Nutaaq files to increase pipeline tariff

Nutaaq Pipeline LLC has filed with the Regulatory Commission of Alaska to increase its intrastate petroleum transportation rate from $1.78 per barrel to $2.71 per barrel.

Nutaaq runs from Badami to a tie-in point with the Endicott Pipeline.

A filing with RCA says the current rate, effective Jan. 1, “was premised on the addition of throughput from PTE Pipeline LLC, anticipated to commence in March 2016. The commencement of production did not occur as anticipated but is instead projected to begin in May 2016.”

PTE Pipeline is the line from Point Thomson to Badami.

ExxonMobil said April 22 that production had begun from Point Thomson, with an initial rate estimated at some 5,000 barrels per day. Data posted by the Alaska Department of Revenue’s Tax Division indicates ramp up is proceeding slowly. Point Thomson production shows up under Endicott on the Tax Division’s listing, which combines volumes by major producing centers. Production shown under Endicott averaged 8,358 bpd in March, increasing to 10,231 bpd in April. Production for May, through May 5, averaged 9,970 bpd.

Alaska Oil and Gas Conservation Commission data, provided on a month-delay basis, does show production by field, but April volumes will not be available until June.

The tariff revision filing said the $2.71 per barrel tariff “was calculated by dividing the original cost of service, net of projected throughput revenues through the end of May, by the revised throughput forecast for June through December.”

The company said with the mid-year correction Nutaaq would “achieve its 2016 cost of service based upon the revised throughput projection.”

Nutaaq requested that the commission make the revised tariff effective June 1.

In other Point Thomson-related tariff activities, PTE Pipeline LLC, ConocoPhillips Alaska and the Alaska Department of Law notified the commission April 21 that they are still in settlement negotiations over the proposed $20.39 per barrel tariff for the Point Thomson Export Pipeline.

The commission said the next status report on settlement negotiations will be submitted on or before June 24.

- KRISTEN NELSON