Proposed Procedures for Distribution of Remaining Crude Oil Overcharge Refunds, 57274-57276 [05-19589]
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57274
Federal Register / Vol. 70, No. 189 / Friday, September 30, 2005 / Notices
DEPARTMENT OF ENERGY
[OE Docket No. EA–281–A]
Application To Export Electric Energy;
Manitoba Hydro
Office of Electricity Delivery
and Energy Reliability, DOE.
ACTION: Notice of application.
AGENCY:
SUMMARY: Manitoba Hydro, a Canadian
Crown Corporation, has applied to
renew its authority to transmit electric
energy from the United States to Canada
pursuant to section 202(e) of the Federal
Power Act.
DATES: Comments, protests or requests
to intervene must be submitted on or
before October 31, 2005.
ADDRESSES: Comments, protests or
requests to intervene should be
addressed as follows: Office of
Electricity Delivery and Energy
Reliability, Mail Code: OE–20, U.S.
Department of Energy, 1000
Independence Avenue, SW,
Washington, DC 20585–0350 (FAX 202–
586–5860).
FOR FURTHER INFORMATION CONTACT:
Xavier Puslowski (Program Office) 202–
586–4708 or Michael Skinker (Program
Attorney) 202–586–2793.
SUPPLEMENTARY INFORMATION: Exports of
electricity from the United States to a
foreign country are regulated and
require authorization under section
202(e) of the Federal Power Act (FPA)
(16 U.S.C. 824a(e)).
On November 17, 2003, the
Department of Energy (DOE) issued
Order No. EA–281 authorizing Manitoba
Hydro to export electric energy from the
United States to Canada. That two-year
authorization will expire on November
17, 2005. On September 2, 2005,
Manitoba Hydro applied to DOE to
renew its authority to export electric
energy from the United States to Canada
for a five (5) year period.
In OE Docket No. EA–281–A,
Manitoba Hydro proposes to purchase
electric energy in Canada and wheel
that energy through transmission
facilities in the United States and return
it to Canada using certain transmission
facilities located at the U.S. border with
Canada. In addition, Manitoba Hydro
proposes to purchase electric energy
from generators, power marketers, or
federal power marketing agencies in the
U.S. and export that energy to Canada.
Manitoba Hydro will arrange for the
delivery of exports to Canada over the
international transmission facilities
owned by Basin Electric Power
Cooperative, Booneville Power
Administration, Eastern Maine Electric
Cooperative, International Transmission
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Co., Joint Owners of the Highgate
Project, Long Sault, Inc., Maine Electric
Power Company, Maine Public Service
Company, Minnesota Power, Inc.,
Minnkota Power Cooperative, Inc., New
York Power Authority, Niagara Mohawk
Power Corp., Northern States Power
Company and Vermont Electric
Transmission Co.
The construction, operation,
maintenance, and connection of each of
the international transmission facilities
to be utilized by Manitoba Hydro has
previously been authorized by a
Presidential permit issued pursuant to
Executive Order 10485, as amended.
Procedural Matters: Any person
desiring to become a party to these
proceedings or to be heard by filing
comments or protests to this application
should file a petition to intervene,
comment or protest at the address
provided above in accordance with
§§ 385.211 or 385.214 of the FERC’s
Rules of Practice and Procedures (18
CFR 385.211, 385.214). Fifteen copies of
each petition and protest should be filed
with the DOE on or before the dates
listed above.
Comments on the Manitoba Hydro
application to export electric energy to
Canada should be clearly marked with
Docket EA–281–A. Additional copies
are to be filed directly with K. Jennifer
Moroz, Barrister & Solicitor, Legal
Department, Manitoba Hydro, 820
Taylor Avenue, Winnipeg, Manitoba
Canada R3M 3T1AND David Martin
/Connelly, Bruder, Gentile & Marcoux,
L.L.P., 1701 Pennsylvania Avenue, NW.,
Suite 900, Washington, DC 20006–5805.
A final decision will be made on this
application after the environmental
impacts have been evaluated pursuant
to the National Environmental Policy
Act of 1969, and a determination is
made by the DOE that the proposed
action will not adversely impact on the
reliability of the U.S. electric power
supply system.
