[Federal Register Volume 65, Number 151 (Friday, August 4, 2000)]
[Notices]
[Pages 47975-47977]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-19745]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket Nos. CP00-412-000, CP00-413-000 and CP00-414-000]


Cross Bay Pipeline Company, L.L.C. Transcontinental Gas Pipe Line 
Corporation; Cross Bay Pipeline Company, L.L.C.; Notice of Applications

July 31, 2000.
    Take notice that on July 21, 2000, Cross Bay Pipeline Company, 
L.L.C. (Cross Bay) and Transcontinental Gas Pipe Line Corporation 
(Transco) filed jointly in Docket No. CP00-412-000 an application 
pursuant to Section 7 of the Natural Gas Act (NGA) and the Commission's 
Rules and Regulations. Also take notice that on July 21, 2000, Cross 
Bay filed in Docket Nos. CP00-413-000 and CP00-414-000 applications 
pursuant to Section 7 of the NGA and the Commission's Rules and 
Regulations. By these applications, Cross Bay seeks certificates of 
public convenience and necessity authorizing it to construct, own, 
operate, and maintain natural gas facilities in order to become a new 
interstate natural gas pipeline company in New Jersey and New York. 
Cross Bay intends to provide up to 125,000 dth per day of new firm 
transportation between New Jersey and New York for any potential future 
customers. Transco seeks authority abandon, by transfer to Cross Bay, 
certain of its facilities in New Jersey and New York. Cross Bay's and 
Transco's proposals are more fully set forth in the applications which 
are on file with the Commission and open to public inspection. The 
filing(s) may also be viewed at http://www.ferc.fed.us/online/rims.htm 
(call 202-208-2222 for assistance). Any initial questions regarding 
these applications should be directed to Gisela B. Cherches, attorney 
for Cross Bay Operating Company, at P.O. Box 1396, Houston, Texas, 
77251-1396, call (713) 215-2397.
    Cross Bay seeks a certificate of public convenience and necessity 
authorizing the acquisition of certain facilities by Cross Bay from 
Transco and the construction and operation by Cross Bay of other 
natural gas pipeline facilities in New Jersey and New York. Cross Bay 
also seeks approval of its initial recourse rates for firm and 
interruptible open access transportation services, approval of its 
lease of pipeline capacity from Transco, and approval of its leasing of 
its capacity to Transco. Cross Bay further requests that the Commission 
grant it a Blanket Certificate of public convenience and necessity 
pursuant to Part 284, Subpart G of the Commission's Regulations 
authorizing the transportation of gas for others, and a Blanket 
Certificate of public convenience and necessity under Part 157, Subpart 
F of the Commission's Regulations authorizing certain limited future 
facility construction and operation. Transco seeks approval of the 
related abandonment of certain of its natural gas pipeline facilities 
located in New Jersey and New York so that they can be contributed to 
Cross Bay as one of Transco's contributions.
    Cross Bay respectfully requests that the Commission issue a 
preliminary determination on the non-environmental aspects of this 
proposal by December 15, 2000, and a final order granting the 
authorizations requested by June 15, 2001. Cross Bay says that this 
approval schedule is necessary to allow the project to be completed by 
December 1, 2002, the proposed in-service date for the project.
    Cross Bay is a limited liability company formed under the laws of 
the State of Delaware. The members of Cross Bay are Transco Cross Bay 
Company (Transco Cross Bay), a Delaware corporation and wholly owned 
subsidiary of Transco, Texas Eastern Cross Bay Company (Texas Eastern 
Cross Bay), a Delaware corporation and wholly owned subsidiary of Texas 
Eastern Transmission Corporation (Texas Eastern), and KeySpan Cross 
Bay, L.L.C. (KeySpan Cross Bay), a Delaware limited liability company 
and wholly owned subsidiary of KeySpan Corporation. Transco Cross Bay 
and Texas Eastern Cross Bay each have a 37.50% ownership interest in 
Cross Bay and KeySpan Cross Bay has a 25% ownership interest in Cross 
Bay. Cross Bay Operating Company, a wholly owned subsidiary of Transco, 
will act as operator of Cross Bay, overseeing the construction of Cross 
Bay's facilities, operating the facilities and handling the day-to-day 
business affairs of Cross Bay.
    Cross Bay's pipeline system will have a total firm transportation 
capacity of 614,628 Dth. per day. Of this total capacity, Cross Bay 
will have 125,000 Dth. per day of incremental firm capacity available 
to new shippers. Cross Bay will lease up to 489,628 Dth.

