[Federal Register Volume 63, Number 73 (Thursday, April 16, 1998)]
[Notices]
[Pages 18896-18897]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-10088]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. SA98-77-000]


BP Exploration and Oil, Inc.; Notice of Petition for Adjustment 
and Extension of Time

April 10, 1998.
    Take notice that on March 23, 1998, BP Exploration and Oil, (BP), 
filed a petition pursuant to Section 502(c) of the Natural Gas Policy 
Act of 1978 (NGPA) \1\ and Subpart K of the Commission's Rules of 
Practice and Procedure (18 CFR 385.1101-385.1117), for: (1) a 106-day 
extension of the Commission's March 9, 1998, refund deadline, by which 
date BP would otherwise be required to make Kansas ad valorem tax 
refunds, with interest, to ANR Pipeline Company (ANR); and (2) an 
adjustment with respect to BP's refund obligation, waiving BP's 
obligation to refund the interest that would otherwise accrue during 
the 106-day period from November 10, 1997 to February 24, 1998. BP's 
petition is on file with the Commission and open to public inspection.
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    \1\ 15 U.S.C. Sec. 3142(c) (1982).
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    On September 10, 1997, in Docket No. RP97-369-000 et al., the 
Commission issued an order,\2\ on remand from the D.C. Circuit Court of 
Appeals,\3\ that directed first sellers to make Kansas ad valorem tax 
refunds, with interest, for the period from 1983 to 1988. The 
Commission directed the pipelines to serve first sellers with a 
Statement of Refunds Due within 60 days of the date of the refund 
order, and directed first sellers to make the necessary refunds within 
180 days of the date of the refund order (i.e., by March 9, 1998).
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    \2\ See 80 FERC para. 61,264 (1997); order denying reh'g issued 
January 28, 1998, 82 FERC para. 61,058 (1998).
    \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).
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    BP explains that ANR's Statement of Refunds Due identifies 
$227,793.83 as

[[Page 18897]]

being due from Lear Exploration, Inc. (Lear), as a result of gas sales 
that Lear made to ANR before December 31, 1986, and that ANR sent that 
Statement of Refunds Due to Lear, not BP.
    BP further explains that BP America, Inc., BP's parent, acquired 
Lear Petroleum Corporation, Lear's parent, in 1988, and that through 
corporate reorganization, BP became Lear's parent company. BP adds that 
it sold Lear's stock to another entity in 1991, but remained 
responsible for the past refund obligations of Lear. BP also states 
that Lear sold the properties in question to Total Minatome Corporation 
(Total Minatome) on December 31, 1986, prior to BP America, Inc.'s 
acquisition of Lear's stock. BP states that Lear retained liability for 
refunds from sales made before the transfer to Total Minatome, and that 
the sales that generated the refunds were all made by Lear before the 
transfer to Total Minatome.
    Because BP did not receive any notice of the refund obligation 
until after February 24, 1998, BP contends that it was not afforded the 
full 120-day period that the Commission intended first sellers to have, 
to evaluate their refund obligations. BP also points out that the 
refunds in question pertain to sales from properties that Lear disposed 
of prior to the date that BP America, Inc., acquired Lear. Therefore, 
BP requests a 106-day extension of the refund deadline, from March 9, 
1998 to June 23, 1998.
    BP also requests adjustment relief from its obligation to refund 
the interest that accrued on BP's outstanding balance between November 
10, 1997 and February 24, 1998, on the basis that BP's response to the 
Commission's refund order, through no fault of its own, has been 
unavoidably delayed. BP argues that it would be inequitable to require 
BP to pay interest during the 106-day period between November 10, 1997 
and February 24, 1998.
    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 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.
Linwood A. Watson, Jr.
Acting Secretary.
[FR Doc. 98-10088 Filed 4-15-98; 8:45 am]
BILLING CODE 6717-01-M