Federal Register / Vol. 62, No. 239 / Friday, December 12, 1997 / Notices 65421

For additional information, please contact

Irene E. Szopo at (202) 208–1602 or Donald

Williams at (202) 208–0743.

Linwood A. Watson, Jr.,

Acting Secretary.

[FR Doc. 97–32504 Filed 12–11–97; 8:45 am]

BILLING CODE 6717–01–M

DEPARTMENT OF ENERGY

Federal Energy Regulatory

Commission

[Docket No. PR98–2–000]

Magnolia Pipeline Corporation; Notice

of Petition for Rate Approval

December 8, 1997.

Take notice that on November 21,

1997, Magnolia Pipeline Corporation

(Magnolia), filed a petition for rate

approval, pursuant to Section 311 of the

Natural Gas Act, Section 284.123(b)(2)

of the Commission’s Regulations, and

the Commission’s March 31, 1995 letter

order in Docket No. PR95–1–000,

requesting that the Commission approve

the continued use of Magnolia’s current

maximum rate of $0.1621 per Dth, plus

reimbursement of actual fuel use up to

three percent for Section 311

transportation services performed on

Magnolia’s system.

Magnolia states that it is an intrastate

pipeline within the meaning of Section

2(16) of the NGPA and it owns and

operates pipeline facilities within the

State of Alabama. Magnolia states that

its current maximum transportation unit

rate is based on a levelized cost of

service. Magnolia states that even if it

were able to collect its current

maximum rate, Magnolia would not

recover its total cost of service. Thus

Magnolia only seeks approval to

continue to be able to charge up to its

existing approved maximum rates.

Magnolia proposes an effective date on

and after November 22, 1997.

Pursuant to Section 284.123(b)(2)(ii),

if the Commission does not act within

150 days of the filing date, the rate will

be deemed to be fair and equitable and

not in excess of an amount which

interstate pipelines would be permitted

to charge for similar transportation

service. The Commission may, prior to

the expiration of the 150-day period,

extend the time for action or institute a

proceeding to afford parties an

opportunity for written comments and

for the oral presentation of views, data,

and arguments.

Any person desiring to participate in

this rate proceeding must file a motion

to intervene in accordance with

Sections 385.211 and 385.214 of the

Commission’s Rules of Practice and

Procedures. All motions must be filed

with the Secretary of the Commission

on or before December 23, 1997. The

petition for rate approval is on file with

the Commission and is available for

public inspection.

Linwood A. Watson, Jr.,

Acting Secretary.

[FR Doc. 97–32502 Filed 12–11–97; 8:45 am]

BILLING CODE 6717–01–M

DEPARTMENT OF ENERGY

Federal Energy Regulatory

Commission

[Docket No. RP98–83–000]

Texas Eastern Transmission

Corporation; Notice of Petition for

Declaratory Order

December 8, 1997.

Take notice that on December 3, 1997,

Texas Eastern Transmission Corporation

(Texas Eastern) tendered for filing a

petition under Rule 207 of the

Commission’s Rules of Practice and

Procedure (18 CFR 385.207) requesting

that the Commission determine whether

Public Service Electric and Gas

Company (Public Service) is permitted

to employ the Commission’s capacity

release regulations to abrogate its longterm contractual obligations to Texas

Eastern by assigning those contracts to

a wholly-owned, shell subsidiary where

the assignment is for the express

purpose of avoiding Public Service’s

contractual obligations.

Texas Eastern states that Public

Service recently filed a plan with the

New Jersey Board of Public Utilities

under which Public Service proposes to

set up a new shell subsidiary with no

assets and then to permanently assign

all of its contracts with Texas Eastern to

that subsidiary. Public Service will

continue to control all of the activities

of its new subsidiary and Public Service

employees will perform all of the

activities of its subsidiary. Texas Eastern

quotes Public Service as having stated

that the purpose of the new subsidiary

is to ‘‘reduce the potential fixed cost

responsibility’’ of Public Service under

the contracts. Texas Eastern submits

that Public Service has no contractual

right to terminate its obligations to

Texas Eastern by assigning them to a

shell subsidiary.

Texas Eastern states that Public

Service’s plan is based entirely upon

Public Service’s interpretation of the

Commission’s capacity release

regulations, which Public Service

alleges limit its obligations to three

months worth of demand charges.

Texas Eastern contends that the

capacity release by Public Service is a

sham transaction to abrogate its Texas

Eastern contracts, which still have a

total aggregate revenue stream in excess

of $750 million during their remaining

primary term. Texas Eastern argues that

Public Service’s plan will have serious

consequences, both of Texas and for the

interstate pipeline industry. Texas

Eastern alleges that, if Public Service is

allowed to avoid its existing obligations,

other shippers who find a contract

burdensome will assign that contract to

an under-capitalized subsidiary and

allow the subsidiary to default on the

contract.

Texas Eastern states that it is not

attempting to preclude Public Service

form assigning its contracts to the new

subsidiary. Texas Eastern says that it is

only seeking to assure that Public

Service will not be released from

liability as a consequence of such an

assignment.

Texas Eastern states that this

Commission has jurisdiction to grant

this relief first because of the

Commission’s jurisdiction over capacity

release as it applies to Texas Eastern

and its tariff and second, because the

Commission has direct jurisdiction over

Public Service’s capacity release

activities.

Any person desiring to be heard or to

protest said filing should file a motion

to intervene or protest with the Federal

Energy Regulatory Commission, 888

First Street, NE., Washington, DC, 20426

in accordance with Sections 385.214

and 385.211 of the Commission’s

Regulations. All such motion or protests

must be filed on or before January 5,

1998. All protests filed with the

Commission will be considered by the

Commission in determining the

appropriate action to be taken but will

not serve to make the protestants parties

to the proceeding. Any person wishing

to become a party to this proceeding,

must file a motion to intervene. Copies

of this filing are on file and are available

for public inspection in the Public

Reference Room.

Linwood A. Watson, Jr.,

Acting Secretary.

[FR Doc. 97–32506 Filed 12–11–97; 8:45 am]

BILLING CODE 6717–01–M