shall cover spring and summer flora. The survey shall be conducted by a professional botanist, in cooperation with appropriate Federal and state agencies, and shall determine the presence of any threatened or endangered plant species as defined by the Smithsonian Institution and the Department of the Interior.

A full report on the method, time, scope, and results of the survey shall be filed promptly upon completion, but at least 30 days before any construction at the project is scheduled to commence. The report shall also include any proposed measures for protection of any threatened or endangered species discovered.

The Director of the Office of Electric Power Regulation may stay construction if the method, timing, or scope of the survey are inadequate to determine properly the presence or absence of threatened or endangered species.

(b)(1) Unless the Director stays construction, if the vegetation survey has found no evidence of threatened or endangered plant species, construction may proceed.

(2) If the vegetation survey has found evidence of threatened or endangered plant species that would be affected by construction of the proposed project powerhouses, intake structures, penstocks, substations, or appurtenant facilities, no project construction work may proceed until the procedures required by Section 7 of the Endangered Species Act (as amended) have been completed and construction has been approved.

(3) If the vegetation survey has found evidence of a threatened or endangered plant species that would be affected by construction activity at (a) a proposed staging area, (b) the proposed access road to Development No. 1, or (c) the proposed transmission line, then no construction activity may proceed for that particular facility (or, if a staging area, any part of the project dependent on that staging area) until the procedures required by Section 7 of the Endangered Species Act (as amended) have been completed and construction activity for that facility has been approved. Construction of other portions of the project, however, may proceed.

Article 41. Within one year following the date of commencement of operation of the project, the Licensee shall file for approval "as-built" Exhibit K drawings to show the project as finally constructed and located and the amount of U.S. lands occupied by it.

Article 42. The Licensee shall pay the United States the following annual charge, effective the first day of the month in which this license is issued:

(a) For the purpose of reimbursing the United States for the cost of administration of Part I of the Act, a reasonable annual charge as determined by the Commission in accordance with the provisions of its Regulations in effect from time

to time. The authorized installed capacity for that purpose is 47,500 horsepower.

(b) For the purpose of recompensing the United States for the use, occupancy, and enjoyment of its lands, an amount to be determined later.

Article 43. The Licensee shall commence construction of the project within two years from the effective date of this license and, in good faith and with due diligence, shall prosecute and complete construction of the project works within six years of the effective date of this license.

Article 44. The Licensee shall dispose of all temporary structures, unused timber, brush, refuse, or other material unnecessary for the purposes of the project which result from maintenance or operation of the project works. In addition, all trees along the periphery of the project reservoir which die during operation of the project shall be removed. All clearing of lands and disposal of unnecessary material shall be done with due diligence to the satisfaction of the authorized representative of the Commission and in accordance with appropriate Federal, state, and local statutes and regulations.

(E) This order shall become final 30 days from the date of issuance unless application for rehearing is filed, as provided in Section 313(a) of the Act. Failure of the Licensee to file such an application shall constitute acceptance of this license. In acknowledgment of acceptance of the license, it shall be signed for the Licensee and returned to the Commission within 60 days from the date of issuance of this order.

-Footnotes

A more detailed description of the project works is contained in Ordering Paragraph (B).

2 The rainbow and cutthroat trout ascend tributaries to the reservoirs to spawn.

'16 U.S.C. § 1531 et seq., as amended Pub. L. 95–632, 92 Stat. 3751 (Nov. 10, 1978).

The provision added to Article 12 limits project operation to ensure that the water surface elevations of the reservoirs will be maintained generally at historical levels. NEDC felt that it was important for this provision to be included in Article 12, rather than in some other license article. Although we fail to see any particular advantage to putting this limitation in Article 12, neither is there any harm, and we are granting NEDC's request.

591 Stat. 1425 (Nov. 23, 1977).

Article 36 makes the construction, operation, and maintenance of the project, insofar as they might affect the quantity or quality of water from the two reservoirs, subject to the authority granted the Secretary of Agriculture by Public Law 95-200.

18 U.S.C. § 1862.

'The City's field survey of the project discovered no archaeological or historic resources. The State Historic Preservation Officer reported that the project would not affect any cultural resources eligible for inclusion on the National Register of Historic Places.

