[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:
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Gross work Net revenue
Well name Location interest interest
(percent) (percent)
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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
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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