[Federal Register Volume 59, Number 208 (Friday, October 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-26706]


[Federal Register: October 28, 1994]


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DEPARTMENT OF ENERGY
[Docket No. CP95-18-000, et al.]


Natural Gas Pipeline Co. of America et al.; Natural Gas 
Certificate Filings

    Dated: October 19, 1994.

    Take notice that the following filings have been made with the 
Commission:

1. Natural Gas Pipeline Company of America; Columbia Gas 
Transmission Corporation; Columbia Gulf Transmission Company

[Docket No. CP95-18-000]

    Take notice that on October 13, 1994, Natural Gas Pipeline Company 
of America (Natural), 701 East 22nd Street, Lombard, Illinois 60148, 
Columbia Gas Transmission Corporation (Columbia Gas) and Columbia Gulf 
Transmission Company (Columbia Gulf), P.O. Box 1273, Charleston, West 
Virginia 25325, filed in Docket No. CP95-18-000 a joint application 
pursuant to Section 7(b) of the Natural Gas Act for permission and 
approval to abandon certain natural gas transportation and exchange 
services, all as more fully set forth in the application on file with 
the Commission and open to public inspection.

A. Abandonment of Transportation Authorized in Docket No. CP80-39

    Natural proposes to abandon an interruptible transportation service 
for Columbia Gas performed under Natural's Rate Schedule X-113 and 
authorized in Docket No. CP80-39.1 Natural states that the 
transportation agreement dated September 17, 1979, provides for 
Columbia Gas to deliver to Natural up to 70,000 Mcf of natural gas per 
day at the onshore terminus of the U-T Offshore System near Johnson's 
Bayou in Cameron Parish, Louisiana. Natural further states that the 
agreement provides for it to redeliver equivalent volumes of natural 
gas to Columbia Gulf, for the account of Columbia Gas, at Texaco's 
Henry Gas Plant in Vermilion Parish, Louisiana.2
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    \1\See 11 FERC  61,266 (1980).
    \2\It is stated that upon receipt of gas for Columbia Gas, 
Columbia Gulf redelivers the gas to Columbia Gas at Leach in Boyd 
County, Kentucky, pursuant to authorization issued in Docket No. G-
15524 (20 FPC 681 (1958)).
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B. Abandonment of Exchange Authorized in Docket No. CP80-432

    Natural, Columbia Gas and Columbia Gulf (the parties) propose to 
abandon an exchange service performed under Natural's Rate Schedule X-
124, Columbia Gas' Rate Schedule X-106 and Columbia Gulf's Rate 
Schedule X-80, jointly authorized in Docket Nos. CP80-432 and CP81-185, 
as amended.3 It is stated that pursuant to a natural gas exchange 
and interim transportation agreement dated June 25, 1980, up to 8,000 
Mcf of gas per day of Natural's gas produced in Vermilion Blocks 277 
and 287 and East Cameron Block 354, all offshore Louisiana, is 
exchanged with Columbia Gas, gas produced in South Marsh Island Block 
265, offshore Louisiana.
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    \3\See 18 FERC  62,492 (1982) and 34 FERC  62,287 (1986).
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    It is explained that the agreement provides for Columbia Gas to 
make available its South Marsh Island Block 265 gas to Natural, via ANR 
Pipeline Company (ANR),4 in South Marsh Island Block 265. In 
exchange, Natural delivers: (1) its Vermilion Blocks 277 and 287 gas to 
Columbia Gulf in Vermilion Block 267, for the account of Columbia Gas, 
and (2) its East Cameron Block 354 gas to Columbia Gulf in West Cameron 
Block 601, for the account of Columbia Gas.
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    \4\It is stated that ANR has received abandonment authorization 
(65 FERC  62,028 (1993)) for the transportation service it 
performed for Natural (15 FERC  61,072 (1981)).
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C. Abandonment of Transportation Authorized in Docket No. CP86-310

