[Federal Register Volume 63, Number 57 (Wednesday, March 25, 1998)]
[Notices]
[Pages 14446-14447]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-7790]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. SA98-49-000]


Graham-Michaelis Corporation; Notice of Petition for Adjustment

March 19, 1998.
    Take notice that on March 9, 1998, Applicants, Graham-Michaelis 
Corporation (GMC) and the working interest owners \1\ filed a petition 
for adjustment under section 502(c) of the Natural Gas Policy Act of 
1978 (NGPA),\2\ and an extension of time to reach agreement or a 
dispute resolution request, with respect to its Kansas ad valorem tax 
refund liability under the Commission's September 10, 1997 order in 
Docket Nos. RP97-369-000, GP97-3-000, GP97-4-000, and GP97-5-003.\3\
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    \1\ Working interest owners are W.A. Michaelis, Jr. Revocable 
Trust, John L. James Revocable Trust, George D. Rosel Estate, Aikman 
Oil & Gas Co., CEA Corp., Robert E. Aikman, William H. Aikman, Dail 
C. West, Graham Enterprises, William L. Graham Revocable Trust, 
Graham Co., H.R. Michaelis Revocable Trust, David M. Dayvault 
Revocable Trust, Jack L. Yinger Revocable Trust, K & B Producers, 
Inc., William Graham, Inc., Chas. A. Neal & Co., March Oil Co., 
Minatome Corp., Leona P. Maxfield, Lake Forest Academy, and Kaiser-
Francis Oil Co.
    \2\ 15 U.S.C. 3142(c) (1982).
    \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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    The Commission's September 10 order on remand from the D.C. Circuit 
Court of Appeals \4\ 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),\5\ 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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    \4\ 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).
    \5\ 82 FERC para.61,059 (1998).
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    GMC, on behalf of first sellers for whom it operated (Applicants), 
requests authorization, pursuant to the Commission's January 28 order, 
that the Commission: (1) Extend the time by 90 days from March 9, 1998, 
in which to reach an agreement with Northern Natural Gas Company on the 
correct amount of the potential refund liability of Applicants and 
submit any unresolved dispute to the Commission; (2) grant an 
adjustment to its procedures to allow Applicants to defer payment of 
principal and interest attributable to royalties for one year until 
March 9, 1999; and (3) grant an adjustment to the Commission's 
procedures to allow Applicants to place into an escrow account the 
amount of the refund which appears presently to be in dispute but which 
may still be resolved by agreement and (i) amounts attributable to 
royalty refunds which have not been collected from the royalty owners 
(principal and interest), (ii) principal and interest on amounts 
attributable to production prior to October 4, 1983, (iii) interest on 
royalty amounts which have been recovered from the royalty owners (the 
principal of which was refunded), and (iv) interest on all reimbursed 
principal amounts determined to be

[[Page 14447]]

refundable as being in excess of maximum lawful prices (excluding 
interest retained under (i), (ii), and (iii) above).
    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. 98-7790 Filed 3-24-98; 8:45 am]
BILLING CODE 6717-01-M