El Paso Natural Gas Co., et al.; Natural Gas Certificate Filings

DEPARTMENT OF ENERGY

[Docket No. CP94-183-000, et al.]

El Paso Natural Gas Co., et al.; Natural Gas Certificate Filings

February 4, 1994.

Take notice that the following filings have been made with the

Commission.

1. El Paso Natural Gas Co.

[Docket No. CP94-183-000]

Take notice that on January 14, 1994, El Paso Natural Gas Company

(``El Paso''), a Delaware corporation, whose mailing address is Post

Office Box 1492, El Paso, Texas, 79978, filed an application at Docket

No. CP94-183-000, pursuant to section 7(b) of the Natural Gas Act

(``NGA'') and Sec. 157.5 et seq., of the Federal Energy Regulatory

Commission's (``Commission'') Regulations Under the NGA, for an order

granting abandonment authority effective January 1, 1996, and

terminating certain certificates of public convenience and necessity in

effect on such date to the extent such certificates apply to El Paso's

gas gathering, dehydration, purification, and products extraction

facilities, with appurtenances.

El Paso states that it intends, effective January 1, 1996, to

complete a major corporate restructuring in which all of El Paso's gas

gathering, treating, and processing functions will be transferred to

and assumed by El Paso Field Services Company (``Field Services''), El

Paso's wholly-owned subsidiary. After facility transfer, El Paso will

no longer perform any gathering, dehydration, purification, or products

extraction activities, nor will it own any facilities for that purpose.

El Paso states that, first, it desires abandonment authorization

only with respect to those facilities that the Commission finds

constitute nonjurisdictional gathering or processing facilities under

section 1(b) of the NGA. Second, Field Services requires and, in its

Petition for Declaratory Order filed concurrently with El Paso's

abandonment application, requests a determination that it may establish

the rates, terms, and conditions for the nonjurisdictional services it

provides through negotiations with the parties requesting such

services. With respect to gathering facilities that were certificated,

El Paso seeks and order: (1) Determining that the facilities are not

jurisdictional facilities; and (2) upon said determination, granting

abandonment authority with respect to any certificate that would

otherwise be in the effect on January 1, 1996, to the extent such

certificate applies to a nonjurisdictional facility. All of the

certificated facilities for which abandonment is sought constitute

nonjurisdictional gathering or processing facilities under the primary

function test developed in Farmland Industries Inc., 23 FERC 61,063

(1983), it is asserted.

El Paso states that the certificated facilities which constitute

part of El Paso's gathering systems, and for which abandonment is

requested represent only $77.418,883 of gross plant out of a total of

$519,464,972 of gross plant for all facilities to be transferred to

Field Services and, on a net plant basis, only $43,151,458 out of the

$221,296,764 of total gathering system net plant (as of November 30,

1993).

In addition, El Paso states that although it will cease to provide

gathering and related services currently being rendered under its part

284 Transportation Service Agreements (``TSA''), Field Services, as

described in its Petition for Declaratory Order, intends to offer to

provide all of such services on an open-access basis. Thus, there will

be no interruption of the services available to any party currently

receiving service under such a TSA.

In addition to its part 284 transactions, El Paso sets forth that

in a few instances El Paso provides transportation services pursuant to

arrangements that are filed as ``special rate schedules'' in Volume No.

2 of El Paso's FERC Gas Tariff. Special Rate Schedule Z-8 is a

Gathering Agreement between El Paso and TOC-Rocky Mountain Inc., as

successor to Tenneco Oil Company, dated May 9, 1984, providing for

gathering services in the San Juan Basin. Special Rate Schedule Z-9 is

a similar Gathering Agreement between El Paso and Conoco Inc. also

dated May 9, 1984, and providing for gathering services in the San Juan

Basin. Inasmuch as all of the facilities required for performance under

the Agreements will be transferred to Field Services, El Paso intends

to assign the two Agreements to Field Services effective January 1,

1996. El Paso requested Commission authorization to cancel special Rate

Schedules Z-8 and Z-9 and for such abandonment authorization as may be

necessary for that purpose.

