[Federal Register: March 24, 1998 (Volume 63, Number 56)]
[Notices]               
[Page 14076-14077]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24mr98-47]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. SA98-24-000]

 
Cabot Oil & Gas Corporation; Notice of Petition for Adjustment

March 18, 1998.
    Take notice that on March 9, 1998, Cabot Oil & Gas Corporation 
(Cabot) filed a petition for adjustment under section 502(c) of the 
Natural Gas Policy Act of 1978 (NGPA),\1\ requesting an extension of 
the March 9, 1998, deadline established for first sellers to remit 
refunds of Kansas ad valorem taxes (``Tax'' or ``Taxes'') to their 
pipeline purchasers, 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\ Cabot'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

[[Page 14077]]

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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    Cabot (as well as a predecessor-in-interest) has received 
Statements of Refunds Due (``Statements'') from two of its then 
pipeline purchasers for Tax reimbursements received in conjunction with 
sales of Kansas natural gas for the period October 3, 1983 through June 
28, 1988. Cabot is in the process of reviewing such Statements to 
determine their accuracy, as well as to address various other issues 
concerning whether Cabot, in fact, owes all or only a portion of such 
Tax refunds. Cabot's review includes whether such refund amounts are 
``uncollectible'' pursuant to the standard set forth by the Commission. 
To date, Cabot has not completed its review of the Statements.
    Cabot also is aware that numerous issues are either pending 
rehearing before the Commission, or for which appellate review has been 
sought. Cabot believes that these issues could, depending on their 
ultimate disposition, directly impact, and possibly significantly 
decrease, Cabot's Tax refund obligation.
    Accordingly,to ensure that Cabot does not pay the Statements before 
their accuracy is verified and prior to these issues that are pending 
rehearing or appeal are finally resolved, Cabot is placing in escrow 
all invoiced amounts, together with interest, set forth in the 
Statements. Cabot also is requesting that the Commission grant Cabot an 
extension beyond March 9, 1998, to determine the accuracy of the 
Statements and what, if any, involved amounts are, in fact, 
uncollectible or otherwise improperly or unlawfully invoiced.
    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 not serve to 
make 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. 98-7539 Filed 3-23-98; 8:45 am]
BILLING CODE 6717-01-M