Federal Register / Vol. 62, No. 57 / Tuesday, March 25, 1997 / Notices 14131

authorization pursuant to Section 7 of

the Natural Gas Act.

Linwood A. Watson, Jr.

Acting Secretary.

[FR Doc. 97–7418 Filed 3–24–97; 8:45 am]

BILLING CODE 6717–01–M

[Docket Nos. CP96–655–001, CP96–656–

001, and CP96–657–001]

Destin Pipeline Company, L.L.C.;

Notice of Amendment

March 19, 1997.

Take notice that on March 14, 1997,

Destin Pipeline Company, L.L.C.

(Destin) successor in interest to Destin

Pipeline Company Inc. (DPC), P.O. Box

2563, Birmingham, Alabama 35202–

2563, filed in Docket No. CP96–655–

001, et al., an amendment to the

pending application for a certificate of

public convenience and necessity filed

on July 24, 1996, in Docket No. CP96–

655–000, et al., pursuant to Section 7(c)

of the Natural Gas Act and Parts 284 and

157 of the Commission’s Regulations, to

modify proposed facilities to include

executed Precedent Agreements

providing market support for the Destin

Pipeline, to revise Destin’s proposed

FERC Gas Tariff and initial rates to

provide a new flexible firm

transportation service to meet the needs

of deepwater producers and to renew

requests for blanket certificates of

construction and transportation, all as

more fully set forth in the amendment

which is on file with the Commission

and open to public inspection.

Destin states that in its initial filing,

as supplemented, DPC requested

authorization to construct, install and

operate a new large diameter interstate

pipeline (Destin Pipeline) to transport

gas from the Gulf of Mexico to

interconnections with five interstate

pipelines in the State of Mississippi,

Destin states that due to favorable

reaction from the shipper community,

on December 21, 1996, Amoco Pipeline

Company (Amoco Pipeline), Shell Gas

Pipeline Company (Shell Pipeline),

Amoco Production Company (Amoco),

Shell Deepwater Development Inc.

(SDDI) and shell Deepwater Production

Inc. (SDPI) agreed with DPC to have

affiliates of Amoco Pipeline and Shell

Pipeline become equity owners in the

Destin Pipeline project. Additionally,

Destin states that Amoco, SDDI and

SDPI have executed Precedent

Agreements dated as of February 28,

1997, for the proposed flexible firm

transportation service on Destine

Pipeline with average Transportation

Demand (TD) levels over the first five

years at 562 MMcf per day and peak

TDs of 844 MMcf per day.

Destin states that its initial filing

requested authorization to construct,

install, and operate one gathering

platform in Main Pass Block 260, Gulf

of Mexico; one offshore junction

platform in Viosca Knoll Block 119,

Gulf of Mexico; 76 miles of 36-inch

offshore pipeline facilities; 134 miles of

36-inch and 30-inch onshore pipeline

facilities; two miles of 16-inch pipeline

facilities; one 14,100 horsepower

compressor station in Jackson County,

Mississippi; one 11,600 horsepower

compressor station in Greene county,

Mississippi; and related pipeline

interconnection, measurement and

appurtenant facilities to accommodate

the transportation of 1 Bcf of gas per day

for delivery to downstream

interconnections in southern and

central Mississippi. Destin states that

the pipeline route was to extend in a

northerly direction from Main Pass

Block 260, Gulf of Mexico, to an

onshore terminus at its interconnection

with Southern Natural Gas Company

(Southern) near Enterprise, Mississippi.

Destin further states that the original

filing contemplated interconnections

with four other pipelines, as well as

Southern; Florida Gas Transmission

Corporation, Transcontinental Gas Pipe

Line Corporation, Tennessee Gas

Pipeline Company and Texas Eastern

Transmission Corporation.

