CP78-241, CP77-566, CP77-592, CP78-68, CP79-73, and CP79-154, will be used to offset curtailments of supply available for Priority 2 process purposes. The three industrial customers involved, Owens-Corning, Burlington, and Devco, were under 100 percent curtailment during the 1977-78 winter and expect the same degree of curtailment during the 1978-79 heating season and subsequent heating seasons. All three customers state that they have maximized conservation efforts and have converted to alternate fuels wherever practical. Despite these actions, each customer finds it necessary to rely on supplemental supplies of gas to continue normal operations.

Burlington requires natural gas for open-flame processing in finishing plants where the operations of singeing, drying, heat setting, thermasol dyeing and curing are performed. Each finishing plant, in turn, might rely on six or seven griege plants, which produce the unfinished fabrics. Because each phase of its textile manufacturing business is interrelated, any interruption of its finishing plant operations would necessarily impact its 63,000 employees in all 108 plants. Burlington reports that although it has standby propane facilities in place at all but one plant, supply and storage considerations limit such use to just a few weeks on the average. The use of multi-fuel burners is also being explored, but this alternative requires additional storage facilities and results in a less satisfactory finished product. In addition to its participation in the Transmac drilling program, Burlington purchases natural gas from Harvey Broyles, et al., and purchases propane from local suppliers to help offset curtailment and avoid fuel-related layoffs.

Owens-Corning intends to use the transported gas at its Anderson, South Carolina, plant. That plant has a total employment of 1,500, an annual payroll of $15 million and makes annual purchases from local suppliers amounting to about $4 million. Owens-Corning estimates that a plant shut-down due to a lack of natural gas supply, as occurred during January of 1977, affects some 10,000 residents of the area. The small direct melt furnaces used at the Anderson plant, where fiberglas reinforced filters and mat products are manufactured, require natural gas for in-process uses because of its superior flame characteristics and size limitations in the furnaces' combustion chambers. These fiberglas products have applications in automotive weight reduction, oil field pipe, underground gasoline storage tanks and pipe for electric generating and sewage treatment plants, all of which are important energy and environmental needs. The Anderson plant, served under a 1954 firm contract, has been in partial curtailment since 1971 and 100 percent curtailment during the 1978–1979 winter. Karlcorp, a subsidiary, actually participated in Transmac and then assigned its interests to Owens-Corning. Total shut-down was averted by the use of other FPC Order No. 533 (54 FPC 821) and storage gas.

Devco uses natural gas in a finishing process called flashing which gives the brick its final color. Although fuel oil has been used, gas is preferred because it produces a consistent and controllable process. Devco states that access to its own supply of gas will ensure product uniformity in that once an order for a single large project is put into production the same fuel can be used for flashing all of the brick. The plant has been under 100 percent curtailment since October of 1976, but no directly attributable shut-downs were reported due to the use of propane.

Policy issues concerning long-term transportations of industry-owned gas are currently under consideration in Natural Gas Pipeline Company of America, et al., Docket No. CP77-71, et al.12 Pending the outcome of that case, but without prejudging its effect on this case, the authorizations granted herein for the transportation of industryowned gas will be limited to an initial term of two years from the date deliveries commence, as required by existing Commission policy," without prejudice to the Applicants' right to file for authorization to continue the service beyond the initial two-year term. With this limitation, we find the proposed transportations of industry-owned gas to be required in the public interest.

E. INTERVENTIONS

After due notice of all applications by publication in the Federal Register, the following parties filed petitions to intervene in the following dockets: CP77-421

Pennsylvania Gas and Water Company
Delmarva Power and Light Company
Public Service Company of North Carolina, Inc.
Piedmont Natural Gas Company, Inc. and Pied-
mont Exploration Company, Inc.
Eastern Shore Natural Gas Company
Burlington Industries, Inc.

