[Federal Register Volume 60, Number 184 (Friday, September 22, 1995)]
[Notices]
[Page 49247]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-23517]



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DEPARTMENT OF AGRICULTURE

Essential Agricultural Uses and Volumetric Requirements--Natural 
Gas Policy Act; U.S. Agri-Chemicals Corp.

AGENCY: Office of Energy and New Uses (OENU), Economic Research 
Service.

ACTION: Notice.

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SUMMARY: This notice advises the public that a request for an 
interpretation of the Essential Agricultural Uses and Requirements 
regulations at 7 CFR part 2900 has been received from U.S. Agri-
Chemicals Corporation (``U.S. Agri-Chem''), seeking that the Department 
of Agriculture classify all of U.S. Agri-Chem existing natural gas uses 
as Essential Agricultural Uses.

DATES: Written comments will be accepted with respect to U.S. Agri-
Chem's request, if received by October 12, 1995.

ADDRESSES: Copies of the request for interpretation from which 
confidential information has been deleted in accordance with 7 CFR 
2901.4(a)(2) may be obtained from: Matthew M. Schreck, Curran, Corbett 
& Stiles, P.C., 800 Gessner, Suite 930, Houston, Texas 77024, Attorney 
for U.S. Agri-Chem.

FOR FURTHER INFORMATION CONTACT:
Roger K. Conway, Director, Office of Energy and New Uses, Economic 
Research Service, United States Department of Agriculture, 1301 New 
York Avenue, NW., Room 1212, Washington, DC 20005-4788; telephone 
number: (202) 219-1941.

SUPPLEMENTARY INFORMATION: Section 401(c) of the Natural Gas Policy Act 
of 1978 (NGPA) requires the Secretary of Agriculture to determine the 
essential uses of natural gas, and to certify to the Secretary of 
Energy and the Federal Energy Regulatory Commission (FERC) the natural 
gas requirements for essential agricultural uses in order to meet the 
requirements of full food and fiber production. Under provisions of 
NGPA, FERC must approve natural gas curtailment plans that are 
implemented in the event of natural gas shortages. However, natural gas 
classified for essential agricultural uses is not subject to 
curtailment until all other uses except for Priority 1 (homes, 
hospitals, etc.) have been curtailed. FERC also has additional 
authorities to prevent curtailments as needed.
    The Secretary of Agriculture has defined essential agricultural 
uses at 7 CFR part 2900. The administrative procedures for adjustments 
in natural gas curtailment priorities and volumetric requirements are 
set forth at 7 CFR part 2901. Today's notice is in response to a 
request by U.S. Agri-Chemicals Corporation for an interpretation of 
volumetric requirements for its essential agricultural uses.
    U.S. Agri-Chem is a manufacturer of animal feed supplements with 
manufacturing facilities located in Plant City, Florida. U.S. Agri-
Chem's manufacturing process utilizes natural gas in both kilns and 
reactors. U.S. Agri-Chem receives natural gas from a direct 
interconnection with Florida Gas Transmission Company (FGT), an 
interstate pipeline subject to FERC jurisdiction. U.S. Agri-Chem has no 
alternative fuel capability at the plant.
    A January 12, 1995, FERC settlement agreement between FGT and its 
customers required FGT to change from an end-use curtailment plan to a 
pro-rata curtailment by November 1, 1995. Only a portion of U.S. Agri-
Chem's natural gas use is currently classified as Priority 2, essential 
agricultural uses.
    FGT's previous end-use curtailment plan interrupted service based 
on the end use of the natural gas in accordance with the NGPA priority 
categories. Consequently, Priorities 3 through 9 were curtailed in 
their entirety in their respective orders of priority before Priority 2 
was curtailed. Under FGT's new pro-rata curtailment plan, only Priority 
1 and Priority 2 will be considered exempt from curtailment. Any 
natural gas uses not included in Priority 1 or 2, depending on the 
magnitude of the shortage, will be curtailed on a pro-rata basis.
    In response to the change in FGT's curtailment plan, U.S. Agri-Chem 
reviewed its natural gas usage and determined that all of the natural 
gas it burns at its plant is utilized to manufacture animal feed 
supplements (SIC Category 2048). According to U.S. Agri-Chem, the 
volume differential between U.S. Agri-Chem's previous Priority 2 
classification, and its current total natural gas consumption for which 
Priority 2 classification is now sought is attributable to its 
increased gas consumption.

    Done, at Washington, DC, this 14th day of September, 1995.
Roger W. Conway,
Director.
[FR Doc. 95-23517 Filed 9-21-95; 8:45 am]
BILLING CODE 3410-18-M