[Federal Register Volume 61, Number 117 (Monday, June 17, 1996)]
[Notices]
[Pages 30606-30609]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-15252]



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DEPARTMENT OF ENERGY
[Docket No. CP96-213-001, et al.]


Columbia Gas Transmission Corporation, et al.; Natural Gas 
Certificate Filings

June 11, 1996.
    Take notice that the following filings have been made with the 
Commission:

1. Columbia Gas Transmission Corporation

[Docket No. CP96-213-001]

    Take notice that on June 7, 1996, Columbia Gas Transmission 
Corporation (Columbia), a Delaware corporation, having its principal 
place of business at 1700 MacCorkle Avenue, S.E., Charleston, West 
Virginia 25314-1599, filed an abbreviated application pursuant to 
Section 7(c) of the Natural Gas Act, to amend its application for a 
certificate of public convenience and necessity previously filed with 
the Commission on February 28, 1996, in Docket No. CP96-213-000, for 
its Market Expansion Project as supplemented on March 18, 1996 and 
April 30, 1996.
    Columbia's February 28, 1996 application sought a certificate of 
public convenience and necessity authorizing construction to provide 
506,795 dekatherms per day (dth/d) of additional daily firm 
entitlements to its customers over a three-year period beginning in 
1997. Specifically, Columbia sought authority to: (i) increase the 
performance capabilities of certain existing storage fields; (ii) 
construct and operate, upgrade, and replace certain natural gas 
facilities; (iii) abandon certain natural gas facilities and certain 
base storage gas; and (iv) such other authorizations and/or waivers as 
may be deemed necessary to implement Columbia's Project.
    By this amendment, Columbia now proposes to withdraw certain 
proposed facility projects including 45.5 miles of pipeline and 14,130 
horsepower of compression located in southern Pennsylvania, and in lieu 
of such projects, to lease firm capacity from Texas Eastern 
Transmission Corporation (Texas Eastern).
    After the filing of Columbia's application, Texas Eastern proposed 
to Columbia that Texas Eastern expand a portion of its pipeline system 
in Pennsylvania in order to make available to Columbia an amount of 
firm capacity (141,500 dekatherms (Dth) per day) pursuant to a Lease at 
less cost to Columbia and its customers than Columbia's cost to expand 
its southern Pennsylvania Line 1804 system, which construction has been 
previously identified in Columbia's application as Projects 4.3, 4.4, 
4.5, 4.12, 4.13, 4.15, 4.16, 5.2, 5.3, 5.11, 5.12, 5.13 and 5.14.
    Columbia requests Commission approval of the lease arrangement with 
Texas Eastern to treat the lease as an operating lease, and to recover 
its costs pursuant to its TCRA. The lease costs to be paid by Columbia 
to Texas Eastern are proposed to be recovered by Columbia as an 
operating cost under Account 858.
    Under the terms of a lease agreement entered into by Texas Eastern 
and Columbia, Texas Eastern will: i) construct, own, operate, and 
maintain certain facilities on its pipeline system in southern 
Pennsylvania and make available the resulting 141,500 Dth/d of capacity 
to Columbia on a firm basis.
    The lease provides that Texas Eastern will lease capacity to 
Columbia on a phased-in basis commencing November 1, 1997, consistent 
with the phased implementation of Columbia's Project, up to a total of 
141,500 Dth/d of firm transportation capacity, plus such additional 
capacity as needed to accommodate retainage, as follows:
    Phase-in date of capacity in (Dth/d) and monthly charge

1. November 1, 1997................................    36,000   $242,310
2. November 1, 1998................................    85,800    540,750
3. November 1, 1999................................   141,500    807,670
                                                                        

and continuing through the remainder of the term of the Lease.
    In addition, Columbia will reimburse Texas Eastern for its monthly 
operation and maintenance costs associated with

[[Page 30607]]

the Texas Eastern incremental facilities being constructed to provide 
the above phased-in amounts of capacity under the lease (``O&M 
Payment''). Such operation and maintenance costs include a stipulated 
monthly charge for operation and maintenance expenses, excluding fuel, 
electric power, and property taxes, which expenses will be adjusted 
based on the Gross National Product Implicit Price Deflator as 
specified in the Lease Agreement attached to the application. Charges 
for fuel, electric power and property taxes are based on actual 
incurred costs as detailed in the Lease Agreement.
    Columbia will utilize the leased capacity on Texas Eastern's 
system, along with the capacity to be created on its own system, to 
render the firm transportation and storage service for which Columbia's 
expansion customers have entered into 15-year service agreements. 
Columbia will deliver gas into Texas Eastern's facilities at its 
Waynesburg Compressor Station and will receive gas out of Texas 
Eastern's facilities at its Eagle Compressor Station also in 
Pennsylvania. The details of Texas Eastern's proposal are set forth in 
its application which is being filed concurrently in Docket No. CP96-
559-000.
    Comment date: June 28, 1996, in accordance with Standard Paragraph 
F at the end of this notice.

