[Federal Register Volume 61, Number 28 (Friday, February 9, 1996)]
[Notices]
[Pages 4990-4992]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-2774]
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DEPARTMENT OF ENERGY
[Docket No. CP96-152-000, et al.]
Riverside Pipeline Company, L.P., et al., Natural Gas Certificate
Filings
February 1, 1996.
Take notice that the following filings have been made with the
Commission:
1. Riverside Pipeline Company, L.P.
[Docket No. CP96-152-000]
Take notice that on January 23, 1996, Riverside Pipeline Company,
L.P. (``Riverside''), 8325 Lenexa Drive, Suite 400, Lenexa, Kansas
66214, filed, pursuant to Section 7(c) of the Natural Gas Act
(``NGA''), 15 U.S.C. Sec. 717f(c), Part 157 of the Commission's
Regulations, and the Commission's directive in KansOk Partnership, et
al., 73 FERC para. 61,160 (1995) (``November 2 Order''), an application
for a certificate of public convenience and necessity authorizing the
operation of certain pipeline facilities in Kansas, Oklahoma, and
Missouri found to constitute an interstate pipeline system. The
application includes proposed initial rates and a proposed FERC Gas
Tariff setting forth terms and conditions of service in compliance with
Order No. 636. In addition, Riverside requests (1) a blanket
certificate authorizing unbundled firm and interruptible sales pursuant
to Section 284.284 of the regulations, and (2) a blanket certificate
authorizing certain construction and operation of facilities, sales
arrangements, certificate amendments, and abandonments pursuant to
Section 157.201, et seq. of the regulations.
Riverside states that, as required by the Commission's November 2
Order, it seeks a certificate under NGA Section 7 and Part 157 of the
Commission's Regulations to operate the pipeline facilities now owned
by Riverside, Kansas Pipeline Partnership (``Kansas Pipeline''), and
KansOk Partnership (``KansOk'') on an integrated basis. Within 60 days
following issuance of the requested certificate, Riverside states that
all sales and transportation services currently provided by Kansas
Pipeline and KansOk subject to state jurisdiction would be abandoned,
all contracts currently held by Kansas Pipeline and KansOk would be
assigned to Riverside, gas supply contracts would be assigned or
terminated,1 all pipeline and related facilities currently held by
Kansas Pipeline and KansOk would be transferred to Riverside, and
Riverside would commence unbundled service replacing the service
previously provided by Kansas Pipeline, KansOk, and Riverside, all in
accordance with the tariff proposed herein and the terms of Order No.
636.
\1\ Only those gas supply arrangements needed to support a small
customer sales service would be retained.
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Riverside requests the Commission to defer issuance of the
certificate pending rehearing and judicial review of the November 2
Order, and to continue the Stay Order, stating that the actions it
would be required to take to implement the certificate would destroy
Kansas Pipeline and KansOk as they currently exist and are essentially
irreversible.
Riverside states that no new construction is proposed by the
Application. As proposed, sales services now being provided by Kansas
Pipeline to its customers under KCC certificates will be unbundled in
compliance with Order No. 636. Riverside will offer an equivalent level
of transportation capacity to such customers. Small customers could
elect to continue to purchase gas at a cost based rate for a one-year
period under Rate Schedule SCS. Riverside also proposes to offer firm
and interruptible sales on an unbundled basis at negotiated rates under
Rate Schedule PS.
In conjunction with its application for a certificate to operate
the combined facilities of Kansas Pipeline and KansOk, Riverside
requests (1) a blanket certificate authorizing unbundled firm and
interruptible sales pursuant to Section 284.284 of the regulations, and
(2) a blanket certificate authorizing certain construction and
operation of facilities, sales arrangements, certificate amendments,
and abandonments pursuant to Section 157.201, et seq. of the
regulations.
Riverside states that the rates set forth in Exhibit P are based on
a straight fixed-variable (``SFV'') rate design methodology and a cost
of service reflecting the combined facilities of Riverside, Kansas
Pipeline, and KansOk. According to the Application, no mitigation
measures are required since SFV rates were in effect on each of the
pipelines even prior to consolidation. Expenses are based on the 12
months ended September 30, 1995, adjusted for known and measurable
changes. Costs have been allocated to customers using billing
determinants which assume a continuation of customers' existing firm
contractual commitments. Riverside proposes zone rates which, it
states, generally reflect the rate and contract service structure that
existed prior to the November 2 Order. Riverside also proposes to
retain capacity formerly held by KansOk under the terms of a lease with
Transok Inc., an Oklahoma intrastate pipeline.
