Case No. RF272-69235

April 24, 1997

DECISION AND ORDER

OF THE DEPARTMENT OF ENERGY

Application for Refund

Name of Applicant: Shippers Transports, Inc.

Date of Filing: June 30, 1988

Case Number: RF272-69235

This Decision and Order will consider an Application for Refund submitted by Shippers Transports, Inc., (STI). STI requests a refund from crude oil funds disbursed by the Office of Hearings and Appeals (OHA) of the Department of Energy (DOE) pursuant to 10 C.F.R. Part 205, Subpart V.

In the past, purchasers of refined petroleum products during the crude oil price control period could apply for a refund from crude oil overcharge funds. 51 Fed. Reg. 27899 (August 4, 1986).(1)The DOE collected the crude oil overcharge funds through consent orders with certain firms that sold crude oil during the price control period. E.g., Berry Holding Co., 16 DOE ¶ 85,405 (1987); A. Tarricone, Inc., 15 DOE ¶ 85,495 (1987); Mountain Fuel Supply Co., 14 DOE ¶ 85,475 (1986).

The refund procedures specify that, to receive a refund, an applicant generally must: (1) document its purchase volumes; and (2) show that it was injured by alleged crude oil overcharges. An applicant who was an end-user (ultimate consumer) of petroleum products, whose business was unrelated to the petroleum industry, and who was not subject to the price regulations of the DOE or its predecessors, is presumed to have absorbed rather than passed on alleged crude oil overcharges, and is therefore presumed to have been injured. 52 Fed. Reg. 11737 at 11743 (April 10, 1987).

We have carefully reviewed STI's Application. It is based on purchases of diesel fuel that STI purchased to operate its truck fleet. As an end-user, STI is presumed injured by the crude oil overcharges and is entitled to its full allocable share of crude oil overcharge funds. Buford Wright, the former president of STI, prepared STI’s gallonage estimate based on the size of its truck fleet during the price control period and his knowledge of the average mileage and fuel consumption for the trucks. We find that STI’s estimated gallonage figure is reasonable.

As an end-user, STI is entitled to receive its full allocable share of crude oil overcharge funds. We calculated the refund amount by multiplying an applicant's approved gallonage claim by the current volumetric refund amount of $0.0016 per gallon. The total volume that we have approved for STI is 3,918,228 gallons of refined petroleum product. The total refund that we will grant STI is therefore $6,269.

STI was the subject of a Chapter 7 bankruptcy proceeding which was opened in 1987 and closed in 1993. We have been notified from the bankruptcy trustee that he has reopened the case to receive the refund. Since we believe that the appropriate recipient of restitution for overcharges incurred by STI is the bankruptcy trustee, we will direct that the refund check be sent to him.

The final deadline for the crude oil refund 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 whether sufficient crude oil overcharge funds are available for additional refunds for this and other successful applicants when we are better able to determine how much additional money will be collected from firms that have either outstanding obligations to the DOE or enforcement cases currently in litigation.

It Is Therefore Ordered That:

(1) The Application for Refund filed by Shippers Transports, Inc. (Case No. RF272-69235) is 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 a total of $6,269 from the DOE deposit fund escrow account denominated Crude Tracking Claimants 4, Account No. 999DOE010Z, maintained at the Department of the Treasury, to:

Shippers Transports, Inc.

c/o George W. Emerson, Chapter 7 Trustee

200 Jefferson, Suite 1107

Memphis, TN 38103

(3) To facilitate the payment of future refunds, Shippers Transports, Inc., shall notify the Office of Hearings and Appeals in the event that there is a change of 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

(4) The determinations made in this Decision and Order are based upon the presumed validity of the statements and documentary materials submitted by Shippers Transports, Inc. These determinations may be revoked or modified at any time upon a finding that the basis underlying the Application for Refund is incorrect.

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

George B. Breznay

Director

Office of Hearings and Appeals

Date: April 24, 1997

(1)The crude oil price control period extended from August 19, 1973 through January 27, 1981.