[Federal Register Volume 63, Number 249 (Tuesday, December 29, 1998)]
[Page 71633]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-34353]



Federal Energy Regulatory Commission
[Docket No. CP99-109-000]

Koch Gateway Pipeline Company; Notice of Application

December 22, 1998.
    Take notice that on December 10, 1998, Koch Gateway Pipeline 
Company (Koch Gateway), Post Office Box 1478, Houston, Texas 77521-
1478, filed in Docket No. CP99-109-000 an application pursuant to 
section 7(b) of the Natural Gas Act, for permission and approval to 
abandon by sale to MidCoast Gas Pipeline, Inc. (MidCoast), a Texas 
intrastate pipeline company, certain transmission and gathering 
facilities located in southern Texas, all as more fully set forth in 
the application which is on file with the Commission and open to public 
    Koch Gateway requests authorization to abandon, by sale to 
MidCoast, approximately 130 miles of various size transmission pipeline 
and metering facilities, as well as certain certificated gathering 
facilities, located in Bee, Live Oak, Jim Wells, San Patricio, Nueces 
and Duval Counties, Texas, referred to as Indexes 23, 50 and 85; and, 
collectively referred to herein as the Bruni System. Koch Gateway 
states that these facilities are no longer economically justified as a 
part of its interstate pipeline system. Koch Gateway further states 
that the facilities are not located near its other productive pipeline 
assets and that Koch Gateway has no plans to expand its natural gas 
service in the area served by the assets proposed for abandonment. In 
addition, Koch Gateway states that the operation and maintenance costs 
of the Bruni System are relatively high and are not proportionate to 
the revenue generated by the facilities. Koch Gateway states that 
abandonment of the facilities will reduce operating and maintenance 
costs on its system and will result in the transfer of under-utilized 
facilities to an entity that can more efficiently and profitably employ 
them in providing economical and reliable natural gas transportation 
service. It is stated that the Purchase and Sale Agreement provides 
that Koch Gateway will sell the above facilities to MidCoast for 
    Koch Gateway states that it currently utilizes the facilities 
proposed for abandonment to provide gathering and firm transportation 
services to a single customer, Entex, Inc. (Entex), a local 
distribution company and delivers natural gas to various farm taps and 
small city-gates on behalf of Entex. It is stated that Entex does not 
oppose the proposed abandonment and has reached agreement with MidCoast 
for continued natural gas service. Koch Gateway states that it proposes 
to provide 30-day written notice to all affected interruptible 
gathering and transportation customers. It is stated that after the 
sale of the assets, MidCoast intends to offer interruptible gathering 
and transmission services at negotiated rates.
    Koch Gateway states that it currently provides a no-cost pooling 
service and shippers who select such service can pool their gas 
receipts at a theoretical pooling point. It is stated that in this 
region, the pooling point is designated as the Refugio Pooling Point. 
Koch Gateway further states that there is currently no transportation 
fee charged for transporting natural gas through transmission 
facilities from receipt points to the related pooling point; however, 
there is a gathering fee charged for receipt volumes moved through 
gathering facilities. Koch Gateway states that after the sale of the 
Bruni System, this service will still be available on its system. It is 
stated that shippers will be able to pool receipt volumes from the 
northeast terminus of Index 50 to the Refugio Pooling Point. Koch 
Gateway explains that shippers selecting this service after the sale of 
the Bruni System will pay a gathering and/or transportation fee to 
MidCoast and, if they so choose, can still pool to the Refugio Pooling 
Point for no additional transportation fee on Koch Gateway.
    Any person desiring to be heard or to make any protest with 
reference to said application should on or before January 12, 1999, 
file with the Federal Energy Regulatory, 888 First street, NE, 
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 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 the 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 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 permission and approval for the proposed abandonment are 
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 Koch Gateway to appear or be represented at 
the hearing.
Linwood A. Watson, Jr.,
Acting Secretary.
[FR Doc. 98-34353 Filed 12-28-98; 8:45 am]