INDEPENDENT OIL, ETC. v. Department of Energy, DC-83.
| Decision Date | 26 May 1981 |
| Docket Number | No. DC-83.,DC-83. |
| Parties | INDEPENDENT OIL COMPOUNDERS ASSOCIATION, Plaintiff-Appellant, v. DEPARTMENT OF ENERGY, Charles W. Duncan, Jr., Secretary, Department of Energy, Economic Regulatory Administration, Department of Energy, and Hazel R. Rollins, Administrator, Economic Regulatory Administration, Department of Energy, Defendants-Appellees. |
| Court | U.S. Temporary Emergency Court of Appeals Court of Appeals |
Carol T. Crawford, Collier, Shannon, Rill & Scott, Washington, D. C., with whom James F. Rill and William W. Scott, Washington, D. C., were on brief, for plaintiff-appellant.
Floyd I. Robinson, Office of Gen. Counsel, Dept. of Energy, Washington, D. C., with whom Larry P. Ellsworth, Deputy Asst. Gen. Counsel and Charles F. C. Ruff, U. S. Atty. and Dennis Dutterer, Asst. U. S. Atty., Washington, D. C., were on brief, for defendants-appellees.
Before LARSON, BONSAL and PECK, Judges.
The Independent Oil Compounders Association ("IOCA") appeals from an order of the United States District Court for the District of Columbia denying its motion for summary judgment and granting the motion of the Department of Energy ("DOE") for judgment on the pleadings pursuant to Fed.R.Civ.P. 12(c). The district court upheld a ruling of DOE that during the period from August 19, 1973 until April 2, 1974 ("the relevant period"), the petroleum-based lubricating oils and greases sold by members of IOCA were "covered products" under the Mandatory Petroleum Price Regulations ("the price regulations"). We affirm.
IOCA is a trade association representing independent firms which purchase, blend, compound, refine and resell finished petroleum lubricants. Lubricants sold by these firms include a variety of oils and greases which are produced through blending and compounding of purchased mineral, animal or vegetable materials, including petroleum base lubricating oils. These lubricant products include brake and transmission fluids and rust-arresting compounds. Members of IOCA purchase from refiners the base oil stocks which they utilize in the blending process.
On July 7, 1976, IOCA filed with the General Counsel of DOE a Request for Interpretation as to whether IOCA members were refiners as provided in Subpart E of the price regulations or reseller-retailers as provided in Subpart F. Thereafter, the General Counsel issued two Interpretations. In Interpretation 1977-50, issued on December 21, 1977, the General Counsel ruled that IOCA members were subject to the price regulations prior to April 3, 1974, and were not exempt, as IOCA had contended.* Following an appeal by IOCA, on February 13, 1979 the Office of Hearings and Appeals of DOE affirmed the General Counsel.
IOCA, contending that DOE was without authority to regulate the prices of the petroleum-based lubricating oils and greases sold by its members during the relevant period, instituted this action in the district court.
IOCA contends that the oils and greases produced by its members during the relevant period were not "covered products" under the price regulations. On August 19, 1973, the Cost of Living Council ("CLC"), to which the President had delegated his authority to issue price regulations, promulgated the "Phase IV" petroleum price regulations. 6 C.F.R. §§ 150.351 et seq., 38 Fed.Reg. 22536 (Aug. 22, 1973). The Phase IV regulations defined a "covered product" as follows:
"Covered product" means a product described in the 1972 edition, Standard Industrial Classification Manual, Industry Code 1311 (except natural gas), 1321, or 2911." Ibid.
On November 27, 1973, the Emergency Petroleum Allocation Act ("EPAA") became effective, and the President established the Federal Energy Office ("FEO") to administer the price regulations applicable to the petroleum industry. The CLC definition of "covered products" was adopted without change. (10 C.F.R. § 212.31)
The relevant period during which, DOE contends, IOCA members manufactured "covered products" ended on April 2, 1974, because on April 3, 1974, the FEO amended the definition of "covered products" to exclude any reference to the Standard Industrial Classification Manual ("SICM"). The new definition provided:
"Covered products" means crude oil, residual fuel oil and refined petroleum products. 39 Fed.Reg. 12353
IOCA did not contest the applicability of the price regulations to sales by its members on or after April 3, 1974.
The Standard Industrial Classification Manual ("SICM"), 1972 edition, which was used in defining "covered products" during the relevant period, was prepared and published by the Executive Office of the President, Office of Management and Budget. The SICM defines industries "in accordance with the composition and structure of the economy." It was developed for use in the classification of establishments by the type of activity in which they were engaged. The SICM assigns to each industry an industry code based on its primary activity. Industries are, in turn, grouped, with groups having similar characteristics listed under "major group" headings. Thus, Industry Code No. 2911, "Petroleum Refining," is listed under Major Group 29, "Petroleum Refining and Related Industries."
During the relevant period, Section 212.31 defined a "covered product" as any "product described in" Industry Codes 1311, 1321 and 2911. Industry Code 2911 provides:
IOCA contends that only lubricating oils and greases produced in petroleum refineries are "covered products" under the price regulations in effect during the relevant period. IOCA argues that since its members are not refiners, Industry Code 2911 does not describe their products. On the contrary, it argues, only Industry Code 2992 describes the products manufactured by its members. Industry Code 2992 provides:
To continue reading
Request your trial
-
Pennzoil Co. v. United States Dept. of Energy
...F.2d 799 (Em.App.1981); Mountain Fuel Supply Co. v. U.S. Dept. of Energy, 656 F.2d 690 (Em.App.1981), supra; Independent Oil v. Department of Energy, 650 F.2d 1230 (Em.App.1981); UPG, Inc. v. Edwards, 647 F.2d 147 (Em.App.1981), supra; Energy Consumers, Etc. v. Dept. of Energy, 632 F.2d 129......
-
Petrolite Corp., Bareco Division v. Federal Energy Regulatory Commission, s. 81-1214
...Comm'n, 654 F.2d at 825; Murphy Oil Corp. v. Hickel, 439 F.2d 417, 422 (8th Cir. 1971); cf. Independent Oil Compounders Ass'n v. Department of Energy, 650 F.2d 1230, 1234 (Em.App.1981) (agency interpretation of regulation entitled to deference if III. Food-Grade Waxes The Commission's rule ......