Unocal still trying to unload TAPS share

Unocal Pipeline Co. told the Regulatory Commission of Alaska in late October that it is still not in a position to file for transfer of its trans-Alaska oil pipeline operating authority due to unresolved issues with other owners.

The pipeline company has been trying to get out of its 1.35 percent ownership interest in the system since 2012, when it notified other owners it would not continue operation of its share of the line after July 31, 2012.

The original system agreement was for a 30-year term from commissioning, with an option to renew in five-year blocks; a renewal occurred in 2007, expiring July 31, 2012.

Unocal temporarily suspended its service on the line starting July 31, 2012, pending sale or transfer of its ownership interest and has applied to RCA for numerous extensions since.

In its June 28, 2012, application to RCA for temporary suspension of its service Unocal said it would sell its interest to a third-party or another pipeline owner, subject to right of first refusal by the remaining owners and said it was in active negotiations with the other owners to transfer its ownership interest.

In its latest filing with RCA, Unocal repeated what it has said previously that “Unocal and the other TAPS Carriers have a dispute over several transfer-related matters.” Unocal said arbitration continues on a portion of the dispute with litigation on other portions.

- Petroleum News