Columbia Gas Transmission Corporation, et al.; Natural Gas Certificate Filings

DEPARTMENT OF ENERGY

[Docket No. CP96-213-001, et al.]

Columbia Gas Transmission Corporation, et al.; Natural Gas

Certificate Filings

June 11, 1996.

Take notice that the following filings have been made with the

Commission:

1. Columbia Gas Transmission Corporation

[Docket No. CP96-213-001]

Take notice that on June 7, 1996, Columbia Gas Transmission

Corporation (Columbia), a Delaware corporation, having its principal

place of business at 1700 MacCorkle Avenue, S.E., Charleston, West

Virginia 25314-1599, filed an abbreviated application pursuant to

Section 7(c) of the Natural Gas Act, to amend its application for a

certificate of public convenience and necessity previously filed with

the Commission on February 28, 1996, in Docket No. CP96-213-000, for

its Market Expansion Project as supplemented on March 18, 1996 and

April 30, 1996.

Columbia's February 28, 1996 application sought a certificate of

public convenience and necessity authorizing construction to provide

506,795 dekatherms per day (dth/d) of additional daily firm

entitlements to its customers over a three-year period beginning in

1997. Specifically, Columbia sought authority to: (i) increase the

performance capabilities of certain existing storage fields; (ii)

construct and operate, upgrade, and replace certain natural gas

facilities; (iii) abandon certain natural gas facilities and certain

base storage gas; and (iv) such other authorizations and/or waivers as

may be deemed necessary to implement Columbia's Project.

By this amendment, Columbia now proposes to withdraw certain

proposed facility projects including 45.5 miles of pipeline and 14,130

horsepower of compression located in southern Pennsylvania, and in lieu

of such projects, to lease firm capacity from Texas Eastern

Transmission Corporation (Texas Eastern).

After the filing of Columbia's application, Texas Eastern proposed

to Columbia that Texas Eastern expand a portion of its pipeline system

in Pennsylvania in order to make available to Columbia an amount of

firm capacity (141,500 dekatherms (Dth) per day) pursuant to a Lease at

less cost to Columbia and its customers than Columbia's cost to expand

its southern Pennsylvania Line 1804 system, which construction has been

previously identified in Columbia's application as Projects 4.3, 4.4,

4.5, 4.12, 4.13, 4.15, 4.16, 5.2, 5.3, 5.11, 5.12, 5.13 and 5.14.

Columbia requests Commission approval of the lease arrangement with

Texas Eastern to treat the lease as an operating lease, and to recover

its costs pursuant to its TCRA. The lease costs to be paid by Columbia

to Texas Eastern are proposed to be recovered by Columbia as an

operating cost under Account 858.

Under the terms of a lease agreement entered into by Texas Eastern

and Columbia, Texas Eastern will: i) construct, own, operate, and

maintain certain facilities on its pipeline system in southern

Pennsylvania and make available the resulting 141,500 Dth/d of capacity

to Columbia on a firm basis.

The lease provides that Texas Eastern will lease capacity to

Columbia on a phased-in basis commencing November 1, 1997, consistent

with the phased implementation of Columbia's Project, up to a total of

141,500 Dth/d of firm transportation capacity, plus such additional

capacity as needed to accommodate retainage, as follows:

Phase-in date of capacity in (Dth/d) and monthly charge

1. November 1, 1997................................ 36,000 $242,310

2. November 1, 1998................................ 85,800 540,750

3. November 1, 1999................................ 141,500 807,670

and continuing through the remainder of the term of the Lease.

In addition, Columbia will reimburse Texas Eastern for its monthly

operation and maintenance costs associated with

[[Page 30607]]

the Texas Eastern incremental facilities being constructed to provide

the above phased-in amounts of capacity under the lease (``O&M

Payment''). Such operation and maintenance costs include a stipulated

monthly charge for operation and maintenance expenses, excluding fuel,

electric power, and property taxes, which expenses will be adjusted

based on the Gross National Product Implicit Price Deflator as

specified in the Lease Agreement attached to the application. Charges

for fuel, electric power and property taxes are based on actual

incurred costs as detailed in the Lease Agreement.

Columbia will utilize the leased capacity on Texas Eastern's

system, along with the capacity to be created on its own system, to

render the firm transportation and storage service for which Columbia's

expansion customers have entered into 15-year service agreements.

