[Federal Register: March 26, 1998 (Volume 63, Number 58)]
[Notices]               
[Page 14691-14692]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26mr98-60]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. SA98-13-000]

 
Hoffmann Oil Company; Notice of Petition for Adjustment and 
Dispute Resolution Request

March 20, 1998.
    Take notice that on March 6, 1998, Hoffmann Oil Company (Hoffmann) 
filed a petition for adjustment under section 502(c) of the Natural Gas 
Policy Act of 1978 (NGPA),\1\ and a dispute resolution request with 
respect to Hoffman's Kansas ad valorem tax refund liability under the 
Commission's September 10, 1997 order (September 10 order) in Docket 
Nos. RP97-369-000, GP97-3-000, GP97-4-000, and GP97-5-000.\2\ 
Hoffmann'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 82 FERC 
para. 61,058(1998).
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    The Commission's September 10 order on remand from the DC 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 clarified the refund procedures in an order 
issued January 28, 1998, in Docket No. RP98-39-001, et al.,\4\ 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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    \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\ See Order Clarifying Procedures 82 FERC para. 61,059 (1998).
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    Hoffmann specifically requests that the Commission: (1) Resolve the 
pending dispute between Hoffmann and Panhandle Eastern Pipeline Company 
(Panhandle) concerning the proper amount of refunds, including 
interest, for reimbursement of Kansas ad valorem taxes paid over the 
period 1983 to 1988 (with such amounts being placed in an escrow 
account); (2) grant an adjustment to its procedures to allow Hoffman to 
defer payment of principal and interest attributable to royalties for 
one year until March 9, 1999; and (3) grant an adjustment to the 
Commission's procedures to allow Hoffmann to place

[[Page 14692]]

into an escrow account: (i) Amounts attributable to royalty refunds 
which have not been collected from the royalty owner (principal and 
interest), (ii) interest on royalty amounts which have been recovered 
from the royalty owners (the principal of which was refunded); and 
(iii) interest on the total amount of refunds allegedly due (excluding 
royalties, disputed amounts, and pre-October 3rd production).
    In support of its request Hoffmann states that it is not seeking to 
relieve itself of its refund obligation, rather it merely seeks to 
establish procedures which ensure that it pays only that which is 
legitimately owed and that if it is subsequently determined that its 
refund liability was less than that claimed by Panhandle, it can 
recover the overpayment.
    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, DC 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. 98-7845 Filed 3-25-98; 8:45 am]
BILLING CODE 6717-01-M