IN THE MATTER OF UNITED GAS PIPE LINE COMPANY Application under Section 7 (b) of the Natural Gas Act for Permission for and Approval of the Removal and Relocation of Natural Gas Pipe Line Facilities as an Abandonment of Facilities G-216 (Decided January 20, 1942) Syllabus 1. In a proceeding under section 7 (b) of the Natural Gas Act on an application for permission to abandon facilities, applicant, United Gas Pipe Line Company, found to be engaged in the transportation of natural gas in interstate commerce through its integrated pipe line system which traverses several States and in selling a very substantial portion of such gas in interstate commerce for resale for ultimate public consumption for domestic, commercial, industrial, and other use, and, therefore, held to be a natural-gas company within the meaning of the Act. P. 7. 2. Facilities utilized by applicant in interstate transportation of natural gas for delivery at city gates and sale of such gas under the provisions of existing rate schedules to a distributing company for resale are facilities subject to the jurisdiction of the Commission and their proposed removal would constitute an abandonment under section 7 (b) of the Natural Gas Act. P. 8. 3. In order to justify the granting of permission to abandon facilities, the Commission must have before it evidence either, (a) "that the available supply of natural gas is depleted to the extent that the continuance of service is unwarranted," or (b) "that the present or future public convenience or necessity permit such abandonment." P. 8. 4. Since it has not been shown that the available supply has been depleted, sufficient facts must be presented to support a finding "that the present or future public convenience or necessity permit such abandonment." P. 8. 5. The expiration or termination of a contract to supply natural gas to a distributor by the distributor does not constitute grounds justifying abandonment of facilities. P. 9. 6. Whether the applicant and the distributor are able, or are unable, to reach an agreement as to their differences on the "question of how long this service will be continued" pending the distributor's connecting with a new supply of natural gas expected to be available sometime after November 15, 1941, is not an issue to be determined in the present proceeding. P. 10. 3 7. Applicant's difficulty in obtaining its requirements of pipe for use in other parts of its interconnected system do not, in the light of the present record, justify an abandonment of facilities essential to rendering natural gas service at city gates in order that such facilities may be removed and utilized elsewhere in its interconnected system. P. 10. 8. Where facilities have been, by their actual use, dedicated to public service over a long period of years and have met the requirements of the communities served, neither the present nor the future public convenience and necessity would permit their abandonment until a showing is made that such use is no longer essential and the facilities are no longer utilized or that the available supply of natural gas is depleted to the extent that continuance of service is unwarranted. P. 10. C. Huffman Lewis and R. A. Shepherd for United Gas Pipe Line Company. George B. Pidot and J. W. Williams for Peoples Gas Company. BY THE COMMISSION: OPINION AND FINDINGS 2 This is a proceeding under section 7 (b)1 of the Natural Gas Act. It had its inception with the filing on September 24, 1941, of an application by United Gas Pipe Line Company for permission for and approval of the removal and relocation of certain natural gas pipe line facilities situated in and near Port Arthur, Port Neches and Nederland, Texas. Upon petition of the Railroad Commission of Texas to participate in the hearing to be had on the said application and that such hearing be held at Port Arthur, Texas, the Commission entered its order on September 30, 1941, setting this matter for public hearing on October 21, 1941, at Port Arthur, Texas, and in said order also provided for the participation of the said Railroad Commission of Texas and other interested state commissions in the said hearing, under section 67.4 of the Provisional Rules of Practice and Regulations under the Natural Gas Act. Pursuant to the provisions of said order, and after appropriate notice had been given, a public hearing was had on October 21, 1941, at which hearing United presented its evidence and Peoples Gas Company, the gas distributing company at Port Arthur, Port Neches and Nederland, Texas, and environs submitted a petition for leave to intervene and was permitted to participate in the hearing subject to the action of the Commission upon said petition for intervention. By order, subsequently entered by the 115 U. S. C. 717f; 52 Stat. 824. 2 Hereinafter sometimes referred to as "United." Hereinafter sometimes referred to as "Peoples." |