Columbia will deliver gas into Texas Eastern's facilities at its

Waynesburg Compressor Station and will receive gas out of Texas

Eastern's facilities at its Eagle Compressor Station also in

Pennsylvania. The details of Texas Eastern's proposal are set forth in

its application which is being filed concurrently in Docket No. CP96-

559-000.

Comment date: June 28, 1996, in accordance with Standard Paragraph

F at the end of this notice.

2. Great Lakes Gas Transmission Limited Partnership

[Docket No. CP96-553-000]

Take notice that on May 31, 1996, Great Lakes Gas Transmission

Limited Partnership (Great Lakes), One Woodward Avenue, Suite 1600,

Detroit, Michigan 48226, filed in Docket No. CP96-553-000 a request

pursuant to Sections 157.205 and 157.211 of the Commission's

Regulations under the Natural Gas Act (18 CFR 157.205, 157.211) for

authorization to construct and operate a meter station and dual line

taps in Itasca County, Minnesota, under Great Lakes' blanket

certificate issued in Docket No. CP90-2053-000 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.

Great Lakes states that it will deliver up to 500 Mcf of natural

gas per day for the account of the City of Cohasset, Minnesota

(Cohasset). Natural gas will be received at existing receipt points

located in Great Lakes' Eastern Zone and an equivalent quantity will be

redelivered upstream through the new meter station and line taps, to be

located in Great Lakes' Western Zone. This transportation for

Cohasset's account will not impact Great Lakes' existing peak day and

annual delivery capability, can be provided without detriment or

disadvantage to any other shipper on Great Lakes' system, is not

prohibited by its existing tariff, and the total volumes delivered will

not exceed total volumes authorized prior to this request.

In addition, Great Lakes states that the proposed new meter station

and line taps will be constructed adjacent to its main line proximate

to the City of Cohasset, in Itasca County, Minnesota. Great Lakes

further states that Cohasset will utilize Great Lakes' service in

connection with providing new natural gas service within the City of

Cohasset. Great Lakes estimates that the cost of constructing its

proposed facilities will be approximately $300,000.

Comment date: July 26, 1996, in accordance with Standard Paragraph

G at the end of this notice.

3. Green Canyon Gathering Company

[Docket No. CP96-557-000]

Take notice that on June 4, 1996, Green Canyon Gathering Company

(Green Canyon), P.O. Box 2511, Houston, Texas 77252-2511, filed in

Docket No. CP96-557-000 a petition under Rule 207 of the Commission's

Rules of Practice and Procedure (18 CFR 385.207) for a declaratory

order stating that a proposed pipeline project, known as the Green

Canyon Gathering System (Gathering System), which Green Canyon proposes

to construct and operate on the Outer Continental Shelf (OCS) in the

Gulf of Mexico, will be exempt from the Commission's jurisdiction under

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.

It is stated that the proposed Green Canyon Gathering System is

designed to gather gas produced from new and existing platforms on the

OCS and to deliver the production to interstate and intrastate

pipelines that connect to the Gathering System at the outlet side of an

onshore processing plant. Green Canyon states that the Gathering System

will extend to the edge of the OCS, will be able to connect to

platforms throughout its entire length (including beyond the OCS and

near the shore), and will have no compression. It is further stated

that, upon being placed in service, the Gathering System will provide

gas producers on the OCS and their shippers with a means by which to

deliver their supplies to the interstate and intrastate networks. Green

Canyon contends that the increased competition that this will provide

for services on the OCS will lead to reduced costs and will further the

Commission's policy to promote market oriented services in the natural

gas industry.

Green Canyon states that the Gathering System will be 133 miles

long and 24 inches in diameter throughout its length. It will extend

into water depths of approximately 630 feet and will be capable of

receiving production from platforms located in deep waters well in

excess of 200 meters in the Green Canyon, Ewing Bank and Mississippi

Canyon Areas of the OCS. It is stated that the Gathering System will be

constructed in an inverted ``Y'' configuration, with the three legs of

the system interconnecting in South Timbalier Block 193. It is stated

that the east leg will be 36.5 miles long, the west leg will be 32

miles long and the north leg will be 55 miles to the onshore Leeville

liquids separation facility in La Fourche Parish, Louisiana and an

additional 9.82 miles to the Golden Meadows processing plant.