Riverside's derivation of initial rates set forth below is
explained in greater detail in Exhibit P. Firm and interruptible
transportation rates (exclusive of fuel, surcharges, and lost and
unaccounted for gas) are set forth below:
------------------------------------------------------------------------
Zone 1 Zone 2 Zone 3
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FT Reservation......................... $6.6817 $10.5405 $9.1499
FT Commodity........................... $0.0050 $0.0050 $0.0050
IT..................................... $0.2247 $0.3515 $0.3058
SCT.................................... $0.5542 $0.8714 $0.7571
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Rates for each zone are additive; shippers traversing all three zones
would pay the sum of the rates stated for Zones 1, 2, and 3. In the
event the Commission does not authorize Riverside to retain leased
capacity on Transok, Riverside states that the rates would be as
follows:
------------------------------------------------------------------------
Zone 1 Zone 2 Zone 3
------------------------------------------------------------------------
FT Reservation......................... $5.5315 $10.5405 $9.1499
FT Commodity........................... $0.0050 $0.0050 $0.0050
IT..................................... $0.1869 $0.3515 $0.3058
SCT.................................... $0.4597 $0.8714 $0.7571
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Riverside also proposes procedures to recover, as transition costs,
all costs associated with complying with Order
[[Page 4991]]
No. 636 and the Commission's November 2 Order. These costs include (1)
unrecovered purchased gas costs attributable to Kansas Pipeline's
existing merchant function; (2) direct-bill costs previously authorized
by the KCC; (3) expenses associated with reorganizing and consolidating
the companies into a single entity; (4) costs of upgrading exist ing
facilities to comply with Department of Transportation regulations
applicable to interstate pipelines; (5) increased costs under the
companies' debt instruments related to the change in regulatory status;
(6) costs of reorganizing into a corporate form, if needed to maintain
the tax allowances currently in rates; (7) buyout, buydown, contract
reformation costs, and/or lost profits attributable to terminating
Kansas Pipeline's merchant function; and (8) costs attributable to
assigning or terminating KansOk's lease with Transok, Inc., if
required. Riverside proposes to make limited NGA Sec. 4 filings to
recover these costs.
Comment date: Febraury 22, 1996, in accordance with Standard
Paragraph F at the end of this notice.
2. Southern Natural Gas Company
[Docket No. CP96-153-000]
Take notice that on January 24, 1996, Southern Natural Gas Company
(Southern), P.O. Box 2563, Birmingham, Alabama 35202-2563, filed in
Docket No. CP96-153-000 an application pursuant to Section 7(c) of the
Natural Gas Act for authorization to construct, install and operate
certain pipeline, compression, measurement and related appurtenant
facilities, all as more fully set forth in the application which is on
file with the Commission and open to public inspection.
Southern states that in order to provide firm transportation
services totaling 76,350 Mcf per day for five (5) customers, Southern
requests authorization to construct, install and operate the following
facilities: (i) 109.53 miles of 16-inch pipeline extending from its
McConnells Compressor Station in Tuscaloosa County, Alabama, to a point
of interconnection with the distribution system of the Huntsville
Utilities Gas Section in Madison County, Alabama; (ii) 8.47 miles of
12-inch pipeline extending from approximately M.P. 105.19 on the 16-
inch pipeline to a point of interconnection with the distribution
system of Decatur Utilities in Morgan County, Alabama; (iii) one
turbine compressor unit, ISO-rated at 4700 horsepower, at Southern's
Providence Compressor Station in Tuscaloosa County, Alabama; (iv) one
turbine compressor unit, ISO-rated at 1600 horsepower, at Southern's
McConnells Compressor Station; and (v) one dual 8-inch meter station
and appurtenant facilities, one dual 6-inch turbine meter station and
appurtenant facilities, and one dual 3-inch meter station and
appurtenant facilities.
Southern states further that the total cost of the proposed
facilities is estimated to be $52.8 million.
Comment date: February 21, 1996, in accordance with Standard
Paragraph F at the end of this notice.
3. Northern Natural Gas Company
[Docket No. CP96-157-000]
Take notice that on January 25, 1996, Northern Natural Gas Company
(Northern), 1111 South 103rd Street, Omaha, Nebraska 68124-1000, filed
in Docket No. CP96-157-000 a request pursuant to Sections 157.205 and
157.212 of the Commission's Regulations under the Natural Gas Act (18
CFR 157.205, 157.212) for authorization to operate and upgrade an
existing delivery point in Ashland County, Wisconsin, to accommodate
deliveries of natural gas to Northern States Power--WI (NSP-WI), under
Northern's blanket certificate issued in Docket No. CP82-401-000
pursuant to Section 7 of the Natural Gas Act, all as more fully set
forth in the request that is on file with the Commission and open to
public inspection.
