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Energy Management: States' Use of Oil Overcharge Funds for Legal Expenses

RCED-89-60 Published: Mar 21, 1989. Publicly Released: Apr 27, 1989.
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Highlights

Pursuant to a congressional request, GAO provided information on states' payments of legal fees they incurred in connection with the Exxon, Stripper Well, and Diamond Rock oil overcharge cases.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Energy To resolve past inconsistencies, the Secretary of Energy should direct the Under Secretary to provide clear policy guidance to the states on the use of Stripper Well and Diamond Shamrock funds for Exxon legal expenses.
Closed – Not Implemented
DOE believes that: (1) its policy on the use of Stripper Well funds is clear and no further policy statements are necessary; and (2) the Diamond Shamrock agreement contains a unique provision allowing the expenditure of funds for attorney's fees. The majority of the funds have already been obligated, making further policy development inappropriate.

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Topics

Damages (legal)state relationsFunds managementJudicial remediesLegal feesMonitoringOverpaymentsPetroleum pricesPrice regulationState budgets