[Federal Register Volume 63, Number 82 (Wednesday, April 29, 1998)]
[Notices]
[Page 23429]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-11312]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. SA98-81-000]


Shannon Energy Corporation; Notice of Petition for Adjustment

April 23, 1998.
    Take notice that on April 7, 1998, Shannon Energy Corporation 
(Shannon) filed a petition, pursuant to section 502(c) of the Natural 
Gas Policy Act of 1978 [15 U.S.C. Sec. 3412(c)] and Subpart K of the 
Commission's Rules of Practice and Procedure, for an adjustment 
relieving Shannon of its obligation to make:
    (1) $17,501.17 in Kansas ad valorem tax refunds to Williams Gas 
Pipelines Central, Inc., formerly: Williams Natural Gas Company 
(Williams);
    (2) $1,180.59 in Kansas ad valorem tax refunds to Colorado 
Interstate Gas Company (CIG); and
    (2) 43,245.89 in Kansas ad valorem tax refunds to Amoco Production 
Company (Amoco), for subsequent flow-through to the purchaser.
    Shannon contends that its financial condition cannot withstand 
having to refund these amounts, because it is a scaled-down company 
that no longer operates the wells that generated the refund 
obligations, and because it will not be able to collect amounts owed by 
the other working interest owners and the royalty interest owners, 
since it has no way to bill them. Shannon's petition is on file with 
the Commission and open to public inspection.
    Shannon states that, although it was the operator of several 
Hugoton wells during the period from December 1, 1986 through January 
1, 1993, it no longer operates those wells, and has no way to obtain 
reimbursement of amounts attributable to many of the working and 
royalty interest owners, because Shannon is no longer billing out 
through a Joint Interest Billing or paying revenue checks. Shannon 
indicates that, collectively, Williams, CIG, and Amoco have served 
Shannon with $61,927.65 in refund claims. Shannon contends that, if it 
tries to make a ``special'' billing of the appropriate working and 
royalty interest owners with respect to these refund claims, it will 
not be reimbursed by those owners and, therefore, will receive the 
hardship of the uncollectible debts. Shannon further states that it 
does not have the funds to risk so large a write-off.
    In view of the above, Shannon requests that it be relieved of its 
obligation to refund the above-referenced amounts to Williams, CIG, and 
Amoco, i.e., to be relieved of its obligation to refund the amounts 
attributable to its own working interest, and to be relieved of the 
obligation to make refunds on behalf of the other working interest 
owners and the royalty interest owners.
    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. 98-11312 Filed 4-28-98; 8:45 am]
BILLING CODE 6717-01-M