[Federal Register Volume 63, Number 69 (Friday, April 10, 1998)]
[Notices]
[Pages 17829-17830]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-9491]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket Nos. GP98-26-000, GP98-27-000, GP98-28-000, and GP98-29-000 
(Not consolidated)]


ONEOK Resources Company; Notice of Petitions for Dispute 
Resolution

April 6, 1998.
    Take notice that, on March 12, 1998, ONEOK Resources Company (ONEOK 
Resources), successor to ONEOK Exploration Company (ONEOK Exploration) 
and Imperial Oil & Gas, Inc., filed:
    (1) A petition, in Docket No. GP98-26-000, requesting the 
Commission to resolve ONEOK Resources' dispute with Northern Natural 
Gas Company (Northern), over ONEOK Resources' Kansas ad valorem tax 
refund liability to Northern;
    (2) A petition, in Docket No. GP98-27-000, requesting the 
Commission to resolve ONEOK Resources' dispute with Panhandle Eastern 
Pipe Line Company (Panhandle), over ONEOK Resources' Kansas ad valorem 
tax refund liability to Panhandle;
    (3) A petition to Docket No. GP98-28-000, requesting the Commission 
to resolve ONEOK Resources' dispute with Williams Gas Pipelines 
Central, Inc., formerly: Williams Natural Gas Company (Williams), over 
ONEOK Resources' Kansas ad valorem tax refund liability to Williams; 
and
    (4) A petition in Docket No. GP98-29-000, requesting the Commission 
to resolve ONEOK Resources' dispute with KN Interstate Gas Transmission 
Company (KNI), over ONEOK Resources' Kansas ad valorem tax refund 
liability to KNI.
    The Commission, by order issued September 10, 1997, in Docket No. 
RP97-369-000 et al.,\1\ on remand from the D.C. Circuit Court of 
Appeals,\2\ required first sellers to refund the Kansas ad valorem tax 
reimbursements to the pipelines, with interest, for the period from 
1983 to 1988. In its January 28, 1998, Order Clarifying Procedures, the 
Commission stated that producers (i.e., first sellers), could file 
dispute resolution requests with the Commission, asking the Commission 
to resolve the dispute with the pipeline over the amount of Kansas ad 
valorem tax refunds owed, see 82 FERC para. 61,059 (1998). ONEOK 
Resources' petitions are 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).
    \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).
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    In each petition, ONEOK Resources states that: (1) it has no 
records prior to its purchase of certain producing interests in the 
State of Kansas; (2) it assumed the obligation for those producing 
interests on September 1, 1985; (3) through the close of business on 
March 9, 1998, it attempted to resolve its differences with each 
pipeline; (4) its attempts failed with respect to each pipeline; and 
(5) it now requests the Commission to establish procedures to resolve 
the issue of the correct amount of the refunds due each pipeline.
    In its petition in Docket No. GP98-26-000, ONEOK Resources states 
that it disputes owing $21,386.07, plus interest, to Northern, and has 
placed that money into escrow. ONEOK Resources states that it has paid 
Northern the remaining balance of $4,952.60 in principal and $10,717.32 
in interest.
    In its petition in Docket No. GP98-27-000, ONEOK Resources 
concludes that it does not owe Panhandle any refunds for the 1985 
Kansas ad valorem tax reimbursements, because it did not receive the 
maximum lawful price for those gas sales. Therefore, ONEOK Resources 
concludes that it does not owe Panhandle the $12,326.09 and $18,555.79 
in related interest to Panhandle. ONEOK Resources states that it has 
placed these amounts into escrow. ONEOK Resources further concludes 
that it does not owe Panhandle the $76,366.95 in principal and 
$166,902.91 in related interest pertaining to Kansas ad valorem tax 
reimbursements that were paid to an individual prior to ONEOK 
Resources' acquisition of that individual's working interest in the 
wells. ONEOK Resources states that the remaining $16,467.51 in 
principal and $30,379.94 in related interest has been paid to 
Panhandle.
    In its petition in Docket No. GP98-28-000, ONEOK Resources states 
that it received a copy of a Statement of Gas Settlement, dated 
September 25, 1986, identifying $6,642.24 of the original $15,526.45 of 
principal requested by Williams. ONEOK Resources states that it is 
trying to confirm this information, and that it will dispute the 
remaining $8,884.22 of principal, and the related interest, until it 
confirms this information. ONEOK Resources also states that it 
disagrees with Williams' interest calculation methodology. ONEOK 
Resources contends that interest should be computed from the date the 
check was issued (September

[[Page 17830]]

26, 1986) to ONEOK Exploration, rather than the date that ONEOK 
Exploration paid the ad valorem tax to the State of Kansas. According 
to ONEOK Resources, the true interest on the $6,642.24 principal is 
$10,381.41. ONEOK Resources states that the revised total ($17,023.65) 
has been remitted to Williams.
    In its petition in Docket No. GP98-29-000, ONEOK Resources states 
that it has requested verification from KNI concerning the statement 
that KNI sent, requesting payment of $46,491.46. ONEOK Resources states 
that such verification was not received until March 9, 1998, that it 
has not had time to review this information, and that it has placed the 
entire sum into escrow.
    Any person desiring to comment on or make any protest with respect 
to any of the above-referenced petitions should, on or before April 22, 
1998, file with the Federal Energy Regulatory Commission, 888 First 
Street, NE., Washington, DC 20426, a motion to intervene or protest in 
accordance with the requirements of the Commission's Rules of Practice 
and Procedure (18 CFR 385.214 or 385.211). 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 the 
proceeding, or to participate as a party in any hearing therein, must 
file a motion to intervene in accordance with the Commission's Rules.
Linwood A. Watson, Jr.,
Acting Secretary.
[FR Doc. 98-9491 Filed 4-9-98; 8:45 am]
BILLING CODE 6717-01-M