Irving Oil Limited and Irving Oil Terminals Inc.; Analysis of Proposed Agreement Containing Consent Order To Aid Public Comment, 31985-31988 [2011-13598]
Download as PDF
<![CDATA[
Federal Register / Vol. 76, No. 106 / Thursday, June 2, 2011 / Notices
parties are encouraged to file written
submissions on the issues of remedy,
the public interest, and bonding. Such
submissions should address the
recommended determination by the ALJ
on remedy and bonding with respect to
the ’256 patent and the ’181 patent.
Complainants and the IA are also
requested to submit proposed remedial
orders for the Commission’s
consideration. Complainants are also
requested to state the date that the
patent expires and the HTSUS numbers
under which the accused products are
imported. The written submissions and
proposed remedial orders must be filed
no later than close of business on
Thursday, June 9, 2011. Reply
submissions must be filed no later than
the close of business on Thursday, June
16, 2011. No further submissions on
these issues will be permitted unless
otherwise ordered by the Commission.
Persons filing written submissions
must file the original document and 12
true copies thereof on or before the
deadlines stated above with the Office
of the Secretary. Any person desiring to
submit a document to the Commission
in confidence must request confidential
treatment unless the information has
already been granted such treatment
during the proceedings. All such
requests should be directed to the
Secretary of the Commission and must
include a full statement of the reasons
why the Commission should grant such
treatment. See 19 CFR 210.6. Documents
for which confidential treatment by the
Commission is sought will be treated
accordingly. All nonconfidential written
submissions will be available for public
inspection at the Office of the Secretary.
The authority for the Commission’s
determination is contained in section
337 of the Tariff Act of 1930, as
amended (19 U.S.C. 1337), and in
sections 210.42–46 and 210.50 of the
Commission’s Rules of Practice and
Procedure (19 CFR 210.42–46 and
210.50).
Issued: May 26, 2011.
By order of the Commission.
James R. Holbein,
Secretary to the Commission.
[FR Doc. 2011–13619 Filed 6–1–11; 8:45 am]
emcdonald on DSK2BSOYB1PROD with NOTICES
BILLING CODE P
FEDERAL TRADE COMMISSION
[File No. 101 0021]
Irving Oil Limited and Irving Oil
Terminals Inc.; Analysis of Proposed
Agreement Containing Consent Order
To Aid Public Comment
AGENCY:
Federal Trade Commission.
VerDate Mar<15>2010
16:40 Jun 01, 2011
Jkt 223001
ACTION:
Proposed Consent Agreement.
The consent agreement in this
matter settles alleged violations of
Federal law prohibiting unfair or
deceptive acts or practices or unfair
methods of competition. The attached
Analysis to Aid Public Comment
describes both the allegations in the
draft complaint and the terms of the
consent order—embodied in the consent
agreement—that would settle these
allegations.
DATES: Comments must be received on
or before June 27, 2011.
ADDRESSES: Interested parties may file a
comment online or on paper, by
following the instructions in the
Request for Comment part of the
SUPPLEMENTARY INFORMATION section
below. Write AIrving Exxon Mobil, File
No. 101 0021’’ on your comment, and
file your comment online at https://
ftcpublic.commentworks.com/ftc/
irvingexxonmobil, by following the
instructions on the Web-based form. If
you prefer to file your comment on
paper, mail or deliver your comment to
the following address: Federal Trade
Commission, Office of the Secretary,
Room H–113 (Annex D), 600
Pennsylvania Avenue, NW.,
Washington, DC 20580.
FOR FURTHER INFORMATION CONTACT:
Robert E. Friedman (202–326–3316),
FTC, Bureau of Competition, 600
Pennsylvania Avenue, NW.,
Washington, DC 20580.
SUPPLEMENTARY INFORMATION: Pursuant
to section 6(f) of the Federal Trade
Commission Act, 38 Stat. 721, 15 U.S.C.
46(f), and § 2.34 the Commission Rules
of Practice, 16 CFR 2.34, notice is
hereby given that the above-captioned
consent agreement containing a consent
order to cease and desist, having been
filed with and accepted, subject to final
approval, by the Commission, has been
placed on the public record for a period
of thirty (30) days. The following
Analysis to Aid Public Comment
describes the terms of the consent
agreement, and the allegations in the
complaint. An electronic copy of the
full text of the consent agreement
package can be obtained from the FTC
Home Page (for May 26, 2011), on the
World Wide Web, at https://www.ftc.gov/
os/actions.shtm. A paper copy can be
obtained from the FTC Public Reference
Room, Room 130–H, 600 Pennsylvania
Avenue, NW., Washington, DC 20580,
either in person or by calling (202) 326–
2222.
