[Federal Register Volume 59, Number 208 (Friday, October 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-26706]
[Federal Register: October 28, 1994]
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DEPARTMENT OF ENERGY
[Docket No. CP95-18-000, et al.]
Natural Gas Pipeline Co. of America et al.; Natural Gas
Certificate Filings
Dated: October 19, 1994.
Take notice that the following filings have been made with the
Commission:
1. Natural Gas Pipeline Company of America; Columbia Gas
Transmission Corporation; Columbia Gulf Transmission Company
[Docket No. CP95-18-000]
Take notice that on October 13, 1994, Natural Gas Pipeline Company
of America (Natural), 701 East 22nd Street, Lombard, Illinois 60148,
Columbia Gas Transmission Corporation (Columbia Gas) and Columbia Gulf
Transmission Company (Columbia Gulf), P.O. Box 1273, Charleston, West
Virginia 25325, filed in Docket No. CP95-18-000 a joint application
pursuant to Section 7(b) of the Natural Gas Act for permission and
approval to abandon certain natural gas transportation and exchange
services, all as more fully set forth in the application on file with
the Commission and open to public inspection.
A. Abandonment of Transportation Authorized in Docket No. CP80-39
Natural proposes to abandon an interruptible transportation service
for Columbia Gas performed under Natural's Rate Schedule X-113 and
authorized in Docket No. CP80-39.1 Natural states that the
transportation agreement dated September 17, 1979, provides for
Columbia Gas to deliver to Natural up to 70,000 Mcf of natural gas per
day at the onshore terminus of the U-T Offshore System near Johnson's
Bayou in Cameron Parish, Louisiana. Natural further states that the
agreement provides for it to redeliver equivalent volumes of natural
gas to Columbia Gulf, for the account of Columbia Gas, at Texaco's
Henry Gas Plant in Vermilion Parish, Louisiana.2
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\1\See 11 FERC 61,266 (1980).
\2\It is stated that upon receipt of gas for Columbia Gas,
Columbia Gulf redelivers the gas to Columbia Gas at Leach in Boyd
County, Kentucky, pursuant to authorization issued in Docket No. G-
15524 (20 FPC 681 (1958)).
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B. Abandonment of Exchange Authorized in Docket No. CP80-432
Natural, Columbia Gas and Columbia Gulf (the parties) propose to
abandon an exchange service performed under Natural's Rate Schedule X-
124, Columbia Gas' Rate Schedule X-106 and Columbia Gulf's Rate
Schedule X-80, jointly authorized in Docket Nos. CP80-432 and CP81-185,
as amended.3 It is stated that pursuant to a natural gas exchange
and interim transportation agreement dated June 25, 1980, up to 8,000
Mcf of gas per day of Natural's gas produced in Vermilion Blocks 277
and 287 and East Cameron Block 354, all offshore Louisiana, is
exchanged with Columbia Gas, gas produced in South Marsh Island Block
265, offshore Louisiana.
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\3\See 18 FERC 62,492 (1982) and 34 FERC 62,287 (1986).
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It is explained that the agreement provides for Columbia Gas to
make available its South Marsh Island Block 265 gas to Natural, via ANR
Pipeline Company (ANR),4 in South Marsh Island Block 265. In
exchange, Natural delivers: (1) its Vermilion Blocks 277 and 287 gas to
Columbia Gulf in Vermilion Block 267, for the account of Columbia Gas,
and (2) its East Cameron Block 354 gas to Columbia Gulf in West Cameron
Block 601, for the account of Columbia Gas.
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\4\It is stated that ANR has received abandonment authorization
(65 FERC 62,028 (1993)) for the transportation service it
performed for Natural (15 FERC 61,072 (1981)).
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C. Abandonment of Transportation Authorized in Docket No. CP86-310
Natural proposes to abandon an interruptible transportation service
for Columbia Gas performed under Natural's Rate Schedule X-141
authorized in Docket No. CP86-310-000.5 It is stated that, under a
February 3, 1986, agreement, Natural receives for the account of
Columbia Gas up to 85,000 MMBtu of natural gas per day from Ozark Gas
Transmission System in White County, Arkansas, and redelivers the gas
for the account of Columbia Gas to Columbia Gulf at: (a) Pecan Lake in
Cameron Parish, Louisiana, (b) Texaco's Henry Gas Plant in Vermilion
Parish, Louisiana, and (c) Erath in Vermilion Parish, Louisiana.
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\5\See 34 FERC 62,461 (1986).
