Office of Hearings and Appeals; Proposed Implementation of Special Refund Procedures, 26083-26085 [E7-8771]
Download as PDF
Federal Register / Vol. 72, No. 88 / Tuesday, May 8, 2007 / Notices
Register on Monday, March 12, 2007 (72
FR 11092—11198).
ADDRESSES: U.S. Army Corps of
Engineers, Attn: CECW–CO, 441 G
Street NW., Washington, DC 20314–
1000.
FOR FURTHER INFORMATION CONTACT: Mr.
David Olson at 202–761–4922 or by email at david.b.olson@usace.army.mil or
access the U.S. Army Corps of Engineers
Regulatory Home Page at https://
www.usace.army.mil/inet/functions/cw/
cecwo/reg/.
On page 11172, third column, in the
first sentence of the fourth full
paragraph (the preamble discussion of
the definition of ‘‘discharge’’), delete the
text following the word ‘‘clarify’’ and
replace it with the following: ‘‘That this
term is used in the NWPs to refer to a
discharge of dredged or fill material.’’
Delete the second sentence of this
paragraph.
On page 11185, first column, in Note
2 of NWP 24, replace the reference to 33
CFR 322.3(a)(2) with 33 CFR 322.4(b).
On page 11194, third column, in the
last sentence of paragraph (a) of general
condition 27 insert the phrase ‘‘until
either’’ between the word ‘‘activity’’ and
the colon. In the first sentence of
subparagraph (a)(1) of general condition
27, replace the word ‘‘Until’’ with the
phrase ‘‘He or she is’’. In the first
sentence of subparagraph (a)(2) of
general condition 27, delete the word
‘‘If’’ and replace the number 45 with the
words ‘‘Forty-five’’.
On page 11196, second column, in the
definition of ‘‘discharge’’, insert a
period after the word ‘‘material’’ and
delete the rest of the sentence.
Dated: May 3, 2007.
Mark F. Sudol,
Acting Chief, Operations, Directorate of Civil
Works.
[FR Doc. E7–8782 Filed 5–7–07; 8:45 am]
BILLING CODE 3710–92–P
DEPARTMENT OF EDUCATION
National Assessment Governing
Board; Meeting
Department of Education,
National Assessment Governing Board.
ACTION: Notice; correction.
cprice-sewell on PROD1PC66 with NOTICES
AGENCY:
SUMMARY: The National Assessment
Governing Board published a document
in the Federal Register of May 2, 2007,
announcing the schedule and proposed
agenda of a forthcoming meeting of the
National Assessment Governing Board.
The meeting agenda has been revised.
FOR FURTHER INFORMATION CONTACT:
Munira Mwalimu at (202) 357–6906.
VerDate Aug<31>2005
15:36 May 07, 2007
Jkt 211001
Correction
In the Federal Register of May 2,
2007, in FR DOCID: fr02my07–43,
Volume 72, Number 84, page 24282,
delete the sentence ‘‘Assessment
Development Committee: Open
Session12 p.m. to 3 p.m.’’ and delete the
sentence on page 24282 that reads ‘‘On
May 17, the Assessment Development
Committee will meet in open session
from 12 p.m. to 3 p.m.’’ This meeting of
the Assessment Development
Committee is cancelled.
On page 24282, delete the paragraph
that reads ‘‘On May 18, the full Board
will meet in closed session from 12:15
p.m. to 1:45 p.m. The Board will receive
a briefing provided by the National
Center for Education Statistics on the
NAEP 2006 U.S. History and Civics
Report Cards. The Governing Board will
be provided with embargoed data that
cannot be discussed in an open meeting
prior to their official release. The
meeting must therefore be conducted in
closed session as disclosure of data
would significantly impede
implementation of The Nation’s Report
Card initial release activities, as
protected by exemption 9(B) of section
552b(c) of Title 5 U.S.C.’’ Replace this
paragraph with the following sentence,
‘‘On May 18, the full Board will meet in
open session from 12:15 p.m. to 1:45
p.m. to receive a briefing provided by
the National Center for Education
Statistics on the NAEP 2006 U.S.
History and Civics Report Cards.’’ This
session of the Board meeting is now
open to the public.
Electronic Access to This Document:
You may view this document, as well as
all other documents of this Department
published in the Federal Register, in
text or Adobe Portable Document
Format (PDF) on the Internet at the
following site: https://www.ed.gov/news/
fedregister/.