Copies of this application will be
made available, upon request, for public
inspection and copying at the address
provided above or by accessing the
program’s Home Page at https://
www.fe.doe.gov. Upon reaching the
Home page, select ‘‘Electricity
Regulation,’’ and then ‘‘Pending
Proceedings’’ from the options menus.
Issued in Washington, DC, on September
26, 2005.
Anthony J. Como,
Director, Permitting and Siting, , Office of
Electricity Delivery and Energy Reliability.
[FR Doc. 05–19591 Filed 9–29–05; 8:45 am]
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DEPARTMENT OF ENERGY
Proposed Procedures for Distribution
of Remaining Crude Oil Overcharge
Refunds
Office of Hearings and Appeals,
Department of Energy.
ACTION: Notice of proposed procedures
for distribution of remaining crude oil
overcharge refunds and opportunity for
comment.
AGENCY:
SUMMARY: In a May 21, 2004 Notice, the
Department of Energy (DOE) Office of
Hearings and Appeals (OHA)
announced procedures for making one
final round of refund payments in this
proceeding. However, there is ongoing
litigation that could affect the amount of
crude oil monies available for
distribution, thus making it unworkable
at this point to have a single, last round
of payments that would exhaust the
remaining crude oil refund monies. We
instead propose here to issue partial
refunds amounting to approximately
90% of the money due each eligible
claimant.
DATES: Comments must be filed in
duplicate within 30 days of publication
of this Notice in the Federal Register.
ADDRESSES: Comments should be
addressed to: Crude Oil Refund
Proceeding, Office of Hearings and
Appeals, Department of Energy,
Washington, DC 20585–1615, and
submitted electronically to
steven.goering@hq.doe.gov.
FOR FURTHER INFORMATION CONTACT:
Steven Goering, Staff Attorney, or
Richard Cronin, Assistant Director,
Office of Hearings and Appeals,
Department of Energy; telephone: 202–
287–1449, e-mail:
steven.goering@hq.doe.gov,
richard.cronin@hq.doe.gov.
SUPPLEMENTARY INFORMATION: OHA
published a Notice of final procedures
for final crude oil refunds in the Federal
Register on May 21, 2004. 69 FR 29300.
In the May 21 notice, we explained that
we would be sending notice to all
claimants (or their representatives of
record) who purchased more than
280,000 gallons of eligible petroleum
products during the relevant period. We
also stated that claimants would be
required, no later than December 31,
2004, to submit verification of the
information in our database. Shortly
after issuing the May 21 Notice, we sent
notice to claimants and received 30,873
timely submissions.
In the May 21 notice, we set forth a
plan to make one final round of refund
payments, with the intent ‘‘to distribute
all of the reserved funds to claimants
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Federal Register / Vol. 70, No. 189 / Friday, September 30, 2005 / Notices
‘insofar as practicable.’ ’’ 69 FR at 29302.
We rejected a proposal by a
representative of a few large claimants
that would have required two
disbursements, the second a ‘‘closeout
payment’’ available only to clients of
that representative and other large
claimants. Id.
Since that time, events and
proliferating litigation affecting the
windup of this crude oil refund
proceeding have precluded the
Department from proceeding with the
calculation of the per-gallon
‘‘volumetric’’ refund amount that is
necessary to a single, final payment of
refunds to all qualified applicants.
Calculating the volumetric amount
requires two fixed numbers: (1) The
amount of funds available for
distribution (‘‘the numerator’’), which is
divided by (2) the number of gallons of
eligible petroleum products purchased
during the controls period by eligible
claimants (‘‘the denominator’’).
However, as explained below, the
increasing litigation that has been
brought to bear on the proceeding may
affect both the numerator and the
denominator of the volumetric
calculation. As a result, the plan to
make a single, final round of refunds to
eligible persons is unworkable.
Among matters affecting our ability to
proceed with the calculation of a final
volumetric and proceed with a final
distribution is a decision on January 26,
2005, by the United States District Court
for the District of Columbia. In
Consolidated Edison Co. v. Abraham,
Civil Action No. 03–1991, in which the
Court awarded plaintiffs attorney’s fees
in the ‘‘amount of thirty percent (30%)
of the fund derived from the amount of
the increase in the per million-gallon
distribution over the $670 [per million
gallons] initially proposed by DOE.’’
Consolidated Edison v. Abraham, Civil
Action No. 03–1991, slip op. at 12
(January 26, 2005). Under this decision,
a significant amount of the crude oil
refund monies—approximately $10
million—would be paid directly to
plaintiffs’ counsel and not be available
for distribution to individual claimants.
