Joint Protest and Request for Discovery and Hearing of Suncor Energy Marketing Inc., Canadian Natural Resources Limited, Continental Resources, Inc., Denbury Onshore LLC, and Husky Marketing and Supply Company under OR12-4.

TABLE OF CONTENTS COMMUNICATIONS AND SERVICE............................................................................. 2 PROTEST............................................................................................................................ 3 A. The Application Fails to Comply with the Commissions Regulations Governing Initial Rates for a New Service and Should Be Summarily Dismissed........................ 4 B. The Application Fails to Justify its Overly-Broad Definition of the Product Market.. 9 C. The Application Fails to Justify its Overly-Broad Definition of the Origin Market.. 12 D. The Application Does Not Properly Identify Good Alternatives to Seaway. ............ 13 E. The Application Fails to Provide the Required Netback Analysis............................ 17 F. The Application Fails to Demonstrate a Lack of Market Power in the Destination Market. ........................................................................................................................ 21 G. The Application Fails to Demonstrate Potential Competition which would Mitigate the Exercise of Market Power by Seaway. ................................................................. 23 H. Seaways Status as a New Entrant Does not Justify Market-Based Rate Authority. . 25 REQUEST FOR DISCOVERY ........................................................................................ 25 REQUEST FOR HEARING ............................................................................................. 26 CONCLUSION ................................................................................................................. 26 Denbury Onshore LLC (Denbury), and Husky Marketing and Supply Company (Husky) (collectively the Joint Shippers) filed a joint motion to intervene herein. The motion demonstrated that Joint Shippers are entitled to intervene in this proceeding under Rule 214 as potential customers of Seaway which may be directly affected by the outcome of this proceeding and that participation by Joint Shippers in this proceeding will serve the public interest. 4. Pursuant to the Commissions Procedures for Market Power Determinations (18 C.F.R. 343.2) and Rules 211, 217, 406 and 502, Joint Shippers hereby jointly protest the Application and request that the Commission summarily dismiss the Application on the grounds set out herein. If the Application is not summarily dismissed, the Joint Shippers request discovery and a hearing. This joint protest and request for discovery and hearing is supported by the attached Verified Statements of interest and the attached affidavits of Barry E. Sullivan (Sullivan Affidavit) and John Van Heyst (Van Heyst Affidavit). COMMUNICATIONS AND SERVICE 5. Communications to the Joint Shippers should be served upon and addressed to the persons shown below: Marcus W. Sisk, Jr.* Curtis Serra* Frederick G. Jauss IV Legal Director Dorsey & Whitney LLP Suncor Energy Marketing Inc. 1801 K Street, N. W., Suite 750 150 - 6th Avenue, S.W. Washington, D. C. 20006 Ca