You can file a comment online or on
paper. For the Commission to consider
your comment, we must receive it on or
before June 10, 2011. Write ‘‘Irving
SUMMARY:
PO 00000
Frm 00059
Fmt 4703
Sfmt 4703
31985
Exxon Mobil, File No. 101 0021’’ on
your comment. Your comment B
including your name and your state B
will be placed on the public record of
this proceeding, including, to the extent
practicable, on the public Commission
Web site, at https://www.ftc.gov/os/
publiccomments.shtm. As a matter of
discretion, the Commission tries to
remove individuals’ home contact
information from comments before
placing them on the Commission Web
site.
Because your comment will be made
public, you are solely responsible for
making sure that your comment does
not include any sensitive personal
information, like anyone’s Social
Security number, date of birth, driver’s
license number or other state
identification number or foreign country
equivalent, passport number, financial
account number, or credit or debit card
number. You are also solely responsible
for making sure that your comment does
not include any sensitive health
information, like medical records or
other individually identifiable health
information. In addition, do not include
any ‘‘[t]rade secret or any commercial or
financial information which is obtained
from any person and which is privileged
or confidential,’’ as provided in Section
6(f) of the FTC Act, 15 U.S.C. 46(f), and
FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2).
In particular, do not include
competitively sensitive information
such as costs, sales statistics,
inventories, formulas, patterns, devices,
manufacturing processes, or customer
names.
If you want the Commission to give
your comment confidential treatment,
you must file it in paper form, with a
request for confidential treatment, and
you have to follow the procedure
explained in FTC Rule 4.9(c), 16 CFR
4.9(c).1 Your comment will be kept
confidential only if the FTC General
Counsel, in his or her sole discretion,
grants your request in accordance with
the law and the public interest.
Postal mail addressed to the
Commission is subject to delay due to
heightened security screening. As a
result, we encourage you to submit your
comments online. To make sure that the
Commission considers your online
comment, you must file it at https://
ftcpublic.commentworks.com/ftc/
southwesthealthalliances by following
the instructions on the Web-based form.
If this Notice appears at https://
1 In particular, the written request for confidential
treatment that accompanies the comment must
include the factual and legal basis for the request,
and must identify the specific portions of the
comment to be withheld from the public record. See
FTC Rule 4.9(c), 16 CFR 4.9(c).
E:\FR\FM\02JNN1.SGM
02JNN1
31986
Federal Register / Vol. 76, No. 106 / Thursday, June 2, 2011 / Notices
www.regulations.gov/#!home, you also
may file a comment through that Web
site.
If you file your comment on paper,
write ‘‘Irving Exxon Mobil, File No. 101
0021’’ on your comment and on the
envelope, and mail or deliver it to the
following address: Federal Trade
Commission, Office of the Secretary,
Room H–113 (Annex D), 600
Pennsylvania Avenue, NW.,
Washington, DC 20580. If possible,
submit your paper comment to the
Commission by courier or overnight
service.
Visit the Commission Web site at
https://www.ftc.gov to read this Notice
and the news release describing it. The
FTC Act and other laws that the
Commission administers permit the
collection of public comments to
consider and use in this proceeding as
appropriate. The Commission will
consider all timely and responsive
public comments that it receives on or
before June 27, 2011. You can find more
information, including routine uses
permitted by the Privacy Act, in the
Commission’s privacy policy, at https://
www.ftc.gov/ftc/privacy.htm.
Analysis of Agreement Containing
Consent Order To Aid Public Comment
emcdonald on DSK2BSOYB1PROD with NOTICES
I. Introduction
The Federal Trade Commission
(‘‘Commission’’) has accepted for public
comment, subject to final approval, an
Agreement Containing Consent Order
(‘‘Consent Agreement’’) from Irving Oil
Terminals Inc. and Irving Oil Limited
(collectively ‘‘Irving’’). The purpose of
the proposed Consent Agreement is to
remedy the anticompetitive effects
resulting from Irving and Irving Oil
Transportation Company LLC’s
proposed acquisition of certain
petroleum products storage and
transportation assets located in Maine
from ExxonMobil Oil Corporation
(‘‘ExxonMobil’’). As originally
structured, Irving would have acquired
ExxonMobil’s petroleum products
terminals located in South Portland and
Bangor, Maine, as well as ExxonMobil’s
intrastate pipeline connecting these two
terminals.
The Commission’s Complaint alleges
that this, if consummated, would violate
Section 7 of the Clayton Act, as
amended, 15 U.S.C. 18, and Section 5 of
the Federal Trade Commission Act, as
amended, 15 U.S.C. 45, by lessening
competition in the gasoline and
distillates terminaling services markets
in the South Portland and Bangor/
Penobscot Bay areas of Maine. To
resolve these competitive concerns
raised by the original transaction, Irving
VerDate Mar<15>2010
16:40 Jun 01, 2011
Jkt 223001
will divest its acquisition rights to the
ExxonMobil Bangor terminal and
intrastate pipeline as well as fifty
percent of ExxonMobil’s South Portland
terminal to Buckeye Partners, L.P. and
its affiliate Buckeye Pipe Line Holdings,
L.P. (collectively ‘‘Buckeye’’), retaining
only the right to acquire the remaining
fifty percent of the South Portland
terminal. Buckeye and Irving will form
a joint venture that will purchase
ExxonMobil’s South Portland terminal.
