[Federal Register Volume 60, Number 171 (Tuesday, September 5, 1995)]
[Notices]
[Page 46117]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-21874]



-----------------------------------------------------------------------

DEPARTMENT OF ENERGY
[Docket No. CP95-705-000]


Shell Offshore Inc.; Notice of Petition for Declaratory Order

August 29, 1995.
    Take notice that on August 23, 1995, Shell Offshore Inc. (Shell), 
P.O. Box 576, Houston, Texas 77001, filed a petition for declaratory 
order in Docket No. CP95-705-000 requesting that the Commission declare 
that, following Shell's purchase of certain offshore facilities from 
Natural Gas Pipeline Company of America (Natural), that those 
facilities are gathering facilities exempt from the Commission's 
Regulations pursuant to Section 1(b) 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.
    Shell states that the facilities consist of currently-certificated 
interstate transmission facilities owned by Natural along with 
associated metering facilities. It is indicated that the facilities 
consist of (1) 2.8 miles of 8-inch pipeline that extends between 
Shell's ``A'' and ``B'' platforms in Eugene Island Block 331, offshore 
Louisiana, (2) a dual 8-inch meter and appurtenant facilities located 
on Shell's ``A'' platform in Eugene Island Block 331, offshore 
Louisiana, (3) a 10-inch dual meter and appurtenant facilities located 
on Shell's platform in Vermilion Block 321, offshore Louisiana, (4) a 
dual 6-inch meter and appurtenant facilities located on Shell's 
platform in Vermilion Block 340, offshore Louisiana, and (5) a dual 8-
inch meter and appurtenant facilities located on Shell's platform in 
West Cameron Block 565, offshore Louisiana.
    Shell asserts that once it acquires the facilities their primary 
function will be gathering as set forth in Farmland Industries, Inc., 
23 FERC para.61,063 (1983), as later modified by Amerada Hess Corp., et 
al., 52 FERC para.61,268 (1990), (Amerada Hess). It is indicated that 
under that test the Commission applies six criteria to determine the 
jurisdictional status of a facility: (1) the diameter and length of a 
facility; (2) the extension of facilities beyond a central point in the 
field; (3) the geographic configuration of the system; (4) the location 
of compressors and processing plants; (5) the location of wells along 
all or part of the facility; and (6) the operating pressure of the 
line. In Amerada Hess, the Commission indicated that it would consider 
other factors, in addition to the Farmland criteria, especially for 
offshore facilities, including the changing technical and geographic 
nature of exploration and production, the purpose, location and 
operation of the facility, the general business activity of the 
facility, and whether the jurisdictional determination is consistent 
with the objectives of the Natural Gas Act and the Natural Gas Policy 
Act of 1978. Shell also points out that an application of the non-
physical factors set out in Amerada Hess demonstrates that the 
facilities should be classified as gathering facilities.
    Shell asserts that the acquired facilities will perform gathering 
functions. Lateral line 331 is relatively short length and small 
diameter, as is characteristic of traditional offshore gathering lines. 
It is stated that, the geographic configuration of Lateral 331 is 
``intrafield'' a gathering line feeding production from one platform in 
one portion of the offshore block to another platform in another 
portion of the same offshore block, where the production can be 
measured and delivered to an interstate pipeline for transportation to 
shore. It is further stated that, Lateral 331 is located entirely 
behind the onshore processing plants, in federal offshore waters. Shell 
indicates that, Lateral 331 will be owned by a producer and will be 
used by the producer to gather production from one of its production 
platforms to another. Shell avers that, the proposed new owner of 
Lateral 331 is primarily engaged in exploration and production 
activities and will use the facilities in furtherance of its 
exploration and production activities to gather production. It is 
indicated that, the measurement facilities to be acquired are located 
on four of Shell's production platforms, and will be used by Shell to 
measure the volume of gas produced and collected at each of the four 
platforms prior to delivery to the pipeline company for transportation, 
thus performing a production related function.
    Any person desiring to be heard or to make any protest with 
reference to said petition should on or before September 19, 1995, file 
with the Federal Energy Regulatory Commission, Washington, DC 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. 95-21874 Filed 9-1-95; 8:45 am]
BILLING CODE 6717-01-M