[Federal Register: March 24, 1998 (Volume 63, Number 56)]
[Notices]               
[Page 14084-14085]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24mr98-62]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. SA98-14-000]

 
Albert A. Thornbrough; Notice of Petition for Adjustment

March 18, 1998.
    Take notice that on March 6, 1998, Albert A. Thornbrough 
(Thornbrough) filed a petition for adjustment under section 502(c) of 
the Natural Gas Policy Act of 1978 (NGPA),\1\ seeking Commission 
intervention to resolve a dispute between himself and Colorado 
Interstate Gas Company (CIG) concerning ad valorem taxes for years 1982 
through 1986. Thornbrough requests that he be relieved of his 
obligation to pay Kansas ad valorem tax refunds, as required by the 
Commission's September 10, 1997 order, in Docket Nos. GP97-3-000, GP97-
4-000, GP97-5-000, and RP97-369-000.\2\ Thornbrough's petition is on 
file with the Commission and open to public inspection.
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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's September 10 order also provided that first 
sellers could, with the Commission's prior approval, amortize their 
Kansas ad valorem tax refunds over a 5-year period, although interest 
would continue to accrue on any outstanding balance.
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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) (Public Service).
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    As of March 9, 1998, CIG claims that Thornbrough owes CIG 
$108,883.73 in principal and $156,621.88 in interest. Thornbrough 
disputes CIG's claim entirely. If the Commission determines that 
Thornbrough is required to pay some or all of the disputed amount to 
CIG, Thornbrough seeks a staff adjustment pursuant to Section 502(c) of 
the NGPA, abating all of the disputed amount. If the Commission 
subsequently determines that Thornbrough is required to pay some or all 
of the disputed amount to CIG, Thornbrough seeks permission to amortize 
the required sum over a five-year period commencing on march 9, 1999 
such that the first installment would be equal to one-fifth of the 
total principal and interest owing as of that date; the second 
installment equal to \1/4\ of the remaining total; the third 
installment equal to \1/3\ of the remaining balance; the fourth 
installment equal to \1/2\ of the remaining amount; and the fifth 
installment would be equal to the balance of all principal and interest 
owing as of March 9, 2003.
    Thornbrough, as operator, claims that the production and his 
working and revenue interests therein, as well as the royalty interest 
owners, of the following wells are the subject of this dispute:

------------------------------------------------------------------------
                                                Gross work   Net revenue
          Well name               Location       interest      interest 
                                                 (percent)    (percent) 
------------------------------------------------------------------------
Lindsay #1..................  Section 25.....        100           76.56
McDonald #1.................  Section 13.....         50           43.75
McDonald #2.................  Section 13.....         31.25        27.31
Thornbrough #1..............  Section 24.....        100           82.31
Thornbrough #2..............  Section 24.....         62.5         51.26
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    All of these wells are located at T25S-R39W in Hamilton County, 
Kansas. Thornbrough also claims that its request for relief from its 
Kansas ad valorem taxes for the years 1982-1986 is based on a May 1, 
1989 Settlement Agreement with CIG where the only mention of these 
types of taxes, to which Thornbrough may be liable for making a refund, 
is for the years 1987 and 1988.
    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, 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

[[Page 14085]]

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. 98-7535 Filed 3-23-98; 8:45 am]
BILLING CODE 6717-01-M