Northern requests authorization to operate the Birch Hill Acres
town border station (TBS) following an upgrade made under the emergency
provisions of Part 284 of the Commission's Regulations. It is stated
that the upgrade was made to provide emergency service to residential
and commercial customers. Northern proposes to further upgrade the TBS
in order to make additional deliveries requested by NSP-WI under
currently effective service agreements. Northern proposes to deliver up
to 208 MMBtu equivalent of natural gas on a peak day and 26,572 MMBtu
equivalent on an annual basis. It is explained that these volumes will
be the result of a realignment of existing firm entitlement contracted
under Northern's throughput service agreements with TSP-WI. It is
asserted that the deliveries made following the proposed upgrade will
not exceed the total volumes authorized prior to the request. Northern
estimates the construction cost for the upgrade at $66,000, for which
Northern will be reimbursed by NSP-WI. It is further asserted that
Northern's tariff does not prohibit such upgrades and that Northern has
sufficient capacity to accomplish the deliveries without detriment or
disadvantage to Northern's other customers.
Comment date: March 18, 1996, in accordance with Standard Paragraph
G at the end of this notice.
4. ANR Pipeline Company
[Docket No. CP96-158-000]
Take notice that on January 26, 1996, ANR Pipeline Company (ANR),
500 Renaissance Center, Detroit, Michigan 48243, filed in Docket No.
CP96-158-000 a request pursuant to Sections 157.205 and 157.212 of the
Commission's Regulations under the Natural Gas Act (18 CFR 157.205,
157.212) for authorization to increase capacity of an existing
interconnection between ANR and Continental Natural Gas, Inc. (CNG) in
Beaver County, Oklahoma for delivery of natural gas to CNG under ANR's
blanket certificate issued in Docket No. CP82-480-000 pursuant to
Section 7 of the Natural Gas Act (NGA), all as more fully set forth in
the request that is on file with the Commission and open to public
inspection.
ANR proposes to increase the capacity of an existing
interconnection between ANR and CNG in Beaver County, Oklahoma for
delivery of natural gas to CNG, and to operate this interconnection
under Section 7(c) of the NGA. ANR received certification, pursuant to
Section 157.211 of the Commission's Regulations under ANR's prior
notice application in Docket No. CP96-6-000, to operate and deliver up
to 6,000 Mcf of natural gas per day at the CNG ``A'' Station. ANR
proposes to increase the maximum capacity of the CNG ``A'' Station to
10,000 Mcf per day from 6,000 Mcf per day. ANR states that it will not
construct any facilities nor spend any money to increase the capacity
of the CNG ``A'' Station. ANR states that, rather, CNG would install a
larger meter on its current metering skid adjacent to the CNG ``A''
Station to increase the capacity to 10,000 Mcf per day. ANR states that
it would continue to provide CNG with deliveries at CNG ``A'' Station
under its Rate Schedule IT and that the volumes to be delivered would
be within the certificated entitlements of the customer.
Comment date: March 18, 1996, in accordance with Standard Paragraph
G at the end of this notice.
5. Transcontinental Gas Pipe Line Corporation
[Docket No. CP96-160-000]
Take notice that on January 29, 1996, Transcontinental Gas Pipe
Line Corporation (Transco), P.O. Box 1396, Houston, Texas 77251, filed
a prior
[[Page 4992]]
notice request with the Commission in Docket No. CP96-160-000 pursuant
to Section 157.205 of the Commission's Regulations under the Natural
Gas Act (NGA) for authorization to construct and operate a new delivery
point to serve Alabama Gas Corporation (Alagasco) in Choctaw County,
Alabama, under Transco's blanket certificate issued in Docket No. CP82-
426-000 pursuant to Section 7 of the NGA, all as more fully set forth
in the request which is open to the public for inspection.
Transco proposes to install a new delivery point to serve Alagasco
near Milepost 798.54 on Transco's mainline system in Choctaw County.
Transco would install a four-inch tap on its 42-inch diameter Mainline
``D'' and another four-inch tap on its 42-inch diameter Mainline ``E'',
as well as a meter station, at the proposed delivery point location.
Transco states that it would deliver up to 3,000 Mcf per day on a firm
or interruptible basis, and that it has sufficient delivery flexibility
to accomplish these deliveries without detriment or disadvantage to
Transco's other customers.
Transco states that it does not seek to alter the total firm or
interruptible volumes authorized for delivery to Alagasco. Transco
further states that its FERC Gas Tariff permits the addition of the
proposed delivery point and would have no impact on Transco's peak day
or annual deliveries.
Comment date: March 18, 1996, in accordance with Standard Paragraph
G at the end of this notice.
Standard Paragraphs
F. Any person desiring to be heard or make any protest with
reference to said filing should on or before the comment date 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 and 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. 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 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 filing 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 the applicant to appear or be represented at
the hearing.
G. Any person or the Commission's staff may, within 45 days after
the 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 Sec. 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 therefore,
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. 96-2774 Filed 2-8-96; 8:45 am]
BILLING CODE 6717-01-P
