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Application: Plains Pipeline, L.P.


   
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Applicant Introduction

December 20, 2013

Michael Brennan

Office of Energy Diplomacy

Energy Resources Bureau

U.S. Department of State

2201 C Street, NW, Suite 4843

Washington, DC 20520

Re:

Dear

Pursuant to Public Notice 5092[1] and Article 9 of the existing Presidential Permit related to the border-crossing facilities described herein, Plains Pipeline, L.P., (“Plains Pipeline”), a limited partnership formed under the laws of the State of Texas, previously submitted to the Department of State (“Department”) an application dated February 27, 2013, for a Presidential Permit covering a portion of the Poplar Pipeline (formerly called the Wascana Pipeline) in Sheridan County, Montana, which has been transferred to Plains Pipeline (“Name Change Application”). Based on discussions with the Department on November 7, 2013, Plains Pipeline hereby submits this supplement (“Supplement”) to the Name Change Application, providing additional information in support of Plains Pipeline’s request.[2]

The operation and maintenance of the border-crossing portion of the Poplar Pipeline is already authorized by a Presidential Permit issued by the Department on May 18, 2007 (“2007 Presidential Permit”), in the name of two Plains affiliates, PMC (Nova Scotia) Company and Plains Marketing Canada L.P. (“PMCLP,” and collectively “PMC”). Plains Pipeline, L.P. has acquired a portion of the Poplar Pipeline extending from the international boundary line between the United States and Canada at a point near Raymond, Montana, to a point approximately 6.4 miles southwest of the international boundary line designated as the Raymond Station. PMCLP has ceased to exist and all of its assets, rights, liabilities and obligations have continued in Plains Midstream Canada ULC by operation of Canadian law. Pursuant to an internal reorganization and asset transfer, the border-crossing facilities and Presidential Permit will be consolidated within Plains Pipeline. As explained further below and in the Name Change Application, pursuant to Public Notice 5092, Plains Pipeline seeks a Name Change Permit authorizing Plains Pipeline to operate and maintain the border-crossing section of the pipeline transferred to Plains Pipeline, specifically extending from a block valve site in Sheridan County, Montana, with coordinates -104 42.934 W, 48 59.931 N, to the international border between the United States and Canada.

The original Presidential Permit for the Wascana Pipeline, which was issued by the Department on January 27, 1972, granted Wascana Pipeline Inc., a Delaware Corporation, the authority to construct, operate, and maintain a pipeline for crude oil and condensates crossing the international boundary line between the United States and Canada, at a point near Raymond, Montana. Pursuant to the Department’s Public Notice 5092, PMC subsequently obtained a Name Change Permit for the Wascana Pipeline, issued on May 18, 2007.

As explained in the Name Change Application, the original permit and the 2007 permit refer to approximately 56.8 miles of pipeline, from the terminal site of the Murphy Oil Corporation (approximately eight miles northeast of Poplar, Montana) to the international boundary line. In 2011, Plains Pipeline acquired the international border crossing and approximately 6.4 miles of pipeline, extending from the Raymond Station, located near Outlook, Montana, to the international boundary, as well as a lease option for the remaining pipeline referenced in the 1972 and 2007 permits.[3] Following the acquisition, Plains Pipeline conducted limited repair and maintenance activity on the border-crossing and acquired pipeline, including conducting an in-line inspection survey, repairing and replacing limited segments of pipeline as necessary to ensure safety and integrity of the pipeline, and installing two block valves between Raymond Station and the international border for purposes of pipeline maintenance, inspection, and safe operation.[4] Pursuant to Public Notice 5092, Plains Pipeline requests a Name Change Permit reflecting the transfer of ownership of the relevant facilities to Plains Pipeline, and permitting Plains Pipeline to operate and maintain the border-crossing facilities for the purpose of transporting crude oil across the international boundary line between the United States and Canada. Consistent with the Department’s policy,[5] Plains Pipeline requests such a Name Change Permit cover the border-crossing facilities, to include approximately 85 feet of pipeline extending from a block valve site in Sheridan County, Montana, to the international border between the United States and Canada.

