[Federal Register Volume 64, Number 2 (Tuesday, January 5, 1999)]
[Notices]
[Pages 488-490]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-60]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket No. CP99-113-000]
Algonquin LNG, Inc.; Notice of Application
December 29, 1998.
Take notice that on December 14, 1998, Algonquin LNG, Inc.
(Algonquin LNG), 5400 Westheimer Court, Houston, Texas 77251-1642,
filed in Docket No. CP99-113-000 an application pursuant to Section 7
of the Natural Gas Act, and the Commission's Rules and Regulations for
a certificate of public convenience and necessity and abandonment
authority in order to modernize its Providence, Rhode Island LNG Plant
by the replacement and modification of various facilities in order to
more efficiently provide its certificated services. The details of
Algonquin LNG's proposal are more fully set forth in its application
which is on file at the Commission and available for public inspection.
Specifically, Algonquin LNG seek authority to:
(1) Replace its existing low pressure vaporization system;
(2) Abandon the existing vaporization system and other related
facilities;
(3) Construct, own and operate a boll-off handling system and
ancillary facilities;
(4) Abandon its existing Rate Schedule X-4 service for The
Providence Gas Company (Providence Gas);
(5) Enter into an agreement under which Providence Gas would
provide firm displacement service for Algonquin LNG on behalf of
Algonquin LNG's other customers;
(6) Modify Rate Schedule FST-LG to provide for an incremental
reservation surcharge in order to recover the cost of the redelivery
service across Providence Gas's system; and,
(7) Any other authorization which may be deemed necessary for
implementation of the proposal contained herein.
To ensure an in-service date by the start of the 1999-2000 winter
heating season, Algonquin LNG requested a final certificate by May 1,
1999.
Algonquin LNG included in its application long-term Rate Schedule
FST-LG service agreements with Providence Gas, Boston Gas Company
(Boston Gas) and Consolidated Edison Company of New York (ConEd) as
follows:
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Maximum daily
Contract withdrawal
Customer storage quantity (Dth/ Contract term
quantity (Dth) d)
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Providence Gas............................... 600,000 95,000 10 years.
Boston Gas................................... 1,159,664 35,000 8 years.
ConEd........................................ 500,000 20,000 10 years.
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Totals................................... 2,259,664 150,000 .................................
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Algonquin LNG states that all of the storage capacity of the Algonquin
LNG Plant has been fully subscribed by the above customers.
Algonquin LNG proposes to enter into a single displacement
agreement with
[[Page 489]]
Providence Gas under which Algonquin LNG will transport customer
vaporization volumes from the Algonquin LNG Plant to points of
interconnection between Providence Gas and Algonquin LNG. In this
manner firm and interruptible open access customers of Algonquin LNG
will be able to obtain gas on the interstate pipeline grid with a
single vaporization nomination to Algonquin LNG.
In order to provide for redelivery of vaporization and boil-off
volumes to Boston Gas and ConEd, Algonquin LNG is proposing to obtain a
displacement service from Providence Gas, with a daily contract
quantity of 55,000 Dth of vaporization and 2,800 Dth of boil-off
quantities and an annual contract quantity of 1,659,664 Dth/d.
Providence Gas would charge Algonquin LNG a monthly demand charge of
$69,153. Providence Gas will also charge an overrun charge of $0.25 per
Dth for amounts displaced in excess of the annual contract quantities.
Algonquin LNG in turn proposes to charge firm customers who elect
displacement a reservation fee surcharge of $0.0417 per Dth per month
based on their respective in-tank capacities and $0.25 per Dth for
overruns in excess of the Contract Storage Quantity. Algonquin LNG's
interruptible displacement customers will pay $0.50 per Dth vaporized
which is a 100% load factor equivalent of the reservation surcharge.
The modifications proposed by Algonquin LNG are limited to the
Algonquin LNG Plant site and involve the replacement of various
Algonquin LNG Plant components and the addition of certain ancillary
facilities. Algonquin LNG states that truck receipts into and
deliveries from the Algonquin LNG Plant would not change.
Algonquin LNG proposes to add additional equipment and to replace
existing equipment at the Plant. The new facilities include a
vaporization system with a slight increase in deliverability,
replacement of the existing boil off system and certain improvements to
the control and monitoring facilities. Algonquin LNG states that except
for the increased capability of the new vaporization system, most of
the new facilities represent needed updates or normal additions to the
plant. Algonquin LNG intends to rebuild the existing LNG pumps, but in
the alternative, it will replace them if it should be determined after
inspection of the pump internals that replacement is more economical
than rebuilding. Two of the three new LNG vaporizers proposed will
replace the capacity of the existing three units.
