Case No. RK272-03962

January 7, 1997

DECISION AND ORDER

OF THE DEPARTMENT OF ENERGY

Supplemental Order

Name of Applicant: Taylorville Transit, Inc./Vandalia Bus Lines, Inc.

Date of Filing: October 11, 1996

Case Number: RK272-03962

This Decision and Order will consider an Application for Supplemental Refund filed in the Subpart V crude oil refund proceeding by Vandalia Bus Lines, Inc. (Vandalia) (1) The Application is based upon purchases of refined petroleum products made by Taylorville Transit, Inc. (Taylorville) from August 1973 to January 1981.

In the Application, Vandalia explains that it bought some of the assets of Taylorville after Taylorville declared bankruptcy. The documents submitted with the Application indicate that Vandalia purchased some buses and the lot on which Taylorville operated from the bank which held a valid lien on Taylorville’s assets after the bankruptcy filing. Vandalia did not purchase the capital stock of Taylorville.

We have a statutory duty to identify and provide restitution to injured persons. 15 U.S.C. § 4502 (b). We would be negligent in discharging that duty if we granted a refund to someone other than an identified injured person. Texaco/Huffy Gas, 22 DOE ¶ 85,220 at 88,586 n. 4. Therefore, the refund procedures we have established provide that the right to receive a refund generally remains with the owner of a firm during the price control period. Nevertheless, the right to receive a refund can be transferred to a subsequent owner of

the firm if: (i) the firm is a corporation, the entire capital stock of which was purchased by the subsequent owner; or (ii) the firm's assets were sold under an agreement that indicated, either explicitly or implicitly, that potential refunds were being transferred. Mrs. M.B. Troy, 23 DOE ¶ 85,049 (1993).

Vandalia did not purchase any of the capital stock of Taylorville. In addition, there is no indication that the right to receive future crude oil refund monies was either explicitly or implicitly included in the sales agreement. As such, the owners of the capital stock of Taylorville did not relinquish their right to receive the supplemental crude oil refund based on the company’s petroleum purchases during the price control period. We will therefore deny the Application submitted by Vandalia Bus Lines, Inc. on behalf of Taylorville Transit, Inc.

It Is Therefore Ordered That:

(1) The Application for Supplemental Refund filed by Taylorville Transit, Inc./Vandalia Bus Lines, Inc., Case No. RK272-03962, is hereby denied.

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

George B. Breznay

Director

Office of Hearings and Appeals

Date: January 7, 1997

(1)/ For information pertaining to the Supplemental Distribution of Subpart V Crude Oil Refund Monies, see State of Montana, et al., 25 DOE ¶ 85,059 (1995).