[Federal Register Volume 63, Number 45 (Monday, March 9, 1998)]
[Notices]
[Pages 11433-11434]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-5958]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. GP98-15-000]


OXY USA, Inc.; 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, OXY USA, Inc. (OXY), 
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 OKY's Kansas 
ad valorem tax refund

[[Page 11434]]

obligation to K N Interstate Gas Transmission Company (KNI), identified 
in the Statement of Refunds Due filed by KNI in Docket No. RP98-53-000. 
OXY's pleading is on file with the Commission and, except for OXY's 
confidential offer of settlement, is open to public inspection.
    OXY 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. OXY suggests that a 
Settlement Judge be appointed, that OXY's refund obligation to KNI be 
held in abeyance and that interest be tolled, on the basis that OXY 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 OXY previously collected from KNI. OXY 
further alleges that it made a settlement offer to KNI, and that KNI 
rejected that offer.
    OXY also requests a full and fair hearing, and claims that there 
are contested issues of material fact (measurable in dollars) on which 
KNI and OXY disagree. OXY further argues that these issues must be 
adjudicated. OXY's alleged issues of material fact include:
    (1) The amount of dollars of revenue OXY collected for the sale of 
its gas in each relevant time period;
    (2) How much (if any) of the dollars OXY 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 OXY 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 OXY contends will 
govern the amount of interest owned.
    OXY's pleading includes its claim that it has complied with the 
Commission's orders requiring a statement of its basic principles for 
rejecting KNI's refund claim, and OXY's priviledged and confidential 
offer of settlement to KNI (OXY's Attachment A). OXY 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 days 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 OXY's 
offer of settlement should file with the Federal Energy Regulatory 
Commission, 888 First Street, N.E., Washington, D.C. 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. 98-5958 Filed 3-6-98; 8:45 am]
BILLING CODE 6717-01-M