Federal Register / Vol. 60, No. 71 / Thursday, April 13, 1995 / Notices 18811

Appendix—Continued

Case No., firm Address Settlement period Date of consent order

Amount received Product

LEF–0063, G&G Oil Co. of

Indiana, Inc.

220 E. Centennial Ave.,

Muncie, IN 47305.

4/1/79–12/31/79 2/1/83 49,097.11 Refined petroleum products.

LEF–0064, General Petroleum Products, Inc.P.O. Box 209, Gary, IN

46402.

11/1/73–4/30/74 7/13/83 23,060.52 Refined petroleum products.

LEF–0065, Reco Petroleum,

Inc.

100 N. 4th St., Reading, PA

19601.

3/1/79–1/30/81 2/8/83 26,472.40 Gasoline.

LEF–0066, SOS Monarch

Oil Corp.

East Village Rd., Tuxedo,

NY 10987.

4/1/79–9/30/79 10/25/82 5,901.03 Gasoline.

LEF–0067, Capitol 66 oil

Company.

P.O. Box 2839, Jackson,

MS 39207.

11/1/73–3/31/74 9/15/82 15,766.43 Refined petroleum products.

LEF–0068, Cumberland

Farms Dairy, Inc.

777 Dedham St., Canton,

MA 02021.

1/1/73–1/28/81 4/17/83 183,193.74 Gasoline.

LEF–0069, Kickapoo Oil Co 215 E. Madison, Hillsboro,

WI 54634.

3/1/79–8/31/79 9/24/82 40,812.58 Gasoline.

LEF–0070, Lampton-Love,

Inc.

P.O. Drawer 1607, Jackson,

MS 39205.

11/73–4/74 9/30/82 12,983.93 Gasoline.

LEF–0071, Skinny’s Inc ...... 5189 Texas Ave., Abilene,

TX 79608.

3/1/79–3/31/80 9/2/82 16,000.00 Gasoline.

LEF–0072, Vermont Morgan

Corp.

114 Broadway, Saratoga,

NY 12866.

4/1/79–6/30/79 4/5/83 20,275.00 Gasoline.

LEF–0075, Bob’s Broadway

Shell.

220 W. 17th St., Santa Ana,

CA 92708.

8/1/79–5/7/80 10/8/81 2,100.00 Gasoline.

LEF–0076, Clearview Gulf .. 3120 Clearview Parkway,

Metairie, LA 70002.

4/1/79–7/15/79 8/14/81 594.84 Gasoline.

LEF–0077, E–Z Serve, Inc . P.O. Box 3579, Abilene, TX

79604.

8/19/73–1/27/81 12/27/82 368,550.56 Gasoline.

LEF–0079. Millbrae Shell .... 825 Spruance Ln., Foster

City, CA 94404.

8/1/79–11/30/79 3/5/82 2,500.00 Gasoline.

LEF–0080, Bob Hutchinson,

Inc.

1334 Breckenridge St., San

Leandro, CA 94579.

8/1/79–11/30/79 3/5/82 1,762.00 Gasoline.

LEF–0016, Maxwell Oil Co.,

Inc.

P.O. Box 1936, Olympia,

WA 98507.

5/1/79–12/1/79 9/1/81 275.01 Gasoline.

[FR Doc. 95–9172 Filed 4–12–95; 8:45 am]

BILLING CODE 6450–01–P

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 disbursement of a total of

$7,280,202, plus accrued interest, in

crude oil overcharges obtained by the

DOE from MAPCO, Inc. and MAPCO

International, Inc., Case No. VEF–0004

(MAPCO). The OHA has determined

that the funds obtained from MAPCO,

plus accrued interest, will be distributed

in accordance with the DOE’s Modified

Statement of Restitutionary Policy in

Crude Oil Cases, 51 Fed. Reg. 27899

(August 4, 1986).

DATES AND ADDRESSES: Comments must

be filed on or before May 15, 1995, and

should be addressed to the Office of

Hearings and Appeals, Department of

Energy, 1000 Independence Ave., S.W.,

Washington, DC 20585. All comments

should display a reference to Case No.

VEF–0004.

FOR FURTHER INFORMATION CONTACT:

Thomas O. Mann, Deputy Director,

Roger Klurfeld, Assistant Director,

Office of Hearings and Appeals, 1000

Independence Avenue, S.W.,

Washington, DC 20585, (202) 586–2094

(Mann); 586–2383 (Klurfeld).

SUPPLEMENTARY INFORMATION: In

accordance with 10 C.F.R. 205.282(c),

notice is hereby given of the issuance of

the Proposed Decision and Order set out

below. The Proposed Decision and

Order sets forth the procedures that the

DOE has tentatively formulated to

distribute a total of $7,280,202, plus

accrued interest, remitted to the DOE by

MAPCO, Inc. and MAPCO International,

Inc. to the DOE. The DOE is currently

holding these funds in an interest

bearing account pending distribution.

