[Federal Register Volume 62, Number 249 (Tuesday, December 30, 1997)]
[Notices]
[Pages 67853-67854]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-33833]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket Nos. CP98-131-000, CP98-133-000, CP98-134-000, and CP98-135-
000]


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

December 22, 1997.
    Take notice that on December 15, 1997, Vector Pipeline L.P. 
(Vector), 2900 421-7th Avenue SW, Calgary, Alberta, Canada T2P 4K9, 
filed applications pursuant to Sections 3 and 7(c) of the Natural Gas 
Act (NGA). In Docket No. CP98-131-000, Vector seeks a Presidential 
Permit and Section 3 authorization pursuant to Part 153 of the 
Commission's Regulations. In Docket No. CP98-133-000, Vector 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. In Docket No. CP98-134-000, Vector seeks 
a blanket certificate pursuant to 18 CFR Part 284, Subpart G of the 
Commission's Regulations for self-implementing transportation 
authority. Finally, in Docket No. CP98-135-000, Vector seeks a blanket 
certificate for certain blanket construction and operation 
authorization under 18 CFR Part 157, Subpart F of the Commission's 
Regulations. Vector's proposal is more fully set forth in the 
applications which are on file with the Commission and open to public 
inspection.
    Vector is a limited partnership organized under the laws of the 
State of Delaware. The managing general partner is Vector Pipeline Inc. 
At present, the only limited partner of Vector is IPL Vector (USA). 
Vector states that other entities are considering joining the 
partnership and that vector will supplement its application if this 
occurs.

[[Page 67854]]

    In Docket No. CP98-133-000, Vector proposes to construct and 
operate 269.6 miles of 42-inch pipeline and lease and operate 58.8 
miles of 36-inch pipeline.\1\ The system will extend from Joliet, 
Illinois to the U.S.-Canada border near St. Clair, Michigan. In 
addition, Vector proposes to construct and operate two 30,000 
horsepower compressor stations, five meter/regulating stations, and 
other appurtenant facilities. Vector states that the estimated cost of 
the proposed facilities is $447 million (including AFUDC and line pack) 
and will be project financed. Vector states that the capacity of the 
proposed pipeline is 1.01 MMDth per day. Vector states that it has 
conducted an open season and has a significant portion of the proposed 
pipeline's capacity subscribed. Even though Vector has filed under the 
optional certificate procedures of 18 CFR Part 157, Subpart E, Vector 
states that it will file voluntarily a summary of the market results, 
when available.
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    \1\ Vector is contracting with Michigan Consolidated Gas Company 
(MichCon) to lease the Belle River Pipeline that runs between 
Milford and Belle River Mills, Michigan. The lease is for an initial 
twenty year term, subject to five year renewals and/or an option for 
Vector to purchase the line if MichCon elects to cancel the lease. 
MichCon will operate the Belle River Pipeline at the direction of 
Vector pursuant to the terms of an operating agreement and the rules 
and regulations of the Commission.
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    Vector proposes to provide firm and interruptible service under 
Rate Schedules FT-1 and IT-1, respectively. Vector states that it has 
offered both negotiated and recourse rates during the open season. 
Vector states that it offered a negotiated rate structure in which 
rates would be set by the formula and under which shippers would agree 
to not contest certain elements of the cost of service and Vector would 
agree to not change those elements for the length of the primary term 
and any extension under firm service agreements. In addition, Vector 
states that the negotiated rate under ten-year agreements will be 15 
percent higher than the rate under fifteen-year agreements. The firm 
negotiated rate, under a fifteen-year agreement and stated on a 100 
percent load factor basis, is estimated to be $0.221 per Dth. In 
addition, Vector intends to cap this rate over the initial fifteen-year 
term at $0.237 per Dth.
    Vector's proposed recourse rates utilize different cost-of-service 
components and would allow shippers to take any position with regard to 
the appropriate cost of service and level of recourse rates. The firm 
recourse rate in the first year of service, stated on a 100 percent 
load factor basis, is estimated to be $0.313 per Dth. Both the firm 
negotiated rate and the firm recourse rate are designed using the 
straight fixed-variable methodology and a total capacity of 1.01 MMDth 
per day. Vector states that the interruptible rate has been derived 
using the 100 percent load factor-equivalent firm transportation rate.
    Vector has included a pro forma FERC Gas Tariff which, Vector 
asserts, complies with the Commission's policies established in Order 
Nos. 636, et seq. Vector states that it has made every effort to 
conform its pro forma tariff to the currently applicable GISB 
standards. Vector does request a waiver of section 154.109(c) of the 
Commission's regulations so that it may omit the statement of discount 
policy from its tariff. Vector states that this discount policy has no 
applicability to Vector.
    Vector also is seeking NGA Section 3 authority and a Presidential 
Permit to construct, own, operate, and maintain approximately 3100 feet 
of 42-inch pipeline located under the riverbed of the St. Clair River 
at the U.S.-Canada boundary. Vector will connect with Vector Pipeline 
Limited partnership, its Canadian affiliate, at the boundary.
    Vector requests a preliminary determination on non-environmental 
issues by June 1998, and final certificate authorization by January 
1999. Vector states that this will allow construction to be completed 
by its proposed in-service date of November 1, 1999.
    Any person desiring to be heard or making any protest with 
reference to said application should on or before January 12, 1998, 
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 be 
taken 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 participate 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 does not have to intervene in order to have 
comments on any aspect of the proposal considered by the Commission. 
Instead, a person 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 other 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 advise, 
it will be unnecessary for Vector to appear or be represented at the 
hearing.
Lois D. Cashell,
Secretary.
[FR Doc. 97-33833 Filed 12-29-97; 8:45 am]
BILLING CODE 6717-01-M