[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natural gas withdrawn will be replaced by nitrogen at a lower cost to 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