Department of Energy Has Made Slow Progress Resolving Alleged Crude Oil Reseller Pricing Violations
EMD-82-46
Published: Jun 01, 1982. Publicly Released: Jun 04, 1982.
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Highlights
GAO reviewed the Department of Energy (DOE) crude oil reseller program. Specifically, GAO examined the: (1) extent of civil and criminal violations; (2) slowness in issuing proposed remedial orders; (3) subpoena problems; (4) adequacy of staffing; (5) settlement efforts; and (5) effect on the program of the reorganization of the Economic Regulatory Administration (ERA), which took place in late 1981.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Energy | The Secretary of Energy should direct the Administrator of the Economic Regulatory Administration to reestablish the position of Director, Crude Oil Reseller Program, and fill it with a highly experienced official. |
DOE has reorganized the ERA since this recommendation was made and does not intend to make the recommended organizational change. Because the ERA is in the process of phasing out its enforcement program, GAO does not plan to pursue this recommendation.
|
| Department of Energy | The Secretary of Energy should direct the Administrator of the Economic Regulatory Administration to provide for audit coverage of selected major refiners' crude oil sales and purchase activities, based on the implications of the former Office of Enforcement study of crude oil pipeline transactions, to assess the legality of the refiners' sales and purchase transactions with crude oil resellers, where not precluded by existing global settlements. |
This recommendation is being repeated in a forthcoming report. Any necessary followup action will be conducted in conjunction with that report.
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