Implementation of Special Refund Procedures, 36446-36449 [E7-12832]

Download as PDF jlentini on PROD1PC65 with NOTICES 36446 Federal Register / Vol. 72, No. 127 / Tuesday, July 3, 2007 / Notices Applicants: Florida Power & Light Company. Description: Florida Power & Light Company submits a new Rate Schedule 306, Agreement for Generator Balancing Service with New Hope Power Partnership pursuant to Section 205 of the Federal Power Act. Filed Date: 06/22/2007. Accession Number: 20070626–0061. Comment Date: 5 p.m. Eastern Time on Friday, July 13, 2007. Docket Numbers: ER07–1071–000. Applicants: PJM Interconnection, LLC. Description: Virginia Electric and Power Co dba Dominion Virginia Power submits a new Attachment H–16B to the Open Access Transmission Tariff. Filed Date: 06/22/2007. Accession Number: 20070626–0060. Comment Date: 5 p.m. Eastern Time on Friday, July 13, 2007. Docket Numbers: ER07–1072–000. Applicants: PJM Interconnection, LLC; Virginia Electric and Power Company. Description: Virginia Electric and Power Co dba Dominion Virginia. Power submits a new Attachment H–16B to the Open Access Transmission Tariff. Filed Date: 06/22/2007. Accession Number: 20070626–0060. Comment Date: 5 p.m. Eastern Time on Friday, July 13, 2007. Docket Numbers: ER07–1073–000. Applicants: Entergy Arkansas, Inc. Description: Entergy Services, Inc on behalf of Entergy Arkansas, Inc et al. submit an amended Exhibit H to the Power Coordination, Interchange and Transmission Service Agreement with Arkansas Electric Cooperative Corp. Filed Date: 06/22/2007. Accession Number: 20070626–0059. Comment Date: 5 p.m. Eastern Time on Friday, July 13, 2007. Docket Numbers: ER07–1074–000. Applicants: New York Independent System Operator, Inc. Description: New York Independent System Operator, Inc et al. submit an executed Small Generator Interconnection Agreement with Seneca Energy II, LLC. Filed Date: 06/22/2007. Accession Number: 20070626–0058. Comment Date: 5 p.m. Eastern Time on Friday, July 13, 2007. Docket Numbers: ER07–1075–000. Applicants: New York State Electric & Gas Corporation. Description: New York State Electric & Gas Corporation submits a notice of cancellation of a Service Agreement under which it provided interconnection service to Seneca Energy II LLC. VerDate Aug<31>2005 17:57 Jul 02, 2007 Jkt 211001 Filed Date: 06/22/2007. Accession Number: 20070626–0057. Comment Date: 5 p.m. Eastern Time on Friday, July 13, 2007. Docket Numbers: ER07–1076–000. Applicants: Upper Peninsula Power Company. Description: Upper Peninsula Power Co. submits a letter of understanding with the City of Escanaba, Michigan memorializing the parties’ understanding concerning the cost of energy relative to an Escanaba power purchase that will begin on 6/25/07. Filed Date: 06/25/2007. Accession Number: 20070627–0108. Comment Date: 5 p.m. Eastern Time on Monday, July 16, 2007. Take notice that the Commission received the following exempt wholesale generator filings: Docket Numbers: EG07–61–000. Applicants: Warm Springs Biomass Project, LLC. Description: Notice of SelfCertification of Exempt Wholesale Generator Status. Filed Date: 06/26/2007. Accession Number: 20070625–5079. Comment Date: 5 p.m. Eastern Time on Tuesday, July 17, 2007. Any person desiring to intervene or to protest in any of the above proceedings must file in accordance with Rules 211 and 214 of the Commission’s Rules of Practice and Procedure (18 CFR 385.211 and 385.214) on or before 5 p.m. Eastern time on the specified comment date. It is not necessary to separately intervene again in a subdocket related to a compliance filing if you have previously intervened in the same docket. Protests will be considered by the Commission in determining the appropriate action to be taken, but will not serve to make protestants parties to the proceeding. Anyone filing a motion to intervene or protest must serve a copy of that document on the Applicant. In reference to filings initiating a new proceeding, interventions or protests submitted on or before the comment deadline need not be served on persons other than the Applicant. The Commission encourages electronic submission of protests and interventions in lieu of paper, using the FERC Online links at https:// www.ferc.gov. To facilitate electronic service, persons with Internet access who will eFile a document and/or be listed as a contact for an intervenor must create and validate an eRegistration account using the eRegistration link. Select the eFiling link to log on and submit the intervention or protests. Persons unable to file electronically should submit an original and 14 copies PO 00000 Frm 00028 Fmt 4703 Sfmt 4703 of the intervention or protest to the Federal Energy Regulatory Commission, 888 First St., NE., Washington, DC 20426. The filings in the above proceedings are accessible in the Commission’s eLibrary system by clicking on the appropriate link in the above list. They are also available for review in the Commission’s Public Reference Room in Washington, DC. There is an eSubscription link on the Web site that enables subscribers to receive e-mail notification when a document is added to a subscribed dockets(s). For assistance with any FERC Online service, please e-mail FERCOnlineSupport@ferc.gov. or call (866) 208–3676 (toll free). For TTY, call (202) 502–8659. Kimberly D. Bose, Secretary. [FR Doc. E7–12809 Filed 7–2–07; 8:45 am] BILLING CODE 6717–01–P DEPARTMENT OF ENERGY Office