[Federal Register Volume 65, Number 97 (Thursday, May 18, 2000)]
[Notices]
[Pages 31537-31538]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-12474]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. RP00-275-000]


Chesapeake Panhandle Limited Partnership, Complainant, v. Natural 
Gas Pipeline Company of America, MidCon Gas Products Corp., MidCon Gas 
Services Corp., KN Energy, Inc. and Kinder Morgan, Inc., Respondents; 
Notice of Complaint

May 12, 2000.
    Take notice that on May 10, 2000, Chesapeake Panhandle Limited 
Partnership (Complainant) filed with the Federal Energy Regulatory 
Commission a complaint against Natural Gas Pipeline Company of America 
(``NGPL''), MidCon Gas Products Corp. (MidCon Gas Products), MidCon Gas 
Services Corp. (MidCon Gas Services), KN Energy, Inc. (KN) and Kinder 
Morgan, Inc. (Kinder Morgan) (collectively, Respondents) pursuant to 
Rule 206 of the Commission's Rules of Practice and Procedure, 18 CFR 
385.206. According to the Complaint, Respondents, all affiliated 
companies, acted in concert to circumvent the filed rate doctrine and 
violate NGPL's Tariff by charging rates for gathering services which 
NGPL performed in connection with jurisdictional transportation 
services and which, in sum, exceeded the rate specified in the NGPL 
Tariff governing the relevant service.
    Complainant alleges that from March 3, 1998 until January 1, 2000, 
Respondents effectively charged (i) a ``gathering fee'' which in 
certain months exceeded the Maximum rate NGPL, a jurisdictional 
provider of gathering services through NGPL's West Panhandle Gathering 
System, was authorized to charge and (ii) a fuel retention rate for 
gathering service provided by NGPL, which was not included in NGPL's 
filed Tariff. The ``gathering fee'' and fuel retention rate were 
established in a Gas Sales and Purchase Agreement (GAS Sales Agreement) 
which MC Panhandle, Inc. (MC Panhandle), an affiliate of NGPL, had 
initially executed with another NGPL affiliate, MidCon Gas Services. 
MidCon Gas Services' interest was later transferred by assignment to 
MidCon Gas Products. Complainant states that, in 1998, it acquired 
ownership of MC Panhandle, the owner of certain gas wells in Moore and 
Carson Counties, Texas, subject to the terms of the Gas Sales 
Agreement. It avers that through this purchase it became obligated to 
pay, and in fact paid (through a reduced gas sales price), rates for 
gathering services actually performed by NGPL that were greater than 
the applicable rates set forth in NGPL's FERC Gas Tariff.
    According to the Complainant, although the Gas Sales Agreement was 
nominally between MC Panhandle (later succeeded by Chesapeake 
Panhandle) and MidCon Gas Services (later succeeded by its affiliate 
MidCon Gas Products), NGPL's role in the transaction as: (1) The 
provider of the gathering service, (2) the affiliate of the Gas Sales 
Agreements's Buyers, MidCon Gas Services and MidCon Gas Products, (3) 
the affiliate of the Gas Sales Agreement's initial Seller, MC 
Panhandle, and (4) a signatory to the Gas Sales Agreement, effectively 
make NGPL a party to the Gas Sales Agreement and, in any event, support 
the inference that NGPL benefited from the actions of its affiliates in 
charging a rate for services which NGPL provided, but for which NGPL 
itself could not lawfully have charged. Thus, Complainant seeks a 
refund, with interest, of the amounts it was charged (by way of a gas 
sales price reduction) for ``gathering fees'' in excess of NGPL's 
authorized gathering rate and fuel retainage during the period from 
March 3, 1998 through December 31, 1999.
    Questions concerning the Complaint may be directed to counsel for 
Complainant, James F. Bowe, Jr., Dewey Ballantine LLP, 1775 
Pennsylvania Ave., NW, Washington, DC 20006-4605, Phone 202/429-1444, 
Fax 202/862-1093, e-mail [email protected].

[[Page 31538]]

    Any person desiring to be heard or to protest this filing should 
file a motion to intervene or protest with the Federal Energy 
Regulatory Commission, 888 First Street, NE, Washington, DC 20426, in 
accordance with Rules 211 and 214 of the Commission's Rules of Practice 
and Procedure (18 CFR 385.211 and 214 of the Commission's Rules of 
Practice and Procedure (18 CFR 385.211 and 385.214). All such motions 
or protests must be filed on or before May 30, 2000. Protests will be 
considered by the Commission in determining the appropriate action to 
be taken, but will not serve to make protestants parties to the 
proceeding. Any person wishing to become a party must file a motion to 
intervene. Copies of this filing are on file with the Commission and 
are Available for public inspection in the Public Reference Room. This 
filing may also be viewed on the Internet at http://www.ferc.fed.us/online/rims.htm (call 202-2222) for assistance. Answers to the 
complaint shall also be due on or before May 30, 2000.

Linwood A. Watson, Jr.
Acting Secretary.
[FR Doc. 00-12474 Filed 5-17-00; 8:45 am]
BILLING CODE 6717-01-M