[Federal Register Volume 62, Number 208 (Tuesday, October 28, 1997)]
[Notices]
[Pages 55796-55798]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-28455]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket Nos. CP98-29-000, CP98-30-000, CP98-31-000, and CP98-32-000]


North Atlantic Pipeline Partners, L.P.; Notice of Applications 
for Certificates of Public Convenience and Necessity, and for a 
Presidential Permit and Section 3 Authorization

October 22, 1997.
    Take notice that on October 15, 1997, North Atlantic Pipeline 
Partners, L.P. (North Atlantic), 7500 Texas Commerce Tower, 600 Travis, 
Houston, Texas 77002, filed applications pursuant to Sections 3 and 
7(c) of the Natural Gas Act (NGA). In Docket No. CP98-29-000, North 
Atlantic seeks a Presidential Permit and Section 3 authorization 
pursuant to Part 153 of the Commission's Regulations. In Docket No. 
CP98-30-000, North Atlantic seeks a Certificate of Public Convenience 
And Necessity to construct and operate natural gas pipeline facilities 
under Part 157, Subpart E of the Commission's Regulations.\1\ In Docket 
No. CP98-31-000, North Atlantic seeks a Certificate of Public 
Convenience And Necessity for the transportation of natural gas under 
Part 284, Subpart G of the Commission's Reglations. Finally, in Docket 
No. CP98-32-000, North Atlantic seeks a Certificate of Public 
Convenience And Necessity for certain blanket construction and 
operation authorization under Part 157, Subpart F of the Commission's 
Regulations. North Atlantic's proposal is more fully set forth in the 
applications which are on file with the Commission and open to public 
inspection.
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    \1\ These are the Commission's Optional Certificate procedures. 
In the alternative, North Atlantic seeks the same natural gas 
facilities construction and operation certificate under Part 157, 
Subpart A of the Commission's Regulations. North Atlantic filed 
executed Letters of Interests with 6 shippers for 269,000 MMBtu per 
day of capacity.
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    North Atlantic is a limited partnership formed under the laws of 
the State of Delaware. North Atlantic's general partner is North 
Atlantic Pipeline Company, L.L.C., a Delaware limited liability 
company, and North Atlantic's limited partner is Tatham Offshore, Inc. 
North Atlantic anticipates admitting additional limited partners.
    In Docket No. CP98-30-000, North Atlantic wants authority to 
construct, own, operate and maintain about 190 miles of 42-inch 
diameter pipeline under Section 7(c) of the NGA and the Commission's 
optional certificate procedure under Part 157, Subpart E of the 
Commission's Regulations. The pipeline will extend from the United 
States-Canada International Boundary in the Gulf of Maine to a proposed 
point of interconnection in East Kingston, New Hampshire with the Joint 
Pipeline currently authorized to be owned by Maritimes & Northeast 
Pipeline, L.L.C. and Portland Natural Gas Tranmission System. About 179 
miles of the pipeline will be offshore and about 11 miles will be 
onshore. The total estimated cost of the United States portion of the 
project is $472 million. (The Canadian portion of the project will 
initially go from Country Harbor, Nova Scotia to the United States-
Canadian Boundary.)
    North Atlantic says the initial design capacity of the pipeline is 
590,000 Mcf per day or 615,370 dekatherms per day, which is currently 
limited due to pressure limitations on interconnecting upstream and 
downstream facilities; but ultimately, as upstream offshore Atlantic 
Canada gas fields are further developed, North Atlantic's facilities 
will have the capacity to deliver up to 2,200,000 Mcf of natural gas 
per day on a firm basis. North Atlantic says that its project will meet 
a growing demand for

[[Page 55797]]

