[Federal Register Volume 63, Number 56 (Tuesday, March 24, 1998)]
[Notices]
[Pages 14076-14077]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-7539]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket No. SA98-24-000]
Cabot Oil & Gas Corporation; Notice of Petition for Adjustment
March 18, 1998.
Take notice that on March 9, 1998, Cabot Oil & Gas Corporation
(Cabot) filed a petition for adjustment under section 502(c) of the
Natural Gas Policy Act of 1978 (NGPA),\1\ requesting an extension of
the March 9, 1998, deadline established for first sellers to remit
refunds of Kansas ad valorem taxes (``Tax'' or ``Taxes'') to their
pipeline purchasers, 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\ Cabot's petition is on file with the Commission and open to
public inspection.
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
The Commission's September 10 order on remand from the D.C. Circuit
Court of Appeals \3\ directed first sellers
[[Page 14077]]
under the NGPA to make Kansas ad valorem tax refunds, with interest,
for the period from 1983 to 1988. The Commission issued a January 28,
1998 order in Docket No. RP98-39-001, et al. (January 28 Order),\4\
clarifying the refund procedures, stating that producers could request
additional time to establish the uncollectability of royalty refunds,
and that first seller may file requests for NGPA section 502(c)
adjustment relief from the refund requirement and the timing and
procedures for implementing the refunds, based on the individual
circumstances applicable to each first seller.
---------------------------------------------------------------------------
\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).
\4\ 82 FERC para. 61,059 (1998).
---------------------------------------------------------------------------
Cabot (as well as a predecessor-in-interest) has received
Statements of Refunds Due (``Statements'') from two of its then
pipeline purchasers for Tax reimbursements received in conjunction with
sales of Kansas natural gas for the period October 3, 1983 through June
28, 1988. Cabot is in the process of reviewing such Statements to
determine their accuracy, as well as to address various other issues
concerning whether Cabot, in fact, owes all or only a portion of such
Tax refunds. Cabot's review includes whether such refund amounts are
``uncollectible'' pursuant to the standard set forth by the Commission.
To date, Cabot has not completed its review of the Statements.
Cabot also is aware that numerous issues are either pending
rehearing before the Commission, or for which appellate review has been
sought. Cabot believes that these issues could, depending on their
ultimate disposition, directly impact, and possibly significantly
decrease, Cabot's Tax refund obligation.
Accordingly,to ensure that Cabot does not pay the Statements before
their accuracy is verified and prior to these issues that are pending
rehearing or appeal are finally resolved, Cabot is placing in escrow
all invoiced amounts, together with interest, set forth in the
Statements. Cabot also is requesting that the Commission grant Cabot an
extension beyond March 9, 1998, to determine the accuracy of the
Statements and what, if any, involved amounts are, in fact,
uncollectible or otherwise improperly or unlawfully invoiced.
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 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. 98-7539 Filed 3-23-98; 8:45 am]
BILLING CODE 6717-01-M
