Southern LNG Inc.; Notice of Applications for Section 7 Certificates and A Section 3 Authorization

[Federal Register Volume 64, Number 143 (Tuesday, July 27, 1999)]
[Notices]
[Pages 40590-40591]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-19075]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. CP99-579-000, Docket No. CP99-580-000, Docket No. CP99-581-
000, Docket No. CP99-58279-000]


Southern LNG Inc.; Notice of Applications for Section 7 
Certificates and A Section 3 Authorization

July 21, 1999.
    Take notice that on July 13, 1999, Southern LNG Inc. (Southern 
LNG), AmSouth-Sonat Tower, 1900 Fifth Avenue, North, Birmingham, 
Alabama 35203, filed applications for authority to re-commission its 
marine import terminal on Elba Island, Georgia (Elba Island Terminal). 
These proposals are fully set forth in the applications, which are on 
file with the Commission and open to public inspection in Washington, 
DC. These applications may be viewed on the Commission's website at 
ferc.fed.us/online/rims.htm (call 202-208-2222 for assistance). 
Southern LNG has also made a complete copy of the application available 
to the Chatham-Effingham-Liberty Regional Library at the Savannah/
Oglethorpe Mall branch (reference section, 912-925-5432). Further, the 
name, address, and telephone number of an authorized Southern LNG 
company contact person are: Patrick B. Pope, Associate General Counsel, 
Southern Natural Gas Company, PO Box 2563, Birmingham, Alabama 35202, 
(205) 325-7126.
    Specifically, Southern LNG seeks several authorizations pursuant to 
Sections 7(c) and 3(a) of the Natural Gas Act. In Docket No. CP99-580-
000, Southern LNG seeks a certificate of public convenience and 
necessity to construct certain new facilities at the Elba Island 
Terminal and to operate (re-commission) the entire Elba Island 
Terminal. In Docket No. CP99-581-000, Southern LNG requests a blanket 
certificate pursuant to Subpart F of Part 157 of the Commission's 
Regulations under which Southern LNG will perform routine activities 
and operations. In Docket No. CP99-582-000, Southern LNG seeks a 
blanket certificate pursuant to Subpart G of Part 284 of the 
Commission's Regulations under which Southern LNG will provide open-
access terminal service to its customers. Finally, in Docket No. CP99-
579-000, Southern LNG requests Section 3 authorization under Subpart B 
of Part 153 of the Commission's regulations for siting of natural gas 
import facilities. Southern LNG also requests any waivers that may be 
necessary to implement the proposal, and it makes a request for 
approval of; (i) certain specific accounting treatment of the original 
costs of the Elba Island Terminal; (ii) a revised depreciation rate for 
original and new facilities' costs; and, (iii) the definition of the 
new ``in-service date''.
    Southern LNG proposes to re-commission the Elba Island Terminal to 
provide open-access service to shippers importing LNG. Southern LNG 
proposes to repair, improve and upgrade various control, LNG flow and 
safety systems, and renew dredging in LNG tanker docking and turn-
around areas. Southern LNG states that it held an open-season in June 
1999, and that it has executed a binding precedent agreement for a 
primary term of 22 years with the successful bidder, Sonat Energy 
Services Company (Sonat Energy Services) for 100% of the capacity of 
the Elba Island Terminal. Sonat Energy Services will be able to store 
up to 4 Bcf of natural gas in LNG form, and receive up to 330 MMcf per 
day of natural gas in vaporized form. Sonat Energy Services expects its 
source of imported LNG to be from Trinidad and Tobago, and Sonat Energy 
Services will sell such vaporized LNG to its customers.
    Southern LNG estimates the total capital cost of re-commissioning 
the Elba Island Terminal will be about $26 million, and the annual 
cost-of-service will be about $23 million. Specific initial rates and 
charges based on these

[[Page 40591]]

costs have been derived by Southern LNG, as shown in Exhibit P of its 
application. However, Southern LNG has also agreed to a limited 7- to 
10-year rate moratorium with its customer, Sonat Energy Services, which 
Southern LNG says increases the risk that it will face cost-of-service 
increases with only limited rights to recover those costs. Southern 
LNG's proposes to place the Elba Island Terminal in service on the date 
of first commercial delivery of LNG, estimated to begin in the third 
quarter of 2002. Southern LNG requests that the Commission issue a 
preliminary determination on non-environmental issues no later than 
December 31, 1999, and final authorizations before March 31, 2000.
    Any person desiring to be heard or to make any protest with 
reference to said applications should, on or before August 13, 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 and 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 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 
filed by 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. 
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, 
whether filed by commenters or those requesting intervenor status. Take 
further notice that, pursuant to the authority contained in and subject 
to the jurisdiction conferred upon the Commission by Sections 3, 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 these applications 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 certificates 
and authorizations is required by the public convenience and necessity 
and the public interest. If a motion for leave to intervene is timely 
filed, or if the Commission on its own motion believes that 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 Southern LNG to appear or to be represented at 
the hearing.
David P. Boergers,
Secretary.
[FR Doc. 99-19075 Filed 7-26-99; 8:45 am]
BILLING CODE 6717-01-M