[Federal Register Volume 63, Number 57 (Wednesday, March 25, 1998)]
[Notices]
[Pages 14449-14450]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-7777]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket No. SA98-30-000]
Kaiser-Francis Oil Company; Notice of Petition for Adjustment
March 19, 1998.
Take notice that on March 9, 1998, Kaiser-Francis Oil Company
(Kaiser-Francis) filed a petition for adjustment under section 502(c)
of the Natural Gas Policy Act of 1978 (NGPA),\1\ requesting that the
refund procedures in the Commission's September 10, 1997 order in
Docket Nos. RP97-369-000, GP97-3-000, GP97-4-000, and GP97-5-000,\2\ be
altered with respect to Kaiser-Francis' Kansas ad valorem tax refund
liability.
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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-Francis requests authorization, pursuant to the Commission's
January 28 Order, to defer payment to Williams Natural Gas Company
(Williams) of principal and interest refunds attributable to
unrecovered royalties for one year until March 9, 1999. In addition,
Kaiser-Francis requests that it be allowed to place into an escrow
account during the requested 1-year deferral period: (1) An amount
equal to the principal and interest on royalty refunds which have not
been recovered; (2) an amount equal to the interest on royalty refunds
recovered (the principal of which was paid to Williams (to protect the
interests of royalty owners); and (3) an amount equal to the interest
on the total remaining amount of refunds allegedly due (i.e., the
interest due on principal), excluding royalties.
Kaiser-Francis argues that it seeks to establish these procedures
to ensure that it pays only that which is legitimately owed, and that
it will be able to recover the overpayment, if it is subsequently
determined that Kaiser-Francis's refund liability was less than that
originally claimed by Williams. Kaiser-Francis asserts that a one-year
deferral in the obligation to make royalty refunds is necessary in
order to allow it to confirm the appropriate refund amounts due, to
attempt to locate the prior royalty owners, and to seek recovery of
such amounts from the proper royalty owners.
[[Page 14450]]
On or before March 9, 1999, Kaiser-Francis proposes to file
documentation with the Commission, of those royalties which were not
collectible and disburse the recovered royalty refund principal only to
Williams. Until that time, Kaiser-Francis proposes to place the
interest from royalty refunds which was recovered in its escrow account
to protect the royalty owners. In addition, Kaiser-Francis argues that
its proposal for an escrow account is necessary to protect its property
and that of its royalty owners.
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. 98-7777 Filed 3-24-98; 8:45 am]
BILLING CODE 6717-01-M
