[Federal Register: April 8, 1998 (Volume 63, Number 67)]
[Notices]               
[Page 17164-17165]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08ap98-63]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket Nos. SA98-49-001 and SA98-49-002]

 
Graham-Michaelis Corporation; Notice of Amendment to Petition for 
Adjustment and Request for Extension of Time

April 2, 1998.
    Take notice that on March 13, 1998, in Docket No. SA98-49-001, and 
on March 26, 1998, in Docket No. SA98-49-002, Graham-Michaelis 
Corporation (GMC) filed supplements amending its March 9, 1998 petition 
for adjustment and request for an extension of time regarding the 
Kansas ad valorem tax refunds that GMC and the working interest owners 
for whom GMC operated \1\ (hereafter collectively referred to as the: 
Applicants) owe to Northern Natural Gas Company (Northern). The March 
13 amending supplement adds North Dakota University, Beresco 
Properties, Inc., Chris Dobbins Family Trust, Dr. Edwin W. Brown, and 
the Fred and June MacMurray Trust to the original list of Applicants in 
the March 9 petition, deletes George D. Rosel Estate, Aikman Oil & Gas 
Company, CEA Corporation, Robert E. Aikman, William H. Aikman, Clenard 
O. McLaughlin Revocable Trust, H.R. Michaelis Revocable Trust, Leona P. 
Maxfield, and Kaiser-Francis Oil Company, and revises GMC's 
determination of Applicants' refund liability to Northern, from 
$269,280.80 to $275,687.38. The March 26 amending supplement adds 
Daniel C. Searle, and the John L. Burns Estate as Applicants and 
revises GMC's determination of Applicants' refund liability, to 
$280,653.90. The March 9 petition and

[[Page 17165]]

March 13 and March 26 supplements amending the March 9 petition are on 
file with the Commission and open to public inspection.
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    \1\ GMC'S Original list of Applicants includes: Graham-Michaelis 
Corporation; W.A. Michaelis, Jr. Revocable Trust; John L. James 
Revocable Trust; George D. Rosel Estate; Airman Oil & Gas Company; 
CEA Corporation; Robert E. Aikman; William H. Aikman; Dail C. West; 
Graham Enterprises; William L. Graham Revocable Trust; Betty 
Harrison Graham Revocable Trust; Clenard O. McLaughlin Revocable 
Trust; GrahamCo; H.R. Michaelis Revocable Trust; David M. Dayvault 
Revocable Trust; Jack L. Yinger Revocable Trust; K & B Producers 
Inc.; William Graham, Inc.; Chas. A. Neal & Company; March Oil 
Company; Minatome Corporation; Leona P. Maxfield; Lake Forest 
Academy; and Kaiser-Francis Oil Company.
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    GMC filed the March 9 petition pursuant to section 502(c) of the 
Natural gas Policy act of 1978, in response to the Commission's 
September 10,1997, order in Docket No. RP97-369-000 et al.\2\ on remand 
from the D.C. Circuit Court of appeals,\3\ which directed first sellers 
to make Kansas ad valorem tax refunds, with interest, for the period 
from 1983 to 1988.
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    \2\ See 80 FERC para. 61,264 (1997); order denying reh'g issued 
January 28, 1998, 82 FERC para. 61,058 (1998).
    \3\ Public Service Company of Colorado v. FERC, 91 F. 3d 1478 
(D.C. Cir. 1996), cert. denied, 65 U.S.L.W. 3751 and 3754 (May 12, 
1997) (Nos. 96-954 and 96-1230).
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    The Commission also 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 
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 the individual circumstances 
applicable to each first seller. Pursuant to that order, GMC's March 9 
petition requested the Commission: (1) to authorize a 90-day extension 
of the Commission's March 9, 1998 refund deadline, to allow GMC resolve 
any disputes with Northern over Applicants' refund liability or, if 
necessary, to file a dispute resolution request with the Commission; 
(2) to grant Applicants a 1-year deferral (i.e. to March 9, 1999) on 
the payment of principal and interest attributable to royalties; and 
(3) to allow Applicants to escrow (a) amounts that remain in dispute 
(b) principal and interest amounts attributable to royalty refunds 
which have not been collected from the royalty owners, (c) principal 
and interest on amounts attributable to production prior to October 4, 
1983, (d) interest on royalty amounts that have been recovered form the 
royalty owners (where the principal has been refunded), and (e) 
interest on all reimbursed principal amounts determined to be 
refundable as being in excess of maximum lawful prices, excluding 
interest retained under (b), (c), and (d) above.
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    \4\ See 82 FERC para. 61,059 (1998).
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    Any person desiring to answer GMC's March 13 and March 20 
amendments should file such answer with the Federal Energy Regulatory 
Commission, 888 First Street, N.E., Washington, D.C. 20426, on or 
before 15 days after the date of publication of this notice in the 
Federal Register, in accordance with the Commission's Rules of Practice 
and Procedure (18 CFR 385.213, 385.215, 385.1101, and 385.1106).
Linwood A. Watson, Jr.,
Acting Secretary.
[FR Doc. 98-9170 Filed 4-7-98; 8:45 am]
BILLING CODE 6717-01-M