[Federal Register Volume 60, Number 105 (Thursday, June 1, 1995)]
[Notices]
[Page 28601]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-13308]



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DEPARTMENT OF ENERGY

Southern Natural Gas Company; Notice of Petition for Declaratory 
Order

[Docket No. CP95-506-000]
May 25, 1995.
    Take notice that on May 22, 1995, Southern Natural Gas Company 
(Southern), AmSouth-Sonat Tower, 1900 Fifth Avenue North, Birmingham, 
Alabama 35203, filed a petition in Docket No. CP95-506-000, requesting 
that the Commission declare that Southern's Miley Line, located in the 
Lockhart Crossing Field, Livingston Parish, Louisiana, is a gathering 
line exempt from the provisions of 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.
    Southern proposes to sell its Miley Line, a natural gas pipeline 
extending approximately 7,800 feet from the Miley #1 well to Amoco 
Production Company's (Amoco) central dehydration and separation 
facility. It is stated that on April 9, 1995, Southern and Amoco 
entered into a settlement agreement to amend certain pricing provisions 
of gas purchase contracts and to provide for the sale by Southern to 
Amoco of the Miley Line. Under the terms of the settlement agreement, 
Amoco will purchase the Miley Line from Southern at its remaining book 
value, upon the issuance by the Commission of a declaratory order 
disclaiming jurisdiction over the pipeline.
    Southern submits that its Miley Line is a ``gathering facility'' 
under Section 1(b) of the NGA as interpreted by the Commission under 
the ``modified primary function'' test, as set forth in Amerada Hess 
Corp., et al., as amended. 52 FERC para. 61,268 (1990). Southern notes 
that characteristic of gathering lines, the Miley Line is a very short, 
small-diameter pipeline, less than two miles long and four inches in 
diameter. Southern argues that the central point in the field analysis 
is inappropriate in this case because the Miley Line feeds the natural 
gas it collects into the Amoco Plant for processing. Southern states 
that there are no compressor facilities located along the Miley Line, 
consistent with the requirement of minimal compression on gathering 
facilities. Southern notes that the Miley Line is located completely 
behind a processing plant, with volumes flowing from the point of 
production at the Miley #1 well to the Amoco Plant, strongly supporting 
a finding that the facility performs a gathering function. Southern 
further notes that the Miley Line begins at the Miley #1 well, 
satisfying the requirement that wells be located along all or part of 
the facilities. Southern states that the gas gathered by the Miley Line 
is untreated rather than ``pipeline quality'', a characteristic found 
to be consistent with the gathering function. Finally, Southern relates 
that upon Amoco's purchase of the pipeline, the Miley Line will be 
owned and operated by a traditionally unregulated corporation which 
will continue in its historic practice of moving its own gas production 
to its various customers through its capacity in the line. Southern 
reports that Amoco presently performs no jurisdictional transportation 
functions in the Lockhart Crossing Field.
    Any person desiring to be heard or to make any protest with 
reference to said petition should on or before June 15, 1995, file with 
the Federal Energy Regulatory Commission, 825 North Capitol Street, 
N.E., 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). 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.
Lois D. Cashell,
Secretary.
[FR Doc. 95-13308 Filed 5-31-95; 8:45 am]
BILLING CODE 6717-01-M