[Federal Register Volume 63, Number 69 (Friday, April 10, 1998)]
[Notices]
[Pages 17829-17830]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-9491]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket Nos. GP98-26-000, GP98-27-000, GP98-28-000, and GP98-29-000
(Not consolidated)]
ONEOK Resources Company; Notice of Petitions for Dispute
Resolution
April 6, 1998.
Take notice that, on March 12, 1998, ONEOK Resources Company (ONEOK
Resources), successor to ONEOK Exploration Company (ONEOK Exploration)
and Imperial Oil & Gas, Inc., filed:
(1) A petition, in Docket No. GP98-26-000, requesting the
Commission to resolve ONEOK Resources' dispute with Northern Natural
Gas Company (Northern), over ONEOK Resources' Kansas ad valorem tax
refund liability to Northern;
(2) A petition, in Docket No. GP98-27-000, requesting the
Commission to resolve ONEOK Resources' dispute with Panhandle Eastern
Pipe Line Company (Panhandle), over ONEOK Resources' Kansas ad valorem
tax refund liability to Panhandle;
(3) A petition to Docket No. GP98-28-000, requesting the Commission
to resolve ONEOK Resources' dispute with Williams Gas Pipelines
Central, Inc., formerly: Williams Natural Gas Company (Williams), over
ONEOK Resources' Kansas ad valorem tax refund liability to Williams;
and
(4) A petition in Docket No. GP98-29-000, requesting the Commission
to resolve ONEOK Resources' dispute with KN Interstate Gas Transmission
Company (KNI), over ONEOK Resources' Kansas ad valorem tax refund
liability to KNI.
The Commission, by order issued September 10, 1997, in Docket No.
RP97-369-000 et al.,\1\ on remand from the D.C. Circuit Court of
Appeals,\2\ required first sellers to refund the Kansas ad valorem tax
reimbursements to the pipelines, with interest, for the period from
1983 to 1988. In its January 28, 1998, Order Clarifying Procedures, the
Commission stated that producers (i.e., first sellers), could file
dispute resolution requests with the Commission, asking the Commission
to resolve the dispute with the pipeline over the amount of Kansas ad
valorem tax refunds owed, see 82 FERC para. 61,059 (1998). ONEOK
Resources' petitions are on file with the Commission and open to public
inspection.
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\1\ See 80 FERC para. 61,264 (1997); order denying reh'g issued
January 28, 1998, 82 FERC para. 61,058 (1998).
\2\ 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).
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In each petition, ONEOK Resources states that: (1) it has no
records prior to its purchase of certain producing interests in the
State of Kansas; (2) it assumed the obligation for those producing
interests on September 1, 1985; (3) through the close of business on
March 9, 1998, it attempted to resolve its differences with each
pipeline; (4) its attempts failed with respect to each pipeline; and
(5) it now requests the Commission to establish procedures to resolve
the issue of the correct amount of the refunds due each pipeline.
In its petition in Docket No. GP98-26-000, ONEOK Resources states
that it disputes owing $21,386.07, plus interest, to Northern, and has
placed that money into escrow. ONEOK Resources states that it has paid
Northern the remaining balance of $4,952.60 in principal and $10,717.32
in interest.
In its petition in Docket No. GP98-27-000, ONEOK Resources
concludes that it does not owe Panhandle any refunds for the 1985
Kansas ad valorem tax reimbursements, because it did not receive the
maximum lawful price for those gas sales. Therefore, ONEOK Resources
concludes that it does not owe Panhandle the $12,326.09 and $18,555.79
in related interest to Panhandle. ONEOK Resources states that it has
placed these amounts into escrow. ONEOK Resources further concludes
that it does not owe Panhandle the $76,366.95 in principal and
$166,902.91 in related interest pertaining to Kansas ad valorem tax
reimbursements that were paid to an individual prior to ONEOK
Resources' acquisition of that individual's working interest in the
wells. ONEOK Resources states that the remaining $16,467.51 in
principal and $30,379.94 in related interest has been paid to
Panhandle.
In its petition in Docket No. GP98-28-000, ONEOK Resources states
that it received a copy of a Statement of Gas Settlement, dated
September 25, 1986, identifying $6,642.24 of the original $15,526.45 of
principal requested by Williams. ONEOK Resources states that it is
trying to confirm this information, and that it will dispute the
remaining $8,884.22 of principal, and the related interest, until it
confirms this information. ONEOK Resources also states that it
disagrees with Williams' interest calculation methodology. ONEOK
Resources contends that interest should be computed from the date the
check was issued (September
[[Page 17830]]
26, 1986) to ONEOK Exploration, rather than the date that ONEOK
Exploration paid the ad valorem tax to the State of Kansas. According
to ONEOK Resources, the true interest on the $6,642.24 principal is
$10,381.41. ONEOK Resources states that the revised total ($17,023.65)
has been remitted to Williams.
In its petition in Docket No. GP98-29-000, ONEOK Resources states
that it has requested verification from KNI concerning the statement
that KNI sent, requesting payment of $46,491.46. ONEOK Resources states
that such verification was not received until March 9, 1998, that it
has not had time to review this information, and that it has placed the
entire sum into escrow.
Any person desiring to comment on or make any protest with respect
to any of the above-referenced petitions should, on or before April 22,
1998, file with the Federal Energy Regulatory Commission, 888 First
Street, NE., Washington, DC 20426, a motion to intervene or protest in
accordance with the requirements of the Commission's Rules of Practice
and Procedure (18 CFR 385.214 or 385.211). 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 the
proceeding, or to participate as a party in any hearing therein, must
file a motion to intervene in accordance with the Commission's Rules.
Linwood A. Watson, Jr.,
Acting Secretary.
[FR Doc. 98-9491 Filed 4-9-98; 8:45 am]
BILLING CODE 6717-01-M
