North Dakota Pipeline Tariff Establishing Volume Discounted Rates and Rates Waiver Denied By FERC; Status of Tankage Service at Minot, North Dakota is Questioned

摘要

On 11/30/15 FERC rejected requests of North Dakota Pipeline Co. ( IS16-28) (1) for approval of a tariff, filed in October, that establishes and governs a new delivery point at Minot (Ward County), North Dakota, with both regular rates and rates that North Dakota Pipeline characterizes as “volume discounted rates” from all upstream receipt points; and (2) for the volume discounted rates relief from section 4 of the Interstate Commerce Act (ICA), which generally prohibits charging a greater amount for a shorter distance than for a longer distance over the same line or route in the same direction. According to the Commission, North Dakota Pipeline has filed initial rates for what appears to be two separate services but has not explained how these services would work. Among other failures, the Commission also indicated that the initial filing and subsequent pleadings raise further questions about the jurisdictional status of the merchant tankage that the pipeline provides at Minot.