Alaska oil companies settle dispute over Trans-Alaska Pipeline tariffsStaff Writer | December 16, 2017
Alaska will receive hundreds of millions of dollars in a settlement with oil companies over the value of North Slope crude oil shipped through the Trans-Alaska Pipeline (TAP).
Energy The 800-mile oil artery
Alaska claimed that the Alyeska owner companies, including BP, ConocoPhillips, ExxonMobil, Koch Industries and Unocal, overstated the tariffs and improperly devalued the oil delivered by the pipeline, thus reducing state income.
“This settlement is a great result for the State,” Alaska Attorney General Jahna Lindemuth said in statement. “It creates certainty going forward, avoids future litigation, and will provide additional taxes and royalties - bringing needed money to the state treasury.”
The settlement was filed Friday with the U.S. Federal Energy Regulatory Commission and the Regulatory Commission of Alaska (RCA), said Chief Alaska Attorney General John Ptacin. It is subject to FERC and RCA approval, which state officials hope will happen by next spring, he said.
The settlement resolves multiple disputes over the time period. “There’s about 40 rate cases. We’re settling all of those cases in this settlement agreement,” Ptacin said.
The terms allow the state to retain $224 million in already collected revenues and grant the state an additional $165 million in oil revenues. ■