[Federal Register Volume 63, Number 178 (Tuesday, September 15, 1998)]
[Notices]
[Pages 49349-49350]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-24676]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket No. OR98-24-000]
Tesoro Alaska Petroleum Company v. Amerada Hess Pipeline
Corporation, ARCO Transportation Alaska, Inc., BP Pipelines (Alaska)
Inc., Exxon Pipeline Company, Mobil Alaska Pipeline Company, Phillips
Alaska Pipeline Corporation, and Unocal Pipeline Company; Notice of
Complaint
September 9, 1998.
Take notice that on August 20, 1998, pursuant to sections 1(5),
3(1), 9, 13(1) and 15(1) of the Interstate Commerce Act (ICA), 49
U.S.C. App. Secs. 1(5), 3(1), 9, 13(1) and 15(1), Sections 42.06.370,
42.06.380, and 42.06.410 of the Alaska Pipeline Act the regulations of
the Commission under 18 CFR part 343, and the regulations of the Alaska
Public Utilities Commission (APUC), 3 AAC Secs. 48.100, 48.130, Tesoro
Alaska Petroleum Company (Tesoro) tendered for filing a complaint and
request for investigation concerning the current Trans Alaska Pipeline
System (TAPS) Quality Bank methodology and, in particular, the
lawfulness of the values prescribed for naphtha and vacuum gas oil
under such methodology.
Tesoro requests initiation of formal proceedings, including
concurrent trail type hearings before the FERC and APUC, to investigate
the lawfulness of the values assigned to the naphtha and VGO cuts under
the current methodology.
Tesoro states that it is a shipper on TAPS and owns and operates a
refinery in Kenai, Alaska. Tesoro competes with other TAPS shippers,
particularly MAPCO and Petro Star, in the marketing and sale of refined
products within Alaska and elsewhere. To the extent, therefore, the
Quality Bank payments for the refinery return streams and other
[[Page 49350]]
heavy streams are artificially suppressed, Tesoro asserts that MAPCO,
Petro Star and other shippers are subsidized and Tesoro is
competitively disadvantaged. For these reasons, Tesoro states that it
has since 1988 actively participated in the Quality Bank proceedings,
including those in Docket No. OR96-14, to ensure that the various TAPS
streams, including the refinery return streams, are accurately valued.
On May 29, 1998, the presiding judge issued an initial decision in
Docket No. OR96-14 (83 FERC para. 63,011) dismissing the Exxon Company,
U.S.A. complaint at issue there, and held that Tesoro's issues were
thereby rendered moot, but that Tesoro was free to file its own
complaint.
Based upon the testimony and exhibits of Tesoro's witness in Docket
No. OR96-14, Tesoro now seeks to modify the valuation procedure for
naphtha by: (i) eliminating single market pricing in favor of using
both West Coast prices; (ii) valuing West Coast naphtha as a function
of the price of gasoline on the West Coast in recognition of the
primary use of naphtha on the West Coast; and (iii) adjusting the
values of the naphtha cuts of the various TAPS streams to account for
differences in N + A content. Tesoro further proposes that the value of
VGO by market-appropriate and, to that end, requests adoption of the
OPIS quote for West Coast high-sulfur VGO for West Cost VGO.
Finally, Tesoro suggests that the Commission reinstate the
procedural schedule in Docket No. OR96-14, as such schedule existed
when the presiding judge terminated that proceeding and invited Tesoro
to file its own compliant. Tesoro states that the answering evidence
filed in Docket No. OR96-14 could be incorporated as part of the record
in this complaint proceeding, and a new date set for the filing of
rebuttal evidence, with a hearing date no later than 45 days
thereafter. Tesoro asserts this avoids having to start from ``square
one''.
Any person desiring to be heard or to protest said complaint should
file a motion to intervene or a protest with the Federal Energy
Regulatory Commission, 888 First Street, N.W., Washington, D.C. 20426,
in accordance with Rules 214 and 211 of the Commission's Rules of
Practice and Procedure 18 CFR 385.214, 385.211. All such motions or
protests should be filed on or before September 21, 1998. 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
proceeding. Any person wishing to become a party must file a motion to
intervene. Copies of this filing are on file with the Commission and
are available for public inspection. Answers to this complaint shall be
due on or before September 21, 1998.
David P. Boergers,
Secretary.
[FR Doc. 98-24676 Filed 9-14-98; 8:45 am]
BILLING CODE 6717-01-M