2. Great Lakes Gas Transmission Limited Partnership

[Docket No. CP96-553-000]

    Take notice that on May 31, 1996, Great Lakes Gas Transmission 
Limited Partnership (Great Lakes), One Woodward Avenue, Suite 1600, 
Detroit, Michigan 48226, filed in Docket No. CP96-553-000 a request 
pursuant to Sections 157.205 and 157.211 of the Commission's 
Regulations under the Natural Gas Act (18 CFR 157.205, 157.211) for 
authorization to construct and operate a meter station and dual line 
taps in Itasca County, Minnesota, under Great Lakes' blanket 
certificate issued in Docket No. CP90-2053-000 pursuant to Section 7 of 
the Natural Gas Act, all as more fully set forth in the request that is 
on file with the Commission and open to public inspection.
    Great Lakes states that it will deliver up to 500 Mcf of natural 
gas per day for the account of the City of Cohasset, Minnesota 
(Cohasset). Natural gas will be received at existing receipt points 
located in Great Lakes' Eastern Zone and an equivalent quantity will be 
redelivered upstream through the new meter station and line taps, to be 
located in Great Lakes' Western Zone. This transportation for 
Cohasset's account will not impact Great Lakes' existing peak day and 
annual delivery capability, can be provided without detriment or 
disadvantage to any other shipper on Great Lakes' system, is not 
prohibited by its existing tariff, and the total volumes delivered will 
not exceed total volumes authorized prior to this request.
    In addition, Great Lakes states that the proposed new meter station 
and line taps will be constructed adjacent to its main line proximate 
to the City of Cohasset, in Itasca County, Minnesota. Great Lakes 
further states that Cohasset will utilize Great Lakes' service in 
connection with providing new natural gas service within the City of 
Cohasset. Great Lakes estimates that the cost of constructing its 
proposed facilities will be approximately $300,000.
    Comment date: July 26, 1996, in accordance with Standard Paragraph 
G at the end of this notice.

3. Green Canyon Gathering Company

[Docket No. CP96-557-000]

    Take notice that on June 4, 1996, Green Canyon Gathering Company 
(Green Canyon), P.O. Box 2511, Houston, Texas 77252-2511, filed in 
Docket No. CP96-557-000 a petition under Rule 207 of the Commission's 
Rules of Practice and Procedure (18 CFR 385.207) for a declaratory 
order stating that a proposed pipeline project, known as the Green 
Canyon Gathering System (Gathering System), which Green Canyon proposes 
to construct and operate on the Outer Continental Shelf (OCS) in the 
Gulf of Mexico, will be exempt from the Commission's jurisdiction under 
Section 1(b) of the Natural Gas Act (NGA), all as more fully set forth 
in the petition which is on file with the Commission and open to public 
inspection.
    It is stated that the proposed Green Canyon Gathering System is 
designed to gather gas produced from new and existing platforms on the 
OCS and to deliver the production to interstate and intrastate 
pipelines that connect to the Gathering System at the outlet side of an 
onshore processing plant. Green Canyon states that the Gathering System 
will extend to the edge of the OCS, will be able to connect to 
platforms throughout its entire length (including beyond the OCS and 
near the shore), and will have no compression. It is further stated 
that, upon being placed in service, the Gathering System will provide 
gas producers on the OCS and their shippers with a means by which to 
deliver their supplies to the interstate and intrastate networks. Green 
Canyon contends that the increased competition that this will provide 
for services on the OCS will lead to reduced costs and will further the 
Commission's policy to promote market oriented services in the natural 
gas industry.
    Green Canyon states that the Gathering System will be 133 miles 
long and 24 inches in diameter throughout its length. It will extend 
into water depths of approximately 630 feet and will be capable of 
receiving production from platforms located in deep waters well in 
excess of 200 meters in the Green Canyon, Ewing Bank and Mississippi 
Canyon Areas of the OCS. It is stated that the Gathering System will be 
constructed in an inverted ``Y'' configuration, with the three legs of 
the system interconnecting in South Timbalier Block 193. It is stated 
that the east leg will be 36.5 miles long, the west leg will be 32 
miles long and the north leg will be 55 miles to the onshore Leeville 
liquids separation facility in La Fourche Parish, Louisiana and an 
additional 9.82 miles to the Golden Meadows processing plant.
    It is stated that the Gathering System is designed to gather gas 
produced along its length, including gas produced near the shore along 
the north leg in the Ship Shoal, South Timbalier and Grand Isle Areas 
of the OCS, as well as in deep waters well beyond the Continental 
Shelf. Green Canyon projects that the Gathering System will be capable 
of accessing approximately 505 Bcf of estimated reserves along the 
north leg, approximately 1,227 Bcf along the east leg and 1,685 Bcf 
along the west leg. Green Canyon anticipates that laterals of various 
lengths and diameters will be built by the producers from their 
production platforms to the Gathering System, allowing the system to 
operate as a ``spine'' system.
    It is stated that at this developmental stage of the proposed 
project, no production has been committed to the Gathering System. 
However, based on exploration and development drilling activity in the 
Gathering System's service area, it is stated that future 
deliverability is expected to greatly outpace the ability of the 
existing pipeline and gathering infrastructure in the region to deliver 
gas onshore for processing.
    Green Canyon contends that the OCS is characterized by a mix of 
pipeline systems; some of which have been functionalized as interstate 
transmission and others are considered to involve nonjurisdictional 
gathering. It is stated that the owners of these facilities include 
interstate and unregulated pipelines as well as natural gas producers 
who have constructed gathering systems to access their own

