Highland Petroleum, Inc. v. United States Department of Energy

798 F.2d 474, 1986 U.S. App. LEXIS 27489
CourtTemporary Emergency Court of Appeals
DecidedJune 26, 1986
DocketNo. 10-61
StatusPublished
Cited by4 cases

This text of 798 F.2d 474 (Highland Petroleum, Inc. v. United States Department of Energy) is published on Counsel Stack Legal Research, covering Temporary Emergency Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Highland Petroleum, Inc. v. United States Department of Energy, 798 F.2d 474, 1986 U.S. App. LEXIS 27489 (tecoa 1986).

Opinion

MacBRIDE, Judge:

Highland Petroleum, Inc., C & C, Inc., Crest Petroleum Corp., Criswell Petroleum Products Co., B. Ethridge Oil Co., Gas-Mart Co., Hudson Oil Co., Mertens Oil Co., Parks Oil Co., Purity Oil Co., Ronco Oil Corp., and Sooner Oil Co. (“Appellants”) appeal from an order of the United States District Court for the District of Colorado (Carrigan, J.) dismissing, for lack of standing, appellants’ action against the United States Department of Energy (“DOE”).

We reverse and remand.

I

On May 11, 1979, DOE and the Vickers Energy Corporation (“Vickers”) entered into a Consent Order fully settling DOE allegations that Vickers overcharged its customers for petroleum products other than crude oil from August, 1973 through March, 1979, in violation of price regulations promulgated under the Economic Stabilization Act of 1970 (“ESA”), 12 U.S.C. § 1904 note, and the Emergency Petroleum Allocation Act of 1973 (“EPAA”), 15 U.S.C. § 751 et seq. Without admitting any legal violation, Vickers agreed to refund many of its customers for alleged price overcharges during the period in question.

Specifically, under the terms of the Consent Order, Vickers agreed to: (1) refund $6,300,000 to retail purchasers of its motor gasoline by reducing the retail prices of gasoline sold through company-operated service stations; and (2) refund its wholesale customers and other down-stream purchasers of its gasoline by paying $2,850,000 into an interest-bearing escrow fund, the proceeds of which would be distributed by DOE’s Office of Hearings & Appeals (“OHA”) through use of its special refund (or “Subpart V [Vee]”) procedures. See 10 C.F.R. Part 205, Subpart V (1986).1

With respect to the escrow fund, the Consent Order provided that “as a condition precedent to any purchaser’s eligibility to receive a refund” from the escrow fund, the purchaser would be required to “waive and release any and all claims and rights” it might have against Vickers for the alleged overcharges. Stipulated Record on Appeal (“R.”) at 83. The Consent Order provided further that, “to the maximum extent practicable and consistent with sound public policy,” all available proceeds of the escrow fund should be distributed among eligible2 and applying purchasers. Id.3

Acting pursuant to Subpart V, see 10 C.F.R. § 205.282(a) (1986), OHA on February 27, 1981, issued a Proposed Decision and Order in which it “considerfed] the procedures under which the $2,850,000 in escrow should be distributed.” R. at 109. OHA suggested a method by which purchasers could “establish entitlement to a [476]*476refund,” and proposed that refunds be made on a “volumetric basis,” which OHA defined as “based on the proportion of motor gasoline purchased by the applicant to the total amount of motor gasoline marketed by Vickers through other than company operated outlets during the relevant period.” R. at 114-15. OHA announced its intention to distribute any funds remaining after eligible applicants had been refunded in such a way as to benefit ultimate energy consumers in an “eight state area in which the motor gasoline pricing violations are likely to have occurred.” R. at 116.

On July 17, 1981, OHA issued a final Decision and Order in which it outlined a two-state refund procedure for distributing the escrow funds. See 10 C.F.R. § 205.-282(c)-(d) (1986). During the first stage, OHA would distribute refunds volumetrically to eligible applicants. During the second stage, it would distribute any funds remaining. OHA did not announce a second-stage refund procedure. It deferred that decision until after it had completed the first-stage distribution, stating that “the most efficient distribution of the remainder of the Consent Order funds will be dictated, in large part, by the amount of the fund remaining after all eligible claims are paid.” R. at 175.

With that, first stage claimants began applying for refunds based on the percentage of alleged Vickers overcharges they had absorbed. OHA processed these claims and distributed refunds. As a condition to receiving a refund, each claimant released Vickers from liability. Appellants were among those wholesalers who received first-stage refunds and released Vickers from liability.

On January 16, 1985, after all individual first-stage claims had been processed and the claimants paid, OHA issued a final Decision and Order on “second-stage procedures for distributing the money remaining in the Vickers consent order fund.” R. at 234. See 10 C.F.R. § 205.282(e) (1986). OHA stated that it had “distributed a total of more than $1.5 million to 309” first-stage claimants, and that “[a]s of December 31, 1984, $2,638,217 of the Vickers consent order fund (including interest) remains available for distribution through second-stage refund procedures.” R. at 235. After discussing various methods by which it might best “serve the equitable and restitutionary goals of the Subpart V process,” R. at 237, OHA announced that it would distribute the remaining escrow funds directly to sixteen states in which Vickers had marketed motor gasoline, as a form of indirect restitution to unidentified injured purchasers.4 R. at 239.

In February 1985, appellants filed the underlying action in the district court challenging OHA’s January 16, 1985 Decision and Order. Thereafter, by agreement, the parties filed cross-motions for summary judgment. Appellants argued that the Decision and Order was in excess of DOE’s statutory and regulatory authority, and contrary to the terms of the Consent Order. DOE argued, inter alia, that “as non-parties to the Consent Order [appellants] do not have standing to enforce their interpretation of the Consent Order.” R. at 413.

By Order dated June 21, 1985, the district court dismissed appellants’ action. The court held that appellants “lack[ed] standing to bring this action for the reasons stated in Jaymark Corp. v. Philips Petroleum Co., No. 83-592 (D.D.C.Dec. 212, [sic] 1983). See also Payne 22, Inc. v. United States, No. DC-102 [762 F.2d 91] (TECA March 29, 1985).” R. at 883. The court did not elaborate on its reasoning, stating that, “Unfortunately time constraints preclude my writing a full opinion.” Id. From this Order appellants bring the instant appeal.

II

The district court’s determination that appellants are without standing to bring [477]*477the underlying action is a conclusion of law. Motive Parts Warehouse v. Facet Enterprises, 774 F.2d 380, 389 (10th Cir. 1985); Bubar v. Ampco Foods, Inc., 752 F.2d 445, 449 (9th Cir.), cert. denied, — U.S.—, 105 S.Ct. 3481, 87 L.Ed.2d 616 (1985). Accordingly, we review de novo. In re Bialac, 712 F.2d 426, 429 (9th Cir. 1983); accord Bailey v.

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Bluebook (online)
798 F.2d 474, 1986 U.S. App. LEXIS 27489, Counsel Stack Legal Research, https://law.counselstack.com/opinion/highland-petroleum-inc-v-united-states-department-of-energy-tecoa-1986.