[Federal Register Volume 61, Number 105 (Thursday, May 30, 1996)]
[Notices]
[Pages 27062-27063]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-13492]



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DEPARTMENT OF ENERGY
[Docket No. CP96-528-000]


Universal Resources Corporation; Notice of Petition

May 23, 1996.
    Take notice that on May 17, 1996, Universal Resources Corporation 
(URC), 79 State Street, Salt Lake City, Utah 84147, filed in Docket No. 
CP96-528-000 a petition pursuant to Sections 7(b) and 7(c) of the 
Natural Gas Act for exemption of temporary acts and operations to test 
the feasibility of converting an existing production field to a storage 
field, and requests, if permission is needed to perform these acts and 
operations, pregranted abandonment authorization, all as more fully set 
forth in the petition which is on file with the Commission and open to 
public inspection.
    URC states that it is a natural gas producer and the parent of 
Questar Energy Trading (QET), a company that markets URC's production, 
as well as the production of others. It is indicated that URC is a 
wholly-owned subsidiary of Questar Corporation. URC indicates that it 
is the operator of the Clear Creek oil and gas field, in Uintah County, 
Wyoming. URC states that it owns nearly all of the production rights in 
the field. URC states that the 15 wells drilled in the field have been 
shut in since 1994 because production of oil and gas is no longer 
economic. It is indicated that the production in the field was 
delivered into the facilities of either Questar Pipeline Company or 
Northwest Pipeline Corporation, and that the interconnecting facilities 
are still in place. It is stated that available geological data 
indicate that the field has the potential to operate as an economical 
storage facility and that some producible gas reserves may remain in as 
yet undeveloped gas cap.
    URC states that it desires to test the Clear Creek Field for two 
purposes: (1) to determine whether there remains a gas cap with 
sufficient reserves to justify further drilling and production, and (2) 
to determine whether the Clear Creek field could be converted to an 
economically viable storage field. It is stated that, by conducting a 
60-to-90 day pressure test, after installation of a rented 1,000 
horsepower compressor and associated concrete pad, URC believes that it 
can answer both questions.
    URC states that it currently anticipates that if the tests show 
that the Clear Creek field should be developed as a storage facility 
subject to the Natural Gas Act (NGA), URC or its subsidiary, QET, would 
apply for a certificate under Section 7(c) of the NGA. URC further 
anticipates that pipeline construction would be undertaken to connect 
the field to additional pipelines in the area and URC or QET would 
operate Clear Creek as a private storage field to support QET's natural 
gas marketing operations.
    URC indicates that, inasmuch as testing is needed to perform an 
obviously non-jurisdictional production purpose--testing for the gas 
cap--and since the field may never be converted to storage, it is not 
clear that any Commission authorization is needed for the test. It is 
stated, because natural gas for the test will be received from Questar, 
an interstate pipeline, and redelivered to the same interstate 
pipeline, URC has filed the petition out of an abundance of caution.
    URC states that, as part of the test, it will install and operate a 
compressor and related piping in order to inject gas into the field; 
monitor pressures in, and flows into and from the reservoir; and 
receive gas from an interstate pipeline and inject the gas into the 
reservoir; and redeliver natural gas used in the test in interstate 
commerce. It is indicated that it will receive the gas from Questar 
from an existing tap and gathering lines now used to connect the field 
into Questar's system. It is also indicated that URC and Questar will 
reverse the historic direction of gas flow to permit gas to be 
delivered for testing purposes. URC states that it will inject 
approximately 225,000 Mcf through an existing well for around 30 days 
at approximately 4,000 psi. URC also states that, following injection 
URC will monitor pressures and flows of gas out of the injection well 
for another 30 days. It is indicated that the pressure and flow rates 
will provide information necessary to determine both the nature of the 
gas cap and the potential for developing a viable storage field. URC 
states that it will conduct the tests in compliance with the 
environmental requirements of the Commission's blanket certificate 
regulations, as set forth in Section 157.206(d) of the Commission's 
regulations and any requirements imposed upon it by the Bureau of Land 
Management.
    URC states that it believes that an exemption for temporary acts 
and operations pursuant to Natural Gas Act Section 7(c)(1)(B) would 
apply to all necessary authorizations. However, URC requests pregranted 
abandonment authorization in the event the Commission does not exempt 
the above-described actions.
    Any person desiring to be heard or to make any protest with 
reference to said petition should on or before June 13, 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 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.

[[Page 27063]]

    Take further notice that, pursuant to the authority contained in 
and subject to the 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 petition 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 interview 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 URC to appear or be represented at the 
hearing.
Lois D. Cashell,
Secretary.
[FR Doc. 96-13492 Filed 5-29-96; 8:45 am]
BILLING CODE 6717-01-M