Case No. RF304-12213

September 29, 1999

DECISION AND ORDER

OF THE DEPARTMENT OF ENERGY

Applications for Refund

Names of Petitioners:Atlantic Richfield Company/

Maislin Transport, et al.

Dates of Filings: April 18, 1991, et al.

Case Numbers: RF304-12213, et al.

This Decision and Order grants 16 Applicants refunds from the monies that the Atlantic Richfield Company (ARCO) remitted to the Department of Energy. Under the terms of a June 27, 1985 Consent Order entered into between the DOE and ARCO, ARCO remitted $46,387,976, plus accrued interest to the DOE. The Consent Order settled, except for certain matters specifically excluded, all claims regarding ARCO's compliance with the Federal Petroleum Price and Allocation Regulations during the period January 1, 1973, through January 27, 1981 (the consent order period). On January 28, 1988, the Office of Hearings and Appeals of the DOE instituted special refund procedures for the distribution of those funds. Atlantic Richfield Co., 17 DOE ¶ 85,069 (1988) (ARCO). The special refund procedures allow purchasers of ARCO products which were regulated during the period of price controls (e.g., motor gasoline, propane, middle distillates, and natural gas liquid products) to file Applications for Refund from the ARCO consent order fund. Refunds can be sought only for regulated products purchased between March 6, 1973, and January 27, 1981, the end of the period of petroleum price controls. See id. at 88,143 n.5.

I. Background

Evaluating applications in this proceeding involves both an allocation of an appropriate portion of the consent order fund to each applicant and an evaluation of economic harm or injury suffered by that applicant. Id. at 88,151; see Sid Richardson Carbon & Gasoline Co., 12 DOE ¶ 85,054 (1984). To determine the portion of the fund to be allocated to each claimant, we assume that any overcharges were distributed equally over every gallon of regulated products sold by ARCO during the consent order period and allocated the consent order monies accordingly, i.e., by dividing the value of the fund by ARCO's total sales of covered products during the period. ARCO at 88,151. This calculation produces a "volumetric factor" of $0.000735 per gallon. When that factor is multiplied by an applicant's total eligible purchases, the result is a claimant's allocable share of the consent order fund. Unless an applicant demonstrates that it was disproportionately affected by ARCO's alleged practices, it cannot receive a refund greater than this allocable share of the consent order fund. Id. at 88,151.

Resellers and retailers claiming refunds of less than $5,000 in principal, those who have elected to limit their refunds to $5,000, and end users are presumed to have been injured by ARCO's alleged overcharges and are not required to submit a detailed showing of injury. Mid-level resellers and retailers whose full volumetric refunds exceed $12,193 may receive 41 percent of their full volumetric share up to $50,000 without providing detailed demonstrations of economic injury. Id. at 88,151-12. To qualify for a refund, such an applicant must submit evidence of its volume of purchases of ARCO products during the consent order period.

II. Analysis

All of the applicants listed in the Appendix to this Decision and Order are either end-users or resellers and retailers that have claimed refunds of less than $5,000 (principal amount), or are mid- level resellers who have elected to limit their refunds to the greater of $5,000 or 41 percent of their volumetric share. Each applicant has submitted satisfactory proof of its volume of purchases during the refund period.

We have reviewed these applications and have found them meritorious.(1) Accordingly, we find that each of the firms listed in the Appendix should receive a refund from the ARCO consent order fund. In addition, each firm will receive a proportionate share of the interest accrued on the consent order funds. The purchases that form the basis for the refunds granted in this Decision total 12,948,553 gallons. The sum of the refunds approved in this Decision is $21,889, representing $9,517 in principal plus $12,382 in interest.

Although we have carefully examined each applicant's claim and supporting data, the determinations reached in this Decision are based on the representations made in the applications. If the factual basis underlying any of our determinations in this Decision is later shown to be inaccurate, this Office has the authority to order appropriate remedial action, including rescission or reduction of the refunds ordered.

It Is Therefore Ordered That:

(1) The 16 Applications for Refund specified in the Appendix to this Decision and Order are hereby granted 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 from the DOE deposit fund escrow account maintained at the Department of Treasury, Product Tracking-C, 999DOE035W, the amounts listed in the Appendix to the appropriate claimants. For each applicant, the checks shall be made payable to the Applicant and shall be sent to the address listed on the Appendix.

