[Federal Register Volume 63, Number 57 (Wednesday, March 25, 1998)]
[Page 14450]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-7792]



Federal Energy Regulatory Commission
[Docket No. SA98-51-000]

Kansas Petroleum, Inc.; Notice of Petition for Adjustment

March 19, 1998.
    Take notice that on March 9, 1998, Kansas Petroleum, Inc. (KPI), 
James E. Rhude, E.N. Diderich Trust, and Rhude & Fryberger, Inc., 
collectively referred to as Applicants, filed a petition for adjustment 
under section 502(c) of the Natural Gas Policy Act of 1978 (NGPA), 
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,\1\ be altered with respect to Applicant's Kansas ad valorem 
tax refund liability.

    \1\ 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 \2\ directed first sellers under the NPGA 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),\3\ clarifying the refund 
procedures, stating that producers 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 the individual circumstances 
applicable to each first seller.

    \2\ 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).
    \3\ 82 FERC para. 61,059 (1998).

    Applicants request that the Commission pursuant to the Commission's 
January 28 order, (1) grant an extension of 60 days to make refunds to 
allow Applicants and Colorado Interstate Gas Company (CIG) to reach an 
agreement of the correct amount of the potential refund liability of 
Applicants and submit any unresolved dispute to the Commission; (2) to 
grant an adjustment to its procedures to allow to defer payment to CIG 
of principal and interest refunds attributable to royalties for one 
year until March, 9, 1999, and (3) to grant adjustment to its 
procedures to allow Applicants to place into an escrow account during 
the requested 1-year deferral period the amount of the refund which is 
in dispute if there is a dispute and also (i) an amount equal to the 
royalty refunds which have not been collected from 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 
(principal of which was refunded) and (iv) interest on all reimbursed 
principal amounts determined to be refundable as being in excess of 
maximum lawful prices (excluding interest retained under (i), (ii), and 
(iii) above.
    Applicants also request that, if retaining these funds in escrow is 
not permitted, the Commission adopt other procedures requiring CIG to 
repay to Applicants, with interest, any of the amounts paid to them 
from escrow which subsequently are determined to have been a part of 
their refund obligation.
    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. 98-7792 Filed 3-24-98; 8:45 am]