[Federal Register Volume 67, Number 244 (Thursday, December 19, 2002)]
[Notices]
[Pages 77762-77763]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-32015]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. OR03-3-000]


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

December 13, 2002.
    Take notice that on December 6, 2002, Proteus Oil Pipeline Company, 
LLC (Proteus Company) filed in Docket No. OR03-3-000 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).
    Proteus Company requests that the Commission issue an expedited 
decision on this Petition no later than the end of March 2003. Proteus 
Company states that it is planning to construct the Proteus oil 
pipeline system (Proteus 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 
Mississippi Canyon and Atwater Valley areas of the deepwater Gulf of 
Mexico to a receiving facility at South Pass Block 89 in the Outer 
Continental Shelf. The Proteus System is anticipated to commence

[[Page 77763]]

service in 2005, 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.
    Proteus Company states that the Proteus System will be subject to 
the nondiscrimination provisions of the Outer Continental Shelf Lands 
Act (``the OCSLA), and Proteus Company seeks the requested declaratory 
order to ensure that the Proteus 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. Proteus Company maintains that the 
potential of pro rata allocation will likely discourage production 
development in the Mississippi Canyon and Atwater Valley areas, and 
commitment on the Proteus System by prospective subscribers to 
capacity, thereby increasing the risk of both the Proteus System and 
shippers using it.
    Accordingly, Proteus Company seeks the following by the end of 
February 2003:

    A Commission declaration that that the Proteus 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.

    Proteus 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 Proteus System goes 
online in 2005 (as currently scheduled), Proteus Company and the 
shippers to be served by the Proteus 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 Proteus System can operate 
on a contract carriage basis makes this impossible; and (2) in order 
for the Proteus System to be fully utilized, Proteus 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 Mississippi 
Canyon and Atwater Valley areas, whether the Proteus 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. 02-32015 Filed 12-18-02; 8:45 am]
BILLING CODE 6717-01-P