The Rio Grande, El Paso and Santa Fe Railroad Company and Burlington Northern and Santa Fe Railway Company v. Department of Energy

234 F.3d 1, 2000 U.S. App. LEXIS 30463, 2000 WL 1769700
CourtCourt of Appeals for the Federal Circuit
DecidedDecember 4, 2000
Docket99-1528
StatusPublished
Cited by20 cases

This text of 234 F.3d 1 (The Rio Grande, El Paso and Santa Fe Railroad Company and Burlington Northern and Santa Fe Railway Company v. Department of Energy) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The Rio Grande, El Paso and Santa Fe Railroad Company and Burlington Northern and Santa Fe Railway Company v. Department of Energy, 234 F.3d 1, 2000 U.S. App. LEXIS 30463, 2000 WL 1769700 (Fed. Cir. 2000).

Opinion

SCHALL, Circuit Judge.

The Rio Grande, El Paso and Santa Fe Railroad Company and the Burlington and Santa Fe Railway Company (collectively, “Santa Fe”) 1 appeal the decision of the United States District Court for the District of Columbia upholding the denial by the Office of Hearings and Appeals (“OHA”) of the Department of Energy (“DOE”) of Santa Fe’s July 30, 1990 application for an above-volumetric refund from the Shell Oil Co. (“Shell”) restitution fund pursuant to the Petroleum Overcharge Distribution and Restitution Act of 1986 (“PODRA”). The Rio Grande, El Paso & Santa Fe R.R. Co. v. Dep’t of Energy, No. 97-2574(HHK) (D.D.C. May 13, 1999) (“Santa Fe V”). The district court sustained OHA’s February 3, 1993 final decision on the ground that Santa Fe is no longer “injured” within the meaning of PO-DRA because of Santa Fe’s 1980 settlement of its overcharge action against Shell. Id. at 6-9. We agree that, in light of the 1980 settlement, Santa Fe cannot pursue its above-volumetric refund claim. We therefore affirm.

BACKGROUND

I.

Under the Economic Stabilization Act of 1970 (“ESA”), 12 U.S.C. § 1904 note (1976), and the Emergency Petroleum Allocation Act of 1973 (“EPAA”), 15 U.S.C. § 751 et seq. (1982), DOE was given the responsibility of promulgating and enforcing the Mandatory Petroleum Price and Allocation Regulations (“MPPAR”). See Siegel Oil Co. v. Richardson, 208 F.3d 1366, 1367-68 (Fed.Cir.2000) (providing an overview of the statutory and regulatory framework). The regulations established ceiling prices for crude oil and other petroleum products, 10 C.F.R. pt. 212 (1981), as well as a mandatory system for allocation of these products between historical suppliers and purchasers, 10 C.F.R. pt. 211 (1981). The MPPAR required, in part, that refiners be subject to a mandatory petroleum pricing rule, which, in general, meant that refiners could not charge a price for a “covered product” in excess of the “base price” for that product, as established during a certain initial period. 10 C.F.R. § 212.83(a)(1) (1981). These regu *3 lations were in effect from August 19, 1973 through January 27, 1981. 10 C.F.R. pts. 211-212 (1982). The ESA provided both public and private enforcement mechanisms in order to implement the price control program. Under § 209 of the ESA, the President could use either federal district courts or administrative agencies, with subsequent judicial review, to implement the program. Under § 210 of the ESA, private litigants were authorized to sue in federal district courts for violations of the ESA, EPAA, or the MPPAR. 2

In 1979, DOE promulgated the “Subpart V” regulations that established procedures for the distribution of funds collected from companies by DOE pursuant to the ESA or EPAA. 10 C.F.R. pt. 205, subpt. V (1999). In 1986, Congress enacted PO-DRA, 15 U.S.C. §§ 4501-4507 (1998), to facilitate the distribution of these funds “in accordance with subpart V regulations.” 15 U.S.C. § 4502(b)(l)(A)-(C). Under these procedures, OHA was tasked with identifying and providing restitution to those claimants who were injured by any actual or alleged violations of the ESA, EPAA, and the MPPAR. 15 U.S.C. § 4501(a)(1); 10 C.F.R. § 205.280.

II.