The Department has filed Notices of
Appeal regarding this decision, and
plaintiffs have filed appeals of the order
insofar as it denied the full amount of
attorney’s fees they sought, which
would have amounted to 10% of the
entire ‘‘Subpart V’’ crude oil fund, i.e.,
about $28 million. See D.C. Cir. Docket
Nos. 05–5089, 05–5090, 05–5223, and
Fed. Cir. Docket Nos. 05–1309, 05–1310,
05–1450.
The same Consolidated Edison
plaintiffs have also filed actions
challenging several outstanding OHA
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Decisions granting refunds. For
example, plaintiffs are challenging the
crude oil refunds granted to the Defense
Logistics Agency and other federal and
state agencies. The district court
dismissed this challenge and plaintiffs
have appealed that decision to both the
United States Court of Appeals for the
Federal Circuit and the United States
Court of Appeals for the D.C. Circuit.
See D.C. Dist Ct. Dkt. No. 04–382, 2005
Lexis 5663 (March 31, 2005) (OHA Case
No. RF272–00011) (Fed. Cir. Dkt. No.
05–1509 and Ct. App. D.C. Dkt. No. 05–
5302). For other pending litigation
instituted by the Consolidated Edison
plaintiffs challenging OHA refund
decisions, see Lubrizol Corporation v.
Bodman, D.C. Dist Ct. Dkt. No. 05–1467
RWR (OHA Case No. RC272–00438);
Hercules, Inc v. Bodman., Fed. Cir. No.
05–1442; D.C. Cir. No. 05–5201; Dist Ct.
Dkt. 02–1507 (OHA Case No. RR272–
00204); and Chesebrough-Pond’s USA
Co. v. Bodman, Energy Management
¶ 26,752, aff’d Fed. Cir. Dkt. No. 04–
1615, 128 Fed. Apx. 153 (May 4, 2005),
(OHA Case No. RF272–97101). The
outcome of these cases affects the
amount of money available for
distribution to individual applicants.
Also, a decision concerning a Motion for
Reconsideration of OHA’s denial of a
refund in International Steel Group, Inc.
D.C. D.Ct. # 05–1466, (OHA Case No.
RR272–00321), is also in litigation. See
Mittal Steel USA ISG, Inc. v. Bodman,
D,C. Dkt. No. 05–1466. In that case, a
reversal of OHA’s decision would add
609,873,817 gallons (the number of
gallons claimed on the application) to
the denominator of the volumetric.
Because of the potential impact of the
pending litigation on both the
numerator and denominator of the
volumetric, it is not feasible to have one
final distribution of the crude oil funds
at this time.
Significant time that has elapsed since
the deadline for refund claimants to
submit verification information, such as
present addresses and other locators.
Our experience in previous crude oil
refund rounds is that this verification
information becomes quickly and
increasingly obsolete. Insofar as it is
able, OHA has resolved the issues
barring the commencement of a final
crude oil refund distribution and is in
a position to propose—in lieu of the
planned, single refund distribution—a
partial crude oil refund distribution of
the moneys that are not threatened by
the litigation referenced above. That
would encompass a vast majority of the
funds on hand. While a partial refund
increases the burden on the Department,
OHA believes that the refund claimants
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57275
deserve relief from the effects of the
ongoing litigation. To make a round of
partial crude oil refunds, OHA is issuing
this notice announcing a provisional
volumetric refund amount and defining
that portion of the crude oil monies that
would be reserved pending the
resolution of the litigation. We ask
interested parties to comment on the
proposed refund procedure. Upon
resolution of the aforementioned
litigation, we would then consider
procedures for another and final
distribution of the remaining crude oil
monies which would exhaust the crude
oil fund.
Specifically, therefore, we are
proposing to make refunds to all
claimants based upon a volumetric
calculated using a numerator of
$252,000,000, i.e., approximately 90%
of all available funds, and a
denominator of 366,324,981,322 gallons,
i.e., the number of gallons of eligible
petroleum products purchased during
the controls period by eligible claimants
(365,715,107,505 gallons) plus the
number of gallons claimed in the
application denied by OHA that is
currently the subject of pending
litigation (609,873,817 gallons). This
produces a volumetric refund of
$0.00068 and distributes approximately
90% of the money due to over 99.75%
of all eligible claimants.1
However, prudence requires that we
not distribute funds to those claimants
whose refunds are currently being
challenged by third parties in pending
litigation. Upon the conclusion of
litigation and a final upholding of our
refund awards, we propose to promptly
release the funds to the affected
claimants. The following is a list of the
individual claimants whose refunds we
propose to handle in this fashion:
RF272–00011 DEFENSE LOGISTICS
AGENCY
RF272–00350 WISCONSIN DEPT.
