Administrative Law Judge Addresses FERC Rules on Establishing Economic Interest and Standing In an Oil Pipeline Rate Challenge

摘要

Carmen Cintron, Presiding Administrative Law Judge at FERC, issued a partial Initial Decision April 10 addressing a narrow question of parties’ “standing” with regard to Shell Pipeline Co. LP’s (IS14-106) initial uncommitted (or non-contract) rates for transportation of petroleum from Erath, Louisiana to Houma, Clovelly, and St. James, Louisiana. Shell had filed three related tariffs last December 10 to establish initial rates for petroleum transportation from Houston to Louisiana after reversing the flow on parts of its pipeline system (Houston to Houma System). Anadarko Petroleum Corp., ConocoPhillips Co., Marathon Oil Co. and Pioneer Natural Resources USA, Inc. filed a joint protest to the three tariff filings as members of the Liquids Shippers Group (Producers). The Commission accepted and suspended Shell’s three tariffs, effective 12/12/13, subject to refund, and established a hearing to determine whether Shell’s initial uncommitted rates are just and reasonable. ALJ Cintron’s finding last week considered whether the Producers have standing to protest the tariff rates in one of the cases, IS14-106.