Tuscarora Gas Transmission Company April 1, 2014 Index of Customers Report.
03/31/2014UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION Osage Pipe Line Company, LLC ) Docket No. OR15-8-000 MOTION FOR LEAVE TO FILE ANSWER AND ANSWER OF OSAGE PIPE LINE COMPANY, LLC TO THE PROTEST FILED BY HOLLYFRONTIER REFINING & MARKETING LLC Ross A. Crutchfield Lorrie M. Marcil Magellan Midstream Partners, L.P. Emily C. Watkins One Williams Center Lauren C. Freeman Tulsa, OK 74172 SIDLEY AUSTIN LLP (918) 574-7499 1501 K Street, N.W. ross.crutchfield@magellanlp.com Washington, DC 20005 (202) 736-8000 lmarcil@sidley.com ewatkins@sidley.com lfreeman@sidley.com March 31, 2015 Table of Contents Page BACKGROUND AND INTRODUCTION..................................................................................2 ARGUMENT ..................................................................................................................................6 I. The Application Correctly Defined the Product Market......................................................6 II. The Geographic Origin Market is Properly Defined and Shown to be Highly Competitive With Numerous Good Alternatives. ..................................................................................10 A. The Origin Market is Properly Defined. ................................................................10 B. The Application Properly Analyzes the Numerous Origin Market Alternatives to Osage and Finds That They Are Good Alternatives. .............................................12 C. Even if the Origin Market Were Limited to the State of Oklahoma, It Would Be Highly Competitive. ...............................................................................................17 III. The Geographic Destination Market is Properly Defined and Shown to be Highly Competitive With Numerous Good Alternatives. ..............................................................18 A. The Kansas Destination Market Definition is Appropriate. ..................................18 B. There is No Support for HollyFrontiers Overly Narrow Destination Market Definition. ..............................................................................................................20 C. The Application Properly Analyzes the Numerous Good Alternatives to Osage in its Destination Market and Finds They Are Competitive. .....................................21 1. Local Crude Oil Production. ......................................................................24 2. Jayhawk Pipeline .......................................................................................26 3. Savage Rail Facility ...................................................................................27 4. Plains and CVR Pipelines ..........................................................................28 5. Pony Express and Keystone Pipelines .......................................................29 IV. Other Factors Support the Application. .............................................................................33 A. Excess Capacity