[Federal Register Volume 63, Number 56 (Tuesday, March 24, 1998)]
[Notices]
[Pages 14082-14083]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-7537]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. SA98-18-000]


Riviera Drilling & Exploration Company; Notice of Petition for 
Adjustment

March 18, 1998.
    Take notice that on March 6, 1998, Riviera Drilling & Exploration 
Company (Riviera) filed a petition for adjustment under section 502(c) 
of the Natural Gas Policy Act of 1978 (NGPA),\1\ requesting to be 
relieved of its obligation to pay Kansas ad valorem tax refunds, as 
required by the Commission's September 10, 1997, order in Docket Nos. 
GP97-3-000, GP97-4-000, GP97-5-000 and RP97-369-000.\2\ Riviera's 
petition is on file with the Commission and open to public inspection.
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    \1\ 15 U.S.C. 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 under the NGPA to make 
Kansas ad valorem tax refunds, with interest, for the period from 1983 
to 1988. The Commission's September 10 order also provided that first 
sellers could, with the Commission's prior approval, amortize their 
Kansas ad valorem tax refunds over a 5-year period, although interests 
would continue to accrue on any outstanding balance.
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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) (Public Service).
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    Riviera states that in the early 1980's, its became and continues 
to be the operator of the Pope Haxelton #1-21 and Pope Adamson #1-16 
wells, located in the State of Kansas. Riviera states that these wells 
were determined to be Section 103 natural gas category wells in late 
1982. Riviera further states that in 1983, the working interest on 
these two wells was owned by R.H. Zwicky (90%), R&P Investment (5%) and 
Lavon Arbogast (5%). In 1984, the working interest was owned by R.H. 
Zwicky (67.50%), tomar, Inc. (22.50%), R&P Investment (5%) and Lavon 
Arbogast (5%). Riviera maintains that it merely remained the operator 
of the two wells and, as operator, acted as agent for all of the 
working interest and royalty interest owners. Riviera states that as 
operator, Riviera received ad valorem checks from Northern Natural Gas 
Company (Northern) on behalf of the working interest and royalty 
interest

[[Page 14083]]

owners and distributed such amounts to the working interest owners by 
crediting each owner's respective share against then existing expenses.
    Riviera states that subsequent to the September 10 order, Northern 
contacted Riviera seeking refund of $183,276.83, the entire amount of 
funds reimbursed to Riviera on behalf of the working interest and 
royalty interest owners. However, this amount was later adjusted to 
$91,931.92 to reflect the Section 103 well determination.
    Riviera asserts that while it may have received refund checks from 
Northern on behalf of the non-operators, these refunds were disbursed 
100% to the working interest and royalty interest owners. Riviera 
maintains that no such refunds were retained by Riviera.
    In view of the above, Riviera requests to be relieved of its 
obligation to make the Kansas ad valorem tax refunds to Northern 
because Riviera is not a first seller of natural gas and therefore not 
responsible for the refund obligation. In the alternative, if the 
Commission does not grant the relief requested, Riviera requests that 
it be authorized to present a full hardship argument, and as a second 
alternative, Riviera requests that it be authorized to present an 
installment period argument.
    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, 888 First Street, N.E., 
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 385.214, 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. 98-7537 Filed 3-23-98; 8:45 am]
BILLING CODE 6717-01-M