[Federal Register Volume 63, Number 45 (Monday, March 9, 1998)]
[Notices]
[Pages 11437-11438]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-5963]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket No. GP98-20-000]
Union Pacific Resources Company; Notice of Offer of Settlement
and Call for the Protection of Rights Pending Adjudication or
Settlement
March 3, 1998.
Take notice that on February 24, 1998, Union Pacific Resources
Company (UPRC), alleging compliance with the Commission's January 28,
1998 Order Clarifying Procedures (82 FERC para. 61,059), filed; an
offer of settlement with the Commission, and called for the protection
of its rights pending adjudication or settlement, with respect to
UPRC's Kansas ad valorem tax refund obligation to Northern Natural Gas
Company (Northern Natural), identified in the Statement of Refunds Due
filed by Northern Natural in Docket No. RP98-39-000. UPRC's pleading is
on file with the Commission and, except for UPRC's confidential offer
of settlement, is open to public inspection.
UPRC contends that the Commission has established a procedure to
follow, under 18 CFR 385.602 of the Commission's regulations, when
informal settlement or reconciliation efforts fail, and that it has
complied with the requisites of that Section. UPRC suggests that a
Settlement Judge be appointed, that UPRC's refund obligation to
Northern Natural be held in abeyance and that interest be tolled, on
the basis that UPRC has a constitutional and statutory right to a
hearing before it may be deprived of property, i.e., the 1983-1988
Kansas ad valorem tax reimbursement dollars that UPRC previously
collected from
[[Page 11438]]
Northern Natural. UPRC further alleges that it made a settlement offer
to Northern Natural, and that Northern Natural rejected that offer.
UPRC also requests a full and fair hearing, and claims that there
are contested issues of material fact (measurable in dollars) on which
Northern Natural and UPRC disagree. UPRC further argues that these
issues must be adjudicated. UPRC's alleged issues of material fact
include:
(1) the amount of dollars of revenue UPRC collected for the sale of
its gas in each relevant time period;
(2) how much (if any) of the dollars UPRC collected were in excess
of the maximum lawful price (MLP) in each relevant time period;
(3) how much (if any) of the excess dollars collected by UPRC were
actually paid by customers of interstate pipelines through the
pipeline's PGA process, i.e., how much were the pipeline's customers
overcharged; and
(4) assuming that part of the refund amount is interest, then when
did the interstate pipeline customers begin paying a fraction of the
amounts determined to be in excess of the MLP, which UPRC contends will
govern the amount of interest owned.
UPRC's pleading includes its claim that it has complied with the
Commission's orders requiring a statement of its basic principles for
rejecting Northern Natural's refund claim, and UPRC's privileged and
confidential offer of settlement to Northern Natural (UPRC's Attachment
A). UPRC also provides its own assessment as to how to compute the
correct refund amount.
The procedural rules governing settlements are set forth in Section
385.602 of the Commission's Rules of Practice and Procedure. Under
Section 385.602(f), any person wishing to make comments with respect to
an offer of settlement must do so not later than 20 days after the date
the settlement offer was filed. Reply comments must be filed not later
than 30 days after the date the settlement offer was filed.
Accordingly, any person desiring to file comments with respect to
UPRC's offer of settlement should file with the Federal Energy
Regulatory Commission, 888 First Street, NE., Washington, DC 20426, by
March 16, 1998, in accordance with the requirements of the Commission's
Rules of Practice and Procedure [18 CFR 385.602(f)].
David P. Boergers,
Acting Secretary.
[FR Doc. 98-5963 Filed 3-6-98; 8:45 am]
BILLING CODE 6717-01-M
