96-16931. Plant Owners v. Continental Natural Gas, Inc.; Notice of Complaint and Motion for Show Cause Order

[Federal Register Volume 61, Number 129 (Wednesday, July 3, 1996)]
[Notices]
[Pages 34805-34807]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-16931]


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DEPARTMENT OF ENERGY
[Docket No. CP96-577-000]


Plant Owners v. Continental Natural Gas, Inc.; Notice of 
Complaint and Motion for Show Cause Order

June 27, 1996.
    Take notice that on June 17, 1996, Plant Owners, identified in the 
attached appendix, filed in Docket No. CP96-577-000, pursuant to Rules 
206 and 212 of the Commission's Rules of Practice and Procedure (18 CFR 
385.206, 385.212), a complaint and motion for an order to show cause 
against Continental Natural Gas, Inc. (CNG), alleging that CNG has 
constructed and is operating certain facilities that are subject to the

[[Page 34806]]

Natural Gas Act (NGA) without first obtaining authorization for these 
facilities pursuant to the certification procedures of NGA Sec. 7(c). 
Plant owners own the Laverne processing plant that is operated by 
Conoco Inc. The attorney for Plant Owners is Bruce A. Connell, Esq., 
600 N. Dairy Ashford, ML-1034, Houston, Texas 77079. Plant Owners' 
complaint is on file with the Commission and open for public 
inspection.
    Plant Owners state that the facilities at issue consist of 
approximately ten miles of 8-inch pipeline through which high pressure 
natural gas flows between the tailgate of CNG's Beaver processing plant 
and the mainline transmission facilities of ANR Pipeline Company (ANR) 
in Beaver County, Oklahoma. Plant Owners assert that these facilities 
transport pipeline quality, processed, residue gas from the processing 
plant into interstate markets. The line is described as having no 
apparent well connects or gathering line interconnects.
    It is stated that some Plant Owners produce natural gas behind 
CNG's Beaver Plant that is gathered by Colorado Interstate Gas Company, 
not ANR. Moreover, CNG has proposed to build connecting lines into the 
Laverne gathering area, where Plant Owners both produce and purchase 
natural gas. Plant Owners state that ANR has filed for authorization at 
Docket No. CP96-372-000 to construct and operate an interconnect 
between ANR's facilities appurtenant to Plant Owners' facilities and 
CNG's Beaver plant facilities. Plant Owners are concerned that the 
continuation of CNG's operation of jurisdictional facilities, without 
the protections provided by the NGA, will adversely affect their rights 
and opportunities to gain non-discriminatory, open access to interstate 
markets through the interstate pipeline grid. Plant Owners believe 
that, based on recent Commission precedent, the facilities at issue 
clearly perform a transmission function, as opposed to a gathering or 
production function.
    Plant Owners allege that CNG's control of the line as an 
unregulated operator would be anti-competitive since Plant Owners 
compete with CNG for purchasing, processing and interstate marketing of 
natural gas. It is stated that denial of Plant Owners' request would 
place Plant Owners in an untenable competitive position because CNG 
would control Plant Owners' access to interstate gas markets and would 
be able to charge an unregulated rate for the same service currently 
provided, i.e., access to ANR's mainline system.
    Further, Plant Owners state that GPM Gas Corporation (GPM) filed a 
complaint against CNG at Docket No. CP96-495-000 on the basis that 
certain proposed pipeline facilities upstream of CNG's Beaver plant 
should be properly functionalized as transmission facilities subject to 
the NGA. Plant Owners have intervened and filed in support of GPM's 
complaint. Plant Owners assert that, should GPM's position be sustained 
by the Commission in that proceeding, Plant Owners' position in the 
instant filing should be affirmed a fortiori. Plant Owners believe it 
would be inconsistent with any previous application of the modified 
primary function test to have gathering facilities downstream of 
mainline transmission facilities.
    Plant Owners ask that CNG be required to show cause as to why the 
subject line should not be considered to be performing a jurisdictional 
transmission activity for which a certificate under NGA Sec. 7(c) 
should have been obtained, and pending satisfaction of the Show Cause 
order, CNG be precluded from connecting Plant Owners' gas from the 
Laverne gathering system to CNG's Beaver plant.
    Any person desiring to be heard or to make any protest with 
reference to the complaint should 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). All such motions 
or protests, and a fully responsive answer of CNG to the complaint, 
should be filed on or before July 29, 1996. 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.

