Case No. RF304-3518

May 27, 1999

DECISION AND ORDER

OF THE DEPARTMENT OF ENERGY

Applications for Refund

Names of Petitioners:Atlantic Richfield Company/

Tony Scotta's ARCO, et al.

Dates of Filings: July 8, 1988, et al.

Case Numbers: RF304-3518, et al.

This Decision and Order considers and grants 13 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).(1) 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. 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 14,599,116 gallons. The sum of the refunds approved in this Decision is $24,282, representing $10,730 in principal and $13,552 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 13 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 and funded by Atlantic Richfield Company, (Consent Order No. RARH00001Z) 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:May 27, 1999

(1)

ARCO remitted a total of $68,035,516 to the DOE, of which $21,647,540 was associated with ARCO's alleged violations in the sale of crude oil. Those monies are being distributed in accordance with the crude oil refund procedures adopted in ARCO, 17 DOE at 88,150.

Appendix
CASE NO.APPLICANT CONTACT STREET CITY/STATE VOLUME PRINCIPAL INTEREST REFUND
RF304-03518 TONY SCOTTA'S ARCOC/O SHIRLEY SCOTTA RR 1, BOX 1548ELLIOTSBURG, PA 170249752626,235 $460 $581 $1,041
RF304-13666 TFCO, INC.C/O BILL ROSSBAUER OR WILSON, KELLER & ASSOCIATESP.O. BOX 22145MEMPHIS, TN 381223,418,974 $2,513 $3,174 $5,687
RF304-14767 BILL DAVIS ARCO SERVICEC/O CLAIRE D. DAULTON 4715 WOODSIDE DR.ARLINGTON, TX 760131,773,327 $1,303 $1,646 $2,949
RF304-14865 RAFT RIVER STOREOR PRICE H. SIMON 2203 OVERLAND AVE.BURLEY, ID 83318360,657 $265 $335 $600
RF304-14866 MOTT'S ARCOOR PHILLIP L. MOTT 726 FRONT ST.OLEAN, NY 14760452,669 $333 $421 $754
RF304-14869 SWECKER'S ARCOOR ORVILLE SWECKER 16679 ROGERS FERRYMEADVILLE, PA 16335400,196 $294 $371 $665
RF304-14870 VIRG'S ARCOOR VIRGIL PARTENBERRY 4681 N. HWY. 35LA PORTE, IN 46350771,425 $567 $716 $1,283
RF304-14871 VIRG'S ARCO SERVICEOR VIRGIL PARTENBERRY 4681 N. HWY. 35LA PORTE, IN 46350274,700 $202 $255 $457
RF304-14872 NICK'S ARCOOR NICK ABATECOLA 6141 N. RIVER RD.DES PLAINES, IL 60016618,065 $454 $573 $1,027
RF304-14874 MIKE'S ARCO SERVICEOR MICHAEL T. GRIMES 2495 PINTO LANENORCO, CA 91760646,601 $475 $600 $1,075
RF304-14876 HUARD'S ARCOC/O MRS. HUARD 3710 KERN RD.YAKIMA, WA 98902219,350 $161 $203 $364
RF304-15241 TONNELLE SERVICE& JOSEPH MAHAN RICHARD PUSCHELP.O. BOX 359FORKED RIVER, NJ 08731339,540 $250 $316 $566
RF304-15429 DALLAS & D'AMICO, INC. 3265 MCKINLEY AVE.COLUMBUS, OH 432044,697,377 $3,453 $4,361 $7,814
TOTALS: 13       14,599,116 $10,730 $13,552 $24,282
                 


Last Updated on 5/27/1999
By OHA