[Federal Register Volume 64, Number 238 (Monday, December 13, 1999)]
[Notices]
[Pages 69518-69520]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-32115]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket Nos. CP00-36-000, CP00-37-000, and CP00-38-000]
Guardian Pipeline, L.L.C.; Notice of Applications for
Certificates
December 7, 1999.
Take notice that on November 30, 1999, Guardian Pipeline, L.L.C.
(Guardian), Fairlane Plaza South, 330 Town Center Drive, Dearborn,
Michigan 48126-2712, filed an application in Docket No. CP00-36-000
pursuant to Section 7(c) of the Natural Gas Act (NGA) seeking a
certificate of public convenience and necessity to construct, install,
own, operate, and maintain a new interstate natural gas pipeline and
ancillary facilities. In Docket No. CP00-37-000, Guardian requests a
blanket certificate pursuant to Subpart F of Part 157 of the
Commission's regulations to perform certain routine activities and
operations. In addition, in Docket No. CP00-38-000, Guardian seeks a
blanket certificate pursuant to Subpart G of Part 284 of the
Commission's regulations to provide open-access transportation of
natural gas for others, all as more fully set forth in the applications
which are one 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 for assistance).
Guardian states that it is a limited liability company formed under
the laws of the State of Delaware, with its principle place of business
in Dearborn, Michigan. Guardian further states that it is jointly owned
by CMS Gas Transmission and Storage Company, Viking Gas Transmission
Company, and WICOR, Inc.
Guardian states that, in accordance with Order No. 609, within
three days of filing its application, Guardian will provide notice to
directly affected and adjacent landowners notifying them that Guardian
filed its application. Guardian states that this notification will
include the information required by the Commission in Order No. 609.
Guardian states that its proposed pipeline system will be comprised
of approximately 140.3 miles of new 36-inch natural gas transmission
pipeline extending from the Chicago Hub near Joliet, Illinois to a
terminus near Ixonia, Wisconsin. Guardian states that it will also
construct an 8.5-mile-long, 16-inch Eagle Lateral off its mainline at a
point near Eagle, Wisconsin. At Ixonia, Guardian proposes to
interconnect with nonjurisdictional facilities to be constructed,
owned, and operated by Wisconsin Gas Company (Wisconsin Gas), a local
distribution company exempt from the Commission's regulation under the
Hinshaw amendment to the NGA. At Eagle, via its Eagle Lateral, Guardian
proposes to interconnect with the existing non-jurisdictional Eagle
pipeline, jointly owned by Wisconsin Gas and Wisconsin Electric Power
Company.
Guardian states that it will provide up to 750,000 Dth/d of
transportation service in a cost-effective, safe and environmentally
responsible manner from the multiple gas supply sources and competitive
upstream transportation, storage and related service providers at the
Chicago Hub. Guardian estimates that the total cost of constructing the
pipeline and appurtenant facilities will be approximately $224.3
million.
Guardian proposes an in-service date of November 1, 2002. To meet
its targeted in-service date, Guardian requests that the Commission
issue a Preliminary Determination on non-environmental issues on or
before May 15, 2000, a Draft Environmental Impact Statement in
September 2000, a Final Environmental Impact Statement in January 2001,
and final certificate authorization on or before March 1, 2001.
Guardian contends that issuance of the requested certificates by
March 1, 2001 is necessary to ensure that Guardian has adequate time to
secure rights-of-way and to construct its pipeline to meet its November
1, 2002 in-service date and satisfy its agreements with its shippers.
Guardian states that it has been advised by one of its shippers that
the existing long-term contracts with the shipper's existing pipeline
supplier begin expiring on their own terms on October 31, 2003.
Guardian states that it has been further advised that such shipper must
give notices of intent as to the roll-over of the contracts on or
before October 31, 2001. According to Guardian, this shipper requires
regulatory certainty that Guardian will be able to meet its in-service
date before it is required to provide such contract notices to the
existing pipeline supplier.
In addition to its mainline and Eagle Lateral, Guardian states that
it will also construct and operate an Alliance Meter Station and
Launcher Facility in Will County, Illinois; a 100-foot-long, 30-inch
Northern Border Interconnect Pipeline and Meter Station in Will County,
Illinois; a 550-foot-long, 24-inch Midwestern Gas Interconnect Pipeline
and Meter Station in Will County, Illinois; a 200-foot-long, 16-inch
Natural Gas Pipeline Company of America Interconnect Pipeline and Meter
Station in Will County, Illinois; a 25,080 horsepower (hp) Joliet
Compressor Station in Will County, Illinois; an Eagle Lateral Tap Valve
and Launcher Facility at the beginning of the Eagle Lateral in Walworth
County, Wisconsin; an Eagle Meter Station and Receiver Facility in
Waukesha County, Wisconsin; a Northern Natural Meter Station in
Walworth County, Wisconsin; and an Ixonia Meter Station and Receiver
Facility in Jefferson County, Wisconsin.
