[Federal Register Volume 59, Number 96 (Thursday, May 19, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-12182]
[[Page Unknown]]
[Federal Register: May 19, 1994]
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DEPARTMENT OF ENERGY
[Docket No. CP94-533-000]
Tennessee Gas Pipeline Co.; Application
May 13, 1994
Take notice that on May 6, 1994, Tennessee Gas Pipeline Company
(Tennessee), P.O. Box 2511, Houston, Texas 77252, filed in Docket No.
CP94-533-000 an application pursuant to section 7(b) of the Natural Gas
Act for permission and approval to abandon an undivided 30 percent
interest or, alternatively, an undivided 100 percent interests in its
``San Salvador System'' and its ``La Rosa/Mustang Island System'' from
interstate commerce.
Tennessee proposes that the abandoned undivided 30 percent interest
or, alternatively undivided 100 percent interest, would be transferred
to Tennessee's indirect intrastate pipeline subsidiary, Channel
Industries Gas Company (``Channel''). Tennessee states that the primary
proposal to abandon and transfer an undivided 30 percent interest in
these to Channel is based on discussions with, and at the request of,
its customer that currently utilize these facilities. Tennessee
proposes that Channel would operate all of the San Salvador and La
Rosa/Mustang Island Systems under either the primary 30 percent or the
alternative 100 percent transfer option.
Tennessee identifies the facilities that it proposes to abandon as
follows: The ``San Salvador System,'' which comprises all of
Tennessee's facilities at and upstream of Station 1, is comprised of
approximately 600 miles of various diameter pipeline facilities. It
includes Tennessee's Station 1 and the San Salvador Line, which runs
from Agua Dulce, Texas, south approximately 98 miles to the vicinity of
Edinburg, Texas. The San Salvador line is comprised of a 26-inch
diameter pipeline and a looped 16-inch diameter pipeline. Appurtenant
to the San Salvador Line are: a 12-inch diameter pipeline 53 miles in
length running from Duval County, Texas west of Station 1; 1 24-inch
diameter pipeline 20 miles in length running south from Station 1 to
Endinburg, Texas; five 12-inch diameter pipelines totalling 82 miles in
length; and approximately 200 miles of smaller diameter pipeline
facilities that connect into the San Salvador Line at numerous points
in southern Texas. Tennessee states that there is no line compression
on the San Salvador pipeline facilities other than at Station 1.
The ``La Rosa/Mustang Island System'' interconnects with
Tennessee's 100 Line approximately 42 miles downstream of Station 1,
and extends from that point in a southeasterly direction approximately
six miles, where it crosses Channel's ``A-S Pipe Line.'' From this
crossing, the La Rosa/Mustang Island System continues southward into
Corpus Christi Bay and Offshore Texas (in state waters). This system is
comprised of: the ``La Rosa'' line, consisting of six miles of 10-inch
diameter pipeline in Refugio County, Texas; the ``La Rosa-Mustang
Island'' line, a 12-inch diameter pipeline 32 miles in length from
Refugio County south into San Patricio County, Texas and on into Corpus
Christi Bay; and an additional 22 miles of smaller diameter pipelines
that connect into the La Rosa and Mustang Island lines in Refugio
County, San Patricio County, and Offshore Texas.
Tennessee's primary proposal is to transfer a 30 percent undivided
interest in its San Salvador/La Rosa facilities to the capital of
Channel at a net book value of approximately $5.2 million. Tennessee
proposes, in the alternative, to transfer 100 percent of its San
Salvador/La Rosa facilities to the capital of Channel at a net book
value of $17.2 million. This $17.2 million net book value represents
approximately 1.3 percent of Tennessee's rate base.
Tennessee states that: (1) there will be no diminution in service
to Tennessee's shippers; (2) Abandonment will increase utilization of
the San Salvador/La Rosa facilities and enhance competition; (3)
Abandonment will improve aggregation of supplies for Tennessee; and (4)
The flexibility goals of the NGPA are better served.
Tennessee notes in its application that Channel's intrastate rates
and operations are regulated by the Railroad Commission of Texas, and
that Channel also provides open-access transportation service in
accordance with section 311(a)(2) of the NGPA pursuant to rates
authorized by the Commission. Channel Industries Gas Co., 13 FERC
62,042 (1980). Tennessee states that the Commission would retain
jurisdiction over the rates charged by Channel for transportation on
these facilities in interstate commerce pursuant to section 311 of the
NGPA. Tennessee's proposals are set forth more fully in its
application, which is on file and available for inspection at the
Commission.
Any person desiring to be heard or to make any protest with
reference to said application should on or before June 3, 1994, 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 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 Tennessee to appear or be represented at the
hearing.
Lois D. Cashell,
Secretary.
[FR Doc. 94-12182 Filed 5-18-94; 8:45 am]
BILLING CODE 6717-01-M
