Clear Creek Storage Company, L.L.C. submits FERC Form 2-AAnnual Report of Nonmajor Natural Gas Companies for the year ending 2013.
04/16/2014January 3, 2014 Honorable Kimberly D. Bose, Secretary Federal Energy Regulatory Commission 888 First Street, N.E. Washington, D.C. 20426 Re: BP Pipelines (Alaska) Inc., et al., Docket No. OR14-6-000 Dear Secretary Bose: Pursuant to the procedural schedule adopted in this proceeding, Tesoro Alaska Company and Anadarko Petroleum Corporation submit the enclosed Prepared Answering Testimony of Steven D. Graybill (Exhibit No. ATS-1) and accompanying Exhibit Nos. ATS-2 through ATS-21. Please contact the undersigned with any questions regarding this filing. Respectfully submitted, Jeffrey G. DiSciullo Jeffrey G. DiSciullo Andrew T. Swers Counsel for Tesoro Alaska Company and Anadarko Petroleum Corporation Enclosures cc: Honorable H. Peter Young, Presiding Administrative Law Judge All Parties Exhibit No. ATS-1 Exhibit No. ATS-1 UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION ) ) ) BP PIPELINES (ALASKA), INC. ) Docket No. OR14-6-000 CONOCOPHILLIPS TRANSPORTATION ) ALASKA INC. ) EXXONMOBIL PIPELINE COMPANY ) PREPARED ANSWERING TESTIMONY OF STEVEN D. GRAYBILL ON BEHALF OF TESORO ALASKA COMPANY AND ANADARKO PETROLEUM CORPORATION JANUARY 3, 2014 Exhibit No. ATS-1 SUMMARY OF PREPARED ANSWERING TESTIMONY OF STEPHEN D. GRAYBILL Mr. Graybill is a partner at NEXIDEA, Incorporated. He has approximately 30 years of experience in the petroleum industry, and is an expert in the areas of processing, valuation, and economics of the refining industry. Mr. Graybill is testifying on behalf of Anadarko Petroleum Corporation and Tesoro Alaska Company. Mr. Graybills testimony responds to the direct case set forth by Flint Hills Resources Alaska LLC (Flint Hills). Mr. Graybill testifies that the current Quality Bank methodology should not be changed to re-value the Resid cut. Specifically, Mr. Graybill explains that coking remains the predominant market use for Resid on the West Coast, so it remains appropriate to value Resid based on its coker feed value, taking into account the full processing cost. Coker utilization rates for the most recent periods discussed by Dr. Verleger are nearly identical to the utilization rates in 2006. Cokers continue to be constructed around the world today. Investments in cokers are long-term commitments. Owners of cokers must continue to fund the fixed and capital costs of these new cokers to continue their day-to-day operations, so these costs cannot simply be presumed away, as Dr. Verleger suggests. It would not make sense for the Quality Bank formula to recognize the value of coker products, while denying recovery for the full processing costs required to produce those products. In addition, Flint Hillss reliance on the residual fuel ...