The OHA proposes to distribute these

funds in accordance with the DOE’s

Modified Statement of Restitutionary

Policy in Crude Oil Cases, 51 FR 27899

(August 4, 1986) (the MSRP). Under the

MSRP, crude oil overcharge monies are

divided among the federal government,

the states, and injured purchasers of

refined petroleum products. Refunds to

the states will be distributed in

proportion to each state’s consumption

of petroleum products during the price

control period. Refunds to eligible

purchasers will be based on the volume

of petroleum products that they

purchased and the extent to which they

can demonstrate injury.

The tentative deadline for filing

Applications for Refund is June 3, 1996.

As we state in the Proposed Decision,

any party who has previously submitted

a refund application in the crude oil

proceedings should not file another

Application for Refund. The previously

filed crude oil application will be

deemed filed in all crude oil

proceedings as the proceedings are

finalized.

Dated: April 4, 1995.

George B. Breznay,

Director, Office of Hearings and Appeals.

Proposed Decision and Order of the

Department of Energy

Implementation of Special Refund

Procedures

Name of Firm: MAPCO International, Inc.

Date of Filing: February 23, 1995

Case Number: VEF–0004
18812 Federal Register / Vol. 60, No. 71 / Thursday, April 13, 1995 / Notices

Dated: April 4, 1995.

On February 23, 1995, the Economic

Regulatory Administration (ERA) of the

Department of Energy (DOE) filed a Petition

for the Implementation of Special Refund

Procedures with the Office of Hearings and

Appeals (OHA), to distribute crude oil

overcharge funds received from MAPCO, Inc.

(MAPCO) pursuant to a June 23, 1994

Settlement Agreement. The Settlement

Agreement resolved claims and litigation

arising from an April 21, 1986 Remedial

Order originally issued to MAPCO Inc.’s

subsidiary MAPCO International, Inc.

(MAPCO International) (Case No. HRO–

0193). In accordance with the provisions of

the procedural regulations at 10 C.F.R. Part

205, Subpart V (Subpart V), the ERA requests

in its Petition that the OHA establish special

procedures to make refunds in order to

remedy the effects of alleged regulatory

violations set forth in the Remedial Order.

This Decision and Order sets forth the OHA’s

plan to distribute these funds.

I. Background

During the period relevant to this

proceeding, MAPCO International, Inc. was a

reseller of crude oil. On June 30, 1983, the

ERA issued a Proposed Remedial Order

(PRO) to the firm. The PRO alleged that

during the period from August 1978 through

November 1980 (the audit period), MAPCO

International sold crude oil at prices in

excess of those permitted by 10 C.F.R. Part

212, Subpart L. After considering and

dismissing MAPCO International’s objections

to the PRO, the DOE issued a final Remedial

Order. 14 DOE ¶ 83,019 (1986). MAPCO

International appealed the Remedial Order to

the Federal Energy Regulatory Commission,

which affirmed the Remedial Order. 43 FERC

¶ 63,041 (1988); 56 FERC ¶ 61,063 (1991).

Three years of litigation ensued. MAPCO,

MAPCO International and the DOE finally

resolved all their disputes arising from the

Remedial Order with the June 23, 1994

Settlement Agreement. Pursuant to the

Settlement Agreement, MAPCO remitted to

the DOE the sum of $7,280,202, to which

interest has since accrued. These funds are

being held in an interest-bearing escrow

account maintained at the Department of the

Treasury pending a determination regarding

their proper distribution.

II. Jurisdiction and Authority

The Subpart V regulations set forth general

guidelines which may be used by the OHA

in formulating and implementing a plan of

distribution of funds received as a result of

an enforcement proceeding. The DOE policy

is to use the subpart V process to distribute

such funds. For a more detailed discussion

of Subpart V and the authority of the OHA

to fashion procedures to distribute refunds,

see Petroleum Overcharge Distribution and

Restitution Act of 1986, 15 U.S.C. 4501 et

seq., Office of Enforcement, 9 DOE ¶ 82,508

(1981), and Office of Enforcement, 8 DOE ¶

82,597 (1981) (Vickers).

We have considered the ERA’s petition that

we implement Subpart V proceedings with

respect to the MAPCO funds and have

determined that such proceedings are

appropriate. This Proposed Decision and

Order sets forth the OHA’s tentative plan to

distribute these funds. Before taking the

actions proposed in this Decision, we intend

to publicize our proposal and solicit

comments from interested parties. Comments

regarding the tentative distribution processes

set forth in this Proposed Decision and Order

should be filed with the OHA within 30 days

of its publication in the Federal Register.