To use PDF you must have Adobe
Acrobat Reader, which is available free
at this site. If you have questions about
using PDF, call the U.S. Government
Printing Office (GPO), toll free at 1–888–
293–6498; or in the Washington, DC,
area at (202) 512–1530.
Note: The official version of this document
is the document published in the Federal
Register. Free Internet access to the official
edition of the Federal Register and the Code
of Federal Regulations is available on GPO
Access at: https://www.gpoaccess.gov/nara/
index.html.
PO 00000
Frm 00013
Fmt 4703
Sfmt 4703
26083
Dated: May 3, 2007.
Charles E. Smith,
Executive Director, U.S. Department of
Education, National Assessment Governing
Board.
[FR Doc. E7–8800 Filed 5–7–07; 8:45 am]
BILLING CODE 4000–01–P
DEPARTMENT OF ENERGY
Office of Hearings and Appeals;
Proposed Implementation of Special
Refund Procedures
Office of Hearings and Appeals,
Department of Energy.
ACTION: Notice of Proposed
Implementation of Special Refund
Procedures.
AGENCY:
SUMMARY: The Office of Hearings and
Appeals (OHA) of the Department of
Energy (DOE) announces the proposed
procedures for the disbursement of
$1,592,901, plus accrued interest, in
motor gasoline overcharges obtained by
the DOE pursuant to remedial orders
issued to Powerine Oil Company, Case
No. TEF–0006, and Storey Oil
Company, Inc., Case No. TEF–0009. The
OHA has tentatively determined that the
funds will be distributed in accordance
with the provisions of 10 CFR Part 205,
Subpart V.
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 the Office of Hearings and
Appeals, Department of Energy, 1000
Independence Ave., SW., Washington,
DC 20585–1615. All comments should
display a reference to Case Nos. TEF–
0006 or TEF–0009.
FOR FURTHER INFORMATION CONTACT:
Richard A. Cronin, Jr., Assistant
Director, Office of Hearings and
Appeals, 1000 Independence Ave., SW.,
Washington, DC 20585–1615, (202) 287–
1589, richard.cronin@hq.doe.gov.
SUPPLEMENTARY INFORMATION: In
accordance with 10 CFR 205.282(b),
notice is hereby given of the issuance of
the Proposed Decision and Order set out
below. The Proposed Decision sets forth
the procedures that the DOE has
tentatively formulated to distribute to
eligible claimants $1,592,901, plus
accrued interest, obtained by the DOE
pursuant to Remedial Orders issued to
Powerine Oil Company (Powerine) and
Storey Oil Company, Inc. (Storey). The
Remedial Orders issued to Powerine
and Storey adjudicated allegations
concerning violations of the federal
petroleum price regulations involving
the sale of motor gasoline during the
E:\FR\FM\08MYN1.SGM
08MYN1
26084
Federal Register / Vol. 72, No. 88 / Tuesday, May 8, 2007 / Notices
price control period, August 13, 1973
through January 27, 1981.
The OHA has proposes to distribute
the Remedial Order funds in a refund
proceeding described in the Proposed
Decision and Order to provide
restitution for those parties injured by
Powerine or Storey’s alleged violations
of pricing regulations for motor
gasoline. Purchasers of motor gasoline
from Powerine or Storey will have the
opportunity to submit refund
applications. Refunds will be granted to
applicants who satisfactorily
demonstrate that they were injured by
the pricing violations and who
document the volume of motor gasoline
they purchased from one of the firms
during the price control period.
Any member of the public may
submit written comments regarding the
proposed refund procedures.
Commenting parties are requested to
forward two copies of their submission,
within 30 days of the publication of this
notice in the Federal Register, to the
address set forth at the beginning of this
notice. Comments so received will be
made available for public inspection
between the hours of 1 p.m. and 5 p.m.,
Monday through Friday, except Federal
Holidays, in Room 7132 ( the public
reference room), 950 L’Enfant Plaza,
Washington, DC.
Fred L. Brown,
Acting Director, Office of Hearings and
Appeals.
Proposed Decision and Order
cprice-sewell on PROD1PC66 with NOTICES
Department of Energy
Implementation of Special Refund
Procedures
Names of Firms: Powerine Oil
Company, Storey Oil Company, Inc.
Dates of Filing: June 23, 2005. June 23,
2005.
Case Numbers: TEF–0006. TEF–0009.
