• Abstract and Figures
• Public Full-text

ARK @i~c)&ic5t-r. st hi^^. .I'*I 31; * TI ..$.:' sr *I .* .!MI. Arkansas Western Gas 1001 Sain Street Company Ju# 4 10 31 Ill P 0 Box 1288 '01 Fayetteville, Arkansas 72702-1288 A subsidiary of Southwestern Energy Company (501) 521-5400 FAX (501)521-0328 June 1,2001 Via Federal Express Overnight Delivery Ms. Diana Wilson Arkansas Public Service Commission 1000 Center Street Little Rock, AR 72201 RE: In the Matter of the Application of Arkansas Western Gas Company for a Certificate of Environmental Compatibility and Public Need to Construct, Operate, and Maintain a Certain Natural Gas Pipeline Dear Ms. Wilson: Attached please find the original and fourteen (14) copies of Arkansas Western Gas Company's Application for a Certificate of Environmental Compatibility and Public Need to Construct, Operate and Maintain a Certain Natural Gas Pipeline, along with a filing fee check in the amount of $500.00. Please return one file-marked copy of the Petition to me in the enclosed self-addressed, stamped envelope. Your assistance in this matter is appreciated. Yours truly, BQ!JEFFREY L. DANGEAU, General Counsel and Secretary JLD:mdm Enclosure ccJenc: All parties of record J3ti LI i; 33. $'\*I '0 I ARKANSAS PUBLIC SERVICE COMMISSION : 7 r -; :') IN THE MATTER OF THE APPLICATION 1 k vi WI. <- 1.2 OF ARKANSAS WESTERN GAS COMPANY ) FOR A CERTIFICATE OF ENVIRONMENTAL ) DOCKET NO.O/- /f[- COMPATIBILTY AND PUBLIC NEED TO ) CONSTRUCT, OPERATE, AND MAINTAIN ) A CERTAIN NATURAL GAS PIPELINE 1 APPL ICAT1 0 N EXHIBIT A System Map EXHIBIT B Proposed Line Location EXHIBIT C Environmental Impact Statement EXHIBIT D-1 Balance Sheet EXHIBIT D-2 Statement of Income EXHIBIT D-3 State ment of Su rplu s EXHIBIT D-4 Pro Forma Balance Sheet EXHIBIT E Summary of Costs EXHIBIT F Design and Construction Specifications EXHIBIT G Public Notice and Newspaper Map EXHIBIT H Applicant's Articles of Incorporation Already on File with the Commission and Incorporated by Reference ARKANSAS PUBLIC SERVICE COMMISSION IN THE MATTER OF THE APPLICATION ) OF ARKANSAS WESTERN GAS COMPANY ) FOR A CERTIFICATE OF ENVIRONMENTAL ) DOCKET NO. COMPATIBILTY AND PUBLIC NEED TO ) CONSTRUCT, OPERATE, AND MAINTAIN ) A CERTAIN NATURAL GAS PIPELINE ) AP PL I CAT10 N Arkansas Western Gas Company (“Applicant”) hereby requests that the Arkansas Public Service Commission (“Commission”) issue a Certificate of Environmental Compatibility and Public Need, pursuant to Ark. Code Ann. §23-18-501 et. seq. allowing the Applicant to construct, operate, and maintain a natural gas pipeline in Washington County, Arkansas and in support of its request states: I. Description of Applicant The name and address of the Applicant are: Arkansas Western Gas Company P.O. Box 1288 Fayetteville, Arkansas 72702 Applicant is duly incorporated under the laws of the State of Arkansas, a copy of Applicant’s Articles of Incorporation, including all amendments thereto, is presently on file with the Arkansas Public Service Commission, and said Articles are hereby made part of this Application as Exhibit “H” Applicant is engaged in the transmission and distribution of natural gas at retail in Franklin, Washington, Madison, Crawford, Johnson, Benton, Carroll, Boone, Logan -2- Marion, Stone, Izard, Baxter, Clay, Green, Craighead, Mississippi, and Crittenden Counties, Arkansas. II. Proposed Facility Applicant proposes to construct and operate a natural gas pipeline consisting of approximately 13,700 feet of 838” wrapped pipe as part of its transmission system. The primary route for the proposed 848” pipeline will begin at a point approximately 200 feet east and 1,340 feet north of the Southwest corner of Section 15, Township 17 North, Range 30 West (the Applicant’s Trout Farm Valve), then extend generally in a northeast direction to a point approximately 1,650 feet west and 300 feet north of the Southeast corner of Section 11, Township 17 North, Range 30 West (the Applicant’s Midway Valve) all in Washington County, Arkansas. The proposed pipeline will parallel the Applicant’s existing pipeline where possible. Due to growth and development and also to minimize impact on established residential areas, new rights of way will be required for approximately 86% of the route. The alternate route, as shown on Exhibit “B” will have the same points of beginning and ending as the primary route, but is located generally to the south of the primary route along existing right of way. The alternate route was rejected because it would require the disturbance of 52 well established homes and yards and would be more expensive and time consuming. Attached hereto as Exhibit “A” is a map of the Company’s system showing the proposed facilities in relationship to rest of the Company’s system. Attached hereto and -3- marked Exhibit “B” is a detailed map of the proposed line, including primary and alternate routes, to which reference is made for the exact location of said line. 111. Public Need and Reasons for Construction The present and future public convenience and necessity require construction and operation of the proposed pipeline for the following reasons: 1. To allow Applicant to meet existing and future growth of the northwest Arkansas area which is placing ever-increasing load requirements on the Applicant’s transmission system. 