[[Page 30608]]

production in addition to the production of others. It is stated that 
OCS facilities owned by interstate pipelines are mostly functionalized 
as transmission subject to the Commission's jurisdiction under Section 
1(b) of the NGA, while those owned by the producers have largely been 
determined to be gathering systems exempt from the Commission's 
jurisdiction under the NGA. It is averred that this has given the 
producers an artificial advantage in competing for the gathering 
business in the OCS, since they are free of the restraints to which the 
regulated systems are subject.
    Green Canyon believes that a pressing need exists for gathering 
services on the OCS, which it hopes to fulfill with its proposed 
facilities. In order for an investment in this project to be justified, 
however, Green Canyon states that it must be able to compete on an 
equal footing with the unregulated producers on the OCS for gathering 
services. Thus, Green Canyon seeks for the Commission to declare its 
Green Canyon Gathering System a nonjurisdictional gathering system.
    In order to meet a projected in-service date of November 1997, 
Green Canyon will need to enter into binding commitments by the last 
quarter of 1996 for materials related to the construction of the 
Gathering System. It is stated that construction must begin by the 
spring of 1997 if the Gathering System is to come on line by the fourth 
quarter of 1997. Accordingly, Green Canyon requests that the Commission 
issue a declaratory order of nonjurisdictional status no later than 
September 1996.
    Comment date: July 2, 1996, in accordance with the first paragraph 
of Standard Paragraph F at the end of this notice.

4. Texas Eastern Transmission Corporation

[Docket No. CP96-559-000]

