Questar Southern Trails Pipeline Company; Notice of Application

[Federal Register Volume 64, Number 54 (Monday, March 22, 1999)]
[Notices]
[Pages 13791-13792]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-6839]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket Nos. CP99-163-000, CP99-165-000 and CP99-166-000]


Questar Southern Trails Pipeline Company; Notice of Application

March 16, 1999.
    Take notice that on January 19, 1999, as amended on March 5, 1999, 
Questar Southern Trails Pipeline Company (Southern Trails), 180 East 
100 South, Salt Lake City, Utah 84111, filed in Docket No. CP99-163-
000, an application pursuant to 18 CFR Part 157, Subpart E-Optional 
Certificate and Abandonment Procedures for New Service Under Section 
7(c) of the Natural Gas Act requesting certificate authority to (1) 
acquire 693 miles of 12-inch, 16-inch, and 22-inch diameter crude-oil 
pipeline and related facilities, located in New Mexico, Utah, Arizona 
and California, from Questar Line 90 Company (Line 90 Company), a 
Questar Pipeline Company (Questar) subsidiary, (2) convert and operate 
the acquired facilities to provide natural-gas transportation service 
and (3) construct and operate (a) seven compressor stations and (b) 
eight miles of pipeline replacements, 10 miles of pipeline realignments 
and 58 miles of pipeline extensions to provide new, open-access 
transportation of natural gas through the acquired facilities, 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 
/www.ferc.fed.us/online/rims.htm (call 202-208-2222 for 
assistance).
    Southern Trails also requests a preliminary determination on non-
environmental issues in Docket No. CP99-163-000. Further, in Docket No. 
CP99-165-000, Southern Trails seeks a blanket certificate pursuant to 
Subpart G of Part 284 of the Commission's Regulations in order to 
provide open access transportation of natural gas for others. Finally, 
in Docket No. CP99-166-000, Southern Trails requests a blanket 
certificate pursuant to Subpart F of Part 157 of the Commission's 
Regulations in order to perform certain routine activities and 
operations.
    In accordance with the Optional Certificate regulations, Southern 
Trails states that (a) it is an ``eligible applicant'', as defined in 
18 CFR Section 157.101(b)(1); (b) it proposes to provide ``new 
service'', as defined in 18 CFR Section 157.101(2); and (c) all 
facilities proposed to be acquired and constructed will be used solely 
to provide new service pursuant to 18 CFR Section 157.101(3). 
Additionally, Southern Trails agrees to comply with all the terms and 
conditions specified in 18 CFR Section 157.103 and represents that all 
required exhibits, including an environmental report (Exhibit Z-2-
Environmental Data), comprising 12 Resource Reports addressing the 
issues appearing in 18 CFR Part 380, as well as a complete Pro Forma 
Tariff (Exhibit P, Tariff) are included in the application. 
Furthermore, Southern Trails explains that, it has requested issuance 
of a blanket transportation certificate under 18 CFR Section 284.221. 
Further, Southern Trails states that is has served a copy of its 
application on local distribution companies in whose service territory 
Southern Trails will be located and the local distribution companies' 
appropriate state regulatory agencies.
    Southern Trails states that on October 23, 1998, Line 90 Company 
and ARCO Pipe Line Company (ARCO) signed an asset-purchase agreement 
transferring ownership of certain crude-oil facilities, namely ARCO's 
Lines 90, 91, and 92 and associated equipment. The acquired facilities, 
it is stated, extend from the Four Corners region of Utah and New 
Mexico to Long Beach, California. It is explained that Line 90 (592 
miles of 16-inch diameter pipeline), Line 91 (18 miles of 16-inch 
diameter pipeline), Line 91 (80 miles of 12-inch and three miles of 22-
inch diameter pipeline), 12 pump-station sites, on oil metering 
delivery site, two area offices, vehicles and related facilities and 
properties were sold to Line 90 Company for $38,000,000.
    Southern Trails explains that not all of the crude-oil facilities 
acquired from ARCO are useful to transport natural gas. Southern Trails 
explains that Line 90 Company intends to salvage or otherwise dispose 
of certain oil-related facilities, not useful for natural-gas service, 
to outside parties. (These facilities may include oil storage tanks, 
spare parts and other facilities or equipment that are not integrated 
with the main lines to be converted to natural gas service.) Southern 
Trails states that any net proceeds from this activity will reduce the 
acquisition cost to Southern Trails and the rates for prospective 
customers.
    In the instant application, Southern Trails states that it seeks 
approval to acquire certain portions of the above-described crude-oil 
pipeline facilities from Line 90 Company and convert and operate those 
pipeline facilities to provide natural gas service. Southern Trails 
further states that it also seeks authorization to install (a) 
approximately eight miles of 16-inch diameter pipeline replacements, 
(b) approximately 10 miles of 16-inch diameter pipeline realignments, 
(c) approximately 58 miles of 22-inch and 20-inch diameter pipeline 
extensions, (d) seven new compressor stations totaling 18,356 brake 
horsepower of reciprocating compression, with all but one station being 
installed at existing pump-station sites, (e) one potential gas-plant 
receipt point to receive natural gas from El Paso Field Services' Chaco 
Plant in San Juan County, New Mexico, (f) six potential interstate 
pipeline interconnects, two each with El Paso Natural Gas at Blanco, 
New Mexico, and Topock, Arizona, and Transwestern Pipeline Company at 
Blanco and north of Needles, California, and one each with 
TransColorado Gas Transmission Company at Blanco and Mojave Pipeline 
Company at Topock, Arizona (g) three potential local distribution 
company interconnects, one each with Southwest Gas near Southern 
Trails' proposed Mojave Valley Compressor Station and Pacific Gas & 
Electric Company and Southern California Gas Company at Topock, (h) 
five anticipated end-use delivery points, one to ARCO's Long Beach, 
California, Refinery Complex and four to the Navajo Tribal Utility 
Authority and (i) approximately 50 block valves and related ancilliary 
facilities. It is stated that the total estimated cost of the project 
is approximately $155,000,000.
    Southern Trails explains that as a result of its acquiring 693 
miles of existing crude-oil pipeline and related equipment, it will be 
able to operate a 751-mile pipeline with pipeline replacement, 
realignment and extension activities that only involve