    Natural proposes to abandon an interruptible transportation service 
for Columbia Gas performed under Natural's Rate Schedule X-141 
authorized in Docket No. CP86-310-000.5 It is stated that, under a 
February 3, 1986, agreement, Natural receives for the account of 
Columbia Gas up to 85,000 MMBtu of natural gas per day from Ozark Gas 
Transmission System in White County, Arkansas, and redelivers the gas 
for the account of Columbia Gas to Columbia Gulf at: (a) Pecan Lake in 
Cameron Parish, Louisiana, (b) Texaco's Henry Gas Plant in Vermilion 
Parish, Louisiana, and (c) Erath in Vermilion Parish, Louisiana.
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    \5\See 34 FERC  62,461 (1986).
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D. Termination of Gas Transportation and Exchange Agreements

    It is stated that by letter agreements dated November 9, 1993, (as 
accepted by Natural by letter dated February 21, 1994), December 2 and 
7, 1993, and a notice dated January 10, 1994, the parties agreed to 
terminate the 1979, 1980, and 1986 agreements.
    Further, the parties advise that upon obtaining abandonment 
authorization, they would cancel:

(1) Natural's Rate Schedules X-113, X-124 and X-141,
(2) Columbia Gas' Rate Schedule X-106, and
(3) Columbia Gulf's Rate Schedule X-80.

    Comment date: November 9, 1994, in accordance with Standard 
Paragraph F at the end of this notice.

2. ANR Pipeline Company

[Docket No. CP95-20-000]

    Take notice that on October 13, 1994, ANR Pipeline Company (ANR), 
500 Renaissance Center, Detroit, Michigan 48243-1902, filed in Docket 
No. CP95-20-000 a request pursuant to Sections 157.205 and 157.216(b) 
of the Commission's Regulations under the Natural Gas Act (18 CFR 
157.205 and 157.216(b)) for authorization to abandon the South Stevens 
Point Meter Station located in Portage County, Wisconsin, under the 
blanket certificate issued in Docket No. CP82-480-000, pursuant to 
Section 7(b) of the Natural Gas Act, all as more fully set forth in the 
request which is on file with the Commission and open to public 
inspection.
    ANR is seeking abandonment authority because the station consists 
of two, 8-inch orifice meters which are oversized for the present 
volume demand. ANR proposes to abandon the South Stevens Point Meter 
Station because to use the station would require unnecessary and 
expensive downsizing to provide accurate measurement. In Docket No. 
CP94-713-000, ANR proposes to construct a new interconnection (Rosholt 
Interconnection) to provide continued service to Wisconsin Public 
Service Corporation (Public Service). ANR will continue to provide 
service through the South Stevens Point Meter Station until the new 
Rosholt Interconnection is in place and in service. ANR states that the 
abandonment will not result in any interruption of service. Public 
Service is the only customer served by this meter station. The cost of 
the facilities to be abandoned is approximately $61,000.
    Comment date: December 5, 1994, in accordance with Standard 
Paragraph G at the end of this notice.

3. Panhandle Eastern Pipe Line Company

[Docket No. CP95-21-000]

