[Federal Register Volume 63, Number 57 (Wednesday, March 25, 1998)]
[Notices]
[Pages 14448-14449]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-7776]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. SA98-28-000]


Kaiser-Francis Oil Company; Notice of Petition for Adjustment

March 19, 1998.
    Take notice that on March 9, 1998, Kaiser-Francis Oil Company 
(Kaiser) filed a petition for adjustment under section 502(c) of the 
Natural Gas Policy act of 1978 (NGPA),\1\ requesting a one-year 
extension of the deadline for making refunds as to royalties and 
requesting that the Commission grant a procedural adjustment to allow 
it to

[[Page 14449]]

place into an escrow account the interest on the total principle amount 
attributable to Kaiser's working interest. The March 9, 1998, deadline 
was established for first sellers to remit refunds of Kansas ad valorem 
taxes to their pipeline purchasers, 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\ Kaiser'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 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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    Kaiser states it is substantially and adversely affected by the 
potential Kansas ad valorem tax refund requirement. Kaiser is not 
seeking to relieve itself of that refund obligation. Rather Kaiser 
seeks to establish procedures which ensure: (a) That it pays only that 
which is legitimately owed; and (b) that if it is subsequently 
determined that its refund liability was less than that originally 
claimed by Anadarko Petroleum Company (Anadarko) in Docket No. RP98-43-
000, it can recover the overpayment. Accordingly, Kaiser requests an 
adjustment to the general refund procedures to permit it to pay the 
following amount into an escrow account: the interest on the principal 
amount attributable to Kaiser's working interest, totaling $19,816.78.
    Kaiser states that although there are issues relating to portions 
of the principal refunds which are pending before the court,\5\ to 
demonstrate its good faith in these proceedings Kaiser has paid the 
principal amount of refunds attributable to Kaiser's working interest 
in the amount of $10,169.99 to Anadarko. Should the Commission provide 
assurances that Kaiser will be able to recover any overpayments without 
having to initiate a prompt return of refund amounts determined not to 
be due (such return of refunds not dependent upon recovery from 
consumers), Kaiser would agree to waive this request for escrowing 
certain monies. Without such assurances, Kaiser is entitled to have its 
property protested until the issue of liability has been fully resolved 
in Court or Congress.
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    \5\ See, Case No. 98-60043, Untied States Court of Appeals for 
the Fifth Circuit in Anadarko Petroleum Corp. v. FERC, and Union 
Pacific Resources Company v. FERC.
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    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. 98-7776 Filed 3-24-98; 8:45 am]
BILLING CODE 6717-01-M