[Federal Register Volume 64, Number 215 (Monday, November 8, 1999)]
[Notices]
[Pages 60800-60802]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-29101]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket Nos. CP00-14-000, CP00-15-000, and CP00-16-000]


Buccaneer Gas Pipeline Company, L.L.C.; Notice of Applications 
for Certificates

November 2, 1999.
    Take notice that on October 28, 1999, Buccaneer Gas Pipeline 
Company, L.L.C. (Buccaneer or Applicant), Post Office Box 1396, 
Houston, Texas 77251, filed an application in Docket No. CP00-14-000 
pursuant to and in accordance with Section 7(c) of the Natural Gas Act 
(NGA) and the optional certificate procedures of Part 157(E) of the 
Federal Energy Regulatory Commission's (Commission) regulations, for a 
certificate of public convenience and necessity authorizing the 
construction and operation of natural gas pipeline, compression, 
measuring and other related facilities. On that same date Buccaneer 
filed in Docket No. CP00-15-000 for a blanket certificate of public 
convenience and necessity to render firm and interruptible 
transportation services on an open access basis pursuant to Part 284(G) 
of the Commission's regulations and for approval of initial rates. 
Also, Buccaneer requests in Docket No. CP00-16-000 the issuance of a 
blanket certificate of public convenience and necessity under Part 
157(F) of the Commission's regulations authorizing certain facility 
construction, operation and abandonment,\1\ all as more fully set forth 
in the applications which are on file with the Commission and open to 
public inspection. This filing may be viewed on the web at http://
www.ferc.us/online/rims.htm (call 202-208-2222).
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    \1\ On September 30, 1999, Buccaneer previously filed for 
certificate authorization to construct and operate these same 
facilities and for blanket authorization under Part 284, Subpart G 
and Part 157, Subpart F in Docket Nos. CP99-628-000, CP99-629-000, 
and CP99-630-000, respectively. These applications were rejected 
because of deficiencies in the environmental exhibits included in 
Docket No. CP99-628-000.
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    Pursuant to Section 157.102(b)(1) of the Commission's regulations, 
Buccaneer (i) requests that the instant application be considered under 
the optional procedures of Part 157(E) and (ii) agrees to comply with 
all terms and conditions specified in Section 157.103.
    Buccaneer requests that the Commission issue a preliminary 
determination on the non-environmental aspects of this proposal

[[Page 60801]]