Plant owners

Robert W. Jones Jr., Resources Ventures '73, 3501 Barclay, Amarillo, 
TX 79109, [phone].
Joanne H. Nor, 632\3/4\ North Doheny Drive, Los Angeles, CA 90069, 
[phone].
AnSon Company, P.O. 24060, Oklahoma City, OK 73124, [phone], 
Contact: Daniel W. Fischer.
Guest Petroleum, Incorporated, P.O. Box 805, 1600 SE 19th, Suite 
#204, Edmond, OK 73083-0805, [phone], Contact: David A. 
Guest.
Bond Operating Company, Agent, Bond Estate Properties, 325 North St. 
Paul, Suite 2810, Tower II, Dallas, TX 75201, 0 [phone], 
Contact: James H. Bond.
Bond Operating Company, 325 North St. Paul, Suite 2810, Tower II, 
Dallas, TX 75201, [phone], Contact: James H. Bond.
George M. Close, Trustee, Liberty Tower, 100 North Broadway, Suite 
3113, Oklahoma City, OK 73102-8606, [phone].
Van Oil Co. 1730 Commerce Building, Ft. Worth, TX 76102, (817) 332-
3757, Contact: J.H. Van Zant.
Madelon L. Bradshaw, 2120 Ridgmar Boulevard, Suite 12, Fort Worth, 
TX 76116, [phone], Contact: Larry O. Hulsey.
American Innovative Royalty Systems, P.O. Box 717, Pointblank, TX 
77364, [phone], Contact: Bennett Watts, Owner.
Thomas D. Cabot, Deceased, Thomas D. Cabot, Jr., Executor, Cabot 
Corporation, 75 State Street, Boston, MA 02109, [phone], 
Contact: Joan Whelton.
Chevron U.S.A. Inc., (Warren Petroleum Company is a division of 
Chevron U.S.A. Inc.), Room 2260, 1301 McKinney Street, Houston, TX 
77010, [phone], Contact: Thomas D. Oliver, Senior Counsel.
Warren Petroleum Company, 1350 South Boulder, Tulsa, OK 74119, (918) 
560-4405, Contact: G.M. Spies.
Lyons Petroleum Reserves, Incorporated, 14340 Torrey Chase 
Boulevard, Suite 270, Houston, TX 77014-1021, [phone], 
Contact: Michael J. Nicol.
Eagle Ridge Oil & Gas, Incorporated, 8517 South 77th East Place, 
Tulsa, OK 74133-6622, [phone], Contact: Mark P. Godsey, 
President.
Gallaspy Oil Properties, Ltd., P.O. Box 20472, Oklahoma City, OK 
73156, [phone], Contact: William C. Gallaspy.
Kennedy & Mitchell, Incorporated, P.O. Box 612007, Dallas, TX 75261-
2007, [phone], Contact: Michael R. Childers, Vice President.
Kenneth W. Cory, Ltd., 6565 West Loop South, Suite 780, Bellaire, TX 
77401-3518, [phone], Contact: Pat Chesnut.
*Locin Oil Corporation, 14340 Torrey Chase Boulevard, Suite 270, 
Houston, TX 77014-1021, [phone], Contact: Michael J. Nicol.
Southwest Oil Industries, 7557 Rambler Road, Suite 1100, Dallas, TX 
75231, [phone], Contact: Bobby R. McAlpin.
Trident, NGL, 13430 Northwest Freeway, Suite 1200, Houston, TX 
77040, Contact: Glenn Etienne, [phone].
Pine Crest Preparatory School Incorporated, 1501 Northeast 62nd 
Street, Fort Lauderdale, FL 3334, [phone], Contact: Kenneth 
Kone.
Statex Petroleum Incorporated, 1801 Royal Lane, Suite 110, Dallas, 
TX 75229, [phone], Contact: Dhar Carman.
Bernadette G. Wolfswinkel, 5861 South Kyrene Road #1, Tempe, AZ 
85283, [phone], Contact: Jim Gillespie.
Earthtime, Incorporated, P.O. Box 164291, Austin, TX 78716-4291, 
[phone], Contact: Steven R. Lockwood.
Alan L. Lamb, 11900 North Penn, Suite C-1, Oklahoma City, OK 73120, 
[phone], Contact: Alan L. Lamb.
C&L Processors Partnership, c/o Conoco Inc., 600 North Dairy 
Ashford, Houston, TX 77079-2197, Contact: Patrick L. Meyer.


[[Page 34807]]


    *Locin Oil Corporation is an affiliated company to Lyons 
Petroleum Reserves, Inc., but is not an owner in the Laverne Plant.

[FR Doc. 96-16931 Filed 7-2-96; 8:45 am]
BILLING CODE 6717-01-M