[Federal Register Volume 62, Number 61 (Monday, March 31, 1997)]
[Notices]
[Pages 15166-15167]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-8008]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket Nos. CP97-300-000, CP97-301-000, and CP97-302-000]
Dauphin Island Gathering Partners; Notice of Application
March 25, 1997.
Take notice that on March 21, 1997, Dauphin Island Gathering
Partners (Dauphin Island), c/o OEDC, Inc. 1400 Woodloch Forest Drive,
Suite 200, The Woodlands, Texas 77380, filed in Docket Nos. CP97-300-
000 an application, pursuant to Section 7(c) of the Natural Gas Act and
Section 157 of the Commission's Regulations, for a certificate of
public convenience and necessity to (1) construct and operate an
offshore 24-inch, 63-mile natural gas pipeline and related facilities
extending from the existing Dauphin Island gathering system at Alabama
State Tract 73 to Main Pass Gas Gathering System at Main Pass Block 225
and (2) to operate as a jurisdictional facility on a temporary basis,
with pregranted abandonment, an existing pipeline facility required to
transport the gas onshore. Dauphin Island also filed in Docket No.
CP97-301-000 for blanket authority pursuant to Part 284 of the
Commission's Regulations to transport gas on an open-access basis and
for approval of its pro forma tariff, including the proposal to charge
negotiated rates. Also, Dauphin Island also requests in Docket No.
CP97-302-000 a blanket certificate pursuant to Section 157, Subpart F
of the Commission's Regulations to engage in certain routine
activities. Finally, Dauphin Island requests that the Commission
confirm that issuance of the requested authorizations and services will
not subject the existing facilities of Dauphin Island to the
Commission's jurisdiction,\1\ all as more fully set forth in the
applications, which are on file with the Commission and open for public
inspection.
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\1\ Dauphin Island previously filed in Docket No. CP97-119-000 a
petition seeking that the Commission declare that its proposed
facilities are gathering facilities exempt from Commission
jurisdiction pursuant to Section 1(b) of the Natural Gas Act.
Dauphin Island seeks the requested authorization only if the
Commission finds that any of the requested facilities are subject to
the Commission's jurisdiction.
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Dauphin Island indicates that the maximum capacity of the proposed
facilities will be 200,000 dt equivalent on natural gas per day. It is
noted that the proposed facilities will parallel the western leg of the
existing Dauphin Island gathering system for approximately 30 miles. It
is stated that the proposed facilities will gather gas along its length
from production already discovered but not currently developed and from
exploratory efforts in the area. Dauphin Island notes that the
facilities are designed to gather gas that currently cannot be produced
due to capacity constraints downstream of the Main Pass system and
significant newly discovered production which can be attached to the
Main Pass system. Dauphin Island states that it intends to construct in
the future a second phase of the project, which would include 13 miles
of 24-inch pipeline extending from the northern terminus of the
proposed facilities onshore. It is indicated that Dauphin Island is not
applying for authority to construct and operate the facilities at this
time, but intends to file within the next 12 months when it has
sufficient time to complete the requisite environmental studies,
obtained commitments from producers in the area, and arranged to
purchase pipe.
Because Dauphin Island is not ready to build the second phase of
its project, Dauphin Island requests a limited term certificate with
pregranted abandonment to use a portion of its existing gathering
system which extends downstream from Alabama State Tract 73 for
interstate transmission of up to 200,000 dt equivalent of natural gas
per day to onshore interconnections for a period of up to twelve months
after the proposed facilities are placed in service.
Dauphin Island estimates a construction cost of the proposed
facilities of $54,116,620, which would be financed from cash on hand
from the various partners of Dauphin Island.
Dauphin Island requests that it be issued a blanket certificate
pursuant to Section 284.221 of the Commission's Regulations. Dauphin
Island proposes to provide transportation service under three firm rate
schedules, including (1) FT-1 firm service, (2) FT-2 firm service
available to shippers who commit all of the gas from specified OCS or
state blocks and (3) FT-3 firm service representing overflow volumes
from the Main Pass System, and IT-1 interruptible service.
Dauphin Island requests authorization to permit it to charge
negotiated rates. It is indicated that in the Statement of Policy on
Alternatives to Traditional Cost-of-Service Ratemaking for Natural Gas
Pipelines, 74 FERC para. 61,076 (1996), the Commission stated that
negotiated rates would be approved in certain circumstances, and that
Dauphin Island meets those circumstances. Dauphin Island states in its
tariff the charges
[[Page 15167]]
applicable to negotiated rates under Rate Schedules FT-2 and FT-3, and
that capacity would be available at a cost-based recourse rate under
Rate Schedules FT-1 and IT-1. It is indicated that for rates negotiated
with customers following Commission authorization to charge such rates,
Dauphin Island will file conforming tariff sheets indicating that the
rate for the service will be either the rates stated on its existing
rate schedule or a rate mutually agreed upon by the pipeline and
customer. It is also indicated that, when a rate is negotiated, Dauphin
Island will file a numbered tariff sheet stating the exact legal name
of the customer and the negotiated rate for the service. It is stated
that permitting Dauphin Island to negotiate rates with customers at
mutually agreed levels will promote competition, and permit them to
tailor contracts to meet the specific needs of each shipper.
It is stated that the tariff filed by Dauphin Island is
substantially similar to those recently approved by the Commission in
Garden Banks Gas Pipeline, L.L.C., Docket No. CP96-307-000 and Shell
Gas Pipeline Company, Docket No. CP96-159-000, except for service under
Rate Schedule FT-3, and except for the following differences: in the
Dauphin Island tariff, service is provided on a dekatherm rather than
volumetric basis; the Dauphin Island tariff includes an overrun
service; secondary receipt points are not available to shippers under
Dauphin Island Rate Schedules FT-2 and FT-3; in Dauphin Island's
tariff, all delivery points are available to all shippers based upon
confirmation by the downstream pipeline; a charge of $3.50 per barrel
will be charged by Dauphin Island for recovery of liquid hydrocarbons;
at the request of the shipper, Dauphin Island may enter into contracts
for various services with third parties and charge the cost to shipper
as an ``Other Charge'' under the rate schedule; under Dauphin Island's
tariff, a capacity release can be released only into Rate Schedule FT-
1; and Dauphin Island may process shipper's gas if the shipper does not
process; additionally, the term: equivalent quantities'', some quality
specifications, nomination procedures, the effect of force majeure on
payment of reservation rates, and the resolution of monthly imbalances
have been changed.
Any person desiring to be heard or to make any protest with
reference to said application should on or before April 4, 1997, file
with the Federal Energy Regulatory Commission, 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 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 a grant of the certificate and 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 Dauphin Island to appear or be represented
at the hearing.
Lois D. Cashell,
Secretary.
[FR Doc. 97-8008 Filed 3-28-97; 8:45 am]
BILLING CODE 6717-01-M
