[Federal Register Volume 61, Number 171 (Tuesday, September 3, 1996)]
[Notices]
[Pages 46457-46458]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-22307]


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DEPARTMENT OF ENERGY
[Docket No. CP96-737-000]


Texas-Ohio Pipeline, Inc.; Notice of Application

August 27, 1996.
    Take notice that on August 21, 1996, Texas-Ohio Pipeline, Inc. 
(Texas-Ohio), 800 Gessner, Suite 900, Houston, Texas 77024, filed an 
application pursuant to Section 7(b) of the Natural Gas Act for 
permission and approval to abandon, by sale to Total Compression 
Incorporated (TCI), two compressors and appurtenant equipment from its 
existing facilities located in Garrard County, Kentucky, and for the 
authority to lease back from TCI one of the compressors for continued 
service on its existing pipeline facilities, all as more fully set 
forth in the application which is on file with the Commission and open 
to public inspection.
    Texas-Ohio requests that the Commission treat the proposed 
abandonment and leaseback arrangement as one transaction for purposes 
of granting the necessary authorizations. Texas-Ohio further requests 
that the Commission grant the requested abandonment and leaseback 
authority retroactive to October 1, 1995, the date the abandonment and 
leaseback transaction actually took place, or alternatively, grant 
whatever waivers of the Commission's rules and regulations are 
necessary to amend Texas-Ohio's NGA Section 7(c) certificate to reflect 
these transactions.
    Texas-Ohio states that it was constructed to operate as a winter 
peaking service which allowed gas flow around historical bottlenecks 
created in Tennessee Gas Pipeline Company's (Tennessee) and Texas 
Eastern Transmission Corporation's (TETCO) supply area. Texas-Ohio 
states that its facilities consist of approximately 600 feet of 10-inch 
pipeline and two gas compression units each with approximately 980 
horsepower. With the advent of Order No. 636 and the restructuring of 
the interstate pipeline industry, Texas-Ohio states that its pipeline 
operations have significantly changed. It is stated that unbundling of 
pipeline services and rate structure changes on the interstate 
pipelines have changed the economics and the flow of natural gas on 
both the interconnecting pipelines of Texas-Ohio's system to a point 
where historical bottlenecks occur less often, requiring substantially 
less peaking service. It is stated that the original transportation 
design capacity of Texas-Ohio's facilities is 60,000 Mcf per day. At 
present, Texas-Ohio states that it has no long-term firm transportation 
shippers; it only transports gas pursuant to interruptible and short-
term firm (less than 30 days) transportation agreements.
    Texas-Ohio states that in early 1995, it began evaluating 
alternatives to reduce the costs of operating its facilities in light 
of a significant reduction in system throughput since the advent of 
Order No. 636. Since Order No. 636, which has led to the increased use 
of released firm capacity at the expense of interruptible capacity on 
both Tennessee and TETCO, shippers have become for less reliant on 
interruptible transportation, alleviating much of the bottlenecks that 
historically occurred on these systems, and, more

[[Page 46458]]

importantly, dramatically lessening the throughput on Texas-Ohio's 
facilities.
    Texas-Ohio states that in an effort to reduce operating costs, in 
the Spring of 1995 it explored various business opportunities, 
including the potential abandonment and sale of surplus compression 
facilities that it owned and the leasing back of such facilities at 
lower operating expenses, thus reducing its overall cost-of-service and 
rates. Specifically, Texas-Ohio estimates that a net rate reduction 
from 5.18 cents/MMBtu to approximately 4.5 cents/MMBtu would occur (on 
a 100 percent volumetric basis) as a result of the proposed transaction 
with TCI.
    Any person desiring to be heard or to make any protest with 
reference to said application should on or before September 17, 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.
    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 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 Texas-Ohio to appear or be represented at 
the hearing.
Lois D. Cashell,
Secretary.
[FR Doc. 96-22307 Filed 8-30-96; 8:45 am]
BILLING CODE 6717-01-M