Destin states that, specifically, the

amended filing seeks the following

modifications to the original proposal:

(a) Several modifications to the

jurisdictional facilities, (b) an

interconnection with an additional

interstate pipeline, (c) the deletion of

the levelized rates for the FT–1 firm

transportation service, (d) the addition

of a flexible firm transportation service

similar to that approved in Shell Gas

Pipeline Company, 76 FERC ¶ 61,126

(1996), (e) a decrease in the proposed

initial rates, (f) inclusion of capacity

lease payments to Southern in Destin’s

proposed cost of service in accordance

to the pending joint application of

Southern and Destin filed on March 14,

1997, in Docket No. CP97–291–000, (g)

revisions to Destin’s proposed FERC Gas

Tariff, primarily attributable to the

addition of the flexible firm

transportation service and the

incorporation of the Gas Industry

Standards Board standards.

It is stated that the modifications to

the facilities originally proposed are as

follows: (a) The deletion of the junction

platform in Viosca Knoll Block 119,

Gulf of Mexico, (b) an interconnection

with Koch Gateway Pipeline Company

in Jackson County, Mississippi, (c) the

deletion of the onshore receipt point, (d)

increase compression capabilities at the

Pascagoula compression site from

14,100 horsepower to 17,040

horsepower, (e) decrease compression at

the Sand Hill compression site from

11,600 horsepower to 9,400 horsepower,

and (f) in addition to the measurement

facilities to connect to the inlet and

outlet of a non-jurisdictional processing

plant to be operated by Amoco in

Pascagoula, Mississippi, Destin

proposed to add as an auxiliary facility

a liquids slug catcher facility in Jackson

County, Mississippi, which will be

located upstream of the site of the nonjurisdictional processing plant. Destin

estimates the revised cost of the

proposed facilities to be $308.1 million.

In regard to its transportation services,

Destin states that it is deleting the 10-

year levelized firm transportation

services and adding a flexible firm

transportation service. Interruptible

transportation service under Rate

Schedule IT will be applicable to any

shipper that contracts for interruptible

transportation on Destin Pipeline. In its

amended proposal, Destin proposes to

offer two firm transportation services:

(1) A traditional firm transportation

service (Rate Schedule FT–1) and (2) a

flexible firm transportation service (Rate

Schedule FT–2). Destin states that Rate

Schedule FT–1 is a traditional firm

transportation service with a fixed TD

and a reservation charge to be billed

regardless of throughput levels. The

maximum initial monthly reservation

rate to be charged for service under Rate

Schedule FT–1 is $7.35 per Dth, a

decrease of 58 cents per Dth per month

from the comparable rate proposed for

the traditional firm rate schedule in the

initial filing. Destin states that Rate

Schedule FT–2 is a flexible firm

transportation service which will

provide for variable levels of TD and

volumetric rate treatment depending on

throughput levels relative to TD. Destin

states that to be eligible for service

under Rate Schedule FT–2, a shipper

must execute a Reserve Commitment

Agreement wherein the shipper

identifies OCS lease(s) with estimated

proven recoverable reserves of 100 Bcf

or more attributable to the shipper’s

interests and its affiliates or aggregated

with other shipper(s) committed

interest(s) in such leases (Committed

Leases) and make a life of reserves

commitment of its share of production

therefrom. In addition, Destin states that

each shipper will be required to submit

documentation and technical data to

support its reserve commitment when

placing a request for transportation

service under Rate Schedule FT–2. It is
14132 Federal Register / Vol. 62, No. 57 / Tuesday, March 25, 1997 / Notices

stated that shippers under Rate

Schedule FT–2 may request separate

levels of TD (5,000 Mcf/d minimum) for

specified delivery periods of not less

than three consecutive months to

correspond with the anticipated

production profile of the Committed

Leases. It is further stated that the

maximum monthly reservation rate for

transportation service under Rate

Schedule FT–2 is $7.35 per Dth and the

maximum daily reservation rate for such

service is 24.5 cents per Dth, inclusive

of the transportation charge. To receive

volumetric rate treatment, the shipper’s

throughput quantities (based on a

rolling three-month average calculated

with a one-month lag) must equal or

exceed 70 percent of the shipper’s

average TD for the same three-month

period. If a shipper’s throughput does

not reach the 70 percent threshold, the

shipper is charged a reservation charge

based on a total TD.

