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[Distribution of Petroleum Overcharge Settlement Funds]

B-209699: May 19, 1983

In response to a congressional request, GAO examined the validity of the Department of Energy's use of various provisions in consent orders to settle alleged violations of federal petroleum price and allocation regulations through payments by the producer. Energy has been permitting producers to distribute overcharge settlement funds to parties who have no clear connection to the overcharges which...

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B-209699, MAY 19, 1983, 62 COMP.GEN. 379

B-209699: May 19, 1983

WHERE THIS IS NOT POSSIBLE. DISTRIBUTION OF CONSENT ORDER FUNDS BY OIL COMPANIES IS NOT PERMISSIBLE WITHOUT RESTITUTIONARY NEXUS BECAUSE ENERGY LACKS AUTHORITY TO DO INDIRECTLY WHAT IT CANNOT DO DIRECTLY. IN-KIND DEPOSIT OF OIL IN STRATEGIC PETROLEUM RESERVE BY OIL COMPANIES IS NOT PERMISSIBLE BECAUSE IT LACKS RESTITUTIONARY NEXUS AND IS NOT OTHERWISE AUTHORIZED. OF ENERGY IS PERMISSIBLE ONLY IF S...

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