[Federal Register Volume 63, Number 80 (Monday, April 27, 1998)]
[Notices]
[Page 20617]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-11049]


-----------------------------------------------------------------------

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. GP98-31-000]


Great Eastern Energy and Development Corporation; Notice of 
Petition for Dispute Resolution

April 21, 1998.
    Take notice that, on March 23, 1998, Great Eastern Energy and 
Development Corporation (Great Eastern) filed a petition requesting the 
Commission to resolve a dispute between Great Eastern and Panhandle 
Eastern Pipe Line Company (Panhandle) as to whether Great Eastern has 
any Kansas ad valorem tax refund liability to Panhandle on behalf of 
Patton Oil Company (Patton). The Commission, by order issued September 
10, 1997, in Docket No. RP97-369-000 et al,\1\ on remand from the D.C. 
Circuit Court of Appeals,\2\ required first sellers to refund the 
Kansas ad valorem tax reimbursements to the pipelines, with interest, 
for the period from 1983 to 1988. In its January 28, 1998 Order 
Clarifying Procedures, the Commission stated that producers (i.e., 
first sellers) could file dispute resolution requests with the 
Commission, asking the Commission to resolve the dispute with the 
pipeline over the amount of Kansas ad valorem tax refunds owed, see 82 
FERC para. 61,059 (1998). Great Eastern's petition is on file with the 
Commission and open to public inspection.
---------------------------------------------------------------------------

    \1\ See 80 FERC para. 61,264 (1997); order denying reh'g issued 
January 28, 1998, 82 FERC para. 61,058 (1998).
    \2\ 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).
---------------------------------------------------------------------------

    Great Eastern contends that it has no Kansas ad valorem tax refund 
liability to Panhandle for the following reasons: (1) Great Eastern 
acquired Patton in 1985 and kept it as a wholly-owned subsidiary of 
Great Eastern, because Patton owed $4,000,000 to Northern Trust of 
Chicago (Northern Trust); (2) in 1986; Great Eastern negotiated a 
purchase of the note from Northern Trust, whereupon Great Eastern 
became the holder of that note; (3) Patton was never merged into Great 
Eastern; and (4) in 1991, Great Eastern foreclosed on all of the 
properties that Patton had given to Northern Trust as security for the 
note, but took title to those properties in lieu of foreclosing, 
leaving Patton with no assets. Great Eastern adds that Patton no longer 
operates in the State of Kansas. In view of the above, Great Eastern 
contends that it should not be held liable for any Kansas ad valorem 
tax refunds owed by Patton.
    Any person desiring to comment on or make any protest with respect 
to any of the above-referenced petitions should, on or before May 12, 
1998, file with the Federal Energy Regulatory Commission, 888 First 
Street, N.E., Washington, D.C. 20426, a motion to intervene or protest 
in accordance with the requirements of the Commission's Rules of 
Practice and Procedure (18 CFR 385.214 or 385.211). 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 the 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. 98-11049 Filed 4-24-98; 8:45 am]
BILLING CODE 6717-01-M