[Federal Register Volume 63, Number 54 (Friday, March 20, 1998)]
[Notices]
[Page 13647]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-7263]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. SA98-10-000]


Helmerich & Payne, Inc.; Notice of Petition for Adjustment

March 16, 1998.
    Take notice that on March 3, 1998, Helmerich & Payne, Inc. (H&P), 
filed a petition, pursuant to section 502(c) of the Natural Gas Policy 
Act of 1978 (NGPA), for an adjustment of the Commission's refund 
procedures [15 U.S.C. 3142(c) (1982)] with respect to H&P's Kansas ad 
valorem tax refund liability.
    The Commission's September 10, 1997 order on remand from the D.C. 
Circuit Court of Appeals,\1\ in Docket No. RP97-369-000 et al.,\2\ 
directed first sellers to make Kansas ad valorem tax refunds, with 
interest, for the period from 1983 to 1988. The Commission clarified 
the refund procedures in its Order Clarifying Procedures [82 FERC para. 
61,059 (1998)], stating therein that producers [first sellers] could 
request additional time to establish the uncollectability of royalty 
refunds, and that first sellers 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 their individual 
circumstances.
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    \1\ 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).
    \2\ See 890 FERC para.61,264 (1997); order denying reh'g issued 
January 28, 1998, 82 FERC para.61,058 (1998).
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    H&P requests a 1-year deferral of payment, to the relevant 
Pipelines [Northern Natural Gas Company, Panhandle Eastern Pipe Line 
Company, KN Interstate Gas Transmission Company, and Colorado 
Interstate Gas Company], of the principal and interest refunds 
attributable to royalties until March 9, 1999. In addition, H&P 
requests that it be allowed to place into an escrow account certain 
portions of the remaining refunds allegedly due to Pipelines. H&P 
asserts that these procedures are needed to ensure that it pays only 
that which is legitimately owed, and to ensure that it can recover the 
overpayment, if it is subsequently determined that its refund liability 
was less than that originally claimed by the Pipelines. H&P states that 
a 1-year deferral in the obligation to make royalty refunds is 
necessary in order to allow it to confirm the refund amounts due, to 
locate the prior royalty owners, and to seek recovery of such amounts 
from the proper royalty owners.
    On or before March 9, 1999, H&P proposes to file with the 
Commission documentation of those royalties which were not collectible 
and disburse to Pipelines those royalty refunds which were recovered 
(principal only), except for refunds attributable to pre-October 3, 
1983, production. At that time, H&P proposes to place the interest from 
royalty refunds which was recovered in its escrow account to protect 
the royalty owners. In addition, H&P asserts that its proposal for an 
escrow account is necessary to protect its property and that of its 
royalty owners. H&P also proposes to place the following amounts into 
that escrow account:
    (1) The principal amount of refunds and interest thereon 
attributable to royalty refunds (during the 1-year deferral period);
    (2) The principal and interest amount of refunds attributable to 
production prior to October 3, 1983 (excluding royalties attributable 
thereto during the 1-year deferral period); and
    (3) The interest due on principal refunds other than royalty 
refunds (during the 1-year deferral period) and pre-October 3, 1983, 
production refunds.
    H&P requests the 1-year deferral and the authorization to place 
such monies into an escrow account pursuant to the Commission's January 
28, 1998, Order Clarifying Procedures.
    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. 98-7263 Filed 3-19-98; 8:45 am]
BILLING CODE 6717-01-M