[Federal Register Volume 62, Number 188 (Monday, September 29, 1997)]
[Notices]
[Pages 50916-50917]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-25718]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. CP97-761-000]


Venice Gathering System, L.L.C., Notice of Application

September 23, 1997.
    Take notice that on September 18, 1997, Venice Gathering System, 
L.L.C. (VGS), 1000 Louisiana, Suite 5800, Houston, Texas 77002-5050, 
filed an application with the Commission in Docket No. CP97-761-000 
pursuant to Section 7(b) of the Natural Gas Act (NGA) for permission 
and approval to abandon a transportation service currently performed 
for Samedan Oil Corporation (Samedan), all as more fully set forth in 
the application which is open to public inspection.
    VGS states that it currently transports natural gas on an 
interruptible basis for Samedan under the month-to-month evergreen 
provisions of an October 1, 1991, gathering agreement while VGS' 
request in Docket Nos. CP97-533-000, et al., for a Part 284 blanket 
certificate is pending before the Commission.\1\

[[Page 50917]]

VGS notified Samedan via a letter dated June 27, 1997, that it would 
terminate its transportation service for Samedan as of October 1, 1997. 
Samedan then filed with the Commission, as a complaint against VGS, an 
emergency request on September 12, 1997, for an order prohibiting 
unlawful abandonment and motion for shortened time to answer.\2\
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    \1\ The Commission declared VGS to be a jurisdictional entity 
subject to the Natural Gas Act in the order issued April 17, 1997, 
in Docket No. CP95-202-000, 79 FERC para. 61,037 (1997).
    \2\ The subject application was included, in the alternative, in 
VGS' answer to Samedan's emergency request.
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    VGS states that Samedan's gas reaches VGS' jurisdictional Venice 
system, offshore Louisiana, via a non-jurisdictional feeder lateral \3\ 
between Samedan's South Timbalier Block 163 production platform and 
Chevron U.S.A. Inc.'s (Chevron) South Timbalier Block 141 platform. VGS 
states that it believes its interim service obligation to Samedan 
extends only to transportation service provided via the now 
jurisdictional Venice system and that VGS would continue to transport 
said gas for Samedan subject to capacity availability on the Venice 
system. VGS further states that following expiration of the gathering 
agreement's primary term, and in response to VESCO's open-season 
solicitation June 16-20, 1997, Samedan Chose not to submit a qualifying 
bid, instead submitting a bid for a limited-term commitment at a rate 
that was approximately one-half of VGS's cost-based rate and about one-
half of the rate Samedan paid under the existing contract. VGS also 
states that while other shippers were willing to make long-term 
commitments at compensatory rates, Samedan would make only a limited 
commitment geared to securing cheap service until its alternative 
arrangements could be put into service.
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    \3\ The lateral is owned by Venice Energy Services Company 
(VESCO), an affiliate of VGS.
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    Accordingly, to the extent necessary, VGS seeks to abandon the 
service provided under the gathering agreement. The subject service is 
a non-firm service that provides no guarantee of the availability or 
use of VGS' capacity. Further, VGS believes that to ignore these market 
signals and to require service to continue under manifestly non-
competitive terms and conditions would fly in the face of the 
Commission's policies promoting allocative and productive efficiencies 
and the rational allocation of capacity.
    No facilities are proposed to be abandoned.
    Any person desiring to be heard or to make any protest with 
reference to said application should on or before September 30, 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 NGA (18 CFR 
15710). 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 within 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 NGA 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 VGS to appear or be represented at the 
hearing.
Lois D. Cashell,
Secretary.
[FR Doc. 97-25718 Filed 9-26-97; 8:45 am]
BILLING CODE 6717-01-M