Exhibit No. SEA-9
Page 1 of 79
STATEMENT G
MARKET COMPETITIVENESS MEASURES
FOR SEAWAY PIPELINES
DESTINATION AND ORIGIN MARKETS
Exhibit No. SEA-9
Page 2 of 79
1 TABLE OF CONTENTS
2 FOR STATEMENT G
3
4 Section Page
5
6 I. Discussion of the Market Competiveness Statistics Used ............................. 1
7 II. Cooperative Behavior by Oil Pipelines is Unlikely to be Successful
8 Even with High Concentration........................................................................... 3
9 III. Interpreting the Capacity-Based and Delivery-Based Market Share
10 and HHI Statistics ............................................................................................... 5
11 A. The Availability of Receipt and Delivery Data ............................................ 5
12 B. The Capacity and Delivery Data Available in This Matter .......................... 6
13 IV. Threshold Criteria for the Market Competitiveness Measures ....................... 7
14 A. Evaluating Alternative HHI Thresholds ...................................................... 7
15 B. Market Share Thresholds......................................................................... 10
16 C. Excess Capacity Statistics: Definitions and Thresholds .......................... 11
17 1. Definitions................................................................................... 11
18 2. Thresholds.................................................................................. 12
19 V. Competitiveness Analyses for the Cushing Origin Market, the
20 Western Canada Production Area, and the Rocky Mountain
21 Production Area................................................................................................ 13
22 A. Origin Market Capacity-Based HHI Competitiveness Analyses ............... 14
23 1. Definitions and Interpretation of Effective Capacity and Adjusted
24 Capacity for an Origin Market ....................................................... 14
25 2. The Format of the Origin Market HHI Tables ................................ 16
26 3. Cushing Origin Market Capacity-Based HHI Analysis Results ...... 17
27 a. Market Size Defined As Crude Oil Production in the Cushing
28 Origin Market ...................................................................... 17
29 b. Market Size Defined As Crude Oil Production in the Cushing
30 Origin Market Plus Pipeline Deliveries of Crude Oil into the
31 Cushing Origin Market ........................................................ 19
32 4. Western Canada Production Area Capacity-Based HHI Results .. 20
33 5. Rocky Mountain Production Area Capacity-Based HHI Analysis
34 Results .......................................................................................... 22
G-i
Exhibit No. SEA-9
Page 3 of 79
TABLE OF CONTENTS
FOR STATEMENT G
(Continued)
Section Page
1 B. Origin Market Excess Capacity Held By Others
2 Competitiveness Analysis ............................................................. 25
3 C. Seaway Pipelines Origin Market Receipt Share ....................
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