[Federal Register Volume 61, Number 28 (Friday, February 9, 1996)]
[Notices]
[Pages 4990-4992]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-2774]



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DEPARTMENT OF ENERGY
[Docket No. CP96-152-000, et al.]


Riverside Pipeline Company, L.P., et al., Natural Gas Certificate 
Filings

February 1, 1996.
    Take notice that the following filings have been made with the 
Commission:

1. Riverside Pipeline Company, L.P.

[Docket No. CP96-152-000]

    Take notice that on January 23, 1996, Riverside Pipeline Company, 
L.P. (``Riverside''), 8325 Lenexa Drive, Suite 400, Lenexa, Kansas 
66214, filed, pursuant to Section 7(c) of the Natural Gas Act 
(``NGA''), 15 U.S.C. Sec. 717f(c), Part 157 of the Commission's 
Regulations, and the Commission's directive in KansOk Partnership, et 
al., 73 FERC para. 61,160 (1995) (``November 2 Order''), an application 
for a certificate of public convenience and necessity authorizing the 
operation of certain pipeline facilities in Kansas, Oklahoma, and 
Missouri found to constitute an interstate pipeline system. The 
application includes proposed initial rates and a proposed FERC Gas 
Tariff setting forth terms and conditions of service in compliance with 
Order No. 636. In addition, Riverside requests (1) a blanket 
certificate authorizing unbundled firm and interruptible sales pursuant 
to Section 284.284 of the regulations, and (2) a blanket certificate 
authorizing certain construction and operation of facilities, sales 
arrangements, certificate amendments, and abandonments pursuant to 
Section 157.201, et seq. of the regulations.
    Riverside states that, as required by the Commission's November 2 
Order, it seeks a certificate under NGA Section 7 and Part 157 of the 
Commission's Regulations to operate the pipeline facilities now owned 
by Riverside, Kansas Pipeline Partnership (``Kansas Pipeline''), and 
KansOk Partnership (``KansOk'') on an integrated basis. Within 60 days 
following issuance of the requested certificate, Riverside states that 
all sales and transportation services currently provided by Kansas 
Pipeline and KansOk subject to state jurisdiction would be abandoned, 
all contracts currently held by Kansas Pipeline and KansOk would be 
assigned to Riverside, gas supply contracts would be assigned or 
terminated,1 all pipeline and related facilities currently held by 
Kansas Pipeline and KansOk would be transferred to Riverside, and 
Riverside would commence unbundled service replacing the service 
previously provided by Kansas Pipeline, KansOk, and Riverside, all in 
accordance with the tariff proposed herein and the terms of Order No. 
636.

    \1\ Only those gas supply arrangements needed to support a small 
customer sales service would be retained.
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    Riverside requests the Commission to defer issuance of the 
certificate pending rehearing and judicial review of the November 2 
Order, and to continue the Stay Order, stating that the actions it 
would be required to take to implement the certificate would destroy 
Kansas Pipeline and KansOk as they currently exist and are essentially 
irreversible.
    Riverside states that no new construction is proposed by the 
Application. As proposed, sales services now being provided by Kansas 
Pipeline to its customers under KCC certificates will be unbundled in 
compliance with Order No. 636. Riverside will offer an equivalent level 
of transportation capacity to such customers. Small customers could 
elect to continue to purchase gas at a cost based rate for a one-year 
period under Rate Schedule SCS. Riverside also proposes to offer firm 
and interruptible sales on an unbundled basis at negotiated rates under 
Rate Schedule PS.
    In conjunction with its application for a certificate to operate 
the combined facilities of Kansas Pipeline and KansOk, Riverside 
requests (1) a blanket certificate authorizing unbundled firm and 
interruptible sales pursuant to Section 284.284 of the regulations, and 
(2) a blanket certificate authorizing certain construction and 
operation of facilities, sales arrangements, certificate amendments, 
and abandonments pursuant to Section 157.201, et seq. of the 
regulations.
    Riverside states that the rates set forth in Exhibit P are based on 
a straight fixed-variable (``SFV'') rate design methodology and a cost 
of service reflecting the combined facilities of Riverside, Kansas 
Pipeline, and KansOk. According to the Application, no mitigation 
measures are required since SFV rates were in effect on each of the 
pipelines even prior to consolidation. Expenses are based on the 12 
months ended September 30, 1995, adjusted for known and measurable 
changes. Costs have been allocated to customers using billing 
determinants which assume a continuation of customers' existing firm 
contractual commitments. Riverside proposes zone rates which, it 
states, generally reflect the rate and contract service structure that 
existed prior to the November 2 Order. Riverside also proposes to 
retain capacity formerly held by KansOk under the terms of a lease with 
Transok Inc., an Oklahoma intrastate pipeline.
    Riverside's derivation of initial rates set forth below is 
explained in greater detail in Exhibit P. Firm and interruptible 
transportation rates (exclusive of fuel, surcharges, and lost and 
unaccounted for gas) are set forth below:

