Anadarko challenges proposed TAPS tariff hike, existing rate

Kay Cashman

Anadarko Petroleum filed a protest with the Federal Energy Regulatory Commission Dec. 16 challenging the 2005 tariff increases proposed by the five owners of the trans-Alaska oil pipeline system. The company also filed a complaint with FERC protesting the existing tariffs, calling them unjust and unreasonable.

Anadarko asked the commission to “suspend the 2005 tariffs, declare those rates subject to refund, initiate hearing procedures, establish just and reasonable TAPS rates … and grant Anadarko refunds, reparation, damages (with interest) and other appropriate relief, including attorney fees.”

This will be the first time FERC has been asked to review the reasonableness of the tariff on North Slope oil being shipped down the 800-mile pipeline to markets outside Alaska. Two years ago the Regulatory Commission of Alaska ruled on a similar complaint from shippers, including Anadarko, and drastically lowered the tariff for TAPS oil being used in-state. RCA also ordered the pipeline’s owners to cough up substantial refunds.

Currently the tariff for oil being purchased for in-state use is about $1.96 per barrel as compared to $3.01 per barrel for oil headed outside the state. The largest hike being proposed from TAPS owners is a 28 percent hike requested by BP that would take the out-of-state rate from $3.01 to $3.86 per barrel.

(See related stories on page A8 of this issue.)

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