[Federal Register Volume 61, Number 94 (Tuesday, May 14, 1996)]
[Notices]
[Pages 24298-24299]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-11983]



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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket No. CP96-386-000]


Columbia Gas Transmission Corporation; Notice of Application

May 8, 1996.
    Take notice that on April 29, 1996, Columbia Gas Transmission 
Corporation (Columbia), 1700 MacCorkle Avenue, SE., Charleston, West 
Virginia 25325-1273, filed in Docket No. CP96-386-000 an application 
pursuant to Section 7(b) of the Natural Gas Act for permission and 
approval to abandon certain certificated gathering facilities by 
spindown to Columbia Natural Resources, Inc. (CNR), a non-
jurisdictional affiliate,\1\ all as more fully set forth in the 
application on file with the Commission and open to public inspection.
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    \1\ CNR has filed a companion petition for declaratory order in 
Docket No. CP96-385-000 for a determination that the facilities will 
be non-jurisdictional gathering facilities upon transfer to CNR.
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    Columbia proposes to transfer to CNR certain certificated and 
uncertificated gathering facilities at net book value estimated to be 
$28 million as of December 31, 1996, pursuant to a purchase and sale 
agreement dated April 25, 1996. Columbia explains that it intends to 
credit the net sales proceeds to the Stranded Facilities Charge in 
accordance with the tariff provisions placed into effect in its current 
Section 4 general rate case in Docket No. RP95-408-000.\2\ Columbia 
states that the facilities are located in Fayette and Somerset 
Counties, Pennsylvania; Dickenson, Tazewell and Buchanan Counties, 
Virginia; Pike, Knott, Breathitt, Magoffin, Floyd, Johnson, Lawrence, 
Letcher and Martin Counties, Kentucky; and Kanawha, Boone, Cabell, 
Logan, Putnam, Wyoming, Raleigh, Fayette, Mercer, McDowell, Mingo, 
Wayne and Lincoln Counties, West Virginia. It is further stated that 
the facilities involve eighteen gathering systems that contain 2,729 
miles of low pressure, predominately small diameter pipeline, 4,475 
horsepower of compression, meters, etc, (see the attached appendix). 
Columbia states that only twelve of the lines (totaling 51.4 miles of 
2-12 inch pipeline) and one compressor station (900 horsepower),\3\ and 
associated points of delivery and receipt and various appurtenant 
facilities,\4\ have been certificated; and certain certificated 
facilities are currently functionalized as transmission facilities and 
others are recorded as gathering facilities.
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    \2\ See General Terms and Conditions Section 46, Stranded 
Facilities Charge, of Columbia's tariff. The sale of gathering 
facilities proposed by this filing is a significant first step in 
Columbia's exit from the gathering business and the mitigation of 
the associated stranded costs.
    \3\ The Conaway Compressor Station is certificated and 
functionalized as a gathering facility.
    \4\ Columbia identifies Columbia Gas of Kentucky, Inc., and 
Mountaineer Gas Company, as local distribution companies, and 
Columbia Gas of Pennsylvania, Inc., as being involved as mainline 
tap customers with certificated points of delivery located on the 
gathering facilities to be spundown to CNR.
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    Columbia states that its proposal is the result of unbundling under 
Order No. 636 and the subsequent elimination of its merchant function. 
Furthermore, the proposal is part of the transfer and sale of a larger 
group of gathering facilities to CNR, which will operate the facilities 
on an open access, nonjurisdictional basis. Columbia advises that CNR 
owns an interest in over 6,500 oil and gas wells; has total acreage 
holdings of more than 2.3 million acres; and approximately two-thirds 
of CNR's natural gas production flows through the gathering facilities 
proposed to be transferred to CNR.
    Columbia advises that it would file to refunctionalize to 
transmission any of its gathering facilities located between the 
facilities sold to CNR and Columbia's transmission facilities. Such 
refunctionalization would eliminate the possibility that a shipper 
would pay gathering charges to both CNR and Columbia if, prior to the 
proposed abandonment, only one such gathering charge would have been 
paid.
    As more fully set forth in its application, Columbia requests:
    (1) Authorization to abandon by sale to CNR the certificated 
facilities as further identified in Exhibits T, Z, and Z1.
    (2) Approval of the accounting treatment specified in Exhibit Y.
    (3) Such other authorizations as the Commission deems necessary 
including, without limitation, authority to abandon, conditioned upon 
the receipt by Columbia of Section 4 authorization to abandon service, 
the Points of Delivery as identified in Exhibit T which are served from 
the certificated facilities and the non-certificated gathering 
facilities to be sold to CNR.
    Any person desiring to be heard or to make any protest with 
reference to said application should on or before May 20, 1996, 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 385.214 or 
385.211) and the Regulations

[[Page 24299]]

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 the jurisdiction conferred upon 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 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 permission and approval for the proposed abandonment are 
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 Columbia to appear or be represented at the 
hearing.
Linwood A. Watson, Jr.,
Acting Secretary.


   Appendix--Columbia Gas Transmission Corporation Summary of Certificated and Uncertificated Facilities To Be  
                                      Spundown by Transfer and Sale to CNR                                      
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                                                     Pipeline                                                   
                                     ----------------------------------------    System                         
          Gathering system               Length      Diameter                   pressure       Compressor (HP)  
                                        (miles)      (inches)     Total No.      (psig)                         
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 1 Summit...........................            9        2-6               8    90-200      0                   
 2 Ohiopyle.........................           17       2-12               5  ............  0                   
 3 Walbridge........................          143        2-8             267     40-80      0                   
 4 Hubball-Horse Creek-Nye..........  ...........       2-20           1,322     40-80      820                 
 5 Buff Lick........................          212      (\1\)             286     2-100      Yes                 
 6 Inez-Kermit......................          635       1-18             984     40-80      959                 
 7 Beaver Creek.....................           93       1-12             133     10-70      0                   
 8 Boldman..........................          288       1-18             364    50-180      0                   
 9 Johns Creek......................           21        2-8              26     35-60      300                 
10 Canada (P-74)....................           95       2-10             151   100-120      300                 
11 Canada (P-28)....................           13        2-8               9    40-100      0                   
12 Conaway..........................          121       2-20             149    70-120      900                 
                                                                               250-400                          
13 Majestic Thacker.................          152       1-10             184     30-70      950                 
14 Briar Mountain...................           16        2-6              19     20-60      300                 
15 Stafford.........................           32        1-6              49     45-75      Yes                 
16 Huff Creek (V-38)................  ...........       2-10              17    75-125      Yes                 
17 McDowell-Tazewell................           41        2-6              46     30-50      0                   
18 Egeria...........................           20        2-6              37     30-50      Yes                 
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\1\ Various.                                                                                                    

[FR Doc. 96-11983 Filed 5-13-96; 8:45 am]
BILLING CODE 6717-01-M