[Federal Register Volume 65, Number 221 (Wednesday, November 15, 2000)]
[Notices]
[Pages 68988-68989]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-29206]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. CP01-22-000; CP01-23-000; CP01-24-000; and CP01-25-000]


North Baja Pipeline LLC; Notice of Applications

November 8, 2000.
    Take notice that on November 1, 2000, North Baja Pipeline LLC 
(``NBP''), 1400 SW Fifth Avenue, Suite 900, Portland, Oregon 97201, 
filed applications in Docket Nos. CP01-22-000 and CP01-23-000 pursuant 
to Sections 7(c) and 3 of the Natural Gas Act, respectively. In these 
applications, NBP seeks a certificate of public convenience and 
necessity to construct, install, own, operate and maintain a new 
interstate natural gas pipeline and ancillary facilities as well as 
authorization and a Presidential Permit to construct, operate and 
maintain pipeline facilities at the international border. Further, NBP 
seeks in Docket No. CP01-24-000 a blanket certificate pursuant to 
Subpart G of Part 284 of the Commission's regulations to provide open-
access transportation of natural gas for others. Moreover, in Docket 
No. CP01-25-000, NBP requests a blanket certificate pursuant to Subpart 
F of Part 157 of the Commission's regulations to perform certain 
routine activities and operations.\1\ NBP also seeks approval of its 
initial rates and pro forma tariff provisions included in Docket No. 
CP01-22-000, et al. The applications may be viewed on the Commission's 
web site at http://www.ferc.fed.us/online/rims.htm (call 202-208-2222 
for assistance).
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    \1\ NBP submitted Docket Nos. CP01-22-000, CP01-24-000, and 
CP01-25-000 (Docket No. CP01-22-000, et al.) as one filing and 
separately filed its request for a Presidential Permit in Docket No. 
CP01-23-000.
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    NBP submits that it is a limited liability company formed under the 
laws of the State of Delaware, with its principal place of business in 
Portland, Oregon. NBP further states that it is owned by PG&E Gas 
Transmission Holdings Corporation.
    NBP states that within three days of issuance of this notice, it 
will provide notice to directly affected and adjacent landowners 
notifying them that NBP's request to construct facilities has been 
filed. NBP states that this notification will include the information 
required by the Commission regulations.
    NBP proposes to construct and operate a pipeline system, which 
would carry 500,000 Mcf per day of natural gas from an interconnection 
point with El Paso Natural Gas Company (``El Paso'') near Ehrenberg, 
Arizona. At this proposed interconnect, NBP proposes to construct the 
Ehrenberg Compressor Station that would consist of three 6,270 
horsepower (hp), gas fired centrifugal compressor units (with one 
additional 6,270 hp spare unit). The proposed system would extend 
approximately 79.8 miles through southeast California, to a point on 
the International border between Yuma, Arizona and Mexicali, North Baja 
California, Mexico. NBP's mainline facilities would consist of 
approximately 11.5 miles of 36-inch from the Ehrenberg Compressor 
Station and 68.3 miles of 30-inch pipe to the international border. At 
the international border, NBP indicates that it would interconnect with 
a similarly sized pipeline, Gasoducto Bajanorte, to be constructed by 
Sempra Energy Mexico (``Sempra''). Gasoducto Bajanorte would then 
transport gas west through Mexicali and on to Tijuana, Mexico, where it 
would interconnect with an existing pipeline, Transportadora de Gas 
Natural de Baja California (``TGN''). It is stated that TGN runs from 
Rosarito, Mexico, to an interconnection with the facilities of San 
Diego Gas and Electric Company at the San Diego/Tijuana border.
    NBP asserts that its filings meet the requirements of the 
Commission's regulations regarding certificate applications and the 
standards set forth in the Commission's Statement of Policy issued in 
Docket No. PL 99-3-000. Specifically, NBP states that, as a new 
pipeline, its project passes the Commission's ``no subsidies'' test, 
and further, its project was developed to eliminate or minimize impacts 
on the potentially affected interests of existing customers, captive 
shippers of existing pipelines, and landowners and the environment.
    NBP states that it held an open season in which it made capacity on 
its system

[[Page 68989]]

available to interested shippers on a not unduly discriminatory basis. 
As a result, NBP indicates that it has executed precedent agreements 
with four shippers for more than 300 MDth of long-term firm 
transportation service, representing approximately 60 percent of its 
total proposed capacity. NBP asserts that the executed precedent 
agreements demonstrate that there is market demand for natural gas 
transportation service on NBP. NBP further asserts that the market 
study included in Exhibit I in Docket No. CP00-22-000 et al., 
demonstrates that projected growth in gas demand in Northern Mexico and 
Southern California markets supports its project.
    NBP proposes to provide open-access firm transportation service 
under Rate Schedule FTS-1 and interruptible transportation service 
under Rate Schedule ITS-1, under rates, terms and conditions set forth 
in its pro forma tariff submitted with Docket No. CP00-22-000, et al. 
NBP proposes to offer both negotiated and recourse rates. NBP's submits 
that its proposed recourse rates are cost-of-service rates, designed 
under the straight-fixed variable method. NBP states that during its 
open season process it offered firm shippers the choice of negotiated 
or recourse rates and each shipper who executed a precedent agreement 
elected negotiated rates.
    NBP estimates that the total capital cost of constructing the 
pipeline and appurtenant facilities will be approximately $146 million 
(inclusive of AFUDC). Of the total estimated capital construction cost, 
NBP states that $110 million relates to pipeline and ancillary 
facilities, and $36 million relates to a compressor station. NBP 
anticipates that the initial capital structure on the in-service date 
will be 70 percent debt and 30 percent equity, with an 8.5 percent cost 
of debt. It proposes a 14 percent return on equity. NBP further 
requests that the Commission grant any waivers of its regulations that 
the Commission may deem necessary to grant the relief requested in its 
applications.
    NBP proposes an in-service date by September 1, 2002. NBP requests 
that the Commission issue a Preliminary Determination with respect to 
nonenvironmental issues by June 15, 2001, and a final certificate by 
January 9, 2002, so that NBP can meet its proposed in-service date.
    Any questions regarding the applications should be directed to John 
A. Roscher, Director, Rates and Regulatory Affairs, North Baja Pipeline 
LLC, 1400 SW Fifth Avenue, Suite 900, Portland, Oregon 97201, phone: 
(503) 833-4254.
    Any person desiring to be heard or to make any protest with 
reference to said applications should on or before November 29, 2000, 
file with the Federal Energy Regulatory Commission, Washington, D.C. 
20426, a petition 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 petition to intervene in 
accordance with the Commission's Rules. Comments and protests may be 
filed electronically via the Internet in lieu of paper. See, 18 CFR 
385.2001(a)(1)(iii) and the instructions on the Commission's web site 
at http://www.ferc.fed.us/efi/doorbell.htm.
    Take further notice that, pursuant to the authority contained in 
and subject to the jurisdiction conferred upon the Federal Energy 
Regulatory Commission by Sections 3 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 petition 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 petition for leave 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 NBP to appear or to be represented at the hearing.

Linwood A. Watson, Jr.,
Acting Secretary.
[FR Doc. 00-29206 Filed 11-14-00; 8:45 am]
BILLING CODE 6717-01-M