of the new compressor stations. The Federal regulations for the prevention of significant deterioration (PSD) of air quality (40 C.F.R. § 52.21) require that any proposed facility that would emit more than 250 tons of NO, per year be classified as a major emission source and subject to PSD regulations and review,

Trunkline would install two compressor units, totalling 5,000 horsepower, at the Gas City Compressor Station. These compressors would be Cooper-Bessemer GMWH-8, clean burn, 2,500-hp reciprocating units and would have a NO, emission rate of 3.0 grams per hphour, which corresponds to 145 tons per year of NO, for continuous operation. Operation of this compressor station would not be subject to PSD review and would not have a significant impact on air quality.

ANR would install two compressor units, totalling 5,700 hp, at the new Sulphur Springs Compressor Station. Two Dresser-Rand 412 KVSR, 2,850-hp reciprocating compressor units are planned. These units would have a NO, emission rate of 2.5 grams per hp-hour, which corresponds to 138 tons per year of NO, for continuous operation.48 This compressor station would also not be subject to PSD review.

During operation of the Lebanon Extension, the primary impact on the noise environment would result from the operation of the new compressor stations. Our basis for evaluating the significance of compressor noise impact is an La level of 55 dBA-the level which protects the public from outdoor activity interference and annoyance in residential areas.

At Trunkline's Gas City Compressor Station the nearest noise-sensitive area (NSA) is a residence located 900 feet southwest of the proposed compressor building. A study of predicted noise levels for the Gas City Compressor Station site was filed by Trunkline on November 1, 1990. Ambient noise at the nearest NSA was predicted to be an average Lan of 45 dBA, which is a typical sound level for quiet rural areas.49 No other nearby permanent noise sources were identified in the project area except for Panhandle's Zionsville 7-gate valve station and work area that is located southwest of the site.

Trunkline's proposed 2,500-hp compressor units would be installed in a manufactured steel panel compressor building, with 6 inches of acoustical insulation on the ceiling and four inches of acoustical insulation on the walls. The

42 We note that a 5,400 hp compressor station would emit 130 tons per year of NO.

49 Noise levels at the Gas City and Sulphur Springs Compressor Station sites were measured on November 6, 1990. The background noise levels at

inside of the building would also be lined with perforated aluminum R-panels. The CooperBessemer compressors would be fitted with a standard Cooper-Bessemer exhaust silencer that would attenuate exhaust noise to 39 dBA at 900 feet. The inlet silencers used would be Cooper-Bessemer M-21 intake silencers that attenuate inlet noise to 41 dBA at 900 feet. Trunkline would use low fan tip speed aerial coolers to further reduce noise emissions. The building housing the compressors would also not have any windows in order to minimize noise leakage.

dn

Sound level analysis of the proposed compressor units at the Gas City Compressor Station indicate the two Cooper-Bessemer GMWR-8 units would produce an Lan of 53.7 dBA at the nearest NSA. The proposed compressor station would become the dominant noise source in the area and would raise ambient noise levels by about 9 dBA. Since 53.7 dBA is close to the Commission's recommended limit for noise from new facilities (an Lan of 55 dBA), we believe that the actual noise levels produced by this facility should be checked to confirm that the station's noise design has been accomplished. Therefore, Trunkline shall be required to file with the Secretary of the Commission a noise survey of the Gas City Compressor Station no later than 30 days after placing the proposed compressors in service. If the noise attributable to the operation of the compressors at full load exceeds an Lan of 55 dBA at any nearby NSAs, additional noise control measures should be added to meet that level within one year.

At ANR's Sulphur Springs Compressor Station the nearest NSAs are two residences located 980 feet to the northwest and southwest of the proposed compressor building. County Road 300 West abuts the parcel's western boundary. On June 29, 1990, ANR filed a background noise survey for the Sulphur Springs Compressor Station site that measured average ambient noise levels of 62.1 and 64.1 dBA (Leq) at the closest NSAS. ANR indicated that these high noise levels were attributed to vehicular noise from nearby roadways. No other nearby permanent noise sources were identified during the survey. As previously indicated, measured background noise levels at the compressor station site varied from about 35 to 75 dBA depending upon whether traffic was passing in the vicinity.

both sites ranged from about an Leg of 35 dbA (no passing vehicles in the area) to 75 dBA when vehicles were passing the sites. Road traffic dominates noise levels at the sites.

