[Federal Register Volume 60, Number 171 (Tuesday, September 5, 1995)]
[Notices]
[Page 46117]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-21874]
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DEPARTMENT OF ENERGY
[Docket No. CP95-705-000]
Shell Offshore Inc.; Notice of Petition for Declaratory Order
August 29, 1995.
Take notice that on August 23, 1995, Shell Offshore Inc. (Shell),
P.O. Box 576, Houston, Texas 77001, filed a petition for declaratory
order in Docket No. CP95-705-000 requesting that the Commission declare
that, following Shell's purchase of certain offshore facilities from
Natural Gas Pipeline Company of America (Natural), that those
facilities are gathering facilities exempt from the Commission's
Regulations pursuant to Section 1(b) 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.
Shell states that the facilities consist of currently-certificated
interstate transmission facilities owned by Natural along with
associated metering facilities. It is indicated that the facilities
consist of (1) 2.8 miles of 8-inch pipeline that extends between
Shell's ``A'' and ``B'' platforms in Eugene Island Block 331, offshore
Louisiana, (2) a dual 8-inch meter and appurtenant facilities located
on Shell's ``A'' platform in Eugene Island Block 331, offshore
Louisiana, (3) a 10-inch dual meter and appurtenant facilities located
on Shell's platform in Vermilion Block 321, offshore Louisiana, (4) a
dual 6-inch meter and appurtenant facilities located on Shell's
platform in Vermilion Block 340, offshore Louisiana, and (5) a dual 8-
inch meter and appurtenant facilities located on Shell's platform in
West Cameron Block 565, offshore Louisiana.
Shell asserts that once it acquires the facilities their primary
function will be gathering as set forth in Farmland Industries, Inc.,
23 FERC para.61,063 (1983), as later modified by Amerada Hess Corp., et
al., 52 FERC para.61,268 (1990), (Amerada Hess). It is indicated that
under that test the Commission applies six criteria to determine the
jurisdictional status of a facility: (1) the diameter and length of a
facility; (2) the extension of facilities beyond a central point in the
field; (3) the geographic configuration of the system; (4) the location
of compressors and processing plants; (5) the location of wells along
all or part of the facility; and (6) the operating pressure of the
line. In Amerada Hess, the Commission indicated that it would consider
other factors, in addition to the Farmland criteria, especially for
offshore facilities, including the changing technical and geographic
nature of exploration and production, the purpose, location and
operation of the facility, the general business activity of the
facility, and whether the jurisdictional determination is consistent
with the objectives of the Natural Gas Act and the Natural Gas Policy
Act of 1978. Shell also points out that an application of the non-
physical factors set out in Amerada Hess demonstrates that the
facilities should be classified as gathering facilities.
Shell asserts that the acquired facilities will perform gathering
functions. Lateral line 331 is relatively short length and small
diameter, as is characteristic of traditional offshore gathering lines.
It is stated that, the geographic configuration of Lateral 331 is
``intrafield'' a gathering line feeding production from one platform in
one portion of the offshore block to another platform in another
portion of the same offshore block, where the production can be
measured and delivered to an interstate pipeline for transportation to
shore. It is further stated that, Lateral 331 is located entirely
behind the onshore processing plants, in federal offshore waters. Shell
indicates that, Lateral 331 will be owned by a producer and will be
used by the producer to gather production from one of its production
platforms to another. Shell avers that, the proposed new owner of
Lateral 331 is primarily engaged in exploration and production
activities and will use the facilities in furtherance of its
exploration and production activities to gather production. It is
indicated that, the measurement facilities to be acquired are located
on four of Shell's production platforms, and will be used by Shell to
measure the volume of gas produced and collected at each of the four
platforms prior to delivery to the pipeline company for transportation,
thus performing a production related function.
Any person desiring to be heard or to make any protest with
reference to said petition should on or before September 19, 1995, file
with the Federal Energy Regulatory Commission, Washington, DC 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. 95-21874 Filed 9-1-95; 8:45 am]
BILLING CODE 6717-01-M
