[Federal Register Volume 64, Number 77 (Thursday, April 22, 1999)]
[Notices]
[Pages 19757-19758]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-10036]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket Nos. SA99-25-000, SA99-26-000, SA99-27-000, SA99-28-000, SA99-
29-000 (Not Consolidated)]


Texaco Exploration and Production Inc.; Notice of Petition for 
Dispute Resolution or, Alternatively, and Adjustment

April 16, 1999.
    Take notice that on March 10, 1999, Texaco Exploration and 
Production Inc. (Texaco), filed a petition for dispute resolution and 
adjustment under Section 502(c) of the Natural Gas Policy Act of 1978 
(NGPA 15 U.S.C. 3412(c)) and Rules 1101-1117 of the Commission's Rules 
of Practice and Procedure (18 CFR 385.1101-385.1117).

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                       Pipeline                            Docket No.
------------------------------------------------------------------------
Colorado Interstate Gas Company......................    \1\ SA99-25-000
Northern Natural Gas Company.........................    \2\ SA99-26-000
Panhandle Eastern Pipe Company.......................    \3\ SA99-27-000
Williams Gas Pipelines Central, Inc..................    \4\ SA99-28-000
KN Interstate Gas Transmission Company...............    \5\ SA99-29-000
------------------------------------------------------------------------
\1\ Changed from GP99-10-000.
\2\ Changed from GP99-11-000.
\3\ Changed from GP99-12-000.
\4\ Changed from GP99-13-000.
\5\ Changed from GP99-14-000.

    Texaco requests that the Commission resolve its dispute with the 
pipelines by holding that settlements and/or release agreements 
resolved all issues, including those associated with Kansas ad valorem 
tax dispute resolution and adjustment, between the parties. Texaco 
contends that by agreeing in the settlement to forego claims it for 
nonperformance it otherwise could have continued to pursue, Texaco 
agreed to accept total payments under the contracts that did not exceed 
the MLP ceilings multiplied by the total volumes represented by each 
pipeline's nonperformance. In such circumstances, no refund should be 
required. To order otherwise would prevent Texaco from receiving the 
very benefits it bargained for in the settlements--settlements that the 
Commission itself strongly encouraged as a means to resolve the massive 
take-or-pay and underpayments liabilities of interstate pipelines and 
make the transition to a more market-responsive and competitive 
environment.
    Texaco maintains that the pipelines and consumers benefitted from 
agreements and settlements because the settlements allowed the 
pipelines to avoid the much higher costs that full-performance of the 
contract would have entailed. By resolving ``all claims'' relating to, 
inter alia, ``contractural price'', the settlements resolved the Kansas 
ad valorem tax reimbursement issue. The Commission has found that these 
settlements served the public interest. Texaco's petitions are on file 
with the Commission, and they are open to public inspection. This 
filing may be viewed on the web at http://www.ferc.fed.us/online/
rims.htm (call 202-208-2222 for assistance).
    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

[[Page 19758]]

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. 99-10036 Filed 4-21-99; 8:45 am]
BILLING CODE 6717-01-M