[Federal Register Volume 67, Number 105 (Friday, May 31, 2002)]
[Notices]
[Pages 38092-38093]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-13659]


-----------------------------------------------------------------------

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket Nos. CP02-229-000, CP02-230-000 and CP02-231-000]


SG Resources Mississippi, L.L.C.; Notice of Application

May 24, 2002.
    Take notice that on May 17, 2002, SG Resources Mississippi L.L.C. 
(SGRM), 7500 San Felipe, Suite #600, Houston, Texas 77063 filed in 
Docket Nos. CP02-229-000, CP02-230-000 and CP02-231-000 an application 
pursuant to Section 7(c) of the Natural Gas Act and Parts 284 and 157 
of the Commission's Regulations for a certificate of public convenience 
and necessity to construct, own and operate a natural gas storage 
facility subject to the jurisdiction of the Commission, to provide 
open-access firm and interruptible storage services and to engage in 
certain routine activities, 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).
    Specifically, SGRM seeks (1) a certificate of public convenience 
and necessity that would authorize SGRM to construct, own, operate and 
maintain a high-deliverability salt-dome gas storage facility that will 
accommodate the injection, storage and subsequent withdrawal of natural 
gas for redelivery in interstate commerce; (2) a blanket certificate 
pursuant to Subpart G of Part 284 that will permit SGRM to provide 
open-access firm and interruptible natural gas storage services on 
behalf of others in interstate commerce with pre-granted abandonment of 
such services; (3) a blanket certificate pursuant to Subpart F of Part 
157 that will permit SGRM to construct, acquire, operate, rearrange and 
abandon certain facilities following construction of the proposed 
project; (4) authorization to provide the proposed storage services at 
market-based rates; and (5) approval of a pro forma FERC Gas Tariff, 
pursuant to which SGRM will provide open access natural gas storage 
services in interstate commerce consistent with Order Nos. 636 and 637. 
SGRM also requests that the Commission waive the requirements of (i) 
Sections 157.6(b)(8) and 157.14(a), (13), (14), (16) and (17) which 
relate to the filing of information required to justify rates on a 
cost-of-service basis, given that SGRM proposes to charge market-based 
rates for the services it will provide; (ii) Section 157.14 (a)(10) 
which requires a showing regarding accessible gas supplies that is not 
applicable to a storage project to which third parties will deliver 
their gas; (iii) Section 260.2 and Part 201 which are accounting and 
reporting requirements appropriate for cost-of-service rate structure; 
and (iv) Sections 284.7(e) and 284.10 which impose requirements 
relating to the design of rates that are not applicable to market-based 
rates.
    SGRM states that it is a new company which seeks authorization to 
construct and operate the proposed storage facility to accommodate the 
injection, storage and subsequent withdrawal of natural gas for 
redelivery in interstate commerce. SGRM maintains that the Southern 
Pines Energy Center Project would help support service to growing peak 
winter heating and summer cooling loads in the U.S. Southeast and Mid-
Atlantic regions, increase the reliability of natural gas supply during 
periods of production and transportation interruptions, enhance the 
interstate pipeline grid's ability to serve new gas-fired electric 
generation, and facilitate the continued growth of local distribution 
companies serving Southeast and Mid-Atlantic energy markets. SGRM 
states that the proposed project will provide approximately 12.0 Bcf of 
working gas storage capacity in two salt caverns, with 1.2 Bcf per day 
of maximum deliverability and up to 0.6 Bcf per day of injection 
capabilities. SGRM states that the caverns will be created in a domal 
salt structure, known as the Byrd Dome, in Greene County, Mississippi. 
SGRM states that the project will include a Gas Handling Facility 
designed to utilize four gas engine-driven compressors of 8,000 hp 
each. It is stated that an interconnecting pipeline, consisting of two 
24-inch pipelines approximately 3.13 miles long, will be constructed 
from the Gas Handling Facility to a point of connection with the 
facilities of Destin Pipeline Company, L.L.C. Further, SGRM states that 
the infrastructure required to support cavern development will include 
water supply and brine disposal wells, associated pumping and piping 
systems and non-jurisdictional temporary gas-fired electric generation 
facilities.
    SGRM asserts that in a recently concluded open season, SGRM 
received requests for service for more than 34 Bcf of capacity. SGRM 
states that of that total amount, SGRM has determined that requests for 
more than 16 Bcf of capacity are viable. It is stated that SGRM is 
currently discussing binding commitments with the requesting

[[Page 38093]]

parties, and has executed a binding precedent agreement with one such 
party for firm storage service making use of 3 Bcf of the project's 
capacity for a primary term of ten years.
    SGRM states that it is proposing to provide open-access firm and 
interruptible storage services to its customers, and is requesting 
authorization to charge market-based rates for such services. SGRM 
states that its market power study demonstrates that SGRM will not have 
market power in any relevant market.
    Questions regarding the details of this proposed project should be 
directed to Jack W. Gatewood, Anthony J. Clark or Xavier Allemandou at 
SG Resources Mississippi, L.L.C., 7500 Felipe, Suite #600, Houston, 
Texas 77063 at (713) 914-8188 (phone), (713) 914-8189 (fax), 
[email protected] or James F. Bowe, Jr., Dewey Ballantine LLP, 1775 
Pennsylvania Avenue, NW., Washington, DC 20006-4605, (202) 429-1444 
(phone), (202) 429-1579 (fax), [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 June 14, 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.
    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.

Magalie R. Salas,
Secretary.
[FR Doc. 02-13659 Filed 5-30-02; 8:45 am]
BILLING CODE 6717-01-P