The Office of General Counsel (OGC)
of the Department of Energy (DOE) filed
a Petition requesting that the Office of
Hearings and Appeals (OHA) formulate
and implement Subpart V special
refund proceedings. Under the
procedural regulations of the DOE,
special refund proceedings may be
implemented to refund monies to
persons injured by violations of the DOE
petroleum price regulations, provided
DOE is unable to readily identify such
persons or to ascertain the amount of
any refund. 10 CFR 205.280. We have
considered OGC’s request to formulate
refund procedures for the disbursement
of monies remitted by Powerine Oil
Company (Powerine) and Storey Oil
Company (Storey) pursuant to Remedial
Orders DOE has issued regarding them
VerDate Aug<31>2005
15:36 May 07, 2007
Jkt 211001
and have determined that such
procedures are appropriate.
Under the terms of the Remedial
Orders, Powerine’s bankruptcy trustee
has remitted a total of $1,546,302 to the
DOE to remedy motor gasoline retailerreseller pricing violations which
occurred during the price control
period, August 13, 1973 through January
27, 1981. Storey has remitted a total of
$46,599 to remedy similar violations.
These funds are being held in an escrow
account established with the United
States Treasury pending a determination
of their proper distribution. This
Decision sets forth OHA’s proposed
plan to distribute those funds. The
specific application requirements we
propose appear in Section III of this
Decision.
I. Background
Powerine was a privately held
corporation which operated a refinery
located in Santa Fe Springs, California
during the price control period. During
this period, Storey, operating in
Colorado, was a reseller of refined
petroleum products. Economic
Regulatory Administration audits of
Powerine and Storey revealed possible
violations of the Mandatory Petroleum
Price Regulations (MPPR) in their sales
of motor gasoline. Subsequently, OHA
issued Remedial Orders in each case
directing Powerine and Storey to remit
to the DOE $7,956,934 and $64,639,
respectively, in restitution for
overcharges by each firm in sales to
their customers during the period of
price controls.1
II. Jurisdiction and Authority
The general guidelines that govern
OHA’s ability to formulate and
implement a plan to distribute refunds
are set forth at 10 CFR part 205, subpart
V. These procedures apply in situations
where the DOE cannot readily identify
the persons who were injured as a result
of actual or alleged violations of the
regulations or ascertain the amount of
the refund each person should receive.
For a more detailed discussion of
Subpart V and the authority of the OHA
to fashion procedures to distribute
refunds, see Office of Enforcement, 9
DOE ¶ 82,508 (1981) and Office of
Enforcement, 8 DOE ¶ 82,597 (1981).
III. Refund Procedures
A. Allocation of Consent Order Funds
Both firms’ violations of the MPPR
involved sales of a refined petroleum
product—motor gasoline. Consequently,
1 See Powerine Oil Company, 21 DOE ¶ 83,008
(1991); Storey Oil Company, Inc., 16 DOE ¶ 83,007
(1987).
PO 00000
Frm 00014
Fmt 4703
Sfmt 4703
all of the funds that have been remitted
by Powerine and Storey will be
allocated for restitution to those parties
injured by the firms’ alleged violations
of the pricing regulations for motor
gasoline.
B. Refined Petroleum Product Refund
Procedures
1. Application Requirements
In cases where the ERA is unable to
identify parties injured by the alleged
overcharges or the specific amounts to
which they may be entitled, we
normally implement a two-stage refund
procedure. In the first stage, those who
bought refined petroleum products from
the consenting firms may apply for
refunds, which are typically calculated
on a pro-rata or volumetric basis. In
order to calculate the volumetric refund
amount, the OHA divides the amount of
money available for direct restitution by
the number of gallons sold by the firm
during the price control period.
In the present case, however, we lack
much of the information that we
normally use to provide direct
restitution to injured customers of the
consenting firms. In particular, we have
been unable to obtain any information
on the volumes of motor gasoline
products sold by the firms during the
price control period. Nor do we have
any information concerning the
customers of these firms. Based on the
present state of the record in these
cases, it would be difficult to implement
a volumetric refund process.
Nevertheless, we will accept any refund
claims submitted by persons who
purchased motor gasoline from
Powerine or Storey during the
settlement periods discussed above. We
will work with those claimants to
develop additional information that
would enable us to determine who
should receive refunds and in what
amounts. 2
To apply for a refund from the
Powerine or Storey Remedial Order
funds, a claimant should submit an
Application for Refund containing the
following information:
(1) Identifying information including
the claimant’s name, current business
address, business address during the
refund period, social security number or
taxpayer identification number, a
statement indicating whether the
claimant is an individual, corporation,
partnership, sole proprietorship, or
other business entity, the name, title,
and telephone number of a person to
contact for additional information, and
2 Applications for Refund will be accepted only
for motor gasoline pricing violations.