[[Page 47976]]

per day of capacity on a firm basis back to Transco. Transco says that 
the lease will enable Transco to continue to provide seamless 
transportation service to existing customers who are currently served 
through the facilities Transco will transfer to Cross Bay. The cost of 
this lease is $61,483 per month, plus an additional amount for its 
share of operation and maintenance expenses and property taxes.
    In addition, Transco will lease to Cross Bay up to 125,000 Dth. per 
day of pipeline capacity from Transco's meter station at Linden, New 
Jersey, which interconnects with Texas Eastern's facilities, to the 
interconnection of Transco's system with Cross Bay's system at the 
Cross Bay compressor station to be constructed in Middlesex County, New 
Jersey. The cost of this lease is $31,878 per month.
    Cross Bay says that there is no economic or operational impact on 
Transco's existing customers due to the transfer of facilities or the 
terms of the lease arrangements. Cross Bay says it will have no adverse 
impacts on existing pipelines or their captive customers, as it will 
serve incremental load. Cross Bay says its project will enhance 
reliability of service to existing customers of Transco by adding 
compression and will enhance service to existing customers of Texas 
Eastern by providing additional access to New York markets through 
Cross Bay. The Cross Bay project involves less than two miles of 
replacement pipeline in existing right-of-way and construction of a 
compressor station on a site for which Cross Bay has secured the right 
to purchase the land.
    Cross Bay's pipeline system will consist of the following existing 
facilities and modifications to such facilities:
    1. About 3.3 miles of existing 42-inch pipeline in Middlesex 
County, New Jersey, and about 33.7 miles of existing 26-inch pipeline 
crossing Middlesex and Monmouth Counties, New Jersey and Queens and 
Nassau Counties, New York, including the Morgan Meter & Regulator 
Station and the Long Beach Meter & Regulator Station, which are both 
located along that pipeline segment. [Transco presently owns and 
operates these facilities, and refers to them as the Lower New York Bay 
Extension. Transco will cause these facilities to be transferred to 
Cross Bay at net book value.]
    2. Modifications to the two existing meter stations, Morgan and 
Long Beach.
    3. Uprating, by hydrostatic testing, of the 33.7 mile 26-inch 
pipeline.
    4. Replacement of 5 sections of the 42-inch pipeline and uprating 
by hydrostatic testing.
    5. Construction of one new compressor station consisting of two 
8,000 horsepower electric driven reciprocating compressors and metering 
facilities near Old Bridge in Middlesex County, New Jersey (Cross Bay 
Compressor Station) at a location on which Cross Bay has secured the 
rights to purchase the property.
    6. Modifications to other appurtenant facilities.
    Cross Bay estimates that the total cost of its project will be 
approximately $59.5 million. Cross Bay is proposing a capital structure 
consisting of 75% non-recourse debt and 25% partner-contributed equity. 
Cross Bay has assumed that the debt will bear interest at the rate of 
8% for a term of twenty (20) years. However, Cross Bay plans to seek 
the most favorable financing terms available in the marketplace at the 
time the project is financed. Cross Bay proposes that the equity 
component of its capital structure earn a return of 14%.
    The pro forma FERC Gas Tariff pursuant to which Cross Bay will 
provide transportation service is included in its application in 
Exhibit P. Cross Bay says that the terms and conditions of the tariff 
are structured to conform to the requirements of the Commission's Order 
Nos. 636 and 637. The tariff includes proposed Rate Schedule FT, under 
which Cross Bay will render firm transportation service to shippers, 
and proposed rate Schedule IT, under which Cross Bay will render 
interruptible transportation service. The tariff also provides for the 
ability to negotiate rates. Cross Bay says that any shippers 
subscribing to Cross Bay's firm transportation service will be given 
the option of paying a negotiated rate or a cost-based recourse rate 
for service under Rate Schedule FT. Cross Bay proposes that the initial 
recourse rate for firm transportation service under Rate Schedule FT 
will be a monthly reservation rate of $7.4161 per Dth./month, which is 
based on the straight fixed-variable rate design methodology. The 
initial rate for interruptible transportation service under Rate 
Schedule IT will be a commodity rate of $0.2438 per Dth./day.
    Cross Bay requests that the Commission issue it a Blanket 
Certificate of public convenience and necessity pursuant to Section 
284.221 of the Commission's Regulations authorizing Cross Bay to 
provide transportation service to the customers requesting and 
qualifying for transportation service under Cross Bay's FERC Gas 
Tariff. Cross Bay states that it will comply with the conditions set 
forth in Section 284.221(c).
    Cross Bay also request that the Commission grant to it a Blanket 
Certificate of public convenience and necessity pursuant to Section 
157.204 of the Commission's Regulations authorizing limited future 
facility construction, operation and abandonment as set forth in the 
Blanket certificate Regulations in part 157, Subpart F. Cross Bay 
states that it will comply with the terms, conditions and procedures 
specified in Part 157, Subpart F.
    Any person desiring to participate in the hearing process or to 
make any protest with reference to said application should on or before 
August 21, 2000, file with the Federal Energy Regulatory Commission, 
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 
NGA (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 laced 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 
the 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

[[Page 47977]]

other parties. However, commenters will not receive copies of all 
documents filed by the 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 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 provided for, unless otherwise advised, it will 
be unnecessary for Cross Bay or Transco to appear or be represented at 
the hearing.

David P. Boergers,
Secretary.
[FR Doc. 00-19745 Filed 8-3-00; 8:45 am]
BILLING CODE 6717-01-M