[Federal Register Volume 63, Number 57 (Wednesday, March 25, 1998)]
[Notices]
[Pages 14455-14456]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-7775]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket No. SA98-23-000]
Raymond Oil Company, Inc.; Notice of Petition for Adjustment
March 19, 1998.
Take notice that on March 9, 1998, Raymond Oil Company, Inc.
(Raymond) filed a petition for adjustment under section 502(c) of the
Natural Gas Policy Act of 1978 (NGPA),\1\ requesting to be relieved of
its obligation to make Kansas ad valorem tax refunds to The Williams
Companies, Inc. (Williams), 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\ Raymond'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
[[Page 14456]]
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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Raymond states that Williams in its November 10, 1997 statement has
sought to collect a refund obligation of $376,134.78, including
interest through December 31, 1997 for the Carr Lease, the Carr ``A''
Lease, the Mills ``A'' Lease, the Mills ``R'' Lease, and the Cline
``A'' Lease. Raymond was the operator of the subject leases and no
portion of the ad valoram tax attributable to the royalty interest in
these leases was ever collected by Raymond and the same is not
pertinent to this proceeding. The working interest owners in varying
interests in the varying leases are John Alexander, R.L. Rooke, Francis
Raymond, Western Ventures, Inc., Patrick Raymond, William M. Raymond,
Shirley Stark and Raymond Oil Company, Inc. Raymond has remitted under
protest, with all rights reserved, $203,935.24 to Williams on behalf of
Patrick Raymond, William M. Raymond, Shirley Stark and Raymond Oil
Company, Inc.
Raymond States that John Alexander, R.L. Rooke and Francis Raymond
are deceased and that the alleged refunds should be deemed
uncollectible. Their respective estates are now closed and the Kansas
non-claims statute (K.S.A. 59-2239) has since run out thus leaving no
legal way for Raymond, as operator, from taking legal action for
recovering any of the monies. Raymond was never the owner of the gas
attributable to these deceased working interest owners and as a
contract operator of the subject oil and gas leases, Raymond did not
purchase this gas from them and does not have an ongoing contractual
relationship permitting it to collect the subject refunds through the
use of billing adjustments. Raymond reports the monies to be $11,284.04
from John Alexander, $37, 613.48 from R.L. Rooke and $48,075.07 from
Francis Raymond.
Raymond states that the alleged refunds due from Western Ventures,
Inc. (Western) should be determined as uncollectible. Western was
liquidated on December 4, 1986 and the Kansas statutes relating to the
liabilities of a dissolved corporation provide that successors in
interest now have no obligation for making reimbursement for monies
received by the corporation. Raymond requests that the Commission
recognize that the applicable three year Kansas statute of limitation
and the laws of the State of Kansas prohibit Raymond, as operator, from
taking legal action against Western and its stockholders in an attempt
to obtain a refund of the tax and interest. Raymond reports that
Western owes a refund of $75,226.96.
Raymond requests that the Commission grant Raymond staff adjustment
in the amount of $172,199.55 for taxes and interest as of December 31,
1997, in connection with the Statement of Refunds Due submitted to it
on November 10, 1997, by Williams.
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 must file a motion to intervene in accordance with the
Commission's Rules
David P. Boergers,
Acting Secretary.
[FR Doc. 98-7775 Filed 3-24-98; 8:45 am]
BILLING CODE 6717-01-M
