[Federal Register Volume 63, Number 169 (Tuesday, September 1, 1998)]
[Notices]
[Pages 46428-46429]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-23412]
[[Page 46428]]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket Nos. CP98-529-000; CP98-603-000; CP98-690-000, and CP98-738-
000]
Pacific Interstate Transmission Company, Northwest Alaskan
Pipeline Company, PG&E Gas Transmission (Northwest Corporation),
Transwestern Pipeline Company, Pacific Interstate Transmission Company,
Pan-Alberta Gas (U.S.) Inc., and Northwest Pipeline Corporation; Notice
of Applications and Notice of Petition for Declaratory Order and
Request for Waivers
August 26, 1998.
Take notice that on May 8, 1998, Pacific Interstate Transmission
Company (PITCO), 633 West Fifth Street, Suite 5300, Los Angeles,
California 90071, filed an application in Docket No. CP98-529-000
pursuant to Section 7(b) of the Natural Gas Act (NGA), Section 157.18
of the Commission's Regulations, and Section 9 of the Alaskan Natural
Gas Transportation Act (ANGTA).
Take notice that on June 9, 1998, Northwest Alaskan Pipeline
Company (Northwest Alaskan), One Williams Center, Tulsa, Oklahoma
74172, filed an application pursuant to Section 7(b) of the NGA,
Section 157.18 of the Commission's Regulations, and Section 9 of the
ANGTA.
Take notice that on July 24, 1998, PG&E Gas Transmission, Northwest
Corporation (PGT), Transwestern Pipeline Company (Transwestern), PITCO,
and Pan-Alberta Gas (U.S.) Inc. (Pan-Alberta) (together as Joint
Petitioners), filed a petition pursuant to Section 385.207(a)(2) of the
Commission's Regulations, requesting a Declaratory Order and waiver of
certain tariff provisions to complement the requests by PITCO in Docket
No. PC98-529-000.
Take notice that on August 21, 1998, Northwest Pipeline Corporation
(Northwest Pipeline), 295 Chipeta Way, Salt Lake City, Utah, 84158,
filed an application in Docket No. CP98-738-000 pursuant to Section
7(c) of the NGA, Sections 157.6 and 157.7 of the Commission's
Regulations, and Section 9 of the ANGTA.
The above filings are not formally consolidated, but are directly
interrelated, and it is now appropriate for the Commission to receive
public comments on these related requests. The details of these
requests are more fully set forth in the applications and the petition
which are on file with the Commission and open to public inspection.
PITCO is a natural gas company under the NGA pursuant to
certificates first granted by the Commission in 1980 authorizing
PITCO's sale of up to 300 MMCF/D of natural gas to Southern California
Gas Company (SoCal Gas), PITCO's corporate affiliate. PITCO's initial
certificate was issued as an integral part of the Commission's
approvals of the ``pre-build'' of the Western Leg of the Alaska Natural
Gas Transportation System (ANGTS) under ANGTA.
Pursuant to Western Leg pre-build certificates, PITCO purchases
Canadian natural gas imported by Northwest Alaskan. Northwest Alaskan
purchases the gas from Pan-Alberta Gas, Ltd. at the U.S.-Canada border
near Kingsgate, British Columbia. PITCO says that the current authority
to export 240 MMCF/D of gas granted to Pan-Alberta Gas Ltd. expires on
October 31, 2003. In the United States, PITCO's gas is transported from
the U.S.-Canada border to Stanfield, Oregon, by PGT where the gas is
delivered to Northwest Pipeline. Northwest Pipeline then redelivers the
gas to El Paso Natural Gas Company (El Paso) and Transwestern at their
interconnections near Ignacio, Colorado.
SoCal Gas purchases the gas from PITCO at either Ignacio, Colorado
or Blanco, New Mexico, under PITCO's cost-of-service tariff which
aggregates gas supply, pipeline facility, and transportation costs.
SoCal gas moves the gas through the El Paso and Transwestern San Juan
Basin facilities and mainline transmission facilities for receipt into
its intrastate system at the Arizona-California border.
