[Federal Register Volume 63, Number 60 (Monday, March 30, 1998)]
[Page 15186]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-8171]



Federal Energy Regulatory Commission
[Docket No. SA98-71-000]

Graham-Michaelis Corporation; Notice of Petition for Adjustment 
and Request for Extension of Time

March 24, 1998.
    Take notice that on March 10, 1998, as supplemented on March 13, 
1998, the Graham-Michaelis Corporation on behalf of the working 
interest owners for whom it operated leases (GMC and owners), filed a 
petition, pursuant to section 502(c) of the Natural Gas Policy Act of 
1978 (NGPA), for an adjustment of the Commission's refund procedures 
[15 U.S.C. Sec. 3142(c) (1982)] with respect to the Kansas ad valorem 
tax refund liability. GMC and owners' petition is on file with the 
Commission and open to public inspection.
    The Commission's September 10, 1997, order on remand from the D.C. 
Circuit Court of Appeals,\1\ in Docket No. RP97-369-000, et al.,\2\ 
directed first sellers to make Kansas ad valorem tax refunds, with 
interest, for the period from 1983 to 1988. The Commission clarified 
the refund procedures in its Order Clarifying Procedures [82 FERC para. 
61,059 (1988)], 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 

    \1\ Public Service Company of Colorado v. FERC, 91 F.3d 1478 
(D.C. Cir. 1996), cert. denied, 65 U.S.L.W. 3751 and 3754 (May 12, 
1997) (Nos. 96-954 and 96-1230).
    \2\ See 80 FERC para. 61,264 (1997); order denying reh'g, 82 
FERC para. 61,058 (1998).

    GMC and owners request an extension of 90 days from March 9, 1998, 
to allow GMC and owners and Colorado Interstate Gas Company (CIG) to 
resolve any dispute as to the correct amount of refund set forth in the 
Statement of Refunds Due [SRD] received from CIG and submit any 
unresolved dispute to FERC for resolution. Additionally, GMC and owners 
request that the Commission grant an adjustment to its procedures to 
allow SMC and owners to defer payment of principal and interest 
attributable to royalties for one year until March 9, 1999. Finally, 
GMC and owners request that the Commission grant an adjustment to its 
procedures to allow GMC and owners 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 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. 98-8171 Filed 3-27-98; 8:45 am]