'Lawrence Hydroelectric Associates and Essex Co.,

Project No. 2800, Order Issuing License and Authorizing Negotiations for Sale of Securities (issued Dec. 4, 1978, 5 FERC 61,202); Central Maine Power Co., Project Nos. 2284 and 2834, Order Amending License and Issuing New Major License (issued Feb. 9, 1979, 6 FERC ¶ 61,122).

10 The Montana Power Co., Project No. 2301, Order Issuing New License (Major) (issued Oct. 5, 1976, 56 FPC 2008).

These proceedings involve a group of related applications requesting authority pursuant to Section 7(c) of the Natural Gas Act to transport natural gas for thirteen specified distribution and industrial customers of Transcontinental Gas Pipe Line Corporation (Transco), or their affiliates. The customers and customer affiliates for whom transportation services are proposed have participated in the funding of three drilling programs organized to explore for and develop new gas reserves in onshore areas and state offshore waters in the Gulf Coast region. Production from commercially successful wells discovered under the drilling programs will be delivered either directly into Transco's line or into the line of an intermediate transporter for redelivery to Transco for ultimate transportation and redelivery to the market areas or plants of the program participants. Conditional authorization for the various transportation proposals will be issued herein.

A. THE THREE DRILLING PROGRAMS

In 1975, Transco organized two joint venture exploration and development programs under the management of independent oil and gas producers who possessed leases on drilling prospects in the Gulf Coast area. The programs were financed, in part, by existing distributor and industrial customers of Transco who received a working interest in any successful gas discoveries.' Transco's explora

tion and production affiliate, Transco Exploration Company (TXC), was also a contributing participant in both programs.2

The first of these joint ventures, the Transmac Exploration and Development Program (Transmac), managed by McMoRan Exploration Company, was established as a three-year program with a total drilling budget of $36 million. The program was subsequently revised and expanded to operate on an annual budget of $20 million beginning in September 1977 and increased to $22.5 million and $25 million annually in the next two succeeding years.

The second of these joint ventures, the Robert Mosbacher/Transco Exploration Company Joint Venture (Mosbacher), managed by Robert Mosbacher, was established in May 1975 with an initial drilling budget of $9 million. The Mosbacher program was also revised and expanded for a threeyear period, beginning May 1977, with annual budgets of $12 million, $13.5 million, and $15 million, respectively.

The third drilling program, the Enterprise Resources, Inc. Program (Enterprise Resources), was established in 1975 as a limited partnership. Enterprise Resources, Inc., is the general partner, and the participating Transco customers are limited partners. As of October 1977 the program had a total three-year drilling budget of $15 million.

As a result of these drilling programs, 21 gas

fields have been discovered to date. The transportation services proposed by the Applicants in these proceedings will enable the participating Transco customers to receive their working interests in the production from each of the 21 specified fields and from certain future fields which are discovered under the ongoing drilling programs.

B. TRANSPORTATION BY TRANSCO

Transco will provide transportation services for each Transco customer or Transco customer affiliate participating in the three drilling programs. In some cases, the transportation volumes will be delivered directly into Transco's system; in other cases, the volumes will be delivered to an intermediate transporter for subsequent redelivery to Transco.

1. Docket No. CP77-421

In Docket No. CP77-421, Transco requests authorization to transport up to 18,000 dekatherms (dt) equivalent of natural gas per day on an interruptible basis for ten of its distribution company customers, two industrial customers of its distribution customers,' and one direct industrial customer," or affiliates of those customers. The volumes will be delivered for transportation from 16 specified fields discovered under the Transmac, Mosbacher, and Enterprise Resources programs,' and will be used to offset curtailed deliveries for at least Priority 2 commercial and industrial purposes. The quantities transported for any industrial or commercial customer will not exceed that customer's contract entitlement absent curtailment.

For this service, Transco will charge the interruptible transportation rates approved by order issued June 27, 1978, 3 FERC ¶ 61,279, in Docket Nos. RP76-136 and RP77-26. Those approved settlement rates are 23.5g per dt delivered in Rate Zone 2 and 24¢ per dt delivered in Rate Zone 3. Transco will also retain 3.8 percent of the transportation volumes delivered in Rate Zone 2 and 4.4 percent of the volumes delivered in Rate Zone 3 for compressor fuel and line loss make-up.

