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REGULATORY REFORM OF THE OIL
PIPELINE INDUSTRY

(98-30)

HEARINGS

BEFORE THE

SUBCOMMITTEE ON SURFACE TRANSPORTATION

OF THE

COMMITTEE ON

PUBLIC WORKS AND TRANSPORTATION
HOUSE OF REPRESENTATIVES

NINETY-EIGHTH CONGRESS

FIRST SESSION

ON

H.R. 2677

TO AMEND THE INTERSTATE COMMERCE ACT TO REFORM AND IM-
PROVE REGULATION OF THE TRANSPORTATION OF OIL BY PIPELINE,
AND FOR OTHER PURPOSES

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COMMITTEE ON PUBLIC WORKS AND TRANSPORTATION

JAMES J. HOWARD, New Jersey, Chairman

GLENN M. ANDERSON, California
ROBERT A. ROE, New Jersey
JOHN B. BREAUX, Louisiana
NORMAN Y. MINETA, California
ELLIOTT H. LEVITAS, Georgia
JAMES L. OBERSTAR, Minnesota
HENRY J. NOWAK, New York
ROBERT W. EDGAR, Pennsylvania
ROBERT A. YOUNG, Missouri

NICK JOE RAHALL II, West Virginia
DOUGLAS APPLEGATE, Ohio
GERALDINE A. FERRARO, New York
BRIAN J. DONNELLY, Massachusetts
DONALD JOSEPH ALBOSTA, Michigan
RON DE LUGO, Virgin Islands
GUS SAVAGE, Illinois

FOFO I. F. SUNIA, American Samoa
KATIE HALL, Indiana

DOUGLAS H. BOSCO, California
JAMES F. MCNULTY, JR., Arizonia
JIM MOODY, Wisconsin

ROBERT A. BORSKI, Pennsylvania
JOE KOLTER, Pennsylvania
TIM VALENTINE, North Carolina
EDOLPHUS TOWNS, New York
WILLIAM O. LIPINSKI, Illinois
MICHAEL A. ANDREWS, Texas
TOM J. VANDERGRIFF, Texas

J. ROY ROWLAND, Georgia

JAMES MCCLURE CLARKE, North Carolina ROBERT E. WISE, JR., West Virginia

GENE SNYDER, Kentucky

JOHN PAUL HAMMERSCHMIDT, Arkansas
BUD SHUSTER, Pennsylvania

ARLAN STANGELAND, Minnesota
NEWT GINGRICH, Georgia

WILLIAM F. CLINGER, JR., Pennsylvania
GUY MOLINARI, New York

E. CLAY SHAW, JR., Florida
BOB MCEWEN, Ohio
FRANK WOLF, Virginia
THOMAS E. PETRI, Wisconsin
HAL DAUB, Nebraska
LYNN MARTIN, Illinois
VIN WEBER, Minnesota
ROBERT F. (BOB) SMITH, Oregon
DON SUNDQUIST, Tennessee
NANCY L. JOHNSON, Connecticut
RON PACKARD, California

SUBCOMMITTEE ON SURFACE TRANSPORTATION

GLENN M. ANDERSON, California, Chairman

ROBERT W. EDGAR, Pennsylvania
NICK JOE RAHALL II, West Virginia
BRIAN J. DONNELLY, Massachusetts
GUS SAVAGE, Illinois

FOFO I. F. SUNIA, American Samoa
JAMES F. MCNULTY, JR., Arizonia
JIM MOODY, Wisconsin
WILLIAM O. LIPINSKI, Illinois
MICHAEL A. ANDREWS, Texas
TOM J. VANDERGRIFF, Texas
JOHN B. BREAUX, Louisiana

NORMAN Y. MINETA, California

DOUGLAS APPLEGATE, Ohio

DONALD JOSEPH ALBOSTA, Michigan

DOUGLAS H. BOSCO, California

ROBERT A. BORSKI, Pennsylvania

JOE KOLTER, Pennsylvania

RON DE LUGO, Virgin Islands

JAMES J. HOWARD, New Jersey

(Ex Officio)

BUD SHUSTER, Pennsylvania

JOHN PAUL HAMMERSCHMIDT, Arkansas
NEWT GINGRICH, Georgia

WILLIAM F. CLINGER, JR., Pennsylvania
E. CLAY SHAW, JR., Florida
FRANK WOLF, Virginia
HAL DAUB, Nebraska
LYNN MARTIN, Illinois

ROBERT F. (BOB) SMITH, Oregon
GENE SNYDER, Kentucky
(Ex Officio)

(II)

CONTENTS

Fountain, Kenneth P., general counsel, Exxon Pipeline Co...

428

Hunter, Thomas, director, Crude Supply and Planning, Farmland Industries,
accompanied by Joe Crites, assistant counsel, Farmland Industries.
Love, James, Center for Study of Responsive Law.

335

352

Mampe, Edwin P., Jr., director, government affairs, Crown Central Petroleum
Corp......

360

91

Baxter, William F., Assistant Attorney General, Antitrust Division, Depart-
ment of Justice, statement..

107

(III)

Page

Corcoran, Patrick H., executive director, Association of Oil Pipelines "Cri-
tique of 1983 Study on Oil Pipeline Regulation" by James Love, Center for
the Study of Responsive Law.

272

129

135

332

350

Means, Robert C., Director, Office of Regulatory Analysis, Federal Energy
Regulatory Commission:

Statement....

Fact Sheet: U.S. Oil Pipeline Industry, FERC, December 1982.

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To amend the Interstate Commerce Act to reform and improve regulation of the transportation of oil by pipeline, and for other purposes.

I

IN THE HOUSE OF REPRESENTATIVES

APRIL 21, 1983

Mr. BREAUX (for himself, Mr. ANDERSON, Mr. SHUSTER, Mr. FIELDS, Mr. GRAMM, Mr. WILSON, AND MR. TAUZIN) introduced the following bill; which was referred jointly to the Committees on Energy and Commerce and Public Works and Transportation

A BILL

To amend the Interstate Commerce Act to reform and improve regulation of the transportation of oil by pipeline, and for other purposes.

1

Be it enacted by the Senate and House of Representa

2 tives of the United States of America in Congress assembled,

3 That this Act may be cited as the "Oil Pipeline Regulatory

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