[Federal Register Volume 63, Number 169 (Tuesday, September 1, 1998)]
[Notices]
[Pages 46428-46429]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-23412]



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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket Nos. CP98-529-000; CP98-603-000; CP98-690-000, and CP98-738-
000]


Pacific Interstate Transmission Company, Northwest Alaskan 
Pipeline Company, PG&E Gas Transmission (Northwest Corporation), 
Transwestern Pipeline Company, Pacific Interstate Transmission Company, 
Pan-Alberta Gas (U.S.) Inc., and Northwest Pipeline Corporation; Notice 
of Applications and Notice of Petition for Declaratory Order and 
Request for Waivers

August 26, 1998.
    Take notice that on May 8, 1998, Pacific Interstate Transmission 
Company (PITCO), 633 West Fifth Street, Suite 5300, Los Angeles, 
California 90071, filed an application in Docket No. CP98-529-000 
pursuant to Section 7(b) of the Natural Gas Act (NGA), Section 157.18 
of the Commission's Regulations, and Section 9 of the Alaskan Natural 
Gas Transportation Act (ANGTA).
    Take notice that on June 9, 1998, Northwest Alaskan Pipeline 
Company (Northwest Alaskan), One Williams Center, Tulsa, Oklahoma 
74172, filed an application pursuant to Section 7(b) of the NGA, 
Section 157.18 of the Commission's Regulations, and Section 9 of the 
ANGTA.
    Take notice that on July 24, 1998, PG&E Gas Transmission, Northwest 
Corporation (PGT), Transwestern Pipeline Company (Transwestern), PITCO, 
and Pan-Alberta Gas (U.S.) Inc. (Pan-Alberta) (together as Joint 
Petitioners), filed a petition pursuant to Section 385.207(a)(2) of the 
Commission's Regulations, requesting a Declaratory Order and waiver of 
certain tariff provisions to complement the requests by PITCO in Docket 
No. PC98-529-000.
    Take notice that on August 21, 1998, Northwest Pipeline Corporation 
(Northwest Pipeline), 295 Chipeta Way, Salt Lake City, Utah, 84158, 
filed an application in Docket No. CP98-738-000 pursuant to Section 
7(c) of the NGA, Sections 157.6 and 157.7 of the Commission's 
Regulations, and Section 9 of the ANGTA.
    The above filings are not formally consolidated, but are directly 
interrelated, and it is now appropriate for the Commission to receive 
public comments on these related requests. The details of these 
requests are more fully set forth in the applications and the petition 
which are on file with the Commission and open to public inspection.
    PITCO is a natural gas company under the NGA pursuant to 
certificates first granted by the Commission in 1980 authorizing 
PITCO's sale of up to 300 MMCF/D of natural gas to Southern California 
Gas Company (SoCal Gas), PITCO's corporate affiliate. PITCO's initial 
certificate was issued as an integral part of the Commission's 
approvals of the ``pre-build'' of the Western Leg of the Alaska Natural 
Gas Transportation System (ANGTS) under ANGTA.
    Pursuant to Western Leg pre-build certificates, PITCO purchases 
Canadian natural gas imported by Northwest Alaskan. Northwest Alaskan 
purchases the gas from Pan-Alberta Gas, Ltd. at the U.S.-Canada border 
near Kingsgate, British Columbia. PITCO says that the current authority 
to export 240 MMCF/D of gas granted to Pan-Alberta Gas Ltd. expires on 
October 31, 2003. In the United States, PITCO's gas is transported from 
the U.S.-Canada border to Stanfield, Oregon, by PGT where the gas is 
delivered to Northwest Pipeline. Northwest Pipeline then redelivers the 
gas to El Paso Natural Gas Company (El Paso) and Transwestern at their 
interconnections near Ignacio, Colorado.
    SoCal Gas purchases the gas from PITCO at either Ignacio, Colorado 
or Blanco, New Mexico, under PITCO's cost-of-service tariff which 
aggregates gas supply, pipeline facility, and transportation costs. 
SoCal gas moves the gas through the El Paso and Transwestern San Juan 
