[Federal Register Volume 63, Number 58 (Thursday, March 26, 1998)]
[Notices]
[Pages 14694-14695]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-7850]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket No. SA98-34-000]
McCoy Petroleum Corporation; Notice of Petition for Adjustment
March 20, 1998.
Take notice that on March 9, 1998, McCoy Petroleum Corporation
(McCoy), 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 refund to The Williams Companies, Inc., (Williams)
the Kansas ad valorem tax refunds owned by three of the working
interest owners in a well located in Barber County, Kansas, otherwise
required by the Commission's September 10, 1997 order (September 10
order) in Docket Nos. RP97-369-000, GP97-3-000, GP97-4-000, and GP97-5-
000.\2\ McCoy'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 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 clarified the refund procedures in an order
issued January 28, 1998, in Docket No. RP98-39-001, et al.,\4\ stating
therein that producers [first sellers] could request additional time to
establish the uncollectability of royalty refunds, and that first
sellers 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 their individual circumstances.
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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).
\4\ See Order Clarifying Procedures 82 FERC para. 61,059 (1998).
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McCoy states that it was and is the operator of the Wortman #1
Lease and the Reed #1 Lease located in Barber County, Kansas. McCoy
claims that no portion of the ad valorem tax attributable to the
royalty interest in these leases was ever collected by McCoy and is not
pertinent to this proceeding. McCoy also states that three of the
working interest owners in the Reed #1-23 Well were National Oil
Company (National), K & E Drilling Company (K&E), and Christina Sollars
(Sollars). McCoy explains that since payment of the reimbursement of
the ad valorem taxes to National and Sollars, they have both declared
bankruptcy. McCoy states that several years ago K & E sold all of its
assets and the company is no longer in business. McCoy indicates that
the principal and attributable to National is $1550.88, the amount of
the principal and attributable to K&E is $620.35, and the amount of
principal attributable to Sollars is $48.46 for a total of $2,219.69.
McCoy asserts that the claims against Nation and Sollars by McCoy
are uncollectable by virtue of the federal bankruptcy law. McCoy also
asserts that the Kansas statutes relating to the liabilities of a
dissolved corporation provide that successors in interest to K&E have
no obligation at this time to pay to Williams any Kansas ad valorem tax
reimbursement that may have been received by the corporation during the
subject period. McCoy further states that the balance of the claim made
by Williams against McCoy is being remitted under protest, with all
rights reserved, to Williams on behalf of McCoy and the other working
interest owners in the two subject leases.
In support of its request for a staff adjustment, McCoy states that
it does not have an ongoing contractual relationship with these three
working interest owners which would permit McCoy to collect the subject
refunds through billing adjustments. McCoy asserts that therefore the
alleged refunds as to these three working interest owners should be
deemed to be uncollectible and the Commission should waive the
obligation of McCoy to make payment of the same. McCoy requests that
the Commission grant McCoy staff adjustment in the amount $2,219.69 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 to protestants parties to the proceeding. Any person wishing
[[Page 14695]]
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. 98-7850 Filed 3-25-98; 8:45 am]
BILLING CODE 6717-01-M