of Hearings and Appeals Implementation of Special Refund Procedures Office of Hearings and Appeals, Department of Energy. ACTION: Notice of implementation of Special Refund Procedures. AGENCY: SUMMARY: The Office of Hearings and Appeals (OHA) of the Department of Energy (DOE) announces the 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 determined that the funds will be distributed in accordance with the provisions of 10 CFR part 205, subpart V. DATES: Applications must be filed in duplicate with OHA by December 28, 2007. Applications should be sent to the Office of Hearings and Appeals, Department of Energy, 1000 Independence Ave., SW., Washington, DC 20585–1615. All applications 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. ADDRESSES: E:\FR\FM\03JYN1.SGM 03JYN1 Federal Register / Vol. 72, No. 127 / Tuesday, July 3, 2007 / Notices SUPPLEMENTARY INFORMATION: In accordance with 10 CFR 205.282(b), notice is hereby given of the issuance of the Decision and Order set out below. The Decision sets forth the procedures that the DOE has 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 relevant audit periods. The OHA will distribute the Remedial Order funds in a refund proceeding using the procedures described in the Proposed Decision and Order published in the Federal Register on May 8, 2007. See 72 FR 26083 (May 8, 2007). This refund proceeding seeks 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 relevant consent order period. All applications must be postmarked by December 28, 2007. All applications received in this proceeding 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. Dated: June 27, 2007. Fred L. Brown, Acting Director, Office of Hearings and Appeals. jlentini on PROD1PC65 with NOTICES 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 VerDate Aug<31>2005 17:57 Jul 02, 2007 Jkt 211001 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 retailerreseller pricing violations which occurred during the relevant audit period. 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 plan to distribute those funds. The specific application requirements are detailed 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 period of price controls, August 13, 1973 through January 27, 1981. 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 in restitution with respect to overcharges of each firm in regard to 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 1 See Powerine Oil Company, 21 DOE ¶ 83,008 (1991); Storey Oil Company, Inc., 16 DOE ¶ 83,007 (1987). PO 00000 Frm 00029 Fmt 4703 Sfmt 4703 36447 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). On May 8, 2007, the OHA issued a Proposed Decision and Order (PD&O) establishing tentative procedures to distribute the Consent Order funds. That PD&O was published in the Federal Register, and a 30-day period was provided for the submission of comments regarding our proposed refund plan. See 72 FR 26083 (May 8, 2007). More than 30 days have elapsed and OHA has received no comments concerning these proposed refund procedures. Consequently, the procedures will be adopted as proposed. 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 for 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 covered by the remedial order. 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 E:\FR\FM\03JYN1.SGM 03JYN1 36448 Federal Register / Vol. 72, No. 127 / Tuesday, July 3, 2007 / Notices jlentini on PROD1PC65 with NOTICES 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 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 refined petroleum product 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 2 Applications for Refund be accepted only for motor gasoline pricing violations. With regard to crude oil pricing violations the deadline for filing applications for refund has passed. See infra. 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 VerDate Aug<31>2005 17:57 Jul 02, 2007 Jkt 211001 (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 be 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 postmarked on or before December 28, 2007: Office of Hearings and Appeals, Department of Energy, 1000 Independence Ave., SW., Washington, DC 20585–1615. 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 CFR 205.283, particularly the requirement that applications and the accompanying certification statement be signed by the applicant. The OHA 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. PO 00000 Frm 00030 Fmt 4703 Sfmt 4703 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 of 1999, Public Law 105–277 section 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 E:\FR\FM\03JYN1.SGM 03JYN1 Federal Register / Vol. 72, No. 127 / Tuesday, July 3, 2007 / Notices 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 foregoing Decision. Dated: June 27, 2007. Fred L. Brown, Acting Director, Office of Hearings and Appeals. [FR Doc. E7–12832 Filed 7–2–07; 8:45 am] BILLING CODE 6450–01–P ENVIRONMENTAL PROTECTION AGENCY [EPA–HQ–OW–2003–0064, FRL–8334–6] Agency Information Collection Activity; Proposed Collection; Comment Request; Information Collection Request for Questionnaire for Nominees for the Annual National Clean Water Act Recognition Awards Program, EPA ICR 1287.09, OMB Control Number 2040–0101 Environmental Protection Agency (EPA). ACTION: Notice. jlentini on PROD1PC65 with NOTICES AGENCY: SUMMARY: In compliance with the Paperwork Reduction Act (PRA) (44 U.S.C. 3501 