[Federal Register Volume 63, Number 57 (Wednesday, March 25, 1998)]
[Pages 14449-14450]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-7777]



Federal Energy Regulatory Commission
[Docket No. SA98-30-000]

Kaiser-Francis Oil Company; Notice of Petition for Adjustment

March 19, 1998.
    Take notice that on March 9, 1998, Kaiser-Francis Oil Company 
(Kaiser-Francis) filed a petition for adjustment under section 502(c) 
of the Natural Gas Policy Act of 1978 (NGPA),\1\ requesting that the 
refund procedures in the Commission's September 10, 1997 order in 
Docket Nos. RP97-369-000, GP97-3-000, GP97-4-000, and GP97-5-000,\2\ be 
altered with respect to Kaiser-Francis' Kansas ad valorem tax refund 

    \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-Francis requests authorization, pursuant to the Commission's 
January 28 Order, to defer payment to Williams Natural Gas Company 
(Williams) of principal and interest refunds attributable to 
unrecovered royalties for one year until March 9, 1999. In addition, 
Kaiser-Francis requests that it be allowed to place into an escrow 
account during the requested 1-year deferral period: (1) An amount 
equal to the principal and interest on royalty refunds which have not 
been recovered; (2) an amount equal to the interest on royalty refunds 
recovered (the principal of which was paid to Williams (to protect the 
interests of royalty owners); and (3) an amount equal to the interest 
on the total remaining amount of refunds allegedly due (i.e., the 
interest due on principal), excluding royalties.
    Kaiser-Francis argues that it seeks to establish these procedures 
to ensure that it pays only that which is legitimately owed, and that 
it will be able to recover the overpayment, if it is subsequently 
determined that Kaiser-Francis's refund liability was less than that 
originally claimed by Williams. Kaiser-Francis asserts that a one-year 
deferral in the obligation to make royalty refunds is necessary in 
order to allow it to confirm the appropriate refund amounts due, to 
attempt to locate the prior royalty owners, and to seek recovery of 
such amounts from the proper royalty owners.

[[Page 14450]]

    On or before March 9, 1999, Kaiser-Francis proposes to file 
documentation with the Commission, of those royalties which were not 
collectible and disburse the recovered royalty refund principal only to 
Williams. Until that time, Kaiser-Francis proposes to place the 
interest from royalty refunds which was recovered in its escrow account 
to protect the royalty owners. In addition, Kaiser-Francis argues that 
its proposal for an escrow account is necessary to protect its property 
and that of its royalty owners.
    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. 98-7777 Filed 3-24-98; 8:45 am]