(3) The determinations made in this Decision and Order are based upon the presumed validity of statements and documentary material submitted by the applicants. The determinations may be revoked or modified at any time upon a finding that the factual basis underlying any of the Applications for Refund is incorrect.

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

George B. Breznay

Director

Office of Hearings and Appeals

Date:September 29, 1999

(1)One individual applied on behalf of two retail outlets: Hwy 99 ARCO (RF304-9086) and Pake Sales, Inc. (RF304-14510). The two applications sought refunds based upon 2,416,974 gallons and 931,535 gallons of petroleum products, respectively. On April 26, 1990, we granted Hwy 99 ARCO a refund based upon purchases of 3,040,843 gallons of petroleum products. That refund included a portion of the individual's Pake Sales purchases. In the present case, we have reduced the refund approved for Pake Sales by the amount that was included in the prior decision.

Appendix
RASID APPNAME CONTACT ADDRESS CITY/STATE VOLUME PRINCPL INTERST REFUND
RF304-12213 MAISLIN TRANSPORTOR LK, INC. P.O. BOX 234EARLINGTON, KY 424101,359,456 $999 $1,300 $2,299
RF304-12214 MAISLIN TRANSPORTATIONOR LK, INC. P.O. BOX 234EARLINGTON, KY 42410688,133 $506 $658 $1,164
RF304-14510 PAKE SALES, INC.OR KENNETH L. HEUVEL 205 N. LOTUS BEACH DR.PORTLAND, OR 972178023326,303 $240 $312 $552
RF304-14706 NOMAN'S MINI MARKET, INC.OR NOMAN KHALIL 3829 COLLEGE ST.CULVER CITY, CA 902322,219,662 $1,631 $2,122 $3,753
RF304-14782 DODGE FOUNDRY & MACHINE CO.OR LOIS COFF 546 CLAVEY CT.HIGHLAND PARK, IL 6003545271,795,000 $1,319 $1,716 $3,035
RF304-14854 SARKIS JANOIAN 1918 CALAFIA ST.GLENDALE, CA 91208494,678 $364 $474 $838
RF304-14855 ARCO CERTIFIED SERVICEOR SANCHAI LAOBOONMI 110 FAIRWAY CIRCLEPOCATELLO, ID 832012006564,802 $415 $540 $955
RF304-14856 ZIGO'S ARCO SERVICE STATION OR M. EASTLICK, P. ZIGO & E. ZIGO2 KREMIS RD.GREENVILLE, PA 16125735,002 $540 $703 $1,243
RF304-14858 RON'S RICHFIELD SERVICEOR ROLAND COOMES, II 429 ELVERTA RD.ELVERTA, CA 956269003331,768 $244 $317 $561
RF304-14861 EAMES SERVICE STATIONOR RICHARD W. EAMES 112 W. RIDGE ST.LANSFORD, PA 18232289,771 $213 $277 $490
RF304-14877 LEEMON'S AUTOMOTIVE & GROCERYOR LILLIAN LEEMON 297 KLINE RD.BELLINGHAM, WA 982267708256,460 $188 $245 $433
RF304-14881 COOL ARCO SERVICEOR KENNETH C. COOL 21527 WAITE MILL RD.GRANITE FALLS, WA 982529793393,047 $289 $376 $665
RF304-14882 GUTHRIE'S ARCOOR KENNETH GUTHRIE 437 RACE ST.WAYNESBURG, PA 153701457394,518 $290 $377 $667
RF304-14883 RUSSELL COMBS GARAGEOR NORMA L. COMBS 777 WASHINGTON ST.WHITMAN, MA 02382374,974 $276 $359 $635
RF304-14899 SUNSHINE ARCO SERVICEOR BERKLEY W. SIBLEY 1132 E. 9TH ST.CASA GRANDE, AZ 852223602215,350 $158 $206 $364
RF304-15036 PULVER GAS & OIL CO., INC.OR JOHN YEAGER OR ESTATE OF FRANK GALLI90 STATE ST. #1522ALBANY, NY 122072,509,629 $1,845 $2,400 $4,245
TOTALS: 16       12,948,553 $9,517 $12,382 $21,899


Last Updated on 9/29/1999
By OHA