[Federal Register Volume 62, Number 95 (Friday, May 16, 1997)]
[Notices]
[Pages 27020-27021]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-12828]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket No. CP97-487-000]
Western Resources, Inc.; ONEOK, Inc., and WAI, Inc.; Notice of
Application to Abandon Transportation and Exchange Services and
Application for Certificate Transferring Certificates, Services, and
Authorizations
May 12, 1997.
Take notice that on May 1, 1997, Western Resources, Inc. (Western),
818 Kansas Avenue, Topeka, Kansas 66612, ONEOK, Inc. (ONEOK), 100 West
5th Street, P.O. Box 871, Tulsa, Oklahoma 74103, and WAI, Inc. (WAI)
jointly filed an application in Docket No. CP97-487-000. In the
application, Western requests permission and approval, pursuant to
section 7(b) of the Natural Gas Act, to abandon/transfer: (1) Its
limited jurisdiction certificate, issued in Docket No. CP93-750-000,
which authorized the transportation of gas on a no-fee exchange basis
between Western and Southern Union Company, d/b/a Missouri Gas Energy;
(2) its blanket certificate authorization, issued in Docket No. CP82-
268-000; and (3) its section 7(f) service determination, issued to
Western's predecessor--Kansas Power and Light Company in Docket No.
CP89-485. ONEOK and WAI request a certificate authorizing ONEOK/WAI to:
(1) Acquire Western's limited jurisdiction certificate; (2) acquire
Western's blanket certificate authorization; (3) acquire Western's
certificate authorizing its service area designation, i.e., Western's
section 7(f) service determination; and (4) perform the transportation,
exchange, and other services previously performed by Western, all as
more fully set forth in the application, which is on file with the
Commission and open to public inspection.
According to the Applicants, Western is a local distribution
company that currently provides natural gas service to customers in
Cherokee County, Kansas and Ottawa County, Oklahoma, ONEOK operates
principally as a natural gas utility through its Oklahoma Natural Gas
Company division, which serves customers in Oklahoma, and WAI will be
formed prior to the proposed transfer transaction, as a corporation and
wholly-owned subsidiary of Western, qualified to do business in Kansas.
The Applicants state that after the transfer transaction, ONEOK/WAI
will be comprised of Western's existing gas operations in Cherokee
County, Kansas and Ottawa County, Oklahoma and all of ONEOK's
operations. The Applicants further assert that no change in gas
business operations will occur at this time.
The Transfer Transaction
Western and ONEOK have entered into an agreement, dated December
12, 1996, under which Western will contribute its regulated gas
businesses in Kansas and Oklahoma to WAI, including Western's stock in
Westar Gas Marketing, Inc. (Western's marketing subsidiary), and
Western's stock in Mid Continent Market Center, Inc. (MCMC),\1\ in
exchange for WAI common and preferred stock, and the assumption (by
WAI) of certain of Western's unsecured debts. ONEOK will then merge
into WAI, which (according to the Applicants) will result in the one-
for-one conversion of all of the outstanding ONEOK common shares of
stock into
[[Page 27021]]
WAI common shares, such that the ONEOK shareholders will own not less
than 55 percent (55%) of the WAI outstanding equity. The Applicants
state that, immediately following the transfer transaction, Western
will own up to 9.9 percent (9.9%) of the outstanding WAI common stock
and, together with the WAI preferred stock, up to 45 percent of the WAI
outstanding equity. The applicants add that WAI will assume all of the
debts of ONEOK as part of the transfer transaction, and that WAI will
change its name to ONEOK, Inc. after the transfer transaction closes.
Accordingly, the Applicants request that the Commission issue the
certificate to WAI in the name of ONEOK, Inc.
---------------------------------------------------------------------------
\1\ According to the Applicants, MCMC is a regulated, wholly-
owned subsidiary of Western that the Commission recognized as a
Hinshaw pipeline in Docket No. CP95-684-000. The Applicants add that
MCMC operates in Kansas, providing interstate service under a
blanket certificate issued in Docket No. CP95-684-000, under which
MCMC is allowed to conduct transaction under Part 284 of the
Commission's regulations.
---------------------------------------------------------------------------
Any person desiring to be heard or to make any protest with
reference to said application should on or before June 2, 1997, file
with the Federal Energy Regulatory Commission, Washington, DC 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 or
385.211) and the Regulations under the Natural Gas Act (18 CFR 157.10).
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 party 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.
Take further notice that, pursuant to the authority contained in
and subject to the jurisdiction conferred upon the Federal Energy
Regulatory Commission by Sections 7 and 15 of the Natural Gas Act and
the Commission's Rules of Practice and Procedure, a hearing will be
held without further notice before the Commission or its designee on
this application, if no motion to intervene is filed within the time
required herein, or if the Commission on its own review of the matter
finds that permission and approval for the proposed abandonment and a
grant of the requested certificate are required by the public
convenience and necessity. If a motion for leave to intervene is timely
filed, or if the Commission on its own motion believes that a formal
hearing is required, further notice of such hearing will be duly given.
Under the procedure herein provided for, unless otherwise advised,
it will be unnecessary for the Applicants to appear or be represented
at the hearing.
Lois D. Cashell,
Secretary.
[FR Doc. 97-12828 Filed 5-15-97; 8:45 am]
BILLING CODE 6717-01-M
