[Federal Register Volume 63, Number 249 (Tuesday, December 29, 1998)]
[Notices]
[Page 71633]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-34353]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket No. CP99-109-000]
Koch Gateway Pipeline Company; Notice of Application
December 22, 1998.
Take notice that on December 10, 1998, Koch Gateway Pipeline
Company (Koch Gateway), Post Office Box 1478, Houston, Texas 77521-
1478, filed in Docket No. CP99-109-000 an application pursuant to
section 7(b) of the Natural Gas Act, for permission and approval to
abandon by sale to MidCoast Gas Pipeline, Inc. (MidCoast), a Texas
intrastate pipeline company, certain transmission and gathering
facilities located in southern Texas, all as more fully set forth in
the application which is on file with the Commission and open to public
inspection.
Koch Gateway requests authorization to abandon, by sale to
MidCoast, approximately 130 miles of various size transmission pipeline
and metering facilities, as well as certain certificated gathering
facilities, located in Bee, Live Oak, Jim Wells, San Patricio, Nueces
and Duval Counties, Texas, referred to as Indexes 23, 50 and 85; and,
collectively referred to herein as the Bruni System. Koch Gateway
states that these facilities are no longer economically justified as a
part of its interstate pipeline system. Koch Gateway further states
that the facilities are not located near its other productive pipeline
assets and that Koch Gateway has no plans to expand its natural gas
service in the area served by the assets proposed for abandonment. In
addition, Koch Gateway states that the operation and maintenance costs
of the Bruni System are relatively high and are not proportionate to
the revenue generated by the facilities. Koch Gateway states that
abandonment of the facilities will reduce operating and maintenance
costs on its system and will result in the transfer of under-utilized
facilities to an entity that can more efficiently and profitably employ
them in providing economical and reliable natural gas transportation
service. It is stated that the Purchase and Sale Agreement provides
that Koch Gateway will sell the above facilities to MidCoast for
$525,000.
Koch Gateway states that it currently utilizes the facilities
proposed for abandonment to provide gathering and firm transportation
services to a single customer, Entex, Inc. (Entex), a local
distribution company and delivers natural gas to various farm taps and
small city-gates on behalf of Entex. It is stated that Entex does not
oppose the proposed abandonment and has reached agreement with MidCoast
for continued natural gas service. Koch Gateway states that it proposes
to provide 30-day written notice to all affected interruptible
gathering and transportation customers. It is stated that after the
sale of the assets, MidCoast intends to offer interruptible gathering
and transmission services at negotiated rates.
Koch Gateway states that it currently provides a no-cost pooling
service and shippers who select such service can pool their gas
receipts at a theoretical pooling point. It is stated that in this
region, the pooling point is designated as the Refugio Pooling Point.
Koch Gateway further states that there is currently no transportation
fee charged for transporting natural gas through transmission
facilities from receipt points to the related pooling point; however,
there is a gathering fee charged for receipt volumes moved through
gathering facilities. Koch Gateway states that after the sale of the
Bruni System, this service will still be available on its system. It is
stated that shippers will be able to pool receipt volumes from the
northeast terminus of Index 50 to the Refugio Pooling Point. Koch
Gateway explains that shippers selecting this service after the sale of
the Bruni System will pay a gathering and/or transportation fee to
MidCoast and, if they so choose, can still pool to the Refugio Pooling
Point for no additional transportation fee on Koch Gateway.
Any person desiring to be heard or to make any protest with
reference to said application should on or before January 12, 1999,
file with the Federal Energy Regulatory, 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 385.214 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 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 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 Koch Gateway to appear or be represented at
the hearing.
Linwood A. Watson, Jr.,
Acting Secretary.
[FR Doc. 98-34353 Filed 12-28-98; 8:45 am]
BILLING CODE 6717-01-M
