KBPL applies to operate Kenai gas lines

Following an August settlement agreement to allow consolidated operation of four Cook Inlet natural gas pipelines (see story in Sept. 14 issue), the pipelines have applied to the Regulatory Commission of Alaska seeking authorization for consolidation of certificates.

Kenai Beluga Pipeline LLC, KBPL, a newly formed limited liability company owned indirectly by Hilcorp Alaska, will operate the lines, all of which - Beluga Pipeline Co., Kenai Kachemak Pipeline LLC, Cook Inlet Gas Gathering System and Kenai Nikiski Pipeline - are owned directly or indirectly by Hilcorp:

The current filing is to transfer certificates of public convenience and necessity, CPCN, Nos. 448, 711, 668 and 689 into a single CPCN for the four Cook Inlet natural gas pipelines.

The applicants have requested that KBPL operate under amended CPCN No. 668 and have requested temporary authority to allow KBPL to begin operation of the consolidated system by Nov. 1. The settlement agreement requests that KBPL operate the consolidated system under a single postage stamp rate of 29.12 cents per thousand cubic feet for shipments between any two points on the consolidated system. The parties reached that rate by spreading roughly $17.5 million in annual costs of service over 2013 volumes of 60 billion cubic feet.

The commission said it had not assessed the application’s completeness but may make that determination by Oct. 3.

- Kristen Nelson