[Federal Register Volume 63, Number 54 (Friday, March 20, 1998)]
[Notices]
[Page 13647]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-7263]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket No. SA98-10-000]
Helmerich & Payne, Inc.; Notice of Petition for Adjustment
March 16, 1998.
Take notice that on March 3, 1998, Helmerich & Payne, Inc. (H&P),
filed a petition, pursuant to section 502(c) of the Natural Gas Policy
Act of 1978 (NGPA), for an adjustment of the Commission's refund
procedures [15 U.S.C. 3142(c) (1982)] with respect to H&P's Kansas ad
valorem tax refund liability.
The Commission's September 10, 1997 order on remand from the D.C.
Circuit Court of Appeals,\1\ in Docket No. RP97-369-000 et al.,\2\
directed first sellers to make Kansas ad valorem tax refunds, with
interest, for the period from 1983 to 1988. The Commission clarified
the refund procedures in its Order Clarifying Procedures [82 FERC para.
61,059 (1998)], stating therein that producers [first sellers] could
request additional time to establish the uncollectability of royalty
refunds, and that first sellers may file requests for NGPA section
502(c) adjustment relief from the refund requirement and the timing and
procedures for implementing the refunds, based on their individual
circumstances.
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\1\ 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).
\2\ See 890 FERC para.61,264 (1997); order denying reh'g issued
January 28, 1998, 82 FERC para.61,058 (1998).
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H&P requests a 1-year deferral of payment, to the relevant
Pipelines [Northern Natural Gas Company, Panhandle Eastern Pipe Line
Company, KN Interstate Gas Transmission Company, and Colorado
Interstate Gas Company], of the principal and interest refunds
attributable to royalties until March 9, 1999. In addition, H&P
requests that it be allowed to place into an escrow account certain
portions of the remaining refunds allegedly due to Pipelines. H&P
asserts that these procedures are needed to ensure that it pays only
that which is legitimately owed, and to ensure that it can recover the
overpayment, if it is subsequently determined that its refund liability
was less than that originally claimed by the Pipelines. H&P states that
a 1-year deferral in the obligation to make royalty refunds is
necessary in order to allow it to confirm the refund amounts due, to
locate the prior royalty owners, and to seek recovery of such amounts
from the proper royalty owners.
On or before March 9, 1999, H&P proposes to file with the
Commission documentation of those royalties which were not collectible
and disburse to Pipelines those royalty refunds which were recovered
(principal only), except for refunds attributable to pre-October 3,
1983, production. At that time, H&P proposes to place the interest from
royalty refunds which was recovered in its escrow account to protect
the royalty owners. In addition, H&P asserts that its proposal for an
escrow account is necessary to protect its property and that of its
royalty owners. H&P also proposes to place the following amounts into
that escrow account:
(1) The principal amount of refunds and interest thereon
attributable to royalty refunds (during the 1-year deferral period);
(2) The principal and interest amount of refunds attributable to
production prior to October 3, 1983 (excluding royalties attributable
thereto during the 1-year deferral period); and
(3) The interest due on principal refunds other than royalty
refunds (during the 1-year deferral period) and pre-October 3, 1983,
production refunds.
H&P requests the 1-year deferral and the authorization to place
such monies into an escrow account pursuant to the Commission's January
28, 1998, Order Clarifying Procedures.
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, Washington, D.C. 20426, a motion
to intervene or a protest in accordance with the requirements of the
Commission's Rules of Practice and Procedure (18 CFR 384.214, 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,
Acting Secretary.
[FR Doc. 98-7263 Filed 3-19-98; 8:45 am]
BILLING CODE 6717-01-M