[Federal Register Volume 64, Number 45 (Tuesday, March 9, 1999)]
[Notices]
[Pages 11463-11465]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-5704]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. CP99-222-000]


Shenandoah Gas Company; Notice of Application for Abandonment

March 3, 1999.
    Take notice that on February 22, 1999, Shenandoah Gas Company 
(Shenandoah), P.O. Box 2400, Winchester, Virginia 22604 filed an 
application pursuant to Section 7(b) of the Natural Gas Act (NGA) and 
Part 157 of the Commission's Regulations requesting permission to 
abandon its certificated facilities in West Virginia by sale to 
Mountaineer Gas Company (Mountaineer), all as more fully set forth in 
the application which is on file with the Commission and open to public 
inspection. This filing may be viewed on the web at http://
www.ferc.fed.us/online/rims.htm (call 202-208-2222 for assistance).
    Shenandoah states that it is engaged in the distribution of natural 
gas for residential, commercial, and industrial use in portions of 
Virginia and West Virginia. Shenandoah's service area in Virginia 
includes Clarke, Frederick, Shenandoah, and Warren Counties, the City 
of Winchester and the Towns of Berryville, Middletown, New Market, 
Stephens City, Strasburg, and Woodstock. Shenandoah's West Virginia 
service area includes Berkeley County, a portion of Jefferson County 
abutting Berkeley County and the City of Martinsburg. It is stated that 
the rates and terms and conditions of service Shenandoah provides to 
customers in its Virginia service area are regulated by the Virginia 
State Corporation Commission (Virginia SCC). The West Virginia Public 
Service Commission (West Virginia PSC) regulates the rates and terms 
and conditions of service

[[Page 11464]]

Shenandoah provides to customers in its West Virginia service area.
    Shenandoah states that it receives natural gas in the northern 
portion of its system through two interconnections with Columbia Gas 
Transmission Corporation (Columbia) at Columbia's Nineveh and Cedar 
Creek Gate Stations in Warren County, Virginia. From the Cedar Creek 
Gate Station, Shenandoah states that it transports gas through its 
original 6-inch transmission pipeline that extends northeast to the 
City of Martinsburg, West Virginia.\1\ Shenandoah states that under 
normal operating conditions, gas received from Columbia at the Cedar 
Creek Gate Station is used to serve markets in communities adjacent to 
the pipeline in Virginia and in the City of Winchester, Virginia. From 
the Nineveh Gate Station, located approximately 6.5 miles east of the 
Cedar Creek Gate Station, Shenandoah states that it transports gas 
through its 12-inch transmission pipeline which extends north and 
converges with the original 6-inch transmission pipeline at the 
Clearbrook Regulator Station in Frederick County, Virginia.\2\ At the 
Clearbrook Regulator Station, under normal operating conditions, gas 
from the 12-inch transmission pipeline enters into the original 6-inch 
transmission pipeline and flows south to reinforce deliveries to 
Shenandoah's markets in Virginia and north to serve Shenandoah's 
markets in West Virginia. Shenandoah states that, if necessary, gas 
received from Columbia at the Cedar Creek Gate Station can flow north 
into West Virginia.
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    \1\ Shenandoah states that it will retain the portion of this 
pipeline that is in Virginia.
    \2\ Shenandoah states that this pipeline is located entirely in 
Virginia and will be retained by Shenandoah.
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    Shenandoah operates various facilities under Section 7(c) of the 
NGA and also received a service area determination under Section 7(f) 
of the NGA, 16 FERC para. 61,087 (1981). It is stated that this service 
area includes Clarke, Frederick, Shenandoah, and Warren Counties 
(excluding certain areas in Shenandoah County) and the City of 
Winchester and other communities in Virginia. In West Virginia, the 
service area includes Berkeley County, a portion of Jefferson County 
abutting Berkeley County and the City of Martinsburg. Shenandoah also 
received a blanket transportation certificate under Part 284 of the 
Commission's regulations to conduct activities to the same extent as 
intrastate pipelines under Section 311 of the Natural Gas Policy Act of 
1978, 44 FERC para. 61,108 (1988). Shenandoah states that it will 
provide firm interstate transportation service on behalf of Mountaineer 
under its blanket certificate.
    Pursuant to a November 22, 1998 Asset Purchase and Sale Agreement 
(Agreement), Shenandoah will sell to Mountaineer all of its natural gas 
transmission and distribution facilities located in West Virginia, 
including facilities that were previously certificated under NGA 
section 7(c). Shenandoah states that Mountaineer is a local 
distribution company providing public utility gas service in West 
Virginia, subject to regulation by the West Virginia PSC. Shenandoah 
further states that Mountaineer will dedicate the transferred 
facilities to providing retail service to Shenandoah's former West 
Virginia customers.
    Currently, the only source of gas supply to serve customers in 
Shenandoah's service territory in West Virginia is through Shenandoah's 
interconnections with Columbia in Warren County, Virginia. Shenandoah 
states that under the terms of the Agreement it will provide a firm 
interstate transportation service on behalf of Mountaineer, receiving 
gas in Virginia and redelivering up to 16,000 dekatherms per day to 
Mountaineer at the West Virginia border. It is stated that the 
Agreement also provides for Shenandoah to assign to Mountaineer, 
subject to consent of Columbia and Columbia Gulf Transmission Company, 
upstream Rate Schedule FTS, FSS, and SST entitlements used to serve 
Shenandoah's West Virginia customers.
    It is stated that, under the terms applicable to the Part 284 
transportation service Shenandoah intends to provide, Mountaineer may 
arrange for the transportation of its own gas supplies, act as agent 
for any of its customers desiring such service, or release capacity to 
existing transportation customers in West Virginia, as requested by 
such customers, or any others on an as available basis. Shenandoah 
states that it will provide the firm transportation service for an 
initial term of five years. It further states that the service may be 
canceled thereafter by either party after two years notice given after 
the expiration of the initial term.
    After abandonment of its certificated facilities in West Virginia, 
Shenandoah will retain transmission facilities located in Virginia 
which will be dedicated, in part, to providing firm interstate 
transmission service to Mountaineer and its customers, as requested by 
such customers.
    After the sale of Shenandoah's West Virginia utility assets to 
Mountaineer, Shenandoah's service area will be reduced, as it will no 
longer provide retail service in West Virginia. However, Shenandoah 
states that it will continue to provide local distribution service to 
its customers in Virginia. Shenandoah will also provide a firm 
interstate transportation service to Mountaineer, subject to the 
Commission's regulation, delivering gas supplies on behalf of 
Mountaineer at the West Virginia border. Shenandoah states that any 
further expansion or modification of its facilities related to 
providing firm interstate transmission service for deliveries into West 
Virginia would be subject to NGA section 7 requirements. Shenandoah 
states that if the Commission determines it to be appropriate, 
Shenandoah will retain its current service area determination under 
Section 7(f) of the NGA.
    Any person desiring to be heard or to make any protest with 
reference to said application should on or before March 24, 1999, 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 385.214 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. 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.
    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 with further notice before the Commission or its designee on this 
application if no motion to intervene is filed within the time required 
herein, or if the Commission on its own review of the matter finds that 
permission and approval for the proposed abandonment 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 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

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unnecessary for Shenandoah to appear or be represented at the hearing.
David P. Boergers,
Secretary.
[FR Doc. 99-5704 Filed 3-8-99; 8:45 am]
BILLING CODE 6717-01-M