    Take notice that on October 14, 1994, Panhandle Eastern Pipe Line 
Company (Panhandle), P.O. Box 1642, Houston, Texas 77001, filed an 
application pursuant to Section 7(b) of the Natural Gas Act for 
authority to abandon by sale to Anadarko Gathering Company (AGC) a 
portion of Panhandle's pipeline and compressor facilities located in 
Seward, Morton and Stevens Counties, Kansas and Texas County, Oklahoma, 
and located west of its Liberal Compressor Station, and to abandon by 
transfer to Panhandle Field Services Company (Field Services), its 
subsidiary, 10 units of a compressor station located in Morton County, 
Kansas, all as more fully set forth in the application which is on file 
with the Commission and open to public inspection.
    Panhandle states that, in a further effort to improve the 
jurisdictional pipeline operations of the facilities located west of 
its Haven, Kansas Compressor Station, the abandonment proposed herein 
would enable Panhandle to streamline its jurisdictional operations, to 
reduce its existing transportation rates and to assure producers and 
shippers that gathering services in the future would not only continue 
to be available but would be provided on a more efficient and 
competitive basis.
    Panhandle proposes to abandon by sale to AGC approximately 126 
miles of pipeline, ranging in size of 6-inch to 26-inch in diameter, 7 
compressor stations, and 8 measuring and regulating stations, as more 
fully described in Exhibits Z-1 and Z-2 of its application. Panhandle 
states that the facilities would be sold at the book value of the 
facilities, $22,700,000. Panhandle also states that, in addition to the 
purchase price, AGC has also agreed to pay Panhandle $4.0 million to 
cover environmental-related costs and $1.3 million to cover the costs 
associated with the modifications to the Elkhart Station.
    It is indicated that Panhandle states that the purchase of its 
Hugoton Area facilities by AGC, who currently has a gathering system in 
a portion of the Hugoton Area, the HUGS System, would eliminate the 
need for the further construction by AGC of duplicative facilities and 
would allow Panhandle to continue its effort to utilize and operate its 
system in the most efficient manner and in an effort to continue 
providing the best service it can to its customers. Panhandle further 
states that the authorization of the abandonment would serve the public 
interest by reducing jurisdictional rate base and related cost of 
service, thereby having an impact on Panhandle's current Field Zone 
transmission rates.
    Panhandle also proposes to abandon by transfer to Field Services 10 
units at the Elkhart Compressor Station located in Morton County, 
Kansas. Panhandle indicates that, if the remaining units at the station 
were not transferred to Field Services, they would become a non-
contiguous isolated compressor station in the middle of gathering 
systems operated by AGC and Field Services. Panhandle states that these 
facilities would be transferred to Field Services at the net book value 
of those facilities, $1,472,440.
    Comment date: November 9, 1994, in accordance with Standard 
Paragraph F at the end of this notice.

4. Anadarko Gathering Company

[Docket No. CP95-22-000]

