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U.S. Department of Energy
Office of Scientific and Technical Information

The regulation of offshore crude oil pipelines and the consequences for competition. Final report

Technical Report ·
OSTI ID:6412942
Regulation of off shore crude oil pipelines can affect prices, profits, production rates, and the degree of competition, due to the pipelines' great economies of scale. Applicability of the law regulating crude oil pipelines on the outer continental shelf (OCS), Section 5(c) of the OCS Lands Act of 1953, is ambiguous. Alternative statutes for regulation of these pipelines, the Mineral Leasing Act and the Interstate Commerce Act, are clearly stricter in their requirements of common carriers. The United States Geological Survey (USGS) is responsible for regulating crude oil operations on the OCS and the Bureau of Land Management (BLM) is responsible for leasing land on the OCS, yet neither agency nor the Interstate Commerce Commission shows great interest in enforcement, on its own initiative, of Section 5(c). This pattern of administration allows line owners to deny access to non-owners in some cases, and allows line owners to own or control almost all the oil shipped over their lines by non-owners. Such problems are likely to appear elsewhere, as they have off Louisiana, unless several possible correction measures are undertaken.
Research Organization:
Levy (Richard), Falls Church, VA (USA)
OSTI ID:
6412942
Report Number(s):
PB-285542
Country of Publication:
United States
Language:
English

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