[Federal Register Volume 63, Number 211 (Monday, November 2, 1998)]
[Notices]
[Pages 58715-58716]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-29230]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. CP99-21-000]


Northern Border Pipeline Company; Notice of Application

October 27, 1998.
    Take notice that on October 16, 1998, Northern Border Pipeline 
Company (Northern Border), 1111 South 103rd Street, Omaha, Nebraska 
68124-1000, filed in Docket No. CP99-21-000 an application pursuant to 
Sections 7(b) and 7(c) of the Natural Gas Act and Part 157 of the 
Commission's regulations for authorization to abandon and remove 
compression facilities and for a certificate of public convenience and 
necessity to construct and operate pipeline and compression facilities, 
all as more fully set forth in the amendment which is on file with the 
Commission and open to public inspection.
    Specifically, Northern Border seeks to: (1) Abandon and remove the 
existing 20,000 horsepower (HP) gas turbines at Compressor Station Nos. 
2 and 4; (2) install and operate 35,000 gas turbines at Compressor 
Station Nos. 2 and 4; (3) replace the compressor wheel and uprate the 
6,500 HP electric drive compressor at Compressor Station No. 14 to a 
15,000 HP electric drive compressor; (4) install and operate a 9,500 HP 
electric drive compressor at Compressor Station Site No. 16; (5) 
replace the compressor wheel and internals at Compressor Station No. 
17; (6) install and operate a 5,000 HP electric drive compressor at 
Compressor Station Site No. 18; (7) construct and operate approximately 
34.4 miles of 36-inch pipeline from Manhattan, Illinois to North 
Hayden, Indiana; (8) construct and operate a new meter station; and (9) 
other appurtenant facilities. Northern Border states that the estimated 
cost of the proposed facilities is $189.6 million. The proposed in-
service date of the facilities is November 1, 2000.
    Northern Border proposes to maintain its cost of service ratemaking 
methodology and roll-in to Rate Schedule T-1 (Northern Border's Part 
284 firm transportation rate schedule) the cost of the new facilities 
with its existing system costs. Northern Border maintains that the 
aggregation of the proposed costs with existing facility costs will 
result in an increase in the unit cost under Rate Schedule T-1 that is 
less than the 5 percent presumption in the Commission's Pricing Policy 
for New and Existing Facilities Constructed by Interstate Natural Gas 
Pipelines (68 FERC para. 61,140 (1994)). Northern Border also asserts 
that its proposal will offer system-wide benefits to existing and 
prospective shippers.
    Northern Border also requests a one-time waiver of Subsection 4.83 
of Rate Schedule T-1 in Northern Border's FERC Gas Tariff, First 
Revised Volume No. 1, which details the calculation of an average 
monthly rate base. Instead of calculating the average monthly rate base 
using the beginning and end-of-month balances as is currently in the 
tariff, Northern Border seeks to use a daily weighted average balance 
for the in-service month of the proposed facilities.
    Northern Border states that it intends to sequentially retrofit the 
units at Compressor Station Nos. 2 and 4 in order to minimize the 
impact on existing firm shippers. To minimize this impact, Northern 
Border intends to retrofit one of the units during the winter of 1999-
2000 and then place the compressor station back into service at its 
full rated horsepower during construction of the second unit. After 
retrofitting the second unit, Northern Border intends to place it in 
service. Northern Border states that it will record as a regulatory 
asset the cost of service effect of the new compression facilities 
offset by the abandonments for the period such facilities are 
operational prior to the in-service date of the project. Northern 
Border specifically requests approval to operate Compressor Station 
Nos. 2 and 4 up to full capability once they are placed into service in 
order to provide an opportunity to increase interruptible throughput 
above the level which would have occurred absent the proposed 
retrofitting. Any increase in interruptible revenue attributable to 
such operation would be separately identified and credited to the 
regulatory asset.
    Northern Border held an open season during November and December of 
1997 and received bids for firm service for all of the project's design 
capacity. As part of the open season, Northern Border canvassed its 
existing customers for turnback capacity. One shipper, Numac Energy 
Inc., will permanently release 9,910 Mcf per day of firm capacity 
between Ventura, Iowa and Harper, Iowa. According to Northern Border, 
binding precedent agreements have been executed with seven shippers for 
the transport of 556,300 Mcf per day from several receipt points on 
Northern Border's system for delivery to North Hayden, Indiana.\1\
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    \1\ There is one delivery of 8,000 Mcf per day that is proposed 
to be made at Ventura, Iowa.

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[[Page 58716]]

    Any person desiring to be heard or to make any protest with 
reference to said application should on or before November 17, 1998, 
file with the Federal Energy Regulatory Commission, 888 First Street, 
NE., Washington, DC 20426, a motion to intervene or a protest in 
accordance with the requirements of the Commission's Rules of Practice 
and Procedure (18 CFR 385.211 and 385.214) 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 in any proceeding herein 
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 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.
    Take further notice that, pursuant to the authority contained in 
and subject to the jurisdiction conferred upon the 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 permission and 
approval for the proposed abandonments and a grant of the certificate 
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 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 Northern Border to appear or to be 
represented at the hearing.
Linwood A. Watson, Jr.,
Acting Secretary.
[FR Doc. 98-29230 Filed 10-30-98; 8:45 am]
BILLING CODE 6717-01-M