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B-200170 1 (1980-10-10)

handle is hein.gao/gaobabjwy0001 and id is 1 raw text is: Bn COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON D..2S48 .October 10, 1980 B-200170 The Honorable John D. Dingell, Chairman Subcarnittee on Energy and Power Catmittee on Interstate and Foreign Ccamerce House of Representatives Dear Mr. Chairman: L d4~>~ 1CE ~ YOU have requested that we review the legality of plans by the Department of Energy (Energy)-to distribute $25 million it holds under te terms of,& consent order with Getty Oil Ccmpany7 The consent order resulted from allegations by Energy that Getty ha&dzViolated Federal oil price and allocation regulations. Energy has announced that it plans to distribute $21 million of the Getty funds to 20 states in which Getty sells heating oil to be used to benefit low-income residents. The remaining $4 million will be distributed through the Department of Defense (Defense) to lower pay grade members of the armed services who reside off base in states where Getty does business. On July 23, 1980, you wrote to the Secretary of Energy concerning the Getty fund, requesting, among other things, a legal mamorandum by Energy's General Counsel justifying the proposed plan for distribution. In the legal memorandum, dated August 20, 1980,/_Energy argues that it has implied power to order restitution as a remedy for violations of price and alloca- tion regulations; that it has consistently interpreted its on enforcement powers as including any action necessary to eliminate or compensate for the effects of violations; that the Getty distribution plan is based on restitu- tion and is therefore within Energy's powers; that the Getty funds are not moneys received for the use of the United States, and therefore need not be deposited into the Treasury as miscellaneous receipts; and that Energy's o wn regulation, which provides that when the victims of price regulation viola- tions cannot be identified overcharge refunds may be made directly to the Treasury, is not mandatory and need not be followed in this case.3 We conclude that, because Energy's distribution plan does not effect restitution, as we define that term, and because Energy has not followed its own regulations, Energy may not lawfully implement the Getty distri- bution plan. 7 The Facts The Consent Order was approved by Getty Oil Company on November 26, 1979, and by Energy on December 3, 1979. By its terms the Order settled, with stated exceptions, all claims and disputes between Getty and Energy concerning Getty's compliance with oil price and allocation regulations during the period August 19, 1973, through December 31, 1978. 6 /Z-55-/

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