Pipeline tariff still in negotiations

The Regulatory Commission of Alaska has received connection documentation for the PTE Pipeline and given parties to the tariff proceeding for the line until April 22 to file a report on settlement negotiations.

The new pipeline runs between the Point Thomson unit and the Badami unit on the North Slope. Point Thomson has not yet gone into production.

PTE Pipeline LLC, owner of the Point Thomson Export Pipeline, is owned 68 percent by ExxonMobil Pipeline Co. and 32 percent by BP Transportation (Alaska) Inc.

PTE Pipeline filed a proposed $20.39 per barrel tariff with RCA in September. The Alaska Department of Law protested the tariff and RCA suspended the proposed rate for an initial six-month period. ConocoPhillips Alaska subsequently filed to intervene as a future shipper with a direct financial interest.

Settlement negotiations are underway on both the in-state rates which RCA oversees and the interstate rates overseen by the Federal Regulatory Energy Commission.

Counsel for PTE Pipeline told RCA in February that settlement discussions are ongoing on both the RCA and FERC tariff proceedings, with a status report due to FERC April 18. RCA granted a request that a status report to RCA be due April 22.

RCA has suspending the proposed tariff and established an initial tariff as proposed by PTEP.

- KRISTEN NELSON