[Federal Register Volume 63, Number 228 (Friday, November 27, 1998)]
[Notices]
[Pages 65581-65582]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-31594]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. RP99-152-000]


Trailblazer Pipeline Company; Notice of Petition for Waiver

November 20, 1998.
    Take notice that on November 18, 1998, Trailblazer Pipeline Company 
(Trailblazer) filed, pursuant to Rule 207 of the Commission's Rule of 
Practice and Procedure, to seek a limited waiver of the capacity 
release policies and regulations of the Federal Energy Regulatory 
Commission (Commission), codified at 18 CFR 284.243. Specifically, 
Trailblazer requests waiver of said regulations to allow replacement 
shippers, taking release of firm capacity from Trailblazer's Rate 
Schedule T shippers, to exercise the right of first refusal in the 
original contracts, under specified circumstances.

[[Page 65582]]

    In support of its petition, Trailblazer states that it is a 
project-financed pipeline, the construction of which was authorized in 
Opinion No. 138.\1\ Because of the constraints of the project financing 
loan agreement, Trailblazer is subject to limitations in dealing with 
the shippers that ``backstopped'' the system by entering into firm 
long-term contracts for firm capacity. Absent the consent of the 
lenders, the original Rate Schedule T shippers cannot be supplanted by 
new shippers and this limitation extends to the acquisition of firm 
capacity through permanent capacity releases.
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    \1\ 18 FERC para. 61,244, rehearing denied, 19 FERC para. 61,116 
(1982).
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    Trailblazer states that the Rate Schedule T shippers on Trailblazer 
have now entered into what are in effect permanent capacity releases 
(releases at the maximum rate for the remaining term of the T 
Agreement) covering all of the firm capacity that remains dedicated 
under the Rate Schedule T Agreements. A summary of these releases is 
set out at Appendix A to the petition.
    Trailblazer states the Commission has already granted a waiver to 
allow the release of capacity held by shippers under Rate Schedule T. 
Trailblazer now requests a further waiver of Commission Regulations and 
policies, so that the replacement shippers taking what are in effect 
permanent releases of Rate Schedule T capacity would be able to 
exercise the right of first refusal set out at Section 21.2 of the 
General Terms and Conditions in Trailblazer's Tariff with respect to 
the firm capacity covered by the Rate Schedule T release agreement. The 
waiver would be limited to situations where the shipper is paying the 
applicable maximum rate for the remaining term of the underlying 
(released) Rate Schedule T contract pursuant to a long-term release 
Agreement (one year or longer).
    Any person desiring to be heard or to protest said filing should 
file a motion to intervene or a protest with the Federal Energy 
Regulatory Commission, 888 First Street, NE., Washington, DC 20426, in 
accordance with Sections 385.214 or 385.211 of the Commission's Rules 
and Regulations. All such motions or protests must be filed on or 
before November 30, 1998. Protests will be considered by the Commission 
in determining the appropriate action to be taken, but will not serve 
to make protestants parties to the proceedings. Any person wishing to 
become a party must file a motion to intervene. Copies of this filing 
are on file with the Commission and are available for public inspection 
in the Public Reference Room.
Linwood A. Watson, Jr.,
Acting Secretary.
[FR Doc. 98-31594 Filed 11-25-98; 8:45 am]
BILLING CODE 6717-01-M