[Federal Register Volume 62, Number 71 (Monday, April 14, 1997)]
[Notices]
[Pages 18106-18107]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-9491]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. CP96-671-002]


National Fuel Gas Supply Corporation; Notice of Amendment

April 8, 1997.
    Take notice that on April 3, 1997, National Fuel Gas Supply 
Corporation (National Fuel), 10 Lafayette Square, Buffalo, New York 
14203, filed an amendment to its pending application in Docket No. 
CP96-671-000 pursuant to Sections 7(b) and (c) of the Natural Gas Act 
for a certificate of public convenience and necessity authorizing the 
construction and operation of facilities in order to create additional 
firm transportation capacity from the Niagara import point to Leidy and 
Wharton, Pennsylvania, and permission and approval to abandon certain 
facilities, all as more fully set forth in the application which is on 
file with the Commission and open to public inspection.
    National Fuel states that the purpose of the amendment is to 
eliminate from the application the facilities not needed to serve two 
firm shippers, Enron Capital & Trade Resources Corp. (Enron) and Union 
Pacific Fuels, Inc. (Union Pacific), whose services are not dependent 
upon authorization of the proposed SeaBoard project of Transcontinental 
Gas Pipe Line Corporation (Transco). Specifically, National Fuel 
proposes to: (1) eliminate from its application the request for 
authorization to replace compressor units 1-4 at the Ellisburg 
Compressor Station with a new 3,200 hp unit, and (2) submit the Amended 
and Restated Precedent Agreement between National Fuel and Enron 
Capital & Trade Resources.
    National Fuel states that the original application sought 
authorization for facilities that would provide an additional 48,000 
Dth per day of firm winter capacity and 21,344 Dth per day of firm non-
winter capacity from the Niagara import point to the interconnections 
between the facilities of National Fuel and Transco at Leidy and 
Wharton, Pennsylvania. Of this additional capacity, 44,344 Dth/d was 
subscribed on a long-term basis by Enron and Renaissance Energy (U.S.), 
Inc. (Renaissance), both of which planned to use the additional 
capacity on National Fuel's system in combination with proposed 
SeaBoard capacity downstream on Transco's system. It is stated that 
National Fuel's original service agreement with each of Enron and 
Renaissance made the execution of a transportation service agreement 
with Transco a condition to the execution of a transportation agreement 
with National Fuel.
    National Fuel states that on January 21, 1997, Transco advised the 
Commission that its proposed SeaBoard Project would not be placed in 
service until at least November 1, 1998.
    It is stated that on January 30, 1997, National Fuel filed an 
amendment to its application (First Amendment), which advised the 
Commission that National Fuel and Union Pacific have executed a 
precedent agreement for the remaining 3,656 Dth/d of firm winter 
capacity to be created by National Fuel's 1997

[[Page 18107]]

Niagara Expansion Project. National Fuel states that the First 
Amendment also addressed a proposed change in compressor mode and 
horsepower at National Fuel's Ellisburg Compressor Station, and sought 
certificate authority for a meter replacement that had been described 
in the original application as an auxiliary facility.
    National Fuel states that on March 14, 1997, it responded to a data 
request from the Commission seeking information about National Fuel's 
plans in light of Transco's announcement that the SeaBoard project 
would be delayed. National Fuel states that it advised the Commission 
that Enron and National Fuel had just entered into an Amended and 
Restated Precedent Agreement, under which the service to be rendered by 
National Fuel is not dependent upon the outcome of Transco's SeaBoard 
project or any other downstream facilities. National Fuel also 
clarified that its proposed service to Union Pacific is not depended on 
downstream facilities. National Fuel indicated that it intended to file 
an amendment to its application seeking a Commission order, on the 
earliest date possible, authorizing the construction of the facilities 
required by National Fuel to render firm service to Enron and Union 
Pacific, while the facilities required to serve Renaissance would 
remain tied to Transco's SeaBoard project.
    According to National Fuel, the revised project is not dependent 
upon the outcome of Transcop's SeaBoard project, nor is it dependent 
upon the certification or construction of any downstream facilities.
    National Fuel states that the service to be provided to Enron will 
be changed in two minor respects. First, Transco at Leidy is now 
designated as the primary delivery point with respect to all of Enron's 
maximum daily transportation quantity (MDT). Under the original 
agreement, the primary delivery point with respect to 5,300 Dth/d of 
Enron's MDT was to be Transco at Wharton, 12.2 miles from Leidy. 
Second, the agreement calls for the execution of two service 
agreements--one ten year service agreement with an MDT of 15,694 Dth/d 
and one eleven year service agreement with an MDT of 5,650 Dth/d--
instead of one ten year service agreement with an MDT of 21,344 Dth/d. 
It is stated that the total quantity subscribed by Enron remains at 
21,344 Dth/d; the effect of this change is that the primary term with 
respect to 5,650 Dth/d of Enron's capacity has been increased from ten 
to eleven years.
    It is stated that neither the Enron nor the Union Pacific service 
will be dependent upon any other downstream facilities. National Fuel 
states that these customers have requested firm service to Leidy, 
Pennsylvania, a recognized market center. It is stated that National 
Fuel's firm shippers would have a number of options for the delivery of 
their gas at Leidy, including the sale of such gas to shippers with 
primary firm, secondary firm, released firm or interruptible capacity 
on Transco's system. In addition, National Fuel's firm shippers would 
be able to arrange the redelivery of their gas to other interstate 
pipelines (including CNG Transmission Corporation, Tennessee Gas 
Pipeline Company and Texas Eastern Transmission Corporation) at several 
secondary points in the Ellisburg-Leidy area, or elsewhere on National 
Fuel's system. In addition, National Fuel contends that the 
availability of storage in the Ellisburg-Leidy area provides another 
delivery option for National Fuel's shippers.
    Any person desiring to be heard or to make any protest with 
reference to said amendment should on or before April 17, 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.
    Take further notice that, pursuant to the authority contained in 
and subject to jurisdiction conferred upon the Federal Energy 
Regulatory 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 with further notice before the Commission or its designee on this 
application if no motion to intervene is filed within the time required 
herein, or if the Commission on its own review of the matter finds that 
permission and approval for the proposed certificate and abandonment 
are 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 unnecessary for National Fuel to appear or be represented at 
the hearing.
Lois D. Cashell,
Secretary.
[FR Doc. 97-9491 Filed 4-11-97; 8:45 am]
BILLING CODE 6717-01-M