[Federal Register Volume 64, Number 215 (Monday, November 8, 1999)]
[Notices]
[Pages 60800-60802]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-29101]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket Nos. CP00-14-000, CP00-15-000, and CP00-16-000]
Buccaneer Gas Pipeline Company, L.L.C.; Notice of Applications
for Certificates
November 2, 1999.
Take notice that on October 28, 1999, Buccaneer Gas Pipeline
Company, L.L.C. (Buccaneer or Applicant), Post Office Box 1396,
Houston, Texas 77251, filed an application in Docket No. CP00-14-000
pursuant to and in accordance with Section 7(c) of the Natural Gas Act
(NGA) and the optional certificate procedures of Part 157(E) of the
Federal Energy Regulatory Commission's (Commission) regulations, for a
certificate of public convenience and necessity authorizing the
construction and operation of natural gas pipeline, compression,
measuring and other related facilities. On that same date Buccaneer
filed in Docket No. CP00-15-000 for a blanket certificate of public
convenience and necessity to render firm and interruptible
transportation services on an open access basis pursuant to Part 284(G)
of the Commission's regulations and for approval of initial rates.
Also, Buccaneer requests in Docket No. CP00-16-000 the issuance of a
blanket certificate of public convenience and necessity under Part
157(F) of the Commission's regulations authorizing certain facility
construction, operation and abandonment,\1\ all as more fully set forth
in the applications which are on file with the Commission and open to
public inspection. This filing may be viewed on the web at http://
www.ferc.us/online/rims.htm (call 202-208-2222).
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\1\ On September 30, 1999, Buccaneer previously filed for
certificate authorization to construct and operate these same
facilities and for blanket authorization under Part 284, Subpart G
and Part 157, Subpart F in Docket Nos. CP99-628-000, CP99-629-000,
and CP99-630-000, respectively. These applications were rejected
because of deficiencies in the environmental exhibits included in
Docket No. CP99-628-000.
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Pursuant to Section 157.102(b)(1) of the Commission's regulations,
Buccaneer (i) requests that the instant application be considered under
the optional procedures of Part 157(E) and (ii) agrees to comply with
all terms and conditions specified in Section 157.103.
Buccaneer requests that the Commission issue a preliminary
determination on the non-environmental aspects of this proposal
[[Page 60801]]
by February 1, 2000, and a final order granting the authorizations
requested herein by December 15, 2000. Buccaneer states that this
approval schedule is necessary to allow construction of the project to
be completed by April 1, 2002, the proposed in-service date for the
project. Buccaneer states that it is not currently engaged in any
natural gas transportation operations. Upon commencement of operations
proposed in this application, Buccaneer states that it will become a
``natural gas company'' within the meaning of Section 2(6) of the NGA
and, as such, will be subject to the jurisdiction of the Commission.
Buccaneer states that its natural gas pipeline project (``Buccaneer
Project'' or the ``Project'') is being proposed in response to the
rapidly growing market for natural gas service in the State of Florida,
where the natural gas requirements are expected to nearly double by the
year 2007. It is stated that the Project will be designed to transport
up to 900,000 dekatherms (dt) of natural gas per day. Buccaneer
estimates that the total cost of the Project will be $1,455,173,425.
Buccaneer is proposing a 75/25 debt to equity capital structure and
will seek non-recourse project financing.
Buccaneer states that the Project will consist of a new mainline
system which will commence in Mobile County, Alabama, and cross the
Gulf of Mexico to the west coast of Florida just north of Tampa. It is
stated that onshore, the pipeline will branch out in an easterly
direction to serve power generation plants and other markets across the
central part of the state. Buccaneer indicates that the pipeline system
will include a compressor station in Mobile County and a liquids
separation facility in Pasco County, Florida.
