Pipeline Rates Fought
Santa Fe Pacific Pipeline Partners LP said several major oil refiners have filed a complaint alleging that Santa Fe’s pipeline rates in California are too high.
The complaint, filed by Arco Products Co., Mobil Oil and Texaco Refining & Marketing Inc. asks the state Public Utilities Commission to reduce Santa Fe’s rates for transporting refined petroleum products through its pipeline system in the state.
If approved, a rate reduction would adversely affect the company’s future revenue.
The company, which operates a six-state petroleum pipeline system, reported a first-quarter profit of $10.2 million, or 52 cents per partnership unit, down 34% from the year-earlier $15.4 million, or 78 cents a unit. Revenue dipped 1% to $56.1 million from $56.7 million.
The company said its profit for the first three months was reduced by a previously announced $6-million charge related to the pending settlement of litigation with a Texas oil refiner. The slight drop in revenue, the company said, was caused by weather conditions that decreased demand for petroleum products in its six-state service area.
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