E:\FR\FM\08MYN1.SGM
08MYN1
Federal Register / Vol. 72, No. 88 / Tuesday, May 8, 2007 / Notices
the name and address of the person who
should receive any refund check; 3
(2) A monthly motor gasoline
gallonage purchase schedule covering
the price control order period. The
applicant should specify the source of
this gallonage information. In
calculating its purchase volumes, an
applicant should use actual records
from the refund period, if available. If
these records are not available, the
applicant may submit estimates of its
motor gasoline purchases, but the
estimation method must be reasonable
and must be explained;
(3) A statement whether the applicant
or a related firm has filed, or has
authorized any individual to file on its
behalf, any other application in that
refund proceeding. If so, an explanation
of the circumstances of the other filing
or authorization must be submitted;
(4) If the applicant is or was in any
way affiliated with Powerine or Storey,
it must explain this affiliation,
including the time period in which it
was affiliated; 4
(5) The statement listed below signed
by the individual applicant or a
responsible official of the firm filing the
refund application:
cprice-sewell on PROD1PC66 with NOTICES
I swear (or affirm) that the information
contained in this application and its
attachments is true to the best of my
knowledge and belief. I understand that
anyone who is convicted of providing false
information to the federal government may
be subject to a fine, a jail sentence, or both,
pursuant to 18 U.S.C. 1001. I understand that
the information contained in this application
is subject to public disclosure. I have
enclosed a duplicate of this entire
application which will made available at
OHA.
3 An applicant must submit the social security
number or employer identification number of the
person or legal entity that is seeking the refund.
This information will be used in processing refund
applications, and is requested pursuant to our
authority under the Petroleum Overcharge
Distribution and Restitution Act of 1986 and the
regulations codified at 10 CFR Part 205, Subpart V.
The information may be shared with other Federal
agencies for statistical, auditing or archiving
purposes, and with law enforcement agencies when
they are investigating a potential violation of civil
or criminal law.
4 As in other refund proceedings involving
alleged refined product violations, the DOE will
presume that affiliates of a Remedial Order firm
were not injured by the firm’s overcharges. See, e.g.,
Marathon Petroleum Co./EMRO Propane Co., 15
DOE ¶ 85,288 (1987). This is because the Remedial
Order firm presumably would not have sold
petroleum products to an affiliate if such a sale
would have placed the purchaser at a competitive
disadvantage. See Marathon Petroleum Co./Pilot Oil
Corp., 16 DOE ¶ 85,611 (1987), amended claim
denied, 17 DOE ¶ 85,291 (1988), reconsideration
denied, 20 DOE ¶ 85,236 (1990). Furthermore, if an
affiliate of the Remedial Order firm were granted a
refund, the remedial order firm would be indirectly
compensated from a Remedial Order fund remitted
to settle its own alleged violations.
VerDate Aug<31>2005
15:36 May 07, 2007
Jkt 211001
All applications should be either
typed or printed and clearly labeled
with the name and case number of the
relevant firm (Powerine Oil Company,
Case No. TEF–0006 or Storey Oil
Company, Inc., Case No. TEF–0009).
Each applicant must submit an original
and one copy of the application. If the
applicant believes that any of the
information in its application is
confidential and does not wish for that
information to be publicly disclosed, it
must submit an original application,
clearly designated ‘‘confidential,’’
containing the confidential information,
and two copies of the application with
the confidential information deleted. All
refund applications should be sent to
the address below:
Office of Hearings and Appeals,
Department of Energy, 1000
Independence Ave., SW., Washington,
DC 20585–0107.
We will adopt the standard OHA
procedures relating to refund
applications filed on behalf of
applicants by ‘‘representatives,’’
including refund filing services,
consulting firms, accountants, and
attorneys. See, e.g., Starks Shell Service,
23 DOE ¶ 85,017 (1993); Texaco Inc., 20
DOE ¶ 85,147 (1990) (Texaco); Shell Oil
Co., 18 DOE ¶ 85,492 (1989). We will
also require strict compliance with the
filing requirements as specified in 10
C.F.R. § 205.283, particularly the
requirement that applications and the
accompanying certification statement be
signed by the applicant. The OHA
reiterates its policy to scrutinize
applications filed by filing services
closely. Applications submitted by a
filing service should contain all of the
information indicated above.