Carolina Pipeline Company
South Jersey Gas Company
United Cities Gas Company
Philadelphia Electric Company
CP77-592

Transco

CP78-246

Eastern Shore Natural Gas Company
UCG Energy Corporation

Public Service Company of North Carolina, Inc.

We find that participation of all the petitioners to intervene may be in the public interest and will permit their interventions.

At a hearing held on March 14, 1979, the Commission on its own motion received and made a part of the record in these proceedings all evidence, including the applications, amendments, and exhibits thereto, submitted in support of the authorizations sought in Docket Nos. CP77-421,

CP79-15, CP79-44, CP79-49, CP79-51, CP79–69, CP77-324, CP77-548, CP78-117, CP79-154, CP77-321, CP78-241, CP79-73, CP77-566, CP77-592, CP77-639, CP78-246, and CP78-68, and upon consideration of the record,

The Commission finds:

(1) The transportation of natural gas proposed in Docket Nos. CP77-421, CP77-324, CP77-548, CP78-117, CP79-154, CP77-321, CP78-241, CP79-73, CP77-566, CP77-592, CP77-639, CP78-246, and CP78-68, will be in interstate commerce, subject to the jurisdiction of the Commission, and is subject to the requirements of Subsections (c) and (e) of Section 7 of the Natural Gas Act.

(2) Applicants in Docket Nos. CP77-421, CP77-324, CP77-548, CP78-117, CP79-154, CP77-321, CP78-241, CP79-73, CP77-566, CP77-592, CP77-639, CP78-246, and CP78-68, are able and willing properly to do the acts and perform the services proposed and to conform to the provisions of the Natural Gas Act and the requirements, rules and regulations of the Commission thereunder.

(3) The proposed transportation of natural gas is required by the public convenience and necessity, and certificates therefor should be issued as hereinafter ordered and conditioned.

(4) The requests for authorization to transport gas in Docket Nos. CP79-15, CP79-44, CP79-49, CP79-51, and CP79-69 are moot, and the applications in those dockets should be dismissed.

(5) Participation in these proceedings by the petitioners to intervene may be in the public interest.

The Commission orders:

(A) Upon the terms and conditions of this order, a certificate of public convenience and necessity is issued to Transco authorizing the transportation of up to 18,000 dt equivalent of natural gas per day on an interruptible basis for Transco customers or customer affiliates who own working interests in natural gas produced under the Transmac, Mosbacher, and Enterprise Resources drilling programs, with flexible authority to transport gas from new sources of production discovered under the drilling programs, all as hereinbefore described and as more fully described in the application in Docket No. CP77-421.

(B) Upon the terms and conditions of this order, certificates of public convenience and necessity are issued to Texas Eastern authorizing (1) the transportation of up to 30 dt equivalent of natural gas per day on an interruptible basis for Piedmont Exploration Corporation; (2) the transportation of up to 30 dt equivalent of natural gas per day on an interruptible basis for NCNG Exploration Corporation; (3) the transportation of up to 69 dt equivalent of natural gas per day on an interruptible basis for Delmarva Energy Company, Tar Heel Energy Cor

poration, Rockingham Exploration Company, and UCG Energy Corporation; and (4) the transportation of 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, all as hereinbefore described and as more fully described in the applications in Docket Nos. CP77–324, CP77-548, CP78–117, and CP79-154.

(C) Upon the terms and conditions of this order, certificates of public convenience and necessity are issued to Southern authorizing the transportation of up to 3,000, 12,000 and 2,000 Mcf of natural gas per day on an interruptible basis for Transco as principal and as agent for the Transco customer participants in the Transmac drilling program, all as hereinbefore described and as more fully described in the applications in Docket Nos. CP77-321, CP78-241, and CP79-73.

(D) Upon the terms and conditions of this order, a certificate of public convenience and necessity is issued to Transco and Mich Wis authorizing the exchange of up to 6,000 Mcf of natural gas per day, all as hereinbefore described and as more fully described in the application in Docket No. CP77-566.

