[Federal Register Volume 60, Number 200 (Tuesday, October 17, 1995)]
[Notices]
[Pages 53777-53778]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-25637]



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DEPARTMENT OF ENERGY
[Docket No. CP96-10-000]


Transwestern Pipeline Company; Notice of Application

October 11, 1995.
    Take notice that on October 4, 1995, Transwestern Pipeline Company 
(Transwestern), Post Office Box 1188, Houston, Texas 77251-1188, filed 
in Docket No. CP96-10-000 an application pursuant to Section 7(c) of 
the Natural Gas Act for a certificate of public convenience and 
necessity authorizing the construction, installation and operation of 
certain compression and related facilities, all as more fully set forth 
in the application which is on file with the Commission and open to 
public inspection.
    Specifically, Transwestern seeks authorization to (1) Construct and 
operate a compressor station near Bisti, New Mexico (Bisti Compressor 
Station), consisting of a 10,000 horsepower (hp) electric motor driven 
compressor and related facilities, located near Mile Post 36 on 
Transwestern's San Juan Lateral in San Juan County, New Mexico; (2) 
construct and operate a 7,000 hp electric motor driven compressor, and 
related facilities at Transwestern's existing Bloomfield Compressor 
Station located on Transwestern's San Juan Lateral in San Juan County, 
New Mexico; (3) operate, as discussed in the application, an existing 
4,132 hp gas compressor at Transwestern's Bloomfield Compressor Station 
originally certificated as a back-up compressor; (4) adjust its 
capacity on its mainline and San Juan Lateral facilities on a flexible 
basis in response to market demands for San Juan gas by changing the 
pressure in its mainline facilities from the current level of 950 psig 
to as low as 800 psig, to the extent required to meet reduced market 
demand for firm transportation capacity to California, but high demand 
for San Juan gas in Arizona, California and Transwestern's eastern 
markets; and (5) purchase from Northwest Pipeline Corporation 
(Northwest) a 77.7 percent ownership interest in Northwest's south end 
mainline extension facilities extending from the Ignacio Compressor 
Station near Ignacio, Colorado to the Blanco Hub near Bloomfield, New 
Mexico (the La Plata Facilities), acquire capacity in such facilities, 
as provided in the Northwest-Transwestern Letter of Intent (Agreement), 
and operate such jointly-owned La Plata facilities. Transwestern states 
that the agreement between Transwestern and Northwest provides that the 
exact levels of the ownership interest and capacity to be acquired by 
Transwestern are subject to change based on the amount of capacity 
retained by Northwest in order to serve changes in receipt and delivery 
points made by Northwest's customers as of October 20, 1995. 
Transwestern further states that Northwest will use reasonable efforts 
to file its abandonment application no later than November 3, 1995 
reflecting customer's elections and Transwestern will supplement its 
application, if necessary, on or about November 3, 1995, to also 
reflect such elections.
    Transwestern states that the cost of compressors and related 
facilities proposed to be constructed is $14.6 million, and such 
additional compression facilities will allow Transwestern to add 
170,000 Dth/day of capacity to the San Juan Lateral. It is stated that 
such 170,000 Dth/day is the amount of additional firm capacity on the 
San Juan Lateral requested by shippers under newly executed long-term, 
firm transportation agreements. According to Transwestern, granting it 
the flexibility to adjust the pressure, and thereby the capacity, on 
its mainline at Thoreau, to the extent necessary to meet reduced market 
demand for firm mainline capacity to California, and high market demand 
for San Juan gas in California and Transwestern's eastern markets, 
would allow Transwestern to add up to an additional 85,000 Dth/day of 
capacity on the San Juan Lateral from the compression facilities 
proposed herein. While capacity on the San Juan Lateral would be 
increased by up to 85,000 Dth/day as a result of reducing mainline 
capacity on a firm basis. However, Transwestern states that it would 
maintain its ability to fully serve all of its firm customers.
    Transwestern states that with the flexibility to adjust the 
pressure, and thereby the capacity, on the mainline to respond to 
market demand, the additional compression facilities proposed herein 
would result in a total capacity increase of 255,000 Dth/day on the San 
Juan Lateral. It is stated that with such additional capacity, the 
capacity of the San Juan Lateral would total up to 775,000 Dth/day on 
an annual basis, as compared to the current design capacity of 520,000 
Mcf/day. On a peak day, Transwestern contends that the increased 
capacity on the San Juan Lateral could reach up to 275,000 Dth/day, for 
a total peak day capacity of up to 795,000 Dth/day.
    Based on existing receipt and delivery points (which are subject to 
change as provided in the Agreement), Transwestern states that it will 
acquire a 77.7 percent ownership interest in the La Plata Facilities, 
and, in addition to other capacity defined in the Agreement, 276,000 
Dth/day of north to south capacity through the La Plata A compressor 
station. It is stated that Northwest will retain an ownership interest 
of 22.3 percent, and with respect to the north to south capacity, 
24,000 Dth/day of capacity, and sufficient south to north capacity to 
meet its customers' needs. Transwestern states that the cost of its 
77.7 percent ownership interest is $21.0 million, based on the 
estimated book value at the projected closing date. According to 
Transwestern, the 276,000 Dth/day of north to south capacity through 
the La Plata A compressor station includes contracts for 201,000 Dth/
day capacity previously subscribed by Northwest which are intended to 
be assigned to Transwestern. Transwestern states that the Agreement 
provides that Transwestern will attempt to negotiate such assigned 
contracts, but that if such contracts cannot be renegotiated and/or 
assigned, Northwest will retain such contracts, and the capacity and 
ownership percentage retained by Northwest will be adjusted to the 
extent that Northwest will retain north to south capacity. In addition, 
Transwestern contends that such 276,000 Dth/day includes 75,000 Dth/day 
of capacity newly subscribed by Transwestern under long-term firm 
transportation agreements.
    Transwestern respectfully requests expedited action by the 
Commission in light of the following circumstances: (1) The need to 
meet the market demand evidenced by the executed firm transportation 
agreements submitted with the application; (2) the need to provide San 
Juan producers with the means to transport their gas to market and 
avoid the shut-in of gas; (3) submission with the application of a 
complete environmental report; (4) the limited construction window of 
July 1 through mid-February due to the environmental factors discussed 
in such report; and (5) the fact that no 

[[Page 53778]]
determination of rolled-in versus incremental rate treatment is 
required in light of Transwestern's use of its existing Part 284 rates. 
Accordingly, Transwestern respectfully requests that the Commission 
provide for a shorter notice period for the filing of protests or 
motions to intervene so that the Commission could issue a preliminary 
determination by January 19, 1996, and a final certificate by March 31, 
1996.
    Any person desiring to be heard or to make any protest with 
reference to said application should on or before October 26, 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) 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 Transwestern to appear or be represented at 
the hearing.
Lois D. Cashell,
Secretary.
[FR Doc. 95-25637 Filed 10-16-95; 8:45 am]
BILLING CODE 6717-01-M