Motion of Shell NA LNG LLC to Intervene, Protest, Request for Hearing and Suspension, and Request Concerning Other Tariff Revisions under Docket No. RP11-2137.

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 ....................