Under this proposal, Buckeye alone will
manage and operate this terminal on
behalf of the Irving-Buckeye joint
venture. Buckeye will purchase and
operate ExxonMobil’s pipeline and
Bangor terminal. Irving will enter into a
throughput agreement with Buckeye at
each of the petroleum products
terminals. The Commission’s Consent
Agreement is intended to assure that
Irving does not control the pipeline and
terminals and does not threaten
Buckeye’s ability to competitively
operate the South Portland terminal.
The proposed Consent Agreement, to
govern for a period of ten years,
prevents Irving from acquiring
additional share in, managing, or
operating the South Portland terminal
absent the Commission’s prior approval.
The Consent Agreement also requires
prior notification should Irving acquire
any form of additional ownership
interests in petroleum products
transportation or storage assets located
in Maine. Finally, the proposed Consent
Agreement imposes firewall and
monitor provisions to prevent Irving
from accessing and using confidential
customer information. This remedy
preserves competition in the gasoline
and distillates terminaling services
markets in both the Bangor/Penobscot
Bay and South Portland areas of Maine.
The proposed Consent Agreement has
been placed on the public record for
thirty days to allow interested persons
to comment. Comments received during
this period will become part of the
public record. After thirty days, the
Commission will review the proposed
Consent Agreement and the comments
received, and will decide whether to
withdraw the proposed Consent
Agreement, modify it, or make it final.
II. Parties
Irving is a family-owned business
based in St. John, New Brunswick,
Canada. Irving owns the largest refinery
in Canada and owns, in whole or in
part, six terminals in Canada and the
northeastern United States. Irving
supplies branded and unbranded
petroleum products in Canada and
throughout New England to third-party
distributors, retailers, various other re-
PO 00000
Frm 00060
Fmt 4703
Sfmt 4703
sellers, and governmental and
commercial end users. Irving also owns
retail travel plazas that sell gasoline and
diesel petroleum products. In Maine,
Irving owns a terminal in Searsport and
co-owns a terminal with CITGO
Petroleum Corporation in South
Portland.
ExxonMobil is the world’s largest
publicly traded petroleum and natural
gas company worldwide. ExxonMobil
produces crude oil and natural gas,
refines petroleum products, and
transports and sells crude oil, natural
gas, and refined petroleum products.
ExxonMobil owns terminals located in
South Portland and Bangor, Maine, as
well as an intrastate pipeline that
connects these two terminals.
Buckeye is a publicly traded
partnership that owns and operates one
of the largest independent refined
petroleum products pipeline systems in
the United States. Buckeye owns or
manages approximately 7,500 miles of
pipeline, owns approximately 70 active
refined petroleum products terminals,
and markets refined petroleum products
in some of the geographic areas served
by its pipeline and terminal operations.
Buckeye is not a party to the original
transaction and does not currently
market, transport, or store light
petroleum products in Maine.
III. The Relevant Markets and Their
Structure
The Commission’s Complaint alleges
that the original transaction would pose
substantial antitrust concerns in the
gasoline and distillates terminaling
services markets in the Bangor/
Penobscot Bay and South Portland areas
of Maine.
Terminals generally consist of a
number of storage tanks and loading
‘‘racks’’ that pump fuels into tanker
trucks for further delivery. Terminals
are specialized facilities connected to
one or more fuel supply sources, have
the capacity to store fuel shipments, and
must be configured properly to
distribute the fuel to customers. Light
petroleum products terminals are
specialized facilities that receive
gasoline, diesel fuel, heating oil,
kerosene, and jet fuel, among other
products, by pipeline, by water, by rail,
or directly from refinery production.
These products are stored or
redistributed by pipeline, water, rail, or
truck. Terminals are critical to the sale
and distribution of transportation fuels
and perform value-added services, such
as handling and injection of motor fuel
additives (including ethanol) as
petroleum products are redelivered
across the truck rack. Terminaling
services consist of a cluster of services
E:\FR\FM\02JNN1.SGM
02JNN1
Federal Register / Vol. 76, No. 106 / Thursday, June 2, 2011 / Notices
emcdonald on DSK2BSOYB1PROD with NOTICES
related to the delivery, storage, and
throughput of petroleum products.
The Commission’s Complaint alleges
that relevant product markets within
which to analyze the original
transaction are gasoline terminaling
services and distillates terminaling
services. Terminals that store gasoline
compete in both the gasoline
terminaling services and distillates
terminaling services markets. However,
terminals that store only distillates
compete only in the distillates
terminaling services market. Two
relevant geographic areas in which to
analyze the effects of the original
transaction on gasoline and distillates
terminaling services are the Bangor/
Penobscot Bay and the South Portland
areas of Maine. The Bangor/Penobscot
Bay area encompasses the state of Maine
north of Waterville, including Bangor,
Searsport, and Bucksport, Maine. The
South Portland area encompasses the
state of Maine south of Waterville,
including South Portland.
