Tesoro Alaska Petroleum Company v. Kenai

This case concerns the regulatory authority of the Alaska Public Utilities Commission (APUC) under the Pipeline Act, AS 42.06.140-.640. In short, we must determine whether the APUC has jurisdiction to regulate the transportation of crude and refined oil through Kenai Pipe Line Companys (KPL) marine terminal facilities. The APUC concluded that it had jurisdiction over all movements of oil, crude and refined. The superior court affirmed the APUCs decision as to the movement of crude oil, but reversed as to the movement of refined oil, holding that "refined oil" was not "oil" within the meaning of the Pipeline Act. Both the APUC and Tesoro Alaska Petroleum Company (Tesoro) appeal from that portion of the superior courts order which held that the APUC did not have regulatory authority over KPLs KPLs refined oil transport operations. KPL cross-appeals, challenging the portion of the superior courts order holding that the APUC had regulatory authority over crude oil transport at KPLs marine terminal facility. KPL also contests the superior courts award of costs and attorneys fees to Tesoro. We conclude that the APUC has jurisdiction to regulate all aspects of KPLs operations. Accordingly, we reinstate the APUCs determination.