[Federal Register Volume 61, Number 94 (Tuesday, May 14, 1996)]
[Notices]
[Pages 24298-24299]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-11983]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket No. CP96-386-000]
Columbia Gas Transmission Corporation; Notice of Application
May 8, 1996.
Take notice that on April 29, 1996, Columbia Gas Transmission
Corporation (Columbia), 1700 MacCorkle Avenue, SE., Charleston, West
Virginia 25325-1273, filed in Docket No. CP96-386-000 an application
pursuant to Section 7(b) of the Natural Gas Act for permission and
approval to abandon certain certificated gathering facilities by
spindown to Columbia Natural Resources, Inc. (CNR), a non-
jurisdictional affiliate,\1\ all as more fully set forth in the
application on file with the Commission and open to public inspection.
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\1\ CNR has filed a companion petition for declaratory order in
Docket No. CP96-385-000 for a determination that the facilities will
be non-jurisdictional gathering facilities upon transfer to CNR.
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Columbia proposes to transfer to CNR certain certificated and
uncertificated gathering facilities at net book value estimated to be
$28 million as of December 31, 1996, pursuant to a purchase and sale
agreement dated April 25, 1996. Columbia explains that it intends to
credit the net sales proceeds to the Stranded Facilities Charge in
accordance with the tariff provisions placed into effect in its current
Section 4 general rate case in Docket No. RP95-408-000.\2\ Columbia
states that the facilities are located in Fayette and Somerset
Counties, Pennsylvania; Dickenson, Tazewell and Buchanan Counties,
Virginia; Pike, Knott, Breathitt, Magoffin, Floyd, Johnson, Lawrence,
Letcher and Martin Counties, Kentucky; and Kanawha, Boone, Cabell,
Logan, Putnam, Wyoming, Raleigh, Fayette, Mercer, McDowell, Mingo,
Wayne and Lincoln Counties, West Virginia. It is further stated that
the facilities involve eighteen gathering systems that contain 2,729
miles of low pressure, predominately small diameter pipeline, 4,475
horsepower of compression, meters, etc, (see the attached appendix).
Columbia states that only twelve of the lines (totaling 51.4 miles of
2-12 inch pipeline) and one compressor station (900 horsepower),\3\ and
associated points of delivery and receipt and various appurtenant
facilities,\4\ have been certificated; and certain certificated
facilities are currently functionalized as transmission facilities and
others are recorded as gathering facilities.
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\2\ See General Terms and Conditions Section 46, Stranded
Facilities Charge, of Columbia's tariff. The sale of gathering
facilities proposed by this filing is a significant first step in
Columbia's exit from the gathering business and the mitigation of
the associated stranded costs.
\3\ The Conaway Compressor Station is certificated and
functionalized as a gathering facility.
\4\ Columbia identifies Columbia Gas of Kentucky, Inc., and
Mountaineer Gas Company, as local distribution companies, and
Columbia Gas of Pennsylvania, Inc., as being involved as mainline
tap customers with certificated points of delivery located on the
gathering facilities to be spundown to CNR.
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Columbia states that its proposal is the result of unbundling under
Order No. 636 and the subsequent elimination of its merchant function.
Furthermore, the proposal is part of the transfer and sale of a larger
group of gathering facilities to CNR, which will operate the facilities
on an open access, nonjurisdictional basis. Columbia advises that CNR
owns an interest in over 6,500 oil and gas wells; has total acreage
holdings of more than 2.3 million acres; and approximately two-thirds
of CNR's natural gas production flows through the gathering facilities
proposed to be transferred to CNR.
Columbia advises that it would file to refunctionalize to
transmission any of its gathering facilities located between the
facilities sold to CNR and Columbia's transmission facilities. Such
refunctionalization would eliminate the possibility that a shipper
would pay gathering charges to both CNR and Columbia if, prior to the
proposed abandonment, only one such gathering charge would have been
paid.
As more fully set forth in its application, Columbia requests:
(1) Authorization to abandon by sale to CNR the certificated
facilities as further identified in Exhibits T, Z, and Z1.
(2) Approval of the accounting treatment specified in Exhibit Y.
(3) Such other authorizations as the Commission deems necessary
including, without limitation, authority to abandon, conditioned upon
the receipt by Columbia of Section 4 authorization to abandon service,
the Points of Delivery as identified in Exhibit T which are served from
the certificated facilities and the non-certificated gathering
facilities to be sold to CNR.
Any person desiring to be heard or to make any protest with
reference to said application should on or before May 20, 1996, 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
[[Page 24299]]
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 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 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 Columbia to appear or be represented at the
hearing.
Linwood A. Watson, Jr.,
Acting Secretary.
Appendix--Columbia Gas Transmission Corporation Summary of Certificated and Uncertificated Facilities To Be
Spundown by Transfer and Sale to CNR
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Pipeline
---------------------------------------- System
Gathering system Length Diameter pressure Compressor (HP)
(miles) (inches) Total No. (psig)
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1 Summit........................... 9 2-6 8 90-200 0
2 Ohiopyle......................... 17 2-12 5 ............ 0
3 Walbridge........................ 143 2-8 267 40-80 0
4 Hubball-Horse Creek-Nye.......... ........... 2-20 1,322 40-80 820
5 Buff Lick........................ 212 (\1\) 286 2-100 Yes
6 Inez-Kermit...................... 635 1-18 984 40-80 959
7 Beaver Creek..................... 93 1-12 133 10-70 0
8 Boldman.......................... 288 1-18 364 50-180 0
9 Johns Creek...................... 21 2-8 26 35-60 300
10 Canada (P-74).................... 95 2-10 151 100-120 300
11 Canada (P-28).................... 13 2-8 9 40-100 0
12 Conaway.......................... 121 2-20 149 70-120 900
250-400
13 Majestic Thacker................. 152 1-10 184 30-70 950
14 Briar Mountain................... 16 2-6 19 20-60 300
15 Stafford......................... 32 1-6 49 45-75 Yes
16 Huff Creek (V-38)................ ........... 2-10 17 75-125 Yes
17 McDowell-Tazewell................ 41 2-6 46 30-50 0
18 Egeria........................... 20 2-6 37 30-50 Yes
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\1\ Various.
[FR Doc. 96-11983 Filed 5-13-96; 8:45 am]
BILLING CODE 6717-01-M
