[Federal Register Volume 63, Number 82 (Wednesday, April 29, 1998)]
[Notices]
[Page 23428]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-11311]
[[Page 23428]]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket No. SA98-80-000]
Hummon Corporation; Notice of Petition for Adjustment
April 23, 1998.
Take notice that on April 3, 1998, Hummon Corporation (Hummon)
filed a petition, pursuant to section 502(c) of the Natural Gas Policy
Act of 1978 (NGPA) [15 U.S.C. Sec. 3412(c)] and Subpart K of the
Commission's Rules of Practice and Procedure, on behalf of certain
working interest owners for whom Hummon operated. Therein, Hummon seeks
an adjustment relieving those working interest owners of their
obligation to make Kansas ad valorem tax refunds to Northern Natural
Gas Company (Northern) and/or Panhandle Eastern Pipe Line Company
(Panhandle), on the basis that the working interest owners' financial
status cannot absorb the payment of the refunds claimed, over the next
five years. Hummon bases its financial status claim on a statement
reflecting the projected net profit for Hummon and its working interest
owners over the next five years (Statement 1), and on a statement of
the net income from the subject wells over the past two years
(Statement 2). Hummon's petition is on file with the Commission and
open to public inspection.
Hummon indicates that Panhandle is claiming a $11,440.19 total
refund with respect to the Perry Lease. Hummon's Statement 1 and
Statement 2 data for the Perry Lease are shown below. Hummon bases its
5-year projections on a $14 oil price and $1.85 gas price.
------------------------------------------------------------------------
Perry lease
------------------------------------------------------------------------
Actual............................................ 1996 $2,793
1997 (3,619)
Projected......................................... 1998 310
1999 (1.090)
2000 (2,280)
2001 (3,288)
2002 (5,156)
---------------------
....... \1\ (11,504
)
------------------------------------------------------------------------
\1\ Hummon's petition erroneously calculates the net loss to be $10,504.
Hummon indicates that Northern is claiming a total refund of
$80,923.52 with respect to multiple leases. Hummon identifies the
following leases, and provides the lease status and the refunds
generated by each lease:
Combrink Lease................. Plugged in 1994........ $1,272.24
Hazen Lease.................... Plugged June 20, 1983.. 1.321.78
Hibbert Lease.................. Plugged December 1985.. 2,250.54
Harper Ranch #1 GU............. Second well drilled in 16,317.79
1995.
Harper Ranch #2 GU............. Evaluating well for 2,423.67
plugging.
McMinimy Lease................. Producing.............. 57,223.80
---------------
80,809.82
Hummon provides its Statement 1 and Statement 2 data for the three
active leases (Harper Ranch #1 GU, Harper Ranch #2 GU, and the McMinimy
Lease). Hummon's 5-year projected net profit/loss for each of these
three leases is based on a $14 oil price and a $1.85 gas price.
----------------------------------------------------------------------------------------------------------------
Harper Harper McMinimy
ranch #1 GU ranch #2 GU lease
----------------------------------------------------------------------------------------------------------------
Actual...................................................... 1996 \1\ $60,889 ($6,407) \2\ $26,019
1997 14,372 (1,802) 31,831
Projected................................................... 1998 14,104 (1,610) 32,479
1999 5,749 (3,532) 23,293
2000 (1,353) (5,167) 15,485
2001 (7,384) (6,556) 8,849
2002 (12,517) (7,739) 3,206
---------------------------------------------------
........... (1,401) (24,604) 83,312
----------------------------------------------------------------------------------------------------------------
\2\ Hummon asserts that this figure is caused by flush production from a second well drilled on the lease.
Overall, Hummon states that seven (7) wells are involved in its
petition, and that each has different working interest owners. Hummon's
petition does not identify the working interest owners by name that are
involved in the petition, and does not provide any information
regarding the financial status of any of those working interest 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. 98-11311 Filed 4-29-98; 8:45 am]
BILLING CODE 6717-01-M