It is stated that the Gathering System is designed to gather gas

produced along its length, including gas produced near the shore along

the north leg in the Ship Shoal, South Timbalier and Grand Isle Areas

of the OCS, as well as in deep waters well beyond the Continental

Shelf. Green Canyon projects that the Gathering System will be capable

of accessing approximately 505 Bcf of estimated reserves along the

north leg, approximately 1,227 Bcf along the east leg and 1,685 Bcf

along the west leg. Green Canyon anticipates that laterals of various

lengths and diameters will be built by the producers from their

production platforms to the Gathering System, allowing the system to

operate as a ``spine'' system.

It is stated that at this developmental stage of the proposed

project, no production has been committed to the Gathering System.

However, based on exploration and development drilling activity in the

Gathering System's service area, it is stated that future

deliverability is expected to greatly outpace the ability of the

existing pipeline and gathering infrastructure in the region to deliver

gas onshore for processing.

Green Canyon contends that the OCS is characterized by a mix of

pipeline systems; some of which have been functionalized as interstate

transmission and others are considered to involve nonjurisdictional

gathering. It is stated that the owners of these facilities include

interstate and unregulated pipelines as well as natural gas producers

who have constructed gathering systems to access their own

[[Page 30608]]

production in addition to the production of others. It is stated that

OCS facilities owned by interstate pipelines are mostly functionalized

as transmission subject to the Commission's jurisdiction under Section

1(b) of the NGA, while those owned by the producers have largely been

determined to be gathering systems exempt from the Commission's

jurisdiction under the NGA. It is averred that this has given the

producers an artificial advantage in competing for the gathering

business in the OCS, since they are free of the restraints to which the

regulated systems are subject.

Green Canyon believes that a pressing need exists for gathering

services on the OCS, which it hopes to fulfill with its proposed

facilities. In order for an investment in this project to be justified,

however, Green Canyon states that it must be able to compete on an

equal footing with the unregulated producers on the OCS for gathering

services. Thus, Green Canyon seeks for the Commission to declare its

Green Canyon Gathering System a nonjurisdictional gathering system.

In order to meet a projected in-service date of November 1997,

Green Canyon will need to enter into binding commitments by the last

quarter of 1996 for materials related to the construction of the

Gathering System. It is stated that construction must begin by the

spring of 1997 if the Gathering System is to come on line by the fourth

quarter of 1997. Accordingly, Green Canyon requests that the Commission

issue a declaratory order of nonjurisdictional status no later than

September 1996.

Comment date: July 2, 1996, in accordance with the first paragraph

of Standard Paragraph F at the end of this notice.

4. Texas Eastern Transmission Corporation

[Docket No. CP96-559-000]

Take notice that on June 7, 1996, Texas Eastern Transmission

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

77056-5310, filed in the above docket an application with the Federal

Energy Regulatory Commission (``Commission'') pursuant to Section 7(c)

of the Natural Gas Act for a certificate of public convenience and

necessity and related authorizations permitting Texas Eastern to:

(1) Construct, install, own, operate and maintain the incremental

pipeline facilities and associated ancillary above-ground facilities to

comply with applicable Department of Transportation requirements,

install one new gas turbine compressor unit, modify six (6) existing

reciprocating units, upgrade two existing compressor units and modify

an existing M&R Station, all as more fully described in the

application;

(2) Lease to Columbia Gas Transmission Corporation (``Columbia'')

141,500 Dth/d of firm transportation capacity, plus fuel, on a phased

basis (Columbia filed its proposal to lease these facilities from Texas

Eastern concurrently in Docket No. CP96-213-001);

(3) Charge and collect, over the term of the capacity lease

agreement between Texas Eastern and Columbia (``Capacity Lease

Agreement''), all monthly charges as provided for in the Capacity Lease

Agreement;

(4) Pregranted abandonment of the certificate of public convenience

and necessity and related authorizations granted herein, upon the

termination of the Capacity Lease Agreement or any reduction in leased

capacity quantities after completion of the primary term; and

(5) Such other authority and/or waivers as may be deemed necessary

by the Commission to facilitate implementation of the proposal

contained herein.

