[Federal Register Volume 63, Number 59 (Friday, March 27, 1998)]
[Notices]
[Page 14915]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-8012]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. SA98-64-000]


R.J. Patrick Operating Company; Notice of Petition for Adjustment

March 23, 1998.
    Take notice that on March 10, 1998, R.J. Patrick Operating Company 
(Patrick Operating Company), 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 pay Kansas ad valorem 
tax refunds, as required by the Commission's September 10, 1997, order 
in Docket Nos. GP97-3-000, GP97-4-000, GP97-5-000 and RP97-369-000,\2\ 
and as set forth in the Statement of Refunds Due (SRD) received from 
Northern Natural Gas Company. Patrick Operating Company'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 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 \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's September 10, order also provided that first 
sellers could, with the Commission's prior approval, amortize their 
Kansas ad valorem tax refunds over a 5-year period, although interest 
would continue to accrue on any outstanding balance.
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    \3\ Public Service Company of Colorado v. FERC, 91 F.3d 1478 
(D.C. 1986), cert. denied, Nos. 96-954 and 96-1230 (65 U.S.L.W. 3751 
and 3754, May 12, 1997) (Public Service).
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    Patrick Operating Company states that the SRD, as subsequently 
revised, seeks refund in the amount of $323,669.97, including interest, 
for 8 Western Kansas wells, namely, the Lemert #2, R. Baker #1, Wimmer 
1, 3, and 4, Ora Baker #2, and the Ora Baker #1 and #3. Patrick 
Operating Company also states that the Ora Baker #1, determined to be a 
Section 102 well, was deregulated January 1, 1985. Patrick Operating 
Company further states that during the period involved from 1983 
through June 1987, these were very low-volume wells.
    Patrick Operating Company states that since the wells were 
producing 12 Mcf per day or less, all of the wells, except the Lemert, 
were sold February 1, 1995. Patrick Operating Company further states 
that the Lemert #2 was then sold in February 1992, at which time it was 
also producing about 12 Mcf per day.
    It is stated that the R.J. Operating Company presently operates 20 
wells, of which Mr. and Mrs. R.J. Patrick own 5 of the wells. It is 
stated that these wells are owned by a number of people, many of whom 
do not have great financial resources. It is stated that it would take 
considerable time to recover the reimbursement amount even from other 
production. The Patrick Operating Company states that although each 
working interest owner is liable for his own share of any refund; 
Patrick Operating Company is requesting that since the 8 wells were 
only marginally economical to produce, that Mr. Patrick and all other 
working interest owners be relieved of any refund obligation because of 
the great financial hardship that would occur.
    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 285.1106). 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. 98-8012 Filed 3-26-98; 8:45 am]
BILLING CODE 6717-01-M