natural gas in the northeastern United States and will provide an 
environmentally-sound means of assessing the significant reserves of 
natural gas in offshore Atlantic Canada.
    North Atlantic seeks approval of its initial rates and pro forma 
tariff provisions. North Atlantic proposes to offer a single rate 
schedule for firm transportation service, Rate Schedule FT-1, and to 
have the authority to negotiate, on a non-discriminatory basis, with 
shippers to charge rates for firm service that deviate from the FT-1 
maximum rate of $12.2761, which is a cost-of-service based rate, 
designed under the straight-fixed variable (SFV) method and based on 
the design capacity of the pipeline. Rates for authorized overrun and 
unauthorized overrun service are also stated in North Atlantic's pro 
forma tariff.
    North Atlantic has used a capital structure of 50 percent debt, 50 
percent equity, an after-tax rate of return on equity of 13.25 percent 
and cost of debt of 7.5 percent. The initial overall after-tax rate of 
return under this methodology us 10.38 percent. North Atlantic has also 
designed its maximum cost-of-service FT-1 rate based on a 25-year plant 
life using straight-line depreciation.
    In additional to the firm rate schedules described above, North 
Atlantic will offer interruptible service under Rate Schedule IT-1 at a 
rate of 40.36 cents per dekatherm, which is the 100 percent load factor 
equivalent of the maximum FT-1 rate. North Atlantic has allocated $1 
million to its IT-1 service and, therefore, North Atlantic proposes to 
retain its Rate Schedule IT-1 revenues.
    North Atlantic also proposes to negotiate, on a non-discriminatory 
basis, rates that differ from North Atlantic's generally applicable 
rate schedules. North Atlantic's negotiated rates may be less than, 
equal to, or greater than its cost-based maximum rates and may also be 
designed on a basis other than SFV. Pursuant to the Commission's 
Alternative Ratemaking Policy Statement, shippers unable to negotiate a 
satisfactory agreement are provided an option to elect the recourse 
rate, the maximum rate described above.
    North Atlantic offers to cap the firm service rate for a long-term 
commitment made through the close of its open season. North Atlantic 
intends to negotiate with interested shippers on a non-discriminatory 
basis to develop agreements pursuant to which rates will automatically 
decrease as throughput increases over time, as an inducement to the 
efficient development of the vast resources to be accessed by North 
Atlantic.
    North Atlantic's pro forma Tariff also includes the General Terms 
and Conditions (GT&C) for all transportation services, designed to meet 
the applicable requirements of Order No. 636, as well as standards 
recommended by the Gas Industry Standards Board and accepted by the 
Commission. North Atlantic's GT&C also include a lateral construction 
policy which it says is consistent with the Commission's Pricing Policy 
For New And Existing Facilities Constructed By Interstate Natural Gas 
Pipelines.
    In addition, in Docket No. CP98-29-000, North Atlantic seeks 
authority to construct, own, operate and maintain 250 feet of 42-inch 
diameter pipeline at the United States-Canadian Boundary under Section 
3 of the NGA and Executive Order No. 10485. At the Boundary, the 
pipeline will connect with North Atlantic's upstream Canadian 
affiliate. North Atlantic also seeks Blanket Certificates under Section 
7(c) of the NGA pursuant to Part 284, Supart G and Part 157, Supbart 
F., in Docket Nos. CP98-31-000 and CP98-32-000, respectively, to 
transport natural gas for others, and perform certain routine 
construction functions.
    Finally, North Atlantic requests a preliminary determination with 
respect to non-environmental issue by March 1, 1998, and a final 
certificate by December 1, 1998. North Atlantic has a November 1, 1999, 
target date for being in service.
    Any person desiring to be heard or making any protest with 
reference to said application should on or before November 12, 1997, 
file with the Federal Energy Regulatory Commission, 888 First Street, 
NE, Washington, D.C. 20426, a motion to intervene or a protest 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 
Natural Gas Act (18 CFR 157.10). All protests filed with the Commission 
will be considered by it in determining the appropriate action to take 
but will not serve to make the protestants parties to the proceeding. 
The Commission's rules require that protestors provide copies of their 
protests to the party or person to whom the protests are directed. Any 
person wishing to become a party to a proceeding or to participating as 
a party in any hearing therein must file a motion to intervene in 
accordance with the Commission's Rules.
    A person obtaining intervenor status will be placed on the service 
list maintained by the Secretary of the Commission and will receive 
copies of all documents issued by the Commission, filed by the 
applicant, or filed by all other intervenors. An intervenor can file 
for rehearing of any Commission order and can petition for court review 
of any such order. However, an intervenor must serve copies of comments 
or any other filing it makes with the Commission to every other 
intervenor in the proceeding, as well as filing an original and 14 
copies with the Commission.
    However, a person, company or organization does not have to 
intervene in order to have comments on any aspect of the proposal 
considered by the Commission. Instead, such entity may submit two 
copies of such comments to the Secretary of the Commission. Commenters 
who are concerned about environmental or pipeline routing issues will 
be placed on the Commission's environmental mailing list, will receive 
copies of environmental documents and will be able to participate in 
meetings associated with the Commission's environmental review process. 
Commenters will not be required to serve copies of filed documents on 
all other parties. However, commenters will not receive copies of all 
documents filed by the parties or issued by the Commission, and will 
not have the right to seek rehearing or appeal the Commission's final 
order to a Federal court.
    The Commission will consider all comments and concerns equally, 
whether filed by commenters or those requesting intervenor status.
    Take further notice that, pursuant to the authority contained in 
and subject to the jurisdiction conferred upon the Federal Energy 
Regulatory Commission by Sections 3, 7 and 15 of the NGA and the 
Commission's Rules of Practice and Procedure, a hearing will be held 
without further notice before the Commission or its designee on these 
applications if no motion to intervene is filed within the time 
required herein, if the Commission on its own review of the matter 
finds that a grant of the certificate is required by the public 
convenience and necessity. If a motion for leave to intervene is timely 
filed, or if the Commission on its own motion believes that a formal 
hearing is required, further notice of such hearing will be duly given.
    Under the procedure herein provided for, unless otherwise advised, 
it will be

[[Page 55798]]

unnecessary for North Atlantic to appear or be represented at the 
hearing.
Lois D. Cashell,
Secretary.
[FR Doc. 97-28455 Filed 10-27-97; 8:45 am]
BILLING CODE 6717-01-M