[Federal Register Volume 63, Number 25 (Friday, February 6, 1998)] [Notices] [Pages 6163-6164] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 98-2926] ----------------------------------------------------------------------- DEPARTMENT OF ENERGY Federal Energy Regulatory Commission [Docket No. CP97-315-001] Independence Pipeline Company; Notice of Petition To Amend February 2, 1998. Take notice that on December 19, 1997, Independence Pipeline Company (Independence) 500 Renaissance Center, Detroit, Michigan 48243, filed in Docket No. CP97-315-001, pursuant to Section 7 (c) of the Natural Gas Act, a petition to amend its pending application filed in Docket No. CP97-315-000 to, among other things, reroute certain segments of the new pipeline it has proposed to construct and operate between Defiance, Ohio and Leidy, Pennsylvania, all as more fully set forth in the application which is on file with the Commission and open to public inspection. On March 31, 1997, Independence filed with the Commission in Docket No. CP97-315-000 requesting authority to construct and operate an approximately 370-mile, 36-inch diameter pipeline system to transport gas from Defiance, Ohio to Leidy, Pennsylvania. The proposed pipeline is designed to provide transportation services on an open-access basis to shippers seeking to transport gas principally from expansion projects destined for the Chicago Hub to the Leidy Hub, thereby facilitating access to gas markets in Ohio, Pennsylvania and throughout the Eastern United States. Since the original application was filed, several events have occurred. One is the addition of a new partner in the project. The original partners in Independence were ANR Independence Pipeline Company (ANR Independence) and Transco Independence Pipeline Company (Transco Independence), subsidiaries of ANR Pipeline Company (ANR) and Transcontinental Gas Pipe Line Corporation (Transco), respectively. On September 23, 1997, Seneca Independence Pipeline Company (Seneca Independence), an affiliate of National Fuel Gas Supply Corporation (National Fuel) reached agreement with ANR Independence and Transco Independence to purchase an interest in the Independence partnership. Each partner, including Seneca Independence, will now hold a 33\1/3\% interest in the partnership. By the petition to amend, Independence proposes to modify the original application to: (1) Reflect routing changes; (2) Reflect changes in compression; (3) Update estimated facility costs for the project; (4) Add to the tariff an option for negotiated rates; and (5) Reduce the proposed maximum tariff rates. Independence states that since the original application was filed, it has met with landowners, public officials, environmental agencies, non-government organizations, and others with regard to the pipeline route. As a result of these discussions, Independence is proposing route changes in Ohio and Pennsylvania which it believes will better address existing land use issues and which are environmentally preferable to the route originally proposed. Independence states that the proposed reroutes will increase the overall length of the project from 369.7 to 400.4 miles. The most notable reroute involve the portion of the pipeline in Stark and Summit Counties, Ohio and the eastern-most 105 miles of the pipeline in Pennsylvania. The proposed Pennsylvania reroute (the Clarion Reroute) is significant in that the last 105 miles of the pipeline will follow a completely different right-of-way which is well north of the original route. The Clarion Reroute will use existing pipeline corridors for approximately 59 miles.\1\ In addition, environmental review of the final 65 miles was previously conducted as part of another project. Independence asserts the Clarion Reroute is easier to build, has better access roads and will provide better access to National Fuel's pipeline and storage system. --------------------------------------------------------------------------- \1\ Approximately 59 miles of the Clarion Reroute will involve use of National Fuel's existing right-of-way. National Fuel will remove certain of its existing lines within its right-of-way and Independence will install larger diameter replacement pipeline using the same trench. National Fuel has filed a related application to abandon the subject pipeline facilities in Docket No. CP98-200-000. --------------------------------------------------------------------------- Independence has reexamined the configuration of the system in conjunction with the proposed pipeline reroutes and has concluded that although the total amount of compression (60,000 Horsepower (HP)) is sufficient, a three compressor station design optimizes system capability more than the two proposed in the original application. It is stated that the [[Page 6164]] proposed station at Defiance, Ohio will remain unchanged (two 15,000 HP units). However, Independence now proposes two downstream compressor stations, each of which would have a 15,000 HP unit. One station would be located in Wayne County, Ohio (the Canaan Station) and the other would be located in Clarion County, Pennsylvania (the Porter Station). Independence now proposes 3 meter stations. Independence had originally proposed stations at the western and eastern termini of the system, one at Defiance, Ohio and one at Leidy, Pennsylvania. Independence now proposes to add a meter station in Elk County, Pennsylvania at an interconnection with National Fuel. Independence further proposes 5 taps, 4 in Ohio and 1 in Pennsylvania, all at unspecified locations. The proposed taps are designed to permit possible future interconnections with East Ohio Gas Company, Columbia Gas Transmission Company, and National Fuel--interconnections now under discussion. Independence states that it is revising the estimated facility costs of the project from $629.6 million to $677.9 million to take into account costs attributable to the proposed route changes, the addition of a new meter station, changes to compression facilities, and a general update in project costs. Independence states that the redesigned compression, along with the increases in pipeline length and other minor factors has changed maximum capacity from 838,500 Mcf per day (Mcfd) to 916,300 Mcfd (summer design) and from 943,300 Mcfd to 1,001,100 Mcfd (winter design). In order to best meet the needs of the market, Independence now proposes to offer the option of negotiated rates. Therefore, Independence requests authority for tariff language to enable Independence to negotiate rates with its shippers, consistent with the Commission's policy statement on negotiated rates. Independence further proposes to reduce the maximum tariff rates for service on the proposed pipeline. The change reflects the revised project capital costs, a change in the depreciable life of the plant from 25 to 40 years, and a reduced long-term interest rate assumption (from 8.25% to 7.50%). Any person desiring to participate in the hearing process or to make any protest with reference to said petition to amend should, on or before February 23, 1998, file with the Federal Energy Regulatory Commission, 888 First St., 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) 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. The Commission's rules require that protestors provide copies of their protests to the party or parties directly involved. 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. A person obtaining intervenor status will be placed on the service list maintained by the Secretary of the Commission and will receive copies of all documents filed by the applicant and by every one of the intervenors. An intervenor can file for rehearing of any Commission order and can petition for court review of any such order. However, an intervenor must submit copies of comments or any other filing it makes with the Commission to every other intervenor in the proceeding, as well as an original and 14 copies with the Commission. A person does not have to intervene, however, in order to have comments considered. A person, instead, may submit two copies of comments to the Secretary of the Commission. Commenters will be placed on the Commission's environmental mailing list, will receive copies of environmental documents and will be able to participate in meetings associated with the Commission's environmental review process. Commenters will not be required to serve copies of filed documents on all other parties. However, commenters will not receive copies of all documents filed by other parties or issued by the Commission and will not have the right to seek rehearing or appeal the Commission's final order to a federal court. The Commission will consider all comments and concerns equally, whether filed by commenters or those requesting intervenor status. David P. Boergers, Acting Secretary. [FR Doc. 98-2926 Filed 2-5-98; 8:45 am] BILLING CODE 6717-01-M