[Federal Register Volume 64, Number 21 (Tuesday, February 2, 1999)]
[Notices]
[Pages 5041-5043]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-2365]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket Nos. CP96-178-008, CP96-809-007, and CP97-238-008]


Maritimes & Northeast Pipeline, L.L.C.; Notice of Amendment

January 27, 1999.
    Take notice that on January 22, 1999, Maritimes & Northeast 
Pipeline, L.L.C. (Maritimes), filed in Docket Nos. CP96-178-008, CP96-
809-007, and CP97-238-008, an application pursuant to Section 7(c) of 
the Natural Gas Act for an amendment to the certificates previously 
issued to Maritimes to construct, install, own, operate, and maintain 
the Maritimes Phase I and Phase II facilities from Dracut, 
Massachusetts to a point at the international border between the United 
Stats and Canada near Woodland, Maine. Maritimes's proposal is more 
fully set forth in the application for amendment which is on file with 
the Commission and open to public inspection.
    Maritimes is a limited liability company, organized and existing 
under the laws of the state of Delaware, Maritimes' members are M&N 
Management Company, an indirect, wholly owned subsidiary of Duke Energy 
Corporation; Westcoast Energy (U.S.) Inc., an indirect, wholly owned 
subsidiary of Westcoast Energy, Inc.; Mobil Midstream Natural Gas 
Investments Inc., an indirect, wholly owned subsidiary of Mobil 
Corporation; and Scotia Power U.S., Ltd., an indirect, wholly 
subsidiary of NS Power Holdings, Inc.
    Maritimes requests that its certificates be amended as they apply 
to Phases I and II service:
    (1) To phase the in-service date of certain of its lateral line 
facilities;
    (2) To defer, subject to further market commitments, certain other 
laterals;
    (3) To eliminate one compressor unit at the Baileyville, Maine 
compressor station;
    (4) To install one compressor unit at Richmond, Maine on a back up 
basis;
    (5) To uprate each of the three compressor units to be installed 
(two at Richmond, one at Baileyville) to 8311

[[Page 5042]]

horsepower (HP) to reflect the manufacturer's current rating;
    (6) To construct, install and operate minor delivery facilities, 
including about 250 feet of 10-inch diameter pipeline in Haverhill, 
Massachusetts;
    (7) To revise its initial rates to reflect changed cost estimates 
and revised billing determinants;
    (8) To revise certain of its initial tariff sheets, including those 
tariff sheets addressing creditworthiness standards;
    (9) To the extent authorization is required, to implement certain 
non-conforming provisions in its executed service and backstop 
agreements that differ from the pro forma service agreements in 
Maritimes' tariff.
    Maritimes states that as markets in Maine, Massachusetts, and 
Canada are changing, there have been changes in the contracts between 
Maritimes and its shippers. Maritimes has included in its amendment its 
new agreements, totaling 360,575 Dth/d, including backstop arrangements 
for 20 years equal to 360,000 Dth/d of firm capacity. Maritimes says 
that it is fully contracted under these executed service and backstop 
agreements. Maritimes notes that there are some provisions in the 
service and backstop agreements reached with the shippers that deviate 
from its tariff and asks that the Commission, to the extent required, 
grant authorization for such deviations.
    Maritimes says that market changes have led to a proposed phasing 
of the construction of Maritimess' laterals. Thus, Maritimes proposes 
to defer construction of one of the originally proposed Phase II 
laterals--the Bucksport lateral--with the in-service date to be within 
two years of the date of the order approving the amendment, subject to 
the receipt of firm service agreements. Also, Maritimes proposes to 
defer other laterals proposed in the original Phase II application, 
subject to obtaining additional market commitments.
    Maritimes proposes to eliminate one compressor unit at Baileyville, 
Maine; to install one of the compressor units at Richmond, Maine on a 
back up basis; and to uprate the three compressor units to be installed 
to 8,311 HP to reflect current manufacturer ratings. Maritimes proposes 
to construct other minor delivery facilities. In particular, Maritimes 
proposes the construction and operation of the Haverhill Spur and the 
Essex Gas Company meter station located near Haverhill. The Haverhill 
Spur will be about 250 feet of 10-inch diameter pipeline located in an 
area currently dedicated to natural gas facility use. Also, Maritimes 
proposes to install and operate a new meter to be wholly located within 
the already approved Dracut, Massachusetts meter station site as a new 
delivery point for Boston Gas Company.
    Maritimes proposes to revise its initial rates to reflect the 
increased cost of its mainline facilities and revised billing 
determinants. Maritimes says that these increased costs are due to the 
receipt of construction contract bids, which reflect cost increases 
related to schedule extensions, environmental agency requirements, 
cathodic protection, material transportation, and wage increases; costs 
associated with reroutes and route refinements; and additional mainline 
pipeline mileage of 3.3 miles. The revised billing determinants reflect 
the firm contractual commitments of 360,575 Dth/d.
    The initial rates for mainline service under Rate Schedule NM365 
are proposed to be $0.715 per Dth (on a 100% load factor basis). This 
is based on a total gas plant of $619.5 million and an annual cost 
allocation to Rate Schedule MN365 of about $94.1 million and a 
modified/levelized depreciation method for the first four years of 
operation. Also, $10.3 million has been allocated to interruptible 
mainline service under Rate Schedule MNIT. Rates for other mainline 
services are derivative of the Rate Schedule MN365 rate.
    Maritimes also proposes incremental rates for three laterals 
(Newington, New Hampshire, Westbrook, Maine, and Haverhill) under Rate 
Schedule MNLFT, the approval of which is pending in Docket No. CP98-
797-000.\1\ A total gas plant of $6.9 million is proposed to be 
allocated incrementally among the above three laterals as more fully 
set forth in Exhibit P of Maritimes' application.
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    \1\ In Docket No. CP98-797-000, Maritimes is proposing another 
lateral near Veazie, Maine with a cost of $5.6 million that is also 
proposed to be incrementally priced under Rate Schedule MNLFT.
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    Maritimes also proposes certain amendments to its tariff. It 
proposes to revise its creditworthiness provisions to reflect 
provisions typical of other project-financed pipelines. Also, in order 
to promote seamless service, Maritimes proposes an agency arrangement 
reflected in its tariff.
    Any person desiring to be heard or making any protest with 
reference to said amendment should on or before February 12, 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 protests 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 not 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 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

[[Page 5043]]

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 Maritimes to appear or be represented at the 
hearing.
Linwood A. Watson, Jr.,
Acting Secretary
[FR Doc. 99-2365 Filed 2-1-99; 8:45 am]
BILLING CODE 6717-01-M