Notice of Kern River Gas Transmission Co's July 18, 2001 filing of an application to construct and operate approximately31.6 miles of 24-inch diameter delivery lateral pipeline in San Bernardino County, CA (High Desert Lateral) etc under CP01-405.

20141216-5317 FERC PDF (Unofficial) 12/16/2014 4:03:27 PM Exhibit No. SUN-24 Page 1 of 24 UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION Osage Pipe Line Company, LLC ) Docket No. OR15-____-000 APPLICATION OF OSAGE PIPE LINE COMPANY, LLC FOR AUTHORITY TO CHARGE MARKET-BASED RATES Ross A. Crutchfield Lorrie M. Marcil Magellan Midstream Partners, L.P. Lauren C. Freeman One Williams Center SIDLEY AUSTIN LLP Tulsa, OK 74172 1501 K Street, N.W. (918) 574-7499 Washington, DC 20005 ross.crutchfield@magellanlp.com (202) 736-8000 lmarcil@sidley.com lfreeman@sidley.com Counsel for Osage Pipe Line Company, LLC Dated: December 16, 2014 20141216-5317 FERC PDF (Unofficial) 12/16/2014 4:03:27 PM Exhibit No. SUN-24 Page 2 of 24 STATEMENT A GEOGRAPHIC MARKETS 20141216-5317 FERC PDF (Unofficial) 12/16/2014 4:03:27 PM Exhibit No. SUN-24 Page 3 of 24 1 TABLE OF CONTENTS 2 FOR STATEMENT A 3 4 Section Page 5 6 I. Description of Osage ................................................................................. 1 7 II. Osages Market-Based Rate Request ....................................................... 3 8 III. Description of the Market Definition Process .......................................... 3 9 A. Definition of the Product Market ........................................................... 4 10 B. Definition of the Geographic Market ..................................................... 5 11 1. The Approach Used To Define Geographic Market By the 12 U.S. Department of Justice and the U.S. Federal Trade 13 Commission .................................................................................... 5 14 2. The Origin-Destination Market Approach For Defining 15 Geographic Markets For Oil Pipelines............................................. 9 16 3. The Alternative Corridor Market Approach .................................... 12 17 4. Recent United States Court of Appeals and Commission 18 Market-Based Rate Case Decisions ........................................... 13 19 IV. The Definition of the Origin and Destination Markets For A 20 Crude Oil Pipeline .................................................................................... 15 21 A. Origin Market Definition ...................................................................... 16 22 1. The Geography of the Origin Market ............................................. 16 23 2. Identifying the Good Alternatives to the Applicant Pipeline ........... 17 24 B. Destination Market Definition .............................................................. 20 25 V. Counties are the Component Building Blocks for a Crude Oil 26 Pipelines Origin and Destination Market Areas .................................... 22 27 VI. Origin Market Definition for Osage ......................................................... 24 28 A. Alternatives to Osage Within the Cushing Production Area................ 28 29 1. Identifying the Alternatives .................................................