ºÚÁÏÉçÇø

ºÚÁÏÉçÇøand other associations representing petroleum marketers and retailers filed a protest with the Federal Energy Regulatory Commission (FERC) over Enterprise TEPPCO’s recent decision to halt interstate ULSD on its pipeline effective July 1, 2013. 

NATSO, representing truckstops and travel plazas, along with the Petroleum Marketers Association of America (PMAA), the Arkansas Oil Marketers Association, Louisiana Oil Marketers and Convenience Store Association and Missouri Petroleum Marketers and Convenience Store Association joined several companies to file the protest on Monday, April 22, including CHS Inc.; HWRT Oil Co. LLC; GROWMARK LLC.; MFA Oil Co.; Southwest Airlines and United Airlines.

The pipeline originates in Baytown, Texas, and runs through Louisiana, Arkansas, Missouri, Indiana, Illinois, Ohio, Pennsylvania and New York. Enterprise first notified customers in March that it would be terminating interstate shipments on its pipeline of ULSD and jet fuel, and on April 5, filed with FERC a tariff change purporting to cease accepting nominations of shipments of ULSD and jet fuel, except for deliveries of jet fuel to two locations on its system.  

The associations are concerned that once ULSD shipments end, the area served by the Enterprise TEPPCO pipeline could experience product shortages, especially in markets in Louisiana, Arkansas and Missouri, where alternative ULSD supply sources are unavailable. These shortages could raise diesel prices and compromise consistent availability of the product for consumers reliant on the fuel for transportation, agriculture or other commercial uses.  

The groups argued that while Enterprise TEPPCO intends to cancel ULSD and jet fuel interstate shipments on its pipeline, it has not abandoned service and it will continue to provide both interstate and intrastate ULSD and jet fuel transportation to certain shippers and destinations. These actions are arbitrary and discriminatory and will have serious consequences for shippers and consumers. 

The associations also expressed concerns about the availability of ULSD in emergencies, especially with the Arcadia, La., terminal being on the TEPPCO pipeline.  

This decision by Enterprise has the potential to cause major supply issues throughout the TEPPCO system under normal circumstances. But in an emergency, such as the hurricanes of recent years, the petroleum industry’s ability to provide ULSD will be seriously compromised. In particular, the terminal in Arcadia, La., has been a crucial source of ULSD in the aftermath of hurricanes. With the termination of ULSD shipments by Enterprise, if emergency responders are forced to rely on rail, barge and trucking to transport ULSD into the area, emergency preparedness will be seriously compromised.

The associations also expressed concern about whether alternative supply sources will be able to absorb the ULSD volume when TEPPCO abandons interstate shipments, in addition to the high costs associated with trucking product long distances, the availability of common carrier tank trucks for additional ULSD shipments, driver hours-of service limitations and other logistics challenges.

Tiffany Wlazlowski Neuman

Wlazlowski Neuman leads ºÚÁÏÉçÇøand the ºÚÁÏÉçÇøFoundation’s public affairs initiatives and communications strategies to promote the truck stop and travel center industry to the public, opinion leaders, elected officials, and the media. Her outreach includes a spectrum of policy issues facing the industry, with a particular focus on transportation and fuel issues, truck parking, and human trafficking. She serves as NATSO’s representative on the U.S. Department of Transportation’s National Truck Parking Coalition, the Clean Freight Coalition, and various state truck parking technical advisory committees. She is the architect of the truck stop and travel center industry’s anti-human trafficking campaign and currently serves as a Committee member for the U.S. Department of Transportation’s Human Trafficking Advisory Council. Wlazlowski Neuman serves on the American Highway Users Policy and Government Affairs Committee.

See Full Bio