TRANSPORTATION
RF272–00512 STATE OF WEST
VIRGINIA
RF272–04416 STATE OF
CONNECTICUT
RF272–08074 STATE OF
CONNECTICUT
RF272–09853 WASHINGTON STATE
PATROL
RF272–11717 WASHINGTON STATE
DEPT. TRANS.
RF272–12181 NEBRASKA PUBLIC
POWER DIST.
RF272–12588 STATE OF
CONNECTICUT
1 We arrive at the volumetric refund amount by
rounding down to the fifth decimal place. Rounding
down ensures that there will be sufficient funds to
pay refunds at a given volumetric refund amount.
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Federal Register / Vol. 70, No. 189 / Friday, September 30, 2005 / Notices
RF272–17487 KENTUCKY DEPT. OF
EDUCATION
RF272–18164 STATE OF NORTH
DAKOTA
RF272–18963 STATE OF NEW
MEXICO
RF272–19364 STATE OF MISSOURI
RF272–19386 STATE OF VERMONT
RF272–19457 STATE OF SOUTH
DAKOTA
RF272–20947 LUBRIZOL
CORPORATION
RF272–23229 DISTRICT OF
COLUMBIA
RF272–23790 HERCULES, INC.
RF272–28260 WASHINGTON STATE
FERRIES
RF272–35431 MARYLAND STATE
AVIATION ADMIN.
RF272–44094 OHIO STATE HWY.
PATROL
RF272–44344 STATE OF SOUTH
CAROLINA
RF272–45477 ILLINOIS STATE TOLL
HWY. AUTH.
RF272–49283 COMMONWEALTH OF
KENTUCKY
RF272–49892 NEBRASKA ENERGY
OFFICE
RF272–49898 STATE OF KANSAS
RF272–50638 WASHINGTON STATE
DEPT OF TRANS
RF272–51829 WASHINGTON STATE
PARKS & REC.
RF272–54955 U.S. POSTAL SERVICE
RF272–56597 STATE OF
OKLAHOMA
RF272–59085 STATE OF UTAH,
ENERGY OFFICE
RF272–59907 STATE OF COLORADO
RF272–60251 STATE OF WISCONSIN
RF272–61569 STATE OF
MINNESOTA
RF272–61591 ARKANSAS HWY. &
TRANS. DEPT.
RF272–62009 STATE OF NEW
HAMPSHIRE
RF272–62522 STATE OF NEW YORK
RF272–63433 STATE OF DELAWARE
RF272–63623 MARYLAND STATE
HWY. ADMIN.
RF272–63624 MARYLAND DEPT.
GENERAL SERVICE
RF272–64195 STATE ARIZONA
DEPT. OF TRANS.
RF272–64288 STATE OF ARKANSAS
RF272–64986 STATE OF FLORIDA
RF272–65199 STATE OF IOWA
RF272–65398 STATE OF NEVADA
RF272–65470 STATE OF MICHIGAN
RF272–65524 ILLINOIS DEPT. OF
COMMERCE
RF272–65526 ALASKA DEPT OF
TRANS & PUB FAC
RF272–66878 NEW YORK TRANSIT
AUTHORITY
RF272–67007 COMMONWEALTH OF
PENNSYLVANIA
RF272–67187 STATE OF INDIANA
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RF272–67248 STATE OF
CALIFORNIA
RF272–67313 STATE OF TEXAS
RF272–67507 STATE OF VERMONT
DEPT. OF COR.
RF272–67509 STATE OF
VERMONT—TRANSPORTTN
RF272–67586 STATE OF ALABAMA
RF272–68243 NEW JERSEY TRANSIT
CORP.
RF272–68934 NEW YORK STATE
THRUWAY AUTH.
RF272–69744 STATE OF NEW
JERSEY
RF272–69948 WEST VIRGINIA HWY.
