RCA approves Unocal’s TAPS share transfer

Kristen Nelson

Petroleum News

The Regulatory Commission of Alaska said Feb. 24 that it has approved the transfer of Unocal Pipeline Co.’s ownership interest in the trans-Alaska oil pipeline to BP Pipelines (Alaska) Inc., ConocoPhillips Transportation Alaska Inc. and ExxonMobil Pipeline Co., the remaining TAPS carriers.

Unocal suspended its TAPS operations in 2012 and requested temporary suspension from the commission pending finalizing sale of its ownership interest, just 1.36%.

Unocal had been in discussion with the other owners since 2012. It told RCA in September that sale issues had been resolved. A joint application for transfer of Unocal’s interests to the other owners was submitted to the commission in October.

The parties said in the October application that Unocal’s shares would be acquired by the remaining owners in proportion to their existing ownership percentages.

The parties had asked for an expedited decision by Jan. 31, but the commission said that motion was denied as it was unable to complete its review of the application by that date.

The commission said it found the remaining TAPS carriers “able and willing” as required by statute, and said the transfer was in the best interest of the public.

BP currently owns 48.441% of pipeline assets and its new percentage will be 49.1069%; ConocoPhillips goes from 29.2086% to 29.6102%; ExxonMobil goes from 20.9943% to 21.2829%.

At the Valdez Marine terminal, BP goes from 47.5881% to 48.3914%; ConocoPhillips goes from 28.1267% to 28.6015%; ExxonMobil goes from 22.6252% to 23.0071%.

- KRISTEN NELSON