[Federal Register Volume 60, Number 236 (Friday, December 8, 1995)]
[Notices]
[Pages 63033-63034]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-29914]



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DEPARTMENT OF ENERGY
[Docket No. CP96-10-001]


Transwestern Pipeline Company; Notice of Amendment to Application

December 4, 1995.
    Take notice that on November 29, 1995, Transwestern Pipeline 
Company (Transwestern), P.O. Box 1188, Houston, Texas 77251-1188 filed 
an amendment (Amendment) to its original application in Docket No. 
CP96-10-000, which was filed pursuant to Section 7(c) of the Natural 
Gas Act, the purpose of which is to conform Transwestern's application 
to the following: (1) The Purchase and Sale Agreement and Ownership and 
Operating Agreement executed November 3, 1995 between Transwestern and 
Northwest Pipeline Corporation (Northwest); and (2) Northwest's 
application for abandonment authorization filed on 

[[Page 63034]]
November 13, 1995 in Docket No. CP96-60-000, all as more fully set 
forth in the application which is on file with the Commission and open 
to public inspection.
    Transwestern states that on September 22, 1995, Transwestern and 
Northwest executed a Letter of Intent (LOI) providing for the purchase 
by Transwestern and the sale by Northwest of a 77.7 percent ownership 
interest in Northwest's south-end mainline extension facilities 
extending from the Ignacio Compressor Station near Ignacio, Colorado to 
the Blanco Hub near Bloomfield, New Mexico (the La Plata Facilities). 
It is stated that the LOI provides that the exact level of interest and 
capacity was subject to change in order to permit Northwest to serve 
changes in receipt and delivery points which were made by Northwest's 
customers as of October 20, 1995.
    Transwestern states that in its application, Northwest would retain 
24,000 Dth/d of south flow delivery capacity, but Transwestern did not 
specify a specific amount of north flow delivery capacity which would 
be retained by Northwest. It is stated that in the Sales Agreement, 
Northwest and Transwestern agreed that Northwest would retain 23,811 
Dth/d of south flow delivery capacity and 212,788 Dth/d of north flow 
delivery capacity, subject to adjustment to reflect in-kind fuel 
reimbursement. Under the terms of the Sales Agreement, Transwestern 
will acquire all capacity on the facilities not specifically retained 
by Northwest, which will include approximately 276,300 Dth/d of north 
to south capacity through the La Plata A compressor. Inasmuch as 
Transwestern's application listed such figure as 276,000 Dth/d, 
Transwestern amends that figure to reflect that it will hold 276,300 
Dth/d of north to south capacity through the La Plata A compressor.
    In the text of its application, Transwestern stated that it would 
take assignment of seven firm transportation contracts subscribing a 
total of 201,000 Dth/d of capacity. However, since the actual capacity 
subscribed under the seven firm contracts to be assigned is 201,900 
Dth/d, Transwestern proposes to amend the application to reflect the 
actual figure.
    Transwestern states that its application reflected a total 
estimated purchase price of $21 million, which included Transwestern's 
payment of a portion of the cost of certain necessary modifications to 
be constructed prior to closing. The application stated that the total 
cost of such modifications was $4.9 million. It is stated that in the 
Sales Agreement, the list of modifications was amended, which resulted 
in a reduction in the total cost to construct such facilities from $4.9 
million to $3.9 million. In addition, it is stated that the Sales 
Agreement contains minor revisions to the property description and net 
book value contemplated by the LOI, which in turn also affected the 
purchase price.
    In addition, under the Sales Agreement, Transwestern is also 
required to reimburse Northwest for 77.7 percent of the reasonable cost 
incurred by Northwest prior to closing to overhaul the La Plata A 
compressor station, with Transwestern's cost not to exceed $300,000. 
Transwestern states that such cost is to be added to the purchase price 
to be paid by Transwestern at closing for the La Plata Facilities.
    Transwestern contends that the Sales Agreement further obligates 
Transwestern to pay 100 percent of the cost for Northwest to install, 
prior to closing, a regulator at the interconnection of the La Plata 
Facilities at El Paso-Blanco. It is stated that the regulator will 
become a part of the La Plata facilities to be acquired by Transwestern 
at closing, but is not included as part of the necessary modification. 
Transwestern states that the total cost for such regulator is estimated 
to be $346,000.
    Transwestern also seeks to have the application amended to reflect 
the revised estimated purchase cost of $20.6 million. In addition, 
Transwestern states that the depreciation expense and other taxes have 
been reduced to reflect the lower purchase price for the La Plata 
Facilities.
    Any person desiring to be heard or to make any protest with 
reference to said amendment should on or before December 26, 1995, 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, 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 unnecessary for Transwestern to appear or be represented at 
the hearing.
Lois D. Cashell,
Secretary.
[FR Doc. 95-29914 Filed 12-7-95; 8:45 am]
BILLING CODE 6717-01-M