Viosca Knoll Gathering Co. finds much to dislike about DestinPipeline’s plans for a lateral to serve the Main Pass area of theGulf of Mexico. In particular, Viosca Knoll said in protest atFERC, the Destin lateral would duplicate its own facilities onwhich capacity is available.

“Moreover, it is Viosca Knoll’s understanding that the proposedfacilities are but the first phase of a much larger plan by Destinto add to and extend the facilities proposed herein as part of aproject that would parallel Viosca Knoll’s system for some 45 milesalong the edge of the Continental Shelf.”

Destin is seeking authorization for a lateral to transport gasproduced from platforms at Main Pass blocks 279 and 281. The pipewould extend from the platforms to Destin’s Main Pass Block 260platform where it would be connected to Destin’s 36-inch mainline,which delivers gas to shore. The project would require about 14miles of pipe and other facilities and cost about $19 million.Viosca Knoll said its system is essentially parallel to the routeof the proposed lateral and passes near the platforms at Main Passblocks 279 and 281. “Given the proximity of the proposed facilitiesto Viosca Knoll’s system, the proposed facilities would gather gasthat could also be gathered in Viosca Knoll’s facilities, and forwhich Viosca Knoll has available capacity to transport that gas.”

Viosca Knoll charges Destin’s lateral is larger than necessaryto serve the two platforms, suggesting it is one piece of a largerproject. “The Commission should not permit Destin to circumventcertificate application requirements by proposing a limited portionof a much larger project under the prior notice procedures. Destinshould be required to propose its entire project and not piecemealits application so as to qualify for expedited procedures intendedfor minor projects.”

Viosca Knoll also protests Destin’s request for rolled-in ratesfor the new facilities “because they would provide a gatheringfunction, the costs of which should be unbundled from Destin’sexisting transmission rates. Roll-in of the proposed gatheringfacilities would give Destin an unfair competitive advantage overViosca Knoll and other potential gathering companies seeking toconnect gas reserves in or near the deep waters of the Gulf ofMexico and constitutes nothing more than discriminatorydiscounting.”

Joe Fisher, Houston

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