[Federal Register Volume 67, Number 244 (Thursday, December 19, 2002)]
[Notices]
[Page 77758]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-32014]


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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. OR03-2-000]


Caesar Oil Pipeline Company, LLC; Notice of Petition for 
Declaratory Order

December 13, 2002.
    Take notice that on December 6, 2002, Caesar Oil Pipeline Company, 
LLC (Caesar Company) filed in Docket No. OR03-2-000, a petition for 
declaratory order, pursuant to Rule 207(a)(2) of the Commission's Rules 
of Practice and Procedure, 18 CFR 385.207(a)(2). Caesar Company 
requests that the Commission issue an expedited decision on this 
Petition no later than the end of March 2003.
    Caesar Company states that it is planning to construct the Caesar 
oil pipeline system (Caesar System), a major crude oil pipeline 
designed to transport the maximum volume of oil that is technologically 
feasible with existing equipment, which will provide transportation for 
the Green Canyon area of the deepwater Gulf of Mexico to a receiving 
facility at Ship Shoal 332 in the Outer Continental Shelf. In addition 
to serving the Green Canyon area, the Caesar System will also be 
available to provide transportation service to the Walker Ridge and 
Atwater Valley areas of the deepwater Gulf of Mexico. The Caesar System 
is anticipated to commence service in 2004, and will serve areas of the 
deepwater Gulf of Mexico that at this time have little or no available 
transportation capacity on existing oil pipelines.
    Caesar Company states that the Caesar System will be subject to the 
nondiscrimination provisions of the Outer Continental Shelf Lands Act 
(the OCSLA), and Caesar Company seeks the requested declaratory order 
to ensure that the Caesar System will not be subject to common-carrier 
type pro rata allocation, but will rather be authorized to function as 
a contract carrier, hold an open season, enter into long-term 
transportation contracts reflecting contract carriage principles, give 
those contracts precedence in allocating capacity, and contract for 
capacity that remains available after the open season closes on a 
first-come, first-served basis. Caesar Company maintains that the 
potential of pro rata allocation will likely discourage production 
development in the Green Canyon, Walker Ridge and Atwater Valley areas, 
and commitment on the Caesar System by prospective subscribers to 
capacity, thereby increasing the risk of both the Caesar System and 
shippers using it.
    Accordingly, Caesar Company seeks the following by the end of 
February 2003:

    A Commission declaration that that the Caesar System will be 
authorized to function as a contract carrier, hold an open season, 
enter into long-term transportation contracts reflecting contract 
carriage principles, give those contracts precedence in allocating 
capacity, and contract for capacity that remains available after the 
open season closes on a first-come, first-served basis.

    Caesar Company requests that the Commission issue the requested 
declaratory order by the end of March 2003, because (1) as part of 
their planning for initial production when the Caesar System goes 
online in 2004 (as currently scheduled), Caesar Company and the 
shippers to be served by the Caesar System at start-up would like to 
execute transportation agreements incorporating contract carriage 
principles and be confident that those agreements are mutually binding 
and enforceable--lack of resolution that the Caesar System can operate 
on a contract carriage basis makes this impossible; and (2) in order 
for the Caesar System to be fully utilized, Caesar Company must obtain 
future transportation commitments from current and prospective 
producers that are currently assessing whether they should pursue 
development of oil field production opportunities in the Green Canyon, 
Walker Ridge, and Atwater Valley areas, whether the Caesar System will 
be able to meet their requirements for transportation of production, 
and whether they must construct their own isolated pipelines to service 
their production fields.
    Any person desiring to be heard or to protest said filing should 
file a motion to intervene or a protest with the Federal Energy 
Regulatory Commission, 888 First Street, NE., Washington, DC 20426, in 
accordance with sections 385.214 or 385.211 of the Commission's Rules 
and Regulations. All such motions or protests must be filed on or 
before January 10, 2003. Protests will be considered by the Commission 
in determining the appropriate action to be taken, but will not serve 
to make protestants parties to the proceedings. Any person wishing to 
become a party must file a motion to intervene. This filing is 
available for review at the Commission in the Public Reference Room or 
may be viewed on the Commission's Web site at http://www.ferc.gov using 
the ``FERRIS'' link. Enter the docket number excluding the last three 
digits in the docket number field to access the document. For 
Assistance, please contact FERC Online Support at 
[email protected] or toll-free at (866) 208-3676, or TTY, 
contact (202) 502-8659. Comments, protests and interventions may be 
filed electronically via the Internet in lieu of paper. The Commission 
strongly encourages electronic filings. See 18 CFR 385.2001(a)(1)(iii) 
and the instructions on the Commission's web site under the ``e-
Filing'' link.

Linwood A. Watson, Jr.,
Deputy Secretary.
[FR Doc. 02-32014 Filed 12-18-02; 8:45 am]
BILLING CODE 6717-01-P