Judge For U.S. Regulator Strikes Committed Rates On Seaway Pipeline

Posted by Joseph R. Fonseca
Friday, May 09, 2014

 

A Federal Energy Regulatory Commission judge annulled committed shipper rates on the Cushing-to-Texas Seaway pipeline on Friday, despite objections from energy companies who say it could jeopardize billions in infrastructure investment.

Administrative law Judge Karen Johnson upheld a ruling she made last September, saying the contracts that Seaway Crude Oil Pipeline Company LLC negotiated with committed shippers must be "disturbed" because of the "likelihood that overall rates would be unjust and unreasonable."

The case arose from motions filed by oil companies against uncommitted shipper rates on the 400,000 barrels-per-day pipeline, which gives U.S. Gulf Coast refiners access to Canadian heavy crude and American oil.

The federal regulator had struck the judge's initial decision in March and remanded it to her review, saying her arguments misconstrued long-held commission policy.

The commission honors so-called committed shipper rates, which midstream companies enter with long-term shippers in order to finance their costly projects. It reviews the more expensive uncommitted rates on inter-state pipelines.

Enterprise Products Partners and Enbridge Inc. , who share ownership of Seaway Crude Oil Pipeline Company, reversed the pipeline in 2012. They charge uncommitted shippers $3.82 per barrel for light crude and $4.32 for heavy grades for space on the line, according to regulatory filings.

The two companies are expected to start service within the next month on a twin pipeline that will double Seaway's capacity to 850,000 bpd. (Reporting by Selam Gebrekidan; Editing by Grant McCool)

Maritime Reporter November 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

NASSCO Cuts Steel on APT "ECO Tanker"

General Dynamics NASSCO started construction of another ship in its commercial shipbuilding backlog, starting construction of a second “ECO” tanker to be built

Multraship Buys Three More Tugboats from Damen

Multraship and Damen Shipyards Group agreed on three new ASD (Azimuth Stern Drive) Tugs, all for delivery to Multraship in 2015. After delivery in Vietnam, scheduled

QGEP to Acquire FPSO from Teekay

Teekay Offshore Partners L.P. has entered into an agreement with a consortium led by Queiroz Galvão Exploração e Produção SA (QGEP) to provide a floating production,

News

US Shippers, West Coast Dockworkers Union Resume Contract Talks

Negotiators for shipping lines and terminal operators at 29 U.S. West Coast ports resumed contract talks with the union for dockworkers on Thursday, as cargo backups continued at the ports,

USCG Says Unaffected by Cuba Policy Changes

The U.S. Coast Guard (USCG) issued a statement today stating that the United States’ Cuba policy change will not impact its missions annd operations. “Coast Guard

Report: Dire Conditions in Indian Shipbreaking Yards

Report by Indian research institute reveals poor enforcement of occupational health and safety provisions   The working and living conditions at the shipbreaking yards of Alang,

Logistics

US Shippers, West Coast Dockworkers Union Resume Contract Talks

Negotiators for shipping lines and terminal operators at 29 U.S. West Coast ports resumed contract talks with the union for dockworkers on Thursday, as cargo backups continued at the ports,

Great Lakes Coal Trade Slows in November

Coal shipments on the Great Lakes totaled 2.6 million tons in November, a decrease of 3 percent from a year ago, as shipments were affected by weather-related delays,

Hoists Facilitate Offshore Crane Repairs

When the diesel engine of a deck crane failed, it caused major handling problems for an offshore platform operating in the Dutch sector of the southern North Sea,

 
 
Maritime Contracts Navigation Offshore Oil Pipelines Port Authority Salvage Ship Electronics Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2002 sec (5 req/sec)