The Dresser-Rand 412 KVSR 2,850-hp compressor units would be installed in a pre-engineered compressor building that would have a transmission loss of about 20 dBA. Each compressor would be fitted with 24-inch-long, Maxim M-51 exhaust silencers, designed to attenuate exhaust noise to 44 dBA at 290 feet. The inlet silencers would be designed to attain the same level of attenuation. ANR has also proposed to operate the aerial coolers at lower fan tip speeds to reduce the noise impact of that equipment.

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ANR's sound level analysis of the Sulphur Springs Compressor Station's operation indicates that it would produce an Lan 51.5 dBA at the nearby NSAs based on an assumed average background noise level of 45 dBA (Leq). Ambient site noise levels were found by our environmental staff to vary from 35 to 75 dBA. Consequently, noise from the operation of the compressor station would dominate the immediate area when no traffic is passing along the nearby roads. This results in noise levels from the compressor station ranging from essentially undetectable to an increase of up to 10.1 dBA (Ldn).

Since the noise level that would be produced by operation of the new compressor station is close to the Commission's 55 dBA noise limit, we will require ANR to file with the Secretary of the Commission a noise survey of the Sulphur Springs Compressor Station no later than 30 days after placing the compressors in service. If the noise attributable to the operation of the compressors at full load exceeds an Lan of 55 dBA at any nearby NSAs, additional noise control measures should be added to meet that level within one year.

Based on the above, the Commission will impose the following environmental conditions on ANR's and Trunkline's certificates to construct and operate the compression facilities described above:

1. ANR and Trunkline shall plant evergreen trees and shrubs on all of the new aboveground facility sites to provide screening of the aboveground piping, equipment, and structures from nearby homes and public roads.

2. ANR shall file with the Secretary of the Commission a noise survey of the Sulphur Springs Compressor Station no later than 30 days after placing the new compressor station in service. If the noise attributable to the operation of the compressors at full load exceeds an Ldn of 55 dBA at any nearby noise-sensitive areas, additional noise control measures shall be added to meet that level within one year.

3. Trunkline shall file with the Secretary of the Commission a noise survey of the Gas

City Compressor Station no later than 30 days after placing the new compressor stations in service. If the noise attributable to the operation of the compressors at full load exceeds an Ldn of 55 dBA at any nearby noise-sensitive areas, additional noise control measures shall be added to meet that level within one year.

4. ANR's Farmersville Meter Station shall be located on the west side of State Route 123, between the Lebanon Extension pipeline and State Route 123, when and if we issue a certificate for the 7.4 mile-long, 20-inch-diameter pipeline lateral that has been proposed by ANR under Docket No. CP89-637-005. (See the U.S. Geological Survey map filed in Docket No. CP89-635-005 for the location of this facility.)

5. ANR shall perform (or have performed) all the remaining cultural resources or archeological studies, including surveys and any mitigation plans for the Farmersville Meter Station, and shall file the results with the Secretary of the Commission and provide the results to the Ohio State Historic Preservation Office (SHPO) for review. Construction of the Farmersville Meter Station shall not begin until the Director of the Office of Pipeline and Producer Regulation (OPPR) has reviewed and approved the cultural resource surveys and mitigation plan, if required, and has considered any comments by the Ohio SHPO and the Advisory Council on Historic Preservation. The Director of OPPR will then give written notification to ANR that construction of the Farmersville Meter Station may proceed when this process has been completed.

The conversion of the Lebanon Extension to a facility operated under section 7(c) is considered to be an administrative decision relying on the use of existing facilities. On November 5-7, 1990, the staff conducted a field inspection of the Lebanon Extension and found that some supplemental environmental compliance documentation was needed to bring the Lebanon Extension right-of-way into full compliance with the requirements of section 157.206(d). ANR and Trunkline provided agreements, dated December 6, 1990, that will implement these measures. Based on these agreements and the supplemental environmental compliance documentation previously filed by ANR and Trunkline, the completed Lebanon Extension facilities are currently in compliance with the requirements of section 157.206(d).

VII. Conclusion

Based upon the above discussion, the Commission finds that the public convenience and necessity requires that we issue certificate

authority to ANR and Trunkline to construct and operate those compression and metering facilities detailed above and to operate those facilities on the Lebanon Extension already constructed under section 311 of the NGPA.

