[Federal Register Volume 66, Number 16 (Wednesday, January 24, 2001)]
[Notices]
[Pages 7638-7640]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-2066]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. CP01-64-000]


Trailblazer Pipeline Company; Notice of Application

January 18, 2001.
    On January 10, 2001, Trailblazer Pipeline Company (Trailblazer), 
747 East 22nd Street, Lombard, Illinois 60148, filed in Docket No. 
CP01-64-000 an application pursuant to section 7 of the Natural Gas Act 
(NGA) and the Commission's Rules and Regulations for a certificate of 
public convenience and necessity authorizing Trailblazer to construct 
and operate facilities that would expand its transportation capacity 
from Colorado to Nebraska in order to provide 324,000 Dth/d of new 
firm, long-term transportation service commencing July 2002.\1\ 
Trailblazer is proposing that incremental rates be established for the 
proposed expansion facilities and is seeking approval for pro

[[Page 7639]]

forma tariff provisions that would establish a fuel tracker applicable 
to any volumes charged the expansion rates, all as more fully set forth 
in the application which is on file with the Commission and open to 
public inspection. The filing may be viewed at http://www.ferc.fed.us/online/rims.htm (call 202-208-2222 for assistance).
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    \1\ Trailblazer is a general partnership consisting of Kinder 
Morgan Trailblazer, LLC, CGT Trailblazer (both subsidiaries of 
Kinder Morgan Operating, L.P.) and Enron Trailblazer Pipeline 
Company, a subsidiary of Enron Corp. Trailblazer indicates that if 
the requested certificate authority in Docket No. CP01-64-000 is 
granted and accepted then CIG Trailblazer Gas Company will join the 
Trailblazer partnership.
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    Trailblazer proposes to: (1) Install two new 10,000 site-rated 
horsepower gas-fired compressor units at a site specified as Compressor 
Station 601 in Logan County, Colorado, (2) install two new 10,000 
horsepower electric compressor units at a site specified as Compressor 
Station 603 in Kearney County, Nebraska, (3) expand one existing 
electric compressor unit from 5,200 horsepower to 10,000 horsepower, 
and (4) install one new electric 10,000 horsepower unit at existing 
Compressor Station 602 in Lincoln County, Nebraska. Trailblazer 
estimates that the compression will cost approximately $58.5 million.
    Trailblazer asserts that the proposed expansion is a result of the 
growth in demand for Rocky Mountain natural gas supplies from existing 
market centers served by Natural Gas Pipeline Company of America 
(Natural) and Northern Natural Gas Company (Northern) and other 
pipelines connected to those two interstate pipeline systems. Based on 
an open season that was held from August 7 to August 18, 2000, 
Trailblazer has signed binding precedent agreements for service on 
Trailblazer between its existing receipt point at Rockport and its 
delivery point at Beatrice with the following expansions shippers:

------------------------------------------------------------------------
                                                                Quantity
                         Shipper name                           (Dth/d)
------------------------------------------------------------------------
Western Gas Resources, Inc...................................     57,500
Enron North America Corp.....................................     41,000
CMS Energy Marketing Services and Trading Company............    100,000
Barrett Resources Corp.......................................     70,000
Devon Energy Production Co...................................     33,000
Pennaco Energy, Inc..........................................     22,500
                                                              ----------
      Total..................................................    324,000
------------------------------------------------------------------------

