98-7535. Albert A. Thornbrough; Notice of Petition for Adjustment  

  • [Federal Register Volume 63, Number 56 (Tuesday, March 24, 1998)]
    [Notices]
    [Pages 14084-14085]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 98-7535]
    
    
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    DEPARTMENT OF ENERGY
    
    Federal Energy Regulatory Commission
    [Docket No. SA98-14-000]
    
    
    Albert A. Thornbrough; Notice of Petition for Adjustment
    
    March 18, 1998.
        Take notice that on March 6, 1998, Albert A. Thornbrough 
    (Thornbrough) filed a petition for adjustment under section 502(c) of 
    the Natural Gas Policy Act of 1978 (NGPA),\1\ seeking Commission 
    intervention to resolve a dispute between himself and Colorado 
    Interstate Gas Company (CIG) concerning ad valorem taxes for years 1982 
    through 1986. Thornbrough requests that he be relieved of his 
    obligation to pay Kansas ad valorem tax refunds, as required by the 
    Commission's September 10, 1997 order, in Docket Nos. GP97-3-000, GP97-
    4-000, GP97-5-000, and RP97-369-000.\2\ Thornbrough's petition is on 
    file with the Commission and open to public inspection.
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        \1\ 15 U.S.C. 3142(c) (1982).
        \2\ See 80 FERC para. 61,264 (1997); order denying reh'g issued 
    January 28, 1998, 82 FERC para. 61,058 (1998).
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        The Commission's September 10 order on remand from the D.C. Circuit 
    Court of Appeals \3\ directed first sellers under the NGPA to make 
    Kansas ad valorem tax refunds, with interest, for the period from 1983 
    to 1988. The Commission's September 10 order also provided that first 
    sellers could, with the Commission's prior approval, amortize their 
    Kansas ad valorem tax refunds over a 5-year period, although interest 
    would continue to accrue on any outstanding balance.
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        \3\ Public Service Company of Colorado v. FERC, 91 F.3d 1478 
    (D.C. 1996), cert. denied, Nos. 96-954 and 96-1230 (65 U.S.L.W. 3751 
    and 3754, May 12, 1997) (Public Service).
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        As of March 9, 1998, CIG claims that Thornbrough owes CIG 
    $108,883.73 in principal and $156,621.88 in interest. Thornbrough 
    disputes CIG's claim entirely. If the Commission determines that 
    Thornbrough is required to pay some or all of the disputed amount to 
    CIG, Thornbrough seeks a staff adjustment pursuant to Section 502(c) of 
    the NGPA, abating all of the disputed amount. If the Commission 
    subsequently determines that Thornbrough is required to pay some or all 
    of the disputed amount to CIG, Thornbrough seeks permission to amortize 
    the required sum over a five-year period commencing on march 9, 1999 
    such that the first installment would be equal to one-fifth of the 
    total principal and interest owing as of that date; the second 
    installment equal to \1/4\ of the remaining total; the third 
    installment equal to \1/3\ of the remaining balance; the fourth 
    installment equal to \1/2\ of the remaining amount; and the fifth 
    installment would be equal to the balance of all principal and interest 
    owing as of March 9, 2003.
        Thornbrough, as operator, claims that the production and his 
    working and revenue interests therein, as well as the royalty interest 
    owners, of the following wells are the subject of this dispute:
    
    ------------------------------------------------------------------------
                                                    Gross work   Net revenue
              Well name               Location       interest      interest 
                                                     (percent)    (percent) 
    ------------------------------------------------------------------------
    Lindsay #1..................  Section 25.....        100           76.56
    McDonald #1.................  Section 13.....         50           43.75
    McDonald #2.................  Section 13.....         31.25        27.31
    Thornbrough #1..............  Section 24.....        100           82.31
    Thornbrough #2..............  Section 24.....         62.5         51.26
    ------------------------------------------------------------------------
    
        All of these wells are located at T25S-R39W in Hamilton County, 
    Kansas. Thornbrough also claims that its request for relief from its 
    Kansas ad valorem taxes for the years 1982-1986 is based on a May 1, 
    1989 Settlement Agreement with CIG where the only mention of these 
    types of taxes, to which Thornbrough may be liable for making a refund, 
    is for the years 1987 and 1988.
        Any person desiring to be heard or to make any protest with 
    reference to said petition should on or before 15 days after the date 
    of publication in the Federal Register of this notice, file with the 
    Federal Energy Regulatory Commission, 888 First Street, N.E., 
    Washington, D.C. 20426, a motion to intervene or a protest in 
    accordance with the requirements of the Commission's Rules of Practice 
    and Procedure (18 CFR 385.214, 385.211, 385.1105, and 385.1106). All 
    protests filed with the Commission will be considered by it in 
    determining the appropriate action to be taken but will
    
    [[Page 14085]]
    
    not serve to make the protestants parties to the proceeding. Any person 
    wishing to become a party to a proceeding or to participate as a party 
    in any hearing therein must file a motion to intervene in accordance 
    with the Commission's Rules.
    David P. Boergers,
    Acting Secretary.
    [FR Doc. 98-7535 Filed 3-23-98; 8:45 am]
    BILLING CODE 6717-01-M
    
    
    

Document Information

Published:
03/24/1998
Department:
Federal Energy Regulatory Commission
Entry Type:
Notice
Document Number:
98-7535
Pages:
14084-14085 (2 pages)
Docket Numbers:
Docket No. SA98-14-000
PDF File:
98-7535.pdf