Irving and ExxonMobil are two of
three firms that can independently offer
gasoline terminaling services in the
Bangor/Penobscot Bay area and two of
four in the South Portland area.
Additionally, these companies are two
of four firms independently offering
distillates terminaling services in the
Bangor/Penobscot Bay area and two of
six in the South Portland area. The
original acquisition would have
substantially increased concentration in
each of the above markets.
IV. Effects of the Acquisition
The Commission believes that the
original transaction would eliminate the
actual, direct, and substantial
competition between Irving and
ExxonMobil, both: (1) Increasing the
likelihood that Irving would unilaterally
exercise market power in the Bangor/
Penobscot Bay area gasoline terminaling
services market, and (2) enhancing the
likelihood of collusion or coordinated
interaction among the remaining firms
in the South Portland area gasoline
terminaling services market and both
the Bangor/Penobscot Bay and South
Portland area distillates terminaling
services markets.
The ExxonMobil pipeline, which
originates in South Portland and whose
only access point is the ExxonMobil
South Portland terminal, supplies the
terminals located in Bangor, Maine.
Marine vessels supply the remaining
Bangor/Penobscot Bay area terminals as
well as the South Portland area
terminals. Because importing gasoline
from Europe on large cargo vessels is
generally less costly than shipping it
from domestic ports on smaller barges,
VerDate Mar<15>2010
16:40 Jun 01, 2011
Jkt 223001
most Maine suppliers import gasoline
from outside the United States.
Controlling the South Portland
terminal would allow Irving to control
the price of bulk gasoline deliveries to
the Bangor/Penobscot Bay area. Irving
would likely be able unilaterally to raise
the price for or restrict the availability
of gasoline terminaling services in the
Bangor/Penobscot Bay area and raise
gasoline prices to customers served from
this area’s terminals. Additionally, the
original transaction would provide
Irving with sufficient terminal capacity
to restrict alternative suppliers’ ability
to import gasoline into South Portland
area terminals at current prices. The
ability to restrict these imports would
allow Irving to increase the cost of
gasoline supplied to retail stations and
other consumers from the Bangor/
Penobscot Bay area terminals.
Because the ExxonMobil assets carry
both gasoline and distillates, the
original transaction also would likely
enhance the likelihood of coordination
to raise fees for and reduce the quality
and availability of terminaling services
among the remaining firms that could
independently provide distillates
terminaling services in the Bangor/
Penobscot Bay area and provide
gasoline or distillates terminaling
services in South Portland area.
Entry into the gasoline and distillates
terminaling services markets in the
Bangor/Penobscot Bay and South
Portland areas would not be timely,
likely, or sufficient to prevent or defeat
the anticompetitive effects of the
original transaction. Entering these
markets is costly, difficult, and unlikely
due to, among other things, the
difficulty of obtaining regulatory
approvals and the presence of excess
terminal capacity in both markets.
Facing substantial sunk costs, a new
entrant would not likely invest in a new
terminal in these markets, all of which
presently have sufficient capacity.
Further, due to the significant cost and
limited ability to attract large customer
volumes, a terminal that cannot
currently store gasoline would not likely
reconfigure its tanks to store gasoline in
response to a small but significant price
increase in gasoline terminaling
services.
V. The Proposed Consent Agreement
For a duration of ten years, the
proposed Consent Agreement addresses
the competitive risk that Irving may: (1)
Gain control of the Irving-Buckeye
South Portland terminal in the future,
allowing it to restrict supply to the
Bangor terminals and imports into
South Portland, or (2) access and use
confidential business information in an
PO 00000
Frm 00061
Fmt 4703
Sfmt 4703
31987
anticompetitive manner. By imposing
certain prior approval and prior notice
provisions on Irving and prohibiting it
from taking certain actions, the remedy
ensures that the Irving-Buckeye South
Portland terminal will continue to
operate independently of, and in
competition with, other Maine
terminals. Further, by imposing firewall
and monitor provisions, the remedy
guards against Irving accessing and
using confidential information in an
anticompetitive manner.
Pursuant to the proposed Consent
Agreement, Irving must obtain
Commission approval prior to: (1)
Acting as either manager of the IrvingBuckeye joint venture or operator of the
joint venture terminal, with a limited
sixty-day exception in the event that
Buckeye is unable to serve in either
capacity, (2) acquiring additional
storage or throughput rights at the joint
venture terminal, with a limited onemonth exception, or ownership interests
in the joint venture, or (3) modifying its
assignment agreements with Buckeye.
Paragraphs II.B. and II.E. Further, the
Consent Agreement requires Irving to
notify the Commission prior to
acquiring any form of additional
ownership interests in petroleum
products transportation or storage assets
located in Maine. Paragraph IV.