    Take notice that on October 14, 1994, Anadarko Gathering Company 
(AGC), 17001 Northchase Drive, Houston, Texas 77251, filed a petition 
for declaratory order in Docket No. CP95-22-000, as supplemented on 
October 17, 1994, requesting that the Commission declare that AGC's 
proposed acquisition, ownership, and operation of certain natural gas 
gathering systems and other facilities currently owned by Panhandle 
Eastern Pipe Line Company (Panhandle) would not subject AGC or any 
portion of its facilities or services to the jurisdiction under the 
Natural Gas Act (NGA), all as more fully set forth in the petition 
which is on file with the Commission and open to public inspection.
    AGC seeks a declaratory order finding that:
     The facilities described in its petition that AGC wishes 
to acquire from Panhandle will be gathering facilities exempt from the 
Commission's jurisdiction pursuant to Section 1(b) of the Natural Gas 
Act;
     AGC will not be a ``natural gas company'' pursuant to 
Section 2 of the Natural Gas Act by virtue of its proposed acquisition, 
ownership, and operation of such facilities;
     The gathering services to be performed by AGC will be non-
jurisdictional gathering services exempt from the Commission's 
jurisdiction under Section 1(b) of the Natural Gas Act; and
     AGC's rates, and charges for gathering services will not 
be subject to the Commission's jurisdiction pursuant to Sections 4 and 
5 of the Natural Gas Act.
    AGC states that it is a wholly-owned subsidiary of Anadarko 
Petroleum Corporation (Anadarko). AGC indicates that it would acquire 
facilities directly from Panhandle as well as facilities currently 
owned by Panhandle but proposed in Docket No. CP94-151-000 to be 
transferred to Panhandle Field Services Company, Panhandle's affiliate.
    It is indicated that recently Panhandle and AGC (APC) concluded 
negotiations concerning the sale to AGC of Panhandle's Hugoton System. 
It is indicated that AGC's affiliate, Anadarko Petroleum Corporation 
(Anadarko) produces approximately 76 percent of the natural gas 
connected to the subject facilities. AGC states that, subsequent to the 
transfer of facilities by Panhandle, it would upgrade the subject 
facilities to maximize productive capacities of the wells connected to 
the system. AGC also indicates that it would offer continuity of 
service to all existing gathering customers.
    It is argued that the facilities to be transferred to AGC meet the 
physical and non-physical criteria for determining gathering as set 
forth in Farmland Industries, Inc., 23 FERC  61.063 (1983), as 
modified by subsequent Commission orders. AGC states that the vast 
majority of the 1,147 miles of pipe are short in length and range from 
2 to 26 inches in diameter, with 71 percent being 10 inches or less in 
diameter. AGC indicates that of the 29 percent of the facilities 12 
inches in diameter or larger, all but 31 miles of the pipe are located 
behind field booster stations. AGC also indicates that the 31 miles of 
pipe on the discharge side of the Hugoton Compressor Station still 
serve to aggregate area gas production. Also, AGC submits that all of 
the facilities are located upstream of the Liberal Compressor Station, 
which it indicates is the central point in the field.
    In addition, AGC states that virtually all of the gathering systems 
are web-like or rib-like in configuration, with the facilities being 
located in a production area forming a network of short-length 
pipelines originating at wells and connecting to aggregation points. It 
is also indicated that the gathering facilities contain a total of 57 
field booster compressor stations. AGC indicates that the suction 
pressures of the booster stations range from 30 to 375 psig, with 46 of 
the 57 stations having a suction pressure of less than 100 psig. AGC 
also states that wells are located all along the facilities. With 
respect to the operating pressure of the lines, a review of the 
operational pressures reveals that 87 percent of the pipelines operate 
below 100 psig, 10 percent operate above 100 psig but less than 450 
psig, and 31 miles of pipe operate at above 450 psig.
    With respect to the non-physical criteria, AGC notes that Anadarko, 
its affiliate is primarily engaged in the exploration and production of 
natural gas and petroleum, with a working interest in 833 wells 
attached to the subject facilities. AGC also indicates that substantial 
effort would be expended to upgrade the gathering facilities to 
maximize the efficient production on natural gas benefitting both 
producers with wells connected to the gathering facilities and 
consumers consistent with the objectives of the NGA, Natural Gas Policy 
Act of 1978, and the Commission's Order No. 636.
    AGC requests that its petition be consolidated with Panhandle's 
abandonment application filed in Docket No. CP95-21-000 which involves 
the abandonment by sale to Anadarko of a portion of the facilities at 
issue in AGC's petition.
    Comment date: November 18, 1994, in accordance with the first 
paragraph of Standard Paragraph F at the end of this notice.

5. Panhandle Field Services Company

[Docket No. CP95-23-000]

