BILLING CODE 6717-01-M
UNITED STATES OF AMERICA
FEDERAL ENERGY REGULATORY COMMISSION
Georgia Straits Crossing Pipeline LP.
Docket No. CP01-176-000
Docket No. CP01-177-000
Docket No. CP01-178-000
Docket No. CP01-179-000
NOTICE OF APPLICATIONS
(May 4, 2001)
Take notice that on April 24, 2001, Georgia Straits Crossing Pipeline LP (GSX), P.O. 58900, Salt
Lake City, Utah, 84158-0900, filed in Docket No. CP01-176-000 an application pursuant to Section
7(c) of the Natural Gas Act for authorization to construct and operate a new interstate natural gas
transmission system consisting of approximately 47 miles of related pipeline and related facilities in the
state of Washington; in Docket No. CP01-177-000 an application for a blanket certificate authorizing
Part 284 transportation; in Docket No. CP01-178-000 an application for a blanket certificate
authorizing certain routine activities under Subpart F of Part 157; and in Docket No. CP01-179-000
an application for Section 3 siting authorization for export/import facilities and a Presidential Permit
authorizing the construction, operation and maintenance of interconnect facilities for imports and exports
at two locations on the US/Canadian international border, all as more fully set forth in the application on
file with the Commission and open to public inspection. This filing may be viewed on the web at
http://www.ferc.fed.us/online/rims.htm
(call 202-208-2222 for assistance).
GSX proposes to construct: 1) a 10,302 horsepower (ISO rated) compressor station at Cherry Point,
Whatcom County, Washington, located adjacent to an existing industrial area approximately a mile from
the Strait of Georgia shoreline; 2) approximately 32 miles of 20-inch pipeline generally paralleling
existing pipeline corridors from Sumas to the proposed Cherry Point compressor station; 3)
approximately 15 miles of 16-inch pipeline from the Cherry Point compressor station to an offshore
interconnect with a Canadian pipeline proposed to be built by GSX Canada Limited Partnership (GSX
Canada) from that interconnect to a delivery point into the distribution system of Centra Gas British
Columbia Inc. on Vancouver Island; 4) receipt point meter station facilities interconnecting with
Westcoast Energy Inc. at the Canadian border and with Northwest
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Docket Nos. CP0l-176-000,
et al.
Pipeline Corporation, both near Sumas; and 5) appurtenant facilities. GSX estimates the
total cost of the proposed facilities at approximately $90.7-million.
GSX states that the initial firm design capacity of its system will be approximately
94,000 Dth per day. It is indicated that as a result of an open season, Powerex
Corporation (Powerex), an affilliate of British Columbia Hydro and Power Authority (BC
hydro), executed a binding precedent agreement for all of the initial certificated design
capacity for a 30-year term, at negotiated rates. GSX avers that Powerex requires the
capacity to meet the obligations of BC Hydro to supply natural gas fiiel to two new
generating plants on Vancouver Island. Further, GSX states that its system is designed to
facilitate relatively inexpensive expansions, by compression upgrades, to accommodate
future market growth on Vancouver Island and in northwestern Washington state.
GSX states that its proposal and that of GSX-Canada comprise the international
Georgia Strait Crossing Project. GSX indicates that pursuant to the GSC Project
Agreement between GSX and its sponsor, Williams Gas Pipeline Company (Williams),
I and GSX-Canada and its sponsor, British Columbia Hydro and Power Authority (BC
Hydro), the owners have agreed to coordinate certain decisions regarding the construction
and operation of GSX and GSX-Canada through a GSX Committee. GSX also states
that subject to the owners and through the GSX Committee on matters within the
committee's purview, GSX Operating Company, L.L.C., an wholly owned subsidiary of
Williams, will design and engineer, manage the procurement and construction, operate
and maintain and manage the day-to-day business affairs of both GSX and GSX-Canada
pipeline, as a contractor for the owners.
