[Federal Register Volume 60, Number 200 (Tuesday, October 17, 1995)]
[Notices]
[Pages 53777-53778]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-25637]
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DEPARTMENT OF ENERGY
[Docket No. CP96-10-000]
Transwestern Pipeline Company; Notice of Application
October 11, 1995.
Take notice that on October 4, 1995, Transwestern Pipeline Company
(Transwestern), Post Office Box 1188, Houston, Texas 77251-1188, filed
in Docket No. CP96-10-000 an application pursuant to Section 7(c) of
the Natural Gas Act for a certificate of public convenience and
necessity authorizing the construction, installation and operation of
certain compression and related facilities, all as more fully set forth
in the application which is on file with the Commission and open to
public inspection.
Specifically, Transwestern seeks authorization to (1) Construct and
operate a compressor station near Bisti, New Mexico (Bisti Compressor
Station), consisting of a 10,000 horsepower (hp) electric motor driven
compressor and related facilities, located near Mile Post 36 on
Transwestern's San Juan Lateral in San Juan County, New Mexico; (2)
construct and operate a 7,000 hp electric motor driven compressor, and
related facilities at Transwestern's existing Bloomfield Compressor
Station located on Transwestern's San Juan Lateral in San Juan County,
New Mexico; (3) operate, as discussed in the application, an existing
4,132 hp gas compressor at Transwestern's Bloomfield Compressor Station
originally certificated as a back-up compressor; (4) adjust its
capacity on its mainline and San Juan Lateral facilities on a flexible
basis in response to market demands for San Juan gas by changing the
pressure in its mainline facilities from the current level of 950 psig
to as low as 800 psig, to the extent required to meet reduced market
demand for firm transportation capacity to California, but high demand
for San Juan gas in Arizona, California and Transwestern's eastern
markets; and (5) purchase from Northwest Pipeline Corporation
(Northwest) a 77.7 percent ownership interest in Northwest's south end
mainline extension facilities extending from the Ignacio Compressor
Station near Ignacio, Colorado to the Blanco Hub near Bloomfield, New
Mexico (the La Plata Facilities), acquire capacity in such facilities,
as provided in the Northwest-Transwestern Letter of Intent (Agreement),
and operate such jointly-owned La Plata facilities. Transwestern states
that the agreement between Transwestern and Northwest provides that the
exact levels of the ownership interest and capacity to be acquired by
Transwestern are subject to change based on the amount of capacity
retained by Northwest in order to serve changes in receipt and delivery
points made by Northwest's customers as of October 20, 1995.
Transwestern further states that Northwest will use reasonable efforts
to file its abandonment application no later than November 3, 1995
reflecting customer's elections and Transwestern will supplement its
application, if necessary, on or about November 3, 1995, to also
reflect such elections.
Transwestern states that the cost of compressors and related
facilities proposed to be constructed is $14.6 million, and such
additional compression facilities will allow Transwestern to add
170,000 Dth/day of capacity to the San Juan Lateral. It is stated that
such 170,000 Dth/day is the amount of additional firm capacity on the
San Juan Lateral requested by shippers under newly executed long-term,
firm transportation agreements. According to Transwestern, granting it
the flexibility to adjust the pressure, and thereby the capacity, on
its mainline at Thoreau, to the extent necessary to meet reduced market
demand for firm mainline capacity to California, and high market demand
for San Juan gas in California and Transwestern's eastern markets,
would allow Transwestern to add up to an additional 85,000 Dth/day of
capacity on the San Juan Lateral from the compression facilities
proposed herein. While capacity on the San Juan Lateral would be
increased by up to 85,000 Dth/day as a result of reducing mainline
capacity on a firm basis. However, Transwestern states that it would
maintain its ability to fully serve all of its firm customers.
Transwestern states that with the flexibility to adjust the
pressure, and thereby the capacity, on the mainline to respond to
market demand, the additional compression facilities proposed herein
would result in a total capacity increase of 255,000 Dth/day on the San
Juan Lateral. It is stated that with such additional capacity, the
capacity of the San Juan Lateral would total up to 775,000 Dth/day on
an annual basis, as compared to the current design capacity of 520,000
Mcf/day. On a peak day, Transwestern contends that the increased
capacity on the San Juan Lateral could reach up to 275,000 Dth/day, for
a total peak day capacity of up to 795,000 Dth/day.
Based on existing receipt and delivery points (which are subject to
change as provided in the Agreement), Transwestern states that it will
acquire a 77.7 percent ownership interest in the La Plata Facilities,
and, in addition to other capacity defined in the Agreement, 276,000
Dth/day of north to south capacity through the La Plata A compressor
station. It is stated that Northwest will retain an ownership interest
of 22.3 percent, and with respect to the north to south capacity,
24,000 Dth/day of capacity, and sufficient south to north capacity to
meet its customers' needs. Transwestern states that the cost of its
77.7 percent ownership interest is $21.0 million, based on the
estimated book value at the projected closing date. According to
Transwestern, the 276,000 Dth/day of north to south capacity through
the La Plata A compressor station includes contracts for 201,000 Dth/
day capacity previously subscribed by Northwest which are intended to
be assigned to Transwestern. Transwestern states that the Agreement
provides that Transwestern will attempt to negotiate such assigned
contracts, but that if such contracts cannot be renegotiated and/or
assigned, Northwest will retain such contracts, and the capacity and
ownership percentage retained by Northwest will be adjusted to the
extent that Northwest will retain north to south capacity. In addition,
Transwestern contends that such 276,000 Dth/day includes 75,000 Dth/day
of capacity newly subscribed by Transwestern under long-term firm
transportation agreements.
Transwestern respectfully requests expedited action by the
Commission in light of the following circumstances: (1) The need to
meet the market demand evidenced by the executed firm transportation
agreements submitted with the application; (2) the need to provide San
Juan producers with the means to transport their gas to market and
avoid the shut-in of gas; (3) submission with the application of a
complete environmental report; (4) the limited construction window of
July 1 through mid-February due to the environmental factors discussed
in such report; and (5) the fact that no
[[Page 53778]]
determination of rolled-in versus incremental rate treatment is
required in light of Transwestern's use of its existing Part 284 rates.
Accordingly, Transwestern respectfully requests that the Commission
provide for a shorter notice period for the filing of protests or
motions to intervene so that the Commission could issue a preliminary
determination by January 19, 1996, and a final certificate by March 31,
1996.
Any person desiring to be heard or to make any protest with
reference to said application should on or before October 26, 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) 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 with 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 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 Transwestern to appear or be represented at
the hearing.
Lois D. Cashell,
Secretary.
[FR Doc. 95-25637 Filed 10-16-95; 8:45 am]
BILLING CODE 6717-01-M