[Federal Register Volume 63, Number 45 (Monday, March 9, 1998)]
[Notices]
[Pages 11432-11433]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-5956]


-----------------------------------------------------------------------

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. GP98-13-000]


Mobil Oil Corporation; Notice of Offer of Settlement and Call for 
the Protection of Rights Pending Adjudication or Settlement

March 3, 1998.
    Take notice that on February 24, 1998, Mobil Oil Corporation 
(Mobil), alleging compliance with the Commission's January 28, 1998 
Order Clarifying Procedures (82 FERC para. 61,059), filed an offer of 
settlement with the Commission, and called for the protection of its 
rights pending adjudication or settlement, with respect to Mobil's 
Kansas ad valorem tax refund obligation to Williams Gas Pipelines 
Central, Inc., formerly: Williams Natural Gas Company (Williams), 
identified in the State of Refunds Due filed by Williams in Docket No 
RP98-52-000. Mobil's pleading is on file with the Commission and, 
except for Mobil's confidential offer of settlement, is open to public 
inspection.
    Mobil contends that the Commission has established a procedure to 
follow, under 18 CFR 385.602 of the Commission's regulations, when 
informal settlement or reconciliation efforts fail, and that it has 
complied with the requisites of that Section. Mobil suggests that a 
Settlement Judge be appointed, that Mobil's refund obligation to 
Williams be held in abeyance and that interest be tolled, on the basis 
that Mobil has a constitutional and statutory right to a hearing before 
it may be deprived of property i.e., the 1983-1988 Kansas ad valorem 
tax reimbursement dollars that Mobil previously collected from 
Williams. Mobil further alleges that it made a settlement offer to 
Williams, and that Williams rejected that offer.
    Mobil also requests a full and fair hearing, and claims that there 
are contested issues of material fact (measurable in dollars) on which 
Williams and Mobil disagree. Mobil further argues that these issues 
must be adjudicated. Mobil's alleged issues of material fact include:

[[Page 11433]]

    (1) The amount of dollars of revenue Mobil collected for the sale 
of its gas in each relevant time period;
    (2) How much (if any) of the dollars Mobil collected were in excess 
of the maximum lawful price (MLP) in each relevant time period;
    (3) How much (if any) of the excess dollars collected by Mobil were 
actually paid by customers of interstate pipelines through the 
pipeline's PGA process, i.e., how much were the pipeline's customers 
overcharged; and
    (4) Assuming that part of the refund amount is interest, then when 
did the interstate pipeline customers begin paying a fraction of the 
amounts determined to be in excess of the MLP, which Mobil contends 
will govern the amount of interest owned.
    Mobil's pleading includes its claim that it has complied with the 
Commission's orders requiring a statement of its basic principles for 
rejecting Williams' refund claim, and Mobil's privileged and 
confidential offer of settlement to Williams (Mobil's Attachment A). 
Mobil also provides its own assessment as to how to compute the correct 
refund amount.
    The procedural rules governing settlements are set forth in Section 
385.602 of the Commission's Rules of Practice and Procedure. Under 
Section 385.602(f), any person wishing to make comments with respect to 
an offer of settlement must do so not later than 20 day after the date 
the settlement offer was filed. Reply comments must be filed not later 
than 30 days after the date the settlement offer was filed. 
Accordingly, any person desiring to file comments with respect to 
Mobil's offer of settlement should file with the Federal Energy 
Regulatory Commission, 888 First Street, NE., Washington, DC 20426, by 
March 16, 1998, in accordance with the requirements of the Commission's 
Rules of Practice and Procedure [18 CFR 385.602(f)].
David P. Boergers,
Acting Secretary.
[FR Doc. 98-5956 Filed 3-6-98; 8:45 am]
BILLING CODE 6717-01-M