[Federal Register Volume 63, Number 25 (Friday, February 6, 1998)]
[Notices]
[Pages 6163-6164]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-2926]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket No. CP97-315-001]
Independence Pipeline Company; Notice of Petition To Amend
February 2, 1998.
Take notice that on December 19, 1997, Independence Pipeline
Company (Independence) 500 Renaissance Center, Detroit, Michigan 48243,
filed in Docket No. CP97-315-001, pursuant to Section 7 (c) of the
Natural Gas Act, a petition to amend its pending application filed in
Docket No. CP97-315-000 to, among other things, reroute certain
segments of the new pipeline it has proposed to construct and operate
between Defiance, Ohio and Leidy, Pennsylvania, all as more fully set
forth in the application which is on file with the Commission and open
to public inspection.
On March 31, 1997, Independence filed with the Commission in Docket
No. CP97-315-000 requesting authority to construct and operate an
approximately 370-mile, 36-inch diameter pipeline system to transport
gas from Defiance, Ohio to Leidy, Pennsylvania. The proposed pipeline
is designed to provide transportation services on an open-access basis
to shippers seeking to transport gas principally from expansion
projects destined for the Chicago Hub to the Leidy Hub, thereby
facilitating access to gas markets in Ohio, Pennsylvania and throughout
the Eastern United States.
Since the original application was filed, several events have
occurred. One is the addition of a new partner in the project. The
original partners in Independence were ANR Independence Pipeline
Company (ANR Independence) and Transco Independence Pipeline Company
(Transco Independence), subsidiaries of ANR Pipeline Company (ANR) and
Transcontinental Gas Pipe Line Corporation (Transco), respectively. On
September 23, 1997, Seneca Independence Pipeline Company (Seneca
Independence), an affiliate of National Fuel Gas Supply Corporation
(National Fuel) reached agreement with ANR Independence and Transco
Independence to purchase an interest in the Independence partnership.
Each partner, including Seneca Independence, will now hold a 33\1/3\%
interest in the partnership.
By the petition to amend, Independence proposes to modify the
original application to:
(1) Reflect routing changes;
(2) Reflect changes in compression;
(3) Update estimated facility costs for the project;
(4) Add to the tariff an option for negotiated rates; and
(5) Reduce the proposed maximum tariff rates.
Independence states that since the original application was filed,
it has met with landowners, public officials, environmental agencies,
non-government organizations, and others with regard to the pipeline
route. As a result of these discussions, Independence is proposing
route changes in Ohio and Pennsylvania which it believes will better
address existing land use issues and which are environmentally
preferable to the route originally proposed. Independence states that
the proposed reroutes will increase the overall length of the project
from 369.7 to 400.4 miles. The most notable reroute involve the portion
of the pipeline in Stark and Summit Counties, Ohio and the eastern-most
105 miles of the pipeline in Pennsylvania. The proposed Pennsylvania
reroute (the Clarion Reroute) is significant in that the last 105 miles
of the pipeline will follow a completely different right-of-way which
is well north of the original route. The Clarion Reroute will use
existing pipeline corridors for approximately 59 miles.\1\ In addition,
environmental review of the final 65 miles was previously conducted as
part of another project. Independence asserts the Clarion Reroute is
easier to build, has better access roads and will provide better access
to National Fuel's pipeline and storage system.
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\1\ Approximately 59 miles of the Clarion Reroute will involve
use of National Fuel's existing right-of-way. National Fuel will
remove certain of its existing lines within its right-of-way and
Independence will install larger diameter replacement pipeline using
the same trench. National Fuel has filed a related application to
abandon the subject pipeline facilities in Docket No. CP98-200-000.
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Independence has reexamined the configuration of the system in
conjunction with the proposed pipeline reroutes and has concluded that
although the total amount of compression (60,000 Horsepower (HP)) is
sufficient, a three compressor station design optimizes system
capability more than the two proposed in the original application. It
is stated that the
[[Page 6164]]
proposed station at Defiance, Ohio will remain unchanged (two 15,000 HP
units). However, Independence now proposes two downstream compressor
stations, each of which would have a 15,000 HP unit. One station would
be located in Wayne County, Ohio (the Canaan Station) and the other
would be located in Clarion County, Pennsylvania (the Porter Station).
Independence now proposes 3 meter stations. Independence had
originally proposed stations at the western and eastern termini of the
system, one at Defiance, Ohio and one at Leidy, Pennsylvania.
Independence now proposes to add a meter station in Elk County,
Pennsylvania at an interconnection with National Fuel. Independence
further proposes 5 taps, 4 in Ohio and 1 in Pennsylvania, all at
unspecified locations. The proposed taps are designed to permit
possible future interconnections with East Ohio Gas Company, Columbia
Gas Transmission Company, and National Fuel--interconnections now under
discussion.
Independence states that it is revising the estimated facility
costs of the project from $629.6 million to $677.9 million to take into
account costs attributable to the proposed route changes, the addition
of a new meter station, changes to compression facilities, and a
general update in project costs.
Independence states that the redesigned compression, along with the
increases in pipeline length and other minor factors has changed
maximum capacity from 838,500 Mcf per day (Mcfd) to 916,300 Mcfd
(summer design) and from 943,300 Mcfd to 1,001,100 Mcfd (winter
design).
In order to best meet the needs of the market, Independence now
proposes to offer the option of negotiated rates. Therefore,
Independence requests authority for tariff language to enable
Independence to negotiate rates with its shippers, consistent with the
Commission's policy statement on negotiated rates.
Independence further proposes to reduce the maximum tariff rates
for service on the proposed pipeline. The change reflects the revised
project capital costs, a change in the depreciable life of the plant
from 25 to 40 years, and a reduced long-term interest rate assumption
(from 8.25% to 7.50%).
Any person desiring to participate in the hearing process or to
make any protest with reference to said petition to amend should, on or
before February 23, 1998, file with the Federal Energy Regulatory
Commission, 888 First St., 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 385.214 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. The Commission's rules
require that protestors provide copies of their protests to the party
or parties directly involved. 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.
A person obtaining intervenor status will be placed on the service
list maintained by the Secretary of the Commission and will receive
copies of all documents filed by the applicant and by every one of the
intervenors. An intervenor can file for rehearing of any Commission
order and can petition for court review of any such order. However, an
intervenor must submit copies of comments or any other filing it makes
with the Commission to every other intervenor in the proceeding, as
well as an original and 14 copies with the Commission.
A person does not have to intervene, however, in order to have
comments considered. A person, instead, may submit two copies of
comments to the Secretary of the Commission. Commenters will be placed
on the Commission's environmental mailing list, will receive copies of
environmental documents and will be able to participate in meetings
associated with the Commission's environmental review process.
Commenters will not be required to serve copies of filed documents on
all other parties. However, commenters will not receive copies of all
documents filed by other parties or issued by the Commission and will
not have the right to seek rehearing or appeal the Commission's final
order to a federal court.
The Commission will consider all comments and concerns equally,
whether filed by commenters or those requesting intervenor status.
David P. Boergers,
Acting Secretary.
[FR Doc. 98-2926 Filed 2-5-98; 8:45 am]
BILLING CODE 6717-01-M