[Federal Register Volume 63, Number 158 (Monday, August 17, 1998)]
[Notices]
[Pages 43918-43919]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-21973]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. SA98-93-000]


Eastman Dillon Oil & Gas Associates; Notice of Petition for 
Adjustment

August 11, 1998.
    Take notice that on July 7, 1998, Eastman Dillon Oil & Gas 
Associates (Eastman Dillon) filed the above-referenced petition, 
pursuant to section 502(c) of the Natural Gas Policy Act of

[[Page 43919]]

1978. Eastman Dillon's petition requesting that the Commission grant a 
waiver of refunds of Kansas ad valorem tax reimbursement. Eastman 
Dillon's petition is on file with the Commission and is 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\ directed First Sellers to make Kansas ad valorem tax 
refunds, with interest, to the appropriate pipelines, for the period 
from 1983 to 1988. Alternatively, if it is not relieved from making the 
subject refunds, Eastman Dillon requests that the Commission permit it 
to amortize its refund obligation over a 5-year period. In its January 
28, 1998 Order Clarifying Procedures [82 FERC para. 61,059 (1998)], 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. Additionally, the Commission indicated that 
it would grant extension of the refund due date for royalty refunds if 
a producer requests such an extension. Also the Commission's January 28 
order states that it would consider adjustment requests as to the 
refund amounts and the refund procedures.
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    \1\ See: 80 FERC para. 61,264 (1997); rehearing denied 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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    Eastman Dillon specifically requests a waiver of the refund 
liability under the Commission's orders based on: (1) its inability to 
recover amounts previously disbursed to its partners under Delaware 
partnership law; and (2) its inability to recover payments previously 
made to royalty owners under the Kansas royalty law. If, however, 
payments previously made to royalty owners under the Kansas royalty 
law. If, however, the Commission is not willing to grant such a total 
waiver of refund liability, Eastman Dillon requests a waiver of refunds 
at least as to amounts attributable to prior limited partners who no 
longer are partners in Eastman Dillon (including some who are 
deceased), and as to royalty amounts. Furthermore, Eastman Dillon 
requests that the Commission permit it to spread refund as to the 
remaining amounts due, after the limited waiver, over a five year 
period commencing as of the date of action on this Petition.
    Any person desiring to be heard or to make any protest with 
reference to any of these petitions 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.
David P. Boergers,
Secretary.
[FR Doc. 98-21973 Filed 8-14-98; 8:45 am]
BILLING CODE 6717-01-M