Applications, hearings, determinations, etc.: Petal Gas Storage Co.,

[Federal Register: November 3, 1998 (Volume 63, Number 212)]

[Notices]

[Page 59295-59296]

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

[DOCID:fr03no98-56]

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. CP99-25-000]

Petal Gas Storage Company; Notice of Application

October 28, 1998.

Take notice that on October 20, 1998, Petal Gas Storage Company (Petal), 229 Milam Street, Shreveport, Louisiana, 71101, filedin Docket No. CP99-25-000 an application pursuant to Section 7 of the Natural Gas Act for authorization to construct and operate a second underground, salt dome cavern in Mississippi for the storage of natural gas and to construct and operate related facilities necessary to provide firm and interruptible gas storage service to others, on a self-implementing basis with pre-granted abandonment authorization and at market based rates.

It is stated that Petal, a wholly-owned subsidiary of Crystal Oil Company, was authorized on August 4, 1993, in Docket No. CP93-69-000 to construct and operate facilities related to a first storage cavern in Forrest County, Mississippi. Petal states that it is proposing to construct a second storage cavern. Petal also states that the second cavern represents the initial phase of a long-term planned expansion of Petal's services. It is stated that Phase I, the focus of the subject filing, is limited in scope, in that, Petal requests authorization to drill one well, leach a salt storage cavern with a storage capacity of 5.2 Bcf and install 825 feet of flow lines. Petal states that it does not intend to use the power of eminent domain. Petal further states all construction activity, except for 412 feet of flow lines on an easement to be acquired by Petal from Dynegy Midstream Services Limited Partnership, will take place on a 10.89 acre tract that was subject to environmental review in Docket No. CP93-69-000 and that Petal owns in fee.

Petal states that Phase II of the expansion project is still in the planning process; however, it is anticipated that Phase II will involve the construction of additional pipeline facilities in order to facilitate bi-directional interconnects with Transcontinental Gas Pipe Line Corporation, Southern Natural Gas Company, Destin Pipeline Company, L.L.C., the Koch Gateway Pipeline Company (Koch Gateway) high pressure system, and Florida Gas Transmission Corporation, which, in tandem with Petal's current interconnections with Tennessee Gas Pipeline Company and the Koch Gateway low pressure system, will provide added flexibility and enable Petal to access new markets. Petal states that if it does not pursue the Phase II project in conjunction with the development of the second storage cavern, it will operate both the first and second storage caverns as a single storage facility for the benefit of both existing and new customers.

Petal states that it has entered into a precedent agreement for firm storage service which covers at least 31 percent of the storage capacity available from the second cavern. In addition, Petal states that all available capacity in the first cavern is fully utilized. Further, Petal states that the existing contract commitments for service from the first storage cavern and the precedent agreement cover 62 percent of the storage capacity from the first and second caverns. Petal states that since it plans to operate the two caverns as a single storage facility, customers will have access to capacity in both storage caverns up to the total quantity reflected in their contracts.

It is stated that upon completion of the second cavern, the two storage caverns will be capable of a combined average daily injection rate of 160,000 Mcf per day, allowing customers to fill the working gas capacity in as little as 40 days, and an average combined daily withdrawal rate of 640,000 Mcf per day, allowing customers to completely withdraw gas in 10 days.

Petal proposes to offer its storage services at market-based rates. No cost data or revenue projections were submitted with this proceeding because Petal is requesting a waiver of those Commission Regulations requiring said submission.

Any person desiring to participate in the hearing process or to make any protest with reference to said application should on or before November 9, 1998, file with the Federal Energy Regulatory Commission, 888 First Street, 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 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. 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 filedby 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 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.

[[Page 59296]]

Commenters will not be required to serve copies of fileddocuments on all other parties. However, commenters will not receive copies of all documents filedby 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 filedby commenters or those requesting intervenor status.

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 without further notice before the Commission or its designee on this application if no motion to intervene is filedwithin 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 Petal to appear or be represented at the hearing. Linwood A. Watson, Jr., Acting Secretary.

[FR Doc. 98-29349Filed11-2-98; 8:45 am]

BILLING CODE 6717-01-M