El Paso also requests such authorization as may be necessary to

abandon services under special Rate Schedule T-14 (Volume No. 2

Combination Agreement with Natural Gas Pipeline Company of America)

insofar as it provides for gathering or related services utilizing the

facilities to be transferred to Field Services. In addition, with

respect to certain exchange arrangements contained in El Paso's Volume

No. 2 Tariff which provides for El Paso to redeliver gas received on

its mainline system to delivery points on its gathering system, El Paso

intends to enter into appropriate arrangements with Field Services to

accomplish the redeliveries required and thus does not request any

Commission authorization with respect to such arrangements. El Paso

sets forth that Field Services will provide service as an open-access

transporter and specifically intends to provide any necessary gathering

services.

El Paso states that the conveyance of El Paso's gathering

facilities to Field Services on January 1, 1996, will not have any

impact on El Paso's existing gas sales obligations and arrangements,

nor will it affect El Paso's performance under any existing gas

purchase contract.

El Paso avers that all mainline services currently provided by El

Paso will continue to be provided in accordance with El Paso's FERC Gas

Tariff. No material rate issues are raised by the transfer of these

facilities. Finally, there will be no adverse environmental effects

from the abandonment proposed herein.

Comment date: February 25, 1994, in accordance with Standard

Paragraph F at the end of this notice.

2. Columbia Gas Transmission

[Docket No. CP94-202-000]

Take notice that on January 28, 1994, Columbia Gas Transmission

Corporation (Columbia Gas), 1700 MacCorkle Avenue, SE., Charleston,

West Virginia 25314-1599, filed in Docket No. CP94-202-000 a request

pursuant to Sections 157.205 and 157.211 of the Commission's

Regulations under the Natural Gas Act for authorization to install a

new point of delivery for interruptible transportation service to

Commonwealth Gas Services, Inc. (Commonwealth), as existing customer,

under its blanket certificate issued in Docket No. CP86-240-000, all as

more fully set forth in the request which is on file with the

Commission and open to public inspection.

Columbia Gas states that Commonwealth has requested the new point

of delivery. Columbia Gas indicates that the estimated maximum daily

quantity and the estimated annual quantity of natural gas that it will

provide through the new delivery point is 55,000 Dth and 20,075,000

Dth, respectively. Columbia Gas further states that the quantities to

be provided through the new delivery point will be provided on an

interruptible basis and therefore, there is no impact on Columbia Gas'

existing design day and annual obligations to its customers as a result

of the construction and operation of the new point of delivery for

interruptible transportation service.

Comment date: March 21, 1994, in accordance with Standard Paragraph

G at the end of this notice.

3. Tennessee Gas Pipeline Co.

[Docket No. CP94-205-000]

Take notice that on January 31, 1994, Tennessee Gas Pipeline

Company (Tennessee), P.O. Box 2511, Houston, Texas 77252, filed a prior

notice request with the Commission in Docket No. CP94-205-000 pursuant

to Section 157.205 of the Commission's Regulations under the Natural

Gas Act (NGA) for authorization to operate three existing delivery

point facilities (which were constructed under Section 311(a) of the

Natural Gas Policy Act of 1978) under Tennessee's blanket certificate

issued in Docket No. CP82-413-000 pursuant to Section 7 of the NGA, all

as more fully set forth in the request which is open to public

inspection.

Tennessee proposes to operate the Franklin Gas Lift delivery point

in St. Mary Parish, Louisiana; the Hurricane Sales delivery point in

Putnam County, West Virginia; and the Plymouth Sales delivery point in

San Patricio County, Texas, under its blanket certificate. Tennessee

asserts that since it now renders significant transportation service

under its Subpart G blanket certificate, operation of the delivery

points would provide more flexibility in using its facilities to the

benefit of all customers on Tennessee's system. Tennessee states that

the delivery of natural gas volumes through these existing delivery

points would not impact Tennessee's peak day and annual deliveries;

that its tariff permits the proposed activity; and that it has

sufficient capacity to accommodate the proposed changes without

detriment or disadvantage to Tennessee's other customers.

Comment date: March 21, 1994, in accordance with Standard Paragraph

G at the end of this notice.

