[Federal Register Volume 63, Number 56 (Tuesday, March 24, 1998)]
[Notices]
[Page 14083]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-7538]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. SA98-19-000]


Dale Schwarzhoff; Notice of Petition for Adjustment

March 18, 1998.
    Take notice that on March 9, 1998, Dale Schwarzhoff (Schwarzhoff) 
filed a petition for adjustment under section 502(c) of the Natural Gas 
Policy Act of 1978 (NGPA),\1\ requesting a 90-day extension to allow 
Schwarzhoff and Williams Natural Gas Company (WNG) to resolve any 
dispute as to the proper amount of the refund liability of Schwarzhoff 
for the 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\ and set forth in the Statement of Refunds 
Due (SRD) addressed to Benson Mineral Group, Inc. (BMG), the operator, 
or to submit such dispute to FERC for resolution if the parties cannot 
resolve it within such time, and (2) in order to stop the accrual of 
interest pending resolution of disputes and legal issues, grant an 
adjustment to its procedures to allow Schwarzhoff to place into an 
escrow account not only any disputed amount of the refund amount, but 
also principal and interest on amounts attributable to production prior 
to October 4, 1983, and interest on all other amounts claimed to be due 
under the SRD. Schwarzhoff'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 interest 
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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    It is stated that the SRD submitted to BMG includes tax 
reimbursements in the amount of $49,243.49, for the Barngrover #1-#3 
well. Schwarzhoff states that this well is classified as a Section 102 
well under the NGPA, which was deregulated as of January 1, 1985. 
Schwarzhoff further states that it disputes the obligation to refund 
the tax reimbursements paid by WNG and received by BMG in 1985 and 1986 
attributable to the Barngrover #1-#3 well that had been deregulated by 
that time and for which there was no maximum lawful price. In order to 
stop the continued accrual of interest; however, pending resolution of 
disputes and legal issues, Schwarzhoff states that it will place in 
escrow the amount of $503.65, representing what Schwarzhoff believes in 
good faith, after an exhaustive review of the prices received, to be 
the greatest potential liability attributable to the working interest 
of Schwarzhoff claimed under the SRD. Alternatively, if retaining these 
funds in escrow is not permitted, Schwarzhoff requests that WNG be 
required to repay to Schwarzhoff, with interest, any of the amounts 
paid to WNG from escrow which subsequently are determined not to have 
been a part of Schwarzhoff's refund obligation.
    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. 98-7538 Filed 3-23-98; 8:45 am]
BILLING CODE 6717-01-M