(E) Upon the terms and conditions of this order, certificates of public convenience and necessity are issued to Trunkline authorizing (1) the transportation of up to 300 Mcf of natural gas per day on a firm basis for Transco as principal and as agent for the Transco customer participants in the Transmac drilling program, and (2) the transportation of up to 700 Mcf of natural gas per day for Piedmont Exploration Company, Eastern Shore Natural Gas Company, Tar Heel Energy Corporation, Delmarva Energy Corporation, Rockingham Exploration Company, UCG Finance Corporation, and NCNG Exploration Corporation, all as hereinbefore described and as more fully described in the applications in Docket Nos. CP77-592 and CP77-639.

(F) Upon the terms and conditions of this order, a certificate of public convenience and necessity is issued to Texas Gas authorizing the transportation of up to 245 Mcf of natural gas per day on an interruptible basis 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, all as hereinbefore described and as more fully described in the application in Docket No. CP78-246.

(G) Upon the terms and conditions of this order, a certificate of public convenience and necessity is issued to FGT authorizing the transportation of up to 2,000 dt equivalent of natural gas per day on an interruptible basis for Transco as principal and as agent for the Transco customer participants in the Transmac drilling program, all as hereinbe

fore described and as more fully described in the application in Docket No. CP78-68.

(H) The applications of Transco filed in Docket Nos. CP79-15, CP79-44, CP79-49, CP79-51, and CP79-69 are dismissed, and the proceedings in those dockets are terminated.

(I) The flexible authority granted to Transco in paragraph (A) above is conditioned as follows:

1. Transco shall not transport more than 18,000 dt of natural gas per day regardless of the number of fields involved.

2. All necessary authorizations must be obtained for jurisdictional transportation services by intermediary pipelines and for jurisdictional facilities construction before deliveries are commenced from a new field.

3. On or before January 31 of each year, Transco shall file with the Commission pursuant to Part 154 of the Regulations under the Natural Gas Act, appropriate revisions to the transportation agreements to reflect the addition of new fields made subject to such agreements or the deletion of fields previously shown therein. Transco shall identify the producer-seller and intermediate transporter involved and specify the related certificates covering such activities along with the percentage of interest held by each party at the time a new delivery point is added.

4. The purchase price of all gas to be transported hereunder may not exceed the applicable ceiling price provided by the Natural Gas Policy Act of 1978.

(J) The certificates issued by paragraphs (A), (B), (C), (D), (E), (F) and (G) above and the rights granted thereunder are conditioned upon the Applicants' compliance with all applicable Commission Regulations under the Natural Gas Act and particularly the general terms and conditions set forth in paragraphs (a), (c)(3), (e) and (f) of Section 157.20 and in Part 154 of those Regulations.

(K) The Applicants in Docket Nos. CP77-421, CP77-321, CP78-241, CP77-566, CP77-592, CP78-68, CP79-73, and CP79-154 are authorized to render the transportation services proposed for the direct and indirect industrial customers of Transco, subject to the following terms and conditions:

1. The authorization is limited to an initial term of two years from the date deliveries commence, without prejudice to the filing for authorization to continue the service beyond the two-year term.

2. The volumes of gas transported shall be utilized for at least Priority 2 process requirements as defined in Section 2.78 of the Commission's General Policy and Interpretations (18 CFR 2.78).

3. The total volumes delivered to Burlington,

Owens-Corning and Devco at each plant site shall not exceed that location's contract demand entitlement with Transco, other pipelines, and indirect supplier(s).

4. Transco shall submit a monthly report to the Commission consisting of an original and four copies indicating the name of the producer, the volumes received and transported, the volumes delivered, the point of delivery to the distributor (if any) and the name of the distributor. Such report shall be filed under oath within 20 days after the end of each month included in the term of the transportation certificate. Transco shall also file a report for any month during which gas was not transported.

