Landowner's Protest and Objection to Application Submitted by PRM Pit, LLC/M & P Transport Co., Inc.

February 3, 2014 Honorable Kimberly D. Bose, Secretary Federal Energy Regulatory Commission 888 First Street, N.E. Washington, D.C. 20426 Re: BP Pipelines (Alaska) Inc., et al., Docket No. OR14-6-000 Dear Secretary Bose: Pursuant to the motion filed earlier today by Tesoro Alaska Company and Anadarko Petroleum Corporation (Anadarko/Tesoro), attached please find revised exhibits Exh. Nos. ATS-1, ATS-8, ATS-16, and ATS-20; and new exhibit Exh. No. ATS- 22. Anadarko/Tesoro also have hand-delivered two copies of these exhibits to the Presiding Judge today, in accordance with the Rules for Hearings Conducted Before Judge Young that have been provided to parties to this proceeding. Please contact the undersigned with any questions regarding this filing. Respectfully submitted, Jeffrey G. DiSciullo Jeffrey G. DiSciullo Andrew T. Swers Victoria M. Lauterbach Counsel for Tesoro Alaska Company and Anadarko Petroleum Corporation Enclosures cc: All Parties Exhibit No. ATS-1 (Revised) Exhibit No. ATS-1 (Revised) UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION ) ) ) BP PIPELINES (ALASKA), INC. ) Docket No. OR14-6-000 CONOCOPHILLIPS TRANSPORTATION ) ALASKA INC. ) EXXONMOBIL PIPELINE COMPANY ) PREPARED ANSWERING TESTIMONY OF STEVEN D. GRAYBILL ON BEHALF OF TESORO ALASKA COMPANY AND ANADARKO PETROLEUM CORPORATION JANUARY 3, 2014 Exhibit No. ATS-1 presence of coking and solvent deasphalting on the West Coast. Also, Dr. Verleger overlooks recent changes in environmental regulations and economic conditions that are expected to reduce demand for residual fuel oil. Furthermore, Dr. Verleger does not demonstrate any changed circumstances justifying a change in the Quality Bank formula. Dr. Verlegers conclusion that the Quality Bank formula is broken is based on data from the recent economic crisis, a period of extreme economic volatility that is not likely to represent ongoing market conditions. Indeed, Dr. Verlegers own data demonstrate that market price relationships tend to be cyclical. While the recent economic crisis has caused significant volatility, the markets for crude products tend to be subject to constant shifts even in normal economic conditions. Multiple sources confirm that global demand for refined products, including those produced from coking Resid, is recovering. These same sources project reduced demand for residual fuel oil, which should further increase demand for coking. And because coker investments are long-term commitments, they cannot be based on a short- term horizon. Responding to Mr. Liebermans testimony concerning updated coker yields, Mr. Graybill points out that the existing Quality Bank formula uses yields from the Process Industry Modeling System (PIMS) version 11.0, which were agreed to ...