[Federal Register Volume 63, Number 32 (Wednesday, February 18, 1998)]
[Notices]
[Pages 8172-8173]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-4017]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. SA98-2-000]


CLX Energy, Inc.; Notice of Petition for Adjustment

February 12, 1998.
    Take notice that on February 9, 1998, CLX Energy, Inc. (CLX), 
successor in interest to Calvin Exploration, Inc. (Calvin), filed a 
petition for adjustment under section 502(c) of the Natural Gas Policy 
Act of 1978 (NGPA),\1\ requesting to be relieved of its obligation to 
refund to Panhandle Eastern Pipe Line Company (Panhandle) the Kansas ad 
valorem tax refunds owed by CLX's royalty interest, overriding royalty 
interest, and other working interest owners, otherwise required by the 
Commission's September 10, 1997 order in Docket Nos. GP97-3-000, GP97-
4-000, GP97-5-000, and RP97-369-000.\2\ CLX also requests Commission 
authorization to amortize its own refund obligtion over a 5-year 
period. CLX's petition is on file with the Commission and open to 
public inspection.
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    \1\ 15 U.S.C. Sec. 3142(c) (1982)
    \2\ See 80 FERC para. 61,264 (1997); order denying reh'g issued 
January 28, 1998, 82 FERC para. 61,058 (1998).
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    The Commission's September 10 order on remand from the D.C. Circuit 
Court of Appeals \3\ directed first sellers under the NGPA to make 
Kansas ad valorem tax refunds, with interest, for the period from 1983 
to 1988. The Commission's September 10 order also provided that first 
sellers could, with the Commission's prior approval, amortize their 
Kansas ad valorem tax refunds over a 5-year period, although interest 
would continue to accrue on any outstanding balance.
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    \3\ Public Service Company of Colorado v. FERC, 91 F.3d 1478 
(D.C. 1996), cert. denied, Nos. 94-954 and 96-1230 (65 U.S.L.W. 3751 
and 3754, May 12, 1997) (Public Service).
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    CLX states that it became successor in interest to Calvin as a 
result of a March, 1993 merger with Calvin. CLX further states that 
Panhandle made a total of $57,731.80 in Kansas ad valorem tax 
distributions to Calvin, of which $12,956.03 was distributed to Calvin 
and $38,868.10 to the other working interest owners. Royalty owners 
received $5,503.83, and overriding royalty owners received $403.84.
    CLX states that it notified the various interest owners of their 
respective refund obligations, but doubts that anyone will pay the 
specified amount by the March 9, 1998 deadline for making refunds. CLX 
also asserts that it is not in a financial position to pursue 
litigation against the other interest owners, and that paying the 
entire refund (which is approaching $200,000) would be financially 
devastating to CLX.
    CLX's petition includes a copy of Securities and Exchange 
Commission Form 10-Q for the quarter ending December 31, 1997. CLX 
argues that it would not be fair, equitable, or reasonable to require 
CLX to pay the entire refund amount when it only received the benefit 
of a small portion

[[Page 8173]]

of the total Kansas ad valorem tax reimbursements that were paid to 
Calvin by Panhandle. Therefore CLX requests: (1) to be relieved of its 
obligation to refund the Kansas ad valorem tax refunds owned by CLX's 
royalty interest, overriding royalty interest, and other working 
interest owners; and (2) Commission authorization to amortize its own 
refund obligation over a 5-year period.
    Any person desiring to be heard or to make any protest with 
reference to said petition should on or before 15 days after the date 
of publication in the Federal Register of this notice, file with the 
Federal Energy Regulatory Commission, 888 First Street, N.E., 
Washington, D.C. 20426, a motion to intervene or a protest in 
accordance with the requirements of the Commission's Rule of Practice 
and Procedure (18 CFR 394.214, 385.211, 385.1105, and 385.1106). 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 a proceeding or to participant 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. 98-4017 Filed 2-17-98; 8:45 am]
BILLING CODE 6717-01-M