[Federal Register Volume 63, Number 105 (Tuesday, June 2, 1998)]
[Notices]
[Pages 29981-29982]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-14480]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket No. GP98-33-000]
Graham-Michaelis Corporation; Notice of Petition for Dispute
Resolution
May 27, 1998.
Take notice that, on May 19, 1998, Graham-Michaelis Corporation
(GMC) filed a petition requesting the Commission to resolve any dispute
between GMC and Williams Gas Pipelines Central, Inc., formerly:
Williams Natural Gas Company (Williams), regarding GMC's refund
liability for Kansas ad valorem tax reimbursements that Amoco made to
GMC and that GMC forwarded to certain third-party working interest
owners. GMC asks the Commission to find that GMC has no such refund
liability, to Williams, because GMC only served as the operator for
those third-party working interest owners, and did not hold an interest
in those leases and wells. GMC's petition is on file with the
Commission and open to public inspection.
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).
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\1\ See 80 FERC para. 61,264 (1997); order denying rehearing
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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GMC states that it received a copy of a letter that Amoco
Production Company (Amoco) sent to Williams (in response to the
Statement of Refunds Due that Williams sent to Amoco) that detailed
Amoco's analysis of its Kansas ad valorem tax refund liability. GMC
notes that Amoco stated therein that it is not responsible for refunds
attributable to third-party working interests, and listed ``Graham-
Michaelis'' as having received these reimbursements during the
applicable period (1983-1988). GMC states that, with interest computed
through March 9, 1998, these refunds total $42,004.68.
While GMC agrees that Amoco has no refund liability for the third-
party reimbursements, GMC contends that it also has no such refund
liability, because GMC only operated the leases and the eight wells
involved (Bowker 2, Lowe, Long Wood, Wheatley 2-33, Weber B, Weber A,
Dennis, and Steen) on behalf of the working interest owners, and GMC
did not retain the Kansas ad valorem tax reimbursements. GMC adds that:
1) the subject working interest owners sold the leases and wells a
number of years ago; 2) many of the corresponding files and records
were turned over to the purchaser; 3) it has been unable to determine
whether, and to what extent these reimbursements exceeded the maximum
lawful prices; and 4) it has been unable to determine the principal and
interest owed by each working interest owner.
GMC states that it has not received a Statement of Refunds Due from
Williams with respect to these refunds; thus, no refund claim has been
leveled at GMC. GMC further states that it does not know, at this time,
whether any dispute with Williams exists. Nevertheless, GMC asks the
Commission to find that GMC has no refund liability to Williams, with
regard to the Kansas ad valorem tax reimbursements that GMC passed
through to the working interest owners. Meanwhile, GMC states that it
will: 1) continue to assemble the information to determine what Kansas
ad valorem tax reimbursement distributions it made to each working
interest owner; 2) continue its efforts to determine whether those
reimbursements exceeded the applicable maximum lawful prices; and 3)
notify the working interest owners of their refund liability once GMC
completes its determinations, and furnish its findings to Williams,
[[Page 29982]]
along with the names and addresses of the working interest owners. GMC
states that it believes that these determinations will be completed and
the notifications given within the next three weeks.
Any person desiring to comment on or make any protest with respect
to the above-referenced petition should, on or before June 17, 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. 98-14480 Filed 6-1-98; 8:45 am]
BILLING CODE 6717-01-M
