[Federal Register Volume 63, Number 58 (Thursday, March 26, 1998)]
[Notices]
[Pages 14694-14695]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-7850]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. SA98-34-000]


McCoy Petroleum Corporation; Notice of Petition for Adjustment

March 20, 1998.
    Take notice that on March 9, 1998, McCoy Petroleum Corporation 
(McCoy), filed a petition for adjustment under section 502(c) of the 
Natural Gas Policy Act of 1978 (NGPA),\1\ requesting to be relieved of 
its obligation to refund to The Williams Companies, Inc., (Williams) 
the Kansas ad valorem tax refunds owned by three of the working 
interest owners in a well located in Barber County, Kansas, otherwise 
required by the Commission's September 10, 1997 order (September 10 
order) in Docket Nos. RP97-369-000, GP97-3-000, GP97-4-000, and GP97-5-
000.\2\ McCoy's petition is on file with the Commission and open to 
public inspection.
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    \1\ 15 U.S.C. 3142(c) (1982).
    \2\ See 80 FERC para. 61,264 (1997); order denying reh'g 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 \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 clarified the refund procedures in an order 
issued January 28, 1998, in Docket No. RP98-39-001, et al.,\4\ 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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    \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) (Public Service).
    \4\ See Order Clarifying Procedures 82 FERC para. 61,059 (1998).
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    McCoy states that it was and is the operator of the Wortman #1 
Lease and the Reed #1 Lease located in Barber County, Kansas. McCoy 
claims that no portion of the ad valorem tax attributable to the 
royalty interest in these leases was ever collected by McCoy and is not 
pertinent to this proceeding. McCoy also states that three of the 
working interest owners in the Reed #1-23 Well were National Oil 
Company (National), K & E Drilling Company (K&E), and Christina Sollars 
(Sollars). McCoy explains that since payment of the reimbursement of 
the ad valorem taxes to National and Sollars, they have both declared 
bankruptcy. McCoy states that several years ago K & E sold all of its 
assets and the company is no longer in business. McCoy indicates that 
the principal and attributable to National is $1550.88, the amount of 
the principal and attributable to K&E is $620.35, and the amount of 
principal attributable to Sollars is $48.46 for a total of $2,219.69.
    McCoy asserts that the claims against Nation and Sollars by McCoy 
are uncollectable by virtue of the federal bankruptcy law. McCoy also 
asserts that the Kansas statutes relating to the liabilities of a 
dissolved corporation provide that successors in interest to K&E have 
no obligation at this time to pay to Williams any Kansas ad valorem tax 
reimbursement that may have been received by the corporation during the 
subject period. McCoy further states that the balance of the claim made 
by Williams against McCoy is being remitted under protest, with all 
rights reserved, to Williams on behalf of McCoy and the other working 
interest owners in the two subject leases.
    In support of its request for a staff adjustment, McCoy states that 
it does not have an ongoing contractual relationship with these three 
working interest owners which would permit McCoy to collect the subject 
refunds through billing adjustments. McCoy asserts that therefore the 
alleged refunds as to these three working interest owners should be 
deemed to be uncollectible and the Commission should waive the 
obligation of McCoy to make payment of the same. McCoy requests that 
the Commission grant McCoy staff adjustment in the amount $2,219.69 for 
taxes and interest as of December 31, 1997, in connection with the 
Statement of Refunds Due submitted to it on November 10, 1997, by 
Williams.
    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 to protestants parties to the proceeding. Any person wishing

[[Page 14695]]

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. 98-7850 Filed 3-25-98; 8:45 am]
BILLING CODE 6717-01-M