    Take notice that on October 14, 1994, Panhandle Field Services 
Company (Field Services), 5400 Westheimer Court, Houston, Texas 77056-
5310 filed a petition for declaratory order in Docket No. CP95-23-000, 
requesting that the Commission disclaim jurisdiction over services to 
be performed by Field Services involving facilities to be acquired from 
its affiliate, Panhandle Eastern Pipe Line Company (Panhandle), all as 
more fully set forth in the petition which is on file with the 
Commission and open to public inspection.
    Field Services seeks a declaratory order finding that:
     Panhandle's South Elkhart Station and related facilities 
in Morton County, Kansas are facilities to be used for the gathering of 
natural gas and therefore exempt from the Commission's jurisdiction 
pursuant to Section 1(b) of the Natural Gas Act;
     Field Services will not be a ``natural gas company'' 
pursuant to Section 2(6) of the Natural Gas Act by virtue of its 
proposed acquisition, ownership, and operation of such facilities;
     Field Services' rates, and charges for gathering services 
will not be subject to the Commission's jurisdiction pursuant to 
Sections 4 and 5 of the Natural Gas Act.
    Field Services states that it is a wholly-owned subsidiary of 
Panhandle and that the facilities at issue in this petition are the 
subject of Panhandle's abandonment application filed in Docket No. 
CP95-21-000.
    It is indicated that recently Panhandle and Anadarko Gathering 
Company (AGC) concluded negotiations concerning the sale to AGC of 
Panhandle's Hugoton System. Field Services states that the sale of the 
Hugoton System to AGC includes a portion of the Elkhart Compressor 
Station in Kansas. It is stated that Panhandle proposes to sell a part 
of the Elkhart Station facilities to AGC and the remainder would be 
transferred to Field Services with Field Services operating its portion 
of the Elkhart Station facilities in conjunction with the other 
gathering facilities it is acquiring from Panhandle.
    It is also stated that, as currently configured, the Elkhart 
Station is located in Morton County, Kansas immediately downstream of 
gathering facilities which are the subject of the Panhandle and Field 
Services' filings in Docket Nos. CP94-151-000 and CP94-152-000, 
respectively. Field Services indicates that the Elkhart Station is 
divided by a county road, but the two portions are currently 
integrated. It is also stated that, as a result of the sale of the 
Panhandle Hugoton System to AGC, Panhandle proposes to split the 
Elkhart Station between AGC and Field Services. It is indicated that 
Panhandle would transfer the portion south of the county road, 
consisting of four 1,028 horsepower two-stage skid-mounted compressors 
and six 1,100 horsepower single-stage block-mounted compressors, to 
Field Services. Field Services states that these facilities compress 
the gas gathered on the Elkhart Gathering System for delivery into the 
24-inch line to be transferred to AGC. Field Services states that the 
portion of the facilities located north of the county road, consisting 
of one 3,162 horsepower four-stage compressor, would be transferred to 
AGC.
    Field Services states that, subsequent to the transfer of 
facilities by Panhandle, significant modifications would be undertaken 
to separate completely the operation of the South Elkhart Station from 
the North Elkhart Station so that the two would be operated 
independently and would no longer be integrated. It is also indicated 
that, upon the transfer of the Panhandle Hugoton Gathering System to 
AGC and the transfer of the remaining gathering to Field Services, the 
South Elkhart Station would not be contiguous with any other facilities 
owned or operated by Panhandle.
    Field Services argues that, as a matter of law, the facilities to 
be transferred to Field Services are within the gathering and 
production exemption of Section 1(b) of the Natural Gas Act because; 
and that, after the reconfiguration of facilities, the sole function of 
the South Elkhart Station would be to boost the pressure of the gas 
produced behind the station from a suction pressure of 50 psig to a 
pressure high enough (450 psig) so that the gas can be delivered into 
the 24-inch discharge line.
    Comment date: November 18, 1994, in accordance with the first 
paragraph of Standard Paragraph F at the end of this notice.

Standard Paragraphs

    F. Any person desiring to be heard or to make any protest with 
reference to said application should on or before the comment date, 
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 a grant of the certificate and/or 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 applicant to appear or be represented at the 
hearing.
    G. Any person or the Commission's staff may, within 45 days after 
issuance of the instant notice by the Commission, file pursuant to Rule 
214 of the Commission's Procedural Rules (18 CFR 385.214) a motion to 
intervene or notice of intervention and pursuant to Section 157.205 of 
the Regulations under the Natural Gas Act (18 CFR 157.205) a protest to 
the request. If no protest is filed within the time allowed therefor, 
the proposed activity shall be deemed to be authorized effective the 
day after the time allowed for filing a protest. If a protest is filed 
and not withdrawn within 30 days after the time allowed for filing a 
protest, the instant request shall be treated as an application for 
authorization pursuant to Section 7 of the Natural Gas Act.
Lois D. Cashell,
Secretary.
[FR Doc. 94-26706 Filed 10-27-94; 8:45 am]
BILLING CODE 6717-01-P