Additionally, the Consent Agreement
prohibits Irving from taking action that
would discourage or prevent Buckeye
from offering third parties terms equal
to Irving’s terms at the South Portland
terminal. Paragraph II.C.
The proposed Consent Agreement
also prohibits Irving from receiving,
sharing, or using any confidential
business information with limited
exceptions that allow the information to
be shared where required and only to
those with written agreements to
maintain the information’s
confidentiality. Paragraph III. To this
end, the Consent Agreement places an
enforcement obligation on Irving and
provides for the appointment of a
monitor to oversee the implementation
of these provisions. Paragraphs III.C.
and V. Such a monitor will review
Irving’s compliance proposals and assist
in evaluating their adequacy. Paragraph
V.
The proposed Consent Agreement
includes the standard divestiture trustee
provision pursuant to which the
Commission may appoint a trustee if
Irving fails to effectuate the divestiture
in a manner that complies with the
Consent Order. Paragraph VI.A. In this
case, the trustee will divest the assets,
subject to Commission prior approval,
within twelve months. Paragraph VI.E.
E:\FR\FM\02JNN1.SGM
02JNN1
31988
Federal Register / Vol. 76, No. 106 / Thursday, June 2, 2011 / Notices
VI. Opportunity for Public Comment
The proposed Consent Agreement has
been placed on the public record for
thirty days for receipt of comments by
interested persons. Comments received
during this period will become part of
the public record. After thirty days, the
Commission will review the comments
received, and decide whether to
withdraw from the proposed Consent
Agreement, modify it, or make it final.
By accepting the proposed Consent
Agreement subject to final approval, the
Commission anticipates that the
competitive problems alleged in the
complaint will be resolved. The purpose
of this analysis is to inform and invite
public comment on the proposed
Consent Agreement, including the
proposed remedy, and to aid the
Commission in its determination of
whether to make the proposed Consent
Agreement final. This analysis is not
intended to constitute an official
interpretation of the proposed Consent
Agreement, nor to modify the terms of
the proposed Consent Agreement in any
way.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2011–13598 Filed 6–1–11; 8:45 am]
BILLING CODE 6750–01–P
DEPARTMENT OF JUSTICE
Office of Community Oriented Policing
Services
[OMB Number 1103–NEW]
Agency Information Collection
Activities: Proposed Collection;
Comments Requested
30-Day Notice of Information
Collection under Review: COPS Police
and Communities Together (PACT) 360
Needs Assessment Survey.
emcdonald on DSK2BSOYB1PROD with NOTICES
ACTION:
The Department of Justice (DOJ)
Office of Community Oriented Policing
Services (COPS) will be submitting the
following information collection request
to the Office of Management and Budget
(OMB) for review and approval in
accordance with the Paperwork
Reduction Act of 1995. The emergency
proposed information collection is
published to obtain comments from the
public and affected agencies.
The purpose of this notice is to allow
for 30 days for public comment until
July 5, 2011. This process is conducted
in accordance with 5 CFR 1320.10.
If you have comments especially on
the estimated public burden or
VerDate Mar<15>2010
16:40 Jun 01, 2011
Jkt 223001
associated response time, suggestions,
or need a copy of the proposed
information collection instrument with
instructions or additional information,
please contact Ashley Hoornstra,
Department of Justice Office of
Community Oriented Policing Services,
145 N St., NE., Washington, DC 20530.
Written comments concerning this
information collection should be sent to
the Office of Information and Regulatory
Affairs, Office of Management and
Budget, Attn: DOJ Desk Officer. The best
way to ensure your comments are
received is to e-mail them to
oira_submission@omb.eop.gov or fax
them to 202–395–7285. All comments
should reference the 8 digit OMB
number for the collection or the title of
the collection. If you have questions
concerning the collection, please call
Ashley Hoornstra at 202–616–1314 or
the DOJ Desk Officer at 202–395–3176.
Written comments and suggestions
from the public and affected agencies
concerning the proposed collection of
information are encouraged. Your
comments should address one or more
of the following four points:
—Evaluate whether the proposed
collection of information is necessary
for the proper performance of the
functions of the agency, including
whether the information will have
practical utility;
—Evaluate the accuracy of the agency’s
estimate of the burden of the
proposed collection of information,
including the validity of the
methodology and assumptions used;
—Enhance the quality, utility, and
clarity of the information to be
collected; and
—Minimize the burden of the collection
of information on those who are to
respond, including through the use of
appropriate automated, electronic,
mechanical, or other technological
collection techniques or other forms
of information technology, e.g.,
permitting electronic submission of
responses.
Overview of This Information
Collection
(1) Type of Information Collection:
New collection.
(2) Title of the Form/Collection: COPS
Police and Communities Together
(PACT) 360 Needs Assessment Survey.