Transco also requests authority to transport gas which becomes available to its customers or their affiliates from new producing sources discovered under the three ongoing drilling programs. The requested authority would be limited to total transportation from all sources of 18,000 dt equivalent per day. This authority was denied Transco in the temporary certificate issued December 21, 1977, in Docket No. CP77-421.

Upon further consideration we find that the requested flexible authority should be granted to Transco. Such flexible authority will permit prompt attachment of newly discovered reserves and will obviate the necessity of additional filings each time a new field is discovered. By limiting the overall authorization to 18,000 dt equivalent per day and requiring the filing of annual reports, the Commission can be reasonably assured that the

public interest will in no way be disserved by this authorization.

The flexible authority granted herein does not apply to intermediate transportation services and does not include authorization to construct jurisdictional facilities. Such authorizations must be obtained through separate certificate applications.' 2. Subsequent Transco Applications

After its request for flexible authority was denied in the December 21, 1977 temporary certificate, Transco filed additional applications requesting authority to transport gas from new fields which were discovered under the three drilling programs. In Docket Nos. CP79-15, CP79-44, CP79-49, CP79-51, and CP79-69, Transco filed applications requesting authority to transport gas from the Popcorn Bayou Field, Plaquemines Parish, Louisiana, the Lake Hatch '76 Field, Terrebonne Parish, Louisiana, the Intracoastal City Prospect Field, Vermilion Parish, Louisiana, and the West Hicksbaugh Field, Tyler County, Texas.

In view of our decision herein to grant flexible transportation authority to Transco, these additional applications are no longer necessary. We will, therefore, dismiss the pending applications in Docket Nos. CP79-15, CP79-44, CP79-49, CP79-51, and CP79-69 on grounds of mootness. C. INTERMEDIATE TRANSPORTATION

SERVICES

Production from the East Hordes Creek Field, the West Raceland Field, and the Intracoastal City Prospect Field will be delivered directly into Transco's system. Production from the Kawitt Area will be

delivered to Transco through the non jurisdictional facilities of Intrastate Gathering Corporation and National Gas Gathering Company.10 Intermediate jurisdictional transportation services will be required to move the gas from the remainder of the 21 identified fields to Transco's system."

1. Loisel Field

Southern Natural Gas Company (Southern) will be the intermediate transporter from the Loisel Field, Iberia Parish, Louisiana. In Docket No. CP77-321 Southern requests authority to transport up to 3,000 Mcf of gas per day at 15.025 psia for Transco as principal and as agent for the Transco customer participants in the Transmac drilling program. The gas will be transported on a best efforts basis from the Loisel Area to an existing point of interconnection between Southern and Transco near Jonesboro, Georgia.

For this service, Southern will collect a monthly demand charge of $90.00 and a monthly commodity charge of 29.2¢ per Mcf of natural gas redelivered to Transco. Southern will also retain 3.5 percent of the transportation volumes for fuel, company used, and unaccounted for gas. A tempo

rary certificate authorizing the proposed service was issued on July 15, 1977.

2. Bolivar Point Area

Southern will also provide intermediate transportation from the Bolivar Point Area, Plaquemines Parish, Louisiana. In Docket No. CP78-241 Southern requests authority to transport up to 12,000 Mcf of natural gas per day for Transco as principal and as agent for the Transco customer participants in the Transmac drilling program. The gas will be transported on a best efforts basis from M.P. 14.053 on Southern's 20-inch Main Pass - Franklinton Line in Plaquemines Parish, Louisiana, to an existing point of interconnection between Southern and Transco near Jonesboro, Georgia.

For this service, Southern will charge a transportation rate of 30.8¢ per Mcf delivered to Transco and will retain 3.5 percent of the volumes transported for fuel, company used, and lost and unaccounted for gas. A temporary certificate authorizing the proposed service was issued on June 30, 1978.