4. Texas Eastern Transmission Corporation

[Docket No. CP94-206-000]

Take notice that on January 31, 1994, Texas Eastern Transmission

Corporation (Texas Eastern) 5400 Westheimer Court, Houston, Texas

77056-5310, filed in Docket No. CP94-206-000, a request pursuant to

Sections 157.205 and 157.211 of Commission's Regulations under the

Natural Gas Act (18 CFR 157.205) for authorization to install a new

delivery point in order to deliver natural gas to Kentucky Utilities

Company (KUC) under the blanket certificate issue in Docket No. CP82-

535-000 pursuant to Section 7 of the Natural Gas all as more fully set

forth in the request that is on file with the Commission and open to

public inspection.

Texas states that it proposes to install a new delivery in order to

deliver natural gas under the agreement covering service for KUC under

Rate Schedule IT-1. Texas Eastern states that the peak and average day

deliveries at the point will be 100,000 Dth/d.

Texas Eastern also states that the installation of the delivery

point will have no effect on Texas Eastern's peak day or annual

deliveries. Texas Eastern submits that its proposal will be

accomplished without detriment or disadvantage to Texas Eastern's other

customers.

The delivery point will be located on Texas Eastern's 30-inch Line

Nos. 10 and 15 at M.P. 438-28 in Garrard County, Kentucky. The

facilities will include two 12-inch taps to be installed by Texas

Eastern on Texas Eastern's Line Nos. 10 and 15. KUC will cause to be

installed approximately 11 miles of 20-inch pipeline from Mete Station

No. 72926 to its existing facilities in Mercer County, Kentucky. The

approximate cost of such facilities 109,000 and will be 100%

reimbursable by KUC.

Comment date: March 21, 1994, in accordance with Standard Paragraph

G at the end of this notice.

5. Southern California Gas Co.

[Docket No. CP94-207-000]

Take notice that on February 1, 1994, Southern California Gas

Company (SoCalGas), 555 West Fifth Street, Los Angeles, California

90013-1011, filed an application in Docket No. CP94-207-000. The

application requests authorization under Section 3 of the Natural Gas

Act, and the issuance of a Presidential Permit under Executive Order

10485, as amended by Executive Order 12038. SoCalGas seeks the Section

3 authorization and the Presidential Permit so that it may construct,

connect, operate, and maintain certain natural gas pipeline and

metering export facilities. The export facilities will be located in

Imperial County, California, near the International Boundary between

the United States and the Republic of Mexico.

SoCalGas proposes to construct and operate the following export

facilities:

(1) One metering station consisting of one 8-inch turbine meter run

and one 12-inch turbine meter run; and,

(2) Either approximately:

(a) 900 feet of 16-inch diameter pipeline, with appurtenances,

connecting the meter station to the border, (Bowker Road Alternative);

or,

(b) 4,800 feet of 16-inch diameter pipeline, with appurtenances,

connecting the meter station to the border, (Calzada Justo Sierra

Alternative).

SoCalGas says that it will notify the Commission of the particular

site of the border crossing no later than May 1, 1994. The export

facilities will have a capacity of 40,000 Mcf per day. SoCalGas

estimates the cost of the Bowker Road Alternative to be about

Sec. 350,000 and the cost of the Calzada Justo Sierra Alternative to be

about Sec. 590,000.

SoCalGas says that the export facilities will be used to provide

natural gas transportation service from receipt points on the SoCalGas

systems to the United States--Mexico border. The rates for this service

will be rates on file with, and approved by, the California Public

Utilities Commission. Any third-party shippers or exporters will be

required to obtain the proper export authorization from the United

States Department of Energy, Office of Fossil Energy.

A connecting pipeline to receive the exported natural gas will be

built on the Mexican side of the border and operated by Petroleos

Mexicanos. SoCalGas also describes certain other related facilities

which are scheduled to be built by it in Imperial County. SoCalGas says

that these facilities, (about 31 miles of pipeline, with

appurtenances), are under the jurisdiction of the California Public

Utilities Commission. SoCalGas says that they will be used to serve

native California natural gas load, in conjunction with the export

transportation service.

SoCalGas says that this overall project will permit the export of

natural gas to the City of Mexicali, Mexico, to serve both the existing

local distribution system in Mexicali and industrial end-users in the

Mexicali area. SoCalGas says that these customers presently use

propane-air, liquefied petroleum gas, diesel fuel, high sulfur fuel oil

and other petroleum products. SoCalGas says that the replacement of

these products by natural gas will result in a reduction in air

pollution in the U.S.-Mexico border area.

SoCalGas requests that approval of this application be granted no

later than June 1, 1994.

