facilities now serve a distribution function, which is more efficiently and properly monitored and maintained by Southwest. El Paso proposes to abandon the Chandler facilities by conveyance, at no cost, to Southwest. El Paso states that gas volumes are presently metered upstream of this Chandler segment and that abandonment will not have an effect upon El Paso's ability to render natural gas service to Southwest.2

2. Douglas "B" Pipeline

El Paso also requests authority to abandon one segment of the 12-3/4-inch Douglas "B" pipeline, comprising approximately 5.85 miles of pipeline, located in Dona Ana County, New Mexico.3 El Paso has determined that a short segment, approximately 16,388 feet, of the Douglas "B" facilities to be abandoned is no longer suitable for the transportation and delivery of natural gas as stress corrosion, cracking, and leakage no longer allow the segment to meet the minimum operating requirements established by El Paso. Under these circumstances, El Paso believes that it is necessary to abandon this pipeline segment in place and to remove for salvage the rest of the pipeline segment, consisting of approximately 14,500 feet. Further, El Paso has determined that the remaining 133.45 mile portion of the Douglas "B" pipeline, which loops the Douglas "A" pipeline at various locations, is capable of rendering the necessary natural gas service to El Paso's customers after the abandonment. El Paso currently serves eight right-of-way taps off of the segment of the Douglas "B" facilities to be abandoned. However, El Paso's ability to render natural gas service would not be affected since these existing tap facilities are also connected to El Paso's 12-3/4-inch Douglas "A" pipeline.

3. Tucson-Phoenix Pipeline

El Paso proposes to abandon approximately 7.97 miles of the 10-3/4-inch segment of the Tucson-Phoenix mainline transmission pipeline (Tucson-Phoenix pipeline), located in Pima

2 The estimated cost of abandonment by conveyance for the Chandler pipeline segment is $5,000.

3 El Paso was granted a certificate authorizing the continued operation of the Douglas "B" mainline transmission pipeline on January 11, 1944. See 4 FPC 486 (1944).

*This short segment has been purged, capped, and isolated by El Paso pending receipt of abandonment approval from the Commission. The estimated cost of abandonment for the Douglas "B" pipeline is $50,000, with a salvage value of $9,744.

5 El Paso was granted a certificate authorizing the continued operation of the Tucson-Phoenix pipeline on January 11, 1944. See 4 FPC 486 (1944).

County, Arizona.5 The Tucson-Phoenix pipeline consists of approximately 207.60 miles of 10-3/4-inch pipeline commencing in Cochise County, Arizona. El Paso has determined that a 7.97 segment of this pipeline is no longer required due to changing load conditions and existing interconnects with the California Line. El Paso presently serves three right-of-way grantor taps off of this segment of the 10-3/4-inch Tucson-Phoenix pipeline. The proposed abandonment will not, according to El Paso, effect El Paso's ability to continue to render natural gas service since these existing tap facilities are also connected to El Paso's 10-3/4-inch Tucson-Phoenix Loop Line. El Paso proposes to abandon approximately 5.77 miles of this segment in place and to remove the remaining 2.20 mile segment, which runs under an existing road. The estimated cost of abandonment of the Tucson-Phoenix pipeline is $40,000, with a salvage value of $5,808.

4. Yuma Pipeline

El Paso also seeks authority to abandon its Yuma pipeline, which consists of approximately 67.86 miles of 5-inch pipeline and approximately 1.20 miles of 6-5/8-inch pipeline commencing in La Paz County, Arizona and terminating in Yuma County, Arizona. Since its construction in 1948, the Yuma pipeline has been used by El Paso to provide natural gas to Southwest for resale in its service area near the pipeline. Due to high repair and maintenance costs, El Paso has determined that most of the Yuma pipeline is no longer suitable for the transportation and delivery of gas. El Paso plans to retain approximately 1.80 miles of the 5-inch Yuma pipeline, which meets El Paso's standards, to permit the continued sale of natural gas to Southwest for resale to the Harsh Cafe tap in Yuma County, Arizona. El Paso states that the existing 10-3/4-inch Yuma Loop pipeline can accommodate the natural gas requirements of the local distribution company along the route of the Yuma pipeline, as well as in the City of Yuma and its surrounding

6 El Paso was granted a certificate authorizing, among other things, the operation of the Yuma pipeline on September 10, 1948. El Paso Natural Gas Company et al., 7 FPC 908 (1948).

