Document 8RepYXgev6oww2xj4Bba0OZKa

22546 ..Federal Register / Vol. 51. No. 119 / Friday, June 20, 1986 / Notices approximately $17,400 to construct the On September 15,1984 and March 18. three wells to Consolidated for ultimate facilities. ANR commenced 1985, ADM entered into transportation delivery by Panhandle Eastern Pipe Line transportation on November 26.1985. agreements with Panhandle Eastern Company and Central Illinois Light The oral transportation agreement Pipe Line Company for its transportation Company to high priority and other end- with ANR Pipeline Company, the expenditures by Trinity in reliance thereon prior to October 9,1985, and the execution of the written contract on Octobers, 1985. qualifies Trinity for waiver. Creole Cas Pipeline Corporation On July 29.1985, Creole agreed to sell gas to Central Louisiana Electric Company (CLECO). Creole and Tennessee Gas Pipeline Company agreed to amend an existing NGPA section 311 transportation agreement to add a delivery point with Louisiana Intrastate Gas Corporation (LIG) near Pleasant Hill. Louisiana, in order to deliver the gas to CLECO. The amendment was not executed until after October 9,1985. On September 27.1985. Creoie entered into a written agreement with LIG whereby LIG agreed to transport gas from the Pleasant Hill delivery point to CLECO. Creole commenced the construction of a pipeline to connect LIG's system to CLECO's facilities on August 25,1985. Construction was completed on October 9 at a cost of $408,000. Further, Creole is obligated to reimburse Tennessee and LIC $65,000 for.the construction of the Pleasant Hilt delivery point. The revised standard is met because of gas under 157.209(a)(1)(A) to ADM's designated facilities. Both transportation agreements were scheduled to terminate on March 15.1988. On June 24,1985, ADM entered into a gas purchase agreement with Quivira Gas Company for the purchase of up to 15.000 MMBIu per day of gas designated for use at four of ADM's facilities, including those in Peoria and Mexico. The Gas purchase contact stated that the gas would be routed through Natural Cas Pipeline Company's system and then into Panhandle's system for ultimate delivery to ADM. The gas purchase agreement is on a month-tomonth basis and is still in effect. On August 24,1985, ADM entered into a similar gas purchase agreement with Petro Source Energy for the purchase of 10.000 MMBtu per day of gas for use at the Peoria and Mexico facilities, with transportation to be arranged through Panhandle's system. This agreement also is on a month-to-month basis and remains in effect. Prior to October 9,1985, ADM expended approximately $2,725,000 on its Peoria facility and $75,000 on its Mexico facility in reliance on its gas purchase agreements with Quivira and Petro Source Energy, and the continuance of its corresponding transportation agreements with Panhandle; On September 16.1985. users. Separate transportation agreements for high priority end-use were entered into before October 9. 1985. and have been provided to the Commission. These agreements were with Memorial Medical Center, the Board of Education of the City of Peoria, and the Sisters of the Third Order of St. Francis. Panhandle verbally assured Hamilton that receipt points would be added to certain earlier transportation agreements to facilitate sale of the gas to Consolidated. However, Panhandle did not amend the transportation agreements to add the necessary receipt points until October 11,1985. Prior to October 9,1985, and in reliance on its contract with Consolidated, Hamilton expended and committed approximately $242,000. mainly for drilling work on one of the wells and a new meter. Hamilton meets the revised standard because it entered into the written sales agreement with Consolidated prior to October 9,1985, and expended significant funds In reliance on that agreement before that date. Accordingly. Hamilton's request for waiver is granted to the extent Consolidated delivers the gas only to these high priority end-users.14 Moody Gas Gathering System substantial construction occurred prior to October 9,1985, in reliance on the sales agreement and Creole's oral amendment to the transportation agreement with Tennessee, and because Creole's wirtten transportation agreement with LIG was executed prior to October 9.1985. The waiver request is granted. Continued traqpportation by Tennessee and LIG is authorized. Archer-Daniels-Midland Company ADM was assured in writing by Panhandle that its transportation agreements would be extended. However, wirtten contracts to extend the term of the agreements for an additional five years were not executed until October 22,1985. ADM states that, absent a waiver, it will be forced to purchase gas at prices so high as to prohibit its production of a competitively priced product, which may result in the shutting down of both Moody, a gatherer, is a joint venture consisting of Reliance Pipeline Company and Ward Petroleum Corporation. On February 15,1985, Reliance entered into a written agreement with Ward under which Reliance agreed to construct and operate a gathering system in order to connect certain of Ward's wells in Dewey County. Oklahoma. On April 4. 1985, Reliance agreed to purchase the production from Ward's wells. The gas " On April 8 and 14,1986. Archer- of its plants and the laying-off of 169 is under written:contract to be delivered Daniels-Midland (ADM), a high priority employes. to ANR Pipeline Company. ANR, in turm-t*, end-user, Tiled two separate requests for ADM entered into the written gas has contracted to redeliver equivalent waiver in order to permit the purchase agreements prior to October 9, volumes to Northern Natural Gas transportation of gas to its processing 1965. and in reliance thereon expended Company for the supply of Peoples facilities in'Peoria, Illinois and Mexico. substantial funds on construction prior Natural Gas Company. Missouri. On May 15.1986, an order was to that date. These facts satisfy the Between March 14 and April 15.1985. issued ;,a denying both requests on the revised standard. We therefore reverse Reliance.purchased Right-of-way for the basis that ADM did not meet the our May 15,1988 order. ADM's requests gathering system. On June 11.1985, it CLARCO standard. In light of our for waiver are granted. commenced constructing the system. modification of that standard, and on consideration of additional information submitted by ADM, we reconsider our earlier decision. Hamilton Brothers Oil Company Hamilton is the producer of three wells located in Oklahoma. On The construction, except for a tap with ANR, was completed on June 28,1985. at an approximate cost of $114,600. 13 Regulation of Natural Cas After Partial Wellhead Decontrol (Archer-Daniels-Midland September 5.1985, it entered into a written gas purchase contract with Consolidated.Fuel.Supply. Inc, whereby 14 See Regulation of Natural Cas Pipeline After Partial- Wellhead Decontrol (Nature) Gas Pipeline Company of America). Docket No. RM85-1-000.35 ' Company). 35 FRRC161.190 (issued May IS. 1V80|. Hamilton agreed to sell the gas from the FERC? 61.2M. Issued June 2.1988. GLEASON-000811