[Federal Register Volume 63, Number 57 (Wednesday, March 25, 1998)]
[Notices]
[Pages 14456-14457]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-7772]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. SA98-20-000]


Dale Schwarzhoff; Notice of Petition for Adjustment

March 19, 1998.
    Take notice that on March 9, 1998, Dale Schwarzhoff (First Seller) 
filed a petition for adjustment under section 502(c) of the Natural Gas 
Policy Act of 1978 (NGPA),\1\ requesting that the refund procedures in 
the Commission's September 10, 1997 order in Docket Nos. RP97-369-000, 
GP97-3-000, GP97-4-000, and GP97-5-000,\2\ be altered with respect to 
Schwarzhoff's Kansas ad valorem tax refund liability.
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    \1\ 15 U.S.C. 3142(c) (1982).
    \2\ See 80 FERC para. 61,264 (1997); order denying reh'g issued 
January 28, 1998, 82 FERC para. 61,058 (1998).
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    The Commission's September 10 order on remand from the D.C. Circuit 
Court of Appeals \3\ directed first sellers under the NGPA to make 
Kansas ad valorem tax refunds, with interest, for the period from 1983 
to 1988. The Commission issued a January 28, 1998 order in Docket No. 
RP98-39-001, et al. (January 28 Order),\4\ clarifying the refund 
procedures, stating that producers could request additional time to 
establish the uncollectability of royalty refunds, and that first 
seller 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 the individual circumstances applicable to each 
first seller.
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    \3\ 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).
    \4\ 82 FERC para. 61,059 (1998).
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    First Seller requests, pursuant to the Commission's January 28 
Order, that the Commission grant First Seller and Northern Natural Gas 
Pipeline Company (Pipeline), an extension of 90 days to allow First 
Seller and Pipeline to resolve any dispute as to the proper amount of 
the refund liability of First Seller for the Kansas ad valorem tax 
reimbursements set forth in the Statement of Refunds Due (SRD) 
addressed to Benson Mineral Group, Inc. (BMG), the Operator, or to 
submit such dispute to FERC for resolution if the parties cannot 
resolve the dispute within such time. In addition, First Seller also 
request that in order to stop the accrual of interest pending 
resolution of disputes and legal issues, that an adjustment be granted 
to the FERC's procedures to allow First Seller to place into an escrow 
account not only any disputed amount of the refund amount calculated by 
Pipeline, but also principal and interest on amounts attributable to 
production prior to October 4, 1983, and interest on all other amounts 
claimed to be due under the SRD.
    First Seller argues that it seeks to establish these procedures to 
ensure that it pays only that which is legitimately owed, and that it 
will be able to recover the overpayment, if it is subsequently 
determined that First Seller's refund liability was less than that 
originally claimed by BMG.
    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

[[Page 14457]]

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 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 Rule.
David P. Boergers,
Acting Secretary.
[FR Doc. 98-7772 Filed 3-24-98; 8:45 am]
BILLING CODE 6717-01-M