Tariff increase posted for Alpine Pipeline

Kristen Nelson

Petroleum News

Alpine Transportation Co. has submitted an increase in its Alpine Pipeline tariff rates to the Regulatory Commission of Alaska, citing lower throughput than projected when the current rate was established.

The proposal is for an increase to 69 cents per barrel from 41 cents per barrel for transportation from ConocoPhillips Alaska’s Alpine field to the Kuparuk River unit and an increase to 20 cents per barrel from 12 cents per barrel for transportation from the Southern Miluveach unit to the Kuparuk River unit.

Through its attorneys, ATC told RCA that the revised rates were calculated in accordance with the settlement methodology in the Alpine Settlement Agreement. That agreement requires ATC to file its rates for the following year by Dec. 1. Current rates were approved effective Jan. 1 for Alpine to Kuparuk and March 11 for Southern Miluveach to Kuparuk.

The settlement agreement allows ATC to adjust its rates reflecting new or additional data if that results in an increase or decrease of at least 10 percent.

The revised rates are an increase of some 67 percent, exceeding the 10 percent threshold, driven primarily by 2019 throughput which is “significantly less than the projected throughput in the initial calculation,” actual throughput for September to December of last year (estimated for the proposed 2019 rates) less than projected, 2019 operating expenses greater than projected and operating expenses for September through December of last year which were greater than projected.

- KRISTEN NELSON