5. Burlington, Owens-Corning and Devco shall provide Transco monthly reports under oath, which shall be transmitted to the Commission as attachments to the reports required in subparagraph 4 above. Said reports shall contain data on the amount of natural gas consumed at each affected plant site during the month covered by the report, the end-use of such consumption according to the priorities contained in 18 CFR 2.78, the amount, and end-use of natural gas received from other sources during the reporting month and the identities of such sources.

(L) Transco's proposed transportation rates in Docket No. CP77-421 shall be consistent with the settlement rates approved in Docket Nos. RP76-136 and RP77-26.

(M) Southern's proposed transportation rates in Docket Nos. CP77-321, CP78-241, and CP79-73 shall reflect the determination in the proceeding in Docket No. RP78-36.

(N) Trunkline's proposed transportation rates in Docket Nos. CP77-592 and CP77-639 are subject to the determination in the proceeding in Docket No. RP78-11.

(0) Any revenues generated from the service performed by FGT in Docket No. CP78-68 shall be credited to the overall system cost of service in FGT's next general rate case.

(P) Texas Eastern shall credit the revenues received from services authorized in Docket Nos. CP77-324, CP77-548, CP78-117, and CP79-154 in a manner consistent with the determination in the proceeding in Docket No. RP78-87.

(Q) Texas Gas' proposed transportation rates in Docket No. CP78-246 are subject to the determination in the proceeding in Docket No. RP77-139.

(R) The petitioners to intervene are permitted to intervene in the dockets in which they filed subject to the Rules and Regulations of the Commission: Provided, however, that participation of the interveners shall be limited to matters affecting asserted rights and interests as specifically set forth in the petitions to intervene; and Provided, further, that admission of the interveners shall not be construed as recognition by the Commission that

they might be aggrieved because of any order of the Commission entered in these proceedings.

-Footnotes

'Transco customers participated in the three drilling programs either directly, as principals, or through small producer affiliates. The participating customers, or affiliates, for whom transportation services are proposed are the following:

(a) Resale Customers

1. Carolina Pipeline Company

2. Delmarva Energy Company, an affiliate of Delmarva Power & Light Company

3. Eastern Shore Natural Gas Company

4. NCNG Exploration Corporation, an affiliate of North Carolina Natural Gas Corporation

5. Pennsylvania Gas and Water Company
6. Philadelphia Electric Company

7. Piedmont Exploration Company, Inc., an affiliate of Piedmont Natural Gas Company, Inc.

8. Rockingham Exploration Company, an affiliate of North Carolina Gas Service División of Pennsylvania and Southern Gas Company

9. Tar Heel Energy Corporation, an affiliate of Public Service Company of North Carolina, Inc.

10. UCG Energy Corporation, an affiliate of United Cities Gas Company, North and South Carolina Divisions (b) Direct Industrial Customer

11. Owens-Corning Fiberglas Corporation (OwensCorning)

(c) Indirect Industrial Customers

12. Burlington Industries, Inc. (Burlington)

13. Devco Enterprises, Inc., an affiliate of Cherokee Brick Company of North Carolina, Inc. (Devco)

'TXC's working interest in successful wells will be sold to Transco, unless prior dedications interfere or unless the size and location of the discovery would make delivery into Transco's system infeasible. Transco also has the right of first refusal to purchase the operators' working interests in successful gas wells.

'The 21 gas fields discovered under the three drilling programs are the following:

(a) Transmac

1. Loisel Field, Iberia Parish, Louisiana

2. Chandeleur Sound Blk. 59, St. Bernard Parish, Louisiana

3. State Lease 849-S, offshore Port Aransas, Texas 4. Bolivar Point Area, Plaquemines Parish, Louisiana 5. Kawitt Area, Karnes and DeWitt Counties, Texas 6. West Mermentau Area, Acadia Parish, Louisiana 7. Southeast Avery Island, Iberia Parish, Louisiana 8. Popcorn Bayou Field, Plaquemines Parish, Louisiana