    Trailblazer discloses that the six expansion shippers have signed 
agreements that call for fixed rates for the entire term of their 
respective agreements. According to Trailblazer such fixed-rate 
contracts constitute negotiated rates pursuant to General Terms and 
Conditions (GT&C) section 38 of Trailblazer's FERC Gas Tariff. As 
required by the Commission's regulations, Trailblazer proposes separate 
recourse rates for firm services along the expansion facilities. For 
the reservation rate, Trailblazer proposes a rate of $3.5931/Dth and a 
commodity rate of $0.0038/Dth. Trailblazer based its firm recourse rate 
on a cost of service of $14.4 million and the expansion volume of 
324,000 Dth. Trailblazer states that it utilized a 5.0 percent 
depreciation rate and a pre-tax return of 13.99 percent. Trailblazer 
noted that it is not proposing any change to the rates charged for 
interruptible transportation service under Rate Schedule ITS. 
Additionally, Trailblazer proposes an initial fuel retention factor of 
3.2 percent for the expansion shippers. Trailblazer submitted pro forma 
tariff provisions in the certificate proceeding proposing a separate 
fuel tracker mechanism for the expansion shippers. This fuel tracker 
mechanism would adjust the 3.2 percent retention factor on an annual 
basis.
    Trailblazer proposes an in-service date of July 2002 and requests 
that a certificate be issued by July 2001. According to Trailblazer the 
proposed timing will allow sufficient time for the pouring of concrete 
foundations and the construction of the compressor buildings prior to 
the start of the winter season.
    Questions regarding the details of this proposed project should be 
directed to Mr. James J. McElligott, at (663) 691-3525, or in writing 
to his attention at Trailblazer Gas Transmission Company, 747 East 22nd 
Street, Lombard, Illinois 60148.
    There are two ways to become involved in the Commission's review of 
this project. First, any person wishing to obtain legal status by 
becoming a party to the proceedings for this project should, on or 
before February 8, 2001, file with the Federal Energy Regulatory 
Commission, 888 First Street, NE, Washington, DC 20426, a motion to 
intervene 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). A person obtaining party 
status will be placed on the service list maintained by the Secretary 
of the Commission and will receive copies of all documents filed by the 
applicant and by all other parties. A party must submit 14 copies of 
filings made with the Commission and must mail a copy to the applicant 
and to every other party in the proceeding. Only parties to the 
proceeding can ask for court review of Commission orders in the 
proceeding.
    However, a person does not have to intervene in order to have 
comments considered. The second way to participate is by filing with 
the Secretary of the Commission, as soon as possible, an original and 
two copies of comments in support of or in opposition to this project. 
The Commission will consider these comments in determining the 
appropriate action to be taken, but the filing of a comment alone will 
not serve to make the filer a party to the proceeding. The Commission's 
rules require that persons filing comments in opposition to the project 
provide copies of their protests only to the party or parties directly 
involved in the protest.
    Persons who wish to comment only on the environmental review of 
this project should submit an original and two copies of their comments 
to the Secretary of the Commission. Environmental commenters will be 
placed on the Commission's environmental mailing list, will receive 
copies of the environmental documents, and will be notified of meetings 
associated with the Commission's environmental review process. 
Environmental commenters will not be required to serve copies of filed 
documents on all other parties. However, the non-party commenters will 
not receive copies of all documents filed by other parties or issued by 
the Commission (except for the mailing of environmental documents 
issued by the Commission) and will not have the right to seek court 
review of the Commission's final order.
    The Commission may issue a preliminary determination on non-
environmental issues prior to the completion of its review of the 
environmental aspects of the project. This preliminary determination 
typically considers such issues as the need for the project and its 
economic effect on existing customers of the applicant, on other 
pipelines in the area, and on landowners and communities. For example, 
the Commission considers the extent to which the applicant may need to 
exercise eminent domain to obtain rights-of-way for the proposed 
project and balances that against the non-environmental benefits to be 
provided by the project. Therefore, if a person has comments on 
community and landowner impacts from this proposal, it is important 
either to file comments or to intervene as early in the process as 
possible.
    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.
    If the Commission decides to set the application for a formal 
hearing before an Administrative Law Judge, the Commission will issue 
another notice describing that process. At the end of

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the Commission's review process, a final Commission order approving or 
denying a certificate will be issued.

David P. Boergers,
Secretary.
[FR Doc. 01-2066 Filed 1-23-01; 8:45 am]
BILLING CODE 6717-01-M