Specifically, Texas Eastern proposes to construct the following

Expansion Facilities:

(a) Replace approximately 6.15 miles of idled 20-inch pipeline with

new 24-inch pipeline connecting existing M&R Station 70012 at milepost

1140.38 to the 24-inch Crayne Farm Pipeline at milepost 1146.50 in

Greene County, Pennsylvania;

(b) Replace approximately 10.97 miles of idled 24-inch pipeline

with new 36-inch pipeline from approximate milepost 1060.67 to

approximate milepost 1071.64 in Somerset County, Pennsylvania between

Texas Eastern's existing Uniontown (Station 21-A) and Bedford (Station

22-A) Compressor Stations;

(c) Replace approximately 9.12 miles of idled 24-inch pipeline with

new 36-inch pipeline from approximate milepost 1114.61 to approximate

milepost 1123.73 in Fulton County, Pennsylvania between Texas Eastern's

existing Bedford (Station 22-A) and Chambersburg (Station 23)

Compressor Stations;

(d) Upgrade by 4500 HP to 11,000 HP the existing 6500 HP electric

compressor at the Uniontown (Station 21-A) Compressor Station;

(e) Add 13,400 gas turbine HP and compressor cylinder modifications

at Texas Eastern's Marietta (Station 24) Compressor Station, with

cylinder modifications to be performed on six existing reciprocating

units;

(f) Upgrade the existing 3500 HP gas turbine unit at Texas

Eastern's Waynesburg Compressor Station by 1,500 HP in 1999;

(g) Upgrade Texas Eastern's existing interconnection with Columbia

at Waynesburg, M&R Station 70012 located in Greene County,

Pennsylvania, to accommodate 141,500 Dth/d of natural gas plus fuel;

and

(h) Install ancillary above-ground appurtenant facilities,

including but not limited to mainline, crossover and blowoff piping and

valving, pressure regulating devices, launchers and receivers for

internal inspection instruments and cleaning devices, and associated

piping and valves for operating and maintenance purposes associated

with each of the referenced pipeline replacements.

As indicated in Exhibits F-I through F-IV of its application, the

Expansion Facilities are proposed to be installed within Texas

Eastern's existing pipeline corridor.

In order to provide the Expansion Capacity as scheduled on November

1, 1997, Texas Eastern desires to commence construction of the

Expansion Facilities by May 1, 1997. Assuming commencement of

construction on May 1, 1997, the estimated total cost of the proposed

facilities in current year dollars is approximately $63.2 million.

The Lease provides that Texas Eastern will lease capacity to

Columbia on a phased-in basis commencing November 1, 1997, consistent

with the phased implementation of Columbia's Project, up to a total of

141,500 Dth/d of firm transportation capacity, plus such additional

capacity as needed to accommodate retainage, and charge for such

capacity as follows:

Phase-in date of capacity in (Dth/d) and monthly charge

1. November 1, 1997................................ 36,000 $242,310

2. November 1, 1998................................ 85,800 540,750

3. November 1, 1999................................ 141,500 807,670

and continuing through the remainder of the term of the Lease.

In addition, Columbia will reimburse Texas Eastern for its monthly

operation and maintenance costs associated with the Texas Eastern

incremental facilities being constructed to provide the above phased-in

amounts of capacity under the Lease (``O&M Payment''). Such operation

and maintenance costs include a stipulated monthly charge for operation

and maintenance expenses, excluding fuel, electric power, and property

taxes, which expenses will be adjusted based on the Gross National

Product Implicit Price Deflator as specified in the Lease Agreement

[[Page 30609]]

attached to the Application. Charges for fuel, electric power and

property taxes are based on actual incurred costs as detailed in the

Lease Agreement.

Comment date: June 28, 1996, in accordance with Standard Paragraph

F at the end of this notice.

Standard Paragraphs

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

reference to said filing should on or before the comment date 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 385.211 and 385.214) 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 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 filing 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 the applicant to appear or be represented at

the hearing.

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

the 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 Section 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

therefore, 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 Section 7 of the Natural

Gas Act.

Lois D. Cashell,

Secretary.

[FR Doc. 96-15252 Filed 6-14-96; 8:45 am]

BILLING CODE 6717-01-P