(3) Agency form number, if any, and
the applicable component of the
Department sponsoring the collection:
None. U.S. Department of Justice Office
of Community Oriented Policing
Services.
(4) Affected public who will be asked
or required to respond, as well as a brief
PO 00000
Frm 00062
Fmt 4703
Sfmt 4703
abstract: Primary: Law enforcement
agencies; Secondary: Substance abuse
prevention and treatment providers.
(5) An estimate of the total number of
respondents and the amount of time
estimated for an average respondent to
respond/reply: It is estimated that
approximately 300 respondents will
complete the form within 15 minutes.
(6) An estimate of the total public
burden (in hours) associated with the
collection: 75 total burden hours.
If additional information is required
contact: Jerri Murray, Department
Clearance Officer, United States
Department of Justice, Justice
Management Division, Policy and
Planning Staff, Two Constitution
Square, 145 N Street, NE., Room 2E–
808, Washington, DC 20530.
Jerri Murray,
Department Deputy Clearance Officer, PRA,
Department of Justice.
[FR Doc. 2011–13625 Filed 6–1–11; 8:45 am]
BILLING CODE 4410–AT–P
DEPARTMENT OF JUSTICE
Drug Enforcement Administration
[OMB Number 1117–NEW]
Agency Information Collection
Activities: Proposed Collection;
Comments Requested: Red Ribbon
Week Patch; DEA Form 316 and 316A
60-Day Notice of Information
Collection under Review.
ACTION:
The Department of Justice (DOJ), Drug
Enforcement Administration (DEA), will
be submitting the following information
collection request to the Office of
Management and Budget (OMB) for
review and approval in accordance with
the Paperwork Reduction Act of 1995.
The proposed information collection is
published to obtain comments from the
public and affected agencies. Comments
are encouraged and will be accepted
until August 1, 2011. This process is
conducted in accordance with 5 CFR
1320.10.
If you have comments, especially on
the estimated public burden or
associated response time, suggestions,
or need a copy of the proposed
information collection instrument with
instructions or additional information,
please contact Eric Akers, Chief,
Demand Reduction Section, 8701
Morrissette Drive, Springfield, VA
22152; (202) 307–7988.
Written comments and suggestions
from the public and affected agencies
concerning the proposed collection of
information are encouraged. Your
E:\FR\FM\02JNN1.SGM
02JNN1
]]>Agencies
[Federal Register Volume 76, Number 106 (Thursday, June 2, 2011)]
[Notices]
[Pages 31985-31988]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-13598]
-----------------------------------------------------------------------
FEDERAL TRADE COMMISSION
[File No. 101 0021]
Irving Oil Limited and Irving Oil Terminals Inc.; Analysis of
Proposed Agreement Containing Consent Order To Aid Public Comment
AGENCY: Federal Trade Commission.
ACTION: Proposed Consent Agreement.
-----------------------------------------------------------------------
SUMMARY: The consent agreement in this matter settles alleged
violations of Federal law prohibiting unfair or deceptive acts or
practices or unfair methods of competition. The attached Analysis to
Aid Public Comment describes both the allegations in the draft
complaint and the terms of the consent order--embodied in the consent
agreement--that would settle these allegations.
DATES: Comments must be received on or before June 27, 2011.
ADDRESSES: Interested parties may file a comment online or on paper, by
following the instructions in the Request for Comment part of the
SUPPLEMENTARY INFORMATION section below. Write AIrving Exxon Mobil,
File No. 101 0021'' on your comment, and file your comment online at
https://ftcpublic.commentworks.com/ftc/irvingexxonmobil, by following
the instructions on the Web-based form. If you prefer to file your
comment on paper, mail or deliver your comment to the following
address: Federal Trade Commission, Office of the Secretary, Room H-113
(Annex D), 600 Pennsylvania Avenue, NW., Washington, DC 20580.
FOR FURTHER INFORMATION CONTACT: Robert E. Friedman (202-326-3316),
FTC, Bureau of Competition, 600 Pennsylvania Avenue, NW., Washington,
DC 20580.
SUPPLEMENTARY INFORMATION: Pursuant to section 6(f) of the Federal
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46(f), and Sec. 2.34 the
Commission Rules of Practice, 16 CFR 2.34, notice is hereby given that
the above-captioned consent agreement containing a consent order to
cease and desist, having been filed with and accepted, subject to final
approval, by the Commission, has been placed on the public record for a
period of thirty (30) days. The following Analysis to Aid Public
Comment describes the terms of the consent agreement, and the
allegations in the complaint. An electronic copy of the full text of
the consent agreement package can be obtained from the FTC Home Page
(for May 26, 2011), on the World Wide Web, at https://www.ftc.gov/os/actions.shtm. A paper copy can be obtained from the FTC Public
Reference Room, Room 130-H, 600 Pennsylvania Avenue, NW., Washington,
DC 20580, either in person or by calling (202) 326-2222.
You can file a comment online or on paper. For the Commission to
consider your comment, we must receive it on or before June 10, 2011.
