[Federal Register Volume 62, Number 92 (Tuesday, May 13, 1997)]
[Notices]
[Pages 26300-26301]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-12441]
[[Page 26300]]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket No. CP97-92-001]
Transcontinental Gas Pipe Line Corporation; Notice of Application
May 7, 1997.
Take notice that on May 1, 1997, Transcontinental Gas Pipe Line
Corporation (Transco), P.O. Box 1396, Houston, Texas 77251, filed in
Docket No. CP97-92-001 an amendment to its initial application pursuant
to Section 7(c) of the Natural Gas Act for a certificate of public
convenience and necessity authorizing an extension and expansion of
Transco's Mobile Bay Lateral (Project). Transco states that the purpose
of the amendment is to eliminate or modify certain onshore and offshore
facilities \1\ that were originally proposed, in order to revise the
total capacity of the project to the dekatherm equivalent of 350
million cubic feet per day (MMcf/d) of firm transportation capacity on
the offshore extension of the Mobile Bay Lateral and 263.848 MMcf/d of
additional firm transportation capacity \2\ in the existing onshore
Mobil Bay Lateral, thereby reducing the scope of the Project to
correspond to the firm transportation commitment evidenced by the
transportation Precedent Agreement executed by Transco and Williams
Energy Services Company (WESCO) all as more fully set forth in the
application which is on file with the Commission and open to public
inspection.
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\1\ In referring to the ``offshore extension'' of its Mobile Bay
Lateral, Transco states that approximately 72.0 miles of the
extension as revised will be located offshore and approximately 4.0
miles will be located onshore upstream of and connecting with
Station No. 82, which is the existing terminus of the Mobile Bay
Lateral.
\2\ Transco states that it is sizing its onshore expansion
facilities to provide less capacity than its offshore extension
facilities based on its receipt of 86.152 MMcf/d of capacity
relinquishment on the Mobile Bay Lateral. Transco states that
together with the 263.848 MMcf/d of additional firm capacity, this
Project provides for 350 MMcf/d of total onshore capacity.
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Transco seeks authority to construct and place in service the
Project facilities in phases. It is stated that in Phase I, Transco
intends to place in service by July 1, 1998, all of its offshore
extension facilities to provide the entire 350 MMcf/s of offshore
capacity, as well as the Station No. 82 compression addition. As part
of Phase I, Transco also seeks to place into service the onshore
capacity which will become available as a result of the Mobile Bay
Lateral capacity relinquishments requests in order to provide initial
onshore capacity of 214.289 MMcf/d. In Phase II, Transco proposes to
place into service by November 1, 1989 its Station No. 83 compression
facilities for the remaining 135.711 MMcf/d of onshore capacity.
Transco further requests authority to charge as its initial rate
for the entire capacity its then current Rate Schedule FT maximum rate
for Zone 4A upon placing the Phase I facilities in service. Transco
also seeks to roll-in the revised costs associated with the Project as
amended here in its first NGA Section 4 proceeding after Transco places
all Project facilities in service.
Transco states that the Project facilities as revised by this
amendment will create firm transportation capacity of 350 MMcf/d from
Main Pass Area Block 261 to Transco's Station No. 82 and 263.848 MMcf/d
(which, in conjunction with 86.152 MMcf/d of capacity turnback on the
Mobile Bay Lateral, provides for a total 350 MMcf/d of capacity) from
Station No. 82 to Station No. 85 where Transco's Mobil Bay Lateral
interconnects with its mainline in Choctaw County, Alabama.
Phase I Facilities
Transco states that it will construct:
1. Offshore Extension Facilities
a. Approximately 56.58 miles of 24-inch diameter pipeline extending
from an offshore platform currently being designed for installation at
East Main Pass, Block 261 (Transco has purchased a portion of SOCO's
undivided ownership interest in the Block 261 platform in order to
place a 24-inch spare launcher, measurement equipment, riser pipe and
appurtenant facilities on the platform), to a proposed new junction
platform located in the Mobile Bay Area, Block 822 (MB 822) which will
be constructed, operated and owned by Transco.
b. Approximately 18.89 miles of 30-inch diameter pipeline extending
from the junction platform at MB 822 to a proposed nonjurisdictional
separation and processing plant owned and operated by WFS, in Mobile
County, Alabama. The total amount of 24, 30, and 36-inch pipeline
required for the offshore extension is 75.66 miles.
c. Junction Platform facilities in the MB 822 area, including a 24-
inch sphere receive and a 30-inch sphere launcher and appurtenant
facilities.