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D. Termination of Gas Transportation and Exchange Agreements
It is stated that by letter agreements dated November 9, 1993, (as
accepted by Natural by letter dated February 21, 1994), December 2 and
7, 1993, and a notice dated January 10, 1994, the parties agreed to
terminate the 1979, 1980, and 1986 agreements.
Further, the parties advise that upon obtaining abandonment
authorization, they would cancel:
(1) Natural's Rate Schedules X-113, X-124 and X-141,
(2) Columbia Gas' Rate Schedule X-106, and
(3) Columbia Gulf's Rate Schedule X-80.
Comment date: November 9, 1994, in accordance with Standard
Paragraph F at the end of this notice.
2. ANR Pipeline Company
[Docket No. CP95-20-000]
Take notice that on October 13, 1994, ANR Pipeline Company (ANR),
500 Renaissance Center, Detroit, Michigan 48243-1902, filed in Docket
No. CP95-20-000 a request pursuant to Sections 157.205 and 157.216(b)
of the Commission's Regulations under the Natural Gas Act (18 CFR
157.205 and 157.216(b)) for authorization to abandon the South Stevens
Point Meter Station located in Portage County, Wisconsin, under the
blanket certificate issued in Docket No. CP82-480-000, pursuant to
Section 7(b) of the Natural Gas Act, all as more fully set forth in the
request which is on file with the Commission and open to public
inspection.
ANR is seeking abandonment authority because the station consists
of two, 8-inch orifice meters which are oversized for the present
volume demand. ANR proposes to abandon the South Stevens Point Meter
Station because to use the station would require unnecessary and
expensive downsizing to provide accurate measurement. In Docket No.
CP94-713-000, ANR proposes to construct a new interconnection (Rosholt
Interconnection) to provide continued service to Wisconsin Public
Service Corporation (Public Service). ANR will continue to provide
service through the South Stevens Point Meter Station until the new
Rosholt Interconnection is in place and in service. ANR states that the
abandonment will not result in any interruption of service. Public
Service is the only customer served by this meter station. The cost of
the facilities to be abandoned is approximately $61,000.
Comment date: December 5, 1994, in accordance with Standard
Paragraph G at the end of this notice.
3. Panhandle Eastern Pipe Line Company
[Docket No. CP95-21-000]
Take notice that on October 14, 1994, Panhandle Eastern Pipe Line
Company (Panhandle), P.O. Box 1642, Houston, Texas 77001, filed an
application pursuant to Section 7(b) of the Natural Gas Act for
authority to abandon by sale to Anadarko Gathering Company (AGC) a
portion of Panhandle's pipeline and compressor facilities located in
Seward, Morton and Stevens Counties, Kansas and Texas County, Oklahoma,
and located west of its Liberal Compressor Station, and to abandon by
transfer to Panhandle Field Services Company (Field Services), its
subsidiary, 10 units of a compressor station located in Morton County,
Kansas, all as more fully set forth in the application which is on file
with the Commission and open to public inspection.
Panhandle states that, in a further effort to improve the
jurisdictional pipeline operations of the facilities located west of
its Haven, Kansas Compressor Station, the abandonment proposed herein
would enable Panhandle to streamline its jurisdictional operations, to
reduce its existing transportation rates and to assure producers and
shippers that gathering services in the future would not only continue
to be available but would be provided on a more efficient and
competitive basis.
Panhandle proposes to abandon by sale to AGC approximately 126
miles of pipeline, ranging in size of 6-inch to 26-inch in diameter, 7
compressor stations, and 8 measuring and regulating stations, as more
fully described in Exhibits Z-1 and Z-2 of its application. Panhandle
states that the facilities would be sold at the book value of the
facilities, $22,700,000. Panhandle also states that, in addition to the
purchase price, AGC has also agreed to pay Panhandle $4.0 million to
cover environmental-related costs and $1.3 million to cover the costs
associated with the modifications to the Elkhart Station.
It is indicated that Panhandle states that the purchase of its
Hugoton Area facilities by AGC, who currently has a gathering system in
a portion of the Hugoton Area, the HUGS System, would eliminate the
need for the further construction by AGC of duplicative facilities and
would allow Panhandle to continue its effort to utilize and operate its
system in the most efficient manner and in an effort to continue
providing the best service it can to its customers. Panhandle further
states that the authorization of the abandonment would serve the public
interest by reducing jurisdictional rate base and related cost of
service, thereby having an impact on Panhandle's current Field Zone
transmission rates.
