[Federal Register Volume 60, Number 89 (Tuesday, May 9, 1995)]
[Notices]
[Page 24627]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-11329]



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DEPARTMENT OF ENERGY

Louisiana Gas System Inc. and Conoco Inc., Complainants, vs. 
Panhandle Eastern Corporation and Centana Energy Corporation, et al., 
Respondents; Notice of Complaint and Motion for Cease and Desist Order

[Docket No. CP95-349-000]
May 3, 1995.
    Take notice that on April 24, 1995, Louisiana Gas System Inc. 
(LGS), P.O. Box 2197 (CH-1128), Houston, Texas 77252, and Conoco Inc. 
(Conoco), (jointly Complainants), 600 North Dairy Ashford, Houston, 
Texas 77079, filed a complaint with the Commission in Docket No. CP95-
349-000, pursuant to Rule 206 of the Commission's Rules of Practice and 
Procedure, against Panhandle Eastern Corporation (PECO) and Centana 
Energy Corporation (CECO), et al.,\1\ (jointly Respondents), alleging 
efforts to circumvent the Commission's authority under Section 7 of the 
Natural Gas Act (NGA) through the use of ``unregulated'' affiliates.

    \1\Among these parties are Centana Louisiana Pipeline (Centana 
Louisiana), a CECO subsidiary which operates as a Louisiana 
intrastate pipeline, and Centana Intrastate Pipeline Company 
(Centana Texas), a CECO subsidiary which operates as a Texas 
intrastate pipeline.
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    Complainants allege that PECO, through its regulated and 
unregulated subsidiaries, intends to construct and operate a 70-mile 
large diameter, high-pressure natural gas pipeline from its storage/
marketing hub at Spindletop, Jefferson County, Texas,\2\ to Gillis, 
Beauregard Parish, Louisiana, where the proposed pipeline would 
interconnect with existing interstate pipeline affiliates' facilities. 
Complainants state that as part of this project, CECO has recently 
filed for and received approval from the State of Louisiana Department 
of Natural Resources, Office of Conservation, Pipeline Division to 
construct and operate an ``intrastate'' pipeline.

    \2\Complainants state that they have not been able to obtain 
Texas Railroad Commission filings, if any exist, that would describe 
the details of the proposed Texas portion of the project.
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    CECO's proposed ``intrastate'' pipeline would begin at Trunkline 
Gas Company's (Trunkline is a PECO interstate subsidiary) proposed 
Sabine River Crossing at the Texas-Louisiana border. According to the 
Complainants, CECO's proposed 24-inch diameter ``intrastate'' pipeline 
would then proceed 35.30 miles in a northeasterly direction to 
interconnections with Trunkline and Texas Eastern Transmission 
Corporation (Texas Eastern is also a PECO interstate subsidiary).\3\ 
The 35.30-mile Louisiana portion of this pipeline system would complete 
a chain of affiliated interstate and ``intrastate'' pipelines from 
southern Texas to eastern Louisiana and beyond. The Louisiana portion 
of this proposed pipeline would have a 1,200 psig Maximum Allowable 
Operating Pressure (MAOP) and a capacity of 450 MMcf of natural gas per 
day.

    \3\The delivery capacities of the Trunkline and Texas Eastern 
interconnections in Louisiana would be 250 MMcf and 350 MMcf of 
natural gas per day, respectively.
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    Complainants allege that PECO and CECO are constructing the above 
pipeline with the intent of looping Texas Eastern's interstate mainline 
system. A map submitted in the complaint filing herein indicates that 
the combined Centana-Texas to Trunkline to Centana-Louisiana to Texas 
Eastern's system parallels the existing Texas Eastern mainline, and in 
fact, shares its right-of-way. Complainants state that the obvious 
intent is to expand Texas Eastern's mainline without seeking Commission 
certificate approval. Furthermore, Complainants allege that Centana-
Louisiana admits that its system serves as a bridge between Texas 
Eastern on its western end and Texas Eastern on its eastern end. 
Complainants also allege that all of the entities to this transaction 
are affiliated and shares corporate directors, officers, and addresses.
    Complainants, therefore, request that the Commission issue an 
immediate cease and desist order and direct a show cause order to the 
Respondents to explain why the proposed facilities do not require NGA 
certification, and further, that the matter be set for a full 
evidentiary hearing.
    Any person desiring to be heard or to make a protest with reference 
to LGS and Conoco's complaint should file with the Federal Energy 
Regulatory Commission, 825 North Capitol Street, N.E., Washington, D.C. 
20426, a motion to intervene or protest in accordance with the 
Commission's Rules of Practice and Procedure (18 CFR 385.211 or 
385.214). All such motions, together with the answer(s) of Respondents 
to the motion and to the Complaint, should be filed on or before May 
31, 1995. Any person desiring to become a party must file a motion to 
intervene. Copies of this filing are on file with the Commission and 
are available for public inspection.
Louis D. Cashell,
Secretary.
[FR Doc. 95-11329 Filed 5-8-95; 8:45 am]
BILLING CODE 6717-01-M