Applications, hearings, determinations, etc.: Maritimes & Northeast Pipeline, L.L.C.,

[Federal Register: February 2, 1999 (Volume 64, Number 21)]

[Notices]

[Page 5041-5043]

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

[DOCID:fr02fe99-42]

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket Nos. CP96-178-008, CP96-809-007, and CP97-238-008]

Maritimes & Northeast Pipeline, L.L.C.; Notice of Amendment

January 27, 1999.

Take notice that on January 22, 1999, Maritimes & Northeast Pipeline, L.L.C. (Maritimes), filedin Docket Nos. CP96-178-008, CP96- 809-007, and CP97-238-008, an application pursuant to Section 7(c) of the Natural Gas Act for an amendment to the certificates previously issued to Maritimes to construct, install, own, operate, and maintain the Maritimes Phase I and Phase II facilities from Dracut, Massachusetts to a point at the international border between the United Stats and Canada near Woodland, Maine. Maritimes's proposal is more fully set forth in the application for amendment which is on file with the Commission and open to public inspection.

Maritimes is a limited liability company, organized and existing under the laws of the state of Delaware, Maritimes' members are M&N Management Company, an indirect, wholly owned subsidiary of Duke Energy Corporation; Westcoast Energy (U.S.) Inc., an indirect, wholly owned subsidiary of Westcoast Energy, Inc.; Mobil Midstream Natural Gas Investments Inc., an indirect, wholly owned subsidiary of Mobil Corporation; and Scotia Power U.S., Ltd., an indirect, wholly subsidiary of NS Power Holdings, Inc.

Maritimes requests that its certificates be amended as they apply to Phases I and II service:

(1) To phase the in-service date of certain of its lateral line facilities;

(2) To defer, subject to further market commitments, certain other laterals;

(3) To eliminate one compressor unit at the Baileyville, Maine compressor station;

(4) To install one compressor unit at Richmond, Maine on a back up basis;

(5) To uprate each of the three compressor units to be installed (two at Richmond, one at Baileyville) to 8311

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horsepower (HP) to reflect the manufacturer's current rating;

(6) To construct, install and operate minor delivery facilities, including about 250 feet of 10-inch diameter pipeline in Haverhill, Massachusetts;

(7) To revise its initial rates to reflect changed cost estimates and revised billing determinants;

(8) To revise certain of its initial tariff sheets, including those tariff sheets addressing creditworthiness standards;

(9) To the extent authorization is required, to implement certain non-conforming provisions in its executed service and backstop agreements that differ from the pro forma service agreements in Maritimes' tariff.

Maritimes states that as markets in Maine, Massachusetts, and Canada are changing, there have been changes in the contracts between Maritimes and its shippers. Maritimes has included in its amendment its new agreements, totaling 360,575 Dth/d, including backstop arrangements for 20 years equal to 360,000 Dth/d of firm capacity. Maritimes says that it is fully contracted under these executed service and backstop agreements. Maritimes notes that there are some provisions in the service and backstop agreements reached with the shippers that deviate from its tariff and asks that the Commission, to the extent required, grant authorization for such deviations.

Maritimes says that market changes have led to a proposed phasing of the construction of Maritimess' laterals. Thus, Maritimes proposes to defer construction of one of the originally proposed Phase II laterals--the Bucksport lateral--with the in-service date to be within two years of the date of the order approving the amendment, subject to the receipt of firm service agreements. Also, Maritimes proposes to defer other laterals proposed in the original Phase II application, subject to obtaining additional market commitments.

Maritimes proposes to eliminate one compressor unit at Baileyville, Maine; to install one of the compressor units at Richmond, Maine on a back up basis; and to uprate the three compressor units to be installed to 8,311 HP to reflect current manufacturer ratings. Maritimes proposes to construct other minor delivery facilities. In particular, Maritimes proposes the construction and operation of the Haverhill Spur and the Essex Gas Company meter station located near Haverhill. The Haverhill Spur will be about 250 feet of 10-inch diameter pipeline located in an area currently dedicated to natural gas facility use. Also, Maritimes proposes to install and operate a new meter to be wholly located within the already approved Dracut, Massachusetts meter station site as a new delivery point for Boston Gas Company.

Maritimes proposes to revise its initial rates to reflect the increased cost of its mainline facilities and revised billing determinants. Maritimes says that these increased costs are due to the receipt of construction contract bids, which reflect cost increases related to schedule extensions, environmental agency requirements, cathodic protection, material transportation, and wage increases; costs associated with reroutes and route refinements; and additional mainline pipeline mileage of 3.3 miles. The revised billing determinants reflect the firm contractual commitments of 360,575 Dth/d.

The initial rates for mainline service under Rate Schedule NM365 are proposed to be $0.715 per Dth (on a 100% load factor basis). This is based on a total gas plant of $619.5 million and an annual cost allocation to Rate Schedule MN365 of about $94.1 million and a modified/levelized depreciation method for the first four years of operation. Also, $10.3 million has been allocated to interruptible mainline service under Rate Schedule MNIT. Rates for other mainline services are derivative of the Rate Schedule MN365 rate.

Maritimes also proposes incremental rates for three laterals (Newington, New Hampshire, Westbrook, Maine, and Haverhill) under Rate Schedule MNLFT, the approval of which is pending in Docket No. CP98- 797-000.\1\ A total gas plant of $6.9 million is proposed to be allocated incrementally among the above three laterals as more fully set forth in Exhibit P of Maritimes' application.

\1\ In Docket No. CP98-797-000, Maritimes is proposing another lateral near Veazie, Maine with a cost of $5.6 million that is also proposed to be incrementally priced under Rate Schedule MNLFT.

Maritimes also proposes certain amendments to its tariff. It proposes to revise its creditworthiness provisions to reflect provisions typical of other project-financed pipelines. Also, in order to promote seamless service, Maritimes proposes an agency arrangement reflected in its tariff.

Any person desiring to be heard or making any protest with reference to said amendment should on or before February 12, 1999, file with the Federal Energy Regulatory Commission, 888 First Street, NE, 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 protests provide copies of their protests to the party or person to whom the protests are directed. 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 issued by the Commission, filedby the applicant, or filedby 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 serve copies of comments or any other filing it makes with the Commission to every other intervenor in the proceeding, as well as filing an original and 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 such comments to the Secretary of the Commission. Commenters will not 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 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 the jurisdiction conferred upon the Federal Energy Regulatory 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 these applications 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

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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 Maritimes to appear or be represented at the hearing. Linwood A. Watson, Jr., Acting Secretary

[FR Doc. 99-2365Filed2-1-99; 8:45 am]

BILLING CODE 6717-01-M