3. West Mermentau Area

Transco will receive deliveries of gas from the West Mermentau Area by means of an exchange between Transco and Michigan Wisconsin Pipe Line Company (Mich Wis). In Docket No. CP77-566 Transco and Mich Wis jointly request authority to exchange gas pursuant to an agreement dated July 11, 1977. Under the agreement, Transco will deliver, for the account of Mich Wis, up to 4,000 Mcf of gas per day at Sec. 89 T. 14 S., R. 3 E, Vermilion Parish (Live Oak Field), Louisiana, and up to 2,000 Mcf of gas per day at Sec. 24 T. 10 S., R. 2 W., Acadia Parish (West Mermentau Area), Louisiana. Mich Wis will deliver, in exchange, up to 1,000 Mcf of gas per day for the account of Transco at Sec. 9, T. 12 S., R. 1 W, Vermilion Parish (Southeast Gueydan Field), Louisiana. Any exchange imbalances are to be made up at the tailgate of Mobil Oil Corporation's Cameron Meadows Processing Plant, or other mutually agreeable locations. A temporary certificate authorizing the proposed exchange was issued August 25, 1977. 4. Southeast Avery Island

Trunkline Gas Company (Trunkline) will provide intermediate transportation services from Southeast Avery Island, Iberia Parish, Louisiana. In Docket No. CP77-592 Trunkline requests authority to transport up to 300 Mcf of natural gas per day for Transco as principal and as agent for the Transco customer participants in the Transmac drilling program. The gas will be transported on a firm basis from Sec. 50, T. 13 S., R. 6 E, Iberia Parish, Louisiana, to an existing point of interconnection between Trunkline and Transco in Vermilion Parish, Louisiana. A temporary certificate authorizing the proposed service was issued December 21, 1977.

For this service, Trunkline will collect a monthly transportation charge of $237.00, adjusted upward or downward by 2.60¢ per Mcf for any day on which Trunkline accepts more than 300 Mcf or is unable to accept the entire 300 Mcf. Trunkline will be permitted to collect the initial transportation rates proposed, subject to refund pending determination of the appropriate rate and appropriate disposition of transportation revenues in Docket No. RP78-11.

5. Stephenson Point Area

Florida Gas Transmission Company (FGT) will provide intermediate transportation from the Stephenson Point Area, offshore Galveston County, Texas. In Docket No. CP78-68 FGT requests authority to transport up to 2,000 dt equivalent of natural gas per day for Transco as principal and as agent for the Transco customer participants in the Transmac drilling program. FGT will transport the production from Chambers County, Texas, to Vermilion Parish, Louisiana. A temporary certificate authorizing the proposed service was issued February 24, 1978.

To implement the proposed transportation arrangement, FGT will construct a new meter station and tap, and Transco will construct approximately 2,250 feet of 4-inch pipeline. The proposed facilities will be constructed pursuant to the existing budgettype authorizations of FGT and Transco.

FGT will charge an initial rate of 11.5¢ per dt redelivered to Transco. This rate is composed of a facility charge of 8.6¢ per dt redelivered and a service charge of 2.9¢ per dt redelivered. The initial rate is based on the settlement cost of service approved January 13, 1977, in Docket No. RP76-24. In keeping with FGT's past practice, any revenues generated by the service should be credited to the overall system cost of service in FGT's next general rate case.

6. South Gist Field

Texas Eastern Transmission Corporation (Texas Eastern) will provide intermediate transportation service from the South Gist Field, Newton County, Texas. Three separate applications cover this proposed service.

In Docket No. CP77-324 Texas Eastern requests authorization to transport up to 30 dt equivalent of natural gas per day for Piedmont Exploration Company. The gas will be transported on an interruptible, best efforts basis, from the South Gist Field to an existing point of interconnection between Transco and Texas Eastern in East Feliciana or Beauregard Parish, Louisiana.

In Docket No. CP77-548 Texas Eastern requests authority to transport on an interruptible, best efforts basis, up to 30 dt equivalent of natural gas per day for NCNG Exploration Corporation. A temporary certificate authorizing the proposed transportation service in Docket Nos. CP77-324 and CP77-548 was issued December 21, 1977.

In Docket No. CP78-117 Texas Eastern requests authority to transport up to 69 dt equivalent of natural gas per day for Delmarva Energy Company, Tar Heel Energy Corporation, Rockingham Exploration Company, and UCG Energy Corporation. The gas will be transported from the South Gist Field to an existing point of interconnection between Transco and Texas Eastern in Beauregard Parish, Louisiana. A temporary certificate authorizing the proposed service was issued March 20, 1978.

For this service, Texas Eastern will charge the effective transportation rates under Texas Eastern's Rate Schedule TS-2. The currently effective rate for the receipt and delivery zones involved in this docket is 14.89¢ per Mcf. Disposition of the nonrecurring revenues which will be earned from this service is an issue under consideration in Texas Eastern's pending rate case in Docket No. RP78-87.

