[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] ----------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \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). --------------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \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). --------------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \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. --------------------------------------------------------------------------- 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