DEPT.
RF272–71331 STATE OF TENNESSEE
RF272–74169 STATE OF MAINE
RF272–75269 VIRGINIA DEPT. OF
STATE POLICE
RF272–87985 STATE OF MARYLAND
RF272–97101 CHESEBROUGHPOND’S USA CO.
RF272–98890 COMMONWEALTH OF
VIRGINIA
RG272–00507 STATE OF OHIO
RK272–00147 STATE OF MONTANA
RK272–00362 STATE OF KANSAS
RK272–03404 WYOMING DEPT. OF
TRANSPORTATN.
RK272–03418 STATE OF GEORGIA—
ENERGY RES.
RK272–04041 STATE OF NORTH
CAROLINA
RR272–00207 STATE OF TENNESSEE
OHA seeks comments on these
proposed procedures. Interested parties
should send comments to the address
shown on the present Notice. After OHA
considers the comments received, we
will issue a final Notice that will
explain how we will proceed with the
refund process. The final Notice will be
published in the Federal Register, and
it will be available on the OHA Web
site, https://www.oha.doe.gov/.
Issued in Washington, DC on September
26, 2005.
George B. Breznay,
Director, Office of Hearings and Appeals.
[FR Doc. 05–19589 Filed 9–29–05; 8:45 am]
BILLING CODE 6450–01–P
DEPARTMENT OF ENERGY
Bonneville Power Administration
Availability of the Bonneville
Purchasing Instructions (BPI) and
Bonneville Financial Assistance
Instructions (BFAI)
Bonneville Power
Administration (BPA), DOE.
ACTION: Notice of document availability.
AGENCY:
SUMMARY: Copies of the Bonneville
Purchasing Instructions (BPI), which
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contain the policy and establish the
procedures that BPA uses in the
solicitation, award, and administration
of its purchases of goods and services,
including construction, are available in
printed form for $30, or without charge
at the following Internet address:
https://www.bpa.gov/corporate/
business/.
Copies of the Bonneville Financial
Assistance Instructions (BFAI), which
contain the policy and establish the
procedures that BPA uses in the
solicitation, award, and administration
of financial assistance instruments
(principally grants and cooperative
agreements), are available in printed
form for $15 each, or available without
charge at the following Internet address:
https://www.bpa.gov/corporate/
business/.
ADDRESSES: Unbound copies of the BPI
or BFAI may be obtained by sending a
check for the proper amount to the Head
of the Contracting Activity, Routing CK–
4, Bonneville Power Administration, PO
Box 3621, Portland, Oregon 97208–
3621.
FOR FURTHER INFORMATION CONTACT:
Manager, Corporate Communications,
1–800–622–4519.
SUPPLEMENTARY INFORMATION: BPA was
established in 1937 as a Federal Power
Marketing Agency in the Pacific
Northwest. BPA operations are financed
from power revenues rather than annual
appropriations. BPA’s purchasing
operations are conducted under 16
U.S.C. 832 et seq. and related statutes.
Pursuant to these special authorities, the
BPI is promulgated as a statement of
purchasing policy and as a body of
interpretative regulations governing the
conduct of BPA purchasing activities. It
is significantly different from the
Federal Acquisition Regulation, and
reflects BPA’s private sector approach to
purchasing the goods and services that
it requires. BPA’s financial assistance
operations are conducted under 16
U.S.C. 839 et seq. and 16 U.S.C. 839 et
seq. The BFAI express BPA’s financial
assistance policy. The BFAI also
comprise BPA’s rules governing
implementation of the principles
provided in the following OMB
circulars:
A–21 Cost Principles for Educational
Institutions.
A–87 Cost Principles for State, Local
and Indian Tribal Governments.
A–102 Grants and Cooperative
Agreements with State and Local
Governments.
A–110 Uniform Administrative
Requirements for Grants and Other
Agreements with Institutions of
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Agencies
[Federal Register Volume 70, Number 189 (Friday, September 30, 2005)]
[Notices]
[Pages 57274-57276]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-19589]
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DEPARTMENT OF ENERGY
Proposed Procedures for Distribution of Remaining Crude Oil
Overcharge Refunds
AGENCY: Office of Hearings and Appeals, Department of Energy.
ACTION: Notice of proposed procedures for distribution of remaining
crude oil overcharge refunds and opportunity for comment.