According to Guardian, its application meets the requirements of
the Commission's recently-issued
[[Page 69519]]
regulations regarding certificate applications promulgated in Order No.
603 as well as the standards set forth in the Commission's Statement of
Policy issued in Docket No. PL99-3-000. Specifically, Guardian states
that, as a new pipeline, its project passes the Commission's ``no
subsidies'' test. Guardian further states that its project was
developed to eliminate or minimize impacts on the potentially affected
interests of existing customers, captive shippers of existing
pipelines, and landowners and the environment. Guardian contends that
the public benefits of its project are significant and outweigh any
adverse impacts that may remain despite Guardian's minimization of
those impacts. For all of these reasons, Guardian asserts that its
project is in the public convenience and necessity.
Guardian states that it held an open season in which it made
capacity on its system available to interested shippers on a
nondiscriminatory basis. As a result Guardian states that it executed
binding precedent agreements with four shippers for 702,500 Dth/d of
firm transportation service. Guardian asserts that the executed
precedent agreements demonstrate that there is market demand for
natural gas transportation service on Guardian from the Chicago Hub to
markets in northern Illinois and Wisconsin. Guardian further asserts
that the market study included in Exhibit I to its application
demonstrates that projected growth in gas demand in the Wisconsin and
northern Illinois markets support its project.
Based on executed precedent agreements to date, Guardian proposes
to provide firm transportation service for the following shippers:
------------------------------------------------------------------------
Volume Term
Shippers (Dth/d) (years)
------------------------------------------------------------------------
Wisconsin Gas Company......................... 650,000 10
Alliant Energy................................ 10,000 10
WPS Energy Services, Inc...................... 2,500 10
Shipper A (confidential)...................... 40,000 10
------------------------------------------------------------------------
Guardian proposes to provide open access firm transportation
service under Rate Schedule FT-1, and interruptible transportation
service under Rate Schedule IT-1, under rates, terms, and conditions
set forth in its pro forma tariff submitted with its application.
Guardian proposes to offer both negotiated and recourse rates. Guardian
explains its recourse rates are traditional cost-of-service based
rates, designed under the straight-fixed variable method. Guardian
contends that its negotiated rates are different from its recourse
rates in that Guardian offered to all shippers in its open season the
option to elect, instead of recourse rates, either (i) a 10-year or 15-
year fixed rate, or (ii) an annual declining rate for a minimum term of
10 years up to a maximum term of 15 years. Guardian says that during
its open season process it offered firm shippers the choice of
negotiated or recourse rates and each shipper who executed a precedent
agreement elected negotiated rates.
Guardian estimates the total capital cost of constructing the
pipeline and appurtenant facilities will be approximately $224.3
million, excluding AFUDC. Of the total estimated capital construction
cost, Guardian states that $196.3 million relates to pipeline and
ancillary facilities, and $28.0 million relates to a compressor
station. Guardian says that to date, its project has been financed by
equity furnished by the project sponsors. Guardian states that,
following issuance of the Commission's certificate order, it
anticipates that the project will be financed during the remainder of
the construction phase through debt capital, with the debt raised in
the commercial bank market. Guardian's anticipated initial capital
structure on the in-service date will be 70% debt and 30% equity, and
with an 8.25% cost of debt and 14% return on equity. Guardian expects
that the credit support for the debt will be the shipper contracts and
the debt will be non-recourse to project sponsors during the initial
term of the shipper contracts. Guardian states that it has not yet
finalized precise financing plans.
Guardian further requests that the Commission grant any waivers of
its regulations that the Commission may deem necessary to grant the
relief requested herein.
Guardian states that, in accordance with Order No. 603, the name,
address, and telephone number for a Guardian contact person is: Ms.
Molly Mulroy, Guardian Pipeline, L.L.C., 835 Virginia Road, Unit B,
Crystal Lake, Illinois 60014, 1-800-782-7182.
Any person desiring to be heard or to make protest with reference
to said application should on or before December 28, 1999, file with
the Federal Energy Regulatory Commission, 888 First Street, NE,
Washington, DC 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 or 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
list maintained by 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 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,
[[Page 69520]]
whether filed by commenters or those requesting intervener 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 Guardian to appear or be represented at the
hearing.
Linwood A. Watson, Jr.,
Acting Secretary.
[FR Doc. 99-32115 Filed 12-10-99; 8:45 am]
BILLING CODE 6717-01-M
