![]() The Company serves as the Canadian exporter and U.S. ![]() ![]() The subject crude oil crosses the Canadian border into the United States via the EPL system at the Port of Minneapolis, Minnesota. Because receipt commodities may be injected into the EPL system prior to the “first commingling point,” EPL indicates that such receipt commodities may be commingled prior to the “first commingling point” in any ratio under specific operational circumstances where EPL “at its sole discretion deems it necessary for the safe or efficient operation of the system.” The Company states that “as a user of the EPL system,” it “is not given a choice of whether its crude oil is commingled with other crude oils within the commodity pool.” Rather, if the purchased receipt commodity is subject to a common pool, the Company “as the recipient will always receive a batch of crude oil under the pooled commodity name and not the name of the original crude oil type that entered the system.” For instance, a purchaser may purchase a batch of the Surmont Heavy Blend (“SHB”) receipt commodity, but after transport through the EPL system, the purchaser would receive a batch of the Synbit Blend (“SYB”) transport commodity, “which could potentially consist of some combination of SHB, Statoil Cheecham Synbit (‘SCS’), Christina SynBit (‘CSB’), MacKay River Heavy (‘MKH’), and Long Lake Heavy Synbit Blend (‘PSH’)” receipt commodities. This range is calculated “using a volume-weight average subject to usual pipeline variations” and follows ratio-based guidelines. The “first commingling point” is the first point where “a minimum of two components to a specific pool combine using common receipt and/or breakout tanks.” According to EPL’s quality pool program, each transport commodity pool maintains a narrow range of quality specifications. Each transport commodity has a minimum of two different receipt commodities, but some have upwards of 14 and 19 different receipt commodities making up their common pool.Įach transport commodity common pool has a specifically assigned “first commingling point,” located in one of four cities in Canada. The transport commodity may contain a combination of any of the receipt commodities that fall under that transport commodity common pool. When any of these individual receipt commodities is injected into the EPL system, it will be commingled into its corresponding transport commodity common pool. Under this approach, 70 types of receipt commodities correspond to one of 10 transport commodities. Because EPL has implemented a “quality pooling” approach to optimize system capacity, certain types of crude oil, each type identified by its own specific commodity name (“receipt commodity”), may be commingled into common pools upon injection into the EPL system and delivered under a different commodity name (“transport commodity”). ![]() FACTS: The Company purchases crude oil from various Canadian crude oil suppliers and transports it into the United States via the Enbridge Pipeline (“EPL”) system. § 181.93(b)(7) that certain information in your submission be treated as confidential, we will excise the bracketed confidential information from public versions of this decision. Inasmuch as your request conforms to the requirements of 19 C.F.R. Nappi: This is in response to your advance ruling request, dated October 12, 2015, filed on behalf of your client, (hereinafter, the “Company”), regarding the eligibility of crude oil commingled and pooled with other crude oil during transit in a pipeline system for preferential tariff treatment under the North American Free Trade Agreement (“NAFTA”). RE: NAFTA Eligibility Commingled Crude Oil Fungible Inventory Management Dear Ms. Nappi Latham & Watkins LLP 555 Eleventh Street, Suite 1000 Washington, D.C.
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