et seq.), this document announces that EPA is planning to submit a request to renew an existing approved Information Collection Request (ICR) to the Office of Management and Budget (OMB). Before submitting the ICR to OMB for review and approval, EPA is soliciting comments on specific aspects of the proposed information collection as described below. DATES: Comments must be submitted on or before September 4, 2007. ADDRESSES: Submit your comments, referencing docket ID number EPA–HQ– OW–2003–0064, by one of the following methods: • https://www.regulations.gov: Follow the online instructions for submitting comments. • E-mail: ow-docket@epa.gov (Identify Docket ID number EPA–HQ– OW–2003–0064, in the subject line). • Mail: Water Docket, Environmental Protection Agency, Mailcode: 2822T, 1200 Pennsylvania Ave., NW., Washington, DC 20460. • Hand Delivery: EPA Docket Center, EPA West, Room 3334, 1301 Constitution Avenue, NW., Washington, DC. Such deliveries are only accepted VerDate Aug<31>2005 17:57 Jul 02, 2007 Jkt 211001 during the Docket’s normal hours of operation, and special arrangements should be made for deliveries of boxed information. Instructions: Direct your comments identified by the Docket ID number EPA–HQ–OW–2003–0064. EPA’s policy is that all comments received will be included in the public docket without change and may be made available online at www.regulations.gov, including any personal information provided, unless the comment includes information claimed to be Confidential Business Information (CBI) or other information whose disclosure is restricted by statute. Do not submit information that you consider to be CBI or otherwise protected through www.regulations.gov or e-mail. The www.regulations.gov Web site is an ‘‘anonymous access’’ system, which means EPA will not know your identity or contact information unless you provide it in the body of your comment. If you send an e-mail comment directly to EPA without going through www.regulations.gov, your e-mail address will be automatically captured and included as part of the comment that is placed in the public docket and made available on the Internet. If you submit an electronic comment, EPA recommends that you include your name and other contact information in the body of your comment and with any disk or CD–ROM you submit. If EPA cannot read your comment due to technical difficulties and cannot contact you for clarification, EPA may not be able to consider your comment. Electronic files should avoid the use of special characters, any form of encryption, and be free of any defects or viruses. For additional information about EPA’s public docket, visit the EPA Docket Center homepage at https:// www.epa.gov/epahome/dockets.htm. FOR FURTHER INFORMATION CONTACT: Gajindar Singh, Municipal Support Division, Office of Wastewater Management, OWM Mail Code: 4204M, Environmental Protection Agency, 1200 Pennsylvania Ave., NW., Washington, DC 20460; telephone number: (202) 564–0634; e-mail address: singh.gajindar@epa.gov. SUPPLEMENTARY INFORMATION: How Can I Access the Docket and/or Submit Comments? EPA has established a public docket for the ICR identified in this document (ID number EPA–HQ–OW–2003–0064), which is available for online viewing at www.regulations.gov, or in person viewing at the Water Docket in the EPA Docket Center (EPA/DC), EPA West, PO 00000 Frm 00031 Fmt 4703 Sfmt 4703 36449 Room 3334, 1301 Constitution Ave., NW., Washington, DC. The EPA/DC Public Reading Room is open from 8 a.m. to 4:30 p.m., Monday through Friday, excluding legal holidays. The telephone number for the Reading Room is 202–566–1744, and the telephone number for the Water Docket is 202– 566–2426. Use www.regulations.gov to obtain a copy of the draft collection of information, submit or view public comments, access the index listing of the contents of the docket, and to access those documents in the public docket that are available electronically. Once in the system, select ‘‘search,’’ then key in the docket ID number identified in this document. What Information Is EPA Particularly Interested in? Pursuant to section 3506(c)(2)(A) of the PRA, EPA specifically solicits comments and information to enable it to: (i) Evaluate whether the proposed collection of information is necessary for the proper performance of the functions of the Agency, including whether the information will have practical utility; (ii) Evaluate the accuracy of the Agency’s estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used; (iii) Enhance the quality, utility, and clarity of the information to be collected; and (iv) Minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated electronic, mechanical, or other technological collection techniques or other forms of information technology, e.g., permitting electronic submission of responses. In particular, EPA is requesting comments from very small businesses (those that employ less than 25) on examples of specific additional efforts that EPA could make to reduce the paperwork burden for very small businesses affected by this collection. What Should I Consider When I Prepare My Comments for EPA? You may find the following suggestions helpful for preparing your comments: 1. Explain your views as clearly as possible and provide specific examples. 2. Describe any assumptions that you used. 3. Provide copies of technical information/data you used that support your views. E:\FR\FM\03JYN1.SGM 03JYN1

