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Foreign Commerce. Subcommittee on Energy and Power. ENFORCEMENT OF MAJOR REFINER CASES: GETTY OIL AND OTHER SETTLEMENTS

HEARING

BEFORE THE

SUBCOMMITTEE ON ENERGY AND POWER

OF THE

COMMITTEE ON

INTERSTATE AND FOREIGN COMMERCE
HOUSE OF REPRESENTATIVES

NINETY-SIXTH CONGRESS

SECOND SESSION

ON

SETTLEMENTS BY THE DEPARTMENT OF ENERGY ON OVER-
CHARGES WITHIN THE PETROLEUM INDUSTRY

72-283 O

OCTOBER 14, 1980

Serial No. 96-225

Printed for the use of the

Committee on Interstate and Foreign Commerce

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON: 1981

KF27 I5542 1980%

COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE

HARLEY O. STAGGERS, West Virginia, Chairman

JOHN D. DINGELL, Michigan
LIONEL VAN DEERLIN, California
JOHN M. MURPHY, New York
DAVID E. SATTERFIELD III, Virginia
BOB ECKHARDT, Texas

RICHARDSON PREYER, North Carolina
JAMES H. SCHEUER, New York
RICHARD L. OTTINGER, New York
HENRY A. WAXMAN, California
TIMOTHY E. WIRTH, Colorado
PHILIP R. SHARP, Indiana

JAMES J. FLORIO, New Jersey

ANTHONY TOBY MOFFETT, Connecticut

JIM SANTINI, Nevada

ANDREW MAGUIRE, New Jersey

EDWARD J. MARKEY, Massachusetts

THOMAS A. LUKEN, Ohio

DOUG WALGREN, Pennsylvania

ALBERT GORE, JR., Tennessee

BARBARA A. MIKULSKI, Maryland

RONALD M. MOTTL, Ohio

PHIL GRAMM, Texas

AL SWIFT, Washington

MICKEY LELAND, Texas

JAMES T. BROYHILL, North Carolina
SAMUEL L. DEVINE, Ohio
TIM LEE CARTER, Kentucky
CLARENCE J. BROWN, Ohio
JAMES M. COLLINS, Texas
NORMAN F. LENT, New York
EDWARD R. MADIGAN, Illinois
CARLOS J. MOORHEAD, California
MATTHEW J. RINALDO, New Jersey
DAVE STOCKMAN, Michigan
MARC L. MARKS, Pennsylvania

TOM CORCORAN, Illinois
GARY A. LEE, New York
TOM LOEFFLER, Texas

WILLIAM E. DANNEMEYER, California

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CONTENTS

Statement of:

Bloom, Paul, Special Counsel for Compliance, Department of Energy..

Breznay, George B., Acting Director, Office of Hearings and Appeals,

Department of Energy...

Chelberg, Col. Robert D., Staff Director, Office of the Deputy Assistant

Secretary of Defense for Military Personnel Policy, Department of De-

fense.

Coleman, Lynn R., Acting Deputy Secretary, Department of Energy

Feldesman, James L., general counsel, Consumer Energy Council of

America.

Page

5, 43

5

5, 72

5, 18

104, 118

5

5

5

5, 73

104

Fygi, Eric, Acting General Counsel, Department of Energy.

Harvey, Gordon, Acting Assistant Administrator, Office of Enforcement,

Department of Energy.

Hewitt, John A., Jr., Chief Financial Officer, Department of Energy.

Kilcoyne, John, Assistant Fiscal Assistant Secretary, Department of the

Treasury...

Kirby, Peter M., counsel, The Transportation Group

Landry, James E., senior vice president and general counsel, Air Trans-

port Association of America, and also on behalf of American Associ-

ation of Railroads, American Trucking Associations, Inc., and Ameri-

can Bus Association (The Transportation Group).

Moelk, Clare A., Staff Director, Office of the Deputy Assistant Secretary

of Defense for Military Personnel Policy, Department of Defense...

Schmalzbach, Kenneth, Legal Counsel, Bureau of Government Financial

Operations, Department of the Treasury..

Shenefield, John H., Associate Attorney General, Department of Justice...

Socolar, Milton J., General Counsel, General Accounting Office..

Wrenn, Patrick, Manager, Appropriation and Investment Branch, Bureau

of Government Financial Operations, Department of the Treasury.....

Additional material submitted for the record by:

Energy Department: Memorandum to Paul L. Bloom from Carl A. Cor-

rallo, Solicitor to the Special Counsel for Compliance, re Department of

Justice criticism of Phillips and Sun consent orders

Letter submitted for the record by American Public Transit Association, Jack

L. Gilstrap, executive vice president.

Statement submitted for the record by Texas Oil Marketers Association.....

Appendix A-Getty consent order and Department of Energy materials relat-

ed to the development of the Department of Energy's distribution plan of

July 11, 1980.....

Appendix B-Subcommittee correspondence with the Department of Energy

and related materials concerning Getty and other oil company settlements..

Appendix C-Correspondence and related materials between the subcommit-

tee and the Department of Energy's Office of Hearings and Appeals con-

cerning the Department of Energy's subpart V regulations......

Appendix D-Correspondence between the Department of Justice and the

subcommittee concerning the Getty and other oil company settlements....

Appendix E-Correspondence with the General Accounting Office concerning

the Getty and other oil company settlements and related enforcement

matters

Appendix F-Subcommittee correspondence with the Department of Defense

concerning the Getty distribution plan

Appendix G-Subcommittee correspondence with the Department of the

Treasury concerning escrow accounts.

Appendix H-Correspondence concerning the Department of Energy/Depart-

ment of Justice memorandum of understanding of 1978.

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