[Federal Register Volume 61, Number 166 (Monday, August 26, 1996)]
[Notices]
[Pages 43757-43760]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-21609]


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DEPARTMENT OF ENERGY
[Docket No. CP96-582-000, et al.]


Texas Gas Transmission Corporation, et al.; Natural Gas 
Certificate Filings

August 19, 1996.
    Take notice that the following filings have been made with the 
Commission:

1. Texas Gas Transmission Corporation

[Docket No. CP96-582-000]

    Take notice that on June 18, 1996, Texas Gas Transmission 
Corporation (Texas Gas), P.O. Box 20008, Owensboro, Kentucky 42304 
filed, in Docket No. CP96-582-000, a petition to amend the certificate 
issued on October 26, 1956, in Docket No. G-10594, pursuant to Section 
7(c) of the Natural Gas Act and Part 157 of the Commission's 
Regulations, to incorporate additional acreage to the storage boundary 
of the Dixie Storage Field (Dixie Field) located in Henderson County, 
Kentucky, all as more fully set forth in the application which is on 
file with the Commission and open for public inspection.
    Texas Gas seeks authorization to acquire by lease, purchase or the 
exercise of eminent domain, approximately 837 additional acres 
contained in seven lease tracks inside what would become the new 
boundary of the Dixie Field. Texas Gas states that analysis and testing 
of the storage reservoir indicated that communication exists between 
the original boundaries of the Dixie Field and certain production 
reservoirs located below the additional acreage proposed to be 
acquired. Texas Gas says the proposed additional storage acreage is 
required to protect the integrity of the Dixie Field.
    Comment date: September 9, 1996, in accordance with Standard 
Paragraph F at the end of this notice.

2. CNG Transmission Corporation

[Docket No. CP96-700-000]

    Take notice that on August 8, 1996, CNG Transmission Corporation 
(CNGT), 445 West Main Street, Clarksburg, West Virginia 26301, filed a 
prior notice request with the Commission in Docket No. CP96-700-000, as 
supplemented on August 15, 1996, pursuant to Section 157.205 of the 
Commission's Regulations under the Natural Gas Act (NGA) for 
authorization to abandon outdated metering and regulating facilities 
and to replace it by adding new measurement and flow control devices 
and bi-directional capabilities at CNGT's existing measuring and 
regulating station in Loudon Township, Carroll County, Ohio, under 
CNGT's blanket certificate issued in Docket No. CP82-537-000 pursuant 
to Section 7 of the NGA, all as more fully set forth in the request 
which is open to the public for inspection.
    CNGT proposes to abandon and replace outdated metering and 
regulating facilities (some of which are no longer serviceable) at its 
existing Loudon Township measuring station which CNGT uses to deliver 
gas to East Ohio Gas Company (East Ohio). CNGT proposes to replace its 
outdated measuring and regulating equipment by adding new measurement 
and flow control devices and bi-directional capabilities in order to 
serve as an interconnection with East Ohio. CNGT would deliver to East 
Ohio up to 190,000 Dth equivalent of natural gas per day for East 
Ohio's system requirements. CNGT verifies that the proposed natural gas 
volumes it would deliver to East Ohio are within East Ohio's 
certificated entitlements. CNGT estimates that the proposed upgrades at 
the Loudon Township measuring and

[[Page 43758]]

regulating station would cost $775,000 to accomplish.
    Comment date: September 30, 1996, in accordance with Standard 
Paragraph G at the end of this notice.

3. Gas Transport, Inc.

[Docket No. CP96-704-000]

    Take notice that on August 12, 1996, Gas Transport, Inc. (Gas 
Transport), P.O. Box 430, Lancaster, Ohio 43130-0430, filed in Docket 
No. CP96-704-000, an application, pursuant to Section 7(c) of the 
Natural Gas Act, for a certificate of public convenience and necessity 
authorizing the construction and operation of a new delivery point and 
related facilities, all as more fully set forth in the application 
which is on file with the Commission and open to public inspection.
    Gas Transport proposes to construct and operate a new delivery 
point and a related metering station in Wood County, West Virginia to 
provide transportation service to Fenton Art Glass Company (Fenton). 
The estimated cost of the facilities is $38,500. Fenton currently 
receives gas from Hope Gas Company, Inc. and local producers and has 
indicated a desire to establish a secondary source of gas supply 
through a direct connection with Gas Transport. Gas Transport states 
that it will provide firm and interruptible transportation to Fenton at 
its existing rates pursuant to Part 284 of the Commission's 
regulations.
    Comment date: September 9, 1996, in accordance with Standard 
Paragraph F at the end of this notice.

