Nutaaq tariff rate of $1.10 starts Jan. 1

The Regulatory Commission of Alaska said Dec. 1 that the rate of $1.10 per barrel proposed by Nutaaq Pipeline LLC for the Badami Oil Pipeline is suspended subject to protests and becomes permanent if no protest is filed. The rate is effective Jan. 1.

The pipeline, owned by Glacier Oil and Gas, runs from Badami to Endicott, and carries crude oil from Badami and condensate from the Point Thomson unit farther east.

RCA said if no protest to the rate is filed, “each day’s rate becomes permanent the following day.”

If a protest is filed, the rate from the date of filing forward remains suspended until Dec. 31, 2017, unless RCA orders a further suspension.

Nutaaq has filed for the same tariff rate with the Federal Energy Regulatory Commission. RCA regulates rates for in-state transportation; FERC regulates rates for interstate transportation.

Nutaaq’s filing with FERC said the rate revision is based on updated expenses for 2017 and updated throughput estimates from PTE Pipeline LLC, the line from Point Thomson to Badami.

“The rate reduction is driven by anticipated materially increased production from PTE Pipeline LLC, up approximately 452 percent from 2016 (605,008 bbls) to 2017 (3,341,910 bbls),” the filing said.

Point Thomson operator ExxonMobil has been bringing the field’s condensate production online since last spring and recent production postings from the Alaska Department of Revenue indicate more sustained production from the field, which is expected to initially produce some 5,000 barrels per day. The volumes cited for 2017 would average out to some 10,000 bpd, which is the production level for which Point Thomson facilities are rated.

- KRISTEN NELSON