company in said manner.
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 Applications for Refund filed by the claimants listed in the Appendices to this Decision and Order for all available crude oil overcharge funds are hereby approved as set forth in Paragraphs (2)and (3) 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 4, Account No. 999DOE010Z, to the Applicants listed in the Appendix. The total amount of the refunds approved in this Decision and Order for the benefit of two Applicants is $8,481.
(3) The Applicants in Appendix A and Appendix B applied through the filing service Wilson, Keller & Associates. In accordance with their requests, the refund checks should be sent to: "Wilson, Keller & Associates, Chris Edwards, P.O. Box 221145, Memphis, TN 38122."
(4) Upon receipt of the refund checks, the filing service shall divide the refund for the two Applicants among the shareholders, as set forth in the Appendices attached to this Decision and Order. The filing service shall then notify the Office of Hearings and Appeals, in writing, that it has divided the refunds in such a manner.
(5) To facilitate the payment of future refunds, each of 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: December 17, 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.