[Federal Register Volume 63, Number 57 (Wednesday, March 25, 1998)]
[Notices]
[Pages 14455-14456]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-7775]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. SA98-23-000]


Raymond Oil Company, Inc.; Notice of Petition for Adjustment

March 19, 1998.
    Take notice that on March 9, 1998, Raymond Oil Company, Inc. 
(Raymond) filed a 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 make Kansas ad valorem tax refunds to The Williams 
Companies, Inc. (Williams), 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\ Raymond'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 under the NGPA to make 
Kansas ad valorem tax refunds, with interest, for

[[Page 14456]]

the period from 1983 to 1988. The Commission's September 10 order also 
provided that first sellers could, with the Commission's prior 
approval, amortize their Kansas ad valorem tax refunds over a 5-year 
period, although interest would continue to accrue on any outstanding 
balance.
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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).
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    Raymond states that Williams in its November 10, 1997 statement has 
sought to collect a refund obligation of $376,134.78, including 
interest through December 31, 1997 for the Carr Lease, the Carr ``A'' 
Lease, the Mills ``A'' Lease, the Mills ``R'' Lease, and the Cline 
``A'' Lease. Raymond was the operator of the subject leases and no 
portion of the ad valoram tax attributable to the royalty interest in 
these leases was ever collected by Raymond and the same is not 
pertinent to this proceeding. The working interest owners in varying 
interests in the varying leases are John Alexander, R.L. Rooke, Francis 
Raymond, Western Ventures, Inc., Patrick Raymond, William M. Raymond, 
Shirley Stark and Raymond Oil Company, Inc. Raymond has remitted under 
protest, with all rights reserved, $203,935.24 to Williams on behalf of 
Patrick Raymond, William M. Raymond, Shirley Stark and Raymond Oil 
Company, Inc.
    Raymond States that John Alexander, R.L. Rooke and Francis Raymond 
are deceased and that the alleged refunds should be deemed 
uncollectible. Their respective estates are now closed and the Kansas 
non-claims statute (K.S.A. 59-2239) has since run out thus leaving no 
legal way for Raymond, as operator, from taking legal action for 
recovering any of the monies. Raymond was never the owner of the gas 
attributable to these deceased working interest owners and as a 
contract operator of the subject oil and gas leases, Raymond did not 
purchase this gas from them and does not have an ongoing contractual 
relationship permitting it to collect the subject refunds through the 
use of billing adjustments. Raymond reports the monies to be $11,284.04 
from John Alexander, $37, 613.48 from R.L. Rooke and $48,075.07 from 
Francis Raymond.
    Raymond states that the alleged refunds due from Western Ventures, 
Inc. (Western) should be determined as uncollectible. Western was 
liquidated on December 4, 1986 and the Kansas statutes relating to the 
liabilities of a dissolved corporation provide that successors in 
interest now have no obligation for making reimbursement for monies 
received by the corporation. Raymond requests that the Commission 
recognize that the applicable three year Kansas statute of limitation 
and the laws of the State of Kansas prohibit Raymond, as operator, from 
taking legal action against Western and its stockholders in an attempt 
to obtain a refund of the tax and interest. Raymond reports that 
Western owes a refund of $75,226.96.
    Raymond requests that the Commission grant Raymond staff adjustment 
in the amount of $172,199.55 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 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 must file a motion to intervene in accordance with the 
Commission's Rules
David P. Boergers,
Acting Secretary.
[FR Doc. 98-7775 Filed 3-24-98; 8:45 am]
BILLING CODE 6717-01-M