GSX proposes a pro forma Tariff which includes its proposed Rate Schedules FT
I for firm service and IT- I for interruptible service. GSX proposes traditional cost-of
service based rates for its initial recourse rates. GSX states that its proposed rates reflect
a 70% debt, 30% equity capital structure, 8% interest on debt 14% return on equity and a
30 year depreciation life. GSX avers that its proposed rates are designed under the
straight fixed variable methodology using a quantity/distance cost allocation to establish
rates for two zones, one for mainland U.S. deliveries and one for deliveries to GSX
Canada. GSX also states that the proposed initial recourse maximum daily reservation
rates are $0.36546 per Dth of contract demand for service to mainland U.S. points and
$0.51233 per Dth of contract demand for service to the GSX-Canada interconnect.
GSX requests that the Commission issue a preliminary determination on the non
environmental aspects of the applicaition by January 31, 2002 and a final order granting
the requested certificate authorization by May 31, 2002 so that the project may be
completed by the late October 2003 in-service date required to ensure Powerex's ability to
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Docket Nos. CP01-176-000,
et al.
meet the long-term gas supply commitments of BC Hydro to the new electricity
generation facilities on Vancouver Island..
Any questions regarding the application should be directed to Gary K. Kotter,
Manger, Certificates, GSX Pipeline, L.L.C., P.O. Box 58900, Salt Lake City, Utah
84158-0900, (801) 584-7117.
There are two ways to become involved in the Commission's review of this
project. First, any person wishing to obtain legal status by becoming a party to the
proceedings for this project should, on or before May 25, 2001, file with the Federal
Energy Regulatory Commission, 888 First Street, NE, Washington, D.C. 20426, a motion
to intervene 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 NGA (18
CFR157.10). A person obtaining party status will be placed onthe service list
maintained by the Secretary of the Commission and will receive copies of all documents
filed by the applicant and by all other parties. A party must submit 14 copies of filings
made with the Commission and must mail a copy to the applicant and to every other party
in the proceeding.
Only parties to the proceeding can ask for court review of Commission orders in
the proceeding.
However, a person does not have to intervene in order to have comments
considered. The second way to participate is by filing with the Secretary of the
Commission, as soon as possible, an original and two copies of comments in support of
or in opposition to this project. The Commission will consider these comments in
determining the appropriate action to be taken, but the filing of a comment alone will not
serve to make the filer a party to the proceeding. The Commission's rules require that
persons filing comments in opposition to the project provide copies of their protests only
to the party or parties directly involved in the protest.
Persons who wish to comment only on the environmental review of this project
should submit an original and two copies of their comments to the Secretary of the
Commission. Enviromnental commenters will be placed on the Commission's
environmental mailing list, will receive copies of the environmental documents, and will
be notified of meetings associated with the Commission's environmental review process.
Environmental commenters will not be required to serve copies of filed documents on all
other parties. However, the non-party commenters will not receive copies of all
documents filed by other parties or issued by the Commission (except for the mailing of
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Docket Nos. CP01-176-000,
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environmental documents issued by the Commission) and will not have the right to seek court review
of the Commission's final order.
The Commission may issue a preliminary determination on non-environmental issues prior to the
completion of its review of the environmental aspects of the project. The preliminary determination
typically considers such issues as the need for the project and its economic effect on existing
customers of the applicant, on other pipelines in the area, and on landowners and communities. For
example, the Commission considers the extent to which the applicant may need to exercise eminent
domain to obtain rights-of-way for the proposed project and balances that against the non
environmental benefits to be provided by the project. Therefore, if a person has comments on
community and landowner impacts form this proposal, it is important either to file comments or to
intervene as early in the process as possible.
Also, comments protests, and interventions may be filed electronically via the internet in lieu of paper.
See, 18 CFR 385.2001(a)(1)(iii) and the instructions on the Commission's web site at
http://www.ferc.fed.us/efi/doorbell.htm.
If the Commission decides to set the application for a formal hearing before an Administrative Law
Judge, the Commission will issue another notice describing that process. At the end of the
Commission's review process, a final Commission order approving or denying a certificate will be
issued.
David P. Boergers
Secretary