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B-209699 1 (1983-05-19)

handle is hein.gao/gaobadlbu0001 and id is 1 raw text is: DECISION FILE: B-209699 TKr-; CCMPTRDLLEP GENERAL OF THE UNITED BTATES WASHINGTON. 0. C. 20548 DATE: May 19, 1983 MATTER OF: Department of Energy use of consent orders to distribute petroleum overcharge settlement funds DIGEST: 1. In distributing funds under consent orders with alleged violators of petroleum price and allocation regulations, Department of Energy must attempt to return funds to those actually injured by over- charges. Where this is not possible, Energy must use mandatory procedure established by 10 C.F.R. § 205.280 et seq., which creates mechanisms for injured parties to claim refunds. Distribution of consent order funds by oil companies is not permis- sible without restitutionary nexus because Energy lacks authority to do indirectly what it cannot do directly. In-kind deposit of oil in Strategic Petroleum Reserve by oil conpanies is not permissi- ble because it lacks restitutionary nexus and is not otherwise authorized. 2. Distribution of consent order funds to states by oil coupanies or Department of Energy is permissible only if states are required to use funds exclusively for energy-related purposes with restitutionary nexus to nature of overcharges, for benefit of class of consumers overcharged, and according to plans ap- proved by Energy. Any funds not able to be distri- buted by oil companies in appropriate restitutionary manner must revert to Ennergy for disposition under procedure in 10 C.F.R § 205.280 et secr. If no con- sinrers or classes of consurers can be identified by administrative procedure, and no restitutionary nexus for payments to states can be found, only remaining authorized distribution is deposit of funds in miscellaneous receipts account of Treasury. This decision to the Secretary of Energy results from a request of the Chairman, Oversight and Investigations Subcommittee, House Comittee on Energy and Coierce, that we examine the validity of and continued use by the Department of Energy (Energy) of various provisions in consent orders with producers of petroleum products, by which Energy has been making or permitting the producers to make direct distribution of overcharge settlement funds to parties who have no clear connection to the overcharges which gave rise to the settlements. The purpose of the consent orders is to settle alleged violations of Federal petroleum price and allocation regulations through payments by the producers, the amounts of which were arrived at by neqotiation with Enerq,'s Eoo~omic Ru,, v .nistrtn or Office of Special Counsel.

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