Applications, hearings, determinations, etc.: McCoy Petroleum Corp.,

[Federal Register: March 26, 1998 (Volume 63, Number 58)]

[Notices]

[Page 14694-14695]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr26mr98-65]

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. SA98-34-000]

McCoy Petroleum Corporation; Notice of Petition for Adjustment

March 20, 1998.

Take notice that on March 9, 1998, McCoy Petroleum Corporation (McCoy), fileda petition for adjustment under section 502(c) of the Natural Gas Policy Act of 1978 (NGPA),\1\ requesting to be relieved of its obligation to refund to The Williams Companies, Inc., (Williams) the Kansas ad valorem tax refunds owned by three of the working interest owners in a well located in Barber County, Kansas, otherwise required by 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\ McCoy'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 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 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.

\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).

McCoy states that it was and is the operator of the Wortman #1 Lease and the Reed #1 Lease located in Barber County, Kansas. McCoy claims that no portion of the ad valorem tax attributable to the royalty interest in these leases was ever collected by McCoy and is not pertinent to this proceeding. McCoy also states that three of the working interest owners in the Reed #1-23 Well were National Oil Company (National), K & E Drilling Company (K&E), and Christina Sollars (Sollars). McCoy explains that since payment of the reimbursement of the ad valorem taxes to National and Sollars, they have both declared bankruptcy. McCoy states that several years ago K & E sold all of its assets and the company is no longer in business. McCoy indicates that the principal and attributable to National is $1550.88, the amount of the principal and attributable to K&E is $620.35, and the amount of principal attributable to Sollars is $48.46 for a total of $2,219.69.

McCoy asserts that the claims against Nation and Sollars by McCoy are uncollectable by virtue of the federal bankruptcy law. McCoy also asserts that the Kansas statutes relating to the liabilities of a dissolved corporation provide that successors in interest to K&E have no obligation at this time to pay to Williams any Kansas ad valorem tax reimbursement that may have been received by the corporation during the subject period. McCoy further states that the balance of the claim made by Williams against McCoy is being remitted under protest, with all rights reserved, to Williams on behalf of McCoy and the other working interest owners in the two subject leases.

In support of its request for a staff adjustment, McCoy states that it does not have an ongoing contractual relationship with these three working interest owners which would permit McCoy to collect the subject refunds through billing adjustments. McCoy asserts that therefore the alleged refunds as to these three working interest owners should be deemed to be uncollectible and the Commission should waive the obligation of McCoy to make payment of the same. McCoy requests that the Commission grant McCoy staff adjustment in the amount $2,219.69 for taxes and interest as of December 31, 1997, in connection with the Statement of Refunds Due submitted to it on November 10, 1997, by Williams.

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 filedwith the Commission will be considered by it in determining the appropriate action to be taken but will not serve to make to protestants parties to the proceeding. Any person wishing

[[Page 14695]]

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. 98-7850Filed3-25-98; 8:45 am]

BILLING CODE 6717-01-M