Case No. RC272-00371

October 24, 1997

DECISION AND ORDER

OF THE DEPARTMENT OF ENERGY

Supplemental Order

Names of Petitioner: Homes of Merit, Inc.

Date of Filing: August 19, 1997

Case Numbers: RC272-00371

RJ272-00046

RK272-4587

On August 3, 1989, the Office of Hearings and Appeals (OHA) of the Department of Energy (DOE) issued a Decision and Order to 70 applicants. Cord Meyer Development Co., et al., Case Nos. RF272- 56504 et al. (August 3, 1989). In that Decision, the DOE granted Homes of Merit, Inc. (Homes), a manufacturer of mobile homes located in Bartow, Florida (Case No. RF272-56981), a refund of $582 based on its purchases of 727,633 gallons of refined petroleum products.

This Office is in the process of issuing supplemental refunds to all applicants granted refunds in the crude oil proceeding. As we stated in the Cord Meyer Development Co. Decision and Order, when additional crude oil monies became available, meritorious applicants would receive a share of the additional monies. During our review process for this supplemental refund, we discovered that in July 1991, Homes was granted an additional refund of $331 for purchases of 413,184 gallons of refined petroleum products under Case No. RF272-84877 (now designated RC272-371). See Plankinton School Dist. #1-1, et al., Case Nos. RF272-84800 et al. (July 23, 1991) (Plankinton).

There is nothing in either application to indicate that the applications filed on behalf of Homes differ in anything other than the amount of the purchase volume claims. Each application requested refunds for purchases of refined petroleum products used for the maintenance and operation of the company from August 19, 1973 through January 27, 1981. Thus, a duplicate refund was erroneously applied for and granted.

Since the supplemental per gallon refund amount ($0.0008) is the same as the prior refund amount, rather than requiring Homes to repay the second refund, we normally would have subtracted that amount ($331) from the supplemental refund to which the firm is entitled ($582) and issue a supplemental refund for the difference ($251). See State of Montana, 25 DOE ¶ 85,059 (1995). Unfortunately, a supplemental refund of $331 based on the duplicate application, Case No. RF272-84877, has already been erroneously granted to Homes. See Crude Oil Supplemental Refund Distribution, Case No. RB272-88 (October 8, 1996).

We stated in Ordering Paragraph (4) of Plankinton:

The determinations made in this Decision and Order are based upon the presumed validity of statements and documentary material submitted by the applicants. Any of these determinations may be revoked or modified at any time upon a finding that the basis underlying any refund application is incorrect.

Such remedial action is appropriate here. This Office is therefore rescinding Homes’s duplicative refund. Since we have granted a supplemental refund for this applicant, we are also rescinding that refund. Therefore, Homes is liable for the repayment of $662 -- the $331 the firm was duplicatively granted under Case No. RF272- 84877, and the $331 supplemental refund that the firm was granted under Case No. RB272-88.

However, Homes is eligible to receive a supplemental refund of $582 for the 727,633 gallons of petroleum products for which the firm received a refund in Case No. RF272-56981 (now designated RK272- 4587). Accordingly, we will direct the firm to repay $80 ($662 - $582) to the DOE.

It Is Therefore Ordered That:

(1) The Decision and Order issued by the Department of Energy on July 23, 1991, Plankinton School, Dist. #1-1 et al., Case Nos. RF272-84800 et al., is hereby rescinded as to Homes of Merit, Inc., Case No. RF272-84877, redesignated as RC272-00371. The Office of Hearings and Appeals shall reduce the approved volume claim for Homes of Merit, Inc., Case No. RF272-84877, from 413,184 gallons to zero gallons.

(2) The Supplemental Order issued by the Department of Energy on October 8, 1996, Crude Oil Supplemental Refund Distribution, Case No. RB272-88, is hereby rescinded as to Homes of Merit, Inc., Case No. RF272-84877, redesignated as RJ272-00046.

(3) The Application for Supplemental Refund filed by Homes of Merit, Inc. (Case No. RK272-4587) is hereby approved as set forth in Paragraph (4) below, and is denied in all other respects.

(4) Homes of Merit, Inc. is directed to remit $80 to the Department of Energy. Payment shall be mailed to the following address:

U.S. Department of Energy

Office of the Controller

Cash Control Branch

P.O. Box 500

Germantown, MD 20874-0500

Payment should be made by check payable to the U.S. Department of Energy and should refer to Case Nos. RC272-00371 and RJ272-0046. In the event that payment is not made within 30 days of the date of this Decision and Order, interest shall accrue on the amount due at the rate generally assessed by the Department of Energy on overdue receivables. Other charges generally assessed on overdue DOE receivables shall also apply.

(5) Upon receipt of the payment specified in paragraph (4) above, the Director of Special Accounts and Payroll, Office of Chief Financial Officer, shall take appropriate action to deposit these funds into the DOE deposit fund escrow account denominated Crude Tracking-Claimants 4, Account No. 999DOE010Z, maintained at the Department of the Treasury.

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

George B. Breznay

Director

Office of Hearings and Appeals

Date: October 24, 1997