7 El Paso serves three tap delivery points, including the Harsh Cafe tap, and four meter station delivery points along the existing Yuma pipeline. With the exception of the Drone Test tap, which tap facility and service will be abandoned by El Paso under the prior notice provisions of section 157.216(b) of the Commission's regulations, no other facilities or services will be effected by the proposed abandonment of the Yuma pipeline since these facilities are also connected to El Paso's 10-3/4-inch Yuma Loop pipeline.

area. El Paso proposes to abandon the Yuma pipeline in place.8

5. Rio Grande power plant line and Del Norte No. 2 meter station line

El Paso also seeks authority to abandon approximately 1.45 miles of a 16-inch segment of the Rio Grande power plant line (Rio Grande line), and approximately 0.04 mile of a 6-5/8-inch segment of the Del Norte No. 2 meter station line (Del Norte line), located in the downtown area of El Paso, Texas. Both the Rio Grande line and the Del Norte line are lateral lines that have been used to deliver natural gas to Southern Union Gas Company (Southern Union) for resale in the general area of El Paso and to Del Norte Natural Gas Company (Del Norte) for resale and export of natural gas into Mexico. El Paso has determined that approximately 1.45 miles of the Rio Grande line and the entire Del Norte line, consisting of approximately 0.04 miles of 6-5/8-inch pipeline, are no longer required as these facilities are located in an extremely congested area, making general maintenance an increasingly difficult task, are no longer used to serve the customers of El Paso, and will no longer be able to meet minimum federal safety standards in the near future. El Paso states that pipeline facilities located upstream of the facilities being abandoned have sufficient capacity to render the natural gas service requested by Southern Union. Further, the service agreement between El Paso and Del Norte was terminated effective January 1, 1983. The pipeline facilities will be abandoned in place.10

Gas Sales Facilities

1. Del Norte No. 2 Meter Station

El Paso also seeks to abandon the Del Norte No. 2 Meter Station (Del Norte Station), located in the downtown area of El Paso, Texas.11 The Del Norte Station, constructed on the Del Norte line, was used by El Paso to sell

8 The estimated cost of abandonment for the Yuma pipeline is $40,000, with no salvage value.

El Paso received authorization to construct and operate the Rio Grande power plant line on April 11, 1944, El Paso Natural Gas Company, 4 FPC 567 (1944), and received authorization to construct and operate the Del Norte No. 2 meter station line on September 8, 1969, El Paso Natural Gas Company et al., 42 FPC 640 (1969).

10 The estimated cost of abandonment in place of the Rio Grande line and the Del Norte line is $30,000, with no salvage value.

11 El Paso was granted certificate authorization for the acquisition from El Paso Gas Transportation Corporation and operation of the Del Norte Station on September 8, 1969. See 42 FPC 640 (1969).

12 By order issued March 4, 1968, Southern Union Gas Company et al., 39 FPC 223 (1968), Del Norte

natural gas to Del Norte for resale and export into Mexico, pursuant to a service agreement.12 No deliveries have been made to Del Norte since October 14, 1982, and the agreement was terminated effective January 1, 1983. Natural gas service to the city of Juarez, Mexico, Del Norte's former customer, is now provided from gas supplies in Mexico, sold by Petroleos Mexicanos. El Paso proposes to abandon the metering facility by removal and return to stock for future use. 13

2. Overland Mainline Sales Tap

El Paso seeks permission and approval to abandon the Overland mainline sales tap (Overland tap), located in the downtown area of El Paso, Texas.14 The Overland tap was installed by El Paso to provide natural gas service to Southern Union for resale on El Paso's Rio Grande power plant line. Deliveries to Southern Union at the Overland tap have been provided under the provisions of the currently effective service agreement, dated September 1, 1959, between El Paso and Southern Union. Southern Union has advised El Paso that Southern Union has connected the distribution facilities served by the Overland tap to other portions of its existing distribution system, effective November 21, 1985. Therefore, Southern Union no longer desires to purchase gas from El Paso at the Overland tap, and El Paso plans to abandon the tap in place.15

Notice and Interventions

After due notice by publication in the Federal Register on March 16, 1989, 54 Fed. Reg. 11,043, timely, unopposed notices and motions to intervene were filed by Arizona Public Service Company, Phelps Dodge Corporation and Salt River Project Agricultural Improvement and Power District, jointly; Public Utilities Commission of the State of California; Southern Union Gas Company; Southwest Gas Corporation; Western Gas Interstate Company, and

received authorization to export gas from the United States to two gas distribution companies serving the city of Juarez, Mexico, and the surrounding area. This authorization automatically terminated upon the expiration of contracts between Del Norte and the gas purchasers.

13 The estimated cost of abandonment for the Del Norte Station is $1,000, with a salvage value of $9,958.

14 El Paso was granted certificate authorization for the acquisition from El Paso Gas Transportation Corporation and operation of the Overland tap on September 8, 1969. See 42 FPC 640 (1969).

15 The estimated cost of abandonment for the tap is $200.

have been granted by operation of Rule 214. No protests or petitions to intervene in opposition to the application have been filed.

