[Federal Register Volume 63, Number 105 (Tuesday, June 2, 1998)]
[Notices]
[Pages 29981-29982]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-14480]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. GP98-33-000]


Graham-Michaelis Corporation; Notice of Petition for Dispute 
Resolution

May 27, 1998.
    Take notice that, on May 19, 1998, Graham-Michaelis Corporation 
(GMC) filed a petition requesting the Commission to resolve any dispute 
between GMC and Williams Gas Pipelines Central, Inc., formerly: 
Williams Natural Gas Company (Williams), regarding GMC's refund 
liability for Kansas ad valorem tax reimbursements that Amoco made to 
GMC and that GMC forwarded to certain third-party working interest 
owners. GMC asks the Commission to find that GMC has no such refund 
liability, to Williams, because GMC only served as the operator for 
those third-party working interest owners, and did not hold an interest 
in those leases and wells. GMC's petition is on file with the 
Commission and open to public inspection.
    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).
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    \1\ See 80 FERC para. 61,264 (1997); order denying rehearing 
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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    GMC states that it received a copy of a letter that Amoco 
Production Company (Amoco) sent to Williams (in response to the 
Statement of Refunds Due that Williams sent to Amoco) that detailed 
Amoco's analysis of its Kansas ad valorem tax refund liability. GMC 
notes that Amoco stated therein that it is not responsible for refunds 
attributable to third-party working interests, and listed ``Graham-
Michaelis'' as having received these reimbursements during the 
applicable period (1983-1988). GMC states that, with interest computed 
through March 9, 1998, these refunds total $42,004.68.
    While GMC agrees that Amoco has no refund liability for the third-
party reimbursements, GMC contends that it also has no such refund 
liability, because GMC only operated the leases and the eight wells 
involved (Bowker 2, Lowe, Long Wood, Wheatley 2-33, Weber B, Weber A, 
Dennis, and Steen) on behalf of the working interest owners, and GMC 
did not retain the Kansas ad valorem tax reimbursements. GMC adds that: 
1) the subject working interest owners sold the leases and wells a 
number of years ago; 2) many of the corresponding files and records 
were turned over to the purchaser; 3) it has been unable to determine 
whether, and to what extent these reimbursements exceeded the maximum 
lawful prices; and 4) it has been unable to determine the principal and 
interest owed by each working interest owner.
    GMC states that it has not received a Statement of Refunds Due from 
Williams with respect to these refunds; thus, no refund claim has been 
leveled at GMC. GMC further states that it does not know, at this time, 
whether any dispute with Williams exists. Nevertheless, GMC asks the 
Commission to find that GMC has no refund liability to Williams, with 
regard to the Kansas ad valorem tax reimbursements that GMC passed 
through to the working interest owners. Meanwhile, GMC states that it 
will: 1) continue to assemble the information to determine what Kansas 
ad valorem tax reimbursement distributions it made to each working 
interest owner; 2) continue its efforts to determine whether those 
reimbursements exceeded the applicable maximum lawful prices; and 3) 
notify the working interest owners of their refund liability once GMC 
completes its determinations, and furnish its findings to Williams,

[[Page 29982]]

along with the names and addresses of the working interest owners. GMC 
states that it believes that these determinations will be completed and 
the notifications given within the next three weeks.
    Any person desiring to comment on or make any protest with respect 
to the above-referenced petition should, on or before June 17, 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. 98-14480 Filed 6-1-98; 8:45 am]
BILLING CODE 6717-01-M