[Federal Register Volume 62, Number 92 (Tuesday, May 13, 1997)]
[Notices]
[Pages 26300-26301]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-12441]



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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. CP97-92-001]


Transcontinental Gas Pipe Line Corporation; Notice of Application

May 7, 1997.
    Take notice that on May 1, 1997, Transcontinental Gas Pipe Line 
Corporation (Transco), P.O. Box 1396, Houston, Texas 77251, filed in 
Docket No. CP97-92-001 an amendment to its initial application pursuant 
to Section 7(c) of the Natural Gas Act for a certificate of public 
convenience and necessity authorizing an extension and expansion of 
Transco's Mobile Bay Lateral (Project). Transco states that the purpose 
of the amendment is to eliminate or modify certain onshore and offshore 
facilities \1\ that were originally proposed, in order to revise the 
total capacity of the project to the dekatherm equivalent of 350 
million cubic feet per day (MMcf/d) of firm transportation capacity on 
the offshore extension of the Mobile Bay Lateral and 263.848 MMcf/d of 
additional firm transportation capacity \2\ in the existing onshore 
Mobil Bay Lateral, thereby reducing the scope of the Project to 
correspond to the firm transportation commitment evidenced by the 
transportation Precedent Agreement executed by Transco and Williams 
Energy Services Company (WESCO) all as more fully set forth in the 
application which is on file with the Commission and open to public 
inspection.
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    \1\ In referring to the ``offshore extension'' of its Mobile Bay 
Lateral, Transco states that approximately 72.0 miles of the 
extension as revised will be located offshore and approximately 4.0 
miles will be located onshore upstream of and connecting with 
Station No. 82, which is the existing terminus of the Mobile Bay 
Lateral.
    \2\ Transco states that it is sizing its onshore expansion 
facilities to provide less capacity than its offshore extension 
facilities based on its receipt of 86.152 MMcf/d of capacity 
relinquishment on the Mobile Bay Lateral. Transco states that 
together with the 263.848 MMcf/d of additional firm capacity, this 
Project provides for 350 MMcf/d of total onshore capacity.
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    Transco seeks authority to construct and place in service the 
Project facilities in phases. It is stated that in Phase I, Transco 
intends to place in service by July 1, 1998, all of its offshore 
extension facilities to provide the entire 350 MMcf/s of offshore 
capacity, as well as the Station No. 82 compression addition. As part 
of Phase I, Transco also seeks to place into service the onshore 
capacity which will become available as a result of the Mobile Bay 
Lateral capacity relinquishments requests in order to provide initial 
onshore capacity of 214.289 MMcf/d. In Phase II, Transco proposes to 
place into service by November 1, 1989 its Station No. 83 compression 
facilities for the remaining 135.711 MMcf/d of onshore capacity.
    Transco further requests authority to charge as its initial rate 
for the entire capacity its then current Rate Schedule FT maximum rate 
for Zone 4A upon placing the Phase I facilities in service. Transco 
also seeks to roll-in the revised costs associated with the Project as 
amended here in its first NGA Section 4 proceeding after Transco places 
all Project facilities in service.
    Transco states that the Project facilities as revised by this 
amendment will create firm transportation capacity of 350 MMcf/d from 
Main Pass Area Block 261 to Transco's Station No. 82 and 263.848 MMcf/d 
(which, in conjunction with 86.152 MMcf/d of capacity turnback on the 
Mobile Bay Lateral, provides for a total 350 MMcf/d of capacity) from 
Station No. 82 to Station No. 85 where Transco's Mobil Bay Lateral 
interconnects with its mainline in Choctaw County, Alabama.

Phase I Facilities

    Transco states that it will construct:

1. Offshore Extension Facilities

    a. Approximately 56.58 miles of 24-inch diameter pipeline extending 
from an offshore platform currently being designed for installation at 
East Main Pass, Block 261 (Transco has purchased a portion of SOCO's 
undivided ownership interest in the Block 261 platform in order to 
place a 24-inch spare launcher, measurement equipment, riser pipe and 
appurtenant facilities on the platform), to a proposed new junction 
platform located in the Mobile Bay Area, Block 822 (MB 822) which will 
be constructed, operated and owned by Transco.
    b. Approximately 18.89 miles of 30-inch diameter pipeline extending 
from the junction platform at MB 822 to a proposed nonjurisdictional 
separation and processing plant owned and operated by WFS, in Mobile 
County, Alabama. The total amount of 24, 30, and 36-inch pipeline 
required for the offshore extension is 75.66 miles.
    c. Junction Platform facilities in the MB 822 area, including a 24-
inch sphere receive and a 30-inch sphere launcher and appurtenant 
facilities.

