[Federal Register Volume 60, Number 160 (Friday, August 18, 1995)]
[Notices]
[Pages 43143-43146]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-20487]



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DEPARTMENT OF ENERGY
[Docket No. CP95-639-000, et al.]


Shell Offshore Inc., et al.; Natural Gas Certificate Filings

August 11, 1995.
    Take notice that the following filings have been made with the 
Commission:

1. Shell Offshore Inc.

[Docket No. CP95-639-000]

    Take notice that on July 24, 1995, Shell Offshore Inc. (SOI), P.O. 
Box 576, Houston, Texas 77079, filed in Docket No. CP95-639-000 a 
petition pursuant to Section 16 of the Natural Gas Act (NGA) and Rule 
207(a)(2) of the Commission's Rules of Practice and Procedure (18 CFR 
385.207 (a)(2)), for a declaratory order disclaiming Commission 
jurisdiction over a certain facility and the services provided through 
it, all as more fully set forth in the petition which is on file with 
the Commission and open to public inspection.1

    \1\ SOI indicates that a related application was being filed 
concurrently in Docket No. CP95-640-000 by Transco and FGT, 
requesting authorization to abandon the facilities by sale to SOI.
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    SOI requests a declaratory order from the Commission finding that 
the acquisition, ownership and operation by SOI of a natural gas meter 
facility presently owned by Transcontinental Gas Pipe Line Company 
(Transco) and Florida Gas Transmission Company (FGT) will not subject 
SOI, or any portion of its facilities or services to the Commission's 
jurisdiction under the Natural Gas Act (NGA) or the Commission's 
Regulations thereunder. Restated, SOI seeks an order finding that (1) 
the meter facility would be exempt from Commission jurisdiction 
pursuant to the ``production and gathering exemption'' in Section 1(b) 
of the NGA, and (2) SOI would not become a ``natural gas company'' 
pursuant to Section 2 of the NGA by virtue of the proposed acquisition, 
ownership and operation of the facility. SOI states that it is a wholly 
owned indirect subsidiary of Shell Oil Company, and is engaged 
primarily in the business of exploring for and producing oil and 
natural gas in the Gulf of Mexico.
    SOI states that it has entered into an agreement with Transco and 
FGT whereby it would purchase the natural gas meter facility located at 
the tailgate of its Yellowhammer gas treatment plant near Coden in 
Mobile County, Alabama. SOI states that the meter facility is currently 
used to measure residue gas leaving the tailgate of the Yellowhammer 
plant for delivery into the Mobile Bay area jurisdictional 
transportation facilities of Transco and FGT (the Onshore Mobile Bay 
Pipeline).
    SOI advises that the meter facility is classified by Transco for 
jurisdictional ratemaking purposes as a gathering facility, and 
shippers moving gas through Transco's capacity in the meter facility 
must pay Transco's separately stated gathering charge under its 
transportation rate schedules. Further, SOI advises that FGT does not 
have a separately stated gathering charge for services rendered through 
the meter 

[[Page 43144]]
facility. SOI states that, upon acquisition by SOI, the meter facility 
would become part of SOI's Yellowhammer gas treatment plant facilities. 
SOI advises that thereafter shippers on the Transco system would no 
longer be required to pay Transco's separately stated gathering charge 
for transportation service from the plant.
    Comment date: September 1, 1995, in accordance with the first 
paragraph of Standard Paragraph F at the end of this notice.

2. Transcontinental Gas Pipe Line Corporation and Florida Gas 
Transmission Company

[Docket No. CP95-640-000]

    Take notice that on July 25, 1995, Transcontinental Gas Pipe Line 
Corporation (Transco), P.O. Box 1396, Houston, Texas 77251, and Florida 
Gas Transmission Company (Florida) (Transco and Florida are referred to 
jointly as Applicants), 1400 Smith Street, P.O. Box 1188, Houston, 
Texas 77251-1188, filed in Docket No. CP95-640-000 an application 
pursuant to Section 7(b) of the Natural Gas Act for permission and 
approval to abandon a jointly owned meter facility which was authorized 
in Docket No. CP88-570, et al.,2 all as more fully set forth in 
the application on file with the Commission and open to public 
inspection.3

