Prepared rebuttal testimony of HC Ouzts in support of complianant Sinclair Oil Corp re Sinclair Oil Corp v BP Pipelines Inc under OR02-6.

nofflclal FERC-Generated P D F of 2 0 0 4 0 3 1 8 - 0 1 3 5 Received by F E R C OSEC 03/16/2004 in D o c k e t # : OROZ-6-OOU UNITED STATES OF AMERICA BEFORE M FEDERAL ENERGY R E G U I ~ T O R Y COMMISSION SINCLAIROIL CORPORATION Complainant, V. Docket No. 0R92-6-02 BP ~ (No]ms AMEmCA), INC. Respondent PREPARED REBUTTAL T E S T I M O I ~ OF BLC. OUZTS IN SUPPORT OF COMPIAINANT SINCIAIR OIL CORPORATION S I N ~ E X H I B I T NO. 5 Jnofficial FERC-Generated PDF of 20040318-0135 Received by FERC OSEC 03/16/2004 in D o c k e t # : O R 0 2 - 6 - 0 0 0 SinchdrOil Corpv. BP Pipeltnm Dodu~ No. OR02-6-02 SIN Exhibit No. 6 1 during the 1997 to 2002 period or transported crude oil on the Western 2 Corridor pipeline system. 3 Finally, I discuss Dr. Schink's reference to an 80 cent per barrel 4 Western Corridor transportation rate that he claims I previously endorsed as 5 the rate that Sinclair paid. In this Rebuttal Testimony, I point out that I 6 never stated that any actual cost data established that 80 cent rate, but 7 merely that publicly available data suggested that the rate that R M P was 8 currently charging was unjust and unreasonable. 9 THE I M v u c r r PmCE FOR TS+.NSPOlrrATION ON THE WESTerN COmaU>OR 10 Q. Do y o u a g r e e w i t h Dr. S c h i n k ' s a s s e s s m e n t t h a t t h e 11 i m p l i c i t p r i c e o f t r a n s p o r t a t i o n o n t h e W e s t e r n C o r r i d o r is $1.257 12 A. No, I do not. BP America Production Company (BP Production) 13 and BP Canada Energy Marketing Corporation (BP Canada) were the 14 affiliates that the BP corporate network required Sinclair to use in order to 15 ship crude oil to Casper, WY during the April, 2000 to February, 2002 period. 16 Dr. Schink's analysis of the implicit price of transportation on the Western 17 Corridor at that time begins with his assuming that the actual price that BP 18 Production, BP Canada and their affiliates paid the producer of the 19 Rangeland Sweet crude oil that was delivered to Sinclair ...