-----------------------------------------------------------------------
SUMMARY: In a May 21, 2004 Notice, the Department of Energy (DOE)
Office of Hearings and Appeals (OHA) announced procedures for making
one final round of refund payments in this proceeding. However, there
is ongoing litigation that could affect the amount of crude oil monies
available for distribution, thus making it unworkable at this point to
have a single, last round of payments that would exhaust the remaining
crude oil refund monies. We instead propose here to issue partial
refunds amounting to approximately 90% of the money due each eligible
claimant.
DATES: Comments must be filed in duplicate within 30 days of
publication of this Notice in the Federal Register.
ADDRESSES: Comments should be addressed to: Crude Oil Refund
Proceeding, Office of Hearings and Appeals, Department of Energy,
Washington, DC 20585-1615, and submitted electronically to
steven.goering@hq.doe.gov.
FOR FURTHER INFORMATION CONTACT: Steven Goering, Staff Attorney, or
Richard Cronin, Assistant Director, Office of Hearings and Appeals,
Department of Energy; telephone: 202-287-1449, e-mail:
steven.goering@hq.doe.gov, richard.cronin@hq.doe.gov.
SUPPLEMENTARY INFORMATION: OHA published a Notice of final procedures
for final crude oil refunds in the Federal Register on May 21, 2004. 69
FR 29300. In the May 21 notice, we explained that we would be sending
notice to all claimants (or their representatives of record) who
purchased more than 280,000 gallons of eligible petroleum products
during the relevant period. We also stated that claimants would be
required, no later than December 31, 2004, to submit verification of
the information in our database. Shortly after issuing the May 21
Notice, we sent notice to claimants and received 30,873 timely
submissions.
In the May 21 notice, we set forth a plan to make one final round
of refund payments, with the intent ``to distribute all of the reserved
funds to claimants
[[Page 57275]]
`insofar as practicable.' '' 69 FR at 29302. We rejected a proposal by
a representative of a few large claimants that would have required two
disbursements, the second a ``closeout payment'' available only to
clients of that representative and other large claimants. Id.
Since that time, events and proliferating litigation affecting the
windup of this crude oil refund proceeding have precluded the
Department from proceeding with the calculation of the per-gallon
``volumetric'' refund amount that is necessary to a single, final
payment of refunds to all qualified applicants. Calculating the
volumetric amount requires two fixed numbers: (1) The amount of funds
available for distribution (``the numerator''), which is divided by (2)
the number of gallons of eligible petroleum products purchased during
the controls period by eligible claimants (``the denominator'').
However, as explained below, the increasing litigation that has been
brought to bear on the proceeding may affect both the numerator and the
denominator of the volumetric calculation. As a result, the plan to
make a single, final round of refunds to eligible persons is
unworkable.
Among matters affecting our ability to proceed with the calculation
of a final volumetric and proceed with a final distribution is a
decision on January 26, 2005, by the United States District Court for
the District of Columbia. In Consolidated Edison Co. v. Abraham, Civil
Action No. 03-1991, in which the Court awarded plaintiffs attorney's
fees in the ``amount of thirty percent (30%) of the fund derived from
the amount of the increase in the per million-gallon distribution over
the $670 [per million gallons] initially proposed by DOE.''
Consolidated Edison v. Abraham, Civil Action No. 03-1991, slip op. at
12 (January 26, 2005). Under this decision, a significant amount of the
crude oil refund monies--approximately $10 million--would be paid
directly to plaintiffs' counsel and not be available for distribution
to individual claimants. The Department has filed Notices of Appeal
regarding this decision, and plaintiffs have filed appeals of the order
insofar as it denied the full amount of attorney's fees they sought,
which would have amounted to 10% of the entire ``Subpart V'' crude oil
fund, i.e., about $28 million. See D.C. Cir. Docket Nos. 05-5089, 05-
5090, 05-5223, and Fed. Cir. Docket Nos. 05-1309, 05-1310, 05-1450.
The same Consolidated Edison plaintiffs have also filed actions
challenging several outstanding OHA Decisions granting refunds. For
example, plaintiffs are challenging the crude oil refunds granted to
the Defense Logistics Agency and other federal and state agencies. The
district court dismissed this challenge and plaintiffs have appealed
that decision to both the United States Court of Appeals for the
Federal Circuit and the United States Court of Appeals for the D.C.
