[Federal Register Volume 64, Number 2 (Tuesday, January 5, 1999)]
[Notices]
[Pages 488-490]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-60]


-----------------------------------------------------------------------

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. CP99-113-000]


Algonquin LNG, Inc.; Notice of Application

December 29, 1998.
    Take notice that on December 14, 1998, Algonquin LNG, Inc. 
(Algonquin LNG), 5400 Westheimer Court, Houston, Texas 77251-1642, 
filed in Docket No. CP99-113-000 an application pursuant to Section 7 
of the Natural Gas Act, and the Commission's Rules and Regulations for 
a certificate of public convenience and necessity and abandonment 
authority in order to modernize its Providence, Rhode Island LNG Plant 
by the replacement and modification of various facilities in order to 
more efficiently provide its certificated services. The details of 
Algonquin LNG's proposal are more fully set forth in its application 
which is on file at the Commission and available for public inspection.
    Specifically, Algonquin LNG seek authority to:
    (1) Replace its existing low pressure vaporization system;
    (2) Abandon the existing vaporization system and other related 
facilities;
    (3) Construct, own and operate a boll-off handling system and 
ancillary facilities;
    (4) Abandon its existing Rate Schedule X-4 service for The 
Providence Gas Company (Providence Gas);
    (5) Enter into an agreement under which Providence Gas would 
provide firm displacement service for Algonquin LNG on behalf of 
Algonquin LNG's other customers;
    (6) Modify Rate Schedule FST-LG to provide for an incremental 
reservation surcharge in order to recover the cost of the redelivery 
service across Providence Gas's system; and,
    (7) Any other authorization which may be deemed necessary for 
implementation of the proposal contained herein.
    To ensure an in-service date by the start of the 1999-2000 winter 
heating season, Algonquin LNG requested a final certificate by May 1, 
1999.
    Algonquin LNG included in its application long-term Rate Schedule 
FST-LG service agreements with Providence Gas, Boston Gas Company 
(Boston Gas) and Consolidated Edison Company of New York (ConEd) as 
follows:

----------------------------------------------------------------------------------------------------------------
                                                                Maximum daily
                                                  Contract       withdrawal
                   Customer                        storage     quantity (Dth/            Contract term
                                               quantity (Dth)        d)
----------------------------------------------------------------------------------------------------------------
Providence Gas...............................         600,000          95,000  10 years.
Boston Gas...................................       1,159,664          35,000  8 years.
ConEd........................................         500,000          20,000  10 years.
                                              --------------------------------
    Totals...................................       2,259,664         150,000  .................................
----------------------------------------------------------------------------------------------------------------

Algonquin LNG states that all of the storage capacity of the Algonquin 
LNG Plant has been fully subscribed by the above customers.
    Algonquin LNG proposes to enter into a single displacement 
agreement with

[[Page 489]]

