Final Supplemental EIS for the Keystone XL Project
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Keystone XL Project APPENDIX C Supplemental Information to Market Analysis Final Supplemental EIS Keystone XL Project -This page intentionally left blank Keystone XL Project SUPPLEMENTAL INFORMATION TO MARKET ANALYSIS TABLE OF CONTENTS Acronyms and Abbreviations ........................................................................................................ iii 1.0 Introduction ............................................................................................................................. 1 2.0 Relationship of PADD Regions to U.S. Crude Oil Market ..................................................... 1 2.1 PADD Supply Characteristics....................................................................................... 1 2.2 Refinery Crude Selection Process ................................................................................. 2 3.0 Crude-by-Rail Loading, Off-Loading, and Transloading Facilities ........................................ 4 4.0 References ............................................................................................................................. 12 4.1 Text Citations .............................................................................................................. 12 4.2 Table References ......................................................................................................... 13 4.2.1 PADD 1 Crude-by-Rail Offloading .................................................................... 13 4.2.2 PADD 2 Bakken Rail Loading ............................................................................ 15 4.2.3 PADD 2 Non-Bakken Loading ........................................................................... 19 4.2.4 PADD 2 Stroud to Cushing Loading/Transloading/Offloading Facilities .......... 21 4.2.5 PADD 2 Rail to Marine Transloading Facilities ................................................. 21 4.2.6 PADD 3 Rail Offloading Facilities ..................................................................... 22 4.2.7 PADD 3 Crude-by-Rail Loading Terminals ....................................................... 28 4.2.8 PADD 4 Rail Loading ......................................................................................... 31 4.2.9 PADD 5 Rail Offloading ..................................................................................... 33 4.2.10 Canadian Rail Loading Facilities ........................................................................ 37 4.2.11 Canadian Rail Offloading Facilities .................................................................... 47 4.3 Additional Reading and References ............................................................................ 48 ATTACHMENTS Attachment 1, Tables Attachment 2, U.S. Energy Information Administration Memo: The North American Oil Market Outlook, January 4, 2013 Attachment 3, Comparative Transportation Costs for Pipelines and Rail: Western Canada to U.S. Gulf Coast by ICF International Supplemental Information to Market Analysis i Keystone XL Project Attachment 4, Potential Rail Logistics Constraints for Crude Oil Movements from Canada to U.S. Destinations, by Hellerworx Attachment 5, Oil Sands Development Group: Oil Sands Project List Attachment 6, WORLD Model Overview and Results by EnSys Energy Attachment 7, Email Correspondence INDEX OF TABLES Table 1 PADD 1 Crude-by-Rail Offloading ........................................................................ 4 Table 2 PADD 2 Bakken Rail Loading ............................................................................... 5 Table 3 PADD 2 Non-Bakken Loading Facilities ............................................................... 6 Table 4 PADD 2 Stroud to Cushing Loading/Transloading/Offloading Facilities .............. 6 Table 5 PADD 2 Rail to Marine Transloading Facilities ..................................................... 6 Table 6 PADD 3 Rail Offloading Facilities ......................................................................... 7 Table 7 PADD 3 Crude-by-Rail Loading Terminals ........................................................... 8 Table 8 PADD 4 Rail Loading Facilities ............................................................................. 9 Table 9 PADD 5 Rail Offloading/Transloading Facilities ................................................. 10 Table 10 Canadian Rail Loading Facilities .......................................................................... 10 Table 11 Canadian Rail Offloading Facilities ...................................................................... 