[Federal Register Volume 62, Number 127 (Wednesday, July 2, 1997)]
[Notices]
[Pages 35797-35798]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-17322]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. GP97-4-000]


Kansas Small Producer Group; Notice of Petition for Adjustment

June 26, 1997.
    Take notice that on June 24, 1997, the Kansas Small Producer Group 
\1\ (Producers) filed a petition for adjustment under Section 502c of 
the Natural Gas Policy Act of 1978 (NGPA) and Rules 1101-1107 of the 
Commission's Rules of Practice and Procedure, requesting an adjustment 
to Producers' potential liability to pay refunds and interest that 
Producers may be directed to make with respect to gas production 
between October 4, 1983 and June 28, 1988, owing to Producers' 
collection of Kansas ad valorem tax reimbursements from gas purchasers 
that have since been deemed to be in excess of the NGPA's applicable 
maximum lawful gas prices, all as more fully set forth in the subject 
petition, which is on file with the Commission and available for public 
inspection.
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    \1\ The Kansas Small Producer Group includes the following 
companies and individuals: William Graham, Inc.; William L. Graham, 
Jr.; Graham Petroleum, Inc.; William L. Graham Revocable Trust; 
Betty H. Graham Revocable Trust; Graham Co.; Graham Enterprises; 
March Oil Co.; Graham-Michaelis Corp.; W.A. Michaelis, Jr. Revocable 
Trust; H.R. Michaelis Revocable Trust; Kansas Petroleum, Inc.; James 
Tasheff; Mary Tasheff; James Rhude; Rude & Fryberger, Inc.; E.N. 
Diderich Trust; John W. LeBosquet; H.M. Gillespie; Lester Wilkonson; 
Arthur O. Wilkonson; The Tress Oil Co.; Dorchester Hugoton, Ltd.; 
and Ensign Oil & Gas Inc.
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    This matter evolved out of the Commission's 1974 decision in 
Opinion No. 699-D, to permit gas producers to recover Kansas ad valorem 
tax reimbursements from their gas purchasers, the Commission's 
subsequent decision to allow gas producers to collect Kansas ad valorem 
tax reimbursements under Section 110 of the NGPA, and Northern Natural 
Gas Company's 1983 challenge to such collections,\2\ culminating in the 
decision by the United States Court of Appeals for the District of 
Columbia Circuit, in Public Service Company of Colorado v. FERC, 91 
F.3d 1478 (D.C. Cir. 1996), that refunds should be paid with respect to 
Kansas ad valorem tax reimbursements on production between October 4, 
1983 and June 28, 1988, and the Supreme Court's denial of cross-
petitions for certiorari, filed in connection with the D.C. Circuit's

[[Page 35798]]

decision in Public Service Company of Colorado v. FERC.,
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    \2\ See 48 FR 45287 (October 4, 1983).
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    Producers assert that the Commission has broad discretion in 
structuring remedies and in determining whether refunds and/or interest 
are appropriate where excess payments were made, and that the 
Commission has the authority to grant relief from refund principal and 
interest. Producers also assert, for various reasons, that the 
Commission should grant at least a limited waiver of refund principal, 
plus a total waiver of the interest otherwise due on refunds, for the 
1983 to 1988 period. Producers further assert that the Commission 
should grant refund relief where the royalty portion of the refunds due 
is unrecoverable or de minimus, or where the original customers that 
paid the ad valorem tax reimbursements cannot be located.
    Any person desiring to participate in this proceeding must file a 
motion to intervene in accordance with Sections 385.211 and 385.214 of 
the Commission's Rules of Practice and Procedures. All motions must be 
filed with the Secretary of the Commission by July 7, 1997.
Lois D. Cashell,
Secretary.
[FR Doc. 97-17322 Filed 7-1-97; 8:45 am]
BILLING CODE 6717-01-M