2. Station No. 82 Compression Addition

    A 15,000 horsepower compression addition at Transco's existing 
Station No. 82 in Mobile County, Alabama (i.e., the amount of 
compression at Station No. 82 is reduced from the 26,000 horsepower 
addition which was originally proposed.

Phase II Facilities

    Transco states that it will construct a new Compressor Station No. 
83 in Mobile County, Alabama at Mobile Bay Lateral MP 68.4, housing a 
15,000 horsepower compressor unit.

Non-Jurisdictional Facilities

    Transco states that Williams Field Services Company (WFS) will 
construct, own and operate a 600 MMcf per day processing plant, 
including a 350 MMcf/d separation facility, immediately upstream of 
Compressor Station No. 82. The plant will be designed to remove liquids 
from the pipeline and deliver pipeline quality natural gas to the 
suction side of Compressor Station No. 82. The plant is estimated to 
require 30 acres of land and is planned to be located immediately to 
the west and adjacent to Compressor Station No. 82. (Transco states 
that these nonjurisdictional facilities are not included in the Project 
facilities.)
    Transco estimates that the cost of the Phase I and Phase II Project 
facilities, as revised by this amendment, will cost in the aggregate 
approximately $120.2 million.
    Transco states that immediately after filing its original 
application, it held an open season from November 15, 1996, through 
December 16, 1996 for the Project capacity. Transco concurrently 
requested offers of permanent firm capacity relinquishments from 
existing Mobile Bay Lateral shippers in order to approximately size the 
onshore portion of the Project expansion. Transco states that it 
received relinquishment offers from two entities: 58.616 MMcf/d from 
two FT contracts held by WESCO and 27.536 MMcf/d from one FT contract 
held by Enron Capital and Trade Resources Corp., for a total capacity 
relinquishment of 86.152 MMcf/d on the existing Mobile Bay Lateral. As 
a result of the open season, Transco and WESCO have executed a 15-year 
binding Precedent Agreement containing a subscription by WESCO for the 
full Project capacity of 362,250 Dt/d (based on Transco's tariff Btu 
conversion standard of 1035 Btu/cf, but in no event will Transco's 
transportation commitment exceed 350 MMcf/d on any day, irrespective of 
the actual Btu content of the gas).
    Transco states that the firm transportation service to be rendered 
through this new capacity will be performed under its Rate Schedule FT 
and Part 284(G) of the Commission's regulations. Transco states that it 
will

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charge the Project shippers the then-current Zone 4A maximum rate under 
Rate Schedule FT in effect when the Phase I facilities are placed in 
service, plus any applicable surcharges.
    Transco requests that the Commission grant rolled-in rate treatment 
for the costs associated with the Mobile Bay Project as revised by this 
amendment in Transco's first Section 4 rate proceeding to become 
effective after the in-service date of the Project. Transco states that 
a presumption to roll-in the Project costs applies because the rate 
impact on its existing customers under each firm rate schedule is less 
than the five percent threshold set forth in the Commission's Statement 
of Policy for pricing new pipeline construction. Transco also states 
that the facilities constructed as part of the Project will produce 
significant system-wide operational and financial benefits and will be 
operated on an integrated basis with its existing facilities.
    To meet the proposed in-service date of July 1, 1998 for Phase I 
and November 15, 1998 for Phase II of the Project, Transco requests 
that the Commission issue a preliminary determination approving all 
aspects of this application other than environmental matters by October 
1, 1997, with a final determination and all appropriate certificate 
authorizations by December 1, 1997.
    Any person desiring to be heard or to make any protest with 
reference to said application should on or before May 28, 1997, 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 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 with 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 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 Transco to appear or be represented at the 
hearing.
Lois D. Cashell,
Secretary.
[FR Doc. 97-12441 Filed 5-12-97; 8:45 am]
BILLING CODE 6717-01-M