Specifically, the Buccaneer states that the Project will consist of
532.67-miles of 36-inch mainline pipeline in three major mainline
components: the Alabama Mainline, the Gulf of Mexico Mainline and the
Florida Mainline. It is stated that the 36-inch, 16.66 mile Alabama
Mainline will begin at Buccaneer's proposed Compressor Station 1 which
will be co-located with the existing compressor station of
Transcontinental Gas Pipe Line Corporation (Transco) in Mobile County,
Alabama and will include a 4.14-mile segment in Mobile County and a
12.52-mile segment in Alabama state waters, and will end at the
boundary between the Alabama state waters and federal waters in Mobile
Block 822, Offshore Alabama. Buccaneer states that the Gulf of Mexico
Mainline will consist of 376.77 miles of 36-inch mainline pipeline
beginning in Mobile Block 822, traversing the Mobile, Pensacola, Destin
Dome, Apalachicola, Florida, Middle Ground and Tarpon Springs Areas,
and ending at the boundary between federal waters and Florida state
waters in Tarpon Springs Block 901. Buccaneer indicates that the
Florida Mainline will consist of 139.24 miles of 36-inch mainline
pipeline beginning in Tarpon Springs Block 901, traversing Pasco, Polk
and Osceola Counties, Florida, and ending at the Project's milepost
20.68 in Orange County, Florida, where the mainline will branch into
16-inch and 30-inch laterals.
Buccaneer states that the 36-inch mainline mileposts are continuous
from Compressor Station 1 in Mobile County, Alabama to the liquids
separation facility in Pasco County, Florida. It is indicated that the
Florida Mainline consists of the Pasco, Polk, Osceola and Orange County
Mainlines and has a milepost system that begins at the boundary of each
Florida county. Buccaneer states that there will be three major lateral
systems and five small laterals which will branch from the Florida
Mainline. Buccaneer states that the 30-inch, 37.99-mile Tiger Bay Plant
Lateral will begin at milepost 20.58 on the Polk County Mainline and
will extend southward, where 20-inch extensions of the Tiger Bay Plant
Lateral will be constructed to deliver gas to the Hines, Polk and Payne
Creek Plants.
It is stated that the 24-inch, 46.60-mile Leesburg Plant Lateral
will begin at milepost 32.87 on the Polk County Mainline and will
extend northward into Lake County. It is further stated that the 34.68-
mile Oleander Plant Lateral will consist of 30-inch and 24-inch
pipeline beginning at milepost 20.68 on the Orange County Mainline and
extending to the east into Brevard County. It is also indicated that
the 18-inch Indian River and Cape Canaveral Plant Laterals will be
extensions of the Oleander Plant Lateral at its eastern end. Buccaneer
states that additional 16-inch laterals will be constructed from
various portions of the Florida Mainline to deliver gas to the Anclote,
Intercession City, Cane Island and Stanton Plants and to the City of
Lakeland, Florida.
Buccaneer states that it also will construct a new 75,000
horsepower compressor station (referred to as Buccaneer's Compressor
Station 1) which will be co-located with Transco's existing Compressor
Station 82 in Mobile County, Alabama, and will include a compressor
building with five 15,000 horsepower gas turbine-driven gas
compressors. It is stated that a metering and regulating (M&R) station
also will be constructed at the station to measure gas delivered into
the Buccaneer mainline.
Buccaneer also proposes to construct a liquids separation facility
at Anclote in Pasco County, Florida to collect liquids that have
condensed in the pipeline due to temperature and pressure drop. The
facility will be sited on a 68-acre tract, immediately north of Florida
Power corporation's Anclote Plant, and a 290 foot, single-span bridge
will be constructed across the Anclote Power Plant cooling water
outflow channel to access the site. Buccaneer also proposes to
construct M&R stations at each of the 13 proposed delivery points.
It is stated that the facilities will be constructed and operated
by Buccaneer's affiliate, Buccaneer Operating Company. Buccaneer states
that the construction and operation of the Buccaneer pipeline system
will have no significant impact on the quality of human health or the
environment. Buccaneer certifies that the proposed facilities will be
designed, constructed, operated and maintained in accordance with all
applicable safety standards and plans for maintenance and inspection.
Buccaneer proposes to provide a firm transportation service under
Rate Schedule FTS, an interruptible transportation service under Rate
Schedule ITS and a parking and lending service under Rate Schedule PAL,
under rates, terms and conditions in its pro forma tariff included with
the application. Buccaneer states that the shippers subscribing to its
firm transportation service will be given the option of paying a
negotiated rate or a cost-based recourse rate for service under its
firm rate schedule. Buccaneer proposes that the initial recourse rate
for its firm transportation service under Rate Schedule FTS will be a
daily reservation rate of $0.7690 per dt, which is based on the
straight fixed-variable rate design methodology. It is stated that the
initial recourse rate for interruptible transportation service under
Rate Schedule ITS and parking and loan service under Rate Schedule PAL
will be a commodity rate of $0.7690 per dt. Buccaneer states that its
customers also will be charged fuel and retainage and the ACA surcharge
as set forth in its tariff.
