[Federal Register Volume 63, Number 108 (Friday, June 5, 1998)]
[Notices]
[Pages 30734-30735]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-14967]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket No. GP98-34-000]
BP Exploration and Oil, Inc.; Notice of Petition
June 1, 1998.
Take notice that on May 20, 1998, BP Exploration and Oil, Inc. (BP
Exploration), filed a petition requesting the Commission to determine
certain issues affecting the amount and interest due from BP
Exploration to ANR Pipeline Company (ANR) as a result of certain Kansas
ad valorem tax reimbursements. BP Exploration requests, among other
things, (1) an
[[Page 30735]]
extension of 106 days to and including June 23, 1998, of the deadline
to make payment of any refunds due to ANR and (2) waiver of any
interest obligation applicable to the period November 10, 1997 through
February 24, 1998. BP Exploration's petition is on file with the
Commission and open to public inspection.
On September 10, 1997, in Docket No. RP97-369-000 et al., the
Commission issued an order,\1\ on remand from the D.C. Circuit Court of
Appeals,\2\ that directed first sellers to make Kansas as valorem tax
refunds, with interest, for the period from 1983 to 1988. The
Commission directed the pipelines to serve first sellers with a
Statement of Refunds Due within 60 days of the date of the refund
order, and directed first sellers to make the necessary refunds within
180 days of the date of the refund order (i.e., by March 9, 1998).
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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) (Public Service).
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BP Exploration states that the Kansas ad valorem tax reimbursements
for which it is responsible were received by Lear Petroleum
Exploration, Inc. (Lear), and were attributable to production sold by
Lear to ANR between 1983 and 1985. BP Exploration states there is no
dispute between ANR and BP Exploration about the amount and timing of
reimbursements received and the petition relates solely to issues of
law and policy. BP Exploration therefore does not ask the Commission to
determine the amount of the refund obligation.
BP Exploration states that although it does not have any interest
in Lear, BP Exploration, by contract, retains general responsibility
for past refund obligations of Lear. BP Exploration is therefore
responding to ANR's Statement of Refunds Due (Statement) and will make
the required payments.
BP Exploration states its response to ANR's Statement has been
unavoidably delayed because BP did not receive notice from ANR of any
claimed refund liability until after February 24, 1998. Therefore, BP
has filed for an adjustment in Docket No. SA98-77-000 in which it has
requested that its time for payment of refunds be extended by 106 days
so that BP will have the full time period contemplated by the
Commission to review ANR's documentation and to resolve any disputes.
BP has also requested to be relieved of any interest due for the
additional 106-days period. BP states that is incorporates by reference
its petition for adjustment in Docket No. SA98-77-000.
BP states that the FERC has established procedures to determine
whether ANR will be required to flow refunds through to its customers.
BP requests that if the Commission determines that ANR is not required
to flow refunds through to its customers, BP is not required to pay
interest to ANR.
BP states that although the refund obligation is to be tied under
the court's order to production on and after October 4, 1983, ANR has
assessed refunds attributable to ANR's purchases of Lear's production
from January 1, 1983. BP recognizes that the Commission in its
September 10, Public Service Company order provided a clarification of
the court's opinion, stating that refunds would be due based on tax
bills rendered after October 4, 1983, rather than on production
purchased after October 4. BP believes the Commission's clarification
of the court's intention was in error. Accordingly, BP requests that
the court's October 4 refund commencement date, based on production, be
applied to it and that it receive the benefit of whatever
clarification, correction, or reconsideration of the Commission's
position may occur as a result of action by the Commission or the
courts in this or other proceedings. BP requests the refund amounts
(both principal and interest) be recalculated and reduced to reflect
production purchased after October 4, 1983.
Reflecting its assertions, BP states that on or before June 1,
1998, it will refund certain undisputed amounts of principal and
interest. BP states that certain disputed principal and interest
amounts will be placed in an escrow account.
Any person desiring to comment on or make any protest with respect
to the above-referenced petition should, on or before June 22, 1998,
file with the Federal Energy Regulatory Commission, 888 First Street,
N.E., 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.
David P. Boergers,
Acting Secretary.
[FR Doc. 98-14967 Filed 6-4-98; 8:45 am]
BILLING CODE 6717-01-M
