[Federal Register Volume 59, Number 218 (Monday, November 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-28045]


[[Page Unknown]]

[Federal Register: November 14, 1994]


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DEPARTMENT OF ENERGY
Office of Hearings and Appeals

 

Determination of Excess Petroleum Violation Escrow Funds for 
Fiscal Year 1995

Agency: Office of Hearings and Appeals, U.S. Department of Energy.

Action: Notice of Determination of Excess Monies Pursuant to the 
Petroleum Overcharge Distribution and Restitution Act of 1986.

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Summary: The Petroleum Overcharge Distribution and Restitution Act of 
1986 requires the Secretary of Energy to determine annually the amount 
of oil overcharge funds held in escrow that is in excess of the amount 
needed to make restitution to injured parties. Notice is hereby given 
that $20,875,570 of the amounts currently in escrow is determined to be 
excess funds for fiscal year 1995. Pursuant to the statutory directive, 
these funds will be made available to state governments for use in 
specified energy conservation programs.

For Further Information Contact: Thomas O. Mann, Deputy Director, Roger 
Klurfeld, Assistant Director, Office of Hearings and Appeals, U.S. 
Department of Energy, 1000 Independence Avenue, SW., Washington, DC 
20585, (202) 586-2094 [Mann]; (202) 586-2383 [Klurfeld].

Supplementary Information: The Petroleum Overcharge Distribution and 
Restitution Act of 1986 (hereinafter PODRA), contained in Title III of 
the Omnibus Budget Reconciliation Act of 1986, Public Law 99-509, 
establishes certain procedures for the disbursement of funds collected 
by the Department of Energy (hereinafter DOE) pursuant to the Emergency 
Petroleum Allocation Act of 1973 (hereinafter EPAA) or the Economic 
Stabilization Act of 1970 (hereinafter ESA). These funds, commonly 
referred to as oil overcharge funds, are monies obtained through 
enforcement actions instituted to remedy actual or alleged violations 
of those Acts.
    PODRA requires the DOE, through the Office of Hearings and Appeals 
(hereinafter OHA), to conduct proceedings under 10 CFR Part 205, 
Subpart V, to accept claims for restitution from the public and to 
refund oil overcharge monies to persons injured by violations of the 
EPAA or the ESA. In addition, PODRA requires the Secretary of Energy to 
determine annually the amount of oil overcharge funds that will not be 
required for restitution to injured parties in these refund proceedings 
and to make this excess available to state governments for use in four 
energy conservation programs. This determination must be published in 
the Federal Register within 45 days after the beginning of each fiscal 
year. The Secretary has delegated this responsibility to the OHA 
Director.
    Notice is hereby given that based on the best currently available 
information, $20,875,570 is in excess of the amount that is needed to 
make restitution to injured parties.
    To arrive at that figure, the OHA has reviewed all accounts in 
which monies covered by PODRA are deposited. PODRA generally covers all 
funds now in DOE escrow which are derived from alleged violations of 
the EPAA or the ESA, with certain exclusions. Excluded are funds which 
(1) have been identified for indirect restitution in orders issued 
prior to enactment of PODRA; (2) have been identified for direct 
restitution in a judicial or administrative order; or (3) are 
attributable to alleged violations of regulations governing the pricing 
of crude oil and subject to the settlement agreement in In re The 
Department of Energy Stripper Well Exemption Litigation, M.D.L. No. 378 
(D. Kan., July 7, 1986). As of September 30, 1994, the total in escrow 
subject to the PODRA procedures was $164,811,620.
    The OHA has employed the following methodology to determine the 
amount of excess funds. We took special account of the provision of 
PODRA which directs that ``primary consideration [be given] to assuring 
that at all times sufficient funds (including a reasonable reserve) are 
set aside for making [direct] restitution.'' Thus, in proceedings in 
which refund claims are pending, we have on a claim-by-claim basis 
examined pending claims and established reserves sufficient to pay the 
entire amount of these claims. The reserves also include all refunds 
ordered by the OHA since the end of the last fiscal year on September 
30, 1994, but not yet paid. For proceedings in which all claims have 
been considered or in which no claims have been filed, and the deadline 
for filing claims has passed, all funds remaining are excess. Small 
amounts of interest accrued, until transfer, on funds in accounts that 
were closed (with a zero balance) in the fiscal year 1994 PODRA 
determination (58 FR 60018 (1993)) are included as part of the 
``excess'' for fiscal year 1995. Finally, a relatively small amount of 
oil overcharge funds is currently subject to the control of the 
Department's Economic Regulatory Administration, which finds in its 
accompanying determination, as it has found in the past, that none of 
those funds are currently excess. No ``other commitments'' are 
reflected in the reserves.
    As indicated above, the total escrow account equity subject to 
PODRA is $164,811,620. The total amount needed as reserves for direct 
restitution in those cases is $143,936,050. When this figure is 
subtracted from the former, the remainder--$20,875,570--is the amount 
in fiscal year 1995 that is ``in excess'' of the amount that will be 
needed to make restitution to injured persons. Appendix A sets forth 
for each refund case within the OHA's jurisdiction the total amount 
eligible for distribution under PODRA and the ``excess'' amount. 
Appendix B reflects information supplied by the Economic Regulatory 
Administration regarding cases subject to PODRA under its jurisdiction.
    Accordingly, $20,875,570 will be transferred to a separate account 
within the United States Treasury and made available to the States for 
use in the four designated energy conservation programs in the manner 
prescribed by PODRA.

    Date: November 8, 1994.
George B. Breznay,
Director Office of Hearings and Appeals.
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Appendix B

October 17, 1994.
MEMORANDUM FOR: George B. Breznay, Director, Office of Hearings and 
Appeals

SUBJECT: ERA Input for the PODRA Section 3003(c) Report

    ERA has reviewed the funds held in escrow as of September 30, 
1994, which have not been petitioned under Subpart V. The purpose of 
the review was to identify funds held in escrow in excess of the 
amounts required to effect restitution to persons or classes of 
persons in accordance with Section 3003(b)(1) of the Petroleum 
Overcharge Distribution and Restitution Act of 1986 (PODRA). Since 
the amount of funds which will be available and the extent of claims 
which will be filed are not known, the funds currently on deposit in 
the escrow accounts we reviewed are not excess funds for the 
purposes of PODRA.
Jay F. Thompson,
Director, Office of Management and Information Systems, Economic 
Regulatory Administration, Office of General Counsel.
[FR Doc. 94-28045 Filed 11-10-94; 8:45 am]
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