Opinion ID: 184925
Heading Depth: 3
Heading Rank: 7

Heading: Inconsistent Treatment of Heavy Distillate and Resid

Text: 51 Tesoro also argues that the valuation of heavy distillate is inconsistent with the valuation of resid. West Coast heavy distillate is valued based on its marginal use as the lowest value product requiring the least processing (high sulfur Waterborne Gas oil), whereas resid is valued based on its highest-value use as a coker feedstock. Tesoro argues that this impermissible inconsistent treatment overvalues the heaviest streams. This amounts to a reiteration of the question addressed above regarding FERC's determination that it is appropriate to value resid as a coker feedstock in the absence of a liquid market for the product. We uphold FERC's decision for the reasons stated above in Section V.A.1.