Write ``Irving Exxon Mobil, File No. 101 0021'' on your comment. Your
comment B including your name and your state B will be placed on the
public record of this proceeding, including, to the extent practicable,
on the public Commission Web site, at https://www.ftc.gov/os/publiccomments.shtm. As a matter of discretion, the Commission tries to
remove individuals' home contact information from comments before
placing them on the Commission Web site.
Because your comment will be made public, you are solely
responsible for making sure that your comment does not include any
sensitive personal information, like anyone's Social Security number,
date of birth, driver's license number or other state identification
number or foreign country equivalent, passport number, financial
account number, or credit or debit card number. You are also solely
responsible for making sure that your comment does not include any
sensitive health information, like medical records or other
individually identifiable health information. In addition, do not
include any ``[t]rade secret or any commercial or financial information
which is obtained from any person and which is privileged or
confidential,'' as provided in Section 6(f) of the FTC Act, 15 U.S.C.
46(f), and FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2). In particular, do
not include competitively sensitive information such as costs, sales
statistics, inventories, formulas, patterns, devices, manufacturing
processes, or customer names.
If you want the Commission to give your comment confidential
treatment, you must file it in paper form, with a request for
confidential treatment, and you have to follow the procedure explained
in FTC Rule 4.9(c), 16 CFR 4.9(c).\1\ Your comment will be kept
confidential only if the FTC General Counsel, in his or her sole
discretion, grants your request in accordance with the law and the
public interest.
---------------------------------------------------------------------------
\1\ In particular, the written request for confidential
treatment that accompanies the comment must include the factual and
legal basis for the request, and must identify the specific portions
of the comment to be withheld from the public record. See FTC Rule
4.9(c), 16 CFR 4.9(c).
---------------------------------------------------------------------------
Postal mail addressed to the Commission is subject to delay due to
heightened security screening. As a result, we encourage you to submit
your comments online. To make sure that the Commission considers your
online comment, you must file it at https://ftcpublic.commentworks.com/ftc/southwesthealthalliances by following the instructions on the Web-
based form. If this Notice appears at https://
[[Page 31986]]
www.regulations.gov/!home, you also may file a comment through
that Web site.
If you file your comment on paper, write ``Irving Exxon Mobil, File
No. 101 0021'' on your comment and on the envelope, and mail or deliver
it to the following address: Federal Trade Commission, Office of the
Secretary, Room H-113 (Annex D), 600 Pennsylvania Avenue, NW.,
Washington, DC 20580. If possible, submit your paper comment to the
Commission by courier or overnight service.
Visit the Commission Web site at https://www.ftc.gov to read this
Notice and the news release describing it. The FTC Act and other laws
that the Commission administers permit the collection of public
comments to consider and use in this proceeding as appropriate. The
Commission will consider all timely and responsive public comments that
it receives on or before June 27, 2011. You can find more information,
including routine uses permitted by the Privacy Act, in the
Commission's privacy policy, at https://www.ftc.gov/ftc/privacy.htm.
Analysis of Agreement Containing Consent Order To Aid Public Comment
I. Introduction
The Federal Trade Commission (``Commission'') has accepted for
public comment, subject to final approval, an Agreement Containing
Consent Order (``Consent Agreement'') from Irving Oil Terminals Inc.
and Irving Oil Limited (collectively ``Irving''). The purpose of the
proposed Consent Agreement is to remedy the anticompetitive effects
resulting from Irving and Irving Oil Transportation Company LLC's
proposed acquisition of certain petroleum products storage and
transportation assets located in Maine from ExxonMobil Oil Corporation
(``ExxonMobil''). As originally structured, Irving would have acquired
ExxonMobil's petroleum products terminals located in South Portland and
Bangor, Maine, as well as ExxonMobil's intrastate pipeline connecting
these two terminals.
The Commission's Complaint alleges that this, if consummated, would
violate Section 7 of the Clayton Act, as amended, 15 U.S.C. 18, and
Section 5 of the Federal Trade Commission Act, as amended, 15 U.S.C.
45, by lessening competition in the gasoline and distillates
terminaling services markets in the South Portland and Bangor/Penobscot
Bay areas of Maine. To resolve these competitive concerns raised by the
original transaction, Irving will divest its acquisition rights to the
ExxonMobil Bangor terminal and intrastate pipeline as well as fifty
percent of ExxonMobil's South Portland terminal to Buckeye Partners,
L.P. and its affiliate Buckeye Pipe Line Holdings, L.P. (collectively
``Buckeye''), retaining only the right to acquire the remaining fifty
percent of the South Portland terminal. Buckeye and Irving will form a
joint venture that will purchase ExxonMobil's South Portland terminal.
