[Federal Register Volume 61, Number 109 (Wednesday, June 5, 1996)]
[Notices]
[Pages 28573-28574]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14024]



-----------------------------------------------------------------------

DEPARTMENT OF ENERGY
[Docket No. CP96-541-000]


Southern Natural Gas Company, Notice of Application

May 30, 1996.
    Take notice that on May 24, 1996, Southern Natural Gas Company 
(Southern), Post Office Box 2563, Birmingham, Alabama 35202-2563, filed 
in Docket No. CP96-541-000 an application, pursuant to Section 7(c) of 
the Natural Gas Act, for a certificate of public convenience and 
necessity for authorization to construct, install, modify, and operate 
certain pipeline loops, compressors, and appurtenant facilities to 
permit increased firm transportation services in Southern's Zone 3 
market area, and for permission to roll in the costs attributable to 
those facilities, all as more fully set forth in the application, which 
is on file with the Commission and open for public inspection.
    Southern states that it has undertaken an intensive effort to serve 
new markets that can be attached economically to its system and to 
develop markets already attached to its system. It is indicated that, 
as part of this effort, and in response to inquiries received by 
Southern concerning the availability of capacity in its Zone 3 market 
area (Georgia, South Carolina and Tennessee), Southern conducted an 
open season in mid-1995 to determine whether there was sufficient 
demand for transportation service to support an expansion of its 
system. It is also indicated that, as a result of this open season and 
discussions with interested customers, Southern received requests for 
long-term transportation service from the following Zone 3 customers:

------------------------------------------------------------------------
                          Customer                             Mcf/day  
------------------------------------------------------------------------
Engelhard Corporation......................................        2,250
Kemira Pigments, Inc.......................................       18,000
Power Silicates Corporation................................          600
Savannah Energy Corporation................................          200
Domtar Gypsum..............................................        3,090

[[Page 28574]]

                                                                        
City of Wrens, Georgia.....................................        2,200
Armstrong World Industries, Inc............................        3,500
Southeast Paper Manufacturing Co...........................        9,540
Calsilite Manufacturing Corporation........................          500
Knoxville Utilities Board..................................        5,000
Riverwood International Corporation........................        1,000
                                                            ------------
                                                                        
  .........................................................       45,880
------------------------------------------------------------------------



    Southern states that each of the above shippers has executed a 
service agreement under Rate Schedule FT with a primary term of 10 
years.
    To provide the requested service, Southern proposes to construct, 
install, modify and operate pipeline and compression facilities. More 
specifically, Southern proposes to construct (1) approximately 4.6 
miles of 30-inch South Main 2nd Loop Line in Crawford and Monroe 
Counties, Georgia; (2) approximately 5.1 miles of 16-inch Brunswick 
Loop Line in Jones and Twiggs County, Georgia; (3) approximately 5.9 
miles of 30-inch South Main 3rd Loop Line in Lee County, Alabama; (4) 
approximately 7.3 miles of 24-inch 2nd North Main Loop Line in Pickens 
and Tuscaloosa Counties, Alabama; and (5) approximately 4.6 miles of 
30-inch Franklinton-Gwinville 2nd Loop Line in Walthall, Lawrence, and 
Marion Counties, Mississippi. Southern also proposes to place back into 
operation and commence depreciating a 104.6-mile section of the 20-inch 
Wrens-Savannah Line in Jefferson, Burke, Jenkins, Screven, Effingham, 
and Chatham Counties, Georgia.
    Southern also proposes to uprate a total of four turbine compressor 
engines at the Selma Compressor Station in Dallas County, Alabama and 
the Bay Springs Compressor Station, Jasper County, Mississippi. 
Southern proposes to rewheel the four Dresser-Rand compressors and to 
increase the 6,500 rated horsepower at an 80 degree ambient temperature 
at each of the four engines to 9,160 rated horsepower. Southern claims 
that this uprate would allow Southern to take advantage of the current 
physical capabilities of the engines at minimal cost.
    Southern estimates a facilities cost of $36,043,000, which would be 
financed initially through the use of short term financing, available 
cash from operations or use of both alternatives and ultimately from 
permanent financing.
    Southern also requests that the Commission issue a predetermination 
that rolled-in rates are appropriate for the proposed facilities. In 
support of that request, Southern states that the proposed facilities 
will be physically and operationally integrated with existing 
facilities that serve Southern's current customers and that the new 
facilities will be used for the benefit of all shippers on Southern's 
system. Southern states that the estimated revenues generated from the 
proposed facilities will exceed the estimated cost of service from the 
facilities by $440,000 during the first year of operation and 
$13,500,000 during the 10-year primary term of the related service 
agreements.
    Southern also claims that the facilities will provide system 
enhancements at seven distinct locations. Southern indicates that the 
looping and increased compression horsepower will improve system 
reliability for all shippers in the market area, most particularly on 
the South Main Line where the majority of the expansion facilities and 
load are located.
    Any person desiring to be heard or to make any protest with 
reference to said application should on or before June 20, 1996, 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 157.10). 
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 the 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 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 and permission and approval for 
the proposed 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 Southern to appear or be represented at the 
hearing.
Lois D. Cashell,
Secretary.
[FR Doc. 96-14024 Filed 6-4-96; 8:45 am]
BILLING CODE 6717-01-M