[Federal Register Volume 63, Number 57 (Wednesday, March 25, 1998)]
[Notices]
[Pages 14454-14455]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-7787]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. SA98-46-000]


Quinque Operating Company; Notice of Petition for Adjustment

March 19, 1998.
    Take notice that on March 9, 1998, Quinque Operating Company 
(Quinque) and certain working interest owners (First Sellers)\1\ for 
whom it operated, filed a petition, pursuant to section 502(c) of the 
Natural Gas Policy Act of 1978 (NGPA), for an adjustment of the 
Commission's refund procedures [15 U.S.C. 3142(c) (1982)] with respect 
to Quinque's Kansas ad valorem tax refund liability. Quinque's petition 
is on file with the Commission and open to public inspection.
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    \1\ First Sellers are Quinque Oil & Gas Producing Co.; Jane 
Moore; Margaret C. Moore; Penny Moore; David O. Wilson; Pete Balog; 
Robert Hatcher Estate; Clarence and Margaret Hoeme; George Thomas 
Estate; LewJac Company (LewJac Company's interest now owned by 
Estate of Jack Engle); Lyle Pringle Estate; Winifred Pringle; F.L. 
Shogrin; C. Dale Stromquist; Benjamin and Margaret Zane; and Jack 
and Edna Walker.
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    The Commission's September 10 order on remand from the D.C. Circuit 
Court of Appeals,\2\ in Docket No. RP97-369-000, et al.,\3\ directed 
first sellers to make Kansas ad valorem tax refunds, with interest, for 
the period from 1983 to 1988. The Commission clarified the refund 
procedures in its Order Clarifying Procedures [82 FERC para. 61,059 
(1998)], stating therein that producers (first sellers) could request 
additional time to establish the uncollectability of royalty refunds, 
and that first sellers 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 their individual 
circumstances.
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    \2\ Public Service Company of Colorado v. FERC, 91 F.3d 1478 
(D.C. Cir. 1996), cert. denied, 65 U.S.L.W. 3751 and 3754 (May 12, 
1997) (Nos. 96-954 and 96-1230).
    \3\ 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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    Quinque requests that the Commission: (1) Grant a 90 day extension 
to allow First Sellers and Colorado Interstate Gas Company (CIG) to 
resolve any dispute as to the proper amount of the refund liability of 
First Sellers for the Kansas ad valorem tax reimbursements set forth in 
the Statement of Refunds Due (SRD), filed in Docket No. RP98-54-000, 
and to make refunds or to submit such dispute to FERC for resolution if 
the parties cannot resolve it within such time, and

[[Page 14455]]

(2) in order to stop the accrual of interest pending resolution of 
disputes and legal issues, grant an adjustment to its procedures to 
allow First Sellers to place into escrow account not only any disputed 
amount of the refund but also (a) principal and interest on amounts of 
tax reimbursements received in years after the subject well was 
deregulated, and (b) principal and interest on amounts attributable to 
production prior to October 4, 1983.
    First Sellers also request an order for reimbursement of the 1984 
tax refund First Sellers have made to CIG to the extent any part of it 
is hereafter deemed to be attributable to production prior to October 
4, 1983. Quinque also requests that it be determined that it was not a 
working interest owner or First Seller of any of the production with 
respect to which the tax reimbursements were made and that it therefore 
has no liability under the SRD.
    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. 98-7787 Filed 3-24-98; 8:45 am]
BILLING CODE 6717-01-M