[Federal Register Volume 66, Number 56 (Thursday, March 22, 2001)]
[Notices]
[Pages 16047-16048]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-7105]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. CP00-422-001]


El Paso Natural Gas Company; Notice of Amendment

March 16, 2001.
    Take notice that on March 15, 2001, El Paso Natural Gas Company (El 
Paso), Post Office Box 1492, El Paso, Texas 79978, filed in Docket No. 
CP00-422-001 an amendment to its pending application filed in Docket 
No. CP00-422-000, to (1) issue an order by March 31, 2001, permitting 
El Paso to initiate the cleaning and modification of its Line 2000, (2) 
delete the portion of the application to abandon the six existing 
mainline compressor facilities comprising a total of 119,750 
horsepower, and (3) authorize by April 15, 2001, the proposal to expand 
the design capacity of El Paso's interstate transmission system by 
approximately 230,000 Mcf per day, all as more fully set forth in the 
application to amend which is on file with the Commission an open to 
public inspection. This filing may be viewed on the web at http://www.ferc.fed.us/online/htm (call 202-208-2222 for assistance).
    El Paso states that the requested authority will facilitate an in-
service date of August 31, 2001, which will enable El Paso to place an 
expansion of its system into service in a time frame that would help 
this year to ameliorate the California energy crisis. El Paso also 
states that it will accept the full risk for the Line 2000 Project by 
agreeing to place the Line No. 2000 Project in service as a loop to the 
existing system and to continue to operate the existing South System 
compression without additional contracts to cover its operating and 
investment costs.
    El Paso indicates that on July 31, 2000, it filed its Section 7 
application in Docket No. CP00-422-000 for the Line 2000 Project, a 
project to acquire and convert a crude oil transportation pipeline to 
natural gas transportation service. El Paso states that the essence of 
the Line No. 2000 Project as originally filed was to replace old 
horsepower on its South System with pipeline, but with no increase in 
the existing transportation capacity of its transmission system.
    El Paso now states that, since the time El Paso reformulated and 
prepared its original application, there has been a radical change in 
the dynamics of the natural gas market in California, with California 
experiencing greatly increased prices in both the gas and electricity 
markets, and consumers being subjected to power alerts and, on 
occasion, rolling blackouts. It is stated that electric power supplied 
by surrounding states has been inadequate to resolve the crisis that 
continues in California, which is expected by many to peak during the 
upcoming summer season. It is indicated that much of the power 
generated within California and the surrounding states depends on the 
availability of natural gas as fuel for the generation facilities.
    El Paso states that on December 13, 2000, El Paso Corporation 
addressed publicly the dramatic changes in the energy use of the 
Western United States in a letter from Williams A. Wise, its President 
and Chairman, to the Commissioners of the FERC, and committed to pursue 
the addition of pipeline capacity into the California market over the 
next few years.
    El Paso believes that the Commission has also been actively 
exploring ways in which it can assist in ameliorating the power crisis 
in California, pointing out, for example, a January 3, 2001, letter 
from the Office of Energy Projects sent to El Paso inquiring as to the 
feasibility of modifying the Line 2000 Project in manner that could 
assist the difficult situation now confronting the California gas 
market. El Paso indicates that it responded to the letter by stating 
that it would be willing to expand its system if there is sufficient 
support for such expansion.
    El Paso submits that the energy crisis in California remains 
unabated, and the market has sent signals indicating a need for 
additional volumes of gas to serve growing electric generation needs in 
the Southwest. El Paso states that, against this backdrop, it has 
further evaluated the steps it can take today to improve the conditions 
for all parties operating in the California market. With the primary 
goal in mind of providing

[[Page 16048]]

market relief as quickly as possible, El Paso has developed a multi-
part plan, listing as the heart of the plan the immediate conversion of 
the Line 2000 Project from a compression replacement project to an 
expansion project.
    El Paso describes in plan as follows:

Part One--Recontracting Existing Capacity

    El Paso states that it has approximately 1.22 Bcf per day of 
capacity under contracts to El Paso Merchant Energy Company (EPME) 
which expires on May 31, 2001, subject to EPME having right of first 
refusal on that capacity. El Paso indicates that, in recognition of 
the current California energy crisis, it held an open season for 
this capacity from January 12, through February 12, 2001. El Paso 
states that it received 148 bids for a total of 14.4 Bcf per day of 
capacity, but awarded 121 bids pending the February 22, 2001, 
deadline of EPME matching the bids. It is indicated that the 121 
bids fully subscribed the 1.22 Bcf per day of capacity at the 
posting, at terms ranging from 17 months to 15 years and at the 
maximum California reservation rate. El Paso advised that EPME did 
not match any of the bids, and El Paso entered into the 
transportation service agreements for the total 1.22 Bcf per day of 
capacity.

Part Two

    El Paso advises that the authorization requested in this 
amendment constitutes Part Two. El Paso advises that as soon as the 
Line 2000 Project is placed into service, including the 230,000 Mcf 
per day of incremental capacity in the daily scheduling of gas on 
the system. El Paso states that this increment of capacity will be 
utilized as system flexibility capacity and would serve to reduce 
daily allocations of capacity on the system in times of maintenance, 
outages, and force majeure events. El Paso also states that it would 
not require specific new firm transportation service agreements for 
such capacity but instead would use it as a cushion to meet the 
demands for gas in the California market in the markets east of 
California where natural gas is used to generate power that is 
exported to California. El Paso also submits that the additional 
capacity would offset the reduction in capacity that could otherwise 
be experienced as a result of the extraordinary maintenance 
activities planned for the coming summer months.

Part Three

    El Paso has posted on its electronic bulletin board an open 
season for further system expansion projects timed to meet the needs 
of potential shippers. El Paso indicates that this open season, 
which closes on March 23, 2001, provides potential shippers an 
opportunity to express their non-binding interest in firm 
transportation service to support additional expansions of the El 
Paso system.

    Any questions regarding the amendment should be directed to Robert 
T. Tomlinson at (915) 496-2600.
    Any person desiring to be heard or to make any protest with 
reference to said application should on or before March 30, 2001, 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 385.211 and 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 or parties directly involved.
    Any person wishing to become a party in any proceeding herein must 
file a motion to intervene in accordance with the Commission's rules.
    A person obtaining intervenor 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 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 
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 the jurisdiction conferred upon the 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 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 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 El Paso to appear or to be represented at 
the hearing.
    Also, comments, protest, or interventions 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.

Linwood A. Watson, Jr.,
Acting Secretary.
[FR Doc. 01-7105 Filed 3-21-01; 8:45 am]
BILLING CODE 6717-01-M