[Federal Register Volume 66, Number 243 (Tuesday, December 18, 2001)]
[Notices]
[Pages 65193-65194]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-31062]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket Nos. CP02-39-000, CP02-40-000, CP02-41-000, and CP02-42-000]


Pacific Gas and Electric Company; Standard Pacific Gas Line 
Incorporated; GTrans LLC; PG&E Gas Transmission, Northwest Corporation; 
Notice of Applications

December 11, 2001.
    Take notice that on November 30, 2001, Pacific Gas and Electric 
Company (PG&E), Standard Pacific Gas Line Incorporated (Stanpac), 
GTrans LLC (GTrans), and PG&E Gas Transmission, Northwest Corporation 
(GTN), (collectively referred to as Applicants), filed in Docket Nos. 
CP02-39-000, CP02-40-000, CP02-41-000, and CP02-42-000, pursuant to 
sections 7(b) and 7(c) of the Natural Gas Act (NGA) and parts 157 and 
284 of the Federal Energy Regulatory Commission's (Commission) 
regulations, for a series of authorizations that, taken together, will 
permit them to extend PG&E's existing intrastate natural gas 
transmission system to a new market center located in the State of 
Oregon, near Malin, Oregon, thereby integrating PG&E's transmission and 
storage systems into the interstate pipeline grid and bringing them 
under FERC regulation, all as more fully set forth in the application, 
which is on file with the Commission and open to public inspection. 
This filing may also be viewed on the web at http://www.ferc.gov using 
the ``RIMS'' link, select ``Docket #'' and follow the instructions 
(call 202-208-2222 for assistance).
    Applicants state that currently:
     PG&E is an integrated utility providing retail electric 
and natural gas service to millions of customers in California. As part 
of its utility operations, PG&E owns and operates an extensive 
intrastate natural gas transmission system in northern California which 
is regulated by the Public Utilities Commission of the State of 
California (CPUC) pursuant to the Hinshaw exemption to the Natural Gas 
Act. PG&E recently filed a voluntary petition for bankruptcy on April 
6.
     Stanpac owns a Hinshaw pipeline (the Stanpac Assets) in 
California which is operated by PG&E pursuant to a March 28, 1996 
Stanpac System Management and Operating Agreement (Stanpac System 
Agreement).
     GTN is an interstate pipeline extending from the U.S.-
Canada border, through the states of Idaho, Washington and Oregon, to 
the California-Oregon border where it currently interconnects with 
PG&E's natural gas transmission system.
     GTrans is a newly created entity formed for the purpose of 
owning and operating an interstate natural gas pipeline system that 
will result from the integration of PG&E's gas transmission system with 
an interstate pipeline segment to be acquired from GTN.
    The Applicants seek approval for PG&E's reorganization into an 
interstate pipeline as part of its plan to emerge from bankruptcy. As 
such, the Applicants indicate that their requests for Commission action 
and their acceptance of the requested authorizations are conditioned 
upon bankruptcy court approval. They further submit that formation of 
the new interstate pipeline system will, among other things: (i) create 
a new market center at Malin, Oregon, where GTN, Tuscarora Gas 
Transmission Company (Tuscarora) and GTrans will interconnect at a 
single point, (ii) standardize the terms and conditions for 
transportation of natural gas in northern California with the 
interstate pipeline grid, and (iii) facilitate future pipeline 
expansions within and outside the State of California.
    Applicants propose a limited transition period during which GTrans 
will offer service under rates, terms and conditions that are virtually 
identical to PG&E's existing CPUC-approved rates, terms and conditions, 
including the rates, terms and conditions for open-access 
transportation and storage approved by the CPUC in the Gas Accord 
settlement. Applicants propose that the transition period end on the 
date that FERC accepts a section 4 filing to be made by GTrans no later 
than 14 months after GTrans accepts its requested certificate. In that 
section 4 filing, GTrans will propose to amend its open-access tariff 
to comply with all Commission regulations and policies applicable to 
open-access pipelines. Subject to certain priority rights for service 
to the reorganized PG&E and certain existing customers of PG&E under 
pre-existing, CPUC-authorized long-term contracts, GTrans proposes to 
hold an open season to award capacity to be taken under the rates, 
terms and conditions in the section 4 filing.
    Specifically, the Applicants request that the Commission take the 
following actions:
     Issue a certificate of public convenience and necessity 
authorizing PG&E to acquire from GTN a segment of existing pipeline 
approximately three miles in length beginning at the existing 
interconnection between GTN and PG&E's transmission system, extending

