Opinion ID: 184925
Heading Depth: 3
Heading Rank: 6

Heading: The Choice of Waterborne Gasoil

Text: 48 Tesoro argues that FERC arbitrarily and capriciously approved the Nine Parties' selection of Waterborne Gas oil as the proxy product for valuing West Coast heavy distillate. Tesoro argues that Waterborne Gas oil is not a West Coast product, but is a Singapore product created in Singapore and is thus subject to Far East refining and market economics. This, it argues, is inconsistent with the stated goal of the settlement of valuing the product on the coast where it is delivered and used. Waterborne Gas oil, a high-sulfur product, cannot be sold on the West Coast. See Tesoro Brief at 19-21. 49 The agency states that the reference price used is 'Platt's U.S. West Coast spot quote for Waterborne Gas oil less 1 cent per gallon for processing costs.' ... That quoted Platt West Coast Waterborne Gas Oil price represents the value of significant Gas oil transactions on the United States West Coast. 1997 Order, 81 FERC p 61,319, at 62,463-64. Witness Ross stated that the price for Waterborne Gasoil was a West Coast price, even if the product was ultimately exported to Singapore. See Affidavit of Christopher E. Ross WW 7-10 (Mar. 17, 1997). Given this record support, we will not disturb FERC's determination. 50