[Federal Register Volume 67, Number 127 (Tuesday, July 2, 2002)]
[Notices]
[Pages 44436-44437]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-16608]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket Nos. CP02-374-000, CP02-376-000, CP02-377-000, and CP02-378-
000]


Hackberry LNG Terminal, L.L.C.; Notice of Application

June 26, 2002.
    Take notice that on May 30, 2002; [as revised on June 24, 2002], 
Hackberry LNG Terminal, L.L.C. (Hackberry LNG), 1000 Louisiana, Suite 
5800, Houston, Texas 77002, filed an application seeking authorization 
to site, construct and operate a liquefied natural gas (LNG) terminal 
located at Hackberry, Louisiana, and a new 35 mile natural gas pipeline 
in Cameron, Calcasieu, and Beauregard Parishes, Louisiana. The purpose 
of the LNG terminal is to provide open access LNG tanker services to 
shippers importing LNG. Hackberry LNG is requesting authorization to 
offer open access terminalling services at market-based rates; open 
access transportation service on the proposed pipeline will be 
separately charged, and calculated on a cost-of-service basis.
    The application is 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). Any initial 
questions regarding the application should be directed to Sarah 
Tomalty, Dynegy Inc., 1500 K Street, NW., Suite 400, Washington DC 
20005, Phone: (202) 216-1123.
    Hackberry LNG made the request to site, construct and operate the 
LNG terminal pursuant to section 3(a) of the Natural Gas Act and part 
153 of the Commission's regulations (Docket No. CP02-378-000); and 
section 7(c) of the NGA and part 157, subpart A of the Commission's 
Regulations (Docket No.CP02-374-000). Hackberry LNG also requests 
approval of the Hackberry LNG terminal as the place of entry for the 
imported LNG supplies under section 3(a) of the Natural Gas Act and 
part 153 of the Commission's regulations (Docket No.CP02-378-000). 
Hackberry LNG also requested authorization in Docket No.CP02-376-000 to 
provide the LNG terminalling services on a firm and interruptible basis 
pursuant to Section 7(c) of the NGA and Part 284 of the Commission's 
Regulations. In addition, Hackberry LNG seeks authorization, pursuant 
to section 7(c) of the NGA and part 157, subpart A of the Commission's 
Regulations, to construct and operate a 35 mile pipeline and related 
facilities to transport natural gas on an open access basis under Part 
284. Finally, in Docket No. CP02-377-000, Hackberry LNG requests a 
blanket certificate under section 7(c) of the NGA and part 157, subpart 
F of the Commission's regulations to perform routine activities in 
connection with the future construction, operation and maintenance of 
the proposed 35 mile pipeline.
    Hackberry LNG says that following the conclusion of an 85-day open 
season, it executed a binding precedent agreement with Dynegy Marketing 
and Trade (Dynegy Marketing) for all of the available firm LNG 
terminalling capacity. The total available delivery capacity offered by 
Hackberry LNG in its open season was 1,500,000 Dth per day, and Dynegy 
Marketing was awarded the entire available delivery quantity because 
Dynegy Marketing submitted the highest net present value bid. Hackberry 
LNG says that Dynegy Marketing will contract for and pay a monthly 
reservation fee based upon its Maximum Daily Delivery Quantity (MDDQ) 
of 1,500,000 Dth per day. Hackberry LNG says that shippers are 
allocated LNG storage capacity based on fixed ratio of storage capacity 
to contracted MDDQ. The LNG storage capacity is proposed to be 
1,006,000 barrels or 10.4 Bcf.
    Hackberry LNG proposes to offer open-access, non-discriminatory LNG 
terminalling services, which would include the receipt of imported LNG 
from ocean-going tankers, and the storage and vaporization of the LNG. 
Hackberry LNG will also provide pipeline transportation of vaporized 
LNG from the tailgate of the LNG terminal to the pipeline grid through 
a proposed pipeline. Dynegy Marketing will be allocated 1,500,000 Dth 
per day of transportation capacity in the new pipeline. The new 35 mile 
pipeline is proposed to be interconnected with the facilities of 
Transcontinental Gas Pipe Line and will cross several other pipelines 
which could become interconnected.
    In order to provide the LNG terminalling and pipeline 
transportation services, Hackberry LNG requests Commission 
authorization to construct, install, and operate the following 
facilities :

--An LNG unloading slip with two berths, each equipped with three 
liquid unloading arms and one vapor return/delivery arm;
--Three LNG storage tanks each with a usable volume of 160,000 cubic 
meters (1,006,000 barrels);
--Nine in-tank pumps, each sized for 250,000 Mcf/d;
--Ten second stage pumps, each sized for 188,000 Mcf/d;
--Twelve submerged combustion vaporizers, each sized at 150,000 Mcf/d;
--A boil-off gas compressor and condensing system;
--An LNG circulation system to maintain the facilities at the 
appropriate temperature when LNG tankers are not being unloaded;
--An natural gas liquids recovery unit;
--Utilities, buildings and service facilities; and
--A 35.4-mile, 36-inch-diameter natural gas send out pipeline.

    Hackberry LNG's filing includes a pro forma copy of the FERC Gas 
Tariff under which Hackberry LNG proposes to provide firm and 
interruptible LNG terminalling services on an open access basis under 
Rate Schedules LNG-1 and LNG-2, and firm and interruptible 
transportation services under Rate Schedules FTS and ITS. Hackberry LNG 
has requested waiver of certain nomination/confirmation/scheduling 
provisions contained in the GISB/NAESB standards due to the unique 
nature of scheduling receipt if ocean-going LNG tankers.
    Hackberry LNG has requested approval of market based rates for its 
LNG terminalling services and has requested waiver of the requirements 
to disclose the capital and operating costs of the LNG terminal. To 
support its request for market based rates, Hackberry LNG has proved a 
study in Exhibit Z of its application which concludes that Hackberry 
LNG meets the criteria for market based rates set forth in Commission's 
1996 Policy Statement on this topic. However, Hackberry LNG has 
estimated the capital cost of the new 35 mile pipeline to be about $ 
74.5 million and an annual cost-of-service for the new pipeline to be $ 
12.7 million. The proposed firm transportation reservation rate for the 
new pipeline is $ 0.7087.
    Hackberry LNG requests that the Commission issue a preliminary 
determination on all non-environmental matters, including Hackberry 
LNG's request for market-based rate authority for the pricing of 
terminalling services

[[Page 44437]]

and the proposed tariff, by October, 2002, and a final order granting 
the requested authorizations by August 15, 2003. Hackberry LNG says 
that this proposed schedule will enable it to commence LNG import 
terminalling services by November, 2006.
    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 July 19, 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.

Linwood A. Watson, Jr.,
Deputy Secretary.
[FR Doc. 02-16608 Filed 7-1-02; 8:45 am]
BILLING CODE 6717-01-P