[Federal Register Volume 63, Number 212 (Tuesday, November 3, 1998)]
[Notices]
[Pages 59295-59296]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-29349]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. CP99-25-000]


Petal Gas Storage Company; Notice of Application

October 28, 1998.
    Take notice that on October 20, 1998, Petal Gas Storage Company 
(Petal), 229 Milam Street, Shreveport, Louisiana, 71101, filed in 
Docket No. CP99-25-000 an application pursuant to Section 7 of the 
Natural Gas Act for authorization to construct and operate a second 
underground, salt dome cavern in Mississippi for the storage of natural 
gas and to construct and operate related facilities necessary to 
provide firm and interruptible gas storage service to others, on a 
self-implementing basis with pre-granted abandonment authorization and 
at market based rates.
    It is stated that Petal, a wholly-owned subsidiary of Crystal Oil 
Company, was authorized on August 4, 1993, in Docket No. CP93-69-000 to 
construct and operate facilities related to a first storage cavern in 
Forrest County, Mississippi. Petal states that it is proposing to 
construct a second storage cavern. Petal also states that the second 
cavern represents the initial phase of a long-term planned expansion of 
Petal's services. It is stated that Phase I, the focus of the subject 
filing, is limited in scope, in that, Petal requests authorization to 
drill one well, leach a salt storage cavern with a storage capacity of 
5.2 Bcf and install 825 feet of flow lines. Petal states that it does 
not intend to use the power of eminent domain. Petal further states all 
construction activity, except for 412 feet of flow lines on an easement 
to be acquired by Petal from Dynegy Midstream Services Limited 
Partnership, will take place on a 10.89 acre tract that was subject to 
environmental review in Docket No. CP93-69-000 and that Petal owns in 
fee.
    Petal states that Phase II of the expansion project is still in the 
planning process; however, it is anticipated that Phase II will involve 
the construction of additional pipeline facilities in order to 
facilitate bi-directional interconnects with Transcontinental Gas Pipe 
Line Corporation, Southern Natural Gas Company, Destin Pipeline 
Company, L.L.C., the Koch Gateway Pipeline Company (Koch Gateway) high 
pressure system, and Florida Gas Transmission Corporation, which, in 
tandem with Petal's current interconnections with Tennessee Gas 
Pipeline Company and the Koch Gateway low pressure system, will provide 
added flexibility and enable Petal to access new markets. Petal states 
that if it does not pursue the Phase II project in conjunction with the 
development of the second storage cavern, it will operate both the 
first and second storage caverns as a single storage facility for the 
benefit of both existing and new customers.
    Petal states that it has entered into a precedent agreement for 
firm storage service which covers at least 31 percent of the storage 
capacity available from the second cavern. In addition, Petal states 
that all available capacity in the first cavern is fully utilized. 
Further, Petal states that the existing contract commitments for 
service from the first storage cavern and the precedent agreement cover 
62 percent of the storage capacity from the first and second caverns. 
Petal states that since it plans to operate the two caverns as a single 
storage facility, customers will have access to capacity in both 
storage caverns up to the total quantity reflected in their contracts.
    It is stated that upon completion of the second cavern, the two 
storage caverns will be capable of a combined average daily injection 
rate of 160,000 Mcf per day, allowing customers to fill the working gas 
capacity in as little as 40 days, and an average combined daily 
withdrawal rate of 640,000 Mcf per day, allowing customers to 
completely withdraw gas in 10 days.
    Petal proposes to offer its storage services at market-based rates. 
No cost data or revenue projections were submitted with this proceeding 
because Petal is requesting a waiver of those Commission Regulations 
requiring said submission.
    Any person desiring to participate in the hearing process or to 
make any protest with reference to said application should on or before 
November 9, 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 
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 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.

[[Page 59296]]

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 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 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 Petal to appear or be represented at the 
hearing.
Linwood A. Watson, Jr.,
Acting Secretary.
[FR Doc. 98-29349 Filed 11-2-98; 8:45 am]
BILLING CODE 6717-01-M