We also find that it is in the public interest for us to issue our preliminary determination that all the other facilities and/or services proposed by ANR, Great Lakes, Texas Gas, CNG, and Transco are in the public convenience and necessity, subject to the final outcome of the environmental assessment of Phase II of the ANR Project. This preliminary order is subject to rehearing. A complete and final decision on the subject facilities and services cannot be made until the environmental review has been completed and its results are available for Commission consideration. We conclude that, but for favorable environmental review, certifi cates could be issued to ANR, Great Lakes, Texas Gas, CNG, and Transco, subject to the conditions specified here. A final order upon completion of the environmental assessment will address all environmental aspects of the application. Certificates will be issued if the Commission, in accordance with section 7(c) of the Natural Gas Act and the NEPA, determines that the proposed new facilities and services continue to be required by the public convenience and necessity.

In addition, we will terminate Indiana Ohio's application and amendment in Docket Nos. CP88-178-000 and CP88-178-001, as they have been superseded by ANR's and Trunkline's joint filing in Docket Nos. CP89-637-002 and CP88-178-002.

At a hearing held on January 16, 1991, the Commission on its own motion received and made a part of the record in this proceeding all evidence, including the applications as amended and exhibits thereto, submitted in support of the authorization sought in this proceeding, and upon consideration of the record, for the reasons stated above,

The Commission orders:

(A) ANR is authorized to construct and operate (1) 5,400 horsepower of compression at its proposed new Sulphur Springs Compressor Station in Henry County, Indiana, and (2) its proposed new Farmersville Meter Station at Montgomery County, Ohio.

(B) Trunkline is authorized to construct and operate its proposed new 5,000 horsepower Gas City Compressor Station in Grant County, Indiana and its proposed meter station in Grant County, Indiana.

(C) ANR and Trunkline are authorized to operate, pursuant to section 7(c) of the Natural Gas Act, those facilities comprising the Lebanon Extension, individually or jointly owned by

the pipelines, which have been constructed pursuant to section 311 of the NGPA as described above and in their respective applications in this proceeding.

(D) All late-filed motions to intervene are granted for good cause shown.

(E) All requests for technical conferences or hearings are denied.

(F) The authorizations granted here are conditioned on the following:

(1) ANR and Trunkline shall construct and place into operation the facilities authorized in this order within one year from the date the order is issued.

(2) The certificates are conditioned on ANR and Trunkline bearing the risk of underutilization of the proposed facilities as described in the text of this order.

(3) ANR shall be required to bear the responsibility for any shortfall in cost recovery if whatever export authority granted by the NEB for Kamine/Besicorp's volumes proves to be of a shorter duration than that necessary for the recovery of the costs of the facilities approved herein. In that event, ANR is explicitly prohibited from shifting any of the costs associated with the facilities and services authorized herein onto any of their other customers.

(4) In order to obtain rolled-in treatment of the facilities in any future section 4 rate proceeding, ANR and Trunkline, in their respective rate cases, must file a study showing a comparison of its proposed rates calculated with the costs and volumes associated with the approved incremental facilities included versus rates calculated with such costs and volumes excluded.

(5) ANR and Trunkline must comply with Part 154 and subsections (a), (c)(3), (c)(4), (e), (f), and (g) of section 157.20 and all other applicable rules and regulations in the Commission's regulations.

(6) ANR and Trunkline shall comply with the environmental conditions contained in this order.

(G) Indiana Ohio's application for an optional certificate of public convenience and necessity filed in Docket Nos. CP88-178-000 and -001 is terminated.

(H) A preliminary determination is made that the issuance of certificates of public convenience and necessity, conditioned as detailed below, to ANR, Great Lakes, Texas Gas, CNG, and Transco to construct and operate the facilities and provide the transportation services proposed in Docket Nos. CP89-637-000, -001, -004, -005, CP90-1726-000, CP89-638-000, -001, -002, CP90-687-000, -001, CP90-688-000, and -001, as more fully described above and in

those applications, would, on the basis of all nonenvironmental issues, be in the public convenience and necessity.

