Fight Erupts in Seaway Proceedings Between Oil Pipelines/Marketers/Processors and FERC Trial Staff Over the Sanctity of Committed Contracts/Rates and the Timing of Petitions for Declaratory Order

摘要

FERC Trial Staff took it upon itself to blast a Petition for Declaratory Order of Seaway Crude Pipeline Company, LLC (OR13-10) last month (12/10/12) and other supporters of Seaway blasted Trial Staff. Seaway’s petition was filed only in Docket No. OR13-10, but portions of Staff’s testimony in Docket No. IS12-226 were attached to the petition. The IS12-226 proceedings were established to determine just and reasonable rates for Seaway’s crude oil transportation.1 Staff alleged that Seaway is making an effort to circumvent the proceeding in Docket IS12-226 in the context of its petitioner request for a Commission declaration that “Seaway’s committed rates are not subject to challenge in the rate proceeding, or any other cost-of-service proceeding that may be initiated during the term of the Seaway contracts.” The Commission should deny the petition, Staff argued. Common carrier oil pipelines, on the other hand, are complaining that Staff is ignoring agreed-upon committed rates in favor of Staff-constructed “cost-based rates” for committed shippers.