[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]


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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.
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    \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.
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    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