Response of Mid-America Pipeline Company, LLC to Protest of Coffeyville Resources Refining & Marketing, LLC under IS12-97.

I. BACKGROUND MAPL owns and operates a line that moves refined petroleum products from Coffeyville, Kansas, where CRRMs refinery is located, to El Dorado, Kansas (the Coffeyville Outbound Line). Protest at PP 1-2. Movements on the Coffeyville Outbound Line include both interstate and intrastate transportation. Mid-America Pipeline Company, 137 FERC 61,090, at P 11 (2011). For several years, MAPL and CRRM (including CRRMs predecessor, Farmland Industries Inc.) were parties to a lease agreement in which CRRM leased all of the capacity of the Coffeyville Outbound Line from MAPL. During the term of the lease, while MAPL physically operated the pipeline, CRRM was the common carrier and was responsible for posting tariffs for transportation on the line. After the lease agreement expired on September 30, 2011, MAPL became the common carrier and was obligated to have tariffs on file in order for transportation to continue on the line. Mid-America, 137 FERC at P 2. On September 29, 2011, MAPL filed Tariff No. 82.1.0 with FERC to establish new interstate rates for the Coffeyville Outbound Line, effective October 1, 2011.1 1 Tariff No. 82.1.0 replaced Tariff No. 82.0.0., which was filed on September 21, 2011 and withdrawn on September 29, 2011. The tariffs were substantively the same, except for the removal of certain language from Item 25 of Tariff No. 82.0.0, which authorized MAPL to charge the interstate rate for all barrels moved on the Coffeyville Outbound Line unless the shipper provided information showing that the volumes moved in interstate commerce. Unlike the language in Tariff No. 82.0.0, MAPLs current proposal does not create a rebuttable presumption that all barrels move in interstate (Continued ) -2- As MAPL President James M. Collingsworth explains, MAPL does not operate a terminal at El Dorado that would allow product to be unloaded from the MAPL system onto trucks, rail cars or other non-pipeline modes of transportation. Attachment A at 4. Instead, all shipments on the Coffeyville Outbound Line are delivered at El Dorado to a pipeline owned by NuStar Pipeline Operating Partnership, L.P. (NuStar). Product transferred from MAPL to NuStar does not stop at El Dorado or come to rest for any significant length of time. NuStar does not operate any terminal facilities at El Dorado that permit shippers to unload product from the NuStar system to trucks or rail cars or other non-pipeline modes of transportation. Nor does NuStar offer merchant storage to shippers at El Dorado. While NuStar has storage at El Dorado, this storage is for operational purposes in order to facilitate through movements, by ...