Buccaneer states that it is proposing a capital structure
consisting of 75 percent debt and 25 percent equity. Buccaneer
indicates that it assumes that the debt will bear interest at the rate
of 4.0 percent for a term of 25 years. Buccaneer states, however, that
it plans to seek the most favorable financing terms available in the
marketplace at the time the project is financed. Buccaneer
[[Page 60802]]
proposes that the equity component of its capital structure earn a
return of 14 percent, producing an overall after-tax return of 9.88
percent on Buccaneer's proposed capital structure. Buccaneer states
that its proposed return on equity and capital structure are consistent
with recent Commission orders on major construction projects, two of
which (Vector Pipeline L.P. and Alliance Pipeline L.P.) involve
optional certificate applications.
Buccaneer asserts that approval of the instant application is
required by the public convenience and necessity for the following
reasons:
A. As one of the fastest growing states in the country, Florida
projects that it will need over 10,000 megawatts of additional
electricity in the state by the year 2007 to keep up with its growing
population. Additional power generation capacity will be required to
meet this need and to avoid the electricity curtailments that Florida
experienced during the summer of 1998. It is expected that a vast
majority of this additional power generation will be fueled by natural
gas, thus placing natural gas in a pivotal, growing role in the
development of Florida's new and existing electric power generation
plants. For natural gas to fulfill that role, the Florida Peninsula
will require approximately twice the 1.5 million dt per day of pipeline
capacity currently provided by its only existing interstate pipeline.
The Buccaneer Project will help serve that requirement by providing
900,000 dt per day of new pipeline capacity to the state.
Moreover, the need for compliance with the Clean Air means that
existing industrial and commercial plants, which are now coal or oil
fueled, will be encouraged to switch to natural gas as their primary
fuel source. An increased supply of clean burning natural gas can
displace massive amounts of coal and heavy oil that would otherwise be
required for heating, cooling and generating electricity. The
environmental benefits are clear.
Natural gas emits virtually no sulfur dioxide or particulate
matter, very little nitrogen oxides and much less carbon dioxide than
other fossil fuels.
B. Section 157.104(c) of the Commission's regulations establishes a
rebuttable presumption that an optional certificate applicant's project
is required by the public convenience and necessity. Specifically, if
an applicant complies fully with the requirements of Sections 157.102
and 157.103 of the regulations, it is presumed that:
(1) The applicant is qualified to perform all the activities for
which certificate authorization is requested;
(2) The applicant is willing and able to perform acts and provide
service, as proposed, and to comply with the NGA and any applicable
regulations thereunder; and
(3) The proposed new service is or will be required by the present
or future public convenience and necessity.
Buccaneer states that it has complied with the filing requirements
of Section 157.102 and has satisfied the terms and conditions of
Section 157.103. In addition to satisfying these specific requirements
of the optional certificate regulations, Buccaneer indicates that the
Buccaneer Project furthers the Commission's goals of the optional
certificate program, which sought (1) to provide the full benefits of
competition to consumers by facilitating easier entry and exit from
services, (2) to ensure the most efficient scale of facilities by
removing certification as a barrier to entry, and (3) to provide
incentives for competition where none exists by maximizing the use of
alternative market access for producers and consumers. Buccaneer states
that it will promote these goals as a new market entrant, providing
additional markets for producers and enhancing competition in the State
of Florida.
It is further indicated that the Project will further enhance the
security of natural gas supplies to Florida, given that Buccaneer has
complied with the requirements and furthers the goals of optional
certificate regulations.
Any person desiring to be heard or to make protest with reference
to said application should on or before November 23, 1999, 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 or 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. The Commission's rules require that protestors provide
copies of their protests to the party to parties directly involved. 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
last maintained by the Commission and will receive copies of all
documents filed by the Applicant and by every one of the intervenors.
As intervenor can file for rehearing of any Commission order and can
petition for court review of any such order. However, an intervenor
must submit copies of comments or any other filing it makes with the
Commission to every other intervenor in the proceeding, as well as 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
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 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 jurisdiction conferred upon the Commission by Sections 7
and 15 of the NGA 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 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 Buccaneer to appear or be represented at the
hearing.
David P. Boergers,
Secretary.
[FR Doc. 99-29101 Filed 11-5-99; 8:45 am]
BILLING CODE 6717-01-M