Finally, the OHA reserves the
authority to require additional
information from an applicant before
granting any refund in these
proceedings.
2. Allocation Claims
We may receive claims based upon
Powerine’s or Storey’s failure to furnish
motor gasoline that they were obliged to
supply under the DOE allocation
regulations that became effective in
January 1974. See 10 CFR Part 211. Any
such application will be evaluated with
reference to the standards set forth in
Texaco (and cases cited therein). See
Texaco, 20 DOE at 88,321.
3. Impact of the Petroleum Overcharge
Distribution and Restitution Act of 1986
(PODRA) Amendments on Powerine
and Storey Refined Product Refund
Claims
The Interior and Related Agencies
Appropriations Act for FY 1999
PO 00000
Frm 00015
Fmt 4703
Sfmt 4703
26085
amended certain provisions of the
Petroleum Overcharge and Distribution
and Restitution Act of 1986 (PODRA).
These amendments extinguished rights
that refund applicants had under
PODRA to refunds for overcharges on
the purchases of refined petroleum
products. They also identified and
appropriated a substantial portion of the
funds being held by the DOE to pay
refund claims (including the funds paid
by Powerine and Storey). Congress
specified that these funds were to be
used to fund other DOE programs. As a
result, the petroleum overcharge escrow
accounts in the refined product area
contain substantially less money than
before. In fact they may not contain
sufficient funds to pay in full all
pending and future refund claims
(including those in litigation) if they
should all be found to be meritorious.
See Enron Corp./Shelia S. Brown, 27
DOE ¶ 85,036 at 88,244 (2000) (Brown).
Congress directed OHA to ‘‘assure the
amount remaining in escrow to satisfy
refined petroleum product claims for
direct restitution is allocated equitably
among all claimants.’’ Omnibus
Consolidated and Emergency
Supplemental Appropriation Act, 1999,
Pub. L. No. 105–277 § 337, 112 Stat
2681, 2681–295 (1998) (language added
to PODRA); Brown, 27 DOE at 88,244.
In view of this Congressional directive
and the limited amount of funds
available, it may become necessary to
prorate the funds available for the
meritorious claimants in the Powerine
and Storey refund proceedings.
It is therefore ordered that:
The payments remitted to the
Department of Energy by Powerine Oil
Company and Storey Oil Company, Inc.,
pursuant to remedial orders signed on
August 30, 1991 and June 24, 1987
respectively, will be distributed in
accordance with the forgoing Decision.
[FR Doc. E7–8771 Filed 5–7–07; 8:45 am]
BILLING CODE 6450–01–P
DEPARTMENT OF ENERGY
Office of Energy Efficiency and
Renewable Energy
Energy Efficiency Building Technology
Application Centers
Office of Energy Efficiency and
Renewable Energy, Department of
Energy.
ACTION: Program notice.
AGENCY:
SUMMARY: The National Energy
Technology Laboratory, on behalf of the
Office of Energy Efficiency and
Renewable Energy’s Building
E:\FR\FM\08MYN1.SGM
08MYN1
Agencies
[Federal Register Volume 72, Number 88 (Tuesday, May 8, 2007)]
[Notices]
[Pages 26083-26085]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-8771]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Office of Hearings and Appeals; Proposed Implementation of
Special Refund Procedures
AGENCY: Office of Hearings and Appeals, Department of Energy.
ACTION: Notice of Proposed Implementation of Special Refund Procedures.
-----------------------------------------------------------------------
SUMMARY: The Office of Hearings and Appeals (OHA) of the Department of
Energy (DOE) announces the proposed procedures for the disbursement of
$1,592,901, plus accrued interest, in motor gasoline overcharges
obtained by the DOE pursuant to remedial orders issued to Powerine Oil
Company, Case No. TEF-0006, and Storey Oil Company, Inc., Case No. TEF-
0009. The OHA has tentatively determined that the funds will be
distributed in accordance with the provisions of 10 CFR Part 205,
Subpart V.
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 the Office of Hearings and
Appeals, Department of Energy, 1000 Independence Ave., SW., Washington,
DC 20585-1615. All comments should display a reference to Case Nos.
TEF-0006 or TEF-0009.
