(The Center Square) − The Louisiana Public Service Commission has affirmed a ruling that designates Rosefield Fourchon Operating LLC as a common carrier pipeline, siding with energy company Cantium LLC in a regulatory dispute over crude oil terminal fees.
Cantium alleges Rosefield is overcharging for services at the Fourchon Terminal without a legally required tariff on file and is seeking refunds and lower rates.
Currently, Rosefield is doing what it can to stall the case and seek a reversal of the ruling.
In a filing with the commission, Rosefield claims Cantium’s push for a status conference — which would set trial deadlines — is “premature.” The company says it still has time to seek a rehearing or appeal the commission’s May 19 vote affirming that Rosefield is a common carrier pipeline subject to commission regulation.
At the heart of the dispute was whether Rosefield’s operations at Port Fourchon — including a steel pipeline that moves crude oil owned by third parties into the BOA pipeline — fall under state regulatory authority. The commission ruled that it did.
“There is nothing inside of Louisiana Revised Statutes, the commission general order, [or] LDNR regulations that at all come close to referencing a terminal line,” Simone said. “There’s no exemption for a small pipeline. There’s no exemption for a short amount of distance. It simply says the words ‘pipeline.'”
The oil and gas industry is warning of broad consequences if the commission affirms the ALJ’s finding.
In letters to the commission, the Mid-Continent Oil and Gas Association and the International Liquid Terminals Association argued the decision could impose new regulatory burdens on terminal operators, including mandatory registration, commission approval of terminal fees, and additional supervision fees paid to the Louisiana Department of Revenue.
“This could impose new restrictions on third-party terminaling facilities that manage petroleum products for distribution onto third-party pipelines,” the Mid-Continent Oil and Gas Association wrote. “Increased regulatory oversight would place Louisiana at a distinct disadvantage, making it more challenging for businesses to justify investing in the state.”
