Case Nos. RF272-94783, et al.
August 29, 1997
DECISION AND ORDER
OF THE DEPARTMENT OF ENERGY
Applications for Refund
Names of Petitioners: Farmers Oil Co. of Outlook, et al.
Dates of Filings: July 6, 1993, et al.
Case Numbers: RF272-94783, et al.
This Decision and Order will consider Applications for Refund filed by nine claimants that purchased refined petroleum products during the period August 19, 1973 through January 27, 1981. 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.
Two of the nine cooperatives also resold petroleum products to non-members.(1) In the Subpart V refund proceedings, we have treated a cooperatives 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 nine 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 35,445,203 gallons and the sum of the refunds granted is $56,712.
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: August 29, 1997
(1)Farmers Oil Company of Outlook (RF272-94783) resold 1 percent to non-members; and Farmers Elevator and Co-Op Association (RF272-95206) resold 5 percent.
Appendix
CASE NO. APPLICANT CONTACT STREET ADDRESS CITY/STATE VOLUME REFUND RF272-94783 FARMERS OIL CO. OF OUTLOOK C/O TODD NELSON P.O. BOX 275 OUTLOOK, MT 59252 2,951,449 $4,722 RF272-94792 OLTON GRAIN COOPERATIVE, INC. C/O E.W. RICHARDS P.O. DRAWER M OLTON, TX 79064 3,226,662 $5,163 RF272-94793 FARMERS COOPERATIVE ASSN. C/O E.L. FOLLIS JR. BOX 519 O'DONNELL, TX 79351 6,164,374 $9,863 RF272-94794 OTTAWA LAKE CO-OP ELEVATOR CO. C/O DAN KELLER 7433 LYNCH RD. OTTAWA LAKE, MI 49267 1,073,839 $1,718 RF272-95206 FARMERS ELEVATOR & CO-OP ASSN. C/O JIMMY PATOCKA BOX 278 HENNESSEY, OK 73742 5,059,612 $8,095 RF272-95208 FARMERS UNION OIL CO. C/O EDWARD RITTER BOX 449 JORDAN, MT 59337 4,359,880 $6,976 RF272-95209 ASSOCIATED COTTON GROWERS C/O RANDY ARNOLD P.O. BOX 499 CROSBYTON, TX 79322 1,039,361 $1,663 RF272-95214 FARMERS COOPERATIVE - EL CAMPO C/O APRIL GRAVES P.O. BOX 826 EL CAMPO, TX 77437 2,820,437 $4,513 RF272-95222 PLATTE COOPERATIVE ASSN. C/O GENE GUKEISEN BOX 577 PLATTE, SD 57369 8,749,589 $13,999 Totals: 9 35,445,203 $56,712
Last Updated on 8/29/97
By OHA