    \2\ The meter facility was constructed by Transco as part of the 
Mobile Bay Lateral pursuant to the certificate of public convenience 
and necessity granted by order issued June 4, 1991, in Docket Nos. 
CP88-570, et al., 55 FERC para.61,358 (1991). Florida acquired its 
37.22% ownership interest in the Mobile Bay Lateral pursuant to the 
authorizations granted in Docket Nos. CP92-182, et al. See Florida 
Gas Transmission Co., et al., 62 FERC para.61,024 (1993); 63 FERC 
para.61,093 (1993); and 66 FERC para.61,160 (1994).
    \3\ It is indicated that SOI filed a related petition in Docket 
No. CP95-639-000 for an order from the Commission declaring the 
metering facilities non-jurisdictional upon their acquisition by 
SOI.
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    Applicants propose to abandon by sale to Shell Offshore Inc. (SOI) 
the Yellowhammer Meter Station located just downstream (0.20 mile) of 
SOI's gas treatment facility, located near Coden in Mobile County, 
Alabama. It is indicated that the meter is used to measure natural gas 
treated by SOI and delivered into the Mobile Bay Lateral (also known as 
the Onshore Mobile Bay Pipeline). Applicants state that SOI has agreed 
to pay the net book value of the facility as of the closing of the 
purchase and sale. Applicants advise that the estimated net book value 
of the meter facility is $318,612 as of August 31, 1995.
    Applicants explain that the meter facility is currently classified 
for rate purposes on Transco's system as a gathering facility, and, 
therefore, shippers moving gas through Transco's capacity in the meter 
facility must pay Transco's separately stated gathering charge under 
its transportation rate schedules. (Florida does not have a separately 
stated gathering charge for services rendered through the meter 
facility.) It is stated that, by transferring ownership of the meter 
facility to SOI, the meter facilities would be considered as part of 
SOI's gas treatment operations and, as a result, Transco's shippers no 
longer would incur Transco's separately stated gathering charge for 
transportation service from the plant.
    Comment date: September 1, 1995, in accordance with Standard 
Paragraph F at the end of this notice.

3. K N Interstate Gas Transmission Company

[Docket No. CP95-671-000]

    Take notice that on August 8, 1995, K N Interstate Gas Transmission 
Co. (K N Interstate), P.O. Box 281304, Lakewood, Colorado 80228-8304, 
filed in Docket No. CP95-671-000 a request pursuant to Sections 157.205 
and 157.212 of the Commission's Regulations under the Natural Gas Act 
(18 CFR 157.205, 157.212) for authorization to install and operate a 
new delivery tap under K N Interstate's blanket certificate issued in 
Docket No. CP83-140-000, et al., pursuant to Section 7 of the Natural 
Gas Act, all as more fully set forth in the request that is on file 
with the Commission and open to public inspection.
    K N Interstate proposes to install and operate a new delivery tap 
in Dawes County, Nebraska. This tap will be added as a delivery point 
under an existing transportation agreement between K N Interstate and K 
N Energy Inc. (K N) and will be used by K N to facilitate the delivery 
of natural gas to a direct retail customer.
    Comment date: September 25, 1995, in accordance with Standard 
Paragraph G at the end of this notice.

4. Tennessee Gas Pipeline Company

[Docket No. CP95-672-000]

