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OCCIDENTAL WILL ASK FERC TO REJECT ALJ'S RECOMMENDATION

 OCCIDENTAL WILL ASK FERC TO REJECT ALJ'S RECOMMENDATION
 LOS ANGELES, March 24 /PRNewswire/ -- Occidental Petroleum Corp.


(NYSE: OXY) will ask the Federal Energy Regulatory Commission (FERC) to reject an administrative law judge's (ALJ) recommendation that the commission uphold most of a 1988 remedial order issued by the Department of Energy (DOE) against an Occidental subsidiary.
 "We are convinced that we will be vindicated through the next steps in these proceedings," said Occidental's senior general counsel, Gerald M. Stern.
 If the commission overturns the recommendation by ALJ Jacob Leventhal, DOE has no right to appeal. If the Commission accepts the ALJ's recommendation, the company has the right to have the decision reviewed by a federal district court.
 The remedial order as modified by the ALJ charges that Cities Service Co. violated DOE price regulations in certain crude oil transactions in 1979 and 1980, before the company was acquired by Occidental in 1982. It would require Cities to refund approximately $245 million in principal amount of damages, plus accrued interest since 1979 which could amount to approximately $690 million to date.
 Cities' position is that the regulations it is charged with violating did not apply to its transactions and therefore no amount is owed. In the only similar case involving these regulations to reach the federal courts, a federal magistrate in Oklahoma issued a ruling that the regulations did not apply to these transactions. Cities also maintains that the DOE is barred from bringing the action because, in an earlier case involving Cities, the DOE disavowed the same legal theory it is now pursuing.
 The regulations that Cities is charged with violating were terminated by President Reagan a week after he took office in January 1981.
 -0- 3/24/92
 /CONTACT: Howard Collins (media), 213-443-6523, or Kenneth J. Huffman (investors), 212-603-8183, both of Occidental Petroleum/
 (OXY) CO: Occidental Petroleum; Federal Energy Regulatory Commission ST: California IN: OIL SU:


AL -- LA012 -- 1085 03/24/92 12:46 EST
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Publication:PR Newswire
Date:Mar 24, 1992
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