FOR FURTHER INFORMATION CONTACT: Richard A. Cronin, Jr., Assistant
Director, Office of Hearings and Appeals, 1000 Independence Ave., SW.,
Washington, DC 20585-1615, (202) 287-1589, richard.cronin@hq.doe.gov.
SUPPLEMENTARY INFORMATION: In accordance with 10 CFR 205.282(b), notice
is hereby given of the issuance of the Proposed Decision and Order set
out below. The Proposed Decision sets forth the procedures that the DOE
has tentatively formulated to distribute to eligible claimants
$1,592,901, plus accrued interest, obtained by the DOE pursuant to
Remedial Orders issued to Powerine Oil Company (Powerine) and Storey
Oil Company, Inc. (Storey). The Remedial Orders issued to Powerine and
Storey adjudicated allegations concerning violations of the federal
petroleum price regulations involving the sale of motor gasoline during
the
[[Page 26084]]
price control period, August 13, 1973 through January 27, 1981.
The OHA has proposes to distribute the Remedial Order funds in a
refund proceeding described in the Proposed Decision and Order to
provide restitution for those parties injured by Powerine or Storey's
alleged violations of pricing regulations for motor gasoline.
Purchasers of motor gasoline from Powerine or Storey will have the
opportunity to submit refund applications. Refunds will be granted to
applicants who satisfactorily demonstrate that they were injured by the
pricing violations and who document the volume of motor gasoline they
purchased from one of the firms during the price control period.
Any member of the public may submit written comments regarding the
proposed refund procedures. Commenting parties are requested to forward
two copies of their submission, within 30 days of the publication of
this notice in the Federal Register, to the address set forth at the
beginning of this notice. Comments so received will be made available
for public inspection between the hours of 1 p.m. and 5 p.m., Monday
through Friday, except Federal Holidays, in Room 7132 ( the public
reference room), 950 L'Enfant Plaza, Washington, DC.
Fred L. Brown,
Acting Director, Office of Hearings and Appeals.
Proposed Decision and Order
Department of Energy
Implementation of Special Refund Procedures
Names of Firms: Powerine Oil Company, Storey Oil Company, Inc.
Dates of Filing: June 23, 2005. June 23, 2005.
Case Numbers: TEF-0006. TEF-0009.
The Office of General Counsel (OGC) of the Department of Energy
(DOE) filed a Petition requesting that the Office of Hearings and
Appeals (OHA) formulate and implement Subpart V special refund
proceedings. Under the procedural regulations of the DOE, special
refund proceedings may be implemented to refund monies to persons
injured by violations of the DOE petroleum price regulations, provided
DOE is unable to readily identify such persons or to ascertain the
amount of any refund. 10 CFR 205.280. We have considered OGC's request
to formulate refund procedures for the disbursement of monies remitted
by Powerine Oil Company (Powerine) and Storey Oil Company (Storey)
pursuant to Remedial Orders DOE has issued regarding them and have
determined that such procedures are appropriate.
Under the terms of the Remedial Orders, Powerine's bankruptcy
trustee has remitted a total of $1,546,302 to the DOE to remedy motor
gasoline retailer-reseller pricing violations which occurred during the
price control period, August 13, 1973 through January 27, 1981. Storey
has remitted a total of $46,599 to remedy similar violations. These
funds are being held in an escrow account established with the United
States Treasury pending a determination of their proper distribution.
This Decision sets forth OHA's proposed plan to distribute those funds.
The specific application requirements we propose appear in Section III
of this Decision.
I. Background
Powerine was a privately held corporation which operated a refinery
located in Santa Fe Springs, California during the price control
period. During this period, Storey, operating in Colorado, was a
reseller of refined petroleum products. Economic Regulatory
Administration audits of Powerine and Storey revealed possible
violations of the Mandatory Petroleum Price Regulations (MPPR) in their
sales of motor gasoline. Subsequently, OHA issued Remedial Orders in
each case directing Powerine and Storey to remit to the DOE $7,956,934
and $64,639, respectively, in restitution for overcharges by each firm
in sales to their customers during the period of price controls.\1\
---------------------------------------------------------------------------
\1\ See Powerine Oil Company, 21 DOE ] 83,008 (1991); Storey Oil
Company, Inc., 16 DOE ] 83,007 (1987).
