[Federal Register Volume 63, Number 47 (Wednesday, March 11, 1998)]
[Notices]
[Pages 11880-11881]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-6238]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. SA98-7-000]


Dorchester Hugoton, Ltd.; Notice of Petition for Adjustment

March 5, 1998.
    Take notice that on March 2, 1998, Dorchester Hugoton, Ltd. 
(Dorchester), filed a petition for adjustment under section 502(c) of 
the Natural Gas Policy Act of 1978 (NGPA),\1\ requesting that the 
refund procedures in the Commission's September 10, 1997 Order in 
Docket Nos. RP97-369-000, GP97-3-000, GP97-4-000, and GP97-5-000,\2\ be 
altered with respect to Dorchester's Kansas and valorem tax refund 
liability.
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    \1\ 15 U.S.C. Sec. 3142(c) (1982).
    \2\ See 80 FERC para. 61,264 (1997); order denying reh'g issued 
January 28, 1998, 82 FERC para. 61,058 (1998).
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    The Commission's September 10 order on remand from the D.C. Circuit 
Court of Appeals \3\ directed first sellers

[[Page 11881]]

under the NGPA to make Kansas ad valorem tax refunds, with interest, 
for the period from 1983 to 1988. The Commission issued a January 28, 
1998 Order in Docket No. RP98-39-001, et al. (January 28 Order),\4\ 
clarifying the refund procedures, stating that producers could request 
additional time to establish the uncollectability of royalty refunds, 
and that first seller may file requests for NGPA Section 502(c) 
adjustment relief from the refund requirement and the timing and 
procedures for implementing the refunds, based on the individual 
circumstances applicable to each first seller.
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    \3\ Public Service Company of Colorado v. FERC, 91 F.3d 1478 
(D.C. 1996), cert. denied, Nos. 96-954 and 96-1230 (65 U.S.L.W. 3751 
and 3754, May 12, 1997).
    \4\ 82 FERC para. 61,059 (1998).
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    Dorchester requests authorization, pursuant to the Commission's 
January 28 Order, to defer payment to Panhandle Eastern Pipe Line 
Company (Panhandle) of principal and interest refunds attributable to 
unrecovered royalties for one year until March 9, 1999. In addition, 
Dorchester requests that it be allowed to place into an escrow account 
during the requested 1-year deferral period: (1) An amount equal to the 
principal and interest on royalty refunds which have not been recovered 
as of February 27, 1998 (to curtail the level of interest); (2) an 
amount equal to the interest on royalty refunds recovered after 
February 27, 1998, where the principal of that royalty refund is paid 
to Panhandle, except for pre-October 3, 1983 production (to protect the 
interests of royalty owners); (3) an amount equal to the principal and 
interest attributable to production prior to October 3, 1983, excluding 
uncollected royalties attributable thereto (to protect Dorchester's and 
the royalty owners' property rights pending judicial review); and (4) 
an amount equal to the interest on the total remaining amount of 
refunds allegedly due (i.e., the interest due on principal), excluding 
royalties and pre-October 3, 1983, production (to protect Dorchester's 
property rights pending judicial review and potential legislative 
action).
    Dorchester argues that it seeks to establish these procedures to 
ensure that it pays only that which is legitimately owed, and that it 
will be able to recover the overpayment, if it is subsequently 
determined that Dorchester's refund liability was less than the 
originally claimed by Panhandle. Dorchester asserts that a one-year 
deferral in the obligation to make royalty refunds is necessary in 
order to allow it to confirm the appropriate refund amounts due, to 
attempt to locate the prior royalty owners, and to seek recovery of 
such amounts from the proper royalty owners.
    On or before March 9, 1999, Dorchester proposes to file 
documentation with the Commission, of those royalties which were not 
collectible and disburse the recovered royalty refund principal to 
Panhandle, except for refunds attributable to pre-October 3, 1983, 
production. Until that time, Dorchester proposes to place the interest 
from royalty refunds which was recovered in its escrow account to 
protect the royalty owners. In addition, Dorchester argues that its 
proposal for an escrow account is necessary to protect its property and 
that of its royalty owners.
    Any person desiring to be heard or to make any protest with 
reference to said petition should on or before 15 days after the date 
of publication in the Federal Register of this notice, file with the 
Federal Energy Regulatory Commission, Washington, D.C. 20426, a motion 
to intervene or a protest in accordance with the requirements of the 
Commission's Rules of Practice and Procedure (18 CFR 384.214, 385.211, 
385.1105, and 385.1106). All protests filed with the Commission will be 
considered by it in determining the appropriate action to be taken but 
will not serve to make the protestants parties to the proceeding. Any 
person wishing to become a party to a proceeding or to participate as a 
party in any hearing therein must file a motion to intervene in 
accordance with the Commission's Rules.
David P. Boergers,
Acting Secretary.
[FR Doc. 98-6238 Filed 3-10-98; 8:45 am]
BILLING CODE 6717-01-M