[Federal Register Volume 63, Number 57 (Wednesday, March 25, 1998)]
[Notices]
[Pages 14448-14449]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-7776]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket No. SA98-28-000]
Kaiser-Francis Oil Company; Notice of Petition for Adjustment
March 19, 1998.
Take notice that on March 9, 1998, Kaiser-Francis Oil Company
(Kaiser) filed a petition for adjustment under section 502(c) of the
Natural Gas Policy act of 1978 (NGPA),\1\ requesting a one-year
extension of the deadline for making refunds as to royalties and
requesting that the Commission grant a procedural adjustment to allow
it to
[[Page 14449]]
place into an escrow account the interest on the total principle amount
attributable to Kaiser's working interest. The March 9, 1998, deadline
was established for first sellers to remit refunds of Kansas ad valorem
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\ Kaiser'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 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.
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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).
\4\ 82 FERC para. 61,059 (1998).
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Kaiser states it is substantially and adversely affected by the
potential Kansas ad valorem tax refund requirement. Kaiser is not
seeking to relieve itself of that refund obligation. Rather Kaiser
seeks to establish procedures which ensure: (a) That it pays only that
which is legitimately owed; and (b) that if it is subsequently
determined that its refund liability was less than that originally
claimed by Anadarko Petroleum Company (Anadarko) in Docket No. RP98-43-
000, it can recover the overpayment. Accordingly, Kaiser requests an
adjustment to the general refund procedures to permit it to pay the
following amount into an escrow account: the interest on the principal
amount attributable to Kaiser's working interest, totaling $19,816.78.
Kaiser states that although there are issues relating to portions
of the principal refunds which are pending before the court,\5\ to
demonstrate its good faith in these proceedings Kaiser has paid the
principal amount of refunds attributable to Kaiser's working interest
in the amount of $10,169.99 to Anadarko. Should the Commission provide
assurances that Kaiser will be able to recover any overpayments without
having to initiate a prompt return of refund amounts determined not to
be due (such return of refunds not dependent upon recovery from
consumers), Kaiser would agree to waive this request for escrowing
certain monies. Without such assurances, Kaiser is entitled to have its
property protested until the issue of liability has been fully resolved
in Court or Congress.
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\5\ See, Case No. 98-60043, Untied States Court of Appeals for
the Fifth Circuit in Anadarko Petroleum Corp. v. FERC, and Union
Pacific Resources Company v. FERC.
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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. 98-7776 Filed 3-24-98; 8:45 am]
BILLING CODE 6717-01-M
