Kinder Morgan's Bannigan says he'll fight California PUC action, asks for rehearing

HOUSTON, Texas - SFPP LP, a wholly owned subsidiary of Kinder Morgan Energy Partners, on May 26 vowed to seek a rehearing and pursue other legal options to have an adverse order issued by the California Public Utilities Commission (CPUC) overturned.

Among other things, the order would eliminate from SFPP's rates an allowance for income taxes on income generated by SFPP. The order would affect only the rates for SFPP's pipeline service within California.

"This order is contrary to both CPUC precedent and to existing and established federal regulatory policies for pipelines," said Tom Bannigan, president of KMP's products pipelines, in a news release.

SFPP's assets include about 2,500 miles of pipelines in California and other western states that transport refined petroleum products. Kinder Morgan is reviewing the order to quantify the financial effect on SFPP and the rates it charges shippers. (Source: Julie Armstrong, Houston Business Journal, May 27, 2011)

Kinder Morgan begins moving biodiesel on Oregon pipeline

Kinder Morgan Energy Partners LP in September began moving B2 through its 115-mile Oregon Pipeline that runs from Portland to Eugene. The move came following successful test runs. ‘
Kinder Morgan’s Oregon line is one of only a few pipelines in the U.S. able to regularly transport blended biodiesel, according to the company, because it does not transport jet fuel, eliminating the potential for intermixing of product into jet fuel batches.
“This new biodiesel shipment capability will help diesel fuel suppliers throughout Oregon meet a state biodiesel mandate that goes into effect on Oct. 1,” said Tom Bannigan, KMP Products Pipeline president. “We are transporting B2 in a way that’s operationally efficient, quality controlled and cost effective.”
The first commercial batch of approximately 100,000 barrels of B2 was created using a new blending system to inject B99 into ultra-low sulfur diesel at the company’s Willbridge terminal in Portland. Other area terminals also are expected to deliver B2 to the Kinder Morgan pipeline.

Andrew J. Black named president of Association of Oil Pipe Lines

The Association of Oil Pipe Lines on Aug. 12 announced that Andrew J. Black will join the Association on Sept. 8 as its new president.
AOPL is a non-profit trade association representing 49 domestic and Canadian interstate common carrier oil pipeline companies. AOPL members carry nearly 85 percent of the crude oil and refined petroleum products moved by pipeline in the United States.
Tom Bannigan, president, products pipelines, Kinder Morgan Energy Partners, and chairman of the Association of Oil Pipe Lines, said, "Andy brings a unique blend of public and private sector experience to the leadership of AOPL. He has federal regulatory, industry and Capitol Hill experience that positions him well to guide the industry as it addresses the opportunities and challenges of an increasingly complex legislative and regulatory environment."
Black joins AOPL from El Paso Corp. where he was director, Federal Government Relations. He previously served as director, Office of External Affairs, at the Federal Energy Regulatory Commission and as deputy staff director, policy, for the House Committee on Energy and Commerce.