Response to Data Request of Questar Pipeline Company for its ML 103 Extension Project under CP12-18.

STATEMENT I TESTIMONY PREPARED DIRECT TESTIMONY OF DR. GEORGE R. SCHINK TABLE OF CONTENTS Section Page I. Identity and Qualifications ............................................................................... 1 II. Purpose of Testimony, Description of the Reversed Seaway Pipeline, and Summary of Conclusions ......................................................................... 3 A. Purpose of Testimony ............................................................................. 3 B. Description of the Reversed Seaway Pipeline......................................... 4 C. Summary of Conclusions ...................................................................... 13 III. The Major Issues Addressed in This Testimony............................................ 14 A. The Services Provided by Crude Oil Pipelines ...................................... 16 B. The U.S. Department of Justices View of the Competitiveness of Crude Oil Pipelines in the Lower-48 States ........................................... 18 C. The Competitive Implications of the Reversed Seaway Pipeline Being a New Entrant ............................................................................. 20 D. Discussion of the Competitive Analyses ............................................... 21 1. Statistical and Other Competitive Analyses Performed ................... 21 2. The Competitiveness of the Reversed Seaway Pipelines Gulf Coast Destination Market................................................................. 27 3. The Competitiveness of the Reversed Seaway Pipelines Cushing Origin Market ..................................................................... 29 4. Excess Capacity in the Destination and Origin Markets .................. 34 5. New Entry into the Markets Served by Reversed Seaway Pipeline ............................................................................................ 36 6. Overall Conclusions Based on the Above Results ........................... 36 IV. Structure and Content of The Statements Accompanying Enterprise Products Application ..................................................................................... 37 I-i UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION Enterprise Product Partners L.P. ) Docket No. OR12-____-000 And Enbridge Inc. ) PREPARED DIRECT TESTIMONY OF DR. GEORGE R. SCHINK 1 I. Identity and Qualifications 2 Q. Please state your name, business address, and business title. 3 A. My name is George R. Schink. I am a Managing Director at Navigant 4 Economics, a subsidiary of Navigant Consulting, which provides economic and 5 financial analysis of legal and business issues to law firms, corporations and 6 government agencies. My business address is 1801 K Street, NW, Suite 500, 7 Washington, D.C. 20006. 8 Q. Please state your education and professional background. 9 A. I was awarded a B.S. in Economics from the University of Wisconsin in Madison 10 in 1964, and a Ph.D. in Economics fr