Discussion

Since the application pertains to facilities and services for the transportation of natural gas in interstate commerce subject to the jurisdiction of the Commission, the proposed abandonments thereof are subject to the requirements of subsection (b) of section 7 of the NGA.

El Paso states that operating conditions and requirements have changed substantially and have eliminated the need for the continued operation of the facilities for the services described above. El Paso proposes to abandon in place a majority of these facilities, with the remainder to be abandoned either by removal and sale, or by scrapping the nonsellable items. Further, El Paso states that the abandonments will not cause any material change in its cost of service.

The Commission finds that the proposed abandonments of facilities and services, as discussed herein, are permitted by the public convenience and necessity. The facilities and services that El Paso proposes to abandon are no longer required due to inefficiency in operations, leakage, high cost of repairs, changes in load conditions and existing interconnects and/ or expiration or changes in service. The Commission notes that the proposed abandonments will not result in or cause any interruption, reduction, or termination of natural gas service presently rendered by El Paso to any of its customers, except as described above.

Environment

The Commission's staff has prepared an environmental assessment (EA) for El Paso's

proposed abandonments. The EA addressed the abandonment procedures for the facilities, land use, erosion control, revegetation of disturbed areas, cultural resources, and federally listed threatened or endangered species. Based on the information discussed in the EA, the application, supplemental information, and contacts with the Soil Conservation Service, the Commission finds that the proposed abandonments would not constitute a major federal action significantly affecting the quality of the human environment. The Commission is, however, conditioning the authority granted herein as follows:

El Paso shall apply a grain straw mulch at a rate of three tons per acre on all nonagriculture areas disturbed by construction. Mulch shall be secured with a crimping disk or other suitable means.

At a hearing held March 13, 1991, the Commission on its own motion received and made a part of the record in this proceeding all evidence submitted, including the application and exhibits supporting the sought authorization, and after consideration of the record;

The Commission orders:

(A) Permission and approval of the abandonments of facilities and services as described herein and in the application in Docket No. CP89-877-000 is granted.

(B) El Paso shall notify the Commission of the date of the abandonment within 10 days thereof.

(C) El Paso shall apply a grain straw mulch at a rate of three tons per acre on all nonagriculture areas disturbed by construction. Mulch shall be secured with a crimping disk or by other suitable means.

in Lewis County, Washington. On May 26, 1989, Northwest Pipeline Corporation (Northwest) filed an application in Docket No. CP89-1525-000, pursuant to sections 7(b) and (c) of the Natural Gas Act, for a certificate of convenience and necessity authorizing a new Jackson Prairie meter station and changes in

storage services and for authorization to abandon an old meter station and a portion of its Jackson Prairie Storage Project cushion gas. Northwest filed an amendment to its application on August 20, 1990.

For the reasons discussed below, the Commission will grant the requested authorizations, with certain modifications and conditions.

Background

The Jackson Prairie Storage Project (Jackson Prairie) is an aquifer type storage area which currently provides storage capacity for Northwest's special winter peaking service, provided pursuant to Northwest's Rate Schedule SGS-1, and open-access storage service, provided pursuant to Northwest's Rate Schedule SGS-2. Washington Natural is the operator of the storage project. Washington Natural, Northwest, and the Washington Water Power Company (Washington Water Power) each own a onethird undivided interest in Jackson Prairie. Northwest, Washington Natural, and Washington Water Power also each own one-third of the cushion gas in the storage field, one-third of the working gas storage capacity, and one-third of the daily withdrawal or deliverability capacity. Two storage areas, Zones 2 and 9, are currently certificated for operation. However, pursuant to the Gas Storage Agreement among these parties, Northwest has the exclusive right to utilize the entire working capacity of the storage field, subject to Northwest providing firm storage service to Washington Natural and Washington Water Power in quantities not exceeding their respective one-third shares of the seasonal and daily capacity of the field. During the injection season, Northwest tenders gas to Washington Natural at the interconnection between Northwest's mainline facilities and the Jackson Prairie facilities for injection. During the withdrawal season, Washington Natural withdraws gas from the storage facilities at Northwest's direction and delivers it to Northwest for further delivery to Northwest's customers. Northwest owns and operates a twoway meter station at the interconnection between its facilities and those of the storage field. This meter station is at its capacity limit when the storage field is operated at the currently authorized levels.

1 Northwest is currently authorized to provide SGS-1 service to Washington Natural, Washington Water Power, CP National Corporation (CP National), Cascade Natural Gas Corporation (Cascade), Greeley Gas Company, Intermountain Gas Company (Intermountain), Paiute Pipeline Company, and Northwest Natural Gas Company (Northwest Natural).