by February 1, 2000, and a final order granting the authorizations 
requested herein by December 15, 2000. Buccaneer states that this 
approval schedule is necessary to allow construction of the project to 
be completed by April 1, 2002, the proposed in-service date for the 
project. Buccaneer states that it is not currently engaged in any 
natural gas transportation operations. Upon commencement of operations 
proposed in this application, Buccaneer states that it will become a 
``natural gas company'' within the meaning of Section 2(6) of the NGA 
and, as such, will be subject to the jurisdiction of the Commission. 
Buccaneer states that its natural gas pipeline project (``Buccaneer 
Project'' or the ``Project'') is being proposed in response to the 
rapidly growing market for natural gas service in the State of Florida, 
where the natural gas requirements are expected to nearly double by the 
year 2007. It is stated that the Project will be designed to transport 
up to 900,000 dekatherms (dt) of natural gas per day. Buccaneer 
estimates that the total cost of the Project will be $1,455,173,425. 
Buccaneer is proposing a 75/25 debt to equity capital structure and 
will seek non-recourse project financing.
    Buccaneer states that the Project will consist of a new mainline 
system which will commence in Mobile County, Alabama, and cross the 
Gulf of Mexico to the west coast of Florida just north of Tampa. It is 
stated that onshore, the pipeline will branch out in an easterly 
direction to serve power generation plants and other markets across the 
central part of the state. Buccaneer indicates that the pipeline system 
will include a compressor station in Mobile County and a liquids 
separation facility in Pasco County, Florida.
    Specifically, the Buccaneer states that the Project will consist of 
532.67-miles of 36-inch mainline pipeline in three major mainline 
components: the Alabama Mainline, the Gulf of Mexico Mainline and the 
Florida Mainline. It is stated that the 36-inch, 16.66 mile Alabama 
Mainline will begin at Buccaneer's proposed Compressor Station 1 which 
will be co-located with the existing compressor station of 
Transcontinental Gas Pipe Line Corporation (Transco) in Mobile County, 
Alabama and will include a 4.14-mile segment in Mobile County and a 
12.52-mile segment in Alabama state waters, and will end at the 
boundary between the Alabama state waters and federal waters in Mobile 
Block 822, Offshore Alabama. Buccaneer states that the Gulf of Mexico 
Mainline will consist of 376.77 miles of 36-inch mainline pipeline 
beginning in Mobile Block 822, traversing the Mobile, Pensacola, Destin 
Dome, Apalachicola, Florida, Middle Ground and Tarpon Springs Areas, 
and ending at the boundary between federal waters and Florida state 
waters in Tarpon Springs Block 901. Buccaneer indicates that the 
Florida Mainline will consist of 139.24 miles of 36-inch mainline 
pipeline beginning in Tarpon Springs Block 901, traversing Pasco, Polk 
and Osceola Counties, Florida, and ending at the Project's milepost 
20.68 in Orange County, Florida, where the mainline will branch into 
16-inch and 30-inch laterals.
    Buccaneer states that the 36-inch mainline mileposts are continuous 
from Compressor Station 1 in Mobile County, Alabama to the liquids 
separation facility in Pasco County, Florida. It is indicated that the 
Florida Mainline consists of the Pasco, Polk, Osceola and Orange County 
Mainlines and has a milepost system that begins at the boundary of each 
Florida county. Buccaneer states that there will be three major lateral 
systems and five small laterals which will branch from the Florida 
Mainline. Buccaneer states that the 30-inch, 37.99-mile Tiger Bay Plant 
Lateral will begin at milepost 20.58 on the Polk County Mainline and 
will extend southward, where 20-inch extensions of the Tiger Bay Plant 
Lateral will be constructed to deliver gas to the Hines, Polk and Payne 
Creek Plants.
    It is stated that the 24-inch, 46.60-mile Leesburg Plant Lateral 
will begin at milepost 32.87 on the Polk County Mainline and will 
extend northward into Lake County. It is further stated that the 34.68-
mile Oleander Plant Lateral will consist of 30-inch and 24-inch 
pipeline beginning at milepost 20.68 on the Orange County Mainline and 
extending to the east into Brevard County. It is also indicated that 
the 18-inch Indian River and Cape Canaveral Plant Laterals will be 
extensions of the Oleander Plant Lateral at its eastern end. Buccaneer 
states that additional 16-inch laterals will be constructed from 
various portions of the Florida Mainline to deliver gas to the Anclote, 
Intercession City, Cane Island and Stanton Plants and to the City of 
Lakeland, Florida.
    Buccaneer states that it also will construct a new 75,000 
horsepower compressor station (referred to as Buccaneer's Compressor 
Station 1) which will be co-located with Transco's existing Compressor 
Station 82 in Mobile County, Alabama, and will include a compressor 
building with five 15,000 horsepower gas turbine-driven gas 
compressors. It is stated that a metering and regulating (M&R) station 
also will be constructed at the station to measure gas delivered into 
the Buccaneer mainline.
    Buccaneer also proposes to construct a liquids separation facility 
at Anclote in Pasco County, Florida to collect liquids that have 
condensed in the pipeline due to temperature and pressure drop. The 
facility will be sited on a 68-acre tract, immediately north of Florida 
Power corporation's Anclote Plant, and a 290 foot, single-span bridge 
will be constructed across the Anclote Power Plant cooling water 
outflow channel to access the site. Buccaneer also proposes to 
construct M&R stations at each of the 13 proposed delivery points.
    It is stated that the facilities will be constructed and operated 
by Buccaneer's affiliate, Buccaneer Operating Company. Buccaneer states 
that the construction and operation of the Buccaneer pipeline system 
will have no significant impact on the quality of human health or the 
environment. Buccaneer certifies that the proposed facilities will be 
designed, constructed, operated and maintained in accordance with all 
applicable safety standards and plans for maintenance and inspection.
    Buccaneer proposes to provide a firm transportation service under 
Rate Schedule FTS, an interruptible transportation service under Rate 
Schedule ITS and a parking and lending service under Rate Schedule PAL, 
under rates, terms and conditions in its pro forma tariff included with 
the application. Buccaneer states that the shippers subscribing to its 
firm transportation service will be given the option of paying a 
negotiated rate or a cost-based recourse rate for service under its 
firm rate schedule. Buccaneer proposes that the initial recourse rate 
for its firm transportation service under Rate Schedule FTS will be a 
daily reservation rate of $0.7690 per dt, which is based on the 
straight fixed-variable rate design methodology. It is stated that the 
initial recourse rate for interruptible transportation service under 
Rate Schedule ITS and parking and loan service under Rate Schedule PAL 
will be a commodity rate of $0.7690 per dt. Buccaneer states that its 
customers also will be charged fuel and retainage and the ACA surcharge 
as set forth in its tariff.
    Buccaneer states that it is proposing a capital structure 
consisting of 75 percent debt and 25 percent equity. Buccaneer 
indicates that it assumes that the debt will bear interest at the rate 
of 4.0 percent for a term of 25 years. Buccaneer states, however, that 
it plans to seek the most favorable financing terms available in the 
marketplace at the time the project is financed. Buccaneer

