[Federal Register Volume 64, Number 238 (Monday, December 13, 1999)]
[Notices]
[Pages 69518-69520]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-32115]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket Nos. CP00-36-000, CP00-37-000, and CP00-38-000]


Guardian Pipeline, L.L.C.; Notice of Applications for 
Certificates

December 7, 1999.
    Take notice that on November 30, 1999, Guardian Pipeline, L.L.C. 
(Guardian), Fairlane Plaza South, 330 Town Center Drive, Dearborn, 
Michigan 48126-2712, filed an application in Docket No. CP00-36-000 
pursuant to Section 7(c) of the Natural Gas Act (NGA) seeking a 
certificate of public convenience and necessity to construct, install, 
own, operate, and maintain a new interstate natural gas pipeline and 
ancillary facilities. In Docket No. CP00-37-000, Guardian requests a 
blanket certificate pursuant to Subpart F of Part 157 of the 
Commission's regulations to perform certain routine activities and 
operations. In addition, in Docket No. CP00-38-000, Guardian seeks a 
blanket certificate pursuant to Subpart G of Part 284 of the 
Commission's regulations to provide open-access transportation of 
natural gas for others, all as more fully set forth in the applications 
which are one file with the Commission and open to public inspection. 
This filing may be viewed on the web at http://www.ferc.us/online/
rims.htm (call 202-208-2222 for assistance).
    Guardian states that it is a limited liability company formed under 
the laws of the State of Delaware, with its principle place of business 
in Dearborn, Michigan. Guardian further states that it is jointly owned 
by CMS Gas Transmission and Storage Company, Viking Gas Transmission 
Company, and WICOR, Inc.
    Guardian states that, in accordance with Order No. 609, within 
three days of filing its application, Guardian will provide notice to 
directly affected and adjacent landowners notifying them that Guardian 
filed its application. Guardian states that this notification will 
include the information required by the Commission in Order No. 609.
    Guardian states that its proposed pipeline system will be comprised 
of approximately 140.3 miles of new 36-inch natural gas transmission 
pipeline extending from the Chicago Hub near Joliet, Illinois to a 
terminus near Ixonia, Wisconsin. Guardian states that it will also 
construct an 8.5-mile-long, 16-inch Eagle Lateral off its mainline at a 
point near Eagle, Wisconsin. At Ixonia, Guardian proposes to 
interconnect with nonjurisdictional facilities to be constructed, 
owned, and operated by Wisconsin Gas Company (Wisconsin Gas), a local 
distribution company exempt from the Commission's regulation under the 
Hinshaw amendment to the NGA. At Eagle, via its Eagle Lateral, Guardian 
proposes to interconnect with the existing non-jurisdictional Eagle 
pipeline, jointly owned by Wisconsin Gas and Wisconsin Electric Power 
Company.
    Guardian states that it will provide up to 750,000 Dth/d of 
transportation service in a cost-effective, safe and environmentally 
responsible manner from the multiple gas supply sources and competitive 
upstream transportation, storage and related service providers at the 
Chicago Hub. Guardian estimates that the total cost of constructing the 
pipeline and appurtenant facilities will be approximately $224.3 
million.
    Guardian proposes an in-service date of November 1, 2002. To meet 
its targeted in-service date, Guardian requests that the Commission 
issue a Preliminary Determination on non-environmental issues on or 
before May 15, 2000, a Draft Environmental Impact Statement in 
September 2000, a Final Environmental Impact Statement in January 2001, 
and final certificate authorization on or before March 1, 2001.
    Guardian contends that issuance of the requested certificates by 
March 1, 2001 is necessary to ensure that Guardian has adequate time to 
secure rights-of-way and to construct its pipeline to meet its November 
1, 2002 in-service date and satisfy its agreements with its shippers. 
Guardian states that it has been advised by one of its shippers that 
the existing long-term contracts with the shipper's existing pipeline 
supplier begin expiring on their own terms on October 31, 2003. 
Guardian states that it has been further advised that such shipper must 
give notices of intent as to the roll-over of the contracts on or 
before October 31, 2001. According to Guardian, this shipper requires 
regulatory certainty that Guardian will be able to meet its in-service 
date before it is required to provide such contract notices to the 
existing pipeline supplier.
    In addition to its mainline and Eagle Lateral, Guardian states that 
it will also construct and operate an Alliance Meter Station and 
Launcher Facility in Will County, Illinois; a 100-foot-long, 30-inch 
Northern Border Interconnect Pipeline and Meter Station in Will County, 
Illinois; a 550-foot-long, 24-inch Midwestern Gas Interconnect Pipeline 
and Meter Station in Will County, Illinois; a 200-foot-long, 16-inch 
Natural Gas Pipeline Company of America Interconnect Pipeline and Meter 
Station in Will County, Illinois; a 25,080 horsepower (hp) Joliet 
Compressor Station in Will County, Illinois; an Eagle Lateral Tap Valve 
and Launcher Facility at the beginning of the Eagle Lateral in Walworth 
County, Wisconsin; an Eagle Meter Station and Receiver Facility in 
Waukesha County, Wisconsin; a Northern Natural Meter Station in 
Walworth County, Wisconsin; and an Ixonia Meter Station and Receiver 
Facility in Jefferson County, Wisconsin.
    According to Guardian, its application meets the requirements of 
the Commission's recently-issued