4. Discovery Producer Services LLC

[Docket No. CP96-711-000]

    Take notice that on August 14, 1996, Discovery Producer Services 
LLC (DPS), P.O. Box 4700, 1111 Bagby Street, Houston, Texas 77002, 
filed a petition for declaratory order in Docket No. CP96-711-000, 
requesting that the Commission declare that facilities to be 
constructed from the Outer Continental Shelf (OCS) to a proposed 
onshore processing facility would have the primary function of 
gathering natural gas and would thereby be exempt from the Commission's 
jurisdiction pursuant to Section 1(b) of the Natural Gas Act, all as 
more fully set forth in the petition which is on file with the 
Commission and open to public inspection.
    DPS states that the proposed pipeline is designed to attach 
existing and proposed development projects in the Mississippi Canyon, 
Green Canyon, Ewing Bank, South Timbalier, and Grand Isle areas. DPS 
indicates that the system would consist of approximately 147 miles of 
pipe ranging in size from 18 to 30 inches and four meter stations. It 
is stated that the system would consist of a spine or mainline, 104.36 
miles in length and 30 inches in diameter, and extending from a 
platform in Ewing Bank (EW) Block 873 operated by Marathon Oil Company 
and Texaco Exploration and Production Inc. and extending to a proposed 
onshore processing plant near Larose, Lafourche Parish, Louisiana. It 
is stated that the proposed pipeline will roughly parallel the edge of 
the OCS for a significant portion of its offshore route. DPS also 
states that the system will initially include two laterals, with one 
10.8 mile, 20-inch lateral proceeding in an easterly direction from the 
main trunkline to Grand Isle South Addition Block 115 (GI 115) and one 
26.2 mile, 18-inch lateral proceeding in a westerly direction to South 
Timbalier (ST) Block 200. DPS indicates that it would also construct a 
parallel 24-inch line for the last 6.4 miles to serve as a bypass line 
to assist in pigging operations, and 2,300 feet of 30-inch pipeline to 
attach the proposed plant to the facilities of Bridgeline Gas 
Distribution LLC. DPS states that it is contemplating additional 
laterals and interconnects.
    DPS states that the proposed facilities meet the criteria in 
support of its claim that the facilities are gathering as set forth in 
a February 28, 1996, Statement of Policy with respect to OCS 
facilities, 74 FERC para. 61,222 as well as the gathering criteria set 
forth in Farmland Industries, Inc., 23 FERC para. 61,063. as modified 
in later orders. DPS states that the Commission in its OCS Policy 
Statement added a new element to its analysis, granting a presumption 
of gathering to facilities designed to collect gas produced from water 
depths of 200 meters or greater, with the presumption extending to 
facilities up to the point or points of potential connection with the 
interstate pipeline grid. DPS submits that the entirety of its proposed 
system was primarily designed to collect gas from deepwater wells, and 
should be granted such a presumption. DPS also states that it will 
gather gas from wells located in wells located in shallower water along 
its route. DPS indicates that the initial construction of the proposed 
gathering system will be primarily at water depths of less than 200 
meters, but that the wells to be connected to the system at EW 873 are 
in depths greater than 200 meters. DPS also states that the GI 115 
lateral is expected to eventually serve as a landing point for 
deepwater production as well, and since much of DPS's offshore route is 
roughly parallel to the OCS, the line is well positioned to serve as a 
landing point for deep production.
    DPS states that, under this theory, the entire system should be 
granted a presumption of gathering. Accordingly, DPS requests that the 
Commission disclaim jurisdiction over the entire system as proposed and 
the any future construction upstream of EW 873, GI 115, and ST 200 
should qualify under this presumption.
    DPS states that, as a second element of the gathering policy, the 
Commission indicated that where proposed OCS facilities are in 
proximity to existing interstate pipelines, the Commission will 
determine jurisdictional status on the basis on the existing primary 
function test. DPS submits that, since portions of the proposed 
facilities could be viewed as falling within this element of the 
Commission's review process as a result of the location of other 
interstate pipelines in the general area of DPS's proposed route, DPS 
is also analyzing the proposed construction downstream of the EW 
platform under the modified primary function test.
    With respect to the length and diameter of the line, DPS submits 
that the 104-mile length of the spine is solely a function of the 
production to be attached and the location of the nearest pipeline 
infrastructure with sufficient capacity to receive the full amount of 
projected production. DPS submits that, although the applicability of 
the central point in the field is questionable with respect to isolated 
OCS operations, the DPS gathering system, like Viosca Knoll Gathering 
System, resembles a spine and laterals network, and will aggregate 
production for delivery to the central point located at the proposed 
production plant. DPS states that there is no planned compression on 
the system, but that, in the future, producers may add compression at 
individual platforms. DPS states that gas injected into the system will 
not be processed, but will be dehydrated and free liquids will be 
mechanically separated from the gas. DPS also notes that the system 
will be a spine and laterals design, attaching wells located on both 
the onshore and offshore segments. DPS also notes that the offshore 
terminus is expected to serve as a collection point for additional gas 
produced from prospects in the EW Area.
    DPS projects that initial operating pressures of its system will 
range from 1250 psig at the EW 873 platform to approximately 900 psig 
at the onshore terminus. DPS estimates pressure on the GI 115 and ST 
200 laterals at 1300 and 1400 psig, respectively. DPS indicates that 
the facilities will operate at high

