Settlement talks underway for PTE tariff

Settlement talks are continuing for PTE Pipeline’s proposed tariff to transport condensate from Point Thomson to Badami.

In a July 6 order the Regulatory Commission of Alaska said PTE Pipeline, ConocoPhillips Alaska and the state of Alaska requested the commission to hold its proceedings in abeyance pending settlement negotiations. RCA said it requires a status report on the settlement negotiations by Sept. 9.

PTE Pipeline, owned 68 percent by ExxonMobil Pipeline and 32 percent by BP Transportation (Alaska), filed a tariff with RCA in September, proposing $20.39 per barrel for transportation to Badami.

The Alaska Department of Law protested the tariff in early October and RCA suspended the tariff rate and rules for an initial six-month period and established a temporary rate equal to the filed rate, “to be collected subject to refund with interest.”

ConocoPhillips Alaska filed to intervene in late November, noting that it will be a future shipper and “therefore has a direct financial interest in the outcome of the proceedings.”

The RCA proceeding covers the intrastate tariff; there is a parallel proceeding before the Federal Energy Regulatory Commission on interstate rates. Settlement discussions are ongoing in the proceedings.

In mid-June the parties informed FERC that substantial progress had been made through informal negotiations but requested the appointment of a settlement judge to continue to facilitate progress.

FERC said June 16 that Judge Lawrence Brenner was designated at settlement judge “to convene a settlement conference, explore the possibility of settlement, discuss the differences between the parties, and in general conduct the settlement negotiations.”

An initial settlement conference was scheduled for June 29 at a FERC hearing room in Washington, D.C. The next settlement conference is scheduled for July 18.

- KRISTEN NELSON