[Federal Register Volume 63, Number 82 (Wednesday, April 29, 1998)]
[Notices]
[Page 23429]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-11312]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket No. SA98-81-000]
Shannon Energy Corporation; Notice of Petition for Adjustment
April 23, 1998.
Take notice that on April 7, 1998, Shannon Energy Corporation
(Shannon) filed a petition, pursuant to section 502(c) of the Natural
Gas Policy Act of 1978 [15 U.S.C. Sec. 3412(c)] and Subpart K of the
Commission's Rules of Practice and Procedure, for an adjustment
relieving Shannon of its obligation to make:
(1) $17,501.17 in Kansas ad valorem tax refunds to Williams Gas
Pipelines Central, Inc., formerly: Williams Natural Gas Company
(Williams);
(2) $1,180.59 in Kansas ad valorem tax refunds to Colorado
Interstate Gas Company (CIG); and
(2) 43,245.89 in Kansas ad valorem tax refunds to Amoco Production
Company (Amoco), for subsequent flow-through to the purchaser.
Shannon contends that its financial condition cannot withstand
having to refund these amounts, because it is a scaled-down company
that no longer operates the wells that generated the refund
obligations, and because it will not be able to collect amounts owed by
the other working interest owners and the royalty interest owners,
since it has no way to bill them. Shannon's petition is on file with
the Commission and open to public inspection.
Shannon states that, although it was the operator of several
Hugoton wells during the period from December 1, 1986 through January
1, 1993, it no longer operates those wells, and has no way to obtain
reimbursement of amounts attributable to many of the working and
royalty interest owners, because Shannon is no longer billing out
through a Joint Interest Billing or paying revenue checks. Shannon
indicates that, collectively, Williams, CIG, and Amoco have served
Shannon with $61,927.65 in refund claims. Shannon contends that, if it
tries to make a ``special'' billing of the appropriate working and
royalty interest owners with respect to these refund claims, it will
not be reimbursed by those owners and, therefore, will receive the
hardship of the uncollectible debts. Shannon further states that it
does not have the funds to risk so large a write-off.
In view of the above, Shannon requests that it be relieved of its
obligation to refund the above-referenced amounts to Williams, CIG, and
Amoco, i.e., to be relieved of its obligation to refund the amounts
attributable to its own working interest, and to be relieved of the
obligation to make refunds on behalf of the other working interest
owners and the royalty 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. 98-11312 Filed 4-28-98; 8:45 am]
BILLING CODE 6717-01-M
