99-27711. Panhandle Eastern Pipe Line Company; Notice of Offer of Settlement  

  • [Federal Register Volume 64, Number 205 (Monday, October 25, 1999)]
    [Notices]
    [Page 57448]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 99-27711]
    
    
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    DEPARTMENT OF ENERGY
    
    Federal Energy Regulatory Commission
    [Docket No. RP98-40-024]
    
    
    Panhandle Eastern Pipe Line Company; Notice of Offer of 
    Settlement
    
    October 19, 1999.
        Take notice that on October 13, 1999, the Missouri Public Service 
    Commission (MoPSC), Panhandle Eastern Pipe Line Company (Panhandle) and 
    Missouri Gas Energy, a division of Southern Union Company (collectively 
    called Sponsoring Parties) filed an Offer of Settlement under Rule 602 
    of the Commission's Rules of Practice and Procedure in the captioned 
    docket. Sponsoring Parties filed the Offer of Settlement to facilitate 
    and expedite the Commission's implementation of the decision of the 
    United States Court of Appeals for the District of Columbia Circuit in 
    Public Service Company of Colorado.\1\ The Sponsoring Parties state the 
    Offer of Settlement is intend to provide relief to small producers from 
    their ad valorem tax refund liability and to reduce the administrative 
    burdens on the Commission, its staff, first sellers and numerous 
    interest owners and intervenors associated with the various proceedings 
    pending at the Commission relating to such tax liability. A copy of the 
    Offer of Settlement is on file with the Commission and is available for 
    public inspection in the Public Reference Room. The Offer of Settlement 
    may be viewed on the web at http://www/ferc.fed.us/online/rims.htm 
    (call 202-208-2222 for assistance).
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        \1\ Public Service Co. of Colorado, et al., 80 FERC para. 61,264 
    (1997), reh'g denied, 82 FERC para. 61,058 (1998). Appeal pending. 
    Anadarko Petroleum Corporation v. FERC, Case No. 98-1227 et al.
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        To achieve these objectives, the Offer of Settlement provides a 
    $50,000 credit towards the ad valorem tax refund liability of the first 
    sellers listed in the Statement of Refunds Due filed by Panhandle on 
    November 10, 1997, as adjusted in Exhibit A to the Offer of Settlement 
    to reflect subsequent corrections. Any first seller with a refund 
    obligation of $50,000 or less for principal and interest will have its 
    ad valorem tax refund waived in its entirety. First sellers with refund 
    liabilities of $50,000 or less are not required to give up any rights 
    or provide any other consideration as a condition to receiving the 
    benefits. Sponsoring Parties state the Offer of Settlement would 
    eliminate the entire refund obligation of 56 of the 105 first sellers 
    on the Panhandle system.
        Any first seller with a refund liability in excess of $50,000 as 
    listed in the Statement of Refunds Due filed by Panhandle on November 
    10, 1997, as adjusted in Exhibit A to reflect subsequent corrections, 
    is eligible to have its refund obligation reduced by $50,000. In order 
    to be eligible for the $50,000 credits, such first sellers must pay the 
    remaining refund liability (after deducting the $50,000), plus 
    additional accrued interest through date of payment, and agree to 
    withdraw all interventions, protests and court appeals related to the 
    ad valorem tax refund. First sellers who accept the terms for partial 
    waivers under the Offer of Settlement will be responsible for 
    negotiating with their underlying interest owners the amount of the 
    waiver relief applicable to their interest owners.
        The Offer of Settlement also provides that any first seller listed 
    in Panhandle's Statement of Refunds Due with a refund liability of 
    $50,000 or less for principal and interest who has refunded to 
    Panhandle amounts which would be waived under Article II will receive a 
    refund from Panhandle of such amounts, plus additional accrued interest 
    through date of payment by Panhandle. In addition, Article III provides 
    that if Panhandle has previously received refunds directly from an 
    interest owner whose obligation was incurred under a first seller whose 
    entire refund obligation is waived pursuant to the agreement, Panhandle 
    will refund such payments to the interest owner within 60 days of the 
    effective date of the settlement. If jurisdictional refunds exceed the 
    amount of undisbursed Kansas ad valorem tax refunds held by Panhandle, 
    Panhandle will maintain a credit balance for the jurisdictional 
    refunds. Any subsequent Kansas ad valorem tax refunds received by 
    Panhandle will be used to reduce any credit balance before any 
    disbursement is made to customers. One hundred twenty days (120) after 
    the effective date of the Offer of Settlement, Panhandle shall be 
    permitted to direct bill any remaining credit amounts.
        In accordance with Sec. 385.602(f), initial comments on the Offer 
    of Settlement are due on November 2, 1999 and any reply comments are 
    due November 12, 1999.
    David P. Boergers,
    Secretary.
    [FR Doc. 99-27711 Filed 10-22-99; 8:45 am]
    BILLING CODE 6717-01-M
    
    
    

Document Information

Published:
10/25/1999
Department:
Federal Energy Regulatory Commission
Entry Type:
Notice
Document Number:
99-27711
Pages:
57448-57448 (1 pages)
Docket Numbers:
Docket No. RP98-40-024
PDF File:
99-27711.pdf