[Federal Register Volume 62, Number 65 (Friday, April 4, 1997)]
[Notices]
[Pages 16149-16150]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-8575]
[[Page 16149]]
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DEPARTMENT OF ENERGY
[Docket No. CP97-294-000]
Natural Gas Pipeline Company of America; Notice of Application
March 31, 1997.
Take notice that on March 19, 1997, Natural Gas Pipeline Company of
America (Natural), located at 701 East 22nd Street, Lombard, Illinois
60148, filed in Docket No. CP97-294-000 an application pursuant to
Section 7(c) of the Natural Gas Act and Subpart A of Part 157 of the
Commission's Regulations. Natural seeks a certificate of public
convenience and necessity authorizing the construction and operation of
certain expansion facilities required by transport up to 663,000 Mcf
per day of additional volumes on Natural's Amarillo mainline system
east of Harper, Iowa, to the Chicago area. The details of Natural's
application are more fully set forth in its filing which is on file
with the Commission and open to public inspection.
Natural states that this application is being filed in response to
the Draft Environmental Impact Statement (DEIS) for the ``Northern
Border Project'' issued by the Commission Staff in Northern Border
Pipeline Company (Northern Border), Docket Nos. CP95-194-001, 003, and
Natural, Docket Nos. CP96-27-000, 001, and represents a further
expansion of Natural's Amarillo Line. This application, in conjunction
with Natural's already pending applications in Docket Nos. CP96-27-000
and 001, is said to put before the Commission, in a formal manner, the
``Amarillo System Alternative'' considered by the DEIS for the Northern
Border Project. However, Natural states that 62 miles of large diameter
lateral lines and 29,600 horsepower of additional compression which the
Northern Border DEIS considered as part of the Amarillo System
Alternative is not included because Natural says that those facilities
are not needed. Thus, Natural states that its version of the Amarillo
System Alternative is preferable to the Iowa/Illinois System
Alternative which was also considered by the Northern Border Project
DEIS.
Natural requests certificate authority for the following
facilities:
(1) About 20.7 miles of 36-inch mainline loop in Washington and
Louisa Counties, Iowa, extending westward from the beginning of the 36-
inch loop proposed in Docket No. CP96-27-001;
(2) About 16.9 miles of 36-inch mainline loop in Rock Island and
Henry Counties, Illinois, extending eastward from the end of the 36-
inch loop proposed in Docket No. CP96-27-001 to the suction side of
Compressor Station No. 110;
(3) About 68.9 miles of 42-inch mainline loop in Henry, Bureau and
LaSalle Counties, Illinois, from the discharge side of Compressor
Station No. 110 to the beginning of the No. 4 line in LaSalle County,
Illinois;
(4) About 4.7 miles of 36-inch mainline loop in Bureau County,
Illinois, extending eastward from the end of the 36-inch loop proposed
in Docket No. CP96-27-001;
(5) Two 15,000 horsepower gas turbine compressors at Station No.
199 located in Muscatine County, Iowa;
(6) 19,000 horsepower of gas turbine compression at Station No. 110
located in Henry County, Illinois; and,
(7) One 13,000 horsepower gas turbine compressor at Station No. 113
located in Will County, Illinois.
The estimated cost of these facilities is $160 million.
Natural says that it will charge its currently effective rates
under Rate Schedule FTS for the transportation service performed by the
facilities proposed in this Application. Natural further requests a
preliminary determination that the cost of the facilities should be
reflected on a rolled-in basis in Natural's next Section 4 rate
proceeding. The Commission's pricing policy statement in Docket No.
PL94-4-000 indicates that there is a presumption in favor of rolled-in
rates when the rate increase to existing customers from rolling-in the
new facilities is five percent or less.
Natural says that, as shown in Exhibit N of its application, the
rolling-in of the proposed facilities will have no significant impact
on Natural's existing rates. While the impact on the rates for
Natural's transportation services vary by transportation path, on a
volume weighted basis, there is a slight overall reduction in rates.
Similarly, Natural's storage rates will change by less than 0.3%.
Natural claims to have thus met the requirements necessary for a
preliminary determination in favor of rolled-in rates.
Natural says that Northern Border could contract with it for firm
transportation service over the Amarillo System Alternative in lieu of
constructing the Northern Border proposed expansion from Harper to
Chicago.\1\ Natural says that Northern Border would pay Natural's
maximum rate under Rate Schedule FTS which is currently about 14 cents,
and then Northern Border would charge its own shippers 8.5 cents per
MMBtu under Northern Border's cost-of-service tariff.
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\1\ Natural says that it made this offer to Northern Border on
January 27, 1997, but that on February 7, 1997, Northern Border
declined the offer and made no counter-proposal.
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Natural says that under the Amarillo System Alternative, Northern
Border's system would be effectively extended east of Harper and that
all the shippers would contract with Northern Border, not with Natural,
for service to the Chicago area. Natural says that all the shippers
would receive comparable or, in some cases, better service than they
originally contracted for (in the precedent agreements), but at a lower
per unit cost. Natural says that all this would be accomplished without
the need for a totally new pipeline system/corridor being constructed
across eastern Iowa and Illinois by Northern Border.
Any person desiring to be heard or to make any protest with
reference to said application should on or before April 21, 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 157.20).
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 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 the jurisdiction conferred upon the 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 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
[[Page 16150]]
unnecessary for Natural to appear or be represented at the hearing.
Lois D. Cashell,
Secretary.
[FR Doc. 97-8575 Filed 4-3-97; 8:45 am]
BILLING CODE 6717-01-M
