[Federal Register: April 22, 1999 (Volume 64, Number 77)] [Notices] [Page 19755-19756] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr22ap99-47] ----------------------------------------------------------------------- DEPARTMENT OF ENERGY Federal Energy Regulatory Commission [Docket Nos. SA99-17-000, SA99-18-000, SA99-19-000, SA99-20-000. SA99- 21-000 (Not Consolidated)] Chevron U.S.A. Inc.; Notice of Petitions for Dispute Resolution or, Alternative, for Adjustment April 16, 1999. Take notice that Chevron U.S.A. Inc. (Chevron) filed the above- referenced petitions, requesting the Commission to resolve disputes concerning this Kansas ad valorem tax refund obligation to the pipelines listed below. ------------------------------------------------------------------------ Pipeline Docket No. Refund claim ------------------------------------------------------------------------ ANR Pipeline Company.............. \1\ SA99-17-000 $23,260.20 Northern Natural Gas Company...... \2\ SA99-18-000 494,814.97 Panhandle Eastern Pipe Line \3\ SA99-19-000 7,403.85 Company.......................... Colorado Interstate Gas Company... \4\ SA99-20-000 418,116.56 Williams Gas Pipelines Central, \5\ SA99-21-000 840,470.72 Inc.............................. ------------------------------------------------------------------------ \1\ Changed from GP99-2-000, filed March 9, 1999. \2\ Changed from GP99-3-000, filed March 11, 1999. \3\ Changed from GP99-4-000, filed March 9, 1999. \4\ Changed from GP99-5-000, filed March 10, 1999. \5\ Changed from GP99-6-000, filed March 10, 1999. Chevon requests that the Commission resolve its dispute with the pipelines by holding that settlements and/or release agreements resolved all issues, including those associated with Kansas ad valorem tax refund liabilities, between the parties. Chevron contends that by agreeing in the settlement to forego claims it for nonperformance it otherwise could have continued to pursue, Chevron agreed to accept total payments under the contracts that did not exceed the MLP ceilings multiplied by the total volumes represented by each pipeline's nonperformance. In such circumstances, no refund should be required. To order otherwise would prevent Chevron from receiving the very benefits it bargained for in the settlements-settlements that the Commission itself strongly encouraged as a means to resolve the massive take-or- pay and underpayments liabilities of interstate pipelines and make the transition to a more market-responsive and competitive environment. Chevron maintains that the pipelines and consumers benefitted from agreements and settlements because the settlements allowed the pipelines to avoid the much higher costs that full-performance of the contract would have entailed. By resolving ``all claims'' relating to, inter alia, ``contractual price'', the settlements resolved the Kansas ad valorem tax reimbursement issue. The Commission has found that these settlements served the public interest. Chevron also requests the Commission to establish procedures to verify the refund calculations in all dockets to ensure fairness and equity. Alternatively, Chevron requests that the Commission waive Chevron's refund liability pursuant to Section 501(c) of the NGPA. Chevron asserts that the Commission has equitable discretion to grant adjustment relief from this refund requirement. Since the tax reimbursement payments made by the pipelines were for taxes that Chevron in fact paid the State of Kansas, Chevron maintains it did not retain any revenues in excess of the MLPs. Chevron maintains that the equities in the case require the Commission to waive Chevron's refund obligation. At a minimum, Chevron continues the Commission should waive the royalty portion of the refund. Chevron notes that it sold its Kansas properties since 1988, and thus no longer has ongoing contractual relationships with its former Kansas royalty owners. The response from Chevron's former royalty owners to Chevron's mailing has been negligible. To engage in extensive searches or to pursue legal action against these interests would be a cost-prohibitive exercise in futility. Since Chevron has transferred or otherwise ended the leases in question here, and thus has no ongoing relationship with the royalty owners, let alone relationships that would permit Chevron to impose a unilateral reduction in future royalty payments as contemplated in Wylee. Chevron asserts that the royalty portion of the refund claim is uncollectible, as a practical matter, due to the passage of time and the Kansas statute of limitations. Chevron's petitions are on file with the Commission, and they are open to public inspection. This filing may be viewed on the web at http://www.ferc.fed.us/online/rims.htm (call 202-208-2222 for assistance). 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, NE, 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 [[Page 19756]] 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. Linwood A. Watson, Jr., Acting Secretary. [FR Doc. 99-10035 Filed 4-21-99; 8:45 am] BILLING CODE 6717-01-M