United States v. Wyatt

518 F. Supp. 1110, 1981 U.S. Dist. LEXIS 9720
CourtDistrict Court, S.D. Texas
DecidedJuly 21, 1981
DocketCrim. H-80-3
StatusPublished
Cited by2 cases

This text of 518 F. Supp. 1110 (United States v. Wyatt) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Wyatt, 518 F. Supp. 1110, 1981 U.S. Dist. LEXIS 9720 (S.D. Tex. 1981).

Opinion

MEMORANDUM AND ORDER

CIRE, District Judge.

On January 11, 1980, Oscar S. Wyatt, Jr., pleaded guilty to acts charged in a criminal information to be in violation of 10 C.F.R. § 210.62(c). Pursuant to his plea of guilty, this Court found Mr. Wyatt guilty of violating the Emergency Petroleum Allocation Act, 15 U.S.C. § 754(a)(3)(B)(i), as charged in the criminal information, and ordered him to pay a fine of $40,000.00. By “Motion to Correct Judgment and for Further Relief,” Defendant Wyatt asks this Court “for a writ of error coram nobis, to correct the sentence and judgment imposed herein on January 11,1980, to find (him) not guilty of the ‘violation’ charged in the Information and to enter a judgment of acquittal.” Defendant seeks this relief pursuant to Rules 35(a) and 52(b) of the Federal Rules of Criminal Procedure and the All Writs Act, 28 U.S.C. § 1651(a). Alternatively, Defendant asks the Court to set aside its judgment of conviction and grant a new trial pursu *1112 ant to Rules 32(d) and 33 of the Federal Rules of Criminal Procedure. Wyatt maintains that he is entitled to the relief sought in his motion because “accepting as true all the facts charged in the Information, no crime has been alleged or proven and as a matter of law, no crime has been committed.”

Wyatt’s version of the facts and circumstances leading up to the entry of his guilty plea are detailed in his motion and the Court will quote therefrom. Essentially, Mr. Wyatt advises the Court that he “volunteered to become a party” to ongoing plea bargaining negotiations between the United States and The Coastal Corporation, of which Wyatt is Chairman of the Board of Directors. Pursuant to this sacrificial act, Wyatt assured the Government that he could “in good faith and truthfully” admit his involvement in the facts charged in the Criminal Information. However, “Wyatt’s feeling then and the reason for his present motion is that those facts, admittedly true, do not constitute an offense against the United States of America.” Wyatt assures the Court that he has “in all respects honored the terms of the Statement of Plea Bargain,” that he “persists in his plea of ‘guilty’ to ‘committing’ the acts charged in and by the Criminal Information,” and that he does not, by this motion, “seek to set aside, modify, alter, vary, breach or otherwise violate his bargain.”

The criminal information charges Oscar S. Wyatt, Jr., “individually and in his capacity as Chairman of the Board and Chief Executive Officer of The Coastal Corporation” with “willfully and knowingly” violating “Title 10, Code of Federal Regulations, Section 210.62(e) with respect to the distribution of domestic crude oil by engaging in a practice which constituted a means to obtain a price for crude oil higher than permitted by regulation . . .,” in violation of 15 U.S.C. § 754(a)(3)(B)(i).

Wyatt advances two arguments in support of his contention that he was convicted under a criminal information that fails to charge an offense. First, he alleges that Section 210.62(c) applies only to sales of an “allocated product” and does not apply to crude oil transactions. The applicable portion of that section states:

“Any practice which constitutes a means to obtain a price higher than is permitted by the regulations in this chapter or to impose terms or conditions not customarily imposed upon the sale of an allocated product is a violation of these regulations.”

Wyatt was charged with “engaging in a practice which constitutes a means to obtain a price for crude oil higher than permitted by regulation” in violation of 15 U.S.C. § 754(a)(3)(B)(i). Thus, the criminal information refers to a practice forbidden by the first portion of the quoted sentence, preceding the word “or,” which practice is not grammatically modified or limited by the words “allocated product” in the second half of the sentence. Section 210.62(c) plainly and unambiguously proscribes two practices: one which “constitutes a means to obtain a price higher than is permitted by the regulations” and one which “constitutes a means to impose terms or conditions not customarily imposed upon the sale of an allocated product.” Wyatt was clearly charged with having engaged in the first practice. The regulations referred to therein, having been promulgated pursuant to the Emergency Petroleum Allocation Act, apply to crude oil. 15 U.S.C. § 753(a). Even accepting as true Wyatt’s argument that only “allocated products” are covered by Section 210.62(c), this Court would have no difficulty holding crude oil to be an “allocated” product under the Emergency Petroleum Allocation Act. Id. (emphasis added). Wyatt’s argument that his conviction was invalid because Section 210.62(c) applies to allocated products or alternatively because the section is unconstitutionally vague and ambiguous is overruled. Likewise, the Court holds Wyatt’s contention that Section 210.62(c) was illegally promulgated to be without merit. The Court finds this regulation to be exempt from notice and comment procedures pursuant to the exemption contained in 5 U.S.C. § 553(b)(A) and (B).

*1113 Wyatt’s second argument focuses on the criminal penalty provision of the Emergency Petroleum Allocation Act under which he was convicted. Title 15, United States Code, Section 754(a)(3)(B)(i) provides:

“(B) Whoever willfully violates any provision of such regulation, or any such order shall be imprisoned not more than 1 year, or—
(i) with respect to activities relating to the production or refining of crude oil, shall be fined not more than $40,000 for each violation;
(...)
or both.”

Wyatt maintains that under the terms of this statute, no penalty can be assessed for activities relating to the distribution of crude oil. The Court agrees that the terms of subsection (i) refer only to the production or refining of crude oil and not to its distribution. The Court does not agree, however, that Section 754(a)(3)(B) fails to supply the requisite statutory authority for imposition of a penalty for engaging in activities relating to the distribution of crude oil. The words “such regulation” in Section 754(a)(3)(B) refer to those regulations enacted pursuant to 15 U.S.C. § 753(a). One of such regulations is 10 C.F.R.

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Cite This Page — Counsel Stack

Bluebook (online)
518 F. Supp. 1110, 1981 U.S. Dist. LEXIS 9720, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-wyatt-txsd-1981.