[[Page 65194]]

north across the California-Oregon border and ending at the 
interconnection between GTN and Tuscarora near Malin, Oregon (the 
Oregon Segment) and to integrate it with PG&E's existing gas 
transmission system (the result of this combination being the GTrans 
Assets);
     Issue a certificate of public convenience and necessity 
authorizing GTrans to acquire the GTrans Assets from PG&E
     Issue a blanket certificate under part 284, subpart G of 
the Commission's regulations authorizing GTrans to operate the GTrans 
Assets and the Stanpac Assets as an integrated interstate pipeline 
system and to provide open-access interstate transportation and storage 
services to customers within and outside California, including service 
to the reorganized PG&E
     Issue a certificate of public convenience and necessity 
under Part 157 of the Commission's regulations authorizing GTrans to 
assume and provide service under pre-existing, CPUC-authorized long-
term PG&E transportation contracts with (i) Line 401 expansion 
shippers, (ii) expedited application docket (EAD) customers, (iii) 
enhanced oil recovery (EOR) customers; (iv) Crockett Cogeneration; and 
(v) the Sacramento Municipal Utility District (SMUD);
     Issue a blanket construction certificate to GTrans under 
18 CFR part 157, subpart F;
     Issue a certificate of public convenience and necessity 
under part 157 of the Commission's regulations authorizing Stanpac to 
provide transportation service to Chevron and GTrans pursuant to the 
Stanpac System Agreement;
     Adopt and approve the rates, terms and conditions set 
forth in GTrans' proposed FERC Gas Tariff and the individual rate 
schedules attached in Exhibit P to the Application as initial rates, 
terms and conditions for GTrans service under section 7 of the NGA and 
grant such waivers as are necessary to permit GTrans to offer service 
under such rates, terms and conditions;
     Authorize GTN to abandon the Oregon Segment by sale to 
PG&E
     Authorize PG&E to abandon the GTrans Assets by transfer to 
GTrans;
     Grant Stanpac a waiver of the filing and reporting 
obligations and the open-access requirements ordinarily imposed on 
natural gas companies;
     Grant Stanpac a waiver of the ``shipper-must-have-title'' 
rule to permit GTrans to use Stanpac capacity to transport gas owned by 
GTrans shippers on the Stanpac system under GTrans contracts and 
tariffs;
     Grant GTrans a limited waiver of the ``shipper-must-have-
title'' rule to permit the reorganized PG&E, during the transition 
period, to use GTrans transportation capacity to transport customer-
owned gas for the reorganized PG&E's noncore transportation customers;
     Rescind PG&E's existing limited-jurisdiction certificate 
under Sec. 284.224 of the Commission's regulations;
     Rescind the declarations of exemption under the Hinshaw 
Amendment granted to Stanpac in Docket No. CP86-666-000 and to PG&E in 
Docket No. G-2489;
     Pregrant the abandonment of services under PG&E's existing 
Gas Accord transportation and storage contracts at the end of their 
contract terms and authorize GTrans to provide service under interim 
contracts for the remainder of the transition period, while reserving 
the capacity underlying such interim contracts for award in the open 
season; and
     Waive the requirement that Applicants accept their 
certificates within thirty days and grant such other waivers and other 
and further relief as may be proper and appropriate.
    Any questions regarding this application may be directed to Donald 
K. Dankner, attorney for the Applicants, Winston & Strawn, 1400 L 
Street, NW., Washington, DC 20005, at (202) 371-5700, fax (202) 371-
5950, or E-mail: [email protected].
    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 January 29, 2002 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.
    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.

Linwood A. Watson, Jr.,
Acting Secretary.
[FR Doc. 01-31062 Filed 12-17-01; 8:45 am]
BILLING CODE 6717-01-P