Pursuant to the Department’s procedures set forth in Public Notice 5092, Plains Pipeline hereby submits the following information:

1. Plains Pipeline, L.P., is a company formed under the laws of the State of Texas with principal offices at 333 Clay Street, Suite 1600, Houston TX 77002.

Plains Pipeline is a subsidiary of Plains All American Pipeline, L.P. (“Plains”), a publicly traded master limited partnership organized under the laws of the State of Delaware and headquartered in Houston, Texas. Plains is engaged in the transportation, storage, terminalling and marketing of crude oil, refined products, and liquefied petroleum gas and other natural gas-related petroleum products.

Plains Pipeline has assessed the past and current operations of the Poplar Pipeline and the proposed future use of the border-crossing facilities to carry crude oil between the United States and Canada will be substantially unchanged from the currently permitted use. As requested by the Department pursuant to Public Notice 5092, Plains Pipeline is submitting herewith a statement under oath that the United States facilities and the operation and maintenance thereof authorized by the 2007 permit will remain substantially the same as before the transfer pending issuance to Plains Pipeline of a Name Change Permit.

4. Plains Pipeline commits to abiding by the relevant terms and conditions of the existing Presidential Permit issued for the border-crossing segment of the Poplar Pipeline. Specifically, Plains Pipeline will operate and maintain the border-crossing facilities to transport crude oil between the United States and Canada and will abide by the conditions stated in Articles 1 through 15 of the previously issued Presidential Permit.

As previously discussed with the Department of State on November 7, 2013, Plains Pipeline is providing certain documents requested by the Department of State related to a separate pipeline, the Bakken North Pipeline, constructed in North Dakota and Montana, without prejudice to Plains Pipeline’s right to operate the border-crossing facilities pending issuance of the Name Change Permit. Having provided the information above in both the Name Change Application and this Supplement, and in accordance with the procedure set forth in Public Notice 5092 and the requirements of Article 9 of the 2007 permit, Plains Pipeline requests that a Name Change Permit be issued reflecting ownership of the border-crossing facilities by Plains Pipeline and continuing Plains Pipeline’s authorization to operate and maintain the border-crossing facilities—defined as approximately 85 feet of pipeline extending from a block valve site in Sheridan County, Montana, to the international border between the United States and Canada—for the purpose of transporting crude oil between the United States and Canada. If you have any questions regarding the Name Change Application or this Supplement, please contact my attorney Lawrence J. Dreyfuss at (713) 646-4143.

Respectfully submitted,


Samuel N. Brown

Vice President


Attachments:
Verification
1972 and 2007 Presidential Permits

[1] Procedures for Issuance of a Presidential Permit Where There Has Been a Transfer of the Underlying Facility, Bridge or Border Crossing for Land Transportation, 70 Fed. Reg. 30990 (May 31, 2005) (“Public Notice 5092”).

[2] This Supplement is substantively similar to the Name Change Application dated February 27, 2013, and contains additional information requested by the Department. While supplementing Plains’ original Name Change Application, Plains believes the information and request contained in this Supplement is sufficient to support its request for a Presidential Permit pursuant to Public Notice 5092 reflecting the asset transfer (“Name Change Permit”).

[3] Market dynamics affecting liquid petroleum pipelines change rapidly, and plans for use of the portion of the pipeline subject to Plains Pipeline’s lease option change as the market dictates. Similarly, detailed marketing plans for the Poplar Pipeline or other liquid petroleum pipelines vary frequently, but Plains Pipeline states that at all times it will use the border-crossing facilities to transport crude oil between the United States and Canada, as currently permitted.

[4] Plains Pipeline also conducted maintenance activity within the footprint of the Raymond Station, including repair and replacement of below-grade pipe, installation of overflow tanks for safe operation of the station and pipeline, and other ancillary station facilities.

[5] See, e.g., Department of State Record of Decision and National Interest Determination, Enbridge Energy, Limited Partnership – Alberta Clipper Pipeline Application for Presidential Permit at 26 (dated Aug. 3, 2007, executed by James B. Steinberg, Deputy Secretary of State).



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