[Federal Register: December 19, 2002 (Volume 67, Number 244)]
[Notices]
[Page 77762-77763]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19de02-47]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket No. OR03-3-000]
Proteus Oil Pipeline Company, LLC; Notice of Petition for
Declaratory Order
December 13, 2002.
Take notice that on December 6, 2002, Proteus Oil Pipeline Company,
LLC (Proteus Company) filed in Docket No. OR03-3-000 a petition for
declaratory order, pursuant to Rule 207(a)(2) of the Commission's Rules
of Practice and Procedure, 18 CFR 385.207(a)(2).
Proteus Company requests that the Commission issue an expedited
decision on this Petition no later than the end of March 2003. Proteus
Company states that it is planning to construct the Proteus oil
pipeline system (Proteus System), a major crude oil pipeline designed
to transport the maximum volume of oil that is technologically feasible
with existing equipment, which will provide transportation for the
Mississippi Canyon and Atwater Valley areas of the deepwater Gulf of
Mexico to a receiving facility at South Pass Block 89 in the Outer
Continental Shelf. The Proteus System is anticipated to commence
[[Page 77763]]
service in 2005, and will serve areas of the deepwater Gulf of Mexico
that at this time have little or no available transportation capacity
on existing oil pipelines.
Proteus Company states that the Proteus System will be subject to
the nondiscrimination provisions of the Outer Continental Shelf Lands
Act (``the OCSLA), and Proteus Company seeks the requested declaratory
order to ensure that the Proteus System will not be subject to common-
carrier type pro rata allocation, but will rather be authorized to
function as a contract carrier, hold an open season, enter into long-
term transportation contracts reflecting contract carriage principles,
give those contracts precedence in allocating capacity, and contract
for capacity that remains available after the open season closes on a
first-come, first-served basis. Proteus Company maintains that the
potential of pro rata allocation will likely discourage production
development in the Mississippi Canyon and Atwater Valley areas, and
commitment on the Proteus System by prospective subscribers to
capacity, thereby increasing the risk of both the Proteus System and
shippers using it.
Accordingly, Proteus Company seeks the following by the end of
February 2003:
A Commission declaration that that the Proteus System will be
authorized to function as a contract carrier, hold an open season,
enter into long-term transportation contracts reflecting contract
carriage principles, give those contracts precedence in allocating
capacity, and contract for capacity that remains available after the
open season closes on a first-come, first-served basis.
Proteus Company requests that the Commission issue the requested
declaratory order by the end of March 2003, because (1) as part of
their planning for initial production when the Proteus System goes
online in 2005 (as currently scheduled), Proteus Company and the
shippers to be served by the Proteus System at start-up would like to
execute transportation agreements incorporating contract carriage
principles and be confident that those agreements are mutually binding
and enforceable--lack of resolution that the Proteus System can operate
on a contract carriage basis makes this impossible; and (2) in order
for the Proteus System to be fully utilized, Proteus Company must
obtain future transportation commitments from current and prospective
producers that are currently assessing whether they should pursue
development of oil field production opportunities in the Mississippi
Canyon and Atwater Valley areas, whether the Proteus System will be
able to meet their requirements for transportation of production, and
whether they must construct their own isolated pipelines to service
their production fields.
Any person desiring to be heard or to protest said filing should
file a motion to intervene or a protest with the Federal Energy
Regulatory Commission, 888 First Street, NE., Washington, DC 20426, in
accordance with sections 385.214 or 385.211 of the Commission's Rules
and Regulations. All such motions or protests must be filed on or
before January 10, 2003. Protests will be considered by the Commission
in determining the appropriate action to be taken, but will not serve
to make protestants parties to the proceedings. Any person wishing to
become a party must file a motion to intervene. This filing is
available for review at the Commission in the Public Reference Room or
may be viewed on the Commission's Web site at http://www.ferc.gov using
the ``FERRIS'' link. Enter the docket number excluding the last three
digits in the docket number field to access the document. For
Assistance, please contact FERC Online Support at
FERCOnlineSupport@ferc.gov or toll-free at (866) 208-3676, or TTY,
contact (202) 502-8659. Comments, protests and interventions may be
filed electronically via the Internet in lieu of paper. The Commission
strongly encourages electronic filings. See 18 CFR 385.2001(a)(1)(iii)
and the instructions on the Commission's web site under the ``e-
Filing'' link.
Linwood A. Watson, Jr.,
Deputy Secretary.
[FR Doc. 02-32015 Filed 12-18-02; 8:45 am]
BILLING CODE 6717-01-P