Under this proposal, Buckeye alone will manage and operate this
terminal on behalf of the Irving-Buckeye joint venture. Buckeye will
purchase and operate ExxonMobil's pipeline and Bangor terminal. Irving
will enter into a throughput agreement with Buckeye at each of the
petroleum products terminals. The Commission's Consent Agreement is
intended to assure that Irving does not control the pipeline and
terminals and does not threaten Buckeye's ability to competitively
operate the South Portland terminal.
The proposed Consent Agreement, to govern for a period of ten
years, prevents Irving from acquiring additional share in, managing, or
operating the South Portland terminal absent the Commission's prior
approval. The Consent Agreement also requires prior notification should
Irving acquire any form of additional ownership interests in petroleum
products transportation or storage assets located in Maine. Finally,
the proposed Consent Agreement imposes firewall and monitor provisions
to prevent Irving from accessing and using confidential customer
information. This remedy preserves competition in the gasoline and
distillates terminaling services markets in both the Bangor/Penobscot
Bay and South Portland areas of Maine.
The proposed Consent Agreement has been placed on the public record
for thirty days to allow interested persons to comment. Comments
received during this period will become part of the public record.
After thirty days, the Commission will review the proposed Consent
Agreement and the comments received, and will decide whether to
withdraw the proposed Consent Agreement, modify it, or make it final.
II. Parties
Irving is a family-owned business based in St. John, New Brunswick,
Canada. Irving owns the largest refinery in Canada and owns, in whole
or in part, six terminals in Canada and the northeastern United States.
Irving supplies branded and unbranded petroleum products in Canada and
throughout New England to third-party distributors, retailers, various
other re-sellers, and governmental and commercial end users. Irving
also owns retail travel plazas that sell gasoline and diesel petroleum
products. In Maine, Irving owns a terminal in Searsport and co-owns a
terminal with CITGO Petroleum Corporation in South Portland.
ExxonMobil is the world's largest publicly traded petroleum and
natural gas company worldwide. ExxonMobil produces crude oil and
natural gas, refines petroleum products, and transports and sells crude
oil, natural gas, and refined petroleum products. ExxonMobil owns
terminals located in South Portland and Bangor, Maine, as well as an
intrastate pipeline that connects these two terminals.
Buckeye is a publicly traded partnership that owns and operates one
of the largest independent refined petroleum products pipeline systems
in the United States. Buckeye owns or manages approximately 7,500 miles
of pipeline, owns approximately 70 active refined petroleum products
terminals, and markets refined petroleum products in some of the
geographic areas served by its pipeline and terminal operations.
Buckeye is not a party to the original transaction and does not
currently market, transport, or store light petroleum products in
Maine.
III. The Relevant Markets and Their Structure
The Commission's Complaint alleges that the original transaction
would pose substantial antitrust concerns in the gasoline and
distillates terminaling services markets in the Bangor/Penobscot Bay
and South Portland areas of Maine.
Terminals generally consist of a number of storage tanks and
loading ``racks'' that pump fuels into tanker trucks for further
delivery. Terminals are specialized facilities connected to one or more
fuel supply sources, have the capacity to store fuel shipments, and
must be configured properly to distribute the fuel to customers. Light
petroleum products terminals are specialized facilities that receive
gasoline, diesel fuel, heating oil, kerosene, and jet fuel, among other
products, by pipeline, by water, by rail, or directly from refinery
production. These products are stored or redistributed by pipeline,
water, rail, or truck. Terminals are critical to the sale and
distribution of transportation fuels and perform value-added services,
such as handling and injection of motor fuel additives (including
ethanol) as petroleum products are redelivered across the truck rack.
Terminaling services consist of a cluster of services
[[Page 31987]]
related to the delivery, storage, and throughput of petroleum products.
The Commission's Complaint alleges that relevant product markets
within which to analyze the original transaction are gasoline
terminaling services and distillates terminaling services. Terminals
that store gasoline compete in both the gasoline terminaling services
and distillates terminaling services markets. However, terminals that
store only distillates compete only in the distillates terminaling
services market. Two relevant geographic areas in which to analyze the
effects of the original transaction on gasoline and distillates
terminaling services are the Bangor/Penobscot Bay and the South
Portland areas of Maine. The Bangor/Penobscot Bay area encompasses the
state of Maine north of Waterville, including Bangor, Searsport, and
Bucksport, Maine. The South Portland area encompasses the state of
Maine south of Waterville, including South Portland.
Irving and ExxonMobil are two of three firms that can independently
offer gasoline terminaling services in the Bangor/Penobscot Bay area
and two of four in the South Portland area. Additionally, these
companies are two of four firms independently offering distillates
terminaling services in the Bangor/Penobscot Bay area and two of six in
the South Portland area. The original acquisition would have
substantially increased concentration in each of the above markets.
IV. Effects of the Acquisition
The Commission believes that the original transaction would
eliminate the actual, direct, and substantial competition between
Irving and ExxonMobil, both: (1) Increasing the likelihood that Irving
would unilaterally exercise market power in the Bangor/Penobscot Bay
area gasoline terminