[Federal Register Volume 61, Number 117 (Monday, June 17, 1996)] [Notices] [Pages 30606-30609] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 96-15252] ----------------------------------------------------------------------- DEPARTMENT OF ENERGY [Docket No. CP96-213-001, et al.] Columbia Gas Transmission Corporation, et al.; Natural Gas Certificate Filings June 11, 1996. Take notice that the following filings have been made with the Commission: 1. Columbia Gas Transmission Corporation [Docket No. CP96-213-001] Take notice that on June 7, 1996, Columbia Gas Transmission Corporation (Columbia), a Delaware corporation, having its principal place of business at 1700 MacCorkle Avenue, S.E., Charleston, West Virginia 25314-1599, filed an abbreviated application pursuant to Section 7(c) of the Natural Gas Act, to amend its application for a certificate of public convenience and necessity previously filed with the Commission on February 28, 1996, in Docket No. CP96-213-000, for its Market Expansion Project as supplemented on March 18, 1996 and April 30, 1996. Columbia's February 28, 1996 application sought a certificate of public convenience and necessity authorizing construction to provide 506,795 dekatherms per day (dth/d) of additional daily firm entitlements to its customers over a three-year period beginning in 1997. Specifically, Columbia sought authority to: (i) increase the performance capabilities of certain existing storage fields; (ii) construct and operate, upgrade, and replace certain natural gas facilities; (iii) abandon certain natural gas facilities and certain base storage gas; and (iv) such other authorizations and/or waivers as may be deemed necessary to implement Columbia's Project. By this amendment, Columbia now proposes to withdraw certain proposed facility projects including 45.5 miles of pipeline and 14,130 horsepower of compression located in southern Pennsylvania, and in lieu of such projects, to lease firm capacity from Texas Eastern Transmission Corporation (Texas Eastern). After the filing of Columbia's application, Texas Eastern proposed to Columbia that Texas Eastern expand a portion of its pipeline system in Pennsylvania in order to make available to Columbia an amount of firm capacity (141,500 dekatherms (Dth) per day) pursuant to a Lease at less cost to Columbia and its customers than Columbia's cost to expand its southern Pennsylvania Line 1804 system, which construction has been previously identified in Columbia's application as Projects 4.3, 4.4, 4.5, 4.12, 4.13, 4.15, 4.16, 5.2, 5.3, 5.11, 5.12, 5.13 and 5.14. Columbia requests Commission approval of the lease arrangement with Texas Eastern to treat the lease as an operating lease, and to recover its costs pursuant to its TCRA. The lease costs to be paid by Columbia to Texas Eastern are proposed to be recovered by Columbia as an operating cost under Account 858. Under the terms of a lease agreement entered into by Texas Eastern and Columbia, Texas Eastern will: i) construct, own, operate, and maintain certain facilities on its pipeline system in southern Pennsylvania and make available the resulting 141,500 Dth/d of capacity to Columbia on a firm basis. The lease provides that Texas Eastern will lease capacity to Columbia on a phased-in basis commencing November 1, 1997, consistent with the phased implementation of Columbia's Project, up to a total of 141,500 Dth/d of firm transportation capacity, plus such additional capacity as needed to accommodate retainage, as follows: Phase-in date of capacity in (Dth/d) and monthly charge 1. November 1, 1997................................ 36,000 $242,310 2. November 1, 1998................................ 85,800 540,750 3. November 1, 1999................................ 141,500 807,670 and continuing through the remainder of the term of the Lease. In addition, Columbia will reimburse Texas Eastern for its monthly operation and maintenance costs associated with [[Page 30607]] the Texas Eastern incremental facilities being constructed to provide the above phased-in amounts of capacity under the lease (``O&M Payment''). Such operation and maintenance costs include a stipulated monthly charge for operation and maintenance expenses, excluding fuel, electric power, and property taxes, which expenses will be adjusted based on the Gross National Product Implicit Price Deflator as specified in the Lease Agreement attached to the application. Charges for fuel, electric power and property taxes are based on actual incurred costs as detailed in the Lease Agreement. Columbia will utilize the leased capacity on Texas Eastern's system, along with the capacity to be created on its own system, to render the firm transportation and storage service for which Columbia's expansion customers have entered into 15-year service agreements. Columbia will deliver gas into Texas Eastern's facilities at its Waynesburg Compressor Station and will receive gas out of Texas Eastern's facilities at its Eagle Compressor Station also in Pennsylvania. The details of Texas Eastern's proposal are set forth in its application which is being filed concurrently in Docket No. CP96- 559-000. Comment date: June 28, 1996, in accordance with Standard Paragraph F at the end of this notice. 