Basin facilities and mainline transmission facilities for receipt into 
its intrastate system at the Arizona-California border.
    Now, PITCO requests authority for the following in order for SoCal 
Gas to restructure its gas supply and transportation arrangements under 
a ``global settlement'' with its customers:
    1. Abandonment of its sales to SoCal Gas under its Rate Schedule 
CQS-1 and Rate Schedule S-1; and
    2. Abandonment by sale of its 30% undivided interest in certain 
jurisdictional facilities which are part of the pipeline system of 
Northwest Pipeline.\1\
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    \1\ As described herein, Northwest Pipeline has filed an 
application under Section 7(c) to acquire PITCO's equity interest in 
these facilities.
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    As part of the proposed abandonments and the broader restructuring, 
PITCO also wants to assign its pipeline capacity rights on the PGT and 
Northwest Pipeline systems to Pan-Alberta. Likewise, SoCal Gas also 
intends to permanently transfer by assignment to Pan-Alberta some of 
its firm capacity on the Transwestern system. PITCO also intends to 
direct bill SoCal Gas the costs of revising and terminating gas sales 
and purchase agreements and transferring of capacity, including a 
payment of $31 million to Pan-Alberta Gas Ltd. PITCO states that its 
restructuring proposal incorporates a new gas sales agreement between 
SoCal Gas and Pan-Alberta. PITCO says that the parties intend to 
execute a Closing Agreement which will control all of the details and 
timing of the broader restructuring transaction/arrangements.
    PITCO requests expeditious consideration of its application by or 
before October 1, 1998, as the conditions and economic considerations 
of the proposed restructuring are based on implementation during, but 
in no event beyond, the end of 1998. PITCO states that the requested 
abandonment authority and other authorizations are in the present and 
future public convenience and necessity. As a result of the abandonment 
and other authorizations requested, PITCO will no longer be a natural 
gas company providing jurisdictional service.
    Northwest Alaskan seeks to abandon the sale to PITCO of a daily 
average of 240,000 Mcf of Canadian natural gas transported through the 
pre-build Western Leg of the ANGTS.\2\ Northwest Alaskan states that 
the proposed abandonment is part of the broader restructuring 
transaction/arrangements among itself, Pan-Alberta, PITCO and SoCal 
Gas.\3\ Northwest Alaskan says that the abandonment approval should 
become effective on the first day of the first month following the day 
on which the satisfaction of the conditions precedent to the Closing 
Agreement.
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    \2\ On June 9, 1998, Northwest Alaskan filed in Docket No. RP98-
247-000 certain related tariff sheets of its FERC Gas Tariff to 
reflect the proposed abandonment and termination of Rate Schedule X-
4 (sale to PITCO) and tariff revisions to Rate Schedules X-1, X-2 
and X-3 (sales for pre-build Eastern Leg of the ANGTS). This filing 
was noticed separately on June 12, 1998, under Section 154.210 of 
the Commission's Regulations.
    \3\ On June 9, 1998, Northwest Alaskan filed an application at 
the Department of Energy requesting a transfer of its import 
authorization for the pre-build Western Leg supplies to Pan-Alberta.
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    The Joint Petitioners request waiver of the following tariff 
provisions:
    1. PGT--Section 28 (Capacity Release) of PGT's Transportation 
General Terms and Conditions, Sheet Nos. 89 through 115.
    2. Transwestern--Section 30 (Capacity Release Program) of 
Transwestern's General Terms and Conditions, Sheet Nos. 95 through 95L.
    The Joint Petitioners say that they recognize that capacity release 
is the strongly preferred method by which