Now, PITCO requests authority for the following in order for SoCal
Gas to restructure its gas supply and transportation arrangements under
a ``global settlement'' with its customers:
1. Abandonment of its sales to SoCal Gas under its Rate Schedule
CQS-1 and Rate Schedule S-1; and
2. Abandonment by sale of its 30% undivided interest in certain
jurisdictional facilities which are part of the pipeline system of
Northwest Pipeline.\1\
---------------------------------------------------------------------------
\1\ As described herein, Northwest Pipeline has filed an
application under Section 7(c) to acquire PITCO's equity interest in
these facilities.
---------------------------------------------------------------------------
As part of the proposed abandonments and the broader restructuring,
PITCO also wants to assign its pipeline capacity rights on the PGT and
Northwest Pipeline systems to Pan-Alberta. Likewise, SoCal Gas also
intends to permanently transfer by assignment to Pan-Alberta some of
its firm capacity on the Transwestern system. PITCO also intends to
direct bill SoCal Gas the costs of revising and terminating gas sales
and purchase agreements and transferring of capacity, including a
payment of $31 million to Pan-Alberta Gas Ltd. PITCO states that its
restructuring proposal incorporates a new gas sales agreement between
SoCal Gas and Pan-Alberta. PITCO says that the parties intend to
execute a Closing Agreement which will control all of the details and
timing of the broader restructuring transaction/arrangements.
PITCO requests expeditious consideration of its application by or
before October 1, 1998, as the conditions and economic considerations
of the proposed restructuring are based on implementation during, but
in no event beyond, the end of 1998. PITCO states that the requested
abandonment authority and other authorizations are in the present and
future public convenience and necessity. As a result of the abandonment
and other authorizations requested, PITCO will no longer be a natural
gas company providing jurisdictional service.
Northwest Alaskan seeks to abandon the sale to PITCO of a daily
average of 240,000 Mcf of Canadian natural gas transported through the
pre-build Western Leg of the ANGTS.\2\ Northwest Alaskan states that
the proposed abandonment is part of the broader restructuring
transaction/arrangements among itself, Pan-Alberta, PITCO and SoCal
Gas.\3\ Northwest Alaskan says that the abandonment approval should
become effective on the first day of the first month following the day
on which the satisfaction of the conditions precedent to the Closing
Agreement.
---------------------------------------------------------------------------
\2\ On June 9, 1998, Northwest Alaskan filed in Docket No. RP98-
247-000 certain related tariff sheets of its FERC Gas Tariff to
reflect the proposed abandonment and termination of Rate Schedule X-
4 (sale to PITCO) and tariff revisions to Rate Schedules X-1, X-2
and X-3 (sales for pre-build Eastern Leg of the ANGTS). This filing
was noticed separately on June 12, 1998, under Section 154.210 of
the Commission's Regulations.
\3\ On June 9, 1998, Northwest Alaskan filed an application at
the Department of Energy requesting a transfer of its import
authorization for the pre-build Western Leg supplies to Pan-Alberta.
---------------------------------------------------------------------------
The Joint Petitioners request waiver of the following tariff
provisions:
1. PGT--Section 28 (Capacity Release) of PGT's Transportation
General Terms and Conditions, Sheet Nos. 89 through 115.
2. Transwestern--Section 30 (Capacity Release Program) of
Transwestern's General Terms and Conditions, Sheet Nos. 95 through 95L.
The Joint Petitioners say that they recognize that capacity release
is the strongly preferred method by which
[[Page 46429]]
pipeline capacity is transferred. However, to accommodate the broader
restructuring transaction/arrangements for the pre-build Western Leg of
ANGTS, the Joint Petitioners request waiver of the respective capacity
release tariff provisions of PGT and Transwestern to the extent
necessary to accommodate PITCO's requested assignment of capacity. Pan-
Alberta will, however, be subject to all other terms and conditions
contained within PGT's and Transwestern's tariffs (including but not
limited to creditworthiness provisions). The Joint Petitioners say that
the requested waivers are needed because PITCO's transfer of capacity
to Pan-Alberta on the three pipelines includes, in part, a single
payment by PITCO to Pan-Alberta.\4\
---------------------------------------------------------------------------
\4\ A separate petition for waiver related to the broader
transaction was filed by Northwest Pipeline in Docket No. RP98-370-
000 on August 3, 1998. This filing was noticed separately on August
7, 1998, under Section 154.210 of the Commission's Regulations.