    Take notice that on August 8, 1995, Tennessee Gas Pipeline Company 
(Tennessee), P.O. Box 2511, Houston, Texas 77252, filed in Docket No. 
CP95-672-000 a request pursuant to Sections 157.205 and 157.212 of the 
Commission's Regulations under the Natural Gas Act (18 CFR 157.205 and 
157.212) and under its blanket authority issued in Docket No. CP82-413-
000 pursuant to Section 7 of the Natural Gas Act, for authorization to 
upgrade an existing delivery point for its customer, the Hardeman-
Fayette Utility District (Hardeman-Fayette), all as more fully set 
forth in the request which is on file with the Commission and open to 
public inspection.
    Specifically, Tennessee proposes to upgrade the Hardeman-Fayette 
delivery point located at Tennessee's M.P. 70-4+10.17 in Hardeman 
County, Tennessee, by replacing an existing check valve and 
approximately 165 feet of 1-inch interconnecting pipe with 2-inch pipe, 
running from the 2-inch tap valve on Tennessee's 100-4 Line to the 
Hardeman-Fayette Meter. Additionally, Tennessee will replace the pipe 
within the meter station from 1-inch to 2-inch.
    Tennessee states that the total quantities to be delivered to 
Hardeman-Fayette will not exceed the total quantities authorized. 
Finally, Tennessee asserts that the upgrade of this facility is not 
prohibited by its tariff, and that it has sufficient capacity to 
accomplish deliveries without detriment or disadvantage to any of 
Tennessee's other customers.
    Tennessee states that the estimated cost for installation of the 
facilities is $29,800.
    Comment date: September 25, 1995, in accordance with Standard 
Paragraph G at the end of this notice.

5. Northwest Pipeline Corporation

[Docket No. CP95-674-000]

    Take notice that on August 8, 1995, Northwest Pipeline Corporation 
(Northwest), 295 Chipeta Way, Salt Lake City, Utah 84158, filed in 
Docket No. CP95-647-000 a request pursuant to Sections 157.205, 
157.216, and 157.211 of the Commission's Regulations under the Natural 
Gas Act (18 CFR 157.205, 157.216, and 157.211) for permission and 
approval to abandon certain facilities and authorization to construct 
and operate replacement facilities, under Northwest's blanket 
certificate issued in Docket No. CP82-433-000 pursuant to Section 7 of 
the Natural Gas Act, all as more fully set forth in the request that is 
on file with the Commission and open to public inspection.
    Specifically, Northwest proposes to modify the Redmond Meter 
Station in King County, Washington, to more efficiently accommodate 
existing firm maximum daily delivery obligations at this delivery point 
to Washington Natural Gas Company. Northwest states that the proposed 
facility replacement will increase the maximum design capacity of the 
meter station from 43,333 Dth per day to approximately 50,331 Dth per 
day. The total cost of the proposed facility modification at the 
Redmond Station is estimated to be approximately $107,650. 

[[Page 43145]]

    Comment date: September 25, 1995, in accordance with Standard 
Paragraph G at the end of this notice.

6. Williston Basin Interstate Pipeline Company

[Docket No. CP95-675-000]

    Take notice that on August 8, 1995, Williston Basin Interstate 
Pipeline Company (Williston Basin), Suite 300, 200 North Third Street, 
Bismarck, North Dakota 58501, filed in Docket No. CP95-675-000 a 
request pursuant to Sections 157.205 and 157.211 of the Commission's 
Regulations under the Natural Gas Act (18 CFR 157.205, 157.211) for 
authorization to install a meter and regulator at an existing tap site 
to effectuate natural gas transportation deliveries to Montana-Dakota 
Utilities Co. (Montana-Dakota), a local distribution company, under 
Williston Basin's blanket certificate issued in Docket No. CP83-1-000 
pursuant to Section 7 of the Natural Gas Act, all as more fully set 
forth in the request that is on file with the Commission and open to 
public inspection.
    Williston Basin proposes to install a meter and regulator at an 
existing tap site located in Lawrence County, South Dakota to enable it 
to provide natural gas deliveries to Montana-Dakota for ultimate 
delivery to approximately twenty-six additional residential customers. 
Williston Basin states that it would provide up to 5 Mcf per day 
additional service to Montana-Dakota under its Rate Schedules FT-1 and/
or IT-1 and that such volume is within the certificated entitlements of 
the customer. Williston Basin further states that the proposed service 
will have no significant effect on its peak day or annual requirements.
    Williston Basin states that the total cost to install the meter and 
regulator is approximately $2,250 and that the actual cost of the 
facilities is 100% reimbursable by Montana-Dakota.
    Comment date: September 25, 1995, in accordance with Standard 
Paragraph G at the end of this notice.

