Case No. RF272-95237

November 6, 1996

DECISION AND ORDER

OF THE DEPARTMENT OF ENERGY

Applications for Refund

Names of Petitioners: Community Oil Co. of Day County, et al.

Dates of Filings: April 25, 1994, et al.

Case Numbers: RF272-95237, et al.

This Decision and Order will consider Applications for Refund filed by twelve claimants that purchased refined petroleum products during the period August 19, 1973 through January 27, 1981.(1) Each applicant listed in the Appendix attached to this Decision and Order 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 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. City of Columbus, Georgia, 16 DOE ¶ 85,550 (1987).

The applicants considered in this Decision and Order are agricultural cooperatives that bought petroleum products for resale to their members, who were end-users. We consider a claim by an agricultural cooperative that resold petroleum products to its members as a claim on behalf of the members. Farmers Union Oil Co., 17 DOE ¶ 85,644 (1988). Therefore, we afford such a cooperative the presumption of end-user injury on the condition that it certify that it will pass through the refund to its members. All of the cooperatives considered in this Decision and Order have provided this certification.

Eleven of the twelve cooperatives also resold petroleum products to non-members.(2) In the Subpart V refund proceedings, we have treated a cooperative’s sales to non-members in the same manner as sales by other resellers. Upland Farmers Union Coop. Inc., 19 DOE ¶ 85,041 (1989). Consequently, a cooperative is not eligible to receive a crude oil refund for gallons sold to non-members without providing a detailed demonstration of injury. A. Tarricone Inc., 15 DOE ¶ 85,495 (1987). None of the twelve cooperatives have attempted to make an injury showing with respect to the gallons that it resold to non-members. Thus, the claimants are eligible for a refund based solely on the percentage it resold to its members, and we have adjusted the volume of each refund claim accordingly.

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 155,745,116 gallons and the sum of the refunds granted is $249,194.

The final deadline for 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 Appendix to this Decision and Order for all available crude oil overcharge funds are hereby approved as set forth in Paragraph (2) 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 IV, Account No. 999DOE010Z, to the applicants listed in the Appendix to this Decision and Order.

(3) All cooperatives listed in the Appendix to this Decision and Order shall pass through to their members any refunds that they receive on a dollar for dollar basis.

(4) 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

(5) 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.

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

George B. Breznay

Director

Office of Hearings and Appeals

Date: November 6, 1996

(1)Each of the applicants are represented by a private filing service: Energy Refunds, Inc., located in Hardin, Kentucky.

(2)Community Oil Company of Day County (RF272-95237) resold 2 percent to non- members; Farm Services, Inc. (RF272-95238) resold 2 percent; Union Warehouse & Supply Coop (RF272-95239) resold 30 percent; Farmers Supply Association (RF272- 95240) resold 1 percent; Weakley Farmers Cooperative (RF272-95241) resold 5 percent; Farmers Coop Association (RF272-95243) resold 2 percent; Kathryn Farmers Mutual (RF272-95246) resold 5 percent; Tuttle Farmers Elevator (RF272- 95250) resold 5 percent; Red River Farm Coop (RF272-95251) resold 5 percent; Minsters Farmers Coop Exchange (RF272-95252) resold 5 percent; and Farmers Union Co. Of Rhame (RF272-95258) resold 3 percent.


Appendix
CASE NO. APPLICANT FIRM CONTACT VOLUME REFUND
RF272-95237 COMMUNITY OIL CO. OF DAY CO. OR ENERGY REFUNDS, INC. C/O ELROY OLDAND 19,979,721 $31,968
RF272-95238 FARM SERVICES, INC. OR ENERGY REFUNDS, INC. C/O JOHN SWIFT 33,085,668 $52,937
RF272-95239 UNION WAREHOUSE & SUPPLY COOP OR ENERGY REFUNDS, INC. C/O JAY SMITH 2,817,196 $4,508
RF272-95240 FARMERS SUPPLY ASSN. OR ENERGY REFUNDS, INC. C/O TIM MILLS 1,743,489 $2,790
RF272-95241 WEAKLEY FARMERS COOPERATIVE OR ENERGY REFUNDS, INC. C/O GEORGE EVANS 6,062,435 $9,700
RF272-95243 FARMERS COOP ASSN. OR ENERGY REFUNDS, INC. C/O GARY STERLING 17,764,457 $28,423
RF272-95244 COLD SPRING COOP CREAMERY OR ENERGY REFUNDS, INC. C/O DARRYL FRIEST 1,780,638 $2,849
RF272-95246 KATHRYN FARMERS MUTUAL OR ENERGY REFUNDS, INC. C/O RON OLTHOFF 5,231,583 $8,371
RF272-95250 TUTTLE FARMERS ELEVATOR OR ENERGY REFUNDS, INC. C/O ED BICKEL 6,155,837 $9,849
RF272-95251 RED RIVER FARM COOP OR ENERGY REFUNDS, INC. C/O LLOYD LEE 14,669,116 $23,471
RF272-95252 MINSTER FARMERS COOP EXCHANGE OR ENERGY REFUNDS, INC. C/O BILL HOMAN 42,052,357 $67,284
RF272-95258 FARMERS UNION CO. OF RHAME OR ENERGY REFUNDS, INC. C/O MERRELL BUISKER 4,402,619 $7,044
Totals: 12     155,745,116 $249,194


Last Updated on 8/15/97
By OHA