EQT Gathering LLC's request for a limited certificate to provide jurisdictional compression service through the nonjurisdictional Derry Compressor Station planned for Westmoreland County, PA, has been given the green light by FERC. Commissioners also approved a waiver of all filing and reporting requirements that would otherwise apply as a result of EQT providing interstate service.

EQT Gathering proposes to build and operate the Derry facilities to compress natural gas gathered in southwestern Pennsylvania and thereby increase capacity and operational reliability of its gathering system in the Marcellus Shale region (see Shale DailyJuly 19). The Derry facilities would consist of a compressor station with three compressor engines totaling 14,205 hp of compression and associated facilities.

Initially, EQT said the Derry facilities would receive locally produced pipeline-quality unprocessed gas from its Three Rivers gathering system. However, it now expects the Derry facilities would receive locally produced gas from other EQT facilities in the future. A 12-inch diameter line running 3.5 miles would connect the Three Rivers gathering system to the Derry facilities, according to EQT Gathering.

In addition to proposing to build-out its gathering system, EQT is seeking to obtain a limited quantity of natural gas at the Derry facilities from a new interconnect with the Peoples Natural Gas Co.'s pipeline (TP-371) in Westmoreland County.

Specifically, Equitrans, which is owned by EQT, has asked the Federal Energy Regulatory Commission for authorization to lease and operate a portion of Peoples' system, referred to by Equitrans as the Allegheny Valley Connector (AVC), which includes TP-371. The request still is pending before the Commission. The AVC is in the Marcellus Shale.

"This proposal provides benefits and will serve the continuing development of the Marcellus Shale formation in Pennsylvania," the FERC order stated [CP13-520]. "EQT anticipates further expansion of its gathering system and the limited use of the Derry facilities to provide jurisdictional service [that] could avoid the need for duplicative additional new construction in the area...

"The public interest would not be served by subjecting EQT to all the filing and reporting requirements, and any annual charges applicable to interstate pipeline companies. Accordingly, those requirements are waived," the Commission added.

 EQT proposes to charge a monthly compression rate of $303,360 as the initial rate for the 50,000 Dth/d that the Derry facilities will receive from the TP-371 line for jurisdictional compression service, according to the order.