7. Texas Eastern Transmission Corporation

[Docket No. CP95-681-000]

    Take notice that on August 10, 1995, Texas Eastern Transmission 
Corporation (Texas Eastern), P.O. Box 1642, Houston, Texas 77251-1642, 
filed in Docket No. CP95-681-000 an application, pursuant to Section 
7(c) of the Natural Gas Act, for a certificate of public convenience 
and necessity for authorization to construct, install, own, operate and 
maintain an additional 700 horsepower of compression facilities at its 
existing Gas City Compressor Station on the Lebanon Lateral, and to 
revise, restate and reduce its currently effective Part 284 rates for 
Rate Schedules LLFT and LLIT services, all as more fully set forth in 
the application which is on file with the Commission and open to public 
inspection.
    Texas Eastern proposes to upgrade by 700 horsepower its existing 
reciprocating compressor unit at Gas City, Grant County, Indiana from 
the current 2,700 horsepower up to a total of 3,400 horsepower to 
increase natural gas transportation capacity on the Lebanon Lateral by 
approximately 29,944 dt equivalent on natural gas per day. To 
accomplish this increase, Texas Eastern states that it would construct 
and install two additional power cylinders and modify the turbocharger 
at the existing 2,700 horsepower Gas City unit. After installation of 
the facilities proposed herein, Texas Eastern states that the maximum 
operational capacity of the Lebanon Lateral would be 359,220 dt 
equivalent per day. Texas Eastern states that the estimated total 
capital cost of the proposed facilities is approximately $224,000, to 
be financed initially with funds on hand. Texas Eastern also states 
that the proposed facilities would be located entirely within the 
existing Gas City compressor station building.
    Texas Eastern also requests authorization herein to file a limited 
rate proceeding under Section 4 of the Natural Gas Act after receipt of 
the certificate authorization requested herein and prior to the in-
service date of the proposed facilities to revise and restate the rates 
applicable to Texas Eastern's Part 284, open-access Rate Schedules LLFT 
and LLIT.
    Texas Eastern submits that the revised and restated rates for Rate 
Schedules LLFT and LLIT result in a 15 percent reduction of the maximum 
rates. It is indicated that Texas Eastern's pro forma tariff sheet for 
Rate Schedules LLFT and LLIT illustrates the revised and restated rates 
resulting in a Reservation Charge of $4.552 per dt equivalent on 
natural gas per day. It is stated that on a 100 percent load factor 
basis, the revised and restated rate is equivalent to $0.1504 per dt 
equivalent of natural gas. Texas Eastern also states that the revised 
and restated rates are based on the cost of service and allocation 
methodology filed and approved in Texas Eastern's compliance filing in 
Docket Nos. CP92-459, et al., as adjusted to include the cost of 
service associated with the additional facilities proposed in this 
application. It is stated that the cost of service underlying Texas 
Eastern's current Rate Schedules LLFT and LLIT rates and revised cost 
of service reflected in Exhibit P of the filing are based on Texas 
Eastern's cost of service factors approved in Docket Nos. RP90-119, et 
al.
    Texas Eastern states that the additional facilities would enable it 
to make additional firm and interruptible transportation on the Lebanon 
Lateral. Texas Eastern also states that this service would benefit 
natural gas transportation customers who desire to access additional 
Gulf Coast gas supplies by transporting such gas quantities through 
Trunkline Gas Company and other interstate pipelines to 
interconnections with Panhandle Eastern Pipe Line Company for further 
downstream transportation on Texas Eastern and other interstate 
pipelines to Mid-Atlantic and Northeast markets. In addition, it is 
indicated that, after Texas Eastern's revised and restated rates are 
placed into effect, all Rate Schedule LLFT and LLIT customers would 
enjoy maximum rates for such services that would be 15 percent lower 
than current maximum rates.
    It is also indicated that Texas Eastern had previously received 
authorization to construct and operate the 700 horsepower of 
compression but, because of postponements of the Liberty Pipeline 
Project, Texas Eastern allowed the authorization to lapse.
    Comment date: August 25, 1995, in accordance with 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 

[[Page 43146]]
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.
Linwood A. Watson, Jr.,
Acting Secretary.
[FR Doc. 95-20487 Filed 8-17-95; 8:45 am]
BILLING CODE 6717-01-P