Case No. RF272-93527

May 16, 1997

DECISION AND ORDER

OF THE DEPARTMENT OF ENERGY

Applications for Refund

Names of Applicants: Hildreth Farmers Cooperative Association, et al.

Date of Filings: July 2, 1995, et al.

Case Numbers: RF272-93527, et al.

This Decision and Order will consider Applications for Refund filed by three applicants that purchased refined petroleum products during the period August 19, 1973 through January 27, 1981. 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. See, 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).

Each of the three applicants considered in this Decision and Order is a cooperative. 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.(1) Each cooperative whose Application is considered in this Decision and Order has certified that it will pass through to its members or patrons any refund it receives 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 three applicants and determined that each qualifies for the end-user presumption of injury. Each applicant 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 37,511,525 gallons and the sum of the refunds granted is $60,018. One of the applicants has requested that its refund check be sent to Energy Refunds, Inc., a private filing service.

It Is Therefore Ordered That:

(1) The three 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) and (3) below.

(2) The Team Leader of the Special Accounts Team, Office of Financial Control and Reporting, 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. 999DOE010Z, to the applicants or their representatives listed in the Appendix. The total amount of refunds approved in this Decision is $60,018. The address to which each check should be sent is listed in the Appendix.

(3) All of the applicants listed in the Appendix shall pass through to their members or patrons any refunds received 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: May 16, 1997

(1)We have reduced the volume of products that each cooperative claimed it purchased during the refund period by the percentage of its sales that were made to non-members.

Appendix
CASE NO. APPLICANT CONTACT STREET ADDRESS CITY/STATE VOLUME REFUND
RF272-93527 HILDRETH FARMERS COOP ASSOC. C/O CHARLES TRUTNA P.O. BOX 421 HASTINGS, NE 68902 5,341,109 $8,546
RF272-93757 FARMERS COOP ELEVATOR C/O TRACY RIES OR ENERGY REFUNDS, INC. 31 SMALL LANE HARDIN, KY 42048 20,265,871 $32,425
RF272-94006 B & W COOP, INC. C/O CINDY GULICK P.O. BOX 518 BRECKENRIDGE, MI 48615 11,904,545 $19,047
Totals: 3       37,511,525 $60,018
             


Last Updated on 7/10/97
By OHA