Panhandle also proposes to abandon by transfer to Field Services 10
units at the Elkhart Compressor Station located in Morton County,
Kansas. Panhandle indicates that, if the remaining units at the station
were not transferred to Field Services, they would become a non-
contiguous isolated compressor station in the middle of gathering
systems operated by AGC and Field Services. Panhandle states that these
facilities would be transferred to Field Services at the net book value
of those facilities, $1,472,440.
Comment date: November 9, 1994, in accordance with Standard
Paragraph F at the end of this notice.
4. Anadarko Gathering Company
[Docket No. CP95-22-000]
Take notice that on October 14, 1994, Anadarko Gathering Company
(AGC), 17001 Northchase Drive, Houston, Texas 77251, filed a petition
for declaratory order in Docket No. CP95-22-000, as supplemented on
October 17, 1994, requesting that the Commission declare that AGC's
proposed acquisition, ownership, and operation of certain natural gas
gathering systems and other facilities currently owned by Panhandle
Eastern Pipe Line Company (Panhandle) would not subject AGC or any
portion of its facilities or services to the jurisdiction under 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.
AGC seeks a declaratory order finding that:
The facilities described in its petition that AGC wishes
to acquire from Panhandle will be gathering facilities exempt from the
Commission's jurisdiction pursuant to Section 1(b) of the Natural Gas
Act;
AGC will not be a ``natural gas company'' pursuant to
Section 2 of the Natural Gas Act by virtue of its proposed acquisition,
ownership, and operation of such facilities;
The gathering services to be performed by AGC will be non-
jurisdictional gathering services exempt from the Commission's
jurisdiction under Section 1(b) of the Natural Gas Act; and
AGC's rates, and charges for gathering services will not
be subject to the Commission's jurisdiction pursuant to Sections 4 and
5 of the Natural Gas Act.
AGC states that it is a wholly-owned subsidiary of Anadarko
Petroleum Corporation (Anadarko). AGC indicates that it would acquire
facilities directly from Panhandle as well as facilities currently
owned by Panhandle but proposed in Docket No. CP94-151-000 to be
transferred to Panhandle Field Services Company, Panhandle's affiliate.
It is indicated that recently Panhandle and AGC (APC) concluded
negotiations concerning the sale to AGC of Panhandle's Hugoton System.
It is indicated that AGC's affiliate, Anadarko Petroleum Corporation
(Anadarko) produces approximately 76 percent of the natural gas
connected to the subject facilities. AGC states that, subsequent to the
transfer of facilities by Panhandle, it would upgrade the subject
facilities to maximize productive capacities of the wells connected to
the system. AGC also indicates that it would offer continuity of
service to all existing gathering customers.
It is argued that the facilities to be transferred to AGC meet the
physical and non-physical criteria for determining gathering as set
forth in Farmland Industries, Inc., 23 FERC 61.063 (1983), as
modified by subsequent Commission orders. AGC states that the vast
majority of the 1,147 miles of pipe are short in length and range from
2 to 26 inches in diameter, with 71 percent being 10 inches or less in
diameter. AGC indicates that of the 29 percent of the facilities 12
inches in diameter or larger, all but 31 miles of the pipe are located
behind field booster stations. AGC also indicates that the 31 miles of
pipe on the discharge side of the Hugoton Compressor Station still
serve to aggregate area gas production. Also, AGC submits that all of
the facilities are located upstream of the Liberal Compressor Station,
which it indicates is the central point in the field.
In addition, AGC states that virtually all of the gathering systems
are web-like or rib-like in configuration, with the facilities being
located in a production area forming a network of short-length
pipelines originating at wells and connecting to aggregation points. It
is also indicated that the gathering facilities contain a total of 57
field booster compressor stations. AGC indicates that the suction
pressures of the booster stations range from 30 to 375 psig, with 46 of
the 57 stations having a suction pressure of less than 100 psig. AGC
also states that wells are located all along the facilities. With
respect to the operating pressure of the lines, a review of the
operational pressures reveals that 87 percent of the pipelines operate
below 100 psig, 10 percent operate above 100 psig but less than 450
psig, and 31 miles of pipe operate at above 450 psig.
With respect to the non-physical criteria, AGC notes that Anadarko,
its affiliate is primarily engaged in the exploration and production of
natural gas and petroleum, with a working interest in 833 wells
attached to the subject facilities. AGC also indicates that substantial
effort would be expended to upgrade the gathering facilities to
maximize the efficient production on natural gas benefitting both
producers with wells connected to the gathering facilities and
consumers consistent with the objectives of the NGA, Natural Gas Policy
Act of 1978, and the Commission's Order No. 636.