Comment date: February 25, 1994, in accordance with Standard

Paragraph F at the end of this notice.

6. Northern Natural Gas Company

[Docket No. CP94-209-000]

Take notice that on February 1, 1994, Northern Natural Gas Company

(Northern), 1111 South 103rd Street, Omaha, Nebraska 68124-1000, filed

in Docket No. CP94-209-000 a request pursuant to Sections 157.205 and

157.212 of the Commission's Regulations under the Natural Gas Act (18

CFR 157.205, 157.212) for authorization to construct and operate new

facilities to provide additional natural gas deliveries to Peoples

Natural Gas Company, a Division of UtiliCorp United Inc. (Peoples),

under Northern's blanket certificate issued in Docket No. CP82-401-000

pursuant to Section 7 of the Natural Gas Act, all as more fully set

forth in the request that is on file with the Commission and open to

public inspection.

Northern proposes to install a small volume measuring station and

appurtenant facilities as a new delivery point to accommodate a new

service by Peoples to Dodge City Cooperative Exchange, a commercial

end-user. Northern indicates that the delivery point would be located

at an existing farm tap in Section 34, T27S, R25W, Ford County, Kansas,

and states that the gas would be provided to Peoples under Northern's

currently effective transportation service agreement and rate

schedules. Northern advises that the peak day and annual volumes are

expected to be 24 Mcf per day and 5,000 Mcf, respectively. Northern

estimates that the facilities would cost $1,890 which would be paid by

Peoples as a contribution in aid of construction.

Comment date: March 21, 1994, in accordance with Standard Paragraph

G at the end of this notice.

7. El Paso Field Services Company

[Docket No. CP94-184-000]

February 7, 1994.

Take notice that on January 14, 1994, El Paso Field Services

Company (Field Services), El Paso Natural Gas Company's (El Paso)

wholly-owned subsidiary, filed a petition for declaratory order in

Docket No. CP94-184-000, pursuant to 18 CFR 385.207, requesting that

the Commission declare that certain gathering and production area

services proposed to be transferred from El Paso and assumed by Field

Services will no longer be subject to the Natural Gas Act and the

Commission's jurisdiction, as more fully set forth in the petition

which is on file with the Commission and open to public inspection.

Specifically, Field Services seeks a declaratory order from the

Commission finding that the rates, terms, and conditions applicable to

gas gathering and other production area services to be rendered by

Field Services commencing January 1, 1996, will not be affirmatively

regulated by the Commission but instead may be established through

negotiations between Field Services and the shippers receiving such

services, consistent with the Commission's decision in Northwest

Pipeline Corp., 59 FERC 61,115 (1992).

Field Services states that El Paso is filing concurrently with its

petition an application under Section 7(b) of the Natural Gas Act to

abandon, effective January 1, 1996, certain certificated facilities

which are used to perform the gathering and production area services.

Field Services asserts that it has been established and organized

to provide, on a stand-alone basis, non-jurisdictional production area

services and upon the transfer of the facilities described in its

petition, will effectively step into El Paso's shoes with respect to

gathering and other production area services now being provided by El

Paso and will continue to provide these services on an uninterrupted

basis.

Comment date: February 25, 1994, in accordance with the first

paragraph of Standard Paragraph F at the end of this notice.

Standard Paragraphs

F. Any person desiring to be heard or to make any protest with

reference to said application should on or before the comment date,

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) 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 a grant of the certificate and/or 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 applicant to appear or be represented at the

hearing.

G. Any person or the Commission's staff may, within 45 days after

issuance of the instant notice by the Commission, file pursuant to Rule

214 of the Commission's Procedural Rules (18 CFR 385.214) a motion to

intervene or notice of intervention and pursuant to Sec. 157.205 of the

Regulations under the Natural Gas Act (18 CFR 157.205) a protest to the

request. If no protest is filed within the time allowed therefor, the

proposed activity shall be deemed to be authorized effective the day

after the time allowed for filing a protest. If a protest is filed and

not withdrawn within 30 days after the time allowed for filing a

protest, the instant request shall be treated as an application for

authorization pursuant to Sec. 7 of the Natural Gas Act.

Lois D. Cashell,

Secretary.

[FR Doc. 94-3339 Filed 2-11-94; 8:45 am]

BILLING CODE 6717-01-P