2nd Petition to Amend Stipulation and Agreement of Colorado Interstate Gas Company under RP06-397.

STATEMENT G MARKET POWER MEASURES FOR THE REVERSED SEAWAY PIPELINES DESTINATION AND ORIGIN MARKETS TABLE OF CONTENTS FOR STATEMENT G Section Page I. Discussion of the Market Power Statistics Used ............................................................................... 1 II. Cooperative Behavior by Oil Pipelines is Unlikely to Be Successful Even With High Concentration .................................................................................................................................... 3 III. Interpreting the Capacity-Based and Delivery-Based Market Share and HHI Statistics ....................................................................................................................................................... 5 A. THE AVAILABILITY OF RECEIPT AND DELIVERY DATA ................................................................................. 5 B. THE CAPACITY AND DELIVERY DATA AVAILABLE IN THIS MATTER ............................................................ 6 IV. Threshold Criteria for the Market Power Measures ........................................................................... 7 A. EVALUATING ALTERNATIVE HHI THRESHOLDS........................................................................................... 7 B. MARKET SHARE THRESHOLDS .................................................................................................................. 12 C. EXCESS CAPACITY MEASURE THRESHOLDS FOR DESTINATION AND ORIGIN MARKETS ........................ 13 V. Additional Competition to the Reversed Seaway Pipeline from Rail, Barges, and Upper-Midwest Refinery Expansions .................................................................................................. 16 A. INCREASING CRUDE OIL PRODUCTION IS SPURRING GROWTH IN TRANSPORTATION AND REFINING INFRASTRUCTURE .............................................................................................................. 16 B. RAIL-BASED CRUDE OIL TRANSPORTATION PROJECTS .......................................................................... 19 C. BARGE-BASED CRUDE OIL TRANSPORTATION ......................................................................................... 24 D. REFINERY CAPACITY EXPANSION PROJECTS IN THE UPPER MIDWEST ................................................... 25 E. INCREMENTAL COMPETITION TO REVERSED SEAWAY FROM RAIL, BARGES, AND INCREASED REFINERY CAPACITY ...................................................................................................... 25 VI. MARKET SHARE, HHI, AND EXCESS CAPACITY RATIO ANALYSES FOR THE REVERSED SEAWAY PIPELINES DESTINATION AND ORIGIN MARKETS ............................ 27 A. DEFINITIONS OF EFFECTIVE CAPACITY AND ADJUSTED CAPACITY .......................................................... 27 1. Destination Market Capacity Definitions ....................................................................................... 28 2. Origin Market Capacity Definitions ....................................................................