[Federal Register Volume 63, Number 45 (Monday, March 9, 1998)]
[Notices]
[Pages 11435-11436]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-5971]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. GP98-8-000]


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 23, 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 OXY'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. 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 Northern 
Natural 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 Northern 
Natural. OXY further alleges that it made a settlement offer to 
Northern Natural, and that Northern Natural 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 
Northern Natural 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 Northern Natural's refund claim, and OXY's privileged and 
confidential offer of settlement to Northern Natural (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

[[Page 11436]]

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. 98-5971 Filed 3-6-98; 8:45 am]
BILLING CODE 6717-01-M