2. Station No. 82 Compression Addition
A 15,000 horsepower compression addition at Transco's existing
Station No. 82 in Mobile County, Alabama (i.e., the amount of
compression at Station No. 82 is reduced from the 26,000 horsepower
addition which was originally proposed.
Phase II Facilities
Transco states that it will construct a new Compressor Station No.
83 in Mobile County, Alabama at Mobile Bay Lateral MP 68.4, housing a
15,000 horsepower compressor unit.
Non-Jurisdictional Facilities
Transco states that Williams Field Services Company (WFS) will
construct, own and operate a 600 MMcf per day processing plant,
including a 350 MMcf/d separation facility, immediately upstream of
Compressor Station No. 82. The plant will be designed to remove liquids
from the pipeline and deliver pipeline quality natural gas to the
suction side of Compressor Station No. 82. The plant is estimated to
require 30 acres of land and is planned to be located immediately to
the west and adjacent to Compressor Station No. 82. (Transco states
that these nonjurisdictional facilities are not included in the Project
facilities.)
Transco estimates that the cost of the Phase I and Phase II Project
facilities, as revised by this amendment, will cost in the aggregate
approximately $120.2 million.
Transco states that immediately after filing its original
application, it held an open season from November 15, 1996, through
December 16, 1996 for the Project capacity. Transco concurrently
requested offers of permanent firm capacity relinquishments from
existing Mobile Bay Lateral shippers in order to approximately size the
onshore portion of the Project expansion. Transco states that it
received relinquishment offers from two entities: 58.616 MMcf/d from
two FT contracts held by WESCO and 27.536 MMcf/d from one FT contract
held by Enron Capital and Trade Resources Corp., for a total capacity
relinquishment of 86.152 MMcf/d on the existing Mobile Bay Lateral. As
a result of the open season, Transco and WESCO have executed a 15-year
binding Precedent Agreement containing a subscription by WESCO for the
full Project capacity of 362,250 Dt/d (based on Transco's tariff Btu
conversion standard of 1035 Btu/cf, but in no event will Transco's
transportation commitment exceed 350 MMcf/d on any day, irrespective of
the actual Btu content of the gas).
Transco states that the firm transportation service to be rendered
through this new capacity will be performed under its Rate Schedule FT
and Part 284(G) of the Commission's regulations. Transco states that it
will
[[Page 26301]]
charge the Project shippers the then-current Zone 4A maximum rate under
Rate Schedule FT in effect when the Phase I facilities are placed in
service, plus any applicable surcharges.
Transco requests that the Commission grant rolled-in rate treatment
for the costs associated with the Mobile Bay Project as revised by this
amendment in Transco's first Section 4 rate proceeding to become
effective after the in-service date of the Project. Transco states that
a presumption to roll-in the Project costs applies because the rate
impact on its existing customers under each firm rate schedule is less
than the five percent threshold set forth in the Commission's Statement
of Policy for pricing new pipeline construction. Transco also states
that the facilities constructed as part of the Project will produce
significant system-wide operational and financial benefits and will be
operated on an integrated basis with its existing facilities.
To meet the proposed in-service date of July 1, 1998 for Phase I
and November 15, 1998 for Phase II of the Project, Transco requests
that the Commission issue a preliminary determination approving all
aspects of this application other than environmental matters by October
1, 1997, with a final determination and all appropriate certificate
authorizations by December 1, 1997.
Any person desiring to be heard or to make any protest with
reference to said application should on or before May 28, 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 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 with 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 unnecessary for Transco to appear or be represented at the
hearing.
Lois D. Cashell,
Secretary.
[FR Doc. 97-12441 Filed 5-12-97; 8:45 am]
BILLING CODE 6717-01-M