7. North Jefferson Island Field

Texas Gas Transmission Corporation (Texas Gas) will transport the gas produced in the North Jefferson Island Field, Iberia Parish, Louisiana, to the facilities of Transco. In Docket No. CP78-246, Texas Gas requests authorization to transport up to 245 Mcf of gas per day for NCNG Exploration Corporation, Piedmont Exploration Company, Rockingham Exploration Company, Tar Heel Energy Corporation, UCG Energy Corporation, Delmarva Energy Company, and Eastern Shore Natural Gas Company, on an interruptible basis. Texas Gas will transport the production from Delcambre, Iberia Parish, Louisiana, to an existing point of interconnection between Texas Gas and Transco near Mamou, Evangeline Parish, Louisiana.

The gas will be transported under Texas Gas' Rate Schedule TSL/Zone SL rates which are currently 5.77¢ per Mcf subject to refund in Docket No. RP77-139. In addition, 0.55 percent of the transportation volumes will be retained for compressor fuel and line loss.

8. South Tomball Field

Trunkline will also be the intermediate transporter from the South Tomball Field, Harris County, Texas. In Docket No. CP77-639 Trunkline requests authorization to transport up to 700 Mcf of gas per day for Piedmont Exploration Company, Inc., Eastern Shore Natural Gas Company, Tar Heel Energy Corporation, Delmarva Energy Corporation, Rockingham Exploration Company, UCG Finance Corporation, and NCNG Exploration Corporation, on a firm basis. The gas will be transported from the South Tomball Field to an existing point of interconnection between Trunkline and Transco in Vermilion Parish, Louisiana, near the tailgate of Mobil Oil Corporation's Cow Island Processing Plant. A temporary certificate authorizing the proposed service was issued December 21, 1977.

For this service, Trunkline will collect a monthly charge of $840.00, adjusted upward or downward by 3.96¢ per Mcf for any day on which Trunkline accepts more than 700 Mcf or is unable to accept the entire 700 Mcf. Trunkline will also retain 1 percent of the transportation volumes for fuel usage. Trunkline will be permitted to collect the initial transportation rates proposed subject to refund pending determination of the appropriate rate and appropriate disposition of transportation revenues in Docket No. RP78-11.

9. Popcorn Bayou Field

Southern Natural Gas Company (Southern) will transport the gas produced in the Popcorn Bayou Field, Plaquemines Parish, Louisiana, to the facilities of Transco. In Docket No. CP79-73 Southern requests authority to transport up to 2,000 Mcf of gas per day on an interruptible basis for Transco as principal and as agent for the Transco customer participants in the Transmac drilling program. The gas will be transported from the Popcorn Bayou Field to an existing point of interconnection between Transco and Southern near Jonesboro, Georgia.

For this service, Southern will collect a monthly demand charge of $250.00 and a monthly commodity charge of 35¢ per Mcf redelivered to Transco. Southern will also retain 3.5 percent of the transportation volumes for compressor fuel, company used, and lost and unaccounted for gas.

The proposed commodity charge of 35¢ per Mcf is derived from Southern's currently effective Rate Schedule EX-1 less purchased gas costs and advance payments. This rate will be approved, subject to the outcome of Southern's pending rate case in Docket No. RP78-36. 10. West Hicksbaugh Field

Texas Eastern will transport the gas produced in the West Hicksbaugh Field to the facilities of Transco. In Docket No. CP79-154 Texas Eastern requests authorization to transport up to 700 dt equivalent of natural gas per day for Transco as principal and as agent for the Transco customer participants in the Transmac drilling program. The gas will be transported from the West Hicksbaugh Field to a point of interconnection between Texas Eastern and Transco in Ragley, Louisiana.

For this service, Texas Eastern will charge the effective transportation rates under its Rate Schedule TS-2. The currently effective rate for the rate zone involved here, Rate Zone A, is 14.45¢ per Mcf. Disposition of the non-recurring revenues which will be earned from this service is an issue under consideration in Texas Eastern's pending rate case in Docket No. RP78-87.

D. TRANSPORTATION SERVICES FOR INDUSTRIAL CUSTOMERS

The industry-owned gas proposed to be transported in Docket Nos. CP77-421, CP77-321,