[Federal Register Volume 62, Number 109 (Friday, June 6, 1997)]
[Notices]
[Pages 31091-31093]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-14827]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. CP97-526-000]


Southern Natural Gas Company; Notice of Application

June 2, 1997.
    Take notice that on May 15, 1997, as supplemented on May 23, 1997, 
and May 29, 1997, Southern Natural Gas Company (Southern), Post Office 
Box 2563, Birmingham, Alabama 35202-2563, filed in Docket No. CP97-526-
000 an application, pursuant to section 7(c) of the Natural Gas Act, 
for a certificate of public convenience and necessity for authorization 
to construct, install, modify, and operate certain pipeline loops, 
compressors, and appurtenant facilities to permit increased firm 
transprotation services in Southern's Zone 2 and 3 market areas, and 
for permission to roll in the costs attributable to those facilities, 
all as more fully set forth in the application, which is on file with 
the Commission and open for public inspection.
    Southern states that it has undertaken an intensive effort to serve 
new markets that can be attached economically to its system and to 
develop markets already attached to its system. It is indicated that, 
as part of this effort, and in response to inquiries received by 
Southern concerning the availability of capacity, Southern conducted an 
open season beginning October 1996 to determine whether there was 
sufficient demand for transportation service to support an expansion of 
its system. It is also indicated that, as a result of this open season 
and discussions with interested customers, Southern received requests 
for long-term transportation service to be available beginning in 
November 1998, with other services to commence in November 1999 and 
November 2000. Southern states that it received fifteen requests for 
service totaling 64,911 Mcf per day. Southern lists the following 
requests for service noting the year that the customer requests the 
service to commence:

------------------------------------------------------------------------
                           Customer                             Mcf/day 
------------------------------------------------------------------------
Knoxville Utilities Board (1998).............................     15,000

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Knoxville Utilities Board (2000).............................     10,000
United Cities Gas Company (1998).............................     15,000
Middle Tennessee Natural Gas Utilities District (1998).......      4,000
Louden Utility Board (1998)..................................        500
Louden Utility Board (1999)..................................        500
Louden Utility Board (2000)..................................        500
City of Cookeville Gas Dept. (1998)..........................        500
City of Cookeville Gas Dept. (2000)..........................        500
Nat. Gas Utility Dist. of Hawkins County (1998)..............        300
Nat. Gas Utility Gas Dept. of Hawkins County (1999)..........        300
Nat. Gas Utility Gas Dept. of Hawkins County (2000)..........        300
Thomaston Mills (1998).......................................      3,430
Cullman-Jefferson Counties Gas Dist. (1998)..................      1,000
Cullman-Jefferson Counties Gas Dist. (1999)..................      1,500
Cullman-Jefferson Counties Gas Dist. (2000)..................      1,500
Savannah Foods Industrial, Inc. (1998).......................        500
The Energy Spring Inc. (1998)................................      2,448
ITT Automotive, Inc. (1998)..................................      1,000
Armstrong World Industries, Inc. (1998)......................      1,000
Town of Calera (1998)........................................        250
Georgia-Pacific Corp. (1998).................................      2,700
Comm. of Dalton, Water, Light and Light Sinking Fund (1998)..        683
Comm. of Dalton, Water, Light and Sinking Fund (2000)........      1,000
                                                              ----------
      Total..................................................     64,911
------------------------------------------------------------------------

Southern states that each of the above shippers has executed a service 
agreement under Rate Schedule FT with a primary term of 12 Years.
    To provide the requested service, Southern proposes to construct, 
install, modify and operate pipeline and compression facilities. More 
specifically, Southern proposes to construct (1) approximately 2.86 
miles of new 8-inch pipeline on its existing Cleveland Branch Line 
extending from a point in Catoosa County, Georgia to new point of 
interconnection with East Tennessee Natural Gas Company in Hamilton 
County, Tennessee; (2) approximately 10.2 miles of 16-inch pipeline to 
replace the existing 12-inch pipe on the Macon Branch Loop Line in 
Fulton and Clayton Counties, Georgia; (3) approximately 6.015 miles of 
new 30-inch pipeline in Spalding and Henry Counties, Georgia to be 
known as the Ocmulgee Atlanta Loop Line; (4) approximately 2.77 miles 
of 24-inch 2nd North Main Loop Line in Pickens County, South Carolina; 
(5) approximately 4.6 miles of 30-inch South Main 3rd Loop line in 
Perry County, Alabama; and (6) the Cartersville Gate Regulator Station 
on the 12-inch Chattanooga Line in Floyd County, Georgia. Southern also 
indicates that in relation to (2) above, it will remove the existing 
12-inch pipeline located in the same right-of-way.
    Southern also proposes to rewheel the four Dresser-Rand compressors 
at the York Compressor Station in Sumter County, Alabama and at the 
Auburn Compressor Station in Lee County, Alabama, which would increase 
the rated horsepower at an 80 degree ambient temperature from 6,500 to 
9,160 of each engine. Southern also proposes to add a turbine unit 
rated at 1,600 horsepower at the existing Bell Mill Compressor Station, 
and install a new compressor station in Floyd County, Georgia, 
consisting of one Solar T4700 turbine unit ISO-rated at 4,700 
horsepower, to be known as the Rome Compressor Station. In addition, 
Southern proposes to uprate the maximum allowable operating pressure of 
the Chattanooga Line from 1114 to 1200 psig. Southern also indicates it 
will construct metering facilities.
    Southern estimates a facilities cost of $52,179,005, which would be 
financed initially through the use of short term financing, available 
cash from operations of use of both alternatives and ultimately from 
permanent financing.
    Southern also requests that the Commission issue a predetermination 
that rolled-in rates are appropriate for the proposed facilities. In 
support of that request, Southern states that the proposed facilities 
will be physically and operationally integrated with existing 
facilities that serve Southern's current customers and that the new 
facilities will be used for the benefit of all shippers on Southern's 
system. Southern states that the estimated revenues generated from the 
proposed facilities will exceed the estimated cost of service from the 
facilities in every year after the first year, and even in the first 
year, rolling in of the costs would not increase the rates in any zone 
by more than 0.4 percent.
    Southern claims that shippers will experience both monetary and 
operational benefit as a result of the expansion. Southern submits 
that, with respect to financial benefits, Exhibit N of the application 
demonstrates that, over the 12-year primary terms of the new firm 
agreements associated with the expansion, the related revenues will 
exceed the costs incurred by approximately $18.1 million. Southern also 
submits the expansion will also provide specific operational benefits 
to its shippers. Southern notes that the facilities will be installed 
throughout a three-state area and will be an integral part of 
Southern's system, by providing system enhancement and increasing 
system reliability. Southern states that the additional pipeline loops 
and compression uprates would allow Southern to provide increased 
delivery pressures to its existing customers during off-peak periods. 
It is stated that the compression uprates would permit the stations to 
operate at a level closer to their maximum operating efficiency, thus 
increasing the overall efficiency of Southern's pipeline system. 
Southern also notes that by replacing some of the old compressor 
components with new uprated components, future maintenance costs for 
these compressors should be reduced.
    Any person desiring to be heard or to make any protest with 
reference to said application should on or before June 23, 1997, file 
with the Federal Energy

[[Page 31093]]

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 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 a grant of the certificate and 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 Southern to appear or be represented at the 
hearing.
Lois D. Cashell,
Secretary.
[FR Doc. 97-14827 Filed 6-5-97; 8:45 am]
BILLING CODE 6717-01-M