Buckeye And Airlines Agree To Settle FERC Disputes

(RTTNews) - Buckeye Partners, L.P. (BPL) announced that Buckeye Pipe Line Co., L.P. reached a settlement resolving all complaints filed with FERC by Delta Air Lines, JetBlue Airways, United/Continental Air Lines, and US Airways/American Airlines challenging Buckeye Pipe Line's rates for transportation of jet fuel from New Jersey to three New York City area airports.

In resolving complaints, Buckeye Pipe Line has agreed to reduce jet fuel rates prospectively and make settlement payments to the Airlines to close pending litigation. Buckeye Partners said the prospective reduction in rates will not have a material impact on Buckeye's operating results.

Under settlement, Buckeye also agrees to install facilities to increase the flexibility and capacity of its system in shipping jet fuel to John F. Kennedy International Airport, and provides for a mechanism for compensation for that investment.

Further, the settlement resolves the Airlines' challenges to an application by Buckeye Pipe Line for market-based rate authority in the New York City market. Buckeye will withdraw its application as to the New York City area airports but proceed with its application for the balance of the New York City market destinations. Buckeye Pipe Line and the Airlines have submitted the settlement to the FERC for approval. FERC action on the submission is likely to occur in the third quarter of 2015.