Destin states that it is encouraging

maximum utilization of capacity by

establishing discounted Rate Schedule

FT–2 rates for a period through

December 31, 2019, for FT–2 shippers

with firm transportation service

pursuant to Precedent Agreements

executed in February 1997 or pursuant

to commitments in Destin’s Open

Season to be held from March 17, 1997

to April 30, 1997. Destin states that at

this juncture, Destin is not requesting

authority herein to negotiate terms and

conditions. Service terms and

conditions under Rate Schedule FT–2

will be available to all shippers on the

same generally applicable terms and

conditions.

Destin states that for all rate

schedules, Destin has eliminated the

offshore/onshore rate design and

provided for a single rate independent

of receipt point or delivery point

location. Destin states that it believes

that a postage stamp rate is appropriate

for this project because most of the gas

supply is expected to be received at

Main Pass Block 260 and all of the

delivery points are located within a 115-

mile segment. In addition, Destin states

that it has eliminated the Negotiated

Rate Provision in Section 25 of the

proposed tariff. Destin further states that

the addition of a flexible firm rate

schedule has eliminated the need for the

Banking Provision in Section 26 of the

proposed tariff. Destin states that the

Banking Provision was designed to

provide scheduling flexibility to meet

the needs of shippers coordinating

development and production of

deepwater prospects. Destin believes

that the proposed flexible firm Rate

Schedule FT–2 provides even greater

flexibility and eliminates any need for a

banking mechanism.

Destin requests a Preliminary

Determination on non-environmental

issues by June 1, 1997, with a final

approval on all issues by the end of

November 1997, so that the proposed

facilities can be placed in service by

July 1, 1998.

Any person desiring to be heard or to

make any protest with reference to said

amendment should on or before April 9,

1997, file with the Federal Energy

Regulatory Commission, Washington,

DC 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.

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. All persons

who have heretofore filed need not file

again.

Linwood A. Watson, Jr.,

Acting Secretary.

[FR Doc. 97–7414 Filed 3–24–97; 8:45 am]

BILLING CODE 6717–01–M

[Docket No. CP97–283–000]

Eastern Shore Natural Gas Company;

Notice of Application

March 19, 1997.

Take notice that on March 11, 1997,

Eastern Shore Natural Gas Company

(Eastern Shore), Box 615, Dover,

Delaware 19903–0615, filed an

application pursuant to Sections 7(b)

and 7(c) of the Natural Gas Act (NGA)

for a certificate of public convenience

and necessity authorizing Eastern Shore

to (1) construct and operate 0.4 miles of

16-inch diameter pipeline; and (2)

abandon in place 0.4 miles of existing

10-inch diameter pipeline, all as more

fully set forth in the application, which

is on file with the Commission and open

to public inspection.

Eastern Shore says that the proposed

pipeline segment, to be located in New

Castle County, Delaware, would replace

existing pipeline that must be relocated

due to Delaware State Department of

Transportation (DelDOT) highway

construction. Construction of the

proposed facilities is planned to be

undertaken between Fall 1997 and

Spring 1998.

Eastern Shore estimates that the

incremental additional cost of upsizing

the pipeline segment proposed in its

application will be $53,620 and

estimates the total project cost to be

$329,856. Eastern Shore states that it

will finance the cost of the project

initially from internally generated funds

and short term notes and that

permanent financing will be arranged

after construction has been completed.

Eastern Shore requests that the total cost

of these facilities be rolled-in to its total

system costs for rate purposes.

Any person desiring to be heard or to

make any protest with reference to said

application should on or before April 9,

1997, file with the Federal Energy

Regulatory Commission, 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 NGA (18 CFR 157.100). 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 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.

Take further notice that, pursuant to

the authority contained in and subject to

the jurisdiction conferred upon the

Federal Energy Regulatory Commission

by Section 7 and Section 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 of this

application 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

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

unnecessary for Eastern Shore to appear

or be represented at the hearing.

Linwood A. Watson, Jr.

Acting Secretary.

[FR Doc. 97–7417 Filed 3–24–97; 8:45 am]

BILLING CODE 6717–01–M