III. Proposed Refund Procedures

A. Crude Oil Refund Policy

We propose to distribute the monies

remitted by MAPCO in accordance with

DOE’s Modified Statement of Restitutionary

Policy in Crude Oil Cases (MSRP). See 51 FR

27899 (August 4, 1986). This policy has been

applied in all Subpart V proceedings

involving alleged crude oil violations. See

Order Implementing the MSRP, 51 Fed. Reg.

29689 (August 20, 1986) (the August 1986

Order).

Under the MSRP, 40 percent of crude oil

overcharge funds will be refunded to the

federal government, another 40 percent to the

states, and up to 20 percent may initially be

reserved for the payment of claims to injured

parties. The MSRP also specifies that any

funds remaining after all valid claims by

injured purchasers are paid will be disbursed

to the federal government and the states in

equal amounts. See In re: The Department of

Energy Stripper Well Exemption Litigation,

653 F. Supp. 108 (D. Kan.), 6 Fed. Energy

Guidelines ¶ 90,509 (1986) (the Stripper Well

Settlement Agreement) for a more detailed

discussion of the MSRP.

On April 10, 1987, the OHA issued a

Notice analyzing the numerous comments

received in response to the August 1986

Order. 52 Fed. Reg. 11737 (April 10, 1987)

(the April 10 Notice). This Notice provided

guidance to claimants that anticipated filing

refund applications for crude oil monies

under the subpart V regulations. In general,

we stated that all claimants would be

required to (1) document their purchase

volumes of petroleum products during the

August 19, 1973 through January 27, 1981

crude oil price control period, and (2) prove

that they were injured by the alleged crude

oil overcharges. End-users of petroleum

products whose businesses were unrelated to

the petroleum industry would be presumed

to have been injured by the alleged crude oil

overcharges and would not be required to

submit proof of injury. See City of Columbus,

Georgia, 16 DOE ¶ 85,550 (1987).

B. Refund Claims

The amount of money covered by this

Proposed Decision is $7,280,202, plus

accrued interest. In accordance with the

MSRP, we propose initially to reserve 20

percent of those funds ($1,456,040 in

principal, plus accrued interest) for direct

refunds to applicants who claim that they

were injured by crude oil overcharges.

We propose to evaluate claims in the

MAPCO crude oil refund proceeding in

exactly the same manner as in other crude oil

proceedings. As we stated in the April 10

Notice, claimants will generally be required

to document their purchase volumes of

petroleum products and prove that they were

injured as a result of the alleged violations.

We propose to base the refunds on a

volumetric amount which has been

calculated in accordance with the description

in the April 10 Notice. We will also presume

that the alleged crude oil overcharges were

absorbed, rather than passed on, by

applicants who were (1) end-users of

petroleum products, (2) unrelated to the

petroleum industry, and (3) not subject to the

regulations promulgated under the

Emergency Petroleum Price and Allocation

Act of 1973, 15 U.S.C. 751–760h. In order to

receive a refund, such claimants need not

submit any evidence of injury beyond

documentation of their purchase volumes.

As has been stated in earlier Decisions, a

crude oil refund applicant will only be

required to submit one application for its

share of all available crude oil overcharge

funds. See, e.g., A.Tarricone Inc., 15 DOE

¶ 85,475 (1987). A party that has already

submitted a claim in any other crude oil

refund proceeding implemented by the DOE

need not file another claim. The tentative

deadline for filing an Application for Refund

is June 3, 1996. Any claimant that has

executed a valid waiver pursuant to one of

the escrow accounts established by the

Stripper Well Agreement, however, has

waived its right to file an application for a

Subpart V crude oil refund. See MidAmerican Dairymen v. Herrington, 878 F. 2d

1448 (Temp. Emer. Ct. App.), 3 Fed. Energy

Guidelines ¶ 26,617 (1989); In re: Department

of Energy Stripper Well Exemption Litigation,

707 F. Supp. 11267 (D. Kan.), 3 Fed. Energy

Guidelines ¶ 26,613 (1987).

C. Payments to the States and Federal

Government

Under the terms of the MSRP, we propose

that the remaining 80 percent of the amount

remitted by MAPCO, or $5,824,162 in

principal, plus accrued interest, be disbursed

in equal shares to the states and federal

government for indirect restitution. Refunds

to the states will be in proportion to the

consumption of petroleum products in each

state during the crude oil price control

period. The share of the funds allocated to

each state is contained in Exhibit H of the

Stripper Well Agreement. When disbursed,

these funds will be subject to the same

limitations and reporting requirements that

apply to any other crude oil overcharge funds

received by the states in accordance with the

Stripper Well Agreement.

It Is Therefore Ordered That:

The payment remitted to the Department of

Energy by MAPCO, Inc. pursuant to the

Settlement Agreement dated June 23, 1994

will be distributed in accordance with the

foregoing Decision.

[FR Doc. 95–9171 Filed 4–12–95; 8:45 am]

BILLING CODE 6450–01–P