2. Great Lakes Gas Transmission Limited Partnership [Docket No. CP96-553-000] Take notice that on May 31, 1996, Great Lakes Gas Transmission Limited Partnership (Great Lakes), One Woodward Avenue, Suite 1600, Detroit, Michigan 48226, filed in Docket No. CP96-553-000 a request pursuant to Sections 157.205 and 157.211 of the Commission's Regulations under the Natural Gas Act (18 CFR 157.205, 157.211) for authorization to construct and operate a meter station and dual line taps in Itasca County, Minnesota, under Great Lakes' blanket certificate issued in Docket No. CP90-2053-000 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. Great Lakes states that it will deliver up to 500 Mcf of natural gas per day for the account of the City of Cohasset, Minnesota (Cohasset). Natural gas will be received at existing receipt points located in Great Lakes' Eastern Zone and an equivalent quantity will be redelivered upstream through the new meter station and line taps, to be located in Great Lakes' Western Zone. This transportation for Cohasset's account will not impact Great Lakes' existing peak day and annual delivery capability, can be provided without detriment or disadvantage to any other shipper on Great Lakes' system, is not prohibited by its existing tariff, and the total volumes delivered will not exceed total volumes authorized prior to this request. In addition, Great Lakes states that the proposed new meter station and line taps will be constructed adjacent to its main line proximate to the City of Cohasset, in Itasca County, Minnesota. Great Lakes further states that Cohasset will utilize Great Lakes' service in connection with providing new natural gas service within the City of Cohasset. Great Lakes estimates that the cost of constructing its proposed facilities will be approximately $300,000. Comment date: July 26, 1996, in accordance with Standard Paragraph G at the end of this notice. 3. Green Canyon Gathering Company [Docket No. CP96-557-000] Take notice that on June 4, 1996, Green Canyon Gathering Company (Green Canyon), P.O. Box 2511, Houston, Texas 77252-2511, filed in Docket No. CP96-557-000 a petition under Rule 207 of the Commission's Rules of Practice and Procedure (18 CFR 385.207) for a declaratory order stating that a proposed pipeline project, known as the Green Canyon Gathering System (Gathering System), which Green Canyon proposes to construct and operate on the Outer Continental Shelf (OCS) in the Gulf of Mexico, will be exempt from the Commission's jurisdiction under Section 1(b) of the Natural Gas Act (NGA), all as more fully set forth in the petition which is on file with the Commission and open to public inspection. It is stated that the proposed Green Canyon Gathering System is designed to gather gas produced from new and existing platforms on the OCS and to deliver the production to interstate and intrastate pipelines that connect to the Gathering System at the outlet side of an onshore processing plant. Green Canyon states that the Gathering System will extend to the edge of the OCS, will be able to connect to platforms throughout its entire length (including beyond the OCS and near the shore), and will have no compression. It is further stated that, upon being placed in service, the Gathering System will provide gas producers on the OCS and their shippers with a means by which to deliver their supplies to the interstate and intrastate networks. Green Canyon contends that the increased competition that this will provide for services on the OCS will lead to reduced costs and will further the Commission's policy to promote market oriented services in the natural gas industry. Green Canyon states that the Gathering System will be 133 miles long and 24 inches in diameter throughout its length. It will extend into water depths of approximately 630 feet and will be capable of receiving production from platforms located in deep waters well in excess of 200 meters in the Green Canyon, Ewing Bank and Mississippi Canyon Areas of the OCS. It is stated that the Gathering System will be constructed in an inverted ``Y'' configuration, with the three legs