[Federal Register Volume 62, Number 220 (Friday, November 14, 1997)]
[Notices]
[Pages 61109-61110]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-30004]


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DEPARTMENT OF ENERGY

Office of Hearings and Appeals


Determination of Excess Petroleum Violation Escrow Funds for 
Fiscal Year 1998

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

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 $20,610,767 of the amounts currently in escrow is determined to be 
excess funds for fiscal year 1998. Pursuant to the statutory directive, 
these funds will be made available to state governments for use in 
specified energy conservation programs.
FOR FURTHER INFORMATION: 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 
20585-0107, (202) 426-1492 [Mann]; (202) 426-1449 [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, Pub. L. No. 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, $20,610,767 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, 1997, the total in escrow 
subject to the PODRA procedures was $96,366,739.
    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 
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, 1997, 
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 1997 PODRA 
determination (61 FR 58545 (1996)) are included as part of the 
``excess'' for fiscal year 1998. No ``other commitments'' are reflected 
in the reserves.
    As indicated above, the total escrow account equity subject to 
PODRA is $96,366,739. The total amount needed as reserves for direct 
restitution in those cases is $75,755,972. When this figure is 
subtracted from the former, the remainder--$20,610,767--is the amount 
in fiscal year 1998 that is ``in excess'' of the amount that will be 
needed to make restitution to injured persons. The Appendix to this 
Notice sets forth for each refund case within the OHA's jurisdiction 
the total amount eligible for distribution under PODRA and the 
``excess'' amount.
    Accordingly, $20,610,767 will be transferred to a separate account 
within the United States Treasury and made available to the States for 
use in the designated energy conservation programs in the manner 
prescribed by PODRA.

    Dated: November 7, 1997.
George B. Breznay,
Director, Office of Hearings and Appeals.

                              Amount Available for Indirect Restitution in FY 1998                              
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                                                                               Equity as of     Amount available
           Name of company                    Consent order  number           Sept. 30, 1997        in FY 98    
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ATLANTIC RICHFIELD CO (ARCO).........  RARH00001Z                              $11,566,398.41      $7,000,000.00
ENRON CORPORATION....................  730V00221Z                               21,225,255.49       3,200,000.00
TEXACO INC...........................  RTXE006A1Z                                3,166,580.85       3,166,580.85

[[Page 61110]]

                                                                                                                
ANCHOR GASOLINE CORPORATION..........  740S01247Z                                4,821,029.39       1,500,000.00
GETTY OIL COMPANY....................  RGEA00001Z                                6,515,165.75       1,500,000.00
EASON OIL COMPANY....................  740S01314Z                                4,771,886.91       1,000,000.00
PERMIAN CORPORATION..................  650X00246T                                1,607,933.32       1,000,000.00
WITCO CHEMICAL CORP..................  240S00054Z                                  912,335.34         912,335.34
HOUMA OIL CO.........................  640H10422W                                  432,725.63         432,725.63
GULF OIL CORPORATION.................  RGFA00001Z                                3,914,723.65         400,000.00
ESTE OIL COMPANY.....................  533H00163T                                   76,895.24          76,895.24
PRODUCT TRACKING--PODRA..............  999DOE005W                                   68,191.04          68,191.04
G & G OIL COMPANY....................  550H00332T                                   59,892.61          59,892.61
KICKAPOO OIL.........................  570H00214T                                   49,785.49          49,785.49
BELL FUELS INC.......................  570H00195T                                   41,441.15          41,441.15
RECO PETROLEUM INC...................  320H00304T                                   32,290.43          32,290.43
GENERAL PETROLEUM....................  550H00075T                                   28,128.31          28,128.31
VERMONT MORGAN CORP..................  110H00514T                                   24,729.79          24,729.79
SKINNEY'S INC........................  400H00227T                                   19,514.04          19,514.04
CAPITOL 66 OIL COMPANY...............  422H00238T                                   19,229.53          19,229.53
MAXWELL OIL CO.......................  000H00425Z                                   18,854.94          18,854.94
LAMPTON-LOVE INC.....................  422T00013T                                   15,834.29          15,834.29
CUMBERLAND FARMS DAIRY INC...........  120K00497T                                    7,567.04           7,567.04
EMPIRE GAS CORPORATION...............  720T00521Z                                    7,392.49           7,392.49
SOS MONARCH OIL CORP.................  240H00498T                                    7,193.33           7,193.33
N C GINTHER COMPANY..................  710V03022T                                    5,983.41           5,983.41
METROPOLITAN PETROLEUM CO, INC.......  414H00171Z                                    5,736.27           5,736.27
JEDCO INC............................  421K00107W                                    4,326.42           4,326.42
E-Z SERVICE INC......................  400H00220T                                    3,722.26           3,722.26
BEACON BAY ENTERPRISES, INC..........  999K90120T                                    1,015.95           1,015.95
MOCKABEE GAS & FUEL CO...............  311H00342W                                      752.83             752.83
ELWOOD CHEVRON SERVICE...............  999K90098T                                      547.67             547.67
DALCO PETROLEUM......................  660T00642Z                                       39.86              39.86
MARATHON PETROLEUM CO................  RMNA00001Z                                       23.33              23.33
SUNSET BLVD CAR WASH.................  999K90113T                                       22.54              22.54
GENERAL EQUITIES, INC................  110H00527Z                                       15.41              15.41
QUANTUM CHEMICAL CORPORATION.........  720V01245Z                                        0.02               0.02
AOC ACQUISITION CORPORATION..........  RCKH016A1Z                               10,089,118.08               0.00
GOOD HOPE REFINERIES INC.............  150S00154Z                                3,973,915.80               0.00
GULF STATES OIL & REFINING...........  6E0S00057T                                  609,991.91               0.00
HUDSON OIL CO. INC...................  740S01258W                                9,214,807.75               0.00
INTERCOASTAL OIL CO..................  940X00076T                                   35,303.15               0.00
KENNY LARSON OIL CO..................  000H00439W                                    5,152.10               0.00
MACMILLAN OIL COMPANY, INC...........  730T00031Z                                  601,344.51               0.00
OASIS PETROLEUM CORP.................  940X00217Z                                2,174,279.49               0.00
SHELL OIL COMPANY....................  RSHA00001Z                                5,670.793.37               0.00
TESORO PETROLEUM CORP................  BUBBBBBBBB                                2,117,333.61               0.00
VESSELS GAS PROCESSING, LTD..........  740V01387W                                2,441.538.79               0.00
                                                                           -------------------------------------
    Totals...........................  ...................................      96,366,738.99      20,610,767.51
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[FR Doc. 97-30004 Filed 11-13-97; 8:45 am]
BILLING CODE 6450-01-P