[[Page 69519]]

regulations regarding certificate applications promulgated in Order No. 
603 as well as the standards set forth in the Commission's Statement of 
Policy issued in Docket No. PL99-3-000. Specifically, Guardian states 
that, as a new pipeline, its project passes the Commission's ``no 
subsidies'' test. Guardian further states that its project was 
developed to eliminate or minimize impacts on the potentially affected 
interests of existing customers, captive shippers of existing 
pipelines, and landowners and the environment. Guardian contends that 
the public benefits of its project are significant and outweigh any 
adverse impacts that may remain despite Guardian's minimization of 
those impacts. For all of these reasons, Guardian asserts that its 
project is in the public convenience and necessity.
    Guardian states that it held an open season in which it made 
capacity on its system available to interested shippers on a 
nondiscriminatory basis. As a result Guardian states that it executed 
binding precedent agreements with four shippers for 702,500 Dth/d of 
firm transportation service. Guardian asserts that the executed 
precedent agreements demonstrate that there is market demand for 
natural gas transportation service on Guardian from the Chicago Hub to 
markets in northern Illinois and Wisconsin. Guardian further asserts 
that the market study included in Exhibit I to its application 
demonstrates that projected growth in gas demand in the Wisconsin and 
northern Illinois markets support its project.
    Based on executed precedent agreements to date, Guardian proposes 
to provide firm transportation service for the following shippers:

------------------------------------------------------------------------
                                                   Volume        Term
                   Shippers                       (Dth/d)      (years)
------------------------------------------------------------------------
Wisconsin Gas Company.........................      650,000           10
Alliant Energy................................       10,000           10
WPS Energy Services, Inc......................        2,500           10
Shipper A (confidential)......................       40,000           10
------------------------------------------------------------------------

    Guardian proposes to provide open access firm transportation 
service under Rate Schedule FT-1, and interruptible transportation 
service under Rate Schedule IT-1, under rates, terms, and conditions 
set forth in its pro forma tariff submitted with its application. 
Guardian proposes to offer both negotiated and recourse rates. Guardian 
explains its recourse rates are traditional cost-of-service based 
rates, designed under the straight-fixed variable method. Guardian 
contends that its negotiated rates are different from its recourse 
rates in that Guardian offered to all shippers in its open season the 
option to elect, instead of recourse rates, either (i) a 10-year or 15-
year fixed rate, or (ii) an annual declining rate for a minimum term of 
10 years up to a maximum term of 15 years. Guardian says that during 
its open season process it offered firm shippers the choice of 
negotiated or recourse rates and each shipper who executed a precedent 
agreement elected negotiated rates.
    Guardian estimates the total capital cost of constructing the 
pipeline and appurtenant facilities will be approximately $224.3 
million, excluding AFUDC. Of the total estimated capital construction 
cost, Guardian states that $196.3 million relates to pipeline and 
ancillary facilities, and $28.0 million relates to a compressor 
station. Guardian says that to date, its project has been financed by 
equity furnished by the project sponsors. Guardian states that, 
following issuance of the Commission's certificate order, it 
anticipates that the project will be financed during the remainder of 
the construction phase through debt capital, with the debt raised in 
the commercial bank market. Guardian's anticipated initial capital 
structure on the in-service date will be 70% debt and 30% equity, and 
with an 8.25% cost of debt and 14% return on equity. Guardian expects 
that the credit support for the debt will be the shipper contracts and 
the debt will be non-recourse to project sponsors during the initial 
term of the shipper contracts. Guardian states that it has not yet 
finalized precise financing plans.
    Guardian further requests that the Commission grant any waivers of 
its regulations that the Commission may deem necessary to grant the 
relief requested herein.
    Guardian states that, in accordance with Order No. 603, the name, 
address, and telephone number for a Guardian contact person is: Ms. 
Molly Mulroy, Guardian Pipeline, L.L.C., 835 Virginia Road, Unit B, 
Crystal Lake, Illinois 60014, 1-800-782-7182.
    Any person desiring to be heard or to make protest with reference 
to said application should on or before December 28, 1999, file with 
the Federal Energy Regulatory Commission, 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 385.211 or 385.214) 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 Commission and will receive copies of all 
documents issued by the Commission, filed by the applicant, or filed by 
all other 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 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,

[[Page 69520]]

whether filed by commenters or those requesting intervener status.
    Take further notice that, pursuant to the authority contained in 
and subject to jurisdiction conferred upon the Commission by Sections 7 
and 15 of the NGA 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 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 Guardian to appear or be represented at the 
hearing.
Linwood A. Watson, Jr.,
Acting Secretary.
[FR Doc. 99-32115 Filed 12-10-99; 8:45 am]
BILLING CODE 6717-01-M