[Federal Register Volume 63, Number 38 (Thursday, February 26, 1998)]
[Notices]
[Pages 9784-9785]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-4897]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket No. CP87-39-005]
Granite State Gas Transmission, Inc.; Notice of Amendment
February 20, 1998.
Take notice that on February 13, 1998, Granite State Gas
Transmission, Inc. (Granite State), 300 Friberg Parkway, Westborough,
Massachusetts 01581, filed an application with the Commission, pursuant
to Section 7(c) of the Natural Gas Act and Part 157 of the Commission's
regulations, requesting an extension to April 30, 1999, of the limited-
term certificate to operate an interstate pipeline facility leased from
Portland Pipe Line Corporation (Portland), with pregranted abandonment,
consistent with a recently negotiated agreement between Granite State
and Portland to extend the lease of the pipeline facility. Granite
State further requests the Commission to confirm that the amended lease
will not convert Portland into a jurisdictional natural gas company and
that the revenues received by Portland from the amended lease will not
be considered in deriving Portland's rates for the transportation of
oil, all as more fully set forth in the application which is on file
with the Commission and open to public inspection.
According to Granite State, it has leased from Portland an 18-inch
pipeline extending approximately 166 miles from a connection with its
pipeline near Portland, Maine, to the U.S-Canadian border in the
Township of North Troy, Vermont, opposite Highwater, Quebec. The
pipeline was originally built and operated as a crude oil pipeline;
Granite state converted the pipeline for natural gas service in 1987
(40 FERC para. 61,165); operated the pipeline pursuant to an amended
lease with Portland and a limited-term certificate issued by the
Commission expiring March 31, 1997 (69 FERC para. 61,186). Granite
State further says that it currently operates the pipeline pursuant to
a second amended lease with Portland and a limited-term certificate
issued by the Commission expiring April 30, 1998 (76 FERC para.
61,247).
Granite State states that it has negotiated a third extension of
the lease with Portland for 12-months, to April 30, 1999, to ensure
that the leased Portland pipeline will be in standby availability for
use during the 1998-99 winter season, if the recently certificated
pipeline proposed by
[[Page 9785]]
Portland Natural Gas Transmission System (PNGTS) is not completed and
ready for service by November 1, 1998, in order to provide continuous
firm transportation services for its customers, Bay State Gas Company
(Bay State) and Northern Utilities, Inc. (Northern Utilities). Granite
State also says that Bay State and Northern Utilities have
independently proposed to replace the seasonal base load gas supplies
delivered over the leased pipeline with transportation capacity that
each has reserved on PNGTS. Granite State further states that it has
the option to terminate the proposed third lease extension by notice to
Portland 90 days (August 1, 1998) prior to November 1, 1998, if it
develops during the spring and summer of 1998 that PNGTS is actually
being constructed on schedule for completion by November 1, 1998.
According to Granite State, no new facilities are required to operate
the leased pipeline during the extension of the lease, and no new
services are proposed in the application.
According to Granite State, the principal provisions of the third
lease extension shows that Granite State, whether or not it exercises
the option to terminate the extension early, will have to pay Portland:
(1) A one-time payment of $1,500,000 on October 25, 1998 for the
opportunity to hold the pipeline available for use in natural gas
transportation beginning November 1, 1998; and (2) $8,500,000
reimbursement toward the cost of reconverting the leased line to oil
transportation service. Granite State also says that the other
provisions of the third lease extension, which are discussed in the
application, include the: (1) Time when the leased line will be idled
(May 1 through October 31, 1998) for pre-conversion work by Portland;
and (2) rental costs which include fixed costs and contingent
obligations. Granite State further says that costs related to the third
lease extension will not be recovered in the present rates and Granite
State intends to file a Section 4 rate filing no later than May 1, 1998
to propose an increase in its rates to recover the costs of the third
lease extension.
Any person desiring to be heard or to make any protest with
reference to said application should on or before March 13, 1998, 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 385.214 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 on the request for a permanent certificate but will not serve to
make the protestants parties to the proceeding. Any person wishing to
become a party to the 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 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
the application, if no motion to intervene is filed within the time
requested herein, and if the Commission on its own review of the matter
finds that a grant of the certificate is required by public convenience
and necessity. If a motion for leave to intervene is timely filed, or
if the Commission on its own 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 Granite State to appear or be represented at
the hearing.
David P. Boergers,
Acting Secretary.
[FR Doc. 98-4897 Filed 2-25-98; 8:45 am]
BILLING CODE 6717-01-M