AGC requests that its petition be consolidated with Panhandle's
abandonment application filed in Docket No. CP95-21-000 which involves
the abandonment by sale to Anadarko of a portion of the facilities at
issue in AGC's petition.
Comment date: November 18, 1994, in accordance with the first
paragraph of Standard Paragraph F at the end of this notice.
5. Panhandle Field Services Company
[Docket No. CP95-23-000]
Take notice that on October 14, 1994, Panhandle Field Services
Company (Field Services), 5400 Westheimer Court, Houston, Texas 77056-
5310 filed a petition for declaratory order in Docket No. CP95-23-000,
requesting that the Commission disclaim jurisdiction over services to
be performed by Field Services involving facilities to be acquired from
its affiliate, Panhandle Eastern Pipe Line Company (Panhandle), all as
more fully set forth in the petition which is on file with the
Commission and open to public inspection.
Field Services seeks a declaratory order finding that:
Panhandle's South Elkhart Station and related facilities
in Morton County, Kansas are facilities to be used for the gathering of
natural gas and therefore exempt from the Commission's jurisdiction
pursuant to Section 1(b) of the Natural Gas Act;
Field Services will not be a ``natural gas company''
pursuant to Section 2(6) of the Natural Gas Act by virtue of its
proposed acquisition, ownership, and operation of such facilities;
Field Services' rates, and charges for gathering services
will not be subject to the Commission's jurisdiction pursuant to
Sections 4 and 5 of the Natural Gas Act.
Field Services states that it is a wholly-owned subsidiary of
Panhandle and that the facilities at issue in this petition are the
subject of Panhandle's abandonment application filed in Docket No.
CP95-21-000.
It is indicated that recently Panhandle and Anadarko Gathering
Company (AGC) concluded negotiations concerning the sale to AGC of
Panhandle's Hugoton System. Field Services states that the sale of the
Hugoton System to AGC includes a portion of the Elkhart Compressor
Station in Kansas. It is stated that Panhandle proposes to sell a part
of the Elkhart Station facilities to AGC and the remainder would be
transferred to Field Services with Field Services operating its portion
of the Elkhart Station facilities in conjunction with the other
gathering facilities it is acquiring from Panhandle.
It is also stated that, as currently configured, the Elkhart
Station is located in Morton County, Kansas immediately downstream of
gathering facilities which are the subject of the Panhandle and Field
Services' filings in Docket Nos. CP94-151-000 and CP94-152-000,
respectively. Field Services indicates that the Elkhart Station is
divided by a county road, but the two portions are currently
integrated. It is also stated that, as a result of the sale of the
Panhandle Hugoton System to AGC, Panhandle proposes to split the
Elkhart Station between AGC and Field Services. It is indicated that
Panhandle would transfer the portion south of the county road,
consisting of four 1,028 horsepower two-stage skid-mounted compressors
and six 1,100 horsepower single-stage block-mounted compressors, to
Field Services. Field Services states that these facilities compress
the gas gathered on the Elkhart Gathering System for delivery into the
24-inch line to be transferred to AGC. Field Services states that the
portion of the facilities located north of the county road, consisting
of one 3,162 horsepower four-stage compressor, would be transferred to
AGC.
Field Services states that, subsequent to the transfer of
facilities by Panhandle, significant modifications would be undertaken
to separate completely the operation of the South Elkhart Station from
the North Elkhart Station so that the two would be operated
independently and would no longer be integrated. It is also indicated
that, upon the transfer of the Panhandle Hugoton Gathering System to
AGC and the transfer of the remaining gathering to Field Services, the
South Elkhart Station would not be contiguous with any other facilities
owned or operated by Panhandle.
Field Services argues that, as a matter of law, the facilities to
be transferred to Field Services are within the gathering and
production exemption of Section 1(b) of the Natural Gas Act because;
and that, after the reconfiguration of facilities, the sole function of
the South Elkhart Station would be to boost the pressure of the gas
produced behind the station from a suction pressure of 50 psig to a
pressure high enough (450 psig) so that the gas can be delivered into
the 24-inch discharge line.
Comment date: November 18, 1994, in accordance with the first
paragraph of Standard Paragraph F at the end of this notice.
Standard Paragraphs
F. Any person desiring to be heard or to make any protest with
reference to said application should on or before the comment date,
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/or 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 applicant to appear or be represented at the
hearing.
G. Any person or the Commission's staff may, within 45 days after
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 therefor,
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. 94-26706 Filed 10-27-94; 8:45 am]
BILLING CODE 6717-01-P
