[Federal Register Volume 63, Number 45 (Monday, March 9, 1998)]
[Notices]
[Page 11433]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-5968]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. GP98-5-000]


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 20, 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 Northern Natural Gas Company 
(Northern Natural), identified in the Statement of Refunds Due filed by 
Northern Natural in Docket No. RP98-39-000. 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 
Northern Natural 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 form Northern Natural. Mobil further alleges that it made a 
settlement offer to Northern Natural, and that Northern Natural 
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 
Northern Natural and Mobil disagree. Mobil further argues that these 
issues must be adjudicated. Mobil's alleged issues of material fact 
include:
    (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 Northern Natural's refund claim, and Mobil's privileged and 
confidential offer of settlement to Northern Natural (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 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 
Mobil's offer of settlement should file with the Federal Energy 
Regulatory Commission, 888 First Street, N.E., Washington, D.C. 20426, 
by March 12, 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. 98-5968 Filed 3-6-98; 8:45 am]
BILLING CODE 6717-01-M