Circuit. See D.C. Dist Ct. Dkt. No. 04-382, 2005 Lexis 5663 (March 31,
2005) (OHA Case No. RF272-00011) (Fed. Cir. Dkt. No. 05-1509 and Ct.
App. D.C. Dkt. No. 05-5302). For other pending litigation instituted by
the Consolidated Edison plaintiffs challenging OHA refund decisions,
see Lubrizol Corporation v. Bodman, D.C. Dist Ct. Dkt. No. 05-1467 RWR
(OHA Case No. RC272-00438); Hercules, Inc v. Bodman., Fed. Cir. No. 05-
1442; D.C. Cir. No. 05-5201; Dist Ct. Dkt. 02-1507 (OHA Case No. RR272-
00204); and Chesebrough-Pond's USA Co. v. Bodman, Energy Management ]
26,752, aff'd Fed. Cir. Dkt. No. 04-1615, 128 Fed. Apx. 153 (May 4,
2005), (OHA Case No. RF272-97101). The outcome of these cases affects
the amount of money available for distribution to individual
applicants. Also, a decision concerning a Motion for Reconsideration of
OHA's denial of a refund in International Steel Group, Inc. D.C. D.Ct.
05-1466, (OHA Case No. RR272-00321), is also in litigation.
See Mittal Steel USA ISG, Inc. v. Bodman, D,C. Dkt. No. 05-1466. In
that case, a reversal of OHA's decision would add 609,873,817 gallons
(the number of gallons claimed on the application) to the denominator
of the volumetric. Because of the potential impact of the pending
litigation on both the numerator and denominator of the volumetric, it
is not feasible to have one final distribution of the crude oil funds
at this time.
Significant time that has elapsed since the deadline for refund
claimants to submit verification information, such as present addresses
and other locators. Our experience in previous crude oil refund rounds
is that this verification information becomes quickly and increasingly
obsolete. Insofar as it is able, OHA has resolved the issues barring
the commencement of a final crude oil refund distribution and is in a
position to propose--in lieu of the planned, single refund
distribution--a partial crude oil refund distribution of the moneys
that are not threatened by the litigation referenced above. That would
encompass a vast majority of the funds on hand. While a partial refund
increases the burden on the Department, OHA believes that the refund
claimants deserve relief from the effects of the ongoing litigation. To
make a round of partial crude oil refunds, OHA is issuing this notice
announcing a provisional volumetric refund amount and defining that
portion of the crude oil monies that would be reserved pending the
resolution of the litigation. We ask interested parties to comment on
the proposed refund procedure. Upon resolution of the aforementioned
litigation, we would then consider procedures for another and final
distribution of the remaining crude oil monies which would exhaust the
crude oil fund.
Specifically, therefore, we are proposing to make refunds to all
claimants based upon a volumetric calculated using a numerator of
$252,000,000, i.e., approximately 90% of all available funds, and a
denominator of 366,324,981,322 gallons, i.e., the number of gallons of
eligible petroleum products purchased during the controls period by
eligible claimants (365,715,107,505 gallons) plus the number of gallons
claimed in the application denied by OHA that is currently the subject
of pending litigation (609,873,817 gallons). This produces a volumetric
refund of $0.00068 and distributes approximately 90% of the money due
to over 99.75% of all eligible claimants.\1\
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\1\ We arrive at the volumetric refund amount by rounding down
to the fifth decimal place. Rounding down ensures that there will be
sufficient funds to pay refunds at a given volumetric refund amount.
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However, prudence requires that we not distribute funds to those
claimants whose refunds are currently being challenged by third parties
in pending litigation. Upon the conclusion of litigation and a final
upholding of our refund awards, we propose to promptly release the
funds to the affected claimants. The following is a list of the
individual claimants whose refunds we propose to handle in this
fashion:
RF272-00011 DEFENSE LOGISTICS AGENCY
RF272-00350 WISCONSIN DEPT. TRANSPORTATION
RF272-00512 STATE OF WEST VIRGINIA
RF272-04416 STATE OF CONNECTICUT
RF272-08074 STATE OF CONNECTICUT
RF272-09853 WASHINGTON STATE PATROL
RF272-11717 WASHINGTON STATE DEPT. TRANS.
RF272-12181 NEBRASKA PUBLIC POWER DIST.
