legal department - southern star central gas pipeline, inc

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Southern Star Central Gas Pipeline, Inc. 4700 Highway 56 P.O. Box 20010 Owensboro, Kentucky 42304-0010 Phone 270/852-5000 David N. Roberts Sr. Staff Analyst, Regulatory Affairs Phone: (270)852-4654 Fax: (270)852-5010 Email: [email protected] April 16, 2013 Ms. Kimberly D. Bose, Secretary Federal Energy Regulatory Commission 888 First Street, N.E., Room 1A Washington, D.C. 20426 Re: Southern Star Central Gas Pipeline, Inc. Prior Notice of Blanket Certificate Activity Docket No. CP13-____-000 Abandonment of Compressor Units 1 Through 4 at Tonganoxie Compressor Station (1,760 HP) Dear Secretary Bose: Southern Star Central Gas Pipeline, Inc. (Southern Star), pursuant to the authority of its blanket certificate issued in Docket No. CP82-479-000 and the provisions of Sections 157.205 and 157.216(b) of the Federal Energy Regulatory Commission’s (Commission) regulations herewith submits for eFiling a Prior Notice Application seeking authorization to abandon in place four compressor units each rated at 440 horsepower (Units 1 through 4) at its Tonganoxie Compressor Station located in Leavenworth County, Kansas. The electronic files include the following documents, which have been classified as “Public” or “Critical Energy Infrastructure Information(CEII) as noted below. Public Files This transmittal letter describing the filing and its content. Prior Notice Application Pursuant to Blanket Certificate with Verification Statement and applicable Exhibits: Exhibit A (Public Notice for publication in the Federal Register), Exhibit B (General Location Maps) and Exhibit D (Proposed Accounting Treatment).

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Page 2: LEGAL DEPARTMENT - Southern Star Central Gas Pipeline, Inc
Page 3: LEGAL DEPARTMENT - Southern Star Central Gas Pipeline, Inc
Page 4: LEGAL DEPARTMENT - Southern Star Central Gas Pipeline, Inc
Page 5: LEGAL DEPARTMENT - Southern Star Central Gas Pipeline, Inc
Page 6: LEGAL DEPARTMENT - Southern Star Central Gas Pipeline, Inc

4.

Prior to the 2009-2010 heating season, Southern Star operated the McLouth Field

by flowing gas from the gas wells located in the Jarbalo area of the field by using the

20-inch loop line to route the gas to the McLouth Field dehydration unit, combining the

Jarbalo gas with flows from the gas storage wells from both the North and South

McLouth areas of the field and eventually moving the combined total storage gas toward

Tonganoxie Compressor Station using only the 26-inch loop line.

In 2009, the research identified an option to shut in the Jarbalo area of the

storage field and utilize gas only from the North and South McLouth areas of the field,

which allows use of both the 20-inch and 26-inch loop lines during the majority of the

withdrawal season when demand is at or near peak conditions. Operating the system in

this manner only required the horsepower sourced from Tonganoxie Compressor Units

5, 6, and 7. During off-peak periods, the Jarbalo area of the field is re-opened, using

the 20-inch loop line to flow gas back through the McLouth dehydration unit and then

into the North and South McLouth areas of the field, thus recharging those areas with

storage gas. After the pressures between all areas are equalized, the Jarbalo area is

again shut in and the 20-inch loop line is made available to use for flow from the main

North and South areas of the field as previously described. This change in operations

was tested during the 2009-2010 heating season and proved to maintain the certificated

deliverability of the McLouth Field pursuant to the authority granted in Docket No. CP98-

280 and the current operational plan for the McLouth Field and also meets the system’s

firm contractual demands.5 Southern Star has continued to operate its system in this

manner through the subsequent three heating seasons (2010-11, 2011-12, 2012-13),

5 See Williams Gas Pipeline Central, Inc., 85 FERC ¶61,184 and 84 FERC ¶61,176.

Page 7: LEGAL DEPARTMENT - Southern Star Central Gas Pipeline, Inc

5.

which have varied significantly in the use of the McLouth Field and the working gas

inventory needed to meet the four heating seasons, but have in each case verified the

reliability of firm service in and around the Tonganoxie area, using only Units 5, 6, and

7. Units 1-4 have run minimal hours, if any, since the new mode of operation has been

initiated and because these units have not been required to provide peak firm service to

customers during this timeframe, customer consent is not required for this

abandonment. Applicable System Flow Diagrams depicting the gas flow capabilities

before and after abandonment of the horsepower are enclosed as Exhibit C and have

been filed separately as Critical Energy Infrastructure Information (“CEII”), due to the

sensitive nature of the information shown.

