[Federal Register Volume 60, Number 229 (Wednesday, November 29, 1995)]
[Notices]
[Pages 61252-61253]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-29161]



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

DEPARTMENT OF ENERGY
[Docket No. CP96-52-000]


Pine Needle LNG Company, LLC; Notice of Application

November 22, 1995.
    Take notice that on November 7, 1995, Pine Needle LNG Company, LLC 
(Pine Needle), by and through its operator, Pine Needle Operating 
Company (PNOC), filed an application pursuant to Section 7(c) of the 
Natural Gas Act (NGA) and Part 157 of the Federal Energy Regulatory 
Commission's (Commission) regulations, for a certificate of public 
convenience and necessity authorizing the construction and operation of 
a liquefied natural gas (LNG) storage facility in Guilford County, 
North Carolina and approving initial rates for storage services to be 
rendered by Pine Needle. Pine Needle's application further requests 
that the Commission grant Pine Needle a blanket certificate pursuant to 
Part 284(G) of the Commission's regulations authorizing the storage of 
gas for others, and a blanket certificate under Part 157(F) of 

[[Page 61253]]
the Commission's regulations authorizing certain facility construction 
and operation, abandonments and certificate amendments. Further details 
on Pine Needle's proposal are contained in the application which is on 
file with the Commission and open to public inspection.
    Pine Needle says that the LNG storage facilities will be 
constructed on an 828 acre site in northwest Guilford County, North 
Carolina approximately one mile northwest of Transcontinental Gas Pipe 
Line Corporation's (Transco) mainline. The LNG storage facilities will 
consist of: 2 double wall suspended deck storage tanks each capable of 
storing 2 Bcf of natural gas equivalent (48 million gallons of LNG); a 
pre-treatment and liquefaction system; boil-off recompression; an LNG 
truck loading and unloading station; a vaporization and send out 
system; a hazard detection/protection system; 1.05 miles of 10-inch 
diameter inlet pipeline for receipts from Transco's mainline; 1.05 
miles of 24-inch diameter pipeline for deliveries to Transco's 
mainline; and a metering and regulating station in the plant yard with 
an inlet capacity of 29 MMcf/d and an outlet capacity of 400 MMcf/d.
    The pre-treatment and liquefaction systems will liquefy at a net 
rate of 20 MMcf/d to storage. The vaporization and send-out system will 
be designed to vaporize and send out from 50 to 400 MMcf/d. The 
facilities will also include a firewater pond and dam with a capacity 
of 17,760,000 gallons for hydrostatic and test water and plant 
firewater. The hazard detection/protection system will also include 
hydrants, monitors, and deluge nozzles as well as fire, gas, smoke, and 
high temperature detectors that will be integrated into a plant-wide 
alarm system. The LNG plant will be accessed by a new 3,900-foot access 
road extending from the plant site to an existing improved road.
    Pine Needle estimates that the total cost of the project will be 
$107 million. Pine Needle proposes a 50/50 debt to equity capital 
structure and will seek non-recourse project financing. PNOC will 
oversee the construction of Pine Needle's facilities and will operate 
the facilities pursuant to the terms and conditions of an operating 
agreement between Pine Needle and PNOC. PNOC will also handle the day-
to-day business affairs of Pine Needle.
    Pine Needle proposes to place the LNG facility into service on or 
about May 1, 1995. Pine Needle says the proposed in-service date will 
allow customers to fill the LNG tanks with their inventory prior to the 
commencement of the 1999-2000 winter heating season. Because of the 
approximately 28 months of construction, pre-commissioning, and cool-
down time required, construction of the LNG facilities is scheduled to 
begin on February 1, 1997.
    Pine Needle states that an open season was conducted from August 2 
to August 31, 1995, during which it accepted requests for firm LNG 
storage service. As a result of the open season, Pine Needle executed 
precedent agreements with customers subscribing to 3.61 Bcf, or 90.25 
percent, of the total storage capacity of 4 Bcf. Pine Needle states 
that it is in the process of marketing the remaining 0.39 Bcf of 
storage capacity. The precedent agreements provide that the firm 
peaking LNG storage service will be rendered for an initial term of 20 
years, commencing as soon as the necessary approvals are secured and 
all of the facilities necessary to provide service have been 
constructed and are ready for liquefaction of gas.
    Pine Needle states that it will receive for liquefaction on a firm 
basis the dekatherm (dth) equivalent of 0.5% of each customer's firm 
storage capacity quantity per day and will vaporize and redeliver on a 
firm basis the dth equivalent of 10% of each customer's storage 
capacity quantity per day. The terms and conditions governing such firm 
liquefaction, storage, vaporization, and redelivery are set forth in 
Pine Needle's Rate Schedule LNG-1, included in Exhibit P to the 
application. Rate Schedule LNG-1 also provides for LNG truck loading 
services. Truck loading services will also be provided on an 
interruptible basis under Rate Schedule LNG-2.
    Pine Needle states that the initial rate for firm LNG storage 
service under Rate Schedule LNG-1, will be a monthly demand charge of 
$4.85 per Mcf/d of vaporization quantity entitlement. In addition, Pine 
Needle proposes an initial excess vaporization charge for quantities in 
excess of the customer's daily vaporization quantity under Rate 
Schedule LNG-1 of $5.63 per dth. Pine Needle's customers will also be 
charged the fuel retention factor and ACA surcharge as set forth in 
Pine Needle's tariff.
    Any person desiring to be heard or to make any protest with 
reference to said application should on or before December 13, 1995, 
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 385.211 or 385.214) 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 party 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 3, 7, and 15 of the Natural Gas Act 
and the Commission's Rules of 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 is required by the public 
convenience and necessity. If 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 Pine Needle to appear or be represented at 
the hearing.
Lois D. Cashell,
Secretary.
[FR Doc. 95-29161 Filed 11-28-95; 8:45 am]
BILLING CODE 6717-01-M