FERC Rejects Higher Inventory Fee Sought by Mars Oil Pipeline, Citing Jurisdictional Nature of the Charge and Incomplete Application

摘要

On the last business day of February (2/27/15), FERC rejected an attempt by Mars Oil Pipeline Co. (IS15-151) to increase its inventory management fee penalty from 45 cents per barrel to 60 cents per barrel. Pursuant to its tariff, Mars requires that shippers contribute petroleum inventory for use as linefill. Each shipper’s inventory requirement is determined based upon the shipper’s pro rata share of the pipeline’s total monthly receipts. Mars’ tariff permits assessment of an inventory management fee upon any shipper with a closing monthly inventory balance of: (a) 30% greater than its inventory requirement; or (b) 10% less than its inventory requirement.