(I) The certificates described in Ordering Paragraph (H) shall be conditioned on the following:

(1) CNG, Texas Gas, and Transco shall construct and place into operation the 1991 (as defined by each proponent's application) facilities authorized within one year from the date the order is issued. The 1992 facilities (as defined by each proponent's application) are to be constructed and placed into service within two years from the date the order is issued.

(2) ANR and Great Lakes shall construct and place into operation the facilities authorized within one year from the date the order is issued.

(3) ANR and Texas Gas shall be required to bear the risk of underutilization of their proposed facilities as described in the text of this order.

(4) ANR, Great Lakes, and CNG shall be required to bear the responsibility for any shortfall in cost recovery if whatever export authority granted by the NEB for Kamine/ Besicorp's volumes proves to be of a shorter duration than that necessary for the recovery of the costs of the facilities approved herein. In that event, CNG is explicitly prohibited from shifting any of the costs associated with the facilities and services authorized herein onto any of their other customers.

(5) In order to obtain rolled-in treatment of the facilities in any future section 4 rate proceeding, ANR, Great Lakes, Texas Gas, CNG, and Transco, in their respective rate cases, must file a study showing a comparison of its proposed rates calculated with the costs and volumes associated with the approved incremental facilities included versus rates calculated with such costs and volumes excluded.

(6) For Great Lakes' section 7(c) transportation service, Great Lakes shall charge its currently effective Part 284 maximum firm transportation rate in Rate Schedule FT, in Great Lakes' FERC Gas Tariff, Original Volume No. 3.

(7) For Texas Gas' section 7(c) transportation service, Texas Gas shall charge Transco the maximum rate set forth in its Rate Schedule FT-4, its Part 284 rate schedule for selfimplementing firm transportation. Further, Texas Gas is limited to the receipt of volumes at the four receipt points and for the related volumes as described in a data response filed by Texas Gas with the Commission on November 26, 1990.

(8) (a) For the transportation service provided by CNG for its proposed 1991 service

(c) For the transportation service provided by CNG for its proposed 1992 service from Leidy to Syracuse Market Area, CNG shall charge the following initial rates, which are exclusive of applicable ACA or GRI charges, as well as TOP surcharges, and these rates should be subject to adjustment to reflect the final outcome of Transco's pending rate proceeding in Docket No. RP88-211: D-1 Charge: D-2 Charge:.

$0.85 per Dth $0.0280 per Dth Commodity Charge: .... $0.0836 per Dth (d) The approved rates are initial rates under section 7 of the Natural Gas Act and our approval does not constitute approval of any underlying rate methodology, principle or concept to be used in any general rate change filed pursuant to section 4 of the Natural Gas Act. These initial rates will remain in effect until such time as CNG files to change its rates in a section 4 proceeding. At that time, any party or the Commission's staff may propose new rates based on different methodologies, principles or concepts.

(9) (a) For the transportation service provided by Transco for 1991 services, Transco shall charge the following initial rates, which are exclusive of ACA, GRI, applicable PSP/ LPSP charges, as well as Texas Gas and CNG charges, and these rates should be subject to adjustment to reflect the final outcome of Transco's pending rate proceeding in Docket No. RP90-8:

(c) Transco shall be permitted to include in its rates the charges for Texas Gas and CNG's related transportation services in Docket No. CP89-688 and CP89-638, respectively, as stated above. Further, sections 154.38(d) (3) and 154.63 of the Commission's regulations shall be waived to permit Transco to track in its Rate Schedule FT-NT any changes in transportation assessed by Texas Gas and CNG.

(d) The rates approved herein are initial rates under section 7 of the Natural Gas Act and our approval does not constitute approval

of any underlying rate methodology, principle or concept to be used in any general rate change filed pursuant to section 4 of the Natural Gas Act. These initial rates will remain in effect until such time as Transco files to change its rates in a section 4 proceeding. At that time, any party or the Commission's staff may propose new rates based on different methodologies, principles or concepts.

(10) Transco shall have the option to either limit the availability of FT-NT service to the specific customers it intends to serve in the instant proceeding or to file its tariff sheets as customer-specific X-rate schedules to be included in Volume No. 2 of its tariff. In no event, however, should Rate Schedule FT-NT be characterized as a rate schedule of general availability.

(11) Long Lake and Power Authority of the State of New York are exempt from Transco's PSP Commodity Surcharge.

Commissioner Moler concurred with a separate statement attached.