[Federal Register Volume 64, Number 198 (Thursday, October 14, 1999)]
[Notices]
[Page 55706]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-26818]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. RP98-52-000]


Williams Gas Pipelines-Central, Inc.; Notice of Offer of 
Settlement

October 7, 1999.
    Take notice that on October 1, 1999, the Missouri Public Service 
Commission (MoPSC), Williams Gas Pipelines-Central, Inc., formerly 
Williams Natural Gas Company (Williams) and Missouri Gas Energy, a 
division of Southern Union Company (collectively called Sponsoring 
Parties) filed an Offer of Settlement under Rule 602 of the 
Commission's Rules of Practice and Procedure in the captioned docket. 
Sponsoring Parties filed the Offer of Settlement to facilitate and 
expedite the Commission's implementation of the decision of the United 
States Court of Appeals for the District of Columbia Circuit in Public 
Service Company of Colorado.\1\ The Sponsoring Parties state the Offer 
of Settlement is intended to provide relief to small producers from 
their ad valorem tax refund liability and to reduce the administrative 
burdens on the Commission, its staff, first sellers and numerous 
interest owners and intervenors associated with the various proceedings 
pending at the Commission relating to such tax liability. A copy of the 
Offer of Settlement is on file with the Commission and is available for 
public inspection in the Public Reference Room. The Offer of Settlement 
may be viewed on the web at http://www.ferc.fed.us/online/rims.htm 
(call 202-208-2222 for assistance).
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    \1\ Public Service Co. of Colorado, et al., 80 FERC para.61,264 
(1997), reh'g denied, 82 FERC para. 61,058 (1998). Appeal pending. 
Anadarko Petroleum Corporation v. FERC, Case No. 98-1227 et al.
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    To achieve these objectives, the Offer of Settlement provides a 
$50,000 credit towards the ad valorem tax refund liability of the first 
sellers listed in the Statement of Refunds Due filed by Williams on 
November 18, 1997, as adjusted in Exhibit A to the Offer of Settlement 
to reflect subsequent corrections. Any first seller with a refund 
obligation of $50,000 or less for principal and interest will have its 
ad valorem tax refund waived in its entirety. First sellers with refund 
liabilities of $50,000 or less are not required to give up any rights 
or provide any other consideration as a condition to receiving the 
benefits. Sponsoring Parties state the Offer of Settlement would 
eliminate the entire refund obligation of 40 of the 75 first sellers on 
the Williams system.
    Any first seller with a refund liability in excess of $50,000 as 
listed in the Statement of Refunds Due filed by Williams on November 
18, 1997, as adjusted in Exhibit A to reflect subsequent corrections, 
is eligible to have its refund obligation reduced by $50,000. In order 
to be eligible for the $50,000 credit, such first sellers must pay the 
remaining refund liability (after deducting the $50,000), plus 
additional accrued interest through date of payment, and agree to 
withdraw all interventions, protests and court appeals related to the 
ad valorem tax refund. First sellers who accept the terms for partial 
waiver under the Offer of Settlement will be responsible for 
negotiating with their underlying interest owners the amount of the 
waiver relief applicable to their interest owners.
    The Offer of Settlement also provides that any first seller listed 
in Williams' Statement of Refunds Due with a refund liability of 
$50,000 or less for principal and interest who has refunded to Williams 
amounts which would be waived under Article II will receive a refund 
from Williams of such amounts, plus additional accrued interest through 
date of payment by Williams. In addition, Article III provides that if 
Williams has previously received refunds directly from an interest 
owner whose obligation was incurred under a first seller whose entire 
refund obligation is waived pursuant to the agreement, Williams will 
refund such payments to the interest owner within 60 days of the 
effective date of the settlement. If jurisdictional refunds exceed the 
amount of undisbursed Kansas ad valorem tax refunds held by Williams, 
Williams will maintain a credit balance for the jurisdictional refunds. 
Any subsequent Kansas ad valorem tax refunds received by Williams will 
be used to reduce any credit balance before any disbursement is made to 
customers. One hundred twenty days after the effective date of the 
Offer of Settlement, Williams shall be permitted to direct bill any 
remaining credit amounts.
    In accordance with section 385.602(f), initial comments on the 
Offer of Settlement are due on October 21, 1999 and any reply comments 
are due November 1, 1999.
Linwood A. Watson, Jr.,
Acting Secretary.
[FR Doc. 99-26818 Filed 10-13-99; 8:45 am]
BILLING CODE 6717-01-M