INTRASTATE COMMON CARRIER PETROLEUM (LIQUID) PIPELINES

Pursuant to Louisiana Revised Statue 45:252 all pipe lines through which petroleum is conveyed from one point in this state to another point in the state are declared to be common carriers as defined below and are placed under the control of and subject to regulation by the Louisiana Public Service Commission.

 

"Common carrier" includes all persons engaged in the transportation of petroleum as public utilities and common carriers for hire; or which on proper showing may be legally held a common carrier from the nature of the business conducted, or from the manner in which such business is carried on.  

"Petroleum" means crude petroleum, crude petroleum products, distillate, condensate, liquefied petroleum gas, any hydrocarbon in a liquid state, any product in a liquid state which is derived in whole or in part from any hydrocarbon, and any mixture or mixtures thereof; provided, however, that such term shall not include methanol synthetically produced from coal, lignite, or petroleum coke.  

"Pipe line" includes the real estate, rights of way, pipe in line, telephone and telegraph lines or other communication systems, tank facilities as herein designated, and necessary for the proper conduct of its business as a common carrier, all fixtures, equipment and personal property of every kind owned, controlled, operated, used or managed, in connection with, or to facilitate the transportation, distribution and delivery of petroleum through lines constructed of pipe.

The Commission’s General Order dated March 9, 2015 contains the requirements for petroleum pipeline common carriers. CLICK HERE FOR A COMPLETE COPY OF THE COMMON CARRIER PIPELINE GENERAL ORDER

REGISTRATION

Prior to initiating service, a Carrier shall submit a registration with the Commission and attach tariff(s). The registration shall include:

  • The Carrier’s name
  • Organizational structure identifying ownership of the pipeline system(s)
  • Pipeline system name(s)
  • Pipeline system map(s)
  • Regulatory contact information
  • $200 Registration fee.

All Registrations, Tariffs, Correspondence & Filings should be mailed to:

 

Louisiana Public Service Commission

Transportation Division

Post Office Box 91154

Baton Rouge, Louisiana 70821-9154

225-342-4439

888-342-5717

NOTIFICATION REQUIREMENTS

No later than sixty days after the effective date of a change, a Carrier shall notify the Commission of a change to any of the information that the Carrier provided in its registration as a common carrier pipeline, including notification that the Carrier terminates its registration with the Commission as a common carrier, i.e. all tariffs and contracts have been cancelled and the Carrier has terminated common carrier operations in Louisiana.

A Carrier shall notify the Commission of a Name Change no later than sixty days after the effective date of the change and remit the $150.00 Name Change fee.

ANNUAL REPORTS

Each year, within 120 days after the close of that year’s business, a Carrier shall submit an annual report utilizing the Commission’s annual report form CLICK HERE FOR THE ANNUAL REPORT FORM. Carriers who do not timely submit reports are assessed a $500.00 Late Fee.  * Pipeline Annual Report

TARIFFS

All Carriers shall maintain tariffs on file with the Commission or obtain approval for a tariff exception. Carriers shall charge rates that are just and reasonable, and not unreasonably discriminatory, for services offered under the same or similar circumstances.

 

A) Contents  - All tariffs shall contain the following information as outlined in the

  • Responsible Party

  • Statement of Rates

  • Rules

  • Effective Date

  • Type of Commodity

B) Cancellation of Tariff

 

A carrier must cancel a tariff when all of the services reflected in the tariff are terminated or no longer provided by that Carrier.

The Carrier must submit notification of the cancellation to the Commission within 30 days of the termination of service or provision of service by that Carrier. The cancellation notification must include a statement certifying that the Carrier´s current shippers affected by the cancellation have been notified of the cancellation. This paragraph does not apply to temporary suspensions of service.

 

C) Tariff Exception

 

A Carrier may request approval from the Commission’s Executive Secretary to provide service on a particular pipeline segment pursuant to the terms of transportation contracts with individual shippers rather than a tariff. The request shall include:

  • The list of shippers

  • An explanation regarding why individually negotiated contracts will meet the needs of the Carrier and the shippers

  • Whether there are parties other than the listed shippers seeking transportation on the pipeline

Carriers operating under the tariff exception must comply with all requirements of the General Order except those related to tariff and rate filings. These Carriers are also obligated to report to the Commission the addition of or the refusal of service to new shippers and the termination, expiration, or renegotiation of contracts with existing shippers.

 

D) Rate Increases

 

As stated in the following paragraphs, a Carrier may increase its rates through Indexing, Commission Approval, or Limited Temporary Surcharge.