9. West Raceland Field, Lafourche Parish, Louisiana 10. Lake Hatch '76 Field, Terrebonne Parish, Louisiana

11. Intracoastal City Prospect Field, Vermilion Parish, Louisiana

(b) Mosbacher

12. Big Point Field, St. Tammany Parish, Louisiana 13. North Hester Field, St. James Parish, Louisiana 14. Stephenson Point Area, offshore Galveston County, Texas

15. Southwest Gibson Area, Terrebonne Parish, Louisiana

16. North Freshwater Bayou Field, Vermilion Parish, Louisiana

17. West Hicksbaugh Field, Tyler County, Texas (c) Enterprise Resources

18. South Gist Field, Newton County, Texas 19. East Hordes Creek Field, Goliad County, Texas 20. North Jefferson Island Field, Iberia Parish, Louisiana

21. South Tomball Field, Harris County, Texas * Carolina Pipeline Company; Delmarva Energy Company; Eastern Shore Natural Gas Company; NCNG Exploration Corporation; Pennsylvania Gas and Water Company; Philadelphia Electric Company; Piedmont Exploration Company, Inc.; Rockingham Exploration Company; Tar Heel Energy Corporation; and UCG Energy Corporation.

Inc.

'Burlington Industries, Inc. and Devco Enterprises,

6

Owens-Corning Fiberglas Corporation.

'Loisel Field, Iberia Parish, Louisiana; Chandeleur Sound Blk. 59, St. Bernard Parish, Louisiana; State Lease 849-S, offshore Port Aransas, Texas; Bolivar Point Area, Plaquemines Parish, Louisiana; Kawitt Area, Karnes and DeWitt Counties, Texas; West Mermentau Area, Acadia Parish, Louisiana; Southeast Avery Island, Iberia Parish, Louisiana; Big Point Field, St. Tammany Parish, Louisiana; North Hester Field, St. James Parish, Louisiana; Stephenson Point Area, offshore Galveston County, Texas; Southwest Gibson Area, Terrebonne Parish, Louisiana; North Freshwater Bayou Field, Vermilion Parish, Louisiana; South Gist Field, Newton County, Texas; East Hordes Creek Field, Goliad County, Texas; North Jefferson Island Field, Iberia Parish, Louisiana; and South Tomball Field, Harris County, Texas.

⚫ Similar authorizations were granted in El Paso Natural Gas Company, et al., Docket No. CP77-408, et al (December 21, 1978, 5 FERC ¶ 61,252); Colorado Interstate Gas Company, et al., Docket No. CP78-199 (November 22, 1978, 5 FERC 61,138); El Paso Natural Gas Company, et al, Docket No. CP74–126, et al (November 14, 1978, 5 FERC ¶ 61,112); and El Paso Natural Gas Company, et al., Docket No. CP77-604, et al. (February 13, 1978, 2 FERC 61,125).

'Part 284 of the Commission's Interim Regulations under the Natural Gas Policy Act (Section 311 (a)) would permit interstate pipelines to render certain transportation services contracted for after December 1, 1978, for periods up to two years without prior approval. Where such services would be rendered for a fixed period in excess of two years, a request for approval would be filed under Section 284.107.

10 Similar operations of National Gas Gathering Company were determined to be nonjurisdictional in Transcontinental Gas Pipe Line Corporation, 50 FPC 1811, 1827-28 (1973).

" Production is not yet ready to flow from some of the fields. Transportation has been delayed indefinitely from the Chandeleur Sound Blk. 59 Field, from the State Lease 849-S Field, and from the North Freshwater Bayou Field due to current commercial infeasibility of attachment. Transportation from the Big Point Field has been delayed indefinitely due to a State of Louisiana requirement which could compel an intrastate sale of the gas and a claim of prior dedication by Southern Natural Gas Company. The Southwest Gibson Area well has been plugged and abandoned, and United Gas Pipe Line Company was authorized to provide intermediate transportation from the North Hester Field in Docket No. CP78-293.

