February 8, 2013
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`The Honorable Curtis L. Wagner, Jr.
`Chief Administrative Law Judge
`Federal Energy Regulatory Commission
`888 First Street, N.E.
`Washington, D.C. 20426
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`Re:
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`Concurrent FERC and RCA Trans Alaska Pipeline Tariff Dockets
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`Dear Chief Judge Wagner:
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`This response to your January 31 “Order . . . On Further Settlement Proceedings” is made
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`on behalf of the Trans Alaska Pipeline System (TAPS) Carriers -- BP Pipelines (Alaska) Inc.,
`ConocoPhillips Transportation Alaska Inc., ExxonMobil Pipeline Company, Unocal Pipeline
`Company, and Koch Alaska Pipeline Company, LLC.1
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`The TAPS Carriers support the idea of reactivating settlement judge proceedings in these
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`concurrent matters and commit to participate in good faith in the settlement process. In order to
`bring these and the related 2011-2013 proceedings “to an end in an amenable manner,” as Your
`Honor suggests, we believe the scope of the settlement judge proceedings should encompass all
`the Strategic Reconfiguration claims and the cost-of-service issues.
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`To facilitate an overall resolution, the TAPS Carriers recommend that the discussions
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`also include a long-term methodology to govern the calculation of TAPS rates. As Your Honor
`is aware, in recent years TAPS rate filings have been made annually or more frequently. These
`filings are attributable in part to the steady decline in TAPS throughput, a trend that is projected
`to continue. Given these circumstances, and to mitigate the need for future TAPS tariff
`litigation, the TAPS Carriers have proposed to the other participants a long-term rate
`methodology and have provided a working model for consideration. In addition to providing a
`basis for resolving the Strategic Reconfiguration claims, such a methodology could resolve all
`tariff issues in the pending proceedings, as well as the 2011-2013 TAPS rate filings that are
`being held in abeyance.
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`The parties have not been able to agree upon a settlement judge to preside over the
`proposed proceedings. The TAPS Carriers recommend and request the designation of Deputy
`Chief Judge Bobbie J. McCartney. Judge McCartney has successfully assisted other Alaska oil
`pipelines in reaching tariff settlements involving several of the same participants and some of the
`same issues that are involved in this matter.
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`1 The TAPS Carriers currently fall into two groups -- the “Remaining Carriers” (i.e., BP,
`ConocoPhillips, and ExxonMobil) and the “Exiting Carriers” (i.e., Koch and Unocal). The
`Exiting Carriers have provided final notice of their withdrawal from TAPS effective on or after
`August 1, 2012, and are in the process, subject to the exit procedures outlined in the Trans
`Alaska Pipeline System Agreement and applicable governmental approvals, of transferring their
`TAPS interests to the Remaining Carriers.
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`The TAPS Carriers defer to Your Honor and the RCA Commissioners with regard to
`scheduling, including whether the pending agency decisions should be suspended during
`settlement judge proceedings in recognition of the possibility that such proceedings may
`eliminate the substantial effort required to prepare and issue such decisions.
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`/s/ Steven H. Brose
`Steven H. Brose
`Steven Reed
`Daniel J. Poynor
`Steptoe & Johnson LLP
`1330 Connecticut Avenue, N.W.
`Washington, D.C. 20036
`(202) 429-6250
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`Counsel for ConocoPhillips
`Transportation Alaska, Inc.
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`/s/Dean H. Lefler
`Dean H. Lefler
`Michelle T. Boudreaux
`Vinson & Elkins L.L.P.
`First City Tower, Suite 2500
`1001 Fannin Street
`Houston, TX 77002
`(713) 758-1030
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`Counsel for BP Pipelines (Alaska) Inc.
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`Respectfully submitted,
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`/s/ Eugene R. Elrod
`Eugene R. Elrod
`David J. Lewis
`Christopher M. Lyons
`Sidley Austin LLP
`1501 K Street, N.W.
`Washington, D.C. 20005
`(202) 736-8206
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`Counsel for ExxonMobil Pipeline
`Company
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`/s/ Edward D. Greenberg
`Edward D. Greenberg
`David K. Monroe
`GKG Law, P.C.
`1054 Thirty-First Street, N.W.
`Washington, D.C. 20007
`(202) 342-5200
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`Counsel for Koch Alaska Pipeline
`Company, LLC
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`/s/ J. Patrick Nevins
`J. Patrick Nevins
`Ruth Porter
`Hogan Lovells US LLP
`555 Thirteenth Street, N.W.
`Washington, D.C. 20004
`(202) 637-6441
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`Counsel for Unocal Pipeline Company
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`Copies to: Regulatory Commission of Alaska
` FERC and RCA Service Lists
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`2
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