    Take notice that on June 7, 1996, Texas Eastern Transmission 
Corporation (``Texas Eastern''), 5400 Westheimer Court, Houston, Texas 
77056-5310, filed in the above docket an application with the Federal 
Energy Regulatory Commission (``Commission'') pursuant to Section 7(c) 
of the Natural Gas Act for a certificate of public convenience and 
necessity and related authorizations permitting Texas Eastern to:
    (1) Construct, install, own, operate and maintain the incremental 
pipeline facilities and associated ancillary above-ground facilities to 
comply with applicable Department of Transportation requirements, 
install one new gas turbine compressor unit, modify six (6) existing 
reciprocating units, upgrade two existing compressor units and modify 
an existing M&R Station, all as more fully described in the 
application;
    (2) Lease to Columbia Gas Transmission Corporation (``Columbia'') 
141,500 Dth/d of firm transportation capacity, plus fuel, on a phased 
basis (Columbia filed its proposal to lease these facilities from Texas 
Eastern concurrently in Docket No. CP96-213-001);
    (3) Charge and collect, over the term of the capacity lease 
agreement between Texas Eastern and Columbia (``Capacity Lease 
Agreement''), all monthly charges as provided for in the Capacity Lease 
Agreement;
    (4) Pregranted abandonment of the certificate of public convenience 
and necessity and related authorizations granted herein, upon the 
termination of the Capacity Lease Agreement or any reduction in leased 
capacity quantities after completion of the primary term; and
    (5) Such other authority and/or waivers as may be deemed necessary 
by the Commission to facilitate implementation of the proposal 
contained herein.
    Specifically, Texas Eastern proposes to construct the following 
Expansion Facilities:
    (a) Replace approximately 6.15 miles of idled 20-inch pipeline with 
new 24-inch pipeline connecting existing M&R Station 70012 at milepost 
1140.38 to the 24-inch Crayne Farm Pipeline at milepost 1146.50 in 
Greene County, Pennsylvania;
    (b) Replace approximately 10.97 miles of idled 24-inch pipeline 
with new 36-inch pipeline from approximate milepost 1060.67 to 
approximate milepost 1071.64 in Somerset County, Pennsylvania between 
Texas Eastern's existing Uniontown (Station 21-A) and Bedford (Station 
22-A) Compressor Stations;
    (c) Replace approximately 9.12 miles of idled 24-inch pipeline with 
new 36-inch pipeline from approximate milepost 1114.61 to approximate 
milepost 1123.73 in Fulton County, Pennsylvania between Texas Eastern's 
existing Bedford (Station 22-A) and Chambersburg (Station 23) 
Compressor Stations;
    (d) Upgrade by 4500 HP to 11,000 HP the existing 6500 HP electric 
compressor at the Uniontown (Station 21-A) Compressor Station;
    (e) Add 13,400 gas turbine HP and compressor cylinder modifications 
at Texas Eastern's Marietta (Station 24) Compressor Station, with 
cylinder modifications to be performed on six existing reciprocating 
units;
    (f) Upgrade the existing 3500 HP gas turbine unit at Texas 
Eastern's Waynesburg Compressor Station by 1,500 HP in 1999;
    (g) Upgrade Texas Eastern's existing interconnection with Columbia 
at Waynesburg, M&R Station 70012 located in Greene County, 
Pennsylvania, to accommodate 141,500 Dth/d of natural gas plus fuel; 
and
    (h) Install ancillary above-ground appurtenant facilities, 
including but not limited to mainline, crossover and blowoff piping and 
valving, pressure regulating devices, launchers and receivers for 
internal inspection instruments and cleaning devices, and associated 
piping and valves for operating and maintenance purposes associated 
with each of the referenced pipeline replacements.
    As indicated in Exhibits F-I through F-IV of its application, the 
Expansion Facilities are proposed to be installed within Texas 
Eastern's existing pipeline corridor.
    In order to provide the Expansion Capacity as scheduled on November 
1, 1997, Texas Eastern desires to commence construction of the 
Expansion Facilities by May 1, 1997. Assuming commencement of 
construction on May 1, 1997, the estimated total cost of the proposed 
facilities in current year dollars is approximately $63.2 million.
    The Lease provides that Texas Eastern will lease capacity to 
Columbia on a phased-in basis commencing November 1, 1997, consistent 
with the phased implementation of Columbia's Project, up to a total of 
141,500 Dth/d of firm transportation capacity, plus such additional 
capacity as needed to accommodate retainage, and charge for such 
capacity as follows:
    Phase-in date of capacity in (Dth/d) and monthly charge

1. November 1, 1997................................    36,000   $242,310
2. November 1, 1998................................    85,800    540,750
3. November 1, 1999................................   141,500    807,670
                                                                        

and continuing through the remainder of the term of the Lease.
    In addition, Columbia will reimburse Texas Eastern for its monthly 
operation and maintenance costs associated with the Texas Eastern 
incremental facilities being constructed to provide the above phased-in 
amounts of capacity under the Lease (``O&M Payment''). Such operation 
and maintenance costs include a stipulated monthly charge for operation 
and maintenance expenses, excluding fuel, electric power, and property 
taxes, which expenses will be adjusted based on the Gross National 
Product Implicit Price Deflator as specified in the Lease Agreement

[[Page 30609]]

attached to the Application. Charges for fuel, electric power and 
property taxes are based on actual incurred costs as detailed in the 
Lease Agreement.
    Comment date: June 28, 1996, in accordance with Standard Paragraph 
F at the end of this notice.

Standard Paragraphs

    F. Any person desiring to be heard or make any protest with 
reference to said filing should on or before the comment date file with 
the Federal Energy Regulatory Commission, 888 First Street, N.E., 
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 385.211 and 385.214) 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 without further notice before the Commission or its designee on 
this filing 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 the applicant to appear or be represented at 
the hearing.
    G. Any person or the Commission's staff may, within 45 days after 
the issuance of the instant notice by the Commission, file pursuant to 
Rule 214 of the Commission's Procedural Rules (18 CFR 385.214) a motion 
to intervene or notice of intervention and pursuant to Section 157.205 
of the Regulations under the Natural Gas Act (18 CFR 157.205) a protest 
to the request. If no protest is filed within the time allowed 
therefore, the proposed activity shall be deemed to be authorized 
effective the day after the time allowed for filing a protest. If a 
protest is filed and not withdrawn within 30 days after the time 
allowed for filing a protest, the instant request shall be treated as 
an application for authorization pursuant to Section 7 of the Natural 
Gas Act.
Lois D. Cashell,
Secretary.
[FR Doc. 96-15252 Filed 6-14-96; 8:45 am]
BILLING CODE 6717-01-P