Santa Fe Pacific Pipeline Partners LP, Los Angeles, continues to defend its tariff on product shipments through its South System.
The pipeline delivers products to Phoenix and Tucson, Ariz., from El Paso and Los Angeles.
Rates are under challenge from shippers as part of an administrative proceeding that began in September 1992 before the Federal Energy Regulatory Commission.
Two of the shippers, Chevron U.S.A. Products Co., San Francisco, and Navajo Refining Co., Artestia, N.M., filed documents last month with FERC to support their claims that Santa Fe overcharged them to ship products to Phoenix and Tucson.
Chevron and Navajo seek more than a combined $15 million in refunds for shipments during 1990-93. They also want tariff rates reduced on future shipments. Other shippers also are seeking relief for past shipments and lower future rates.
Chevron and Navajo also are asking FERC to reduce Santa Fe's present charges for transportation to Phoenix and Tucson from El Paso by 40-50% and to Phoenix and Tucson from Los Angeles by 20-30%.
Rates being challenged were established via FERC approved settlements resolving an earlier rate proceeding, Santa Fe said. The rates have not been changed since 1991, when they were adjusted in accordance with those agreements.
Copyright 1994 Oil & Gas Journal. All Rights Reserved.
Copyright 1994 Oil & Gas Journal. All Rights Reserved.