[Federal Register Volume 63, Number 60 (Monday, March 30, 1998)]
[Notices]
[Page 15189]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-8167]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. SA98-63-000]


Mull Drilling Company, Inc.; Notice of Petition for Adjustment

March 24, 1998.
    Take notice that on March 10, 1998, Mull Drilling Company, Inc. 
(MDC), filed a petition for adjustment under section 502(c) of the 
Natural Gas Policy Act of 1978 (NGPA) [15 U.S.C. Sec. 3142(c) (1982)], 
requesting an order from the Commission determining: (1) that MDC is 
only responsible for Kansas ad valorem tax refund amounts attributable 
to its working interest; (2) that the payment of Kansas ad valorem tax 
refunds will create a financial hardship for MDC and, therefore, that 
MDC should be permitted to amortize its refunds over a reasonable 
period of time; and (3) that MDC's liability for Kansas ad valorem tax 
refunds attributable to the Doggett oil and gas lease (Doggett) should 
be waived, on the basis that MDC has no ability to recoup any refunds 
from that lease. Absent adjustment relief, the Kansas ad valorem tax 
refunds are required by the Commission's September 10, 1997 order in 
Docket No. RP97-369-000 et al.\1\ MDC's petition is on file with the 
Commission and open to public inspection.
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    \1\ 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 \2\ directed first sellers to make Kansas ad valorem 
tax refunds, with interest, for the period from 1983 to 1988. That 
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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    \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) (Public Service).
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    MDC states that it was a party to certain gas purchase contracts 
entered into with Panhandle Eastern Pipe Line Company (Panhandle). MDC 
explains that, as the operator, of the leases dedicated under those 
contracts, MDC acted on behalf of itself and, in some cases, third-
party working interest owners. MDC adds that it passed along the funds, 
including the Kansas ad valorem tax reimbursement funds, to the other 
working interest owners, and only retained those funds attributable to 
its own working interest.
    MDC indicates its intent to tender the undisputed principal amount 
to Panhandle and to place the remaining funds in an escrow account. MDC 
states that it was established as an operating company, and that it has 
limited liquid assets to satisfy these claimed amounts. MDC avers that 
the payment of amount in dispute to Panhandle, and deposit of the 
remaining amount into escrow as related to MDC's working interest 
ownership, creates a profound hardship for MDC. Additionally, MDC 
request that the refund attributable to the Doggett lease be waived, 
since MDC states that it has no ability to recoup any of the amounts 
claimed as refunds from future production for the Doggett lease, 
because that lease has been abandoned and is no longer operated by MDC.
    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, NE., 
Washington, DC 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 be 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. 98-8167 Filed 3-27-98; 8:45 am]
BILLING CODE 6717-01-M