[[Page 13792]]

approximately 75.4 miles of new pipeline construction or about 10% of 
the pipeline's overall 751-mile length. Moreover, it is stated, six of 
the seven new compressor stations will be installed at existing pump-
station sites. Nevertheless, Southern Trails states that it has 
embarked on the process of retaining a third-party contractor to 
prepare an Environmental Impact Statement/Environmental Impact Report 
for the project to meet both National Environmental Policy Act and 
California Environmental Quality Act requirements, with the FERC acting 
as lead agency for environmental review.
    Southern Trails states that, between September 8 and October 8, 
1998, it held an open season to determine the demand for Southern 
Trails' capacity. It explains that, during this open season, 15 
companies submitted 22 bids totaling 810,000 Dth per day of demand. 
After review of the bids, Southern Trails explains that it is 
finalizing service agreements with certain parties for all or most of 
the capacity of the pipeline system.
    Southern Trails seeks authority to provide open-access 
transportation service in accordance with tariff sheets that are 
submitted with its application. Southern Trails states that the 
proposed tariff includes (1) Rate Schedules FT (firm transportation 
service) and IT (interruptible transportation service) for both the 
East (Blanco/Chaco to Topock) and West (Topock to Long Beach) Zones; 
(2) General Terms and Conditions that delineate the specific operating 
procedures to be followed by Southern Trails and its customers: (3) 
maximum and minimum zone rates based on the Commission's straight 
fixed-variable rate design and a provision for negotiated rates 
consistent with the Commission's recourse-rate policy; and (4) forms of 
service agreements applicable to service provided under these rate 
schedules. Southern Trails specifies that the maximum $11.46084 
reservation rates, $0.00967 usage rates and $0.38647 interruptible 
rates are proposed to apply to transportation service provided by 
Southern Trails in the East and West Zones.
    Any person desiring to participate in the hearing process or to 
make any protest with reference to said application should on or before 
April 6, 1999, 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 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 in any 
proceeding 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 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 granting the 
certificates 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 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 Trails to appear or to be 
represented at the hearing.
David P. Boergers,
Secretary.
[FR Doc. 99-6839 Filed 3-19-99; 8:45 am]
BILLING CODE 6717-01-M