[[Page 46429]]

pipeline capacity is transferred. However, to accommodate the broader 
restructuring transaction/arrangements for the pre-build Western Leg of 
ANGTS, the Joint Petitioners request waiver of the respective capacity 
release tariff provisions of PGT and Transwestern to the extent 
necessary to accommodate PITCO's requested assignment of capacity. Pan-
Alberta will, however, be subject to all other terms and conditions 
contained within PGT's and Transwestern's tariffs (including but not 
limited to creditworthiness provisions). The Joint Petitioners say that 
the requested waivers are needed because PITCO's transfer of capacity 
to Pan-Alberta on the three pipelines includes, in part, a single 
payment by PITCO to Pan-Alberta.\4\
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    \4\ A separate petition for waiver related to the broader 
transaction was filed by Northwest Pipeline in Docket No. RP98-370-
000 on August 3, 1998. This filing was noticed separately on August 
7, 1998, under Section 154.210 of the Commission's Regulations.
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    They say that in order for the broader restructuring proposal to be 
implemented as desired, Pan-Alberta must have access to, or control of, 
firm capacity from the Canadian border to Blanco, New Mexico. They also 
say that loss of any one segment, if it is posted under the standard 
capacity release provisions, will cause the overall package to fail. 
They say that neither current Commission rules nor the tariffs of PGT 
or Transwestern specifically allow a releasing shipper to condition an 
award of capacity to an acquiring shipper based on that same acquiring 
shipper also obtaining complementary capacity on upstream and 
downstream systems from the same releasing shipper.
    Northwest Pipeline seeks certificate authority to acquire PITCO's 
30% undivided interest in certain jurisdictional facilities which are 
part of the pipeline system of Northwest Pipeline. The acquisition 
would be pursuant to the terms of the August 19, 1998, Sales Agreement 
between Northwest Pipeline and PITCO. These facilities were constructed 
and are operated by Northwest Pipeline pursuant to a certificate issued 
in Docket No. CP79-56. These facilities include abut 350 miles of 30-
inch and 24-inch pipeline loops in Oregon and Idaho; 3,500 horsepower 
of additional compression at Northwest Pipeline's Baker and Caldwell 
Compressor Stations; and appurtenant facility modifications at three 
other compressor stations and the Stanfield Meter Station.
    Pursuant to the Sales Agreement, Northwest Pipeline will pay PITCO 
$3,028 for PITCO's interest in the pre-build facilities. Northwest 
Pipeline says that PITCO stipulates that the stated purchase price 
represents its current net book value for its pre-build assets. The 
Sales Agreement also provides that PITCO will pay Northwest Pipeline 
$2,276,000 as a one-time reimbursement in lieu of the future O&M 
payments which will be foregone due to the resulting early termination 
of the 1978 Investment and Operating Agreement for these facilities.
    Northwest Pipeline also requests the Commission to grant any 
waivers of its accounting regulations necessary to allow Northwest 
Pipeline to record on its books only the proposed payment to PITCO, and 
not the original cost and associated accumulated depreciation for the 
thirty percent interest being acquired from PITCO.
    Northwest Pipeline says that its acquisition of PITCO's interest in 
the pre-build facilities is proposed to occur concurrently with 
implementation of PITCO's restructuring proposals which are at issue in 
Docket No. CP98-529-000. Accordingly, Northwest Pipeline says that its 
acquisition is contingent upon acceptable resolution in both that 
proceeding, and in its related Petition for Tariff Waiver proceeding in 
Docket No. RP98-370, of all issues associated with PITCO's proposed 
assignment to Pan-Alberta of its existing firm transportation agreement 
with Northwest Pipeline.
    Any person desiring to be heard or making any protest with 
reference to said applications and petition should on or before 
September 16, 1998, file with the Federal Energy Regulatory Commission, 
888 First Street, 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 person 
to whom the protests are directed. 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 issued by the Commission, filed by the 
applicant, or filed by all other 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 serve copies of comments 
or any other filing it makes with the Commission to every other 
intervenor in the proceeding, as well as filing an original and 14 
copies with the Commission.
    A person does not have to intervene, however, in order to have 
comments considered. 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 the 
commenters or those requesting intervenor status.
    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 these 
applications 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 any parties to appear or be represented at 
the hearing.
Linwood A. Watson, Jr.,
Acting Secretary.
[FR Doc. 98-23412 Filed 8-31-98; 8:45 am]
BILLING CODE 6717-01-M