[Federal Register Volume 65, Number 225 (Tuesday, November 21, 2000)]
[Notices]
[Pages 69926-69927]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-29691]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. CP01-26-000]


Tennessee Gas Pipeline Co.; National Fuel Gas Supply Corp.; 
Notice of Application

November 15, 2000.
    Take notice that on November 1, 2000, Tennessee Gas Pipeline 
Company (Tennessee) and National Fuel Gas Supply Corporation (National 
Fuel), collectively Applicants, filed an abbreviated application in 
Docket No. CP01-26-000 pursuant to sections 7(b) and 7(c) of the 
Natural Gas Act, as amended, and sections 157.7 and 157.14 of the 
Regulations of the Federal Energy Regulatory Commission (Commission), 
requesting a certificate of public convenience and necessity granting 
the Applicants authorization to amend the Hebron Storage Agreement in 
certain respects. The application is on file with the Commission and 
open to public inspection. This filing may be viewed via the internet 
at http://www.ferc.fed.us/online/rims.htm (call 202-208-2222 for 
assistance). Any questions regarding the application should be directed 
to Christopher D. Young, Senior Counsel, Tennessee Gas Pipeline 
Company, P.O. Box 2511, Houston, Texas 77252 at (713) 420-7239 or David 
W. Reitz, National Fuel Gas Supply Corp., 10 Lafayette Square, Buffalo, 
New York 14203 at (716) 857-7949.
    The Applicants request that the Commission issue an order 
authorizing the reallocation of the Applicants' certified entitlements 
to storage capacity and delivery capacity at the Hebron Storage Field 
pursuant to an amendment to the Hebron Storage Agreement. Applicants 
indicate that upon receiving appropriate certificate authority, 
Tennessee's Assigned Storage Capacity will be reduced by 1.0 Bcf and 
National Fuel's will be increased by an equivalent amount, with a 
corresponding change to the Assigned Delivery Capacity of each party. 
Applicants summarize the change in storage capacity as follows:

                                            Assigned Storage Capacity
----------------------------------------------------------------------------------------------------------------
                                                                Current assignment        Proposed assignment
                                                           -----------------------------------------------------
                                                               Percent        Mcf         Percent        Mcf
----------------------------------------------------------------------------------------------------------------
Tennessee.................................................          86.1   14,870,000         80.31   13,870,000
National Fuel.............................................          13.9    2,400,000         19.69    3,400,000
Rated Storage Capacity....................................         100     17,270,000        100      17,270,000
----------------------------------------------------------------------------------------------------------------

    Applicants state that, under the Hebron Storage Agreement, the 
Assigned Storage Capacity of a party is that portion of the Rated 
Storage Capacity that the Assigned Delivery Capacity of such party 
bears to the Rated Delivery Capacity of the storage field. The 
Applicants propose that the Assigned Delivery Capacity be fixed 
portions of the Rated Delivery Capacity: Tennessee's portion would be 
80.31% and National Fuel's would be 19.69%, subject to change in the 
event that a future development program is implemented.
    Applicants also request that the Commission approve an option for a 
limited term lease arrangement between Tennessee and National Fuel to 
provide a measure of flexibility to Tennessee for an interim period 
while Tennessee adjusts its arrangements for meeting its service 
obligations. Applicants propose that Tennessee have the option to lease 
from National Fuel storage capacity in the Hebron Field up to the 
amount transferred to National Fuel (1 Bcf). Applicants also propose 
that such lease provide for a delivery capacity up to the amount 
transferred to National Fuel.

[[Page 69927]]

The rates for the optioned capacity would be equal to Tennessee's 
maximum tariff rate for firm storage service. Such lease would 
terminate at Tennessee's option on either the first or second March 
31st after acceptance of Commission authorization by both Tennessee and 
National Fuel. Applicants claim that a lease of capacity is justified 
since National Fuel could not provide capacity to Tennessee on a field-
specific basis under its Part 284 firm storage services.
    Applicants also propose that Tennessee have the option to become 
the operator of the storage facilities at the Hebron Storage Field in 
place of National Fuel. Under the current storage agreement National 
Fuel operates the storage properties and Tennessee operates the station 
facilities. Additionally, subject to a mutual agreement between the 
parties, National Fuel will continue to perform certain day to day 
operation and maintenance responsibilities under a contract with 
Tennessee. National Fuel would also retain certain administrative 
responsibilities relating to leases, royalties and other payments.
    Applicants also propose to modify the termination and assignment 
provisions of the Hebron Storage Agreement and to extend the term of 
the Hebron Storage Agreement for a period of ten (10) years.
    Any person desiring to be heard or to make any protest with 
reference to said application should on or before November 29, 2000, 
file with the Federal Energy Regulatory Commission, 888 First Street 
NE., Washington, D.C. 20426, a motion to intervene or protest in 
accordance with the requirements of the Commission's Rules of Practice 
and Procedure (18 CFR 385.211 and 385.214) and the regulations under 
the NGA (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. Any 
person wishing to become a party in any proceeding must file a petition 
to intervene in accordance with the Commission's rules. Comments and 
protests may be filed electronically via the internet in lieu of paper. 
See, 18 CFR 385.2001(a)(1)(iii) and the instructions on the 
Commission's web site at http://www.ferc.fed.us/efi/doorbell.htm.
    Take further notice that, pursuant to the authority contained in 
and subject to the jurisdiction conferred upon the Commission by 
Sections 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 this application if no petition to 
intervene is filed within the time required herein, if the Commission 
on its own review of the matter finds that the proposal is required by 
the public convenience and necessity. If a petition 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 provided for, unless 
otherwise advised, it will be unnecessary for the Applicants to appear 
or to be represented at the hearing.

Linwood A. Watson, Jr.,
Acting Secretary.
[FR Doc. 00-29691 Filed 11-20-00; 8:45 am]
BILLING CODE 6717-01-M