 

Indexing – Filing Fee of $50.00 - A Carrier may file a revised tariff no later than September 1 of each year reflecting a rate increase that is tied to the indexed annual percentage rate increase last published by the FERC (The FERC indexing rate is currently adjusted annually based on changes in the Producer Price Index for Finished Goods (“PPI-FG”)) Staff may accept tariffs reflecting increased rates based on indexing that are submitted after September 1 for good cause shown. The transmittal letter shall confirm that notification of the rate change has been provided to the Carrier’s current shippers affected by the rate increase and describe the form of notification provided to such shippers. Carriers that do not have a FERC-approved tariff may also use this indexing method.

 

 Except for good cause, and Staff approval, a Carrier who implements a rate increase or temporary surcharge pursuant to Commission Approval, as stated in the next paragraph, shall not, for a period of twelve months following implementation of that rate increase or temporary surcharge, submit a revised tariff for another increase on the same service based on indexing.

 

Commission Approval – Filing Fee of $300.00 - A Carrier may request Commission approval of a rate increase or temporary surcharge by submitting a written letter request. The request shall provide the amount of the requested rate increase or temporary surcharge, a justification for the increase or surcharge, a proposed revised tariff, and confirmation that the Carrier’s current shippers affected by the rate increase or temporary surcharge have been notified of the request with a description of the form of notification provided to shippers.

 

Limited Temporary Surcharge – Filing Fee of $50.00 - A Carrier may file a revised tariff reflecting a temporary surcharge for the purpose of amortizing capital expenditures associated with the pipeline. The transmittal letter shall include: 1) an explanation of the need for the capital expenditure and its amortization, and 2) confirmation that the temporary surcharge has been approved by the Carrier’s current shippers affected by the surcharge.

 

 

Transfer of a Pipeline Segment

A) Notice Only Filing Fee of $150.00

 

Under the circumstances stated below, a Carrier shall provide written notice to the Commission prior to selling, merging, consolidating, or otherwise transferring a pipeline segment which has rates and services subject to the jurisdiction of the Commission. The notice shall be a joint filing of the transferor and transferee and provide a summary of the pipeline segment transfer transaction. 

 

If the transferee will ship its own product only, the notice shall include:

  1. For a pipeline segment with a tariff on file with the Commission, a statement that the transferor agrees to follow the provisions of the General Order for cancelling its tariff.  

  2. For a pipeline segment with a tariff exception, a statement that the transferor agrees to notify the current shippers affected by the transfer within 30 days of the transaction. 

If the transferee is a Carrier, or will become a carrier as a result of the transfer, the notice shall include:

  1. A statement that the transferee will submit a registration with the Commission and follow the provisions of the General Order.
  2. For a pipeline segment with a tariff on file with the Commission,

i.     a statement that the transferee adopts the rates in the transferor’s tariff and agrees to file its own tariff, or statement that the transferee does not adopt

the rates and a copy of a new tariff with documentation showing approval of the new tariff by current shippers, and


ii.     a statement that the transferor agrees to follow the provisions of the General Order for cancelling its tariff.

  1. For a pipeline segment with a tariff exception, i) a statement that the transferee adopts the same set of circumstances and provisions in the tariff exception as previously approved by the Executive Secretary, and ii) a statement that the transferor agrees to notify the current shippers affected by the transfer within 30 days of the transaction.

 

B) Staff or Executive Secretary Approval Required Filing Fee of $250.00

Under the circumstances stated below, a Carrier shall provide a written request prior to selling, merging, consolidating, or otherwise transferring a pipeline segment which has rates and services subject to the jurisdiction of the Commission. The request shall be a joint filing of the transferor and transferee and provide a summary of the pipeline segment transfer transaction.

 

If the transferee is a Carrier, or will become a Carrier as a result of the transfer, who does not meet the requirements for Notice Only transfer as stated above, then the transferor and transferor must obtain Staff approval prior to the transfer of a pipeline segment operating pursuant to a tariff and must obtain Executive Secretary approval prior to the transfer of a pipeline segment operating pursuant to a tariff exception.

 

A Carrier is not required to meet the requirements of General Orders dated June 16, 1953; October 28, 1968; March 18, 1994; and February 4, 2013

 

Miscellaneous Information

CLICK HERE for an inspection and supervision fee template (2015 and prior) to assist you with calculating your quarterly inspection and supervision fees.

CLICK HERE for an inspection and supervision fee template (2016 Only) to assist you with calculating your quarterly inspection and supervision fees.
CLICK HERE for an inspection and supervision fee template (2017 Only) to assist you with calculating your quarterly inspection and supervision fees.