[Federal Register Volume 64, Number 205 (Monday, October 25, 1999)]
[Notices]
[Page 57448]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-27711]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. RP98-40-024]


Panhandle Eastern Pipe Line Company; Notice of Offer of 
Settlement

October 19, 1999.
    Take notice that on October 13, 1999, the Missouri Public Service 
Commission (MoPSC), Panhandle Eastern Pipe Line Company (Panhandle) 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 intend 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 Panhandle on 
November 10, 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 56 of the 105 first sellers 
on the Panhandle system.
    Any first seller with a refund liability in excess of $50,000 as 
listed in the Statement of Refunds Due filed by Panhandle on November 
10, 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 credits, 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 
waivers 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 Panhandle's Statement of Refunds Due with a refund liability of 
$50,000 or less for principal and interest who has refunded to 
Panhandle amounts which would be waived under Article II will receive a 
refund from Panhandle of such amounts, plus additional accrued interest 
through date of payment by Panhandle. In addition, Article III provides 
that if Panhandle 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, Panhandle 
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 Panhandle, 
Panhandle will maintain a credit balance for the jurisdictional 
refunds. Any subsequent Kansas ad valorem tax refunds received by 
Panhandle will be used to reduce any credit balance before any 
disbursement is made to customers. One hundred twenty days (120) after 
the effective date of the Offer of Settlement, Panhandle shall be 
permitted to direct bill any remaining credit amounts.
    In accordance with Sec. 385.602(f), initial comments on the Offer 
of Settlement are due on November 2, 1999 and any reply comments are 
due November 12, 1999.
David P. Boergers,
Secretary.
[FR Doc. 99-27711 Filed 10-22-99; 8:45 am]
BILLING CODE 6717-01-M