FERC APPROVES SETTLEMENT BETWEEN MAGELLAN PIPELINE AND FRONTIER OIL, WITHOUT ADDRESSING MARKET POWER ISSUES HANGING OVER THE PIPELINE

摘要

FERC, by letter order, last week approved a settlement between Magellan Pipeline Co., LP (OR10-6) and Frontier Oil and Refining Co. that will allow the approval of Magellan's application for market-based rates on its Mountain System. On July 21, the Commission Trial Staff filed initial comments opposing the certification of the settlement but on September 1 the Presiding Administrative Law Judge (ALJ) certified the settlement to the Commission. In response to the opposition of the Commission Trial Staff the ALJ, stated that the Commission has made clear that -the settlement rules clearly contemplate that the Commission may approve a settlement, despite the fact that Trial Staff has raised material issues of fact which the record is insufficient to resolve."