------------------------------------------------------------------------
                                           Zone 1     Zone 2     Zone 3 
------------------------------------------------------------------------
FT Reservation.........................    $6.6817   $10.5405    $9.1499
FT Commodity...........................    $0.0050    $0.0050    $0.0050
IT.....................................    $0.2247    $0.3515    $0.3058
SCT....................................    $0.5542    $0.8714    $0.7571
------------------------------------------------------------------------

Rates for each zone are additive; shippers traversing all three zones 
would pay the sum of the rates stated for Zones 1, 2, and 3. In the 
event the Commission does not authorize Riverside to retain leased 
capacity on Transok, Riverside states that the rates would be as 
follows:

------------------------------------------------------------------------
                                           Zone 1     Zone 2     Zone 3 
------------------------------------------------------------------------
FT Reservation.........................    $5.5315   $10.5405    $9.1499
FT Commodity...........................    $0.0050    $0.0050    $0.0050
IT.....................................    $0.1869    $0.3515    $0.3058
SCT....................................    $0.4597    $0.8714    $0.7571
------------------------------------------------------------------------

    Riverside also proposes procedures to recover, as transition costs, 
all costs associated with complying with Order 

[[Page 4991]]
No. 636 and the Commission's November 2 Order. These costs include (1) 
unrecovered purchased gas costs attributable to Kansas Pipeline's 
existing merchant function; (2) direct-bill costs previously authorized 
by the KCC; (3) expenses associated with reorganizing and consolidating 
the companies into a single entity; (4) costs of upgrading exist ing 
facilities to comply with Department of Transportation regulations 
applicable to interstate pipelines; (5) increased costs under the 
companies' debt instruments related to the change in regulatory status; 
(6) costs of reorganizing into a corporate form, if needed to maintain 
the tax allowances currently in rates; (7) buyout, buydown, contract 
reformation costs, and/or lost profits attributable to terminating 
Kansas Pipeline's merchant function; and (8) costs attributable to 
assigning or terminating KansOk's lease with Transok, Inc., if 
required. Riverside proposes to make limited NGA Sec. 4 filings to 
recover these costs.
    Comment date: Febraury 22, 1996, in accordance with Standard 
Paragraph F at the end of this notice.

2. Southern Natural Gas Company

[Docket No. CP96-153-000]

    Take notice that on January 24, 1996, Southern Natural Gas Company 
(Southern), P.O. Box 2563, Birmingham, Alabama 35202-2563, filed in 
Docket No. CP96-153-000 an application pursuant to Section 7(c) of the 
Natural Gas Act for authorization to construct, install and operate 
certain pipeline, compression, measurement and related appurtenant 
facilities, all as more fully set forth in the application which is on 
file with the Commission and open to public inspection.
    Southern states that in order to provide firm transportation 
services totaling 76,350 Mcf per day for five (5) customers, Southern 
requests authorization to construct, install and operate the following 
facilities: (i) 109.53 miles of 16-inch pipeline extending from its 
McConnells Compressor Station in Tuscaloosa County, Alabama, to a point 
of interconnection with the distribution system of the Huntsville 
Utilities Gas Section in Madison County, Alabama; (ii) 8.47 miles of 
12-inch pipeline extending from approximately M.P. 105.19 on the 16-
inch pipeline to a point of interconnection with the distribution 
system of Decatur Utilities in Morgan County, Alabama; (iii) one 
turbine compressor unit, ISO-rated at 4700 horsepower, at Southern's 
Providence Compressor Station in Tuscaloosa County, Alabama; (iv) one 
turbine compressor unit, ISO-rated at 1600 horsepower, at Southern's 
McConnells Compressor Station; and (v) one dual 8-inch meter station 
and appurtenant facilities, one dual 6-inch turbine meter station and 
appurtenant facilities, and one dual 3-inch meter station and 
appurtenant facilities.
    Southern states further that the total cost of the proposed 
facilities is estimated to be $52.8 million.
    Comment date: February 21, 1996, in accordance with Standard 
Paragraph F at the end of this notice.

3. Northern Natural Gas Company

[Docket No. CP96-157-000]

