Opinion ID: 703151
Heading Depth: 3
Heading Rank: 1

Heading: The assay methodology

Text: 19 FERC accepted the settlement's proposal to replace the gravity valuation methodology with an assay methodology. It observed that the purpose of the Quality Bank is to 20 establish the relative value of the different quality oils that are tendered to TAPS. As such, it must incorporate a valuation methodology that is a reasonable proxy for the differences in the market value of the TAPS streams. 21 Id. at 62,286. The Commission agreed that due to the changed circumstances noted by the ALJ, the gravity methodology was no longer acceptable and that a new methodology was required. Id. at 62,287. It then found that the proposed assay methodology, with modifications to the methods of valuing two of the eight petroleum cuts, was just and reasonable. Id. at 62,290.