Texas Gas Transmission, LLC Northern Supply Access Project Docket No
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610 West 2nd Street P.O. Box 20008 Owensboro, KY 42304-0008 270/926-8686 April 7, 2017 Ms. Kimberly D. Bose, Secretary Federal Energy Regulatory Commission 888 First Street, N.E. Washington, D.C. 20426 Re: Texas Gas Transmission, LLC Northern Supply Access Project Docket No. CP15-513-000 Request for Extension of Time to Make Certain Project Facilities Available for Service Dear Ms. Bose: On March 24, 2016, the Federal Energy Regulatory Commission (“Commission”) issued a certificate of public convenience and necessity to Texas Gas Transmission, LLC (“Texas Gas”) authorizing Texas Gas to construct and operate the Northern Supply Access Project (“Project”).1 The Certificate Order authorized Texas Gas to construct a new compressor station in Hamilton County, Ohio and make modifications at eight existing compressor stations in, Indiana, Kentucky, Tennessee, Mississippi, and Louisiana in order to enable Texas Gas to provide an additional 384,000 million British thermal units (“MMBtu”) per day of firm transportation service primarily in a north- to-south direction on Texas Gas’s system while maintaining Texas Gas’s current ability to flow gas south to north. Among other things, the Commission conditioned the Certificate Order on Texas Gas “completing the authorized construction of the proposed facilities and making them available for service within two years of the date of this order.”2 The two years granted Texas Gas by the Commission in the Certificate Order will, therefore, expire March 24, 2018. Texas Gas has now constructed and placed in service most of the facilities approved in the Certificate Order. There are certain facilities that Texas Gas will not be able to construct and place in service by March 24, 2018. Texas Gas requests an extension of time of two years to construct and place in service certain Project facilities. Texas Gas has constructed and placed in service the facilities necessary to serve the customers with firm contracts supporting the Project effective March 2, 2017.3 When Texas Gas 1 Texas Gas Transmission, LLC, 154 FERC ¶ 61,235 (2016) (“Certificate Order”). 2 Id. at Ordering Paragraph (B)(1). 3 In-Service Notification of Texas Gas Transmission, LLC, Docket No. CP15-513-000 (Mar. 2, 2017). The Commission authorized Texas Gas to place the Project facilities in service on March 1, 2017. Texas Gas Transmission, LLC, In- Service Approval, Docket No. CP15-513-000 (Mar. 1, 2017). Texas Gas Transmission, LLC Northern Supply Access Project Docket No. CP15-513-000 April 7, 2017 Page 2 filed its Application for the Project it explained that it had entered into precedent agreements with eight shippers to provide a total of up to 384,000 MMBtu per day of firm transportation service for the Project. In a Supplemental Filing filed on February 25, 2016, Texas Gas explained that one of the project shippers filed for bankruptcy and would not sign a firm transportation agreement.4 Texas Gas explained that it would continue to remarket the capacity. The Commission took note of the February 26 Supplemental Filing in its Certificate Order and explained that “[w]ith the loss of this shipper, Texas Gas has precedent agreements with seven shippers to provide a total of 284,000 MMBtu per day of firm transportation service.”5 While Texas Gas has continued to remarket the capacity, it has not yet signed a new contract for that capacity. The facilities for which Texas Gas is requesting an extension of time to construct and place in service are only necessary for the as-of-yet uncontracted-for capacity. Specifically, Texas Gas requests the Commission grant an extension of time to construct and place in service the following facilities: The additional Solar Taurus 70 compressor unit capable of providing 9,688-hp at the new Crosby (formerly Harrison) Compressor Station; Gas cooling equipment at the Dillsboro Compressor Station; A replacement Solar Taurus 70 compressor unit capable of providing 9,699-hp at the Bastrop Compressor Station; Reclassify existing reciprocating compressors No. 2 through No. 5 as operational spares to be used as back-up units at the Bastrop Compressor Station (a total of 7,040 hp); and Yard and station piping modifications to provide for bi-directional flow capabilities at the Clarksdale Compressor Station. Texas Gas continues to remarket the capacity and will update the Commission when it has a shipper(s) signed for that capacity. Given the lead time in ordering materials and constructing these facilities, even if Texas Gas were to sign an agreement with a shipper for the unsubscribed capacity in short order, Texas Gas would still need an extension of time to make these facilities available for service by March 24, 2018, as required by the Certificate Order. 4 Supplemental Information – Revised Exhibit I of Texas Gas Transmission, LLC, Docket No. CP15-513-000 (Feb. 25, 2016). 5 Certificate Order at P 8. Texas Gas Transmission, LLC Northern Supply Access Project Docket No. CP15-513-000 April 7, 2017 Page 3 Texas Gas requests an extension of time of two years until March 24, 2020 to make the facilities described above available for service. Should you have any questions regarding this submittal, please feel free to contact me at (270) 688-6825 or Juan Eligio Jr. at (713) 479-3480. Sincerely, TEXAS GAS TRANSMISSION, LLC Kathy D. Fort Manager, Certificates & Tariff cc: Magdalene Suter (FERC) Alisa M. Lykens (FERC) .