Lamar County Expansion Project DOCKET NO. CP19-___-000
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UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION Lamar County Expansion Project DOCKET NO. CP19-___-000 Application Exhibit F – Location of Facilities Exhibit J – Federal Authorizations Exhibit K – Cost of Facilities Exhibit N – Revenues - Expenses – Income Exhibit P – Tariff Volume I Public Information September 2019 UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION ) Gulf South Pipeline Company, LP ) CP19-___-000 ) ABBREVIATED APPLICATION OF GULF SOUTH PIPELINE COMPANY, LP FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY AND RELATED AUTHORIZATIONS Pursuant to Sections 7(c) and 7(e) of the Natural Gas Act (“NGA”), 15 U.S.C. § 717f(c), § 717f(e), and Part 157, of the regulations of the Federal Energy Regulatory Commission (“Commission” or “FERC”), 18 C.F.R. Part 157, Gulf South Pipeline Company, LP (“Gulf South”) submits this abbreviated application for a certificate of public convenience and necessity (“Application”) seeking authority for Gulf South to construct, operate, and maintain (i) an approximately 3.4 mile 20-inch diameter natural gas delivery lateral, including appurtenant, auxiliary facilities, (ii) a new delivery meter station, and (iii) a new mainline compressor station with approximately 5,000 horsepower (“HP”) (referred to herein as the “Black Creek Compressor Station”) and other associated auxiliary appurtenant buildings and facilities, all located in Lamar and Forrest counties, Mississippi, (“Lamar County Expansion Project” or “Project”). Gulf South also requests as part of its Application that the Commission approve the refunctionalization of its existing Hattiesburg 20-inch pipeline from storage to transmission in order to provide supplemental transportation service. The proposed Lamar County Expansion Project will allow Gulf South to provide up to 200,000 dekatherm per day (“Dth/d”) of new firm transportation service to Cooperative Energy (“Cooperative”) primarily to serve Cooperative’s proposed new 550 megawatt combined cycle gas turbine generation facility (the “Morrow Repower Project” or “Morrow Power Station”) to be located at Cooperative’s existing Morrow coal-fired power plant site (“Plant Morrow”) in Lamar County, near Purvis, Mississippi. Cooperative’s Morrow Repower Project will utilize high-efficiency combined cycle gas turbines to replace older coal-fired units as well as new emissions control technology that will further lower emissions. The Lamar County Expansion Project will also allow for transportation services to Cooperative’s existing Moselle Power Plant and Benndale Power Plant. Subject to receiving all required authorizations and approvals, Gulf South proposes to begin construction of the Project in the fourth quarter of 2020 and place the Project in-service January 1, 2022. Gulf South requests that the Commission complete its review of the Application and grant the requested authorizations in this Application on or before September 17, 2020. Receipt of an order by September 17, 2020, will allow Gulf South to meet the in- service requirements of Cooperative, the customer supporting the Project. Gulf South’s commitment to meet the January 1, 2022 in-service date is a critical component of its transportation agreement with Cooperative. Gulf South will devote the resources necessary to respond promptly to any requests for additional data or information in order to assist the Commission in its review of this Application. In support of this abbreviated Application, Gulf South submits the following: I. APPLICANT The exact name of Gulf South is Gulf South Pipeline Company, LP, and its principal place of business is 9 Greenway Plaza, Suite 2800, Houston, Texas 77046. Gulf South is a limited partnership organized and existing under the laws of the state of Delaware and is duly authorized to do business in the states of Texas, Louisiana, Mississippi, Alabama, and Florida. 2 Gulf South is a natural gas company within the meaning of the NGA. It currently owns and operates approximately 7,200 miles of pipeline facilities extending from south and east Texas through Louisiana, Mississippi, southern Alabama, and western Florida. Gulf South has numerous interconnects with other interstate and intrastate pipelines and storage facilities, which allow it to serve various on-system and off-system markets. Gulf South is an open-access pipeline company that provides transportation and storage services pursuant to Part 284 of the Commission’s regulations. The names, titles, and mailing addresses of the persons to whom communications and correspondence regarding this filing should be addressed are: Michael E. McMahon A. Gregory Junge Senior Vice President and General Counsel Hogan Lovells US LLP J. Kyle Stephens Columbia Square Vice President, Regulatory Affairs 555 Thirteenth Street, NW Juan Eligio Jr. Washington, D. C. 20004 Supervisor, Regulatory Affairs Phone: (202) 637-6642 Payton Barrientos Fax: (202) 637-5910 Senior Regulatory Analyst [email protected] Gulf South Pipeline Company, LP 9 Greenway Plaza, Suite 2800 Houston, Texas 77046 Phone: (713) 479-3480 Fax: (713) 479-1818 [email protected] [email protected] [email protected] [email protected] Each of these persons is designated to receive service in accordance with 18 C.F.R. § 385.203(b)(3). Gulf South requests the Commission to place these persons on the official service list for this proceeding pursuant to 18 C.F.R. § 385.2010. Gulf South requests that the Commission waive Rule 203(b)(3) to allow designated service to each of these persons. 3 II. OPEN SEASON & PRECEDENT AGREEMENT Open Season In accordance with Section 6.20[7] of the General Terms and Conditions (“GT&C”), Gulf South reserved the available capacity pursuant to a notice dated February 1, 2019. Gulf South proceeded with the Open Season prior to executing any binding commitments, with a target to have the Lamar County Expansion Project ready for service as early as January 1, 2022. In accordance with Section 6.24 of the GT&C of its FERC Gas Tariff, Gulf South conducted the binding Open Season from Monday, May 20, 2019 through Friday, May 24, 2019 for the Lamar County Expansion Project, which included the following: 200,000 Dth/d of capacity with primary receipts in the Perryville, Louisiana area and Petal, Mississippi area, and primary deliveries in the McComb/Baxterville/Petal area (Available Capacity); and 200,000 Dth/d of capacity from facilities which includes a new pipeline lateral extending from Gulf South’s Index 299, compression located on Index 299 and new delivery meter. Cooperative was the only shipper to submit a conforming binding bid and requested both new and existing transportation capacity to serve its new Morrow Power Station as well as its existing Moselle Power Plant and Benndale Power Plant. Gulf South and Cooperative entered into a precedent agreement (“Precedent Agreement”) for this Project. Precedent Agreement If the Lamar County Expansion Project is approved by the Commission, Cooperative will execute two conforming service agreements, one under Rate Schedule Firm Transportation Service (“FTS”) for 200,000 Dth/d and the other under Rate Schedule Firm Lateral Service (“FLS”) for 200,000 Dth/d, as described in more detail below. 4 1. FTS Service Agreement The FTS Service Agreement will have a term of twenty (20) years and will be placed in- service on January 1, 2022. The contract will provide Cooperative with access to various eligible primary receipt points as well as existing supplemental receipt points on Gulf South’s existing Legacy System for a discounted rate. The Precedent Agreement states Gulf South will provide the proposed service under its Rate Schedule FTS to allow Cooperative to transport natural gas supplies from the Perryville Transportation Point and the Petal Storage Complex, for delivery primarily to the interconnect between the proposed new delivery lateral and the Legacy System located in the station yard of the proposed Black Creek Compressor Station in addition to Cooperative’s existing Moselle Power Plant and Benndale Power Plant. Transportation will be provided by means of an executed, conforming FTS service agreement and in accordance with Gulf South’s existing Rate Schedule FTS, and FERC Gas Tariff. No new tariff provisions are required to facilitate the FTS service on the Project. 2. FLS Service Agreement The FLS Service Agreement will have a term of twenty (20) years and will be placed in- service on January 1, 2022. The Precedent Agreement states Gulf South will provide the proposed service under its Rate Schedule FLS at a discounted rate and Cooperative will transport a maximum of 200,000 Dth/d of natural gas supplies from the interconnect between the proposed new delivery lateral and the Legacy System located in the station yard of the proposed Black Creek Compressor Station for delivery to the Morrow Power Station. Transportation will be provided by means of an executed, conforming FLS service agreement and in accordance with Gulf South’s proposed Rate Schedule FLS and FERC Gas Tariff. 5 On September 3, 2019, in Docket RP19-1539-000, Gulf South filed with the Commission to add new Rate Schedules FLS and Interruptible Lateral Service (“ILS”) to its Tariff. Service under Rate Schedules FLS and ILS would provide additional flexibility on the Gulf South system and is intended to be utilized to provide transportation service on new laterals built for the benefit of one or a limited number of customers. Gulf South requested