Questar Pipeline Company submits additional information for its ML 104 Extension Project under CP11-25.

UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION Regency Field Services LLC ) Docket No.OR12-15-000 Complaint, ) ) v. ) ) ) Black Lake Pipeline Company ) Respondent. ) Verified Statement of Robert G. Van Hoecke On Behalf of Black Lake Pipeline Company Dated: June 13, 2012 Exhibit No. RGV-1 Page 1 of 29 VERIFIED STATEMENT OF ROBERT G. VAN HOECKE ON BEHALF OF BLACK LAKE PIPELINE COMPANY I. PURPOSE, GENERAL BACKGROUND, AND SUMMARY OF CONCLUSIONS 1. My name is Robert G. Van Hoecke. I am a Principle with Regulatory Economics Group, LLC (REG), a firm specializing in economic, financial, and regulatory consulting for the pipeline industry. My office is at 2325 Dulles Corner Blvd., Ste. 470, Herndon, Virginia 20171-4675. I have approximately 28 years of experience working either directly for or as a consultant to major companies in the pipeline industry. I have prepared testimony regarding the regulation of oil and gas pipelines on numerous occasions before the Federal Energy Regulatory Commission (FERC or Commission), the Surface Transportation Board, various state regulatory agencies, and federal and state courts. A detailed statement of my qualifications is attached hereto as Exhibit No. RGV-2. 2. Counsel for Black Lake Pipeline Company (Black Lake) has asked me to review the Complaint of Regency Field Services LLC (Complaint) filed on May 14, 2012 in this proceeding and the relevant attachments including an Affidavit and Exhibits from Martin Anthony, Vice President of Gas Supply & Business Development for Regency Energy Partners, L.P. (Anthony Affidavit). Also, Counsel asked me to analyze the arguments of Regency Field Services LLC (Regency) as they pertain to Black Lakes penalties in Rules and Regulations Tariff No. 79.1.0 and the economic consequences, if any, of Regencys injection of off-specification product into the Black Lake common stream. For the reasons I discuss in the remainder of my statement, after conducting a thorough analysis, I conclude that Black Lakes tariff provision which assesses a penalty on Exhibit No. RGV-1 Page 2 of 29 shippers who tender off-specification Natural Gas Liquids (NGLs) not only is just and reasonable, but is necessary for the efficient operation of the Black Lake pipeline system. 3. Black Lake is a common carrier NGL pipeline system that originates at processing plants in Northern Louisiana and terminates at the Mont Belvieu Hub in Texas. It is approximately 317 miles long, and has a capacity of 40,000 barrels per day (bpd).1 Prior to July 2010, Black Lake was jointly owned by an affiliate of BP PLC (BP) and DCP Midstream; however, it ...