2 Washington Water Power has released the remainder of its capacity in the Jackson Prairie stor

Northwest's Rate Schedule SGS-1 covers the storage services which Northwest provides to its ODL-1 sales customers at Jackson Prairie.1 Northwest currently utilizes 3.6 Bcf of its own working gas storage capacity and 100 MMcf per day of its own daily withdrawal capacity to provide SGS-1 storage service to various customers, including Washington Natural. In addition, Northwest uses 3.6 Bcf of Washington Natural's share of working gas storage capacity and 125 MMcf per day of Washington Natural's daily withdrawal capacity to provide SGS-1 service to Washington Natural. Northwest uses 1.435878 Bcf of Washington Water Power's working gas storage capacity and 64.855 MMcf per day of Washington Water Power's daily withdrawal capacity to provide SGS-1 service to Washington Water Power.2 Northwest was authorized to use the remaining 2 Bcf of working gas storage capacity as system supply supplement through the 1989/90 heating season.3 However, upon implementation of the expanded level of operation proposed here, Washington Natural and Washington Water Power will take control of their shares of this capacity (1.333334 Bcf), leaving Northwest only interruptible capacity to use for system supply purposes. As compensation for Northwest's use of Washington Natural's and Washington Water Power's shares of the 2 Bcf increment of capacity, Northwest has reflected credits to Washington Natural and Washington Water Power in the design of its SGS-1 storage service rates.

The Commission's May 31, 1988 order on rehearing of Northwest's open-access transportation proceeding1 required Northwest to make its one-third share of Jackson Prairie available

age facilities (2.164122 Bcf of storage capacity and 60.115 MMcf per day of daily withdrawal capacity) to B.C. Gas, Inc. Northwest transports the B.C. Gas volumes to and from Jackson Prairie and provides injection and withdrawal services for that gas, all for the account of Washington Water Power.

321 FERC 62,422 (1982).

4 Northwest Pipeline Corporation, 43 FERC 61,342 (1988).

As proposed, Northwest, Washington Natural, and Washington Water Power would each receive one-third (766,667 Mcf) of the additional working gas storage capacity and 25 MMcf per day of additional daily withdrawal capacity.

To achieve the proposed operating levels shown above, Washington Natural seeks the following specific authorizations:

(1) To reduce the present Zone 2 cushion gas requirement of 19.3 Bcf to 16.8 Bcf. The difference of 2.5 Bcf will be treated as salvage and returned to Northwest, Washington Natural, and Washington Water Power in equal amount;

(2) To increase the firm daily delivery (withdrawal) rate of 375 MMcf per day to 450 MMcf per day;

(3) To increase the currently authorized seasonal working gas capacity of 12.8 Bcf to 15.1 Bcf;

5 Rate Schedule SGS-2 service, which is available to any party, is a purely storage service, with the SGS-2 customer responsible for making delivery arrangements for the stored gas under separate transportation rate schedules. SGS-1 service, by contrast, is a storage and delivery service, available only to Northwest's existing SGS-1 customers.

(4) To expend $3,200,000 to recomplete six wells, add two dehydration towers and two cooling towers with associated piping, and loop the 9,000-foot mainline connection between the storage field and Northwest's mainline. In addition, Washington Natural proposes to contribute to the construction of a new mainline meter station as described in Docket Nos. CP89-1525-000, -001.

(5) To modify the current equation calling for 100 percent of the maximum deliverability until 50 percent of the working gas inventory is withdrawn to provide that the daily withdrawal quantity shall be 100 percent of the deliverability (as defined at not more than 450 MMcf daily) until 45 percent of the working gas inventory is withdrawn. For withdrawals beyond 45 percent of the working gas inventory, the daily withdrawal quantity shall be reduced one percent of deliverability for each additional percent of the working gas inventory withdrawn above said 45 percent.

In order to accommodate the increased withdrawal rate contemplated by Washington Natural's application, a larger Jackson Prairie meter station will be required. Accordingly, in Docket Nos. CP89-1525-000 and -001, Northwest is requesting authority to:

(1) Construct and operate a new Jackson Prairie meter station in section 12, Township 12 North, Range 2 West, Lewis County, Washington, at the interconnection of Northwest's mainline facilities with the Jackson Prairie storage field pipeline operated by Washington Natural. The cost of the new meter station is estimated to be $1,622,000. The new meter station will be considered part of the Jackson Prairie Storage Project with Northwest, Washington Natural, and Washington Water Power each owning a onethird interest in the meter station and being responsible for one-third of both the capital cost and operating costs.

(2) Abandon by removal the existing Jackson Prairie meter station.

To reflect the proposed expansion of Jackson Prairie storage capacity, Northwest is seeking authorization to

(3) Abandon 833,334 Mcf of the Jackson Prairie cushion gas inventory by conversion to working gas in the storage field. This amount represents Northwest's one-third

6 The 2 Bcf difference between the decrease in cushion gas and the increase in working gas is due to the structural limitations of the storage field.

7 Costs of Jackson Prairie are divided equally among the project owners.