[Federal Register Volume 60, Number 122 (Monday, June 26, 1995)]
[Notices]
[Pages 32952-32953]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-15505]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket No. CP95-565-000]
Equitrans, Inc.; Notice of Application
June 20, 1995.
Take notice that on June 15, 1995, Equitrans, Inc. (Equitrans),
3500 Park Lane, Pittsburgh, Pennsylvania 15275, filed in Docket No.
CP95-500-000 an application pursuant to Section 7(c) of the Natural Gas
Act for a certificate of public convenience and necessity authorizing
Equitrans to recove the costs associated with implementing a new
technology for decreasing the investment in cushioning storage
reservoirs by replacing the natural gas serving as cushion gas in
Equitrans' Shirley reservoir in Tyler and Doddridge Counties, West
Virginia with nitrogen, all as more fully set forth in the application
which is on file with the Commission and open to public inspection.
Equitrans proposes to inject up to 300 Mmcf of nitrogen into the
existing Shirley storage reservoir, but states that the reservoir will
not be physically enlarged. According to Equitrans, less of the natural
gas will need to remain in the reservoir to maintain the working
capacity and deliverability of the reservoir, and the former cushion
gas replaced with nitrogen will thereby be available for withdrawal,
sale and public consumption. Equitrans proposes that the cushion
natural gas withdrawn will be replaced by nitrogen at a lower cost to
Equitrans' ratepayers.
In order to execute this procedure Equitrans state that it will
contract with a third party to install temporary facilities at the
surface of the Shirley reservoir to produce the nitrogen needed for
injection. The nitrogen generation facilities will be installed and
removed by the provider. It is stated that the cost of constructing
these facilities will be included in the unit cost of nitrogen which
will be purchased by Equitrans at the point of injection. Equitrans
states that the wells that will be used in this project are owned and
operated by an independent producer of natural gas. It is stated that
these wells were dually completed to allow access by Equitrans to the
storage formation. Under an existing operating and farmout agreement
between Equitrans and the producer, Equitrans states that it will
withdraw cushion natural gas from the storage reservoir for one year
prior to injecting nitrogen. Equitrans proposes to commence nitrogen
injection in late 1996 or early 1997.
Equitrans states that the natural gas that will be replaced as
cushion gas by nitrogen under this proposal is currently reflected in
Equitrans' ratebase at $1.10 per Mcf. Upon the sale of the natural gas
that no longer needs to remain in the reservoir as cushion rates,
Equitrans proposes to credit its ``Account 117, Gas stored
udnerground--noncurrent'' by the amount that the gas is currently
reflected in the rate base. Equitrans states that it will
correspondingly debit the appropriate rate base account for the lower
cost of the nitrogen. Equitrans contends that this rate base reduction
will be included in rate base accounts chargeable to Equitrans'
jurisdictional customers. It is stated that the cost of service impact
of this rate base reduction will be included in Equitrans' next general
Section 4(e) rate filing to be made in August of 1997, and will provide
customers with rate benefits while maintaining the same level and
reliability of storage service.
Equitrans further requests that the certificate issued herein
provides that in the event of project failure, Equitrans be guaranteed
recovery of the current book value of its Shirley facilities, together
with a return on its investment in these facilities. Equitrans states
that this regulatory protection is consistent with the Commission's
treatment of the coal gasification projects undertaken in the 1970s.
Equitrans states that its proposal to offer its Shirley reservoir
as a demonstration site will culminate the effort begun by the Gas
Research Institute (GRI) in 1985 that has involved a variety of
industry participants. It is stated that the potential benefits to the
public of this project are significant, given the readily transferable
nature of the technology to Equitrans' other storage reservoirs and to
other storage operators in the industry. [[Page 32953]]
Any person desiring to be heard or to make any protest with
reference to said application should on or before July 11, 1995, file
with the Federal Energy Regulatory Commission, Washington, D.C. 20436,
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 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 with 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 is 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 Equitrans to appear or be represented at the
hearing.
Lois D. Cashell,
Secretary.
[FR Doc. 95-15505 Filed 6-23-95; 8:45 am]
BILLING CODE 6717-01-M