2. To allow Applicant to receive gas purchased from off system suppliers. 3. To provide reliable access to interstate gas markets to supplement the Applicant’s System Supply and to increase competitive options for transportation to Applicant’s system. The proposed pipeline will enable Applicant to receive more gas through its Harmon interconnection with Reliant Energy’s line OM-I . IV. Estimated Cost The estimated overall cost of the proposed facility is $443,750. A summary of the estimated cost of the proposed construction is attached hereto and made part hereof as Exhibit “E.” -4- V. Financing The source of funds for such construction shall be the Applicant’s general cash flow from operations. The Applicant has identified no other reasonable financing alternatives due to the relatively small cost of the project in relation to the Applicant’s cash flow and capital structure. VI. Specifications and Pipeline Safety Compliance The proposed line will be constructed and tested in accordance with the Arkansas Pipeline Code to qualify it to operate at 720 PSlG working pressure in a Class 3 location. An outline of the design and construction specifications for this project is attached hereto and made part hereof as Exhibit “F”. VII. Materials and Labor Applicant proposes to furnish the pipe and other materials for this project. The labor required, including the ditching, backfilling, laying and welding will be done by a competent contractor to be selected. Contractors have not yet been selected, nor has the material been purchased. There will be no affiliation between the Applicant and other parties to construction contracts or materials contracts. VIII. Construction Schedule Applicant desires to begin construction of the proposed pipeline in August 2001. Construction should be completed within 60 days thereafter. -5- IX. Gas Supply The source of supply for the line will be the Applicant’s general gas supply and gas supplied by Shippers using the line for transportation. X. Environmental Impact The Applicant has made a study of the probable environmental impact of the facility. In the Applicant’s opinion, the facility will not have any substantial adverse environmental impact. Attached hereto and made part hereof as Exhibit “C”,is the Applicant’s detailed statement of environmental impact and discussion of alternate routes. XI. Economic Impact The economic or financial impact of the construction and operation of the facility on the Applicant and the local community where the facility is to be constructed will be minimal due to the size of the proposed facility in relation to the size of the Applicant and economy of the communities. Gas delivered through this facility will be sold or transported under the terms and conditions of the Applicant’s rate schedules effective from time to time pursuant to the authority of the Commission. Energy costs of the customer will be affected by the construction of the facility to the extent that the facility adds to the rate base of the Applicant. The proposed pipeline also has the potential for a favorable impact on gas costs because it will improve competitive options for delivery of gas supplies to Applicant’s system. -6- XII. Financial Information In compliance with Rule 7.08.(a) of the Commission’s Rules of Practice and Procedure, the following financial exhibits are attached hereto and made part hereof: D-I Balance Sheet D-2 Statement of Income D-3 Statement of Surplus D-4 Pro Forma Balance Sheet The estimated useful life of the proposed pipeline is in excess of forty years. Applicant believes the pipeline has no reuse potential and that the cost of removal is likely to exceed its salvage value at the end of its useful life. XIII. Additional Permits Applicant will not require any additional franchises or permits from municipalities, counties, or other authorities in connection with the proposed construction except as described in this paragraph. Necessary street crossing permits will be acquired from the City of Springdale, and hydrostatic water discharge permits will be acquired from the Arkansas Department of Environmental Quality in the normal course of construction. Right of way will be purchased from property owners along the proposed route. XIV. Public Notice Attached hereto and marked Exhibit “G”is a copy of the map and public notice published pursuant to Rule 7.07(b)(2) of the Commission’s Rules of Practice and Procedure. Public officials and property owners will be notified of this application and/or provided copies of the application as required by Ark.

Load more

  32

Copy Link