[[Page 60802]]

proposes that the equity component of its capital structure earn a 
return of 14 percent, producing an overall after-tax return of 9.88 
percent on Buccaneer's proposed capital structure. Buccaneer states 
that its proposed return on equity and capital structure are consistent 
with recent Commission orders on major construction projects, two of 
which (Vector Pipeline L.P. and Alliance Pipeline L.P.) involve 
optional certificate applications.
    Buccaneer asserts that approval of the instant application is 
required by the public convenience and necessity for the following 
reasons:
    A. As one of the fastest growing states in the country, Florida 
projects that it will need over 10,000 megawatts of additional 
electricity in the state by the year 2007 to keep up with its growing 
population. Additional power generation capacity will be required to 
meet this need and to avoid the electricity curtailments that Florida 
experienced during the summer of 1998. It is expected that a vast 
majority of this additional power generation will be fueled by natural 
gas, thus placing natural gas in a pivotal, growing role in the 
development of Florida's new and existing electric power generation 
plants. For natural gas to fulfill that role, the Florida Peninsula 
will require approximately twice the 1.5 million dt per day of pipeline 
capacity currently provided by its only existing interstate pipeline. 
The Buccaneer Project will help serve that requirement by providing 
900,000 dt per day of new pipeline capacity to the state.
    Moreover, the need for compliance with the Clean Air means that 
existing industrial and commercial plants, which are now coal or oil 
fueled, will be encouraged to switch to natural gas as their primary 
fuel source. An increased supply of clean burning natural gas can 
displace massive amounts of coal and heavy oil that would otherwise be 
required for heating, cooling and generating electricity. The 
environmental benefits are clear.
    Natural gas emits virtually no sulfur dioxide or particulate 
matter, very little nitrogen oxides and much less carbon dioxide than 
other fossil fuels.
    B. Section 157.104(c) of the Commission's regulations establishes a 
rebuttable presumption that an optional certificate applicant's project 
is required by the public convenience and necessity. Specifically, if 
an applicant complies fully with the requirements of Sections 157.102 
and 157.103 of the regulations, it is presumed that:
    (1) The applicant is qualified to perform all the activities for 
which certificate authorization is requested;
    (2) The applicant is willing and able to perform acts and provide 
service, as proposed, and to comply with the NGA and any applicable 
regulations thereunder; and
    (3) The proposed new service is or will be required by the present 
or future public convenience and necessity.
    Buccaneer states that it has complied with the filing requirements 
of Section 157.102 and has satisfied the terms and conditions of 
Section 157.103. In addition to satisfying these specific requirements 
of the optional certificate regulations, Buccaneer indicates that the 
Buccaneer Project furthers the Commission's goals of the optional 
certificate program, which sought (1) to provide the full benefits of 
competition to consumers by facilitating easier entry and exit from 
services, (2) to ensure the most efficient scale of facilities by 
removing certification as a barrier to entry, and (3) to provide 
incentives for competition where none exists by maximizing the use of 
alternative market access for producers and consumers. Buccaneer states 
that it will promote these goals as a new market entrant, providing 
additional markets for producers and enhancing competition in the State 
of Florida.
    It is further indicated that the Project will further enhance the 
security of natural gas supplies to Florida, given that Buccaneer has 
complied with the requirements and furthers the goals of optional 
certificate regulations.
    Any person desiring to be heard or to make protest with reference 
to said application should on or before November 23, 1999, 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 385.211 or 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 to 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 
last maintained by the Commission and will receive copies of all 
documents filed by the Applicant and by every one of the intervenors. 
As 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 jurisdiction conferred upon the 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 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 Buccaneer to appear or be represented at the 
hearing.
David P. Boergers,
Secretary.
[FR Doc. 99-29101 Filed 11-5-99; 8:45 am]
BILLING CODE 6717-01-M