Application of Enterprise Products Partners L.P. and Enbridge Inc. for Authorization to Charge Market-Based Rates under OR12-4.

STATEMENT B THE PRODUCT MARKETS SERVED BY THE REVERSED SEAWAY PIPELINE 1 STATEMENT B 2 3 THE PRODUCT MARKETS SERVED BY THE REVERSED SEAWAY PIPELINE 4 The service to be provided by the Reversed Seaway Pipeline is the 5 transportation of crude oil which includes the direct liquid production of oil wells or a 6 mixture of the direct liquid production of oil wells with indirect liquid production of oil and 7 gas wells such as natural gasoline and liquefied petroleum gases.1 There are 8 limitations imposed on the amount and characteristics of the indirect liquids that can be 9 used, such as limitations on the vapor pressure of the mixture. 10 Crude oil is not a homogeneous product, but instead is a mixture of multiple 11 different molecular compounds. These include hydrocarbons, compounds consisting of 12 carbon and hydrogen in varying ratios and in different configurations, and impurities. 13 The characteristics of any crude oil sample will be determined by its unique combination 14 of these constituent compounds. 1 The Department of Energy, Energy Information Administration (EIA) defines crude oil or crude petroleum as a mixture of hydrocarbons that exists in liquid phase in natural underground reservoirs and remains liquid at atmospheric pressure after passing through surface separating facilities. Depending upon the characteristics of the crude stream, it may also include 1. Small amounts of hydrocarbons that exist in gaseous phase in natural underground reservoirs but are liquid at atmospheric pressure after being recovered from oil well (casing head) gas in lease separators and are subsequently coming led with the crude stream without being separately measured. Lease condensate recovered as a liquid from natural gas wells in lease or field separation facilities and later mixed into the crude stream is also included; 2. Small amounts of nonhydrocarbons produced with the oil, such as sulfur and various metals; 3. Drip gases, and liquid hydrocarbons produced from tar sands, oil sands, gilsonite, and oil shale (http://www.eia.gov/tools/glossary/index.cfm?id=C), Natural gasoline is defined as a mixture of liquid hydrocarbons (mostly pentanes and heavier hydrocarbons) extracted from natural gas. It includes isopentane. (http://www.eia.gov/tools/glossary/index.cfm ?id=N). Liquefied petroleum gases are defined as a group of hydrocarbon-based gases derived from crude oil refining or natural gas fractionation. They include ethane, ethylene, propane, propylene, normal butane, butylene, isobutane, and isobutylene. For convenience of transportation, these gases are liquefied through pressurization. (http://www.eia.gov/tools/glossary/index.cfm?id=L). ...