[Federal Register Volume 60, Number 105 (Thursday, June 1, 1995)] [Notices] [Page 28601] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 95-13308] ----------------------------------------------------------------------- DEPARTMENT OF ENERGY Southern Natural Gas Company; Notice of Petition for Declaratory Order [Docket No. CP95-506-000] May 25, 1995. Take notice that on May 22, 1995, Southern Natural Gas Company (Southern), AmSouth-Sonat Tower, 1900 Fifth Avenue North, Birmingham, Alabama 35203, filed a petition in Docket No. CP95-506-000, requesting that the Commission declare that Southern's Miley Line, located in the Lockhart Crossing Field, Livingston Parish, Louisiana, is a gathering line exempt from the provisions 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. Southern proposes to sell its Miley Line, a natural gas pipeline extending approximately 7,800 feet from the Miley #1 well to Amoco Production Company's (Amoco) central dehydration and separation facility. It is stated that on April 9, 1995, Southern and Amoco entered into a settlement agreement to amend certain pricing provisions of gas purchase contracts and to provide for the sale by Southern to Amoco of the Miley Line. Under the terms of the settlement agreement, Amoco will purchase the Miley Line from Southern at its remaining book value, upon the issuance by the Commission of a declaratory order disclaiming jurisdiction over the pipeline. Southern submits that its Miley Line is a ``gathering facility'' under Section 1(b) of the NGA as interpreted by the Commission under the ``modified primary function'' test, as set forth in Amerada Hess Corp., et al., as amended. 52 FERC para. 61,268 (1990). Southern notes that characteristic of gathering lines, the Miley Line is a very short, small-diameter pipeline, less than two miles long and four inches in diameter. Southern argues that the central point in the field analysis is inappropriate in this case because the Miley Line feeds the natural gas it collects into the Amoco Plant for processing. Southern states that there are no compressor facilities located along the Miley Line, consistent with the requirement of minimal compression on gathering facilities. Southern notes that the Miley Line is located completely behind a processing plant, with volumes flowing from the point of production at the Miley #1 well to the Amoco Plant, strongly supporting a finding that the facility performs a gathering function. Southern further notes that the Miley Line begins at the Miley #1 well, satisfying the requirement that wells be located along all or part of the facilities. Southern states that the gas gathered by the Miley Line is untreated rather than ``pipeline quality'', a characteristic found to be consistent with the gathering function. Finally, Southern relates that upon Amoco's purchase of the pipeline, the Miley Line will be owned and operated by a traditionally unregulated corporation which will continue in its historic practice of moving its own gas production to its various customers through its capacity in the line. Southern reports that Amoco presently performs no jurisdictional transportation functions in the Lockhart Crossing Field. Any person desiring to be heard or to make any protest with reference to said petition should on or before June 15, 1995, file with the Federal Energy Regulatory Commission, 825 North Capitol 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). 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. 95-13308 Filed 5-31-95; 8:45 am] BILLING CODE 6717-01-M