of the system interconnecting in South Timbalier Block 193. It is stated that the east leg will be 36.5 miles long, the west leg will be 32 miles long and the north leg will be 55 miles to the onshore Leeville liquids separation facility in La Fourche Parish, Louisiana and an additional 9.82 miles to the Golden Meadows processing plant. It is stated that the Gathering System is designed to gather gas produced along its length, including gas produced near the shore along the north leg in the Ship Shoal, South Timbalier and Grand Isle Areas of the OCS, as well as in deep waters well beyond the Continental Shelf. Green Canyon projects that the Gathering System will be capable of accessing approximately 505 Bcf of estimated reserves along the north leg, approximately 1,227 Bcf along the east leg and 1,685 Bcf along the west leg. Green Canyon anticipates that laterals of various lengths and diameters will be built by the producers from their production platforms to the Gathering System, allowing the system to operate as a ``spine'' system. It is stated that at this developmental stage of the proposed project, no production has been committed to the Gathering System. However, based on exploration and development drilling activity in the Gathering System's service area, it is stated that future deliverability is expected to greatly outpace the ability of the existing pipeline and gathering infrastructure in the region to deliver gas onshore for processing. Green Canyon contends that the OCS is characterized by a mix of pipeline systems; some of which have been functionalized as interstate transmission and others are considered to involve nonjurisdictional gathering. It is stated that the owners of these facilities include interstate and unregulated pipelines as well as natural gas producers who have constructed gathering systems to access their own [[Page 30608]] production in addition to the production of others. It is stated that OCS facilities owned by interstate pipelines are mostly functionalized as transmission subject to the Commission's jurisdiction under Section 1(b) of the NGA, while those owned by the producers have largely been determined to be gathering systems exempt from the Commission's jurisdiction under the NGA. It is averred that this has given the producers an artificial advantage in competing for the gathering business in the OCS, since they are free of the restraints to which the regulated systems are subject. Green Canyon believes that a pressing need exists for gathering services on the OCS, which it hopes to fulfill with its proposed facilities. In order for an investment in this project to be justified, however, Green Canyon states that it must be able to compete on an equal footing with the unregulated producers on the OCS for gathering services. Thus, Green Canyon seeks for the Commission to declare its Green Canyon Gathering System a nonjurisdictional gathering system. In order to meet a projected in-service date of November 1997, Green Canyon will need to enter into binding commitments by the last quarter of 1996 for materials related to the construction of the Gathering System. It is stated that construction must begin by the spring of 1997 if the Gathering System is to come on line by the fourth quarter of 1997. Accordingly, Green Canyon requests that the Commission issue a declaratory order of nonjurisdictional status no later than September 1996. Comment date: July 2, 1996, in accordance with the first paragraph of Standard Paragraph F at the end of this notice. 4. Texas Eastern Transmission Corporation [Docket No. CP96-559-000] Take notice that on June 7, 1996, Texas Eastern Transmission Corporation (``Texas Eastern''), 5400 Westheimer Court, Houston, Texas 77056-5310, filed in the above docket an application with the Federal Energy Regulatory Commission (``Commission'') pursuant to Section 7(c) of the Natural Gas Act for a certificate of public convenience and necessity and related authorizations permitting Texas Eastern to: (1) Construct, install, own, operate and maintain the incremental pipeline facilities and associated ancillary above-ground facilities to comply with applicable Department of Transportation requirements, install one new gas turbine compressor unit, modify six (6) existing reciprocating units, upgrade two existing compressor units and modify an existing M&R Station, all as more fully described in the application; (2) Lease to Columbia Gas Transmission Corporation (``Columbia'') 141,500 Dth/d of firm transportation capacity, plus fuel, on a phased basis (Columbia filed its proposal to lease these facilities from Texas Eastern concurrently in Docket No. CP96-213-001); (3) Charge