RF272-12588 STATE OF CONNECTICUT
[[Page 57276]]
RF272-17487 KENTUCKY DEPT. OF EDUCATION
RF272-18164 STATE OF NORTH DAKOTA
RF272-18963 STATE OF NEW MEXICO
RF272-19364 STATE OF MISSOURI
RF272-19386 STATE OF VERMONT
RF272-19457 STATE OF SOUTH DAKOTA
RF272-20947 LUBRIZOL CORPORATION
RF272-23229 DISTRICT OF COLUMBIA
RF272-23790 HERCULES, INC.
RF272-28260 WASHINGTON STATE FERRIES
RF272-35431 MARYLAND STATE AVIATION ADMIN.
RF272-44094 OHIO STATE HWY. PATROL
RF272-44344 STATE OF SOUTH CAROLINA
RF272-45477 ILLINOIS STATE TOLL HWY. AUTH.
RF272-49283 COMMONWEALTH OF KENTUCKY
RF272-49892 NEBRASKA ENERGY OFFICE
RF272-49898 STATE OF KANSAS
RF272-50638 WASHINGTON STATE DEPT OF TRANS
RF272-51829 WASHINGTON STATE PARKS & REC.
RF272-54955 U.S. POSTAL SERVICE
RF272-56597 STATE OF OKLAHOMA
RF272-59085 STATE OF UTAH, ENERGY OFFICE
RF272-59907 STATE OF COLORADO
RF272-60251 STATE OF WISCONSIN
RF272-61569 STATE OF MINNESOTA
RF272-61591 ARKANSAS HWY. & TRANS. DEPT.
RF272-62009 STATE OF NEW HAMPSHIRE
RF272-62522 STATE OF NEW YORK
RF272-63433 STATE OF DELAWARE
RF272-63623 MARYLAND STATE HWY. ADMIN.
RF272-63624 MARYLAND DEPT. GENERAL SERVICE
RF272-64195 STATE ARIZONA DEPT. OF TRANS.
RF272-64288 STATE OF ARKANSAS
RF272-64986 STATE OF FLORIDA
RF272-65199 STATE OF IOWA
RF272-65398 STATE OF NEVADA
RF272-65470 STATE OF MICHIGAN
RF272-65524 ILLINOIS DEPT. OF COMMERCE
RF272-65526 ALASKA DEPT OF TRANS & PUB FAC
RF272-66878 NEW YORK TRANSIT AUTHORITY
RF272-67007 COMMONWEALTH OF PENNSYLVANIA
RF272-67187 STATE OF INDIANA
RF272-67248 STATE OF CALIFORNIA
RF272-67313 STATE OF TEXAS
RF272-67507 STATE OF VERMONT DEPT. OF COR.
RF272-67509 STATE OF VERMONT--TRANSPORTTN
RF272-67586 STATE OF ALABAMA
RF272-68243 NEW JERSEY TRANSIT CORP.
RF272-68934 NEW YORK STATE THRUWAY AUTH.
RF272-69744 STATE OF NEW JERSEY
RF272-69948 WEST VIRGINIA HWY. DEPT.
RF272-71331 STATE OF TENNESSEE
RF272-74169 STATE OF MAINE
RF272-75269 VIRGINIA DEPT. OF STATE POLICE
RF272-87985 STATE OF MARYLAND
RF272-97101 CHESEBROUGH-POND'S USA CO.
RF272-98890 COMMONWEALTH OF VIRGINIA
RG272-00507 STATE OF OHIO
RK272-00147 STATE OF MONTANA
RK272-00362 STATE OF KANSAS
RK272-03404 WYOMING DEPT. OF TRANSPORTATN.
RK272-03418 STATE OF GEORGIA--ENERGY RES.
RK272-04041 STATE OF NORTH CAROLINA
RR272-00207 STATE OF TENNESSEE
OHA seeks comments on these proposed procedures. Interested parties
should send comments to the address shown on the present Notice. After
OHA considers the comments received, we will issue a final Notice that
will explain how we will proceed with the refund process. The final
Notice will be published in the Federal Register, and it will be
available on the OHA Web site, https://www.oha.doe.gov/.
Issued in Washington, DC on September 26, 2005.
George B. Breznay,
Director, Office of Hearings and Appeals.
[FR Doc. 05-19589 Filed 9-29-05; 8:45 am]
BILLING CODE 6450-01-P