[Federal Register Volume 63, Number 45 (Monday, March 9, 1998)]
[Notices]
[Page 11430]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-5969]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. GP98-6-000]


Anadarko Petroleum 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 19, 1998, Anadarko Petroleum 
Corporation (Anadarko), 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 Anadarko's Kansas ad valorem tax refund obligation to 
Panhandle Eastern Pipe Line Company (Panhandle), identified in the 
Statement of Refunds Due filed by Panhandle in Docket No. RP98-40-000. 
Anadarko's pleading is on file with the Commission and, except for 
Anadarko's confidential offer of settlement, is open to public 
inspection.
    Anadarko 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. Anadarko suggests that a 
Settlement Judge be appointed, that Anadarko's refund obligation to 
Panhandle be held in abeyance and that interest be tolled, on the basis 
that Anadarko 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 Anadarko previously collected 
from Panhandle. Anadarko further alleges that it made a settlement 
offer to Panhandle, and that Panhandle rejected that offer.
    Anadarko also requests a full and fair hearing, and claims that 
there are contested issues of material fact (measurable in dollars) on 
which Panhandle and Anadarko disagree. Anadarko further argues that 
these issues must be adjudicated. Anadarko's alleged issues of material 
fact include:
    (1) The amount of dollars of revenue Anadarko collected for the 
sale of its gas in each relevant time period;
    (2) How much (if any) of the dollars Anadarko collected were in 
excess of the maximum lawful (MLP) in each relevant time period;
    (3) How much (if any) of the excess dollars collected by Anadarko 
were actually paid by customers of interstate pipeline 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 Anadarko contends 
will govern the amount of interest owned.
    Anadarko's pleading includes its claim that it has complied with 
the Commission's orders requiring a statement of its basic principles 
for rejecting Panhandle's refund claim, and Anadarko's privileged and 
confidential offer of settlement to Panhandle (Anadarko's Attachment 
A). Anadarko 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 
Anadarko's offer of settlement should file with the Federal Energy 
Regulatory Commission, 888 First Street, N.E., Washington, D.C. 20426, 
by March 11, 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. 98-5969 Filed 3-6-98; 8:45 am]
BILLING CODE 6717-01-M