Unocal’s TAPS exit proves difficult

Unocal Pipeline Co. first informed state utility regulators on June 28, 2012, that it planned to sell its small stake in the trans-Alaska pipeline system.

More than two years later, the sale is still pending. And it could be a long time yet before it’s done, Unocal’s latest update to the Regulatory Commission of Alaska indicates.

Unocal in 2012 said it would sell its TAPS stake to a third party, or to one or all of the remaining owners including BP, ConocoPhillips and ExxonMobil.

In a July 24 filing with the commission, Unocal repeated language from previous updates, namely that the company and the other TAPS carriers “have a dispute over several transfer-related matters,” and that they have engaged in arbitration and litigation.

This filing goes a bit further, however, saying: “The litigation has been time-consuming and is likely to continue for a significant period of time. Unocal is evaluating all its options regarding how best to proceed with these matters.”

The company proposed filing another update by Oct. 25.

Unocal, part of Chevron Corp., holds a 1.36 percent interest in the pipeline system.

The commission in July 2012 gave Unocal permission to temporarily suspend service on its share of capacity on the pipeline pending a sale.

A subsidiary of Koch Industries also informed the commission in June 2012 that it wanted to exit as a TAPS owner. Koch wrapped up a deal by year’s end to transfer its small interest to BP, ConocoPhillips and ExxonMobil.

- Wesley Loy