[Federal Register Volume 66, Number 234 (Wednesday, December 5, 2001)]
[Notices]
[Pages 63228-63229]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-30113]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. CP02-25-000; Docket No. CP02-29-000; Docket No. CP02-30-
000]


Copiah County Storage Company; Notice of Application

November 29, 2001.
    Take notice that on November 14, 2001, Copiah County Storage 
Company (Copiah), 5400 Westheimer Court, Houston, Texas 77056-5310, 
filed in the captioned docket an application for a certificate of 
public convenience and necessity and related authorizations pursuant to 
section 7 of the Natural Gas Act, as amended, and the Commission's 
Rules and Regulations thereunder. Copiah requests authorization for the 
following:
    (i) A certificate of public convenience and necessity pursuant to 
subpart A of part 157 authorizing Copiah to construct, own, operate, 
and maintain natural gas storage facilities capable of delivering 
300,000 dekatherms per day, consisting of a storage cavern and other 
associated and appurtenant facilities;
    (ii) A blanket construction certificate pursuant to subpart F of 
part 157 to permit Copiah to construct, acquire and operate additional 
facilities following construction of the facilities for which 
authorization under subpart A of part 157 is sought;
    (iii) Authorization to provide storage services at market based 
rates; and
    (iv) A blanket certificate pursuant to subpart G of part 284 
authorizing Copiah to provide storage and hub services on behalf of 
others, and approval of the FERC Gas Tariff contained in Exhibit P, 
pursuant to which Copiah will provide such services consistent with 
Order Nos. 636 and 637, et seq.,
all as more thoroughly described in the application on file with the 
Commission and open to public inspection. This filing may be viewed on 
the web at http://www.ferc.gov using the ``RIMS'' link, select 
``Docket#'' and follow the instructions (please call (202)208-2222 for 
assistance).
    Copiah further requests that the Commission grant waivers of the 
following: (i) The requirement pursuant to Sec. 284.7(e) that rates 
must be designed using a straight-fixed variable rate design 
methodology; (ii) the requirement pursuant to Sec. 157.6(b)(8) to 
provide cost of service information necessary for determination of rate 
treatment; (iii) the requirement pursuant to Sec. 157.14 to include in 
the application Exhibits K, L, N, and O; (iv) the accounting and 
reporting requirements under parts 201 and 260.2; (v) the requirement 
pursuant to Sec. 157.14(a)(10) to provide total gas supply information; 
and (vi) all other regulations to the extent such waivers may be 
necessary in order to grant each of the authorizations requested in 
this application.
    Copiah asks the Commission to issue a preliminary determination on 
non-environmental issues by February 20, 2002, and a final certificate 
order by July 24, 2002, so that Copiah will be able to commence storage 
service in February 2004 in order to provide its customers with storage 
services at the end of the 2003-2004 heating season.
    The name, address, and telephone number of the person to whom 
correspondence and communications concerning this Application should be 
addressed is: Steven E. Tillman, Director of Regulatory Affairs, Copiah 
County Storage Company, P.O. Box 1642, Houston, Texas 77251-1642, 
Phone: (713) 627-5113, Fax: (713) 627-5947.
    Copiah proposes to build and operate a natural gas storage 
facility, the Copiah Storage Project, in Copiah County, Mississippi, 
collectively referred to as the ``Copiah Storage Project.'' In this 
application, Copiah requests authorization to develop the first of two 
possible caverns on the Copiah site. The proposed project will include 
the installation of approximately 13,350 horsepower of compression, 
development of an underground storage cavern, and as many as five 
common well sites.
    The compressor site will provide compression for injection and 
withdrawal of natural gas to and from storage. The site of the 
compressor has been proposed to be as close to the cavern and fresh 
water/brine disposal wells as practical given the existing topography 
of the site. The compressor building will house three 4,450 HP 
turbocharged gas engine-driven Ariel reciprocating compressors along 
with ancillary support and control equipment, to provide a total of 
approximately 13,350 HP of compression.
    The cavern will be created by solution mining using groundwater and 
will extend approximately 5,500 feet below the ground surface. The 
cavern that Copiah is seeking authorization to develop in this 
application, the Primary Cavern, will have an initial working storage 
capacity of approximately 3.3 billion cubic feet (Bcf), with 
approximately 300,000 Dekatherms per day (Dth/d) of deliverability 
capability and approximately 150,000 Dth/d of injection capability. 
Although Copiah is currently only seeking approval for development of 
one cavern at this time, Copiah identifies two cavern site locations in 
its application to allow for an alternative site in the event 
irreversible drilling problems are encountered at the primary site 
either due to geology or other complications.
    The project also will include a series of wells, piping, valves, 
instruments, and controls to operate the solution mining and brine 
disposal activities associated with development of the gas storage 
cavern. Each well site will contain brine injection and/or freshwater 
withdrawal wells, along with associated ancillary facilities and 
service roadways.
    The Copiah Storage Project has been designed as a natural gas 
storage and ultimately a hub services facility for injection, storage, 
and withdrawal of natural gas. Copiah's request for authorization is 
based on anticipated demand for its storage and hub services as well as 
market studies that project substantial growth in natural gas demand in 
the markets served by Copiah's customers. Due to Copiah's analysis of 
current and expected growth in demand for storage and hub services in 
the Gulf Coast region, Copiah anticipates that the Copiah Storage 
Project will become subscribed as capacity becomes available for 
service. Copiah states that the interest of the market in these 
services is reflected in the results of the Copiah open season during 
which Copiah received non-binding nominations from five potential 
customers for a total of approximately 6.5 Bcf of natural gas storage. 
The potential customers indicated an interest in signing contracts with 
an initial contract term of 5-10 years at the time that the Copiah 
facilities are close to being placed into service.
    Copiah proposes to provide firm and interruptible services, which 
will enhance shipper options for the transportation and storage of 
natural gas. Copiah further proposes and requests Commission 
authorization to charge market-based rates for such services, which 
Copiah avers is appropriate as demonstrated by the

[[Page 63229]]

market power study included with the application.
    Copiah has identified a pipeline lateral and a meter station that 
will be owned by a company other than Copiah and constructed in 
association with the Copiah Storage Project. Texas Eastern will 
construct, own and maintain an approximately 1.5 miles of 24-inch 
diameter pipeline lateral connecting Texas Eastern's 30-inch Line 14 in 
Copiah County, Mississippi to the Copiah Storage Project. In addition, 
Texas Eastern will construct, own and maintain a bi-directional meter 
station within the Copiah Storage Project property at a location 
directly adjacent to the compressor site at the terminus of the 
interconnection between the Copiah Storage Project and Texas Eastern's 
proposed 1.5-mile pipeline lateral. Texas Eastern is responsible for 
all appropriate federal and state filings and permits required for 
construction and operation of the proposed meter station and pipeline 
lateral. Texas Eastern has indicated to Copiah that the Texas Eastern 
meter station and lateral will be constructed pursuant to its blanket 
authority granted by the Commission in Docket No. CP82-535. Neither 
Texas Eastern nor Copiah are requesting authority to construct these 
facilities in the instant Copiah application.
    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 December 19, 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, protests, and 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 under the ``e-Filing'' 
link.
    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 the Commission's 
review process, a final Commission order approving or denying a 
certificate will be issued.

David P. Boergers,
Secretary.
[FR Doc. 01-30113 Filed 12-4-01; 8:45 am]
BILLING CODE 6717-01-P