[Federal Register Volume 60, Number 105 (Thursday, June 1, 1995)]
[Notices]
[Page 28601]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-13308]
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DEPARTMENT OF ENERGY
Southern Natural Gas Company; Notice of Petition for Declaratory
Order
[Docket No. CP95-506-000]
May 25, 1995.
Take notice that on May 22, 1995, Southern Natural Gas Company
(Southern), AmSouth-Sonat Tower, 1900 Fifth Avenue North, Birmingham,
Alabama 35203, filed a petition in Docket No. CP95-506-000, requesting
that the Commission declare that Southern's Miley Line, located in the
Lockhart Crossing Field, Livingston Parish, Louisiana, is a gathering
line exempt from the provisions of the Natural Gas Act (NGA), all as
more fully set forth in the petition which is on file with the
Commission and open to public inspection.
Southern proposes to sell its Miley Line, a natural gas pipeline
extending approximately 7,800 feet from the Miley #1 well to Amoco
Production Company's (Amoco) central dehydration and separation
facility. It is stated that on April 9, 1995, Southern and Amoco
entered into a settlement agreement to amend certain pricing provisions
of gas purchase contracts and to provide for the sale by Southern to
Amoco of the Miley Line. Under the terms of the settlement agreement,
Amoco will purchase the Miley Line from Southern at its remaining book
value, upon the issuance by the Commission of a declaratory order
disclaiming jurisdiction over the pipeline.
Southern submits that its Miley Line is a ``gathering facility''
under Section 1(b) of the NGA as interpreted by the Commission under
the ``modified primary function'' test, as set forth in Amerada Hess
Corp., et al., as amended. 52 FERC para. 61,268 (1990). Southern notes
that characteristic of gathering lines, the Miley Line is a very short,
small-diameter pipeline, less than two miles long and four inches in
diameter. Southern argues that the central point in the field analysis
is inappropriate in this case because the Miley Line feeds the natural
gas it collects into the Amoco Plant for processing. Southern states
that there are no compressor facilities located along the Miley Line,
consistent with the requirement of minimal compression on gathering
facilities. Southern notes that the Miley Line is located completely
behind a processing plant, with volumes flowing from the point of
production at the Miley #1 well to the Amoco Plant, strongly supporting
a finding that the facility performs a gathering function. Southern
further notes that the Miley Line begins at the Miley #1 well,
satisfying the requirement that wells be located along all or part of
the facilities. Southern states that the gas gathered by the Miley Line
is untreated rather than ``pipeline quality'', a characteristic found
to be consistent with the gathering function. Finally, Southern relates
that upon Amoco's purchase of the pipeline, the Miley Line will be
owned and operated by a traditionally unregulated corporation which
will continue in its historic practice of moving its own gas production
to its various customers through its capacity in the line. Southern
reports that Amoco presently performs no jurisdictional transportation
functions in the Lockhart Crossing Field.
Any person desiring to be heard or to make any protest with
reference to said petition should on or before June 15, 1995, file with
the Federal Energy Regulatory Commission, 825 North Capitol Street,
N.E., 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). 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.
Lois D. Cashell,
Secretary.
[FR Doc. 95-13308 Filed 5-31-95; 8:45 am]
BILLING CODE 6717-01-M