Retiring Units 1-4 in place will consist of isolating each unit from the

Suction/Discharge header, disconnecting the fuel piping, draining the lube oil and

installing blind flanges. The work will also require isolating with blind flanges and

draining the associated cooling water systems, as well as isolating starting air systems

and disconnecting power/control equipment. The majority of the necessary work will be

above ground within the station yard and for the most part within the compressor

building. The Tonganoxie Compressor Station will continue operating as a compressor

station using the 5,750 horsepower generated from Units 5, 6 and 7.

V FURTHER SUPPORT

The proposed abandonment of Compressor Units 1-4 at the Tonganoxie

Compressor Station will neither result in any changes to the recent operation of the

pipeline system that will affect the certificated deliverability of the McLouth Field nor

reduce any current firm service obligations, as shown within the Flow Diagrams

Page 8: LEGAL DEPARTMENT - Southern Star Central Gas Pipeline, Inc

6.

mentioned above. In further support of this application, Southern Star has also attached

a General Location Maps as Exhibit B depicting the Tonganoxie area in relation to

Southern Star’s surrounding pipeline system. Also attached as Exhibit D is the

proposed Accounting Treatment for the abandonment of facilities. Southern Star

submits that benefits of this proposal outweigh any adverse impacts, if any. Pursuant to

Section 157.205(b)(4), Southern Star hereby submits its verified statement that the

proposed abandonment complies with the requirements of Part 157, Subpart F, of the

Commission’s regulations (18 C.F.R. Part 157, Subpart F). Additionally, there are no

other applications related to this proposed abandonment.

VI ENVIRONMENTAL MATTERS

Due to the fact that this application proposes the abandonment of Compressor

Units 1-4 in place and that the Tonganoxie Compressor Station will continue to operate,

Southern Star has excluded the filing of any environmental data as there will be very

minimal ground disturbance (hand shovel) within the station yard, and abandoning the

units will result in an overall reduction of the station’s potential operational air and noise

emissions. Southern Star has not applied for any applicable agency clearances as no

change in the current land use will result from the abandonment sought herein.

Southern Star also submits that this proposed abandonment activity is exempt from

landowner notification requirements pursuant to Section 157.203(d)(3)(iv), as there are

no landowners adversely affected since no change (that is no increase) in operational

air and noise emissions will result from this abandonment. Therefore, Southern Star

submits that the proposed abandonment does not involve a significant adverse impact

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7.

on a sensitive environmental area and will not constitute a major federal action affecting

the quality of the human environment.

VII FORM OF NOTICE

A notice suitable for publication in the Federal Register is attached hereto as

Exhibit A. Copies of this application will be sent to the Kansas Corporation Commission

and the Missouri Public Service Commission.

VIII CONCLUSION

Wherefore, based on the information provided herein, Southern Star submits that

the requested abandonment is required by the public convenience and necessity and

respectfully requests that the Commission grant its authority under its blanket certificate

and pursuant to Sections 157.205 and 157.216(b) of the Commission’s regulations

authorizing the abandonment of Units 1 through 4 and the related horsepower at its

Tonganoxie Compressor Station, as described herein.

Respectfully submitted, Southern Star Central Gas Pipeline, Inc.

/s/ David N. Roberts Staff Analyst, Regulatory Compliance

Page 10: LEGAL DEPARTMENT - Southern Star Central Gas Pipeline, Inc
Page 11: LEGAL DEPARTMENT - Southern Star Central Gas Pipeline, Inc

Exhibit A

Public Notice

Page 12: LEGAL DEPARTMENT - Southern Star Central Gas Pipeline, Inc

UNITED STATES OF AMERICA

FEDERAL ENERGY REGULATORY COMMISSION

Southern Star Central Gas Pipeline, Inc. Docket No. CP13-____-000

NOTICE OF REQUEST UNDER BLANKET AUTHORIZATION

Take notice that on ________, 2013, Southern Star Central Gas Pipeline, Inc. (Southern Star), 4700 Highway 56, Owensboro, Kentucky 42301, filed in Docket No. CP13-_____-000 a prior notice request pursuant to its blanket certificate issued in Docket No. CP82-479-000 as well as Sections 157.205 and 157.216(b) of the Federal Energy Regulatory Commission’s (Commission) regulations under the Natural Gas Act for authorization to abandon a portion of compression within its existing Tonganoxie Compressor Station located in Leavenworth County, Kansas, all as more fully set forth in the application.