---------------------------------------------------------------------------
II. Jurisdiction and Authority
The general guidelines that govern OHA's ability to formulate and
implement a plan to distribute refunds are set forth at 10 CFR part
205, subpart V. These procedures apply in situations where the DOE
cannot readily identify the persons who were injured as a result of
actual or alleged violations of the regulations or ascertain the amount
of the refund each person should receive. For a more detailed
discussion of Subpart V and the authority of the OHA to fashion
procedures to distribute refunds, see Office of Enforcement, 9 DOE ]
82,508 (1981) and Office of Enforcement, 8 DOE ] 82,597 (1981).
III. Refund Procedures
A. Allocation of Consent Order Funds
Both firms' violations of the MPPR involved sales of a refined
petroleum product--motor gasoline. Consequently, all of the funds that
have been remitted by Powerine and Storey will be allocated for
restitution to those parties injured by the firms' alleged violations
of the pricing regulations for motor gasoline.
B. Refined Petroleum Product Refund Procedures
1. Application Requirements
In cases where the ERA is unable to identify parties injured by the
alleged overcharges or the specific amounts to which they may be
entitled, we normally implement a two-stage refund procedure. In the
first stage, those who bought refined petroleum products from the
consenting firms may apply for refunds, which are typically calculated
on a pro-rata or volumetric basis. In order to calculate the volumetric
refund amount, the OHA divides the amount of money available for direct
restitution by the number of gallons sold by the firm during the price
control period.
In the present case, however, we lack much of the information that
we normally use to provide direct restitution to injured customers of
the consenting firms. In particular, we have been unable to obtain any
information on the volumes of motor gasoline products sold by the firms
during the price control period. Nor do we have any information
concerning the customers of these firms. Based on the present state of
the record in these cases, it would be difficult to implement a
volumetric refund process. Nevertheless, we will accept any refund
claims submitted by persons who purchased motor gasoline from Powerine
or Storey during the settlement periods discussed above. We will work
with those claimants to develop additional information that would
enable us to determine who should receive refunds and in what amounts.
\2\
---------------------------------------------------------------------------
\2\ Applications for Refund will be accepted only for motor
gasoline pricing violations.
---------------------------------------------------------------------------
To apply for a refund from the Powerine or Storey Remedial Order
funds, a claimant should submit an Application for Refund containing
the following information:
(1) Identifying information including the claimant's name, current
business address, business address during the refund period, social
security number or taxpayer identification number, a statement
indicating whether the claimant is an individual, corporation,
partnership, sole proprietorship, or other business entity, the name,
title, and telephone number of a person to contact for additional
information, and
[[Page 26085]]
the name and address of the person who should receive any refund check;
\3\
---------------------------------------------------------------------------
\3\ An applicant must submit the social security number or
employer identification number of the person or legal entity that is
seeking the refund. This information will be used in processing
refund applications, and is requested pursuant to our authority
under the Petroleum Overcharge Distribution and Restitution Act of
1986 and the regulations codified at 10 CFR Part 205, Subpart V. The
information may be shared with other Federal agencies for
statistical, auditing or archiving purposes, and with law
enforcement agencies when they are investigating a potential
violation of civil or criminal law.
---------------------------------------------------------------------------
(2) A monthly motor gasoline gallonage purchase schedule covering
the price control order period. The applicant should specify the source
of this gallonage information. In calculating its purchase volumes, an
applicant should use actual records from the refund period, if
available. If these records are not available, the applicant may submit
estimates of its motor gasoline purchases, but the estimation method
must be reasonable and must be explained;
(3) A statement whether the applicant or a related firm has filed,
or has authorized any individual to file on its behalf, any other
application in that refund proceeding. If so, an explanation of the
circumstances of the other filing or authorization must be submitted;
(4) If the applicant is or was in any way affiliated with Powerine
or Storey, it must explain this affiliation, including the time period
in which it was affiliated; \4\
---------------------------------------------------------------------------
\4\ As in other refund proceedings involving alleged refined
product violations, the DOE will presume that affiliates of a
Remedial Order firm were not injured by the firm's overcharges. See,
e.g., Marathon Petroleum Co./EMRO Propane Co., 15 DOE ] 85,288
(1987). This is because the Remedial Order firm presumably would not
have sold petroleum products to an affiliate if such a sale would
have placed the purchaser at a competitive disadvantage. See
Marathon Petroleum Co./Pilot Oil Corp., 16 DOE ] 85,611 (1987),
amended claim denied, 17 DOE ] 85,291 (1988), reconsideration
denied, 20 DOE ] 85,236 (1990). Furthermore, if an affiliate of the
Remedial Order firm were granted a refund, the remedial order firm
would be indirectly compensated from a Remedial Order fund remitted
to settle its own alleged violations.
