[Federal Register Volume 59, Number 96 (Thursday, May 19, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-12182]


[[Page Unknown]]

[Federal Register: May 19, 1994]


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DEPARTMENT OF ENERGY
[Docket No. CP94-533-000]

 

Tennessee Gas Pipeline Co.; Application

May 13, 1994
    Take notice that on May 6, 1994, Tennessee Gas Pipeline Company 
(Tennessee), P.O. Box 2511, Houston, Texas 77252, filed in Docket No. 
CP94-533-000 an application pursuant to section 7(b) of the Natural Gas 
Act for permission and approval to abandon an undivided 30 percent 
interest or, alternatively, an undivided 100 percent interests in its 
``San Salvador System'' and its ``La Rosa/Mustang Island System'' from 
interstate commerce.
    Tennessee proposes that the abandoned undivided 30 percent interest 
or, alternatively undivided 100 percent interest, would be transferred 
to Tennessee's indirect intrastate pipeline subsidiary, Channel 
Industries Gas Company (``Channel''). Tennessee states that the primary 
proposal to abandon and transfer an undivided 30 percent interest in 
these to Channel is based on discussions with, and at the request of, 
its customer that currently utilize these facilities. Tennessee 
proposes that Channel would operate all of the San Salvador and La 
Rosa/Mustang Island Systems under either the primary 30 percent or the 
alternative 100 percent transfer option.
    Tennessee identifies the facilities that it proposes to abandon as 
follows: The ``San Salvador System,'' which comprises all of 
Tennessee's facilities at and upstream of Station 1, is comprised of 
approximately 600 miles of various diameter pipeline facilities. It 
includes Tennessee's Station 1 and the San Salvador Line, which runs 
from Agua Dulce, Texas, south approximately 98 miles to the vicinity of 
Edinburg, Texas. The San Salvador line is comprised of a 26-inch 
diameter pipeline and a looped 16-inch diameter pipeline. Appurtenant 
to the San Salvador Line are: a 12-inch diameter pipeline 53 miles in 
length running from Duval County, Texas west of Station 1; 1 24-inch 
diameter pipeline 20 miles in length running south from Station 1 to 
Endinburg, Texas; five 12-inch diameter pipelines totalling 82 miles in 
length; and approximately 200 miles of smaller diameter pipeline 
facilities that connect into the San Salvador Line at numerous points 
in southern Texas. Tennessee states that there is no line compression 
on the San Salvador pipeline facilities other than at Station 1.
    The ``La Rosa/Mustang Island System'' interconnects with 
Tennessee's 100 Line approximately 42 miles downstream of Station 1, 
and extends from that point in a southeasterly direction approximately 
six miles, where it crosses Channel's ``A-S Pipe Line.'' From this 
crossing, the La Rosa/Mustang Island System continues southward into 
Corpus Christi Bay and Offshore Texas (in state waters). This system is 
comprised of: the ``La Rosa'' line, consisting of six miles of 10-inch 
diameter pipeline in Refugio County, Texas; the ``La Rosa-Mustang 
Island'' line, a 12-inch diameter pipeline 32 miles in length from 
Refugio County south into San Patricio County, Texas and on into Corpus 
Christi Bay; and an additional 22 miles of smaller diameter pipelines 
that connect into the La Rosa and Mustang Island lines in Refugio 
County, San Patricio County, and Offshore Texas.
    Tennessee's primary proposal is to transfer a 30 percent undivided 
interest in its San Salvador/La Rosa facilities to the capital of 
Channel at a net book value of approximately $5.2 million. Tennessee 
proposes, in the alternative, to transfer 100 percent of its San 
Salvador/La Rosa facilities to the capital of Channel at a net book 
value of $17.2 million. This $17.2 million net book value represents 
approximately 1.3 percent of Tennessee's rate base.
    Tennessee states that: (1) there will be no diminution in service 
to Tennessee's shippers; (2) Abandonment will increase utilization of 
the San Salvador/La Rosa facilities and enhance competition; (3) 
Abandonment will improve aggregation of supplies for Tennessee; and (4) 
The flexibility goals of the NGPA are better served.
    Tennessee notes in its application that Channel's intrastate rates 
and operations are regulated by the Railroad Commission of Texas, and 
that Channel also provides open-access transportation service in 
accordance with section 311(a)(2) of the NGPA pursuant to rates 
authorized by the Commission. Channel Industries Gas Co., 13 FERC 
62,042 (1980). Tennessee states that the Commission would retain 
jurisdiction over the rates charged by Channel for transportation on 
these facilities in interstate commerce pursuant to section 311 of the 
NGPA. Tennessee's proposals are set forth more fully in its 
application, which is on file and available for inspection at the 
Commission.
    Any person desiring to be heard or to make any protest with 
reference to said application should on or before June 3, 1994, file 
with the Federal Energy Regulatory Commission, 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 or 
385.211) and the Regulations under the Natural Gas Act (18 CFR 157.10). 
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 therein must file a motion to intervene in accordance with the 
Commission's Rules.
    Take further notice that, pursuant to the authority contained in 
and subject to the jurisdiction conferred upon the Federal Energy 
Regulatory Commission by Sections 7 and 15 of the Natural Gas Act and 
the Commission's Rules of Practice and Procedure, a hearing will be 
held without further notice before the Commission or its designee on 
this application if no motion to intervene is filed within the time 
required herein, if the Commission on its own review of the matter 
finds that permission and approval for the proposed abandonment are 
required by the public convenience and necessity. If a motion for leave 
to intervene is timely filed, or if the Commission on its own motion 
believes that a formal hearing is required, further notice of such 
hearing will be duly given.
    Under the procedure herein provided for, unless otherwise advised, 
it will be unnecessary for Tennessee to appear or be represented at the 
hearing.
Lois D. Cashell,
Secretary.
[FR Doc. 94-12182 Filed 5-18-94; 8:45 am]
BILLING CODE 6717-01-M