[Federal Register Volume 61, Number 129 (Wednesday, July 3, 1996)] [Notices] [Pages 34805-34807] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 96-16931] ----------------------------------------------------------------------- DEPARTMENT OF ENERGY [Docket No. CP96-577-000] Plant Owners v. Continental Natural Gas, Inc.; Notice of Complaint and Motion for Show Cause Order June 27, 1996. Take notice that on June 17, 1996, Plant Owners, identified in the attached appendix, filed in Docket No. CP96-577-000, pursuant to Rules 206 and 212 of the Commission's Rules of Practice and Procedure (18 CFR 385.206, 385.212), a complaint and motion for an order to show cause against Continental Natural Gas, Inc. (CNG), alleging that CNG has constructed and is operating certain facilities that are subject to the [[Page 34806]] Natural Gas Act (NGA) without first obtaining authorization for these facilities pursuant to the certification procedures of NGA Sec. 7(c). Plant owners own the Laverne processing plant that is operated by Conoco Inc. The attorney for Plant Owners is Bruce A. Connell, Esq., 600 N. Dairy Ashford, ML-1034, Houston, Texas 77079. Plant Owners' complaint is on file with the Commission and open for public inspection. Plant Owners state that the facilities at issue consist of approximately ten miles of 8-inch pipeline through which high pressure natural gas flows between the tailgate of CNG's Beaver processing plant and the mainline transmission facilities of ANR Pipeline Company (ANR) in Beaver County, Oklahoma. Plant Owners assert that these facilities transport pipeline quality, processed, residue gas from the processing plant into interstate markets. The line is described as having no apparent well connects or gathering line interconnects. It is stated that some Plant Owners produce natural gas behind CNG's Beaver Plant that is gathered by Colorado Interstate Gas Company, not ANR. Moreover, CNG has proposed to build connecting lines into the Laverne gathering area, where Plant Owners both produce and purchase natural gas. Plant Owners state that ANR has filed for authorization at Docket No. CP96-372-000 to construct and operate an interconnect between ANR's facilities appurtenant to Plant Owners' facilities and CNG's Beaver plant facilities. Plant Owners are concerned that the continuation of CNG's operation of jurisdictional facilities, without the protections provided by the NGA, will adversely affect their rights and opportunities to gain non-discriminatory, open access to interstate markets through the interstate pipeline grid. Plant Owners believe that, based on recent Commission precedent, the facilities at issue clearly perform a transmission function, as opposed to a gathering or production function. Plant Owners allege that CNG's control of the line as an unregulated operator would be anti-competitive since Plant Owners compete with CNG for purchasing, processing and interstate marketing of natural gas. It is stated that denial of Plant Owners' request would place Plant Owners in an untenable competitive position because CNG would control Plant Owners' access to interstate gas markets and would be able to charge an unregulated rate for the same service currently provided, i.e., access to ANR's mainline system. Further, Plant Owners state that GPM Gas Corporation (GPM) filed a complaint against CNG at Docket No. CP96-495-000 on the basis that certain proposed pipeline facilities upstream of CNG's Beaver plant should be properly functionalized as transmission facilities subject to the NGA. Plant Owners have intervened and filed in support of GPM's complaint. Plant Owners assert that, should GPM's position be sustained by the Commission in that proceeding, Plant Owners' position in the instant filing should be affirmed a fortiori. Plant Owners believe it would be inconsistent with any previous application of the modified primary function test to have gathering facilities downstream of mainline transmission facilities. Plant Owners ask that CNG be required to show cause as to why the subject line should not be considered to be performing a jurisdictional transmission activity for which a certificate under NGA Sec. 7(c) should have been obtained, and pending satisfaction of the Show Cause order, CNG be precluded from connecting Plant Owners' gas from the Laverne gathering system to CNG's Beaver plant. Any person desiring to be heard or to make any protest with reference to the complaint should 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). All such motions or protests, and a fully responsive answer of CNG to the complaint, should be filed on or before July 29, 1996. 