Protest, request for hearing & motion to intervene of Chevron Products Co, Sinclair Oil Corp & Tesoro Refining & Marketing Co re Rocky Mountain Pipeline System, LLC under OR02-11.

Jnofflclal FERC-Generated P D F o f 20021001-0277 Received by FERC OSEC 09/20/2002 in D o c k e t # : OR02-11-000 g ORIGINAL r, S ~ -...,~,~,,, . ' <.~,/~'~,., ~/// .. UNITED STATES OF AMERICA B E F O R E THE FEDERAL ENERGY REGULATORY COMMISSION R o c k y M o u n t a i n P i p e l i n e S y s t e m , LLC F E R C D o c k e t N u m b e r OR02 - 11 - 004) PROTEST, REQUEST FOR HEARING AND MOTION TO INTERVENE OF CHEVRON PRODUCTS COMPANY, SINCLAIR OIL CORPORATION AND TESORO REFINING AND MARKETING COMPANY Protested Filing: Application of Rocky Mountain Pipeline System, LLC for Authority to Charge Market-Based Rates By: Melvin Goldstein GOLDSTEIN & ASSOCIATES, P.C. 1757 P Street N.W. Washington, D.C. 20036 (202) 872-8740 Attornevs for Chevron Products Comuanv. Sinclair Oil Corvoration a n d Tesoro Refinin~ and Marketin~ Date: September 20, 2002 Jnofficial FERC-Generated PDF of 20021001-0277 Received by FERC OSEC 09/20/2002 in D o c k e t # : O R 0 2 - 1 1 - 0 0 0 P U B L I C V E R S I O N - P R O T E C T E D MATERIALS R E M O V E D Table of Contents Introduction and Summary of Argument ........................................................... 2 (1) RMPS' actual conduct shows t h a t it is presently exercising market power ............................................................................................................. 2 (2) RMPS in.creased the effective rates charged by its predecessor by 65% ................................................................................................................ 3 (39--1~e origin markets on which RMPS bases its market-based r.ate application are fundamentally defective and should be rejected ............... 3 (4) The destination markets on which RMPS bases its market-based rate application are fundamentally defective and should be rejected ....... 5 (5) Regardless of the precedents t h a t have been established for product pipelines, the market for crude oil pipelines are origin/destination pairs - not separate origins and destinations ......................................................... 6 (6) The product market for the purpose of the RMPS market-based rate application is Rangeland Sweet Crude Oil; not all crude types and qualities as RMPS proposes......................................................................... 7 (7) An economic analysis of the Casper destination market indicates an unacceptably high level of concentration and an unacceptably high market share for RMPS ............................................................................... 8 (8) The deficiencies in RMPS' origin market and the market power that exercises in the Casper destination market should lead to the rejection of the entire RMPS market-based rate application .....................8 Background Facts ................................................................................................ 9 A. The Structure of the RMPS "Western Corridor ~ Line .............................9 ...