Opinion ID: 184925
Heading Depth: 3
Heading Rank: 5

Heading: Eliminating the Fuel Oil Cut

Text: 46 Tesoro argues that FERC improperly eliminated the light resid cut and determined that the 1000-1050 degree cut should be valued as VGO. (We had previously affirmed FERC's creation of the light resid cut, but had remanded for new valuation.) The Nine Parties had suggested this change, and FERC approved it. Tesoro argues that the new cut is beyond the capability of many refineries. It suggests that the ALJ was confused when he determined that this change was consistent with the Commission's treatment of this cut. 47 FERC reasonably found, in resolving this technical matter, that the record evidence supports a determination that the standard industry cut point shown on assays is 1050. See 1997 Order, 81 FERC p 61,319, at 62,464. This finding, coupled with the testimony of expert witness O'Brien, see id. at 65,236-37, provided substantial evidence supporting the agency's decision that VGO is a permissible product on which to base the valuation of 1000 to 1050 degree resid.