---------------------------------------------------------------------------
(5) The statement listed below signed by the individual applicant
or a responsible official of the firm filing the refund application:
I swear (or affirm) that the information contained in this
application and its attachments is true to the best of my knowledge
and belief. I understand that anyone who is convicted of providing
false information to the federal government may be subject to a
fine, a jail sentence, or both, pursuant to 18 U.S.C. 1001. I
understand that the information contained in this application is
subject to public disclosure. I have enclosed a duplicate of this
entire application which will made available at OHA.
All applications should be either typed or printed and clearly
labeled with the name and case number of the relevant firm (Powerine
Oil Company, Case No. TEF-0006 or Storey Oil Company, Inc., Case No.
TEF-0009). Each applicant must submit an original and one copy of the
application. If the applicant believes that any of the information in
its application is confidential and does not wish for that information
to be publicly disclosed, it must submit an original application,
clearly designated ``confidential,'' containing the confidential
information, and two copies of the application with the confidential
information deleted. All refund applications should be sent to the
address below:
Office of Hearings and Appeals, Department of Energy, 1000 Independence
Ave., SW., Washington, DC 20585-0107.
We will adopt the standard OHA procedures relating to refund
applications filed on behalf of applicants by ``representatives,''
including refund filing services, consulting firms, accountants, and
attorneys. See, e.g., Starks Shell Service, 23 DOE ] 85,017 (1993);
Texaco Inc., 20 DOE ] 85,147 (1990) (Texaco); Shell Oil Co., 18 DOE ]
85,492 (1989). We will also require strict compliance with the filing
requirements as specified in 10 C.F.R. Sec. 205.283, particularly the
requirement that applications and the accompanying certification
statement be signed by the applicant. The OHA reiterates its policy to
scrutinize applications filed by filing services closely. Applications
submitted by a filing service should contain all of the information
indicated above.
Finally, the OHA reserves the authority to require additional
information from an applicant before granting any refund in these
proceedings.
2. Allocation Claims
We may receive claims based upon Powerine's or Storey's failure to
furnish motor gasoline that they were obliged to supply under the DOE
allocation regulations that became effective in January 1974. See 10
CFR Part 211. Any such application will be evaluated with reference to
the standards set forth in Texaco (and cases cited therein). See
Texaco, 20 DOE at 88,321.
3. Impact of the Petroleum Overcharge Distribution and Restitution Act
of 1986 (PODRA) Amendments on Powerine and Storey Refined Product
Refund Claims
The Interior and Related Agencies Appropriations Act for FY 1999
amended certain provisions of the Petroleum Overcharge and Distribution
and Restitution Act of 1986 (PODRA). These amendments extinguished
rights that refund applicants had under PODRA to refunds for
overcharges on the purchases of refined petroleum products. They also
identified and appropriated a substantial portion of the funds being
held by the DOE to pay refund claims (including the funds paid by
Powerine and Storey). Congress specified that these funds were to be
used to fund other DOE programs. As a result, the petroleum overcharge
escrow accounts in the refined product area contain substantially less
money than before. In fact they may not contain sufficient funds to pay
in full all pending and future refund claims (including those in
litigation) if they should all be found to be meritorious. See Enron
Corp./Shelia S. Brown, 27 DOE ] 85,036 at 88,244 (2000) (Brown).
Congress directed OHA to ``assure the amount remaining in escrow to
satisfy refined petroleum product claims for direct restitution is
allocated equitably among all claimants.'' Omnibus Consolidated and
Emergency Supplemental Appropriation Act, 1999, Pub. L. No. 105-277
Sec. 337, 112 Stat 2681, 2681-295 (1998) (language added to PODRA);
Brown, 27 DOE at 88,244. In view of this Congressional directive and
the limited amount of funds available, it may become necessary to
prorate the funds available for the meritorious claimants in the
Powerine and Storey refund proceedings.
It is therefore ordered that:
The payments remitted to the Department of Energy by Powerine Oil
Company and Storey Oil Company, Inc., pursuant to remedial orders
signed on August 30, 1991 and June 24, 1987 respectively, will be
distributed in accordance with the forgoing Decision.
[FR Doc. E7-8771 Filed 5-7-07; 8:45 am]
BILLING CODE 6450-01-P