Applications, hearings, determinations, etc.: Shenandoah Gas Co.,

[Federal Register: March 9, 1999 (Volume 64, Number 45)]

[Notices]

[Page 11463-11465]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr09mr99-84]

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. CP99-222-000]

Shenandoah Gas Company; Notice of Application for Abandonment

March 3, 1999.

Take notice that on February 22, 1999, Shenandoah Gas Company (Shenandoah), P.O. Box 2400, Winchester, Virginia 22604 filedan application pursuant to Section 7(b) of the Natural Gas Act (NGA) and Part 157 of the Commission's Regulations requesting permission to abandon its certificated facilities in West Virginia by sale to Mountaineer Gas Company (Mountaineer), all as more fully set forth in the application which is on file with the Commission and open to public inspection. This filing may be viewed on the web at http:// www.ferc.fed.us/online/rims.htm (call 202-208-2222 for assistance).

Shenandoah states that it is engaged in the distribution of natural gas for residential, commercial, and industrial use in portions of Virginia and West Virginia. Shenandoah's service area in Virginia includes Clarke, Frederick, Shenandoah, and Warren Counties, the City of Winchester and the Towns of Berryville, Middletown, New Market, Stephens City, Strasburg, and Woodstock. Shenandoah's West Virginia service area includes Berkeley County, a portion of Jefferson County abutting Berkeley County and the City of Martinsburg. It is stated that the rates and terms and conditions of service Shenandoah provides to customers in its Virginia service area are regulated by the Virginia State Corporation Commission (Virginia SCC). The West Virginia Public Service Commission (West Virginia PSC) regulates the rates and terms and conditions of service

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Shenandoah provides to customers in its West Virginia service area.

Shenandoah states that it receives natural gas in the northern portion of its system through two interconnections with Columbia Gas Transmission Corporation (Columbia) at Columbia's Nineveh and Cedar Creek Gate Stations in Warren County, Virginia. From the Cedar Creek Gate Station, Shenandoah states that it transports gas through its original 6-inch transmission pipeline that extends northeast to the City of Martinsburg, West Virginia.\1\ Shenandoah states that under normal operating conditions, gas received from Columbia at the Cedar Creek Gate Station is used to serve markets in communities adjacent to the pipeline in Virginia and in the City of Winchester, Virginia. From the Nineveh Gate Station, located approximately 6.5 miles east of the Cedar Creek Gate Station, Shenandoah states that it transports gas through its 12-inch transmission pipeline which extends north and converges with the original 6-inch transmission pipeline at the Clearbrook Regulator Station in Frederick County, Virginia.\2\ At the Clearbrook Regulator Station, under normal operating conditions, gas from the 12-inch transmission pipeline enters into the original 6-inch transmission pipeline and flows south to reinforce deliveries to Shenandoah's markets in Virginia and north to serve Shenandoah's markets in West Virginia. Shenandoah states that, if necessary, gas received from Columbia at the Cedar Creek Gate Station can flow north into West Virginia.

\1\ Shenandoah states that it will retain the portion of this pipeline that is in Virginia.

\2\ Shenandoah states that this pipeline is located entirely in Virginia and will be retained by Shenandoah.

Shenandoah operates various facilities under Section 7(c) of the NGA and also received a service area determination under Section 7(f) of the NGA, 16 FERC para. 61,087 (1981). It is stated that this service area includes Clarke, Frederick, Shenandoah, and Warren Counties (excluding certain areas in Shenandoah County) and the City of Winchester and other communities in Virginia. In West Virginia, the service area includes Berkeley County, a portion of Jefferson County abutting Berkeley County and the City of Martinsburg. Shenandoah also received a blanket transportation certificate under Part 284 of the Commission's regulations to conduct activities to the same extent as intrastate pipelines under Section 311 of the Natural Gas Policy Act of 1978, 44 FERC para. 61,108 (1988). Shenandoah states that it will provide firm interstate transportation service on behalf of Mountaineer under its blanket certificate.

Pursuant to a November 22, 1998 Asset Purchase and Sale Agreement (Agreement), Shenandoah will sell to Mountaineer all of its natural gas transmission and distribution facilities located in West Virginia, including facilities that were previously certificated under NGA section 7(c). Shenandoah states that Mountaineer is a local distribution company providing public utility gas service in West Virginia, subject to regulation by the West Virginia PSC. Shenandoah further states that Mountaineer will dedicate the transferred facilities to providing retail service to Shenandoah's former West Virginia customers.

Currently, the only source of gas supply to serve customers in Shenandoah's service territory in West Virginia is through Shenandoah's interconnections with Columbia in Warren County, Virginia. Shenandoah states that under the terms of the Agreement it will provide a firm interstate transportation service on behalf of Mountaineer, receiving gas in Virginia and redelivering up to 16,000 dekatherms per day to Mountaineer at the West Virginia border. It is stated that the Agreement also provides for Shenandoah to assign to Mountaineer, subject to consent of Columbia and Columbia Gulf Transmission Company, upstream Rate Schedule FTS, FSS, and SST entitlements used to serve Shenandoah's West Virginia customers.

It is stated that, under the terms applicable to the Part 284 transportation service Shenandoah intends to provide, Mountaineer may arrange for the transportation of its own gas supplies, act as agent for any of its customers desiring such service, or release capacity to existing transportation customers in West Virginia, as requested by such customers, or any others on an as available basis. Shenandoah states that it will provide the firm transportation service for an initial term of five years. It further states that the service may be canceled thereafter by either party after two years notice given after the expiration of the initial term.

After abandonment of its certificated facilities in West Virginia, Shenandoah will retain transmission facilities located in Virginia which will be dedicated, in part, to providing firm interstate transmission service to Mountaineer and its customers, as requested by such customers.

After the sale of Shenandoah's West Virginia utility assets to Mountaineer, Shenandoah's service area will be reduced, as it will no longer provide retail service in West Virginia. However, Shenandoah states that it will continue to provide local distribution service to its customers in Virginia. Shenandoah will also provide a firm interstate transportation service to Mountaineer, subject to the Commission's regulation, delivering gas supplies on behalf of Mountaineer at the West Virginia border. Shenandoah states that any further expansion or modification of its facilities related to providing firm interstate transmission service for deliveries into West Virginia would be subject to NGA section 7 requirements. Shenandoah states that if the Commission determines it to be appropriate, Shenandoah will retain its current service area determination under Section 7(f) of the NGA.

Any person desiring to be heard or to make any protest with reference to said application should on or before March 24, 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 385.214 or 385.211) and the Regulations under the Natural Gas Act (18 CFR 157.10). All protests filedwith 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 filedwithin the time required herein, or 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

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unnecessary for Shenandoah to appear or be represented at the hearing. David P. Boergers, Secretary.

[FR Doc. 99-5704Filed3-8-99; 8:45 am]

BILLING CODE 6717-01-M