Specifically, Southern Star proposes to abandon in place four compressor units each rated at 440 horsepower (Units 1 through 4) at its Tonganoxie Compressor Station located in Leavenworth County, Kansas. These units were installed in 1949 and used in routing natural gas from Southern Star’s Ottawa Compressor Station and McLouth Gas Storage Field to system deliveries in the St. Joe, Atchison and Fall City areas in addition to the Tonganoxie-Fairfax area. Due to a study initiated by Southern Star’s operations and gas modeling personnel, the utilization of these units has been deemed unnecessary in serving peak firm service over the last several years. The abandonment will save on maintenance cost and avoid the need for future capital cost. Retiring Units 1 through 4 will be confined within the station yard with minimal ground disturbance and result in an overall reduction of the station’s potential operational air and noise emissions. Southern Star submits that the proposed abandonment does not involve a significant adverse impact on sensitive environmental areas and will not constitute a major federal action affecting the quality of the human environment.

This filing is accessible on-line at http://www.ferc.gov, using the “eLibrary” link and is also available for review in the Commission’s Public Reference Room in Washington, D.C. There is an “eSubscription” link on the web site that enables subscribers to receive email notification when a document is added to a subscribed docket(s). For assistance with any FERC Online service, please email [email protected], or call (866) 208-3676 (toll free). For TTY, call (202) 502-8659. Any questions concerning the prior notice request should be directed to David N. Roberts, Staff Analyst, Regulatory Compliance, Southern Star Central Gas Pipeline, Inc., 4700 Highway 56, Owensboro, KY 42301, or call (270) 852-4654.

Any person or the Commission’s Staff may, within 60 days after issuance of the instant notice by the Commission, file pursuant to Rule 214 of the Commission’s Procedural Rules (18 C.F.R. 385.214) a motion to intervene or notice of intervention, and pursuant to Section 157.205 of the Commission’s Regulations under the Natural Gas Act (NGA) (18 C.F.R. 157.205) a protest to the request. If no protest is filed within the time allowed, the proposed activity shall be deemed to be authorized effective the day after the time allowed for protest. If a protest is filed and not withdrawn within 30 days after the time allowed for filing a protest, the instant request shall be treated as an application for authorization pursuant to Section 7 of the NGA.

The Commission encourages electronic submission of protests and interventions in lieu of paper

using the “eFiling” link at http://www.ferc.gov. Persons unable to file electronically should submit an original and 14 copies of the protest or intervention to the Federal Energy Regulatory Commission, 888 First Street, N.E., Washington, D.C. 20426.

Kimberly D. Bose, Secretary

Page 13: LEGAL DEPARTMENT - Southern Star Central Gas Pipeline, Inc

Exhibit B

General Location Maps

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Page 15: LEGAL DEPARTMENT - Southern Star Central Gas Pipeline, Inc

¬k

Northwells

Jarbalowells

Dehy

Tonganoxie CS

Southwells

McLouthField

Ottawa

Fairfax (KC)

St. Joe

20"

26" 26"

26"

20" 16"

L E AV E N W O R T H C O .L E AV E N W O R T H C O .J E F F E R S O N C O .J E F F E R S O N C O .

Southern Star Central Gas PipelineHorsepower Abandonment

Tonganoxie Compressor StationUnits 1-4

³

0 1 2 3 40.5

Miles

Page 16: LEGAL DEPARTMENT - Southern Star Central Gas Pipeline, Inc

Exhibit D

Proposed Accounting Treatment

Page 17: LEGAL DEPARTMENT - Southern Star Central Gas Pipeline, Inc

SOUTHERN STAR CENTRAL GAS PIPELINE, INC.

Proposed Accounting Treatment

Abandonment in place of GMV-4 Engines 1,2,3 & 4 at the Tonganoxie Compressor Station.Unit Serial No's: 42146, 42147, 42148, 42149.

To Charge Appropriate Utility Plant Accounts

With Original Cost of Property Retired

10898001 Retirement Work in Progress 134,670$ 101 (36801001) Compressor Station Equipment 134,670$

To Record Removal Cost and Salvage

10898001 Retirement Work in Progress 311,095$

13100001 Salvage Proceeds -$

13100001 Removal Costs 311,095$

To Transfer Balance in Retirement Work in Progress to

Accumulated Provision for Depreciation of Gas Plant in Service

108XXXXX Accumulated Provision for Depreciation of

Gas Plant in Service 445,765$

10898001 Retirement Work in Progress 445,765$