Providence Gas under which Algonquin LNG will transport customer 
vaporization volumes from the Algonquin LNG Plant to points of 
interconnection between Providence Gas and Algonquin LNG. In this 
manner firm and interruptible open access customers of Algonquin LNG 
will be able to obtain gas on the interstate pipeline grid with a 
single vaporization nomination to Algonquin LNG.
    In order to provide for redelivery of vaporization and boil-off 
volumes to Boston Gas and ConEd, Algonquin LNG is proposing to obtain a 
displacement service from Providence Gas, with a daily contract 
quantity of 55,000 Dth of vaporization and 2,800 Dth of boil-off 
quantities and an annual contract quantity of 1,659,664 Dth/d. 
Providence Gas would charge Algonquin LNG a monthly demand charge of 
$69,153. Providence Gas will also charge an overrun charge of $0.25 per 
Dth for amounts displaced in excess of the annual contract quantities. 
Algonquin LNG in turn proposes to charge firm customers who elect 
displacement a reservation fee surcharge of $0.0417 per Dth per month 
based on their respective in-tank capacities and $0.25 per Dth for 
overruns in excess of the Contract Storage Quantity. Algonquin LNG's 
interruptible displacement customers will pay $0.50 per Dth vaporized 
which is a 100% load factor equivalent of the reservation surcharge.
    The modifications proposed by Algonquin LNG are limited to the 
Algonquin LNG Plant site and involve the replacement of various 
Algonquin LNG Plant components and the addition of certain ancillary 
facilities. Algonquin LNG states that truck receipts into and 
deliveries from the Algonquin LNG Plant would not change.
    Algonquin LNG proposes to add additional equipment and to replace 
existing equipment at the Plant. The new facilities include a 
vaporization system with a slight increase in deliverability, 
replacement of the existing boil off system and certain improvements to 
the control and monitoring facilities. Algonquin LNG states that except 
for the increased capability of the new vaporization system, most of 
the new facilities represent needed updates or normal additions to the 
plant. Algonquin LNG intends to rebuild the existing LNG pumps, but in 
the alternative, it will replace them if it should be determined after 
inspection of the pump internals that replacement is more economical 
than rebuilding. Two of the three new LNG vaporizers proposed will 
replace the capacity of the existing three units.
    Providence Gas has provided and been responsible for boil off 
handling facilities. Under the proposed project, Algonquin LNG will 
assume responsibility for the boil off handling system and will install 
new piping, heat exchangers, compressors and a standby emergency 
generator on the Algonquin LNG Plant site. With the exception of the 
change in responsibility, this is simply a replacement of the existing 
boil off system.
    The majority of the remaining proposed facilities are replacements 
for existing control and monitoring systems that are designed to 
improve and update the control and monitoring capabilities at the 
Algonquin LNG Plant. Algonquin LNG proposes to replace the existing 
vaporizers and portions of the cryogenic piping downstream of the LNG 
pumps and will remove that equipment from the site. No changes to the 
storage tank capacity or facilities supporting trucking activity are 
proposed. To ensure continued reliability Algonquin LNG intends to 
conduct a thorough external inspection of the tank and perform any 
necessary maintenance. Only limited non-jurisdictional facility changes 
will be required by Providence Gas as a result of the proposals 
included herein. Providence Gas will be required to make certain 
modifications to its existing Allen Avenue plant regulator station. In 
addition, Providence Gas plans to retire its boil off compressors and 
certain structures.
    All of these facilities are located on Providence Gas's land 
adjacent to the Algonquin LNG Plant. Algonquin LNG states that its 
existing land lease for the Algonquin LNG Plant site, effective October 
1, 1971, terminates on its own terms by September 30, 2001. A new land 
lease agreement is being negotiated which would become effective with 
the proposed in-service date of November 1, 1999, and would provide for 
a term of twenty years and an option by Algonquin LNG to extend the 
land lease for an additional ten years. The new land lease will require 
Algonquin LNG to provide monthly payments to Providence Gas of $20,000 
through the term of the lease. In connection with the termination and 
renegotiation of the various agreements with Providence Gas, Algonquin 
LNG states it has agreed to pay Providence Gas a one-time payment of 
$2.6 million, in addition to the lease payment and reservation fees 
agreed upon by the parties.
    Algonquin LNG proposes to provide service utilizing the new and 
existing facilities under its existing open-access service Rate 
Schedules FST-LG and IST-LG of its First Revised Volume No. I Tariff. 
Algonquin LNG proposes certain tariff provisions to effectuate the new 
services. Algonquin LNG states that it intends, in any future Algonquin 
LNG rate proceeding, that the cost of the proposed facilities would be 
included in Algonquin LNG's total rate base.
    Algonquin LNG states that the environmental impact of the proposed 
project will be minimal. All of the construction will take place within 
a site that has been dedicated to industrial use for over a century. 
The continuing impacts of the operation of the Algonquin LNG Plant 
would be little affected by the proposed Algonquin LNG Plant 
modifications. Most pumps, compressors and the emergency generator will 
be housed in buildings that will mitigate noise impacts.
    Any person desiring to be heard or making any protest with 
reference to said application should on or before January 19, 1999, 
file with the Federal Energy Regulatory Commission, 888 First Street, 
NE, 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. A person, instead, may submit two copies of such 
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

[[Page 490]]

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 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 
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 Algonquin LNG to appear or be represented at 
the hearing.
Linwood A. Watson, Jr.,
Acting Secretary.
[FR Doc. 99-60 Filed 1-4-99; 8:45 am]
BILLING CODE 6717-01-U