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. Lois D. Cashell, Secretary. Plant owners Robert W. Jones Jr., Resources Ventures '73, 3501 Barclay, Amarillo, TX 79109, (806) 352-4374. Joanne H. Nor, 632\3/4\ North Doheny Drive, Los Angeles, CA 90069, (310) 278-9025. AnSon Company, P.O. 24060, Oklahoma City, OK 73124, (405) 528-0525, Contact: Daniel W. Fischer. Guest Petroleum, Incorporated, P.O. Box 805, 1600 SE 19th, Suite #204, Edmond, OK 73083-0805, (405) 341-8698, Contact: David A. Guest. Bond Operating Company, Agent, Bond Estate Properties, 325 North St. Paul, Suite 2810, Tower II, Dallas, TX 75201, 0 (214) 965-8766, Contact: James H. Bond. Bond Operating Company, 325 North St. Paul, Suite 2810, Tower II, Dallas, TX 75201, (214) 965-8766, Contact: James H. Bond. George M. Close, Trustee, Liberty Tower, 100 North Broadway, Suite 3113, Oklahoma City, OK 73102-8606, (405) 236-4388. Van Oil Co. 1730 Commerce Building, Ft. Worth, TX 76102, (817) 332- 3757, Contact: J.H. Van Zant. Madelon L. Bradshaw, 2120 Ridgmar Boulevard, Suite 12, Fort Worth, TX 76116, (817) 732-4252, Contact: Larry O. Hulsey. American Innovative Royalty Systems, P.O. Box 717, Pointblank, TX 77364, (409) 377-2833, Contact: Bennett Watts, Owner. Thomas D. Cabot, Deceased, Thomas D. Cabot, Jr., Executor, Cabot Corporation, 75 State Street, Boston, MA 02109, (617) 342-6006, Contact: Joan Whelton. Chevron U.S.A. Inc., (Warren Petroleum Company is a division of Chevron U.S.A. Inc.), Room 2260, 1301 McKinney Street, Houston, TX 77010, (713) 754-3415, Contact: Thomas D. Oliver, Senior Counsel. Warren Petroleum Company, 1350 South Boulder, Tulsa, OK 74119, (918) 560-4405, Contact: G.M. Spies. Lyons Petroleum Reserves, Incorporated, 14340 Torrey Chase Boulevard, Suite 270, Houston, TX 77014-1021, (713) 893-8540, Contact: Michael J. Nicol. Eagle Ridge Oil & Gas, Incorporated, 8517 South 77th East Place, Tulsa, OK 74133-6622, (918) 494-8928, Contact: Mark P. Godsey, President. Gallaspy Oil Properties, Ltd., P.O. Box 20472, Oklahoma City, OK 73156, (405) 842-5037, Contact: William C. Gallaspy. Kennedy & Mitchell, Incorporated, P.O. Box 612007, Dallas, TX 75261- 2007, (214) 753-6900, Contact: Michael R. Childers, Vice President. Kenneth W. Cory, Ltd., 6565 West Loop South, Suite 780, Bellaire, TX 77401-3518, (713) 661-5911, Contact: Pat Chesnut. *Locin Oil Corporation, 14340 Torrey Chase Boulevard, Suite 270, Houston, TX 77014-1021, (713) 893-8540, Contact: Michael J. Nicol. Southwest Oil Industries, 7557 Rambler Road, Suite 1100, Dallas, TX 75231, (214) 696-7705, Contact: Bobby R. McAlpin. Trident, NGL, 13430 Northwest Freeway, Suite 1200, Houston, TX 77040, Contact: Glenn Etienne, (713) 507-6830. Pine Crest Preparatory School Incorporated, 1501 Northeast 62nd Street, Fort Lauderdale, FL 3334, (954) 492-4116, Contact: Kenneth Kone. Statex Petroleum Incorporated, 1801 Royal Lane, Suite 110, Dallas, TX 75229, (214) 869-2800, Contact: Dhar Carman. Bernadette G. Wolfswinkel, 5861 South Kyrene Road #1, Tempe, AZ 85283, (602) 831-2000, Contact: Jim Gillespie. Earthtime, Incorporated, P.O. Box 164291, Austin, TX 78716-4291, (512) 306-9039, Contact: Steven R. Lockwood. Alan L. Lamb, 11900 North Penn, Suite C-1, Oklahoma City, OK 73120, (405) 755-2233, Contact: Alan L. Lamb. C&L Processors Partnership, c/o Conoco Inc., 600 North Dairy Ashford, Houston, TX 77079-2197, Contact: Patrick L. Meyer. [[Page 34807]] *Locin Oil Corporation is an affiliated company to Lyons Petroleum Reserves, Inc., but is not an owner in the Laverne Plant. [FR Doc. 96-16931 Filed 7-2-96; 8:45 am] BILLING CODE 6717-01-M