and collect, over the term of the capacity lease agreement between Texas Eastern and Columbia (``Capacity Lease Agreement''), all monthly charges as provided for in the Capacity Lease Agreement; (4) Pregranted abandonment of the certificate of public convenience and necessity and related authorizations granted herein, upon the termination of the Capacity Lease Agreement or any reduction in leased capacity quantities after completion of the primary term; and (5) Such other authority and/or waivers as may be deemed necessary by the Commission to facilitate implementation of the proposal contained herein. Specifically, Texas Eastern proposes to construct the following Expansion Facilities: (a) Replace approximately 6.15 miles of idled 20-inch pipeline with new 24-inch pipeline connecting existing M&R Station 70012 at milepost 1140.38 to the 24-inch Crayne Farm Pipeline at milepost 1146.50 in Greene County, Pennsylvania; (b) Replace approximately 10.97 miles of idled 24-inch pipeline with new 36-inch pipeline from approximate milepost 1060.67 to approximate milepost 1071.64 in Somerset County, Pennsylvania between Texas Eastern's existing Uniontown (Station 21-A) and Bedford (Station 22-A) Compressor Stations; (c) Replace approximately 9.12 miles of idled 24-inch pipeline with new 36-inch pipeline from approximate milepost 1114.61 to approximate milepost 1123.73 in Fulton County, Pennsylvania between Texas Eastern's existing Bedford (Station 22-A) and Chambersburg (Station 23) Compressor Stations; (d) Upgrade by 4500 HP to 11,000 HP the existing 6500 HP electric compressor at the Uniontown (Station 21-A) Compressor Station; (e) Add 13,400 gas turbine HP and compressor cylinder modifications at Texas Eastern's Marietta (Station 24) Compressor Station, with cylinder modifications to be performed on six existing reciprocating units; (f) Upgrade the existing 3500 HP gas turbine unit at Texas Eastern's Waynesburg Compressor Station by 1,500 HP in 1999; (g) Upgrade Texas Eastern's existing interconnection with Columbia at Waynesburg, M&R Station 70012 located in Greene County, Pennsylvania, to accommodate 141,500 Dth/d of natural gas plus fuel; and (h) Install ancillary above-ground appurtenant facilities, including but not limited to mainline, crossover and blowoff piping and valving, pressure regulating devices, launchers and receivers for internal inspection instruments and cleaning devices, and associated piping and valves for operating and maintenance purposes associated with each of the referenced pipeline replacements. As indicated in Exhibits F-I through F-IV of its application, the Expansion Facilities are proposed to be installed within Texas Eastern's existing pipeline corridor. In order to provide the Expansion Capacity as scheduled on November 1, 1997, Texas Eastern desires to commence construction of the Expansion Facilities by May 1, 1997. Assuming commencement of construction on May 1, 1997, the estimated total cost of the proposed facilities in current year dollars is approximately $63.2 million. The Lease provides that Texas Eastern will lease capacity to Columbia on a phased-in basis commencing November 1, 1997, consistent with the phased implementation of Columbia's Project, up to a total of 141,500 Dth/d of firm transportation capacity, plus such additional capacity as needed to accommodate retainage, and charge for such capacity as follows: Phase-in date of capacity in (Dth/d) and monthly charge 1. November 1, 1997................................ 36,000 $242,310 2. November 1, 1998................................ 85,800 540,750 3. November 1, 1999................................ 141,500 807,670 and continuing through the remainder of the term of the Lease. In addition, Columbia will reimburse Texas Eastern for its monthly operation and maintenance costs associated with the Texas Eastern incremental facilities being constructed to provide the above phased-in amounts of capacity under the Lease (``O&M Payment''). Such operation and maintenance costs include a stipulated monthly charge for operation and maintenance expenses, excluding fuel, electric power, and property taxes, which expenses will be adjusted based on the Gross National Product Implicit Price Deflator as specified in the Lease Agreement [[Page 30609]] attached to the Application. Charges for fuel, electric power and property taxes are based on actual incurred costs as detailed in the Lease Agreement. Comment date: June 28, 1996, in accordance with Standard Paragraph F 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 Section 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. 96-15252 Filed 6-14-96; 8:45 am] BILLING CODE 6717-01-P