Prepared Direct Testimony of Robert E. Foti (Public) and Thomas O. Miesner (Public and Highly Confidential) on behalf of PBF Holding Company LLC and Toledo Refining Company LLC v. Enbridge Energy, Limited Partnership under OR12-14.
02/14/2013ROBERT E. FOTI SUMMARY OF TESTIMONY Mr. Foti is Manager Domestic Crude Oil Supply for PBF Holding Company LLC. His testimony describes PBFs refinery operations at Toledo, Ohio and PBFs experience on the apportionment process used by Enbridge on its Mainline system during the period of December 2011 through July 2012. PBF operates a petroleum refinery near Toledo, Ohio, which processes light crude oil but does not process heavy crude oil and which receives light crude oil via Enbridge Line 5. The Toledo refinery competes with six other refineries which receive both light crude oil via Enbridge Line 5 and heavy crude oil via Enbridge Line 6. Under the Enbridge nomination process, shippers supply the volume, origin point, destination point, and grade of crude oil. Enbridge determines whether nominations are assigned to Line 5 or Line 6. During the period December 2011 through July 2012, Line 5 was apportioned each month. While the pertinent segment of Line 6 (Line 6B) was fully utilized each month during that period, it was not apportioned. When PBF objected to Enbridge that this apportionment practice was inequitable, Enbridge responded that it would not shift any amount of a light crude oil blend from Line 5 to Line 6B so long as capacity on Line 6B was needed to move heavy crude oil. It is not disputed that Line 6B is physically capable of moving the light crude oil blend and has moved that blend in the recent past. The effect of Enbridges apportionment practice was to impose the full impact of apportionment during the period December 2011 through July 2012 on nominations of light crude oil for refineries that receive light crude oil via Line 5 and to spare from apportionment nominations of heavy crude oil for refiners that receive heavy crude oil via Line 6. The apportionment burden placed exclusively on Line 5 shippers of light crude oil caused substantial injury to PBFs refinery operations at Toledo. Exhibit No. PBF-1 Page 2 of 11 Pages 1 Mainline system which begins at Edmonton, Alberta, and ends in Sarnia, 2 Ontario, with intermediate receipt and delivery points in Canada and the 3 United States. The Mainline system includes an upstream portion from 4 Edmonton to Superior, Wisconsin, and a downstream system from Superior 5 to various delivery points. 6 Q. Which portion of the Enbridge Mainline system serves the refining region 7 where the PBF Toledo refinery is located? 8 A. The downstream portion of the Enbridge Mainline system includes two lines, 9 Line 5 and Line 6 that supply crude oil to petroleum refineries ...