[Federal Register: March 24, 1998 (Volume 63, Number 56)]
[Notices]               
[Page 14081-14082]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24mr98-58]

-----------------------------------------------------------------------

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. SA98-33-000]

 
Pioneer Natural Resources USA, Inc.; Notice of Petition for 
Adjustment

March 18, 1998.
    Take notice that on March 9, 1998, Pioneer Natural Resources USA, 
Inc. (Pioneer) filed a petition for adjustment under section 502(c) of 
the Natural Gas

[[Page 14082]]

Policy Act of 1978 (NGPA),\1\ requesting that the Commission grant a 
procedural adjustment in connection with its potential refund liability 
for reimbursement of Kansas ad valorem taxes otherwise 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\ Pioneer's petition is on file 
with the Commission and open to public inspection.
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

    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 interests, for the period from 1983 
to 1988. The Commission clarified the refund procedures in its ``Order 
Clarifying Procedures'' in Northern Natural Gas Company, et al.,\4\ 
stating therein that it would grant extension of the refund due date 
for royalty refunds if a producer requests such an extension. In 
addition, the Commission indicated in the January 28 order that it 
would consider adjustment requests as to the refund amounts and the 
refund procedures.
---------------------------------------------------------------------------

    \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).
    \4\ 82 FERC para. 61,059 (1998).
---------------------------------------------------------------------------

    Pioneer requests authorization to defer payment to Northern Natural 
Gas Company, Panhandle Eastern Pipe Line Company, ANR Pipeline Company, 
Williams Natural Gas Company, KN Interstate Gas Transmission Co., and 
Colorado Interstate Gas Company (Pipelines) of principal and interest 
refunds attributable to royalties for one year until March 9, 1999. In 
addition, Pioneer requests that it be allowed to place into an escrow 
account certain portions of the remaining refunds allegedly due to 
Pipelines. Pioneer argues that it seeks to establish these procedures 
to ensure: (a) that it pays only that which is legitimately owed; and 
(b) that if it is subsequently determined that its refund liability was 
less than that originally claimed by Pipelines, it can recover the 
overpayment.
    Pioneer states that a one-year deferral in the obligation to make 
royalty refunds is necessary in order to allow it to confirm the 
appropriate refund amounts due, to attempt to locate the prior royalty 
owners, and to seek recovery of such amounts from the proper royalty 
owners. On or before March 9, 1999, Pioneer 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 (which is covered below). At that time, Pioneer 
proposes to place the interest from royalty refunds which was recovered 
in its escrow account to protect the royalty owners. In addition, 
Pioneer argues that its proposal for an escrow account is necessary to 
protect its property and that of its royalty owners. Pioneer also 
proposes to place the following amounts into that escrow account: (a) 
the principal amount of refunds and interest thereon attributable to 
royalty refunds [during the one-year deferral period]; (b) the 
principal and interest amount of refunds attributable to production 
prior to October 3, 1983 (excluding royalties attributable thereto 
during the one-year deferral period); and (c) the interest due on 
principal refunds other than royalty refunds (during the one-year 
deferral period) and pre-October 3, 1983, production refunds. Pioneer 
requests the one-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, 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 Rules.
David P. Boergers,
Acting Secretary.
[FR Doc. 98-7542 Filed 3-23-98; 8:45 am]
BILLING CODE 6717-01-M