Agencies

[Federal Register Volume 72, Number 127 (Tuesday, July 3, 2007)]
[Notices]
[Pages 36446-36449]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-12832]


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DEPARTMENT OF ENERGY

Office of Hearings and Appeals


Implementation of Special Refund Procedures

AGENCY: Office of Hearings and Appeals, Department of Energy.

ACTION: Notice of implementation of Special Refund Procedures.

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SUMMARY: The Office of Hearings and Appeals (OHA) of the Department of 
Energy (DOE) announces the 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 determined that the funds will be distributed in 
accordance with the provisions of 10 CFR part 205, subpart V.

DATES: Applications must be filed in duplicate with OHA by December 28, 
2007.

ADDRESSES: Applications should be sent to the Office of Hearings and 
Appeals, Department of Energy, 1000 Independence Ave., SW., Washington, 
DC 20585-1615. All applications 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.

[[Page 36447]]


SUPPLEMENTARY INFORMATION:
    In accordance with 10 CFR 205.282(b), notice is hereby given of the 
issuance of the Decision and Order set out below. The Decision sets 
forth the procedures that the DOE has 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 relevant audit periods.
    The OHA will distribute the Remedial Order funds in a refund 
proceeding using the procedures described in the Proposed Decision and 
Order published in the Federal Register on May 8, 2007. See 72 FR 26083 
(May 8, 2007). This refund proceeding seeks 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 relevant consent order period.
    All applications must be postmarked by December 28, 2007. All 
applications received in this proceeding 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.

    Dated: June 27, 2007.
Fred L. Brown,
Acting Director, Office of Hearings and Appeals.

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 
relevant audit period. 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 plan to 
distribute those funds. The specific application requirements are 
detailed 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 period of price 
controls, August 13, 1973 through January 27, 1981. 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 in restitution with respect to 
overcharges of each firm in regard to sales to their customers during 
the period of price controls.\1\
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    \1\ See Powerine Oil Company, 21 DOE ] 83,008 (1991); Storey Oil 
Company, Inc., 16 DOE ] 83,007 (1987).
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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).
    On May 8, 2007, the OHA issued a Proposed Decision and Order (PD&O) 
establishing tentative procedures to distribute the Consent Order 
funds. That PD&O was published in the Federal Register, and a 30-day 
period was provided for the submission of comments regarding our 
proposed refund plan. See 72 FR 26083 (May 8, 2007). More than 30 days 
have elapsed and OHA has received no comments concerning these proposed 
refund procedures. Consequently, the procedures will be adopted as 
proposed.

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 for 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 covered by the remedial order.
    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

[[Page 36448]]

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\
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    \2\ Applications for Refund be accepted only for motor gasoline 
pricing violations. With regard to crude oil pricing violations the 
deadline for filing applications for refund has passed. See infra.
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    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 the name and address of the person who should receive 
any refund check.\3\
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    \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.
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    (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 refined petroleum product 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\
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    \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.
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    (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 be 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 postmarked on or 
before December 28, 2007: Office of Hearings and Appeals, Department of 
Energy, 1000 Independence Ave., SW., Washington, DC 20585-1615.
    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 CFR 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 of 1999, Public Law 105-277 
section 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

[[Page 36449]]

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 foregoing Decision.

     Dated: June 27, 2007.
Fred L. Brown,
Acting Director, Office of Hearings and Appeals.
[FR Doc. E7-12832 Filed 7-2-07; 8:45 am]
BILLING CODE 6450-01-P
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