Buckeye Pipe Line Company, L.P. submits Application for Authority to charge markets based rates in the New York City market under OR13-3.

STATEMENT D

COMPETITIVE ALTERNATIVES

TABLE OF CONTENTS

Section Page

I. DESTINATION MARKET COMPETITION ALTERNATIVES ..................................... 1

II. ORIGIN MARKET COMPETITIVE ALTERNATIVES................................................... 1

III. MEASURING CAPACITY FOR THE COMPETITIVE ALTERNATIVES TO

BUCKEYE ............................................................................................................................... 2

A. Market Data Used ............................................................................................................ 2

B. Estimating Current And Potential Market Presence........................................................ 3

1. Refinery Capacity And Production........................................................................ 3

2. Pipeline Capacity ................................................................................................... 4

3. Waterborne Capacity and Shipments..................................................................... 5

D-i

1 BUCKEYE PIPE LINE COMPANY, L.PS COMPETITIVE ALTERNATIVES

2

3

4 I. Destination Market Competition Alternatives

5 Buckeye is requesting market-based rate authority for the New York, NY BEA (the New

6 York BEA). Within the New York Destination Market, Buckeye Pipe Line Company, L.P

7 (Buckeye) has three pipeline systems: the Long Island System, a pipeline to the Allentown,

8 PA area, and the Jet Lines. The Long Island System makes deliveries to Inwood, NY, Long

9 Island City, NY, J.F. Kennedy International Airport, NY, La Guardia Airport, NY, Newark

10 International Airport, NJ, and Linden, NJ. In the Allentown, PA area, Buckeye makes deliveries

11 to Allentown, PA, Fullerton, PA, and Macungie, PA. On its Jet Lines System, Buckeye makes

12 deliveries to New Haven, CT.

13 In the New York BEA, Buckeye faces competition from two local refineries with truck

14 racks, Hess and Phillips 66, two inbound pipelines connected to terminals in New York, Colonial

15 Pipeline Co. (Colonial), Sunoco Logistics Partners L.P.s (Sunoco Logistics) Macungie,

16 Twin Oak, and Harbor pipelines, and substantial port facilities. Table D.1 at the end of this

17 statement lists the competitive alternatives to Buckeye within the New York BEA.

18 II. Origin Market Competitive Alternatives

19 Buckeyes New York Origin Market is the New York BEA. The Buckeye System has

20 several connections to refineries and other pipelines at its New Jersey origins of Linden, NJ,

21 Sewaren, NJ, and Port Reading, NJ. At Macungie, PA, Buckeye pipeline is connected to

22 Buckeyes pipeline from Linden, NJ and to its affiliated pipeline, Buckeye Pipe Line

23 Transportation LLC, at Malvern and Ridley Park, PA in the Philadelphia area. At New Haven,

1 CT, Buckeyes Jet Lines are connected to tankage at New Haven which receives product from

2 waterborne sources.

3 Shippers in Buckeyes New York Origin Market all have several alternatives available to

4 move their pipelineable petroleum products

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