LBU Joint Venture; Notice of Application

[Federal Register Volume 63, Number 226 (Tuesday, November 24, 1998)]
[Notices]
[Pages 64948-64949]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-31301]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. CP99-56-000]


LBU Joint Venture; Notice of Application

November 18, 1998.
    Take notice that on November 6, 1998, LBU Joint Venture (LBU) P.O. 
Box 4423, Oak Ridge, Tennessee 37831, filed

[[Page 64949]]

in Docket No. CP99-56-000 an application pursuant to Section 7 of the 
Natural Gas Act and Section 284.224 of the Commission's Regulation for 
issuance of a blanket certificate of public convenience and necessity 
authorizing LBU as a Hinshaw natural gas company to provide natural gas 
storage service in interstate commerce and approval of market based 
rates, all as more fully set forth in the application on file with the 
Commission and open to public inspection.
    LBU states that it is a joint venture comprised of Cambridge 
Resources, Inc. and P.D.C. Resources, Inc. and it provides storage 
services in Tennessee and is regulated by the Tennessee Regulatory 
Authority (TRA), with its rates and services subject to the 
jurisdiction of the TRA. LBU asserts that in 1994, it began development 
of the underground gas storage facility located in the Lick Branch 
Field, Scott County, Tennessee. LBU claims that the only pipeline 
connection that was then, and is now, available to the Lick Branch 
storage facility is an interconnection with the eight-inch diameter 
pipeline of Citizens Gas Utility District (Citizens), a municipality 
serving customers in North-Central Tennessee.
    LBU also states that it commenced operations in December 1994, 
providing gas storage service to Tenneco Gas Marketing Company 
(Tenneco) under an August 31, 1994 agreement (Agreement) which provided 
that Tenneco had rights to all of the capacity of the storage facility. 
LBU indicates that Tenneco's interest in the Agreement was subsequently 
purchased by El Paso Energy Marketing (El Paso Marketing) and 
thereafter El Paso Marketing transferred its interest to Duke Energy 
and Trading Company (Duke Trading). LBU claims that Duke Trading 
currently provides capacity from the storage facility to three 
customers, each of which is located in Tennessee.
    LBU explains that while it currently operates as a Hinshaw 
pipeline, certain issues which implicate Commission jurisdiction may 
arise in the future as a result of the open nature of the nation's gas 
industry and integration of intrastate and interstate markets. LBU 
states that it seeks, by this application, to be able to provide 
interstate storage service while retaining its status as a Hinshaw 
pipeline pursuant to Section 284.224.
    Additionally, LBU requests, pursuant to Sections 284.122 and 
284.123 of the Commission's regulations, approval of market-based 
rates. LBU asserts that its application includes a Market Power 
Analysis which demonstrates that market-based rates for LBU's Part 284 
service are fair and equitable.
    Any person desiring to be heard or to make any protest with 
reference to said application should on or before December 8, 1998, 
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 filed with the Commission 
will be considered by it in determining the appropriate action to 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 
Regulation 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 a grant of the certificate, and 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 LBU to appear or be represented at the 
hearing.
Linwood A. Watson, Jr.,
Acting Secretary.
[FR Doc. 98-31301 Filed 11-23-98; 8:45 am]
BILLING CODE 6717-01-M