---------------------------------------------------------------------------
They say that in order for the broader restructuring proposal to be
implemented as desired, Pan-Alberta must have access to, or control of,
firm capacity from the Canadian border to Blanco, New Mexico. They also
say that loss of any one segment, if it is posted under the standard
capacity release provisions, will cause the overall package to fail.
They say that neither current Commission rules nor the tariffs of PGT
or Transwestern specifically allow a releasing shipper to condition an
award of capacity to an acquiring shipper based on that same acquiring
shipper also obtaining complementary capacity on upstream and
downstream systems from the same releasing shipper.
Northwest Pipeline seeks certificate authority to acquire PITCO's
30% undivided interest in certain jurisdictional facilities which are
part of the pipeline system of Northwest Pipeline. The acquisition
would be pursuant to the terms of the August 19, 1998, Sales Agreement
between Northwest Pipeline and PITCO. These facilities were constructed
and are operated by Northwest Pipeline pursuant to a certificate issued
in Docket No. CP79-56. These facilities include abut 350 miles of 30-
inch and 24-inch pipeline loops in Oregon and Idaho; 3,500 horsepower
of additional compression at Northwest Pipeline's Baker and Caldwell
Compressor Stations; and appurtenant facility modifications at three
other compressor stations and the Stanfield Meter Station.
Pursuant to the Sales Agreement, Northwest Pipeline will pay PITCO
$3,028 for PITCO's interest in the pre-build facilities. Northwest
Pipeline says that PITCO stipulates that the stated purchase price
represents its current net book value for its pre-build assets. The
Sales Agreement also provides that PITCO will pay Northwest Pipeline
$2,276,000 as a one-time reimbursement in lieu of the future O&M
payments which will be foregone due to the resulting early termination
of the 1978 Investment and Operating Agreement for these facilities.
Northwest Pipeline also requests the Commission to grant any
waivers of its accounting regulations necessary to allow Northwest
Pipeline to record on its books only the proposed payment to PITCO, and
not the original cost and associated accumulated depreciation for the
thirty percent interest being acquired from PITCO.
Northwest Pipeline says that its acquisition of PITCO's interest in
the pre-build facilities is proposed to occur concurrently with
implementation of PITCO's restructuring proposals which are at issue in
Docket No. CP98-529-000. Accordingly, Northwest Pipeline says that its
acquisition is contingent upon acceptable resolution in both that
proceeding, and in its related Petition for Tariff Waiver proceeding in
Docket No. RP98-370, of all issues associated with PITCO's proposed
assignment to Pan-Alberta of its existing firm transportation agreement
with Northwest Pipeline.
Any person desiring to be heard or making any protest with
reference to said applications and petition should on or before
September 16, 1998, file with the Federal Energy Regulatory Commission,
888 First 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) 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. The Commission's rules require
that protestors provide copies of their protests to the party or person
to whom the protests are directed. 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.
A person obtaining intervenor status will be placed on the service
list maintained by the Secretary of the Commission and will receive
copies of all documents issued by the Commission, filed by the
applicant, or filed by all other intervenors. An intervenor can file
for rehearing of any Commission order and can petition for court review
of any such order. However, an intervenor must serve copies of comments
or any other filing it makes with the Commission to every other
intervenor in the proceeding, as well as filing an original and 14
copies with the Commission.
A person does not have to intervene, however, in order to have
comments considered. Commenters will not be required to serve copies of
filed documents on all other parties. However, commenters will not
receive copies of all documents filed by other parties or issued by the
Commission, and will not have the right to seek rehearing or appeal the
Commission's final order to a Federal court. The Commission will
consider all comments and concerns equally, whether filed by the
commenters or those requesting intervenor status.
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 NGA and the
Commission's Rules of Practice and Procedure, a hearing will be held
without further notice before the Commission or its designee on these
applications if no motion to intervene is filed within the time
required herein, if the Commission on its own review of the matter
finds that a grant of the certificate is 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 any parties to appear or be represented at
the hearing.
Linwood A. Watson, Jr.,
Acting Secretary.
[FR Doc. 98-23412 Filed 8-31-98; 8:45 am]
BILLING CODE 6717-01-M