On January 10, 1978, Santa Fe filed a private overcharge action under § 210 of the ESA against Shell in the United States District Court for the Northern District of Illinois. Santa Fe alleged that Shell had overcharged it in sales of diesel fuel from Shell’s Wilmington, California and Ciniza, New Mexico refineries. On March 24, 1980, the district court granted Shell’s motion for partial summary judgment, finding that Santa Fe’s claims were time-barred under the applicable statute of limitations. Thereafter, on June 6, 1980, Santa Fe settled its suit with Shell. Subsequently, as a result of the settlement, the district court dismissed Santa Fe’s action with prejudice under Fed.R.Civ.P. 41(a). Atchison, Topeka & Santa Fe R.R. Co. v. Shell Oil Co., No. 78-C-85 (N.D. Ill. June 20, 1980) (Stipulation and Order) (“Santa Fe I ”).

The settlement of June 6, 1980 (the “1980 settlement”), labeled “RELEASE,” stated that:

Santa Fe and Shell desire to settle [case No. 78-C-85 in the United States District Court for the Northern District of Illinois] and end the lawsuit.
In consideration of the sum of Ten Dollars ($10.00) ... and for other good and valuable consideration ... Santa Fe hereby fully releases and forever discharges Shell, including each of its subsidiaries, and affiliates, and each of its and their directors, officers, agents, employees, and representatives, past and present, from all claims, demands, suits and causes of action in law, equity, or otherwise, accrued or unaccrued, or howsoever arising, known or unknown, arising from the sale and supply by Shell of petroleum products to Santa Fe occurring prior to the date of the filing of the above-captioned lawsuit.
Santa Fe further acknowledges that the payment of any sum or other consideration by Shell is made without any admission of liability, that Shell denies any liability for any claims, demands, or causes of action by Santa Fe against Shell hereinbefore described.

Pursuant to the 1980 settlement, Shell paid Santa Fe $550,000.

III.

Almost seven years later, on March 26, 1987, DOE and Shell entered into a Consent Order settling claims by DOE regarding Shell’s crude oil and refined petroleum *4 product operations during the Consent Order period of January 1, 1973, through January 27, 1981. Shell Oil Co., 18 DOE (CCH) ¶ 85,492, 88,796 (1989). Shell did not acknowledge any specific violation of the MPPAR, but agreed to pay approximately $20 million plus accrued interest to DOE for distribution to parties injured by Shell’s alleged violations, thus creating the “Shell restitution fund.” Id. at 88,796-88,797. OHA, on January 13, 1989, instituted a special refund proceeding in accordance with Subpart V to facilitate distribution of the Shell restitution fund to former Shell purchasers. Id. at 88,797-88,802.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

(PC) Vazquez-Gonzalez v. Arviza
E.D. California, 2023
Wynn v. Vilsack
M.D. Florida, 2023
Parnell v. White
N.D. Oklahoma, 2023
Delaware Life Ins. Co. v. Flint
E.D. California, 2021
Lloyd v. Kingston
W.D. Washington, 2020
Nsk Corporation v. Usitc
Federal Circuit, 2013
NSK Corp. v. United States International Trade Commission
542 F. App'x 950 (Federal Circuit, 2013)
In re: Peter David Kempf
Ninth Circuit, 2012
Champagne v. Rivas, et al.
2007 DNH 122 (D. New Hampshire, 2007)
Surprenant v. Rivas, et al.
D. New Hampshire, 2004
Pierce v. Metropolitan Life I n s . C o .
2004 DNH 039 (D. New Hampshire, 2004)
White v. Warden, NHSP
2003 DNH 218P (D. New Hampshire, 2003)
Delvin White v. Warden
2003 DNH 117 (D. New Hampshire, 2003)
Sinclair Oil Corporation v. Abraham
291 F.3d 822 (Federal Circuit, 2002)
Sinclair Oil Corp. v. Abraham
291 F.3d 822 (Federal Circuit, 2002)
Austin v. Brookline
2001 DNH 171 (D. New Hampshire, 2001)
Kurzon v. HHS
2001 DNH 128 (D. New Hampshire, 2001)

Cite This Page — Counsel Stack

Bluebook (online)
234 F.3d 1, 2000 U.S. App. LEXIS 30463, 2000 WL 1769700, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-rio-grande-el-paso-and-santa-fe-railroad-company-and-burlington-cafc-2000.