[Federal Register Volume 63, Number 56 (Tuesday, March 24, 1998)]
[Notices]
[Page 14083]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-7538]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket No. SA98-19-000]
Dale Schwarzhoff; Notice of Petition for Adjustment
March 18, 1998.
Take notice that on March 9, 1998, Dale Schwarzhoff (Schwarzhoff)
filed a petition for adjustment under section 502(c) of the Natural Gas
Policy Act of 1978 (NGPA),\1\ requesting a 90-day extension to allow
Schwarzhoff and Williams Natural Gas Company (WNG) to resolve any
dispute as to the proper amount of the refund liability of Schwarzhoff
for the 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\ and set forth in the Statement of Refunds
Due (SRD) addressed to Benson Mineral Group, Inc. (BMG), the operator,
or to submit such dispute to FERC for resolution if the parties cannot
resolve it within such time, and (2) in order to stop the accrual of
interest pending resolution of disputes and legal issues, grant an
adjustment to its procedures to allow Schwarzhoff to place into an
escrow account not only any disputed amount of the refund amount, but
also principal and interest on amounts attributable to production prior
to October 4, 1983, and interest on all other amounts claimed to be due
under the SRD. Schwarzhoff'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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It is stated that the SRD submitted to BMG includes tax
reimbursements in the amount of $49,243.49, for the Barngrover #1-#3
well. Schwarzhoff states that this well is classified as a Section 102
well under the NGPA, which was deregulated as of January 1, 1985.
Schwarzhoff further states that it disputes the obligation to refund
the tax reimbursements paid by WNG and received by BMG in 1985 and 1986
attributable to the Barngrover #1-#3 well that had been deregulated by
that time and for which there was no maximum lawful price. In order to
stop the continued accrual of interest; however, pending resolution of
disputes and legal issues, Schwarzhoff states that it will place in
escrow the amount of $503.65, representing what Schwarzhoff believes in
good faith, after an exhaustive review of the prices received, to be
the greatest potential liability attributable to the working interest
of Schwarzhoff claimed under the SRD. Alternatively, if retaining these
funds in escrow is not permitted, Schwarzhoff requests that WNG be
required to repay to Schwarzhoff, with interest, any of the amounts
paid to WNG from escrow which subsequently are determined not to have
been a part of Schwarzhoff's refund obligation.
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 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. 98-7538 Filed 3-23-98; 8:45 am]
BILLING CODE 6717-01-M
