State regulators stepped in to prevent a crude oil pipeline shutdown, a move that could shape near-term operations and future oversight.
(P&GJ) — California regulators have approved emergency interim rate relief for Crimson Utilities’ San Pablo Bay crude oil pipeline system, allowing a nearly 60% increase in shipping rates to prevent a potential suspension of pipeline operations, according to a draft resolution issued by the California Public Utilities Commission (CPUC).
The resolution authorizes Crimson Utilities — San Pablo Bay Pipeline Company LLC and Crimson California Pipeline LP — to raise interim transportation rates on the SPB-KLM system to $3.7527 per barrel, effective August 1, 2025, subject to refund. Regulators concluded the increase is necessary to address sustained volume declines that have left the pipeline with negative operating cash flow and, at times, zero nominations…