    Take notice that on January 25, 1996, Northern Natural Gas Company 
(Northern), 1111 South 103rd Street, Omaha, Nebraska 68124-1000, filed 
in Docket No. CP96-157-000 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 operate and upgrade an 
existing delivery point in Ashland County, Wisconsin, to accommodate 
deliveries of natural gas to Northern States Power--WI (NSP-WI), under 
Northern's blanket certificate issued in Docket No. CP82-401-000 
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.
    Northern requests authorization to operate the Birch Hill Acres 
town border station (TBS) following an upgrade made under the emergency 
provisions of Part 284 of the Commission's Regulations. It is stated 
that the upgrade was made to provide emergency service to residential 
and commercial customers. Northern proposes to further upgrade the TBS 
in order to make additional deliveries requested by NSP-WI under 
currently effective service agreements. Northern proposes to deliver up 
to 208 MMBtu equivalent of natural gas on a peak day and 26,572 MMBtu 
equivalent on an annual basis. It is explained that these volumes will 
be the result of a realignment of existing firm entitlement contracted 
under Northern's throughput service agreements with TSP-WI. It is 
asserted that the deliveries made following the proposed upgrade will 
not exceed the total volumes authorized prior to the request. Northern 
estimates the construction cost for the upgrade at $66,000, for which 
Northern will be reimbursed by NSP-WI. It is further asserted that 
Northern's tariff does not prohibit such upgrades and that Northern has 
sufficient capacity to accomplish the deliveries without detriment or 
disadvantage to Northern's other customers.
    Comment date: March 18, 1996, in accordance with Standard Paragraph 
G at the end of this notice.

4. ANR Pipeline Company

[Docket No. CP96-158-000]

    Take notice that on January 26, 1996, ANR Pipeline Company (ANR), 
500 Renaissance Center, Detroit, Michigan 48243, filed in Docket No. 
CP96-158-000 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 increase capacity of an existing 
interconnection between ANR and Continental Natural Gas, Inc. (CNG) in 
Beaver County, Oklahoma for delivery of natural gas to CNG under ANR's 
blanket certificate issued in Docket No. CP82-480-000 pursuant to 
Section 7 of the Natural Gas Act (NGA), all as more fully set forth in 
the request that is on file with the Commission and open to public 
inspection.
    ANR proposes to increase the capacity of an existing 
interconnection between ANR and CNG in Beaver County, Oklahoma for 
delivery of natural gas to CNG, and to operate this interconnection 
under Section 7(c) of the NGA. ANR received certification, pursuant to 
Section 157.211 of the Commission's Regulations under ANR's prior 
notice application in Docket No. CP96-6-000, to operate and deliver up 
to 6,000 Mcf of natural gas per day at the CNG ``A'' Station. ANR 
proposes to increase the maximum capacity of the CNG ``A'' Station to 
10,000 Mcf per day from 6,000 Mcf per day. ANR states that it will not 
construct any facilities nor spend any money to increase the capacity 
of the CNG ``A'' Station. ANR states that, rather, CNG would install a 
larger meter on its current metering skid adjacent to the CNG ``A'' 
Station to increase the capacity to 10,000 Mcf per day. ANR states that 
it would continue to provide CNG with deliveries at CNG ``A'' Station 
under its Rate Schedule IT and that the volumes to be delivered would 
be within the certificated entitlements of the customer.
    Comment date: March 18, 1996, in accordance with Standard Paragraph 
G at the end of this notice.

5. Transcontinental Gas Pipe Line Corporation

[Docket No. CP96-160-000]

    Take notice that on January 29, 1996, Transcontinental Gas Pipe 
Line Corporation (Transco), P.O. Box 1396, Houston, Texas 77251, filed 
a prior 

[[Page 4992]]
notice request with the Commission in Docket No. CP96-160-000 pursuant 
to Section 157.205 of the Commission's Regulations under the Natural 
Gas Act (NGA) for authorization to construct and operate a new delivery 
point to serve Alabama Gas Corporation (Alagasco) in Choctaw County, 
Alabama, under Transco's blanket certificate issued in Docket No. CP82-
426-000 pursuant to Section 7 of the NGA, all as more fully set forth 
in the request which is open to the public for inspection.
    Transco proposes to install a new delivery point to serve Alagasco 
near Milepost 798.54 on Transco's mainline system in Choctaw County. 
Transco would install a four-inch tap on its 42-inch diameter Mainline 
``D'' and another four-inch tap on its 42-inch diameter Mainline ``E'', 
as well as a meter station, at the proposed delivery point location. 
Transco states that it would deliver up to 3,000 Mcf per day on a firm 
or interruptible basis, and that it has sufficient delivery flexibility 
to accomplish these deliveries without detriment or disadvantage to 
Transco's other customers.
    Transco states that it does not seek to alter the total firm or 
interruptible volumes authorized for delivery to Alagasco. Transco 
further states that its FERC Gas Tariff permits the addition of the 
proposed delivery point and would have no impact on Transco's peak day 
or annual deliveries.
    Comment date: March 18, 1996, in accordance with Standard Paragraph 
G at the end of this notice.

Standard Paragraphs

    F. Any person desiring to be heard or make any protest with 
reference to said filing should on or before the comment date file with 
the Federal Energy Regulatory Commission, 888 First Street, N.E., 
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 and 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 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 without further notice before the Commission or its designee on 
this filing 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 the applicant to appear or be represented at 
the hearing.
    G. Any person or the Commission's staff may, within 45 days after 
the 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 Sec. 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 therefore, 
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.
Lois D. Cashell,
Secretary.
[FR Doc. 96-2774 Filed 2-8-96; 8:45 am]
BILLING CODE 6717-01-P