[Federal Register Volume 61, Number 171 (Tuesday, September 3, 1996)]
[Notices]
[Pages 46457-46458]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-22307]
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DEPARTMENT OF ENERGY
[Docket No. CP96-737-000]
Texas-Ohio Pipeline, Inc.; Notice of Application
August 27, 1996.
Take notice that on August 21, 1996, Texas-Ohio Pipeline, Inc.
(Texas-Ohio), 800 Gessner, Suite 900, Houston, Texas 77024, filed an
application pursuant to Section 7(b) of the Natural Gas Act for
permission and approval to abandon, by sale to Total Compression
Incorporated (TCI), two compressors and appurtenant equipment from its
existing facilities located in Garrard County, Kentucky, and for the
authority to lease back from TCI one of the compressors for continued
service on its existing pipeline facilities, all as more fully set
forth in the application which is on file with the Commission and open
to public inspection.
Texas-Ohio requests that the Commission treat the proposed
abandonment and leaseback arrangement as one transaction for purposes
of granting the necessary authorizations. Texas-Ohio further requests
that the Commission grant the requested abandonment and leaseback
authority retroactive to October 1, 1995, the date the abandonment and
leaseback transaction actually took place, or alternatively, grant
whatever waivers of the Commission's rules and regulations are
necessary to amend Texas-Ohio's NGA Section 7(c) certificate to reflect
these transactions.
Texas-Ohio states that it was constructed to operate as a winter
peaking service which allowed gas flow around historical bottlenecks
created in Tennessee Gas Pipeline Company's (Tennessee) and Texas
Eastern Transmission Corporation's (TETCO) supply area. Texas-Ohio
states that its facilities consist of approximately 600 feet of 10-inch
pipeline and two gas compression units each with approximately 980
horsepower. With the advent of Order No. 636 and the restructuring of
the interstate pipeline industry, Texas-Ohio states that its pipeline
operations have significantly changed. It is stated that unbundling of
pipeline services and rate structure changes on the interstate
pipelines have changed the economics and the flow of natural gas on
both the interconnecting pipelines of Texas-Ohio's system to a point
where historical bottlenecks occur less often, requiring substantially
less peaking service. It is stated that the original transportation
design capacity of Texas-Ohio's facilities is 60,000 Mcf per day. At
present, Texas-Ohio states that it has no long-term firm transportation
shippers; it only transports gas pursuant to interruptible and short-
term firm (less than 30 days) transportation agreements.
Texas-Ohio states that in early 1995, it began evaluating
alternatives to reduce the costs of operating its facilities in light
of a significant reduction in system throughput since the advent of
Order No. 636. Since Order No. 636, which has led to the increased use
of released firm capacity at the expense of interruptible capacity on
both Tennessee and TETCO, shippers have become for less reliant on
interruptible transportation, alleviating much of the bottlenecks that
historically occurred on these systems, and, more
[[Page 46458]]
importantly, dramatically lessening the throughput on Texas-Ohio's
facilities.
Texas-Ohio states that in an effort to reduce operating costs, in
the Spring of 1995 it explored various business opportunities,
including the potential abandonment and sale of surplus compression
facilities that it owned and the leasing back of such facilities at
lower operating expenses, thus reducing its overall cost-of-service and
rates. Specifically, Texas-Ohio estimates that a net rate reduction
from 5.18 cents/MMBtu to approximately 4.5 cents/MMBtu would occur (on
a 100 percent volumetric basis) as a result of the proposed transaction
with TCI.
Any person desiring to be heard or to make any protest with
reference to said application should on or before September 17, 1996,
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 Texas-Ohio to appear or be represented at
the hearing.
Lois D. Cashell,
Secretary.
[FR Doc. 96-22307 Filed 8-30-96; 8:45 am]
BILLING CODE 6717-01-M