12 Table C1 Estimated Rail Costs for Various Origination and Destination Pairs Table C2 Estimated Crude Oil Capacity for 268,000-pound Tank Car Table C3 Estimated Crude Oil Capacity for 286,000-pound Tank Cars Table C4 Keystone XL Maximum Capacity Train Estimates Table C5 Pipelines All Constrained Scenario Train Traffic Estimates for 2035 Western Canadian Production: 268,000-pound Gross Weight Cars, 100-Car Unit Train Table C6 Pipelines All Constrained Scenario Train Traffic Estimates for 2035 Western Canadian Production: 286,000-pound Gross Weight Cars, 120-Car Unit Train Supplemental Information to Market Analysis ii Keystone XL Project ACRONYMS AND ABBREVIATIONS AB Alberta NS Nova Scotia AL Alabama NY New York AR Arkansas OH Ohio bbl barrel OK Oklahoma BC British Columbia OKDOT Oklahoma Dept. of Transportation BNSF Burlington Northern-San Francisco OR Oregon Railway PA Pennsylvania BP British Petroleum PADD Petroleum Administration for bpd barrels per day Defense District CA California PQ Province of Quebec, now abbreviated CAPP Canadian Association of Petroleum QC Producers Q quarter CN Canadian National QC Quebec CO Colorado SK Saskatchewan CP Canadian Pacific Railway STCC Standard Transportation Commodity DE Delaware Code EIA U.S. Energy Information TET Texas Eastern Transmission Pipeline Administration TX Texas EIS Environmental Impact Statement UP Union Pacific Railroad Company EOG EOG Resources, Inc. URCS uniform rail costing system FL Florida U.S./US United States GA Georgia USA United States of America GT GT Logistics LLC USDG U.S. Development Group IL Illinois UT Utah KCS Kansas City Southern Railway VA Virginia Company WA Washington KM Kinder Morgan WCSB Western Canadian Sedimentary KMEP Kinder Morgan Energy Partners Basin LPLA Louisiana WRB WRB Refining, LLC operates joint- LLC Limited Liability Company venture WRB Refinery L.P. Limited Partnership WTI West Texas Intermediate crude LP Limited Partnership WY Wyoming LRVC long run variable costs YE year end MB Manitoba ME Maine MI Michigan MO Missouri MS Mississippi MT Montana na not available NB New Brunswick ND North Dakota NJ New Jersey NM New Mexico Supplemental Information to Market Analysis iii Keystone XL Project 1.0 INTRODUCTION This appendix supplements information related to the Market Analysis in the Supplemental Environmental Impact Statement (EIS) (Section 1.4, Market Analysis). The Supplemental EIS refers to specific section numbers in this appendix. 2.0 RELATIONSHIP OF PADD REGIONS TO U.S. CRUDE OIL MARKET This section expands upon the discussion of U.S. Petroleum Administration for Defense District (PADD) regions by providing additional background information related to locations, characteristics, and refining and supply profiles of the PADDs and their interactions in the crude oil market. This section also includes refinery upgrading and expansion projects. The 50 states and the District of Columbia are divided into five districts. The origin of PADDs dates from World War II when it was necessary to allocate the domestic petroleum supply. The “boundaries” between the different PADDs do not reflect either a regulatory or a business requirement; however, the boundaries allow the U.S. Energy Information Administration (EIA) a mechanism to consistently report the key attributes of the petroleum industry (inventory, crude processing levels, prices, consumption, etc.) over various time periods: • PADD 1 (East Coast): − PADD 1A (New England): Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont. − PADD 1B (Central Atlantic): Delaware, District of Columbia, Maryland, New Jersey, New York, and Pennsylvania. − PADD 1C (Lower Atlantic): Florida, Georgia, North Carolina, South Carolina, Virginia, and West Virginia. • PADD 2 (Midwest): Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, Oklahoma, South Dakota, Tennessee, and Wisconsin. • PADD 3 (Gulf Coast): Alabama, Arkansas, Louisiana, Mississippi, New Mexico, and Texas. • PADD 4 (Rocky Mountain): Colorado, Idaho, Montana, Utah, and Wyoming. • PADD 5 (West Coast): Alaska, Arizona, California, Hawaii, Nevada, Oregon, and Washington. 2.1 PADD SUPPLY CHARACTERISTICS In general, each PADD reflects the typical supply patterns described in this section. PADD 1, the East Coast, is supplied by petroleum imports from foreign countries as well as refineries in PADD 3. Mid-Atlantic region refineries also supply PADD 1. PADD 3 refineries move product into PADD 1 via Colonial pipeline and Kinder Morgan’s Plantation pipeline, while marine Supplemental Information to Market Analysis 1 Keystone XL Project movements from the Gulf Coast supply Florida. PADD 1 refineries process crude oil solely from foreign sources and in general require light, sweet, and therefore expensive crude oil relative to refiners in other U.S. PADD regions. PADD 2 is a large region stretching from the Plains states (Oklahoma through North Dakota) and east to