96-18085. Lee 8 Storage Partnership; Notice of Petition for Rate Approval

[Federal Register Volume 61, Number 138 (Wednesday, July 17, 1996)]
[Notices]
[Pages 37256-37257]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-18085]


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DEPARTMENT OF ENERGY
[Docket No. PR96-11-000]


Lee 8 Storage Partnership; Notice of Petition for Rate Approval

July 11, 1996.
    Take notice that on June 14, 1996, Lee 8 Storage Partnership (Lee 
8) filed pursuant to Section 284.123(b)(2) of the Commission's 
regulations, a petition for rate approval requesting that the 
Commission approve as fair and equitable market-based rates for firm 
and interruptible storage services to be rendered by Lee 8 at its 
Michigan storage facility or, in the alternative, cost based rates 
pursuant to Section 311(a)(2) of the Natural Gas Policy Act of 1978. 
Lee 8 states that its rates for firm and/or interruptible storage 
services will be negotiated between Lee 8 and various shippers. In 
addition, Lee 8 states that it will charge 1% of the injected volumes 
and 1% of the withdrawal volumes as an allowance for compressor fuel 
and lost and unaccounted for gas on Lee 8's system.
    Lee 8's petition states that Lee 8 is a Hinshaw pipeline exempt 
from Commission regulation under Section 11(c) of the Natural Gas Act, 
with facilities located wholly within the state of Michigan. Lee 8 
states that its storage facility currently has a working gas capacity 
of 1,445,000 Mcf of natural gas.
    Lee 8 states that it anticipates that it will utilize all of the 
working gas capacity at its Michigan storage facilities for third party 
service that will include both intrastate service and service in 
support of interstate commerce pursuant to its blanket certificate 
under 18 CFR 284.224. It is stated that Lee 8's storage services are 
structured to include both transportation to and from storage.
    Lee 8 states that it will comply fully with its obligation under 
Part 284 of the Commission's regulations to offer NGPA Section 
311(a)(2) storage services on a basis which is neither unduly 
preferential nor unduly discriminatory. It is stated, however, that Lee 
8 will not be obligated to accept any proposal for storage service at 
its Michigan storage facility which Lee 8 determines is below the 
market rate for such service.
    Pursuant to Section 284.123(b)(2)(ii), if the Commission does not 
act within 150 days of the filing date of Lee 8's Petition, Lee 8's 
market-based rates for firm and interruptible storage services will be 
deemed to be fair and equitable. The Commission may within such 150 day 
period extend the time for action or institute a proceeding in which 
all interested parties will be afforded an opportunity for written 
comments and the oral presentation of views, data and arguments.
    Any person desiring to participate in this rate proceeding must 
file a motion to intervene or protest in accordance with Sections 
385.211 and 385.214 of the Commission's Rules of Practice and 
Procedure. All motions must be filed with the secretary of the 
Commission on or before July 26, 1996. The petition for rate approval 
is on file with the

[[Page 37257]]

Commission and is available for public inspection.
Lois D. Cashell,
Secretary.
[FR Doc. 96-18085 Filed 7-16-96; 8:45 am]
BILLING CODE 6717-01-M