Providence Gas has provided and been responsible for boil off
handling facilities. Under the proposed project, Algonquin LNG will
assume responsibility for the boil off handling system and will install
new piping, heat exchangers, compressors and a standby emergency
generator on the Algonquin LNG Plant site. With the exception of the
change in responsibility, this is simply a replacement of the existing
boil off system.
The majority of the remaining proposed facilities are replacements
for existing control and monitoring systems that are designed to
improve and update the control and monitoring capabilities at the
Algonquin LNG Plant. Algonquin LNG proposes to replace the existing
vaporizers and portions of the cryogenic piping downstream of the LNG
pumps and will remove that equipment from the site. No changes to the
storage tank capacity or facilities supporting trucking activity are
proposed. To ensure continued reliability Algonquin LNG intends to
conduct a thorough external inspection of the tank and perform any
necessary maintenance. Only limited non-jurisdictional facility changes
will be required by Providence Gas as a result of the proposals
included herein. Providence Gas will be required to make certain
modifications to its existing Allen Avenue plant regulator station. In
addition, Providence Gas plans to retire its boil off compressors and
certain structures.
All of these facilities are located on Providence Gas's land
adjacent to the Algonquin LNG Plant. Algonquin LNG states that its
existing land lease for the Algonquin LNG Plant site, effective October
1, 1971, terminates on its own terms by September 30, 2001. A new land
lease agreement is being negotiated which would become effective with
the proposed in-service date of November 1, 1999, and would provide for
a term of twenty years and an option by Algonquin LNG to extend the
land lease for an additional ten years. The new land lease will require
Algonquin LNG to provide monthly payments to Providence Gas of $20,000
through the term of the lease. In connection with the termination and
renegotiation of the various agreements with Providence Gas, Algonquin
LNG states it has agreed to pay Providence Gas a one-time payment of
$2.6 million, in addition to the lease payment and reservation fees
agreed upon by the parties.
Algonquin LNG proposes to provide service utilizing the new and
existing facilities under its existing open-access service Rate
Schedules FST-LG and IST-LG of its First Revised Volume No. I Tariff.
Algonquin LNG proposes certain tariff provisions to effectuate the new
services. Algonquin LNG states that it intends, in any future Algonquin
LNG rate proceeding, that the cost of the proposed facilities would be
included in Algonquin LNG's total rate base.
Algonquin LNG states that the environmental impact of the proposed
project will be minimal. All of the construction will take place within
a site that has been dedicated to industrial use for over a century.
The continuing impacts of the operation of the Algonquin LNG Plant
would be little affected by the proposed Algonquin LNG Plant
modifications. Most pumps, compressors and the emergency generator will
be housed in buildings that will mitigate noise impacts.
Any person desiring to be heard or making any protest with
reference to said application should on or before January 19, 1999,
file with the Federal Energy Regulatory Commission, 888 First Street,
NE, 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. The Commission's rules require that protestors provide
copies of their protests to the party or person to whom the protests
are directed. 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.
A person obtaining intervenor status will be placed on the service
list maintained by the Secretary of the Commission and will receive
copies of all documents issued by the Commission, filed by the
applicant, or filed by all other intervenors. An intervenor can file
for rehearing of any Commission order and can petition for court review
of any such order. However, an intervenor must serve copies of comments
or any other filing it makes with the Commission to every other
intervenor in the proceeding, as well as filing an original and 14
copies with the Commission.
A person does not have to intervene, however, in order to have
comments considered. A person, instead, may submit two copies of such
comments to the Secretary of the Commission. Commenters will be placed
on the Commission's environmental mailing list, will receive copies of
environmental documents, and will be
[[Page 490]]
able to participate in meetings associated with the Commission's
environmental review process. Commenters will not be required to serve
copies of filed documents on all other parties. However, commenters
will not receive copies of all documents filed by other parties or
issued by the Commission, and will not have the right to seek rehearing
or appeal the Commission's final order to a Federal court.
The Commission will consider all comments and concerns equally,
whether filed by commenters or those requesting intervenor status.
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
these applications 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 Algonquin LNG to appear or be represented at
the hearing.
Linwood A. Watson, Jr.,
Acting Secretary.
[FR Doc. 99-60 Filed 1-4-99; 8:45 am]
BILLING CODE 6717-01-U
