Case No. RF300-21837
May 5, 1997
DECISION AND ORDER
OF THE DEPARTMENT OF ENERGY
Application for Refund
Name of Petitioner: Gulf Oil Corporation/Jeanes Gulf Service
Date of Filing: April 28, 1997
Case Number: RF300-21837
This Decision and Order renders a determination upon the merits of an Application for Refund filed by Jack Simms, Jr. of Jeanes Gulf Service, Case No. RF300-00226. This Application for Refund was previously granted on April 5, 1989. Gulf Oil Corporation/Jenkins Gulf Station, Case No. RF300-00200 (April 5, 1989).
On July 25, 1985, the Economic Regulatory Administration of the Department of Energy (DOE) filed a Petition with the Office of Hearings and Appeals (OHA) requesting that the OHA formulate and implement procedures for distributing funds obtained through a consent order with Gulf Oil Corporation (Gulf). See 10 C.F.R. Part 205, Subpart V. The consent order resolved DOE allegations that Gulf violated the mandatory petroleum regulations in its sales of crude oil and refined petroleum products from January 1, 1973 through January 27, 1981 (the consent order period). On September 8, 1987, the OHA issued a Decision and Order setting forth final procedures for disbursing the portion of the Gulf settlement fund attributable to Gulf's sales of refined petroleum products. Gulf Oil Corp., 16 DOE ¶ 85,381 (1987) (Gulf). In accordance with the goals of 10 C.F.R. Part 205, Subpart V, Gulf implements a process for refunding the consent order funds to purchasers of Gulf refined petroleum products who are able to demonstrate that they were injured as a result of Gulf's alleged overcharges.
In Case No. RF300-00226, Mr. Simms requested a refund for 2,470,000 gallons of Gulf products purchased by Jeanes Gulf Service from March 1973 to January 1981. Mr. Simms did not provide a copy of his Gulf Customer Listing, but stated that he purchased approximately 26,000 gallons per month from Gulf during the 95- month refund period (26,000 gallons/month x 95 months = 2,470,000
gallons). Through his filing service, Energy Refunds, Mr. Simms alleged that, as owner of Jeanes Gulf Service during the refund period, he was entitled to receive full restitution for the stations Gulf purchases. Accordingly, on April 5, 1989, we granted a refund in the Gulf Special Refund proceeding to Jeanes Gulf Service in the amount of $2,050 (2,470,000 gallons x $.00083 = $2,050).(1) The check was issued to Jeanes Gulf Service OR Energy Refunds, Inc. and sent directly to the filing service.
We have now determined that Mr. Simms did not own Jeanes Gulf Service for the majority of the refund period. Instead, Mr. Simms purchased the station from Gerald Jean in August 1979. (2) As such, Mr. Simms was only entitled to receive refund monies based on the Gulf purchases made by Jeanes Gulf Service after August 1979, or 17 months of the 95-month refund period (September 1979 to January 1981). Presuming that Mr. Simms is correct in his assertion that he purchased 26,000 gallons per month during this time period, we have determined that he is entitled to receive a refund based on 442,000 gallons of Gulf products (17 months x 26,000 gallons/month = 442,000 gallons). This means Mr. Simms rightful refund amount in 1989 was actually $367 (442,000 gallons x $.00083/gallons = $367) rather than the $2,050 granted in Case No. RF300-00226.
Accordingly, we will rescind a portion of the refund Mr. Simms, as owner of Jeanes Gulf Service, received in 1989. The total amount rescinded from Mr. Simms is $1,683 (2,470,000 gallons - 442,000 gallons = 2,028,000 gallons; 2,028,000 gallons x .00083 = $1,683).
It Is Therefore Ordered That:
(1) The Decision and Order issued by the DOE on April 5, 1989, Gulf Oil Corporation/Jenkins Gulf Station, Case No. RF300-00200, is hereby rescinded with respect to Jeanes Gulf Service, Case No. RF300-00226. For purposes of the rescission, the case has been redesignated RF300-21837. The total amount rescinded from Jeanes Gulf Service is $1,683. This amount shall be remitted to the Department of Energy as instructed in Paragraph (2) of this Order.
(2) With respect to Case No. RF300-00226, Jack Simms of Jeanes Gulf Service applied for and received a crude oil refund with the assistance of Energy Refunds, Inc., a private filing service located in Hardin, Kentucky. Mr. Jack Simms, Jeanes Gulf Service and Energy Refunds, Inc. are hereby jointly and severally directed to remit the sum of $1,683 within thirty (30) days of this Decision and Order. The check shall be made payable to the U.S. Department of Energy, shall prominently display the redesignated Case No., RF300-21837, and shall be sent to:
Department of Energy
Office of the Controller
Cash Control Branch
P.O. Box 500
Germantown, MD 20874
(3) In the event that these payments are 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.
(4) Upon notification by the Office of the Controller of the receipt of these funds, the Director of Special Accounts and Payroll, Office of the Departmental Accounting and Financial Systems Development, Office of the Controller of the Department of Energy, shall deposit these funds into the deposit fund escrow account maintained at the Department of the Treasury and funded by Gulf Oil Corporation, Consent Order No. RGFA00001Z.
(5) This is a final Order of the Department of Energy.
George B. Breznay
Director
Office of Hearings and Appeals
Date: May 5, 1997
(1)The total volumetric on April 5, 1989 was $.00083, which was computed by adding the principal volumetric, $.00064, to the current interest volumetric of $.00019.
(2)See Record of Telephone Conversation between Michelle Hall, OHA Staff Analyst, and Eric T. Small, President of Energy Refunds, Inc., dated June 2, 1994.