[Federal Register Volume 62, Number 65 (Friday, April 4, 1997)]
[Notices]
[Pages 16149-16150]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-8575]



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DEPARTMENT OF ENERGY
[Docket No. CP97-294-000]


Natural Gas Pipeline Company of America; Notice of Application

March 31, 1997.
    Take notice that on March 19, 1997, Natural Gas Pipeline Company of 
America (Natural), located at 701 East 22nd Street, Lombard, Illinois 
60148, filed in Docket No. CP97-294-000 an application pursuant to 
Section 7(c) of the Natural Gas Act and Subpart A of Part 157 of the 
Commission's Regulations. Natural seeks a certificate of public 
convenience and necessity authorizing the construction and operation of 
certain expansion facilities required by transport up to 663,000 Mcf 
per day of additional volumes on Natural's Amarillo mainline system 
east of Harper, Iowa, to the Chicago area. The details of Natural's 
application are more fully set forth in its filing which is on file 
with the Commission and open to public inspection.
    Natural states that this application is being filed in response to 
the Draft Environmental Impact Statement (DEIS) for the ``Northern 
Border Project'' issued by the Commission Staff in Northern Border 
Pipeline Company (Northern Border), Docket Nos. CP95-194-001, 003, and 
Natural, Docket Nos. CP96-27-000, 001, and represents a further 
expansion of Natural's Amarillo Line. This application, in conjunction 
with Natural's already pending applications in Docket Nos. CP96-27-000 
and 001, is said to put before the Commission, in a formal manner, the 
``Amarillo System Alternative'' considered by the DEIS for the Northern 
Border Project. However, Natural states that 62 miles of large diameter 
lateral lines and 29,600 horsepower of additional compression which the 
Northern Border DEIS considered as part of the Amarillo System 
Alternative is not included because Natural says that those facilities 
are not needed. Thus, Natural states that its version of the Amarillo 
System Alternative is preferable to the Iowa/Illinois System 
Alternative which was also considered by the Northern Border Project 
DEIS.
    Natural requests certificate authority for the following 
facilities:
    (1) About 20.7 miles of 36-inch mainline loop in Washington and 
Louisa Counties, Iowa, extending westward from the beginning of the 36-
inch loop proposed in Docket No. CP96-27-001;
    (2) About 16.9 miles of 36-inch mainline loop in Rock Island and 
Henry Counties, Illinois, extending eastward from the end of the 36-
inch loop proposed in Docket No. CP96-27-001 to the suction side of 
Compressor Station No. 110;
    (3) About 68.9 miles of 42-inch mainline loop in Henry, Bureau and 
LaSalle Counties, Illinois, from the discharge side of Compressor 
Station No. 110 to the beginning of the No. 4 line in LaSalle County, 
Illinois;
    (4) About 4.7 miles of 36-inch mainline loop in Bureau County, 
Illinois, extending eastward from the end of the 36-inch loop proposed 
in Docket No. CP96-27-001;
    (5) Two 15,000 horsepower gas turbine compressors at Station No. 
199 located in Muscatine County, Iowa;
    (6) 19,000 horsepower of gas turbine compression at Station No. 110 
located in Henry County, Illinois; and,
    (7) One 13,000 horsepower gas turbine compressor at Station No. 113 
located in Will County, Illinois.
    The estimated cost of these facilities is $160 million.
    Natural says that it will charge its currently effective rates 
under Rate Schedule FTS for the transportation service performed by the 
facilities proposed in this Application. Natural further requests a 
preliminary determination that the cost of the facilities should be 
reflected on a rolled-in basis in Natural's next Section 4 rate 
proceeding. The Commission's pricing policy statement in Docket No. 
PL94-4-000 indicates that there is a presumption in favor of rolled-in 
rates when the rate increase to existing customers from rolling-in the 
new facilities is five percent or less.
    Natural says that, as shown in Exhibit N of its application, the 
rolling-in of the proposed facilities will have no significant impact 
on Natural's existing rates. While the impact on the rates for 
Natural's transportation services vary by transportation path, on a 
volume weighted basis, there is a slight overall reduction in rates. 
Similarly, Natural's storage rates will change by less than 0.3%. 
Natural claims to have thus met the requirements necessary for a 
preliminary determination in favor of rolled-in rates.
    Natural says that Northern Border could contract with it for firm 
transportation service over the Amarillo System Alternative in lieu of 
constructing the Northern Border proposed expansion from Harper to 
Chicago.\1\ Natural says that Northern Border would pay Natural's 
maximum rate under Rate Schedule FTS which is currently about 14 cents, 
and then Northern Border would charge its own shippers 8.5 cents per 
MMBtu under Northern Border's cost-of-service tariff.
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    \1\ Natural says that it made this offer to Northern Border on 
January 27, 1997, but that on February 7, 1997, Northern Border 
declined the offer and made no counter-proposal.
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    Natural says that under the Amarillo System Alternative, Northern 
Border's system would be effectively extended east of Harper and that 
all the shippers would contract with Northern Border, not with Natural, 
for service to the Chicago area. Natural says that all the shippers 
would receive comparable or, in some cases, better service than they 
originally contracted for (in the precedent agreements), but at a lower 
per unit cost. Natural says that all this would be accomplished without 
the need for a totally new pipeline system/corridor being constructed 
across eastern Iowa and Illinois by Northern Border.
    Any person desiring to be heard or to make any protest with 
reference to said application should on or before April 21, 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 Natural Gas Act (18 CFR 157.20). 
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 the 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 Commission by 
Sections 7 and 15 of the Natural Gas Act 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 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

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unnecessary for Natural to appear or be represented at the hearing.
Lois D. Cashell,
Secretary.
[FR Doc. 97-8575 Filed 4-3-97; 8:45 am]
BILLING CODE 6717-01-M