12 Initial Decision issued March 1, 1979, 6 FERC

¶ 63,046.

"Order No. 2, Docket No. RM75-25, mimeo pp.

12-13 (February 1, 1978, FERC Statutes and Regulations ¶30,005); Order No. 2-A, Docket No. RM75-25, mimeo p. 4 (June 23, 1978, FERC Statutes and Regulations ¶ 30,005).

On February 21, 1979, Colorado Interstate Gas Company (CIG) filed revised tariff sheets1 reflecting adjustments to three rate proceedings currently pending resolution before this Commission. Second Revised Sheet Nos. 7 and 8, proposed to be effective March 1, 1979, reflect a rate reduction in Docket No. RP78-51 of .76¢ per Mcf and a rate increase in Docket No. RP72-122 (PGA78–3) of .35¢ per Mcf. The rates in Docket Nos. RP78-51 and RP72-122 (PGA78–3), effective October 1 and October 2, 1978, respectively, are currently being collected subject to refund. The proposed adjustments would result in an annualized jurisdictional reduction in revenues collected subject to refund of approximately $1.3 million. Third Revised Sheet Nos. 7 and 8 proposed to be effective April 1, 1979, reflect a rate increase of .07¢ per Mcf to rates proposed in Docket No. RP79-1. The rates in this docket are currently under suspension until April 1, 1979, when they will be collected subject to refund. The proposed adjustment would result in an annual jurisdictional revenue increase of approximately $220,000.

Public notice of CIG's filing was issued on March 5, 1979. Colorado Public Utilities Commission, Public Service Company of Colorado, Western Slope Gas Company, and Cheyenne Light, Fuel and Power Company submitted comments in which they claimed that they are unable to determine whether the filing is in compliance with the Natural Gas Policy Act and the Rules and Regulations of the Commission. Therefore, they have requested that the Commission suspend the tariff sheets submitted in the instant filing and consolidate the proceeding with the pending proceedings in Docket Nos. RP72-122 (PGA78-3), RP78-51 and RP79-1.

The revised tariff sheets filed by CIG contain rates which are designed to reflect the termination of the Gas Search Program approved by the Federal Power Commission's order of January 7, 1974, 51 FPC 74, in Docket Nos. CP73-184 and CI73-485.

Under this order, CIG was permitted to transfer to CIG Exploration, Inc. (Exploration) certain gas producing properties. The Commission's authorization was also given for Exploration to sell the gas from the producing properties to CIG, and for CIG to flow-through such costs at area or nationwide rate levels (up to a base ceiling of 25¢ per Mcf) in conjunction with a revolving Gas Search Program. Under the provisions approved by the subject January 7, 1974 order, the Gas Search Program was scheduled to terminate on February 28, 1979. A joint Petition by CIG and Exploration to extend the program was denied by the Commission in an order dated December 28, 1978, 5 FERC ¶ 61,293, in Docket Nos. CP73-184 and CI73-485.

Termination of the Gas Search Program requires recomputations of the cost of gas underlying CIG's existing resale rates. CIG states that the revised tariff sheets reflect the repricing of gas produced from old wells under old leases' on a costof-service basis rather than on an area rate basis. The company also states that gas produced from new wells under old leases has been repriced to reflect NGPA rates rather than area rates. The proposed tariff sheets would supersede tariff sheets presently filed in Docket Nos. RP78-51, RP72-122 (PGA78-3), and RP79–1, and, therefore, any final acceptance should be subject to the outcome of these proceedings.

In addition, CIG and Exploration have filed joint certificate applications in Docket Nos. CP73-184 and CI73-485 requesting authorization to transfer to CIG the gas producing leases originally transferred to Exploration. CIG has also requested authorization to acquire the associated gas reserves, wells, and related production facilities. The Commission shall not take any action with respect to the certificate applications in this order. However, since the disposition of the certificate applications may have rate implications, acceptance of the revised tariff sheets should also be subject to