[[Page 43759]]

pressures because the offshore gas is produced at high pressures.
    Comment date: September 9, 1996, in accordance with the first 
paragraph of Standard Paragraph F at the end of this notice.

5. Discovery Gas Transmission LLC

[Docket Nos. CP96-712-000 and CP96-719-000]

    Take notice that on August 14, 1996, Discovery Gas Transmission LLC 
(Discovery), P.O. Box 60252, 400 Poydras Street, Suite 2016, New 
Orleans, Louisiana 70130, filed in Docket Nos. CP96-712-000 an 
application, pursuant to Section 7(c) of the Natural Gas Act and Parts 
284 and 157 of the Commission's Regulations, for a certificate of 
public convenience and necessity to construct and operate pipeline, 
lateral and metering facilities and for blanket authority to provide 
open-access firm and interruptible transportation service. Discovery 
also filed in Docket No. CP96-719-000 for blanket authority pursuant to 
Part 157, Subpart F of the Commission's Regulations to engage in 
certain routine activities,1 all as more fully set forth in the 
applications, which are on file with the Commission and open for public 
inspection.
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    \1\ Discovery Producer Services LLC has filed in Docket No. 
CP96-711-000 a petition seeking that the Commission declare that its 
proposed facilities are gathering facilities exempt from Commission 
jurisdiction pursuant to Section 1(b) of the Natural Gas Act. 
Discovery seeks the requested authorization only if the Commission 
finds that any of the requested facilities are subject to the 
Commission's jurisdiction.
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    Discovery indicates that the proposed facilities include 
approximately 147 miles of pipe ranging in diameter from 18 to 30 
inches. It is stated that the spine of the system will extend 
approximately 104 miles from a platform in Ewing Bank (EW) 873 to a 
proposed processing plant near Larose, Louisiana. Discovery also 
proposes to construct a parallel 24-inch line for the last 6.4 miles to 
serve as a bypass line to assist in pigging operations. It is also 
stated that two laterals extend from the spine 10.8 miles (20-inch 
pipe) to a platform in Grand Isle (GI) South Addition 115 and from the 
spine 26.2 miles (18-inch pipe) to South Timbalier (ST) Block 200. 
Discovery states that the system will include four meter stations, one 
each in EW 873, GI 115, and ST 200 and one at the plant inlet. It is 
stated that the system will also include two main line valve platforms, 
one which will serve as a pig launching/receiving platform, and a 
slugcatcher. Discovery also plans to construct 2,300 feet of 30-inch 
line at the plant tailgate to attach the system to the facilities of 
Bridgeline Gas Distribution LLC.
    Discovery indicates that the capacity of the system will be 
approximately 600,000 Mcf per day and 7,500 barrels of condensate per 
day, with the majority of the anticipated throughput from wells at 
water depths greater than 600 feet, with some production at depths in 
excess of 2,000 feet. It is stated, however, that initial throughput 
will be from wells at shallower depths. It is also stated that 
construction of the new capacity is essential not only to serve 
existing developmental projects but also future development projects in 
the area.
    Discovery estimates a facilities cost of $187,880,100, which would 
be financed initially through a construction loan. Discovery states 
that, upon completion of construction, Discovery anticipates that 
twenty percent of the required capital will be furnished by the members 
of the limited liability company, and eighty percent will consist of 
bank debt.
    Discovery requests that it be issued a blanket certificate pursuant 
to Section 284.221 of the Commission's Regulations. Discovery proposes 
to provide transportation service under three rate schedules, including 
(1) FT-1 firm service based on the straight fixed variable methodology, 
(2) FT-2 volumetric firm service available to producers who commit gas 
to the system by January 1, 1997, and (3) IT interruptible service at 
the 100 percent load factor of the FT-1 rate. Discovery states that it 
anticipates holding an open season approximately two weeks from the 
date of filing to last for a period of three weeks.
    Discovery anticipates a build-up of throughput over the first three 
to five years of operation, and projects operations approaching the 
design capacity of the pipeline after the year 2000. Discovery proposes 
to base the depreciation on the straight line method and an estimated 
economic life of 15 years, yielding a rate of 6 \2/3\ percent per year. 
However, it is indicated that depreciation is used to levelize the 
proposed rate for transportation service at two levels, with the first 
ten years to recover the debt to be issued, and the remaining five 
years to recover the remaining investment. Discovery proposes to design 
the initial rates using the straight fixed variable method, and base 
the billing determinants on the projected throughput for the build-up 
period. Discovery proposes a rate of return of 14.5 percent to 
recognize the high risk associated with offshore projects. Therefore, 
Discovery proposes an initial reservation rate and usage charge under 
Rate Schedule FT-1 of $5.9994 per Mcf, and $0.1972 per Mcf, 
respectively, during the first ten years, decreasing to $3.3323 per Mcf 
and $0.1096 per Mcf, respectively for years 11 through 15. Under Rate 
Schedules FT-2 and IT-1, Discovery proposes a usage rate of $0.1972 per 
Mcf for the first ten years, and $0.1096 for the years 11-15.
    Also, Discovery requests that it be issued a blanket certificate 
pursuant to Subpart F of Part 157 of the Commission's Regulations, and 
states that it will comply with the terms, conditions and procedures of 
Subpart F of Part 157.
    Comment date: September 9, 1996, in accordance with Standard 
Paragraph F at the end of this notice.

6. Williston Basin Interstate Pipeline Company

[Docket No. CP96-713-000]

    Take notice that on August 15, 1996, Williston Basin Interstate 
Pipeline Company (Williston Basin), 200 North Third Street, Suite 300, 
Bismarck, North Dakota 58501, filed an abbreviated application pursuant 
to Section 7(b) of the Natural Gas Act and Sections 157.7 and 157.18 of 
the Commission's Regulations to abandon three natural gas storage wells 
and certain related facilities, all as more fully set forth in the 
application which is on file with the Commission and open to public 
inspection.
    Specifically, Williston Basin seeks Commission authorization to 
plug and abandon the Rider #1, Rider #4 and Hesse #2 gas storage wells, 
and to abandon the associated field lines, buildings, storage meters 
and other appurtenant facilities, all of which are located in the Billy 
Creek Storage Field, Johnson County, Wyoming.
    Comment date: September 9, 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

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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.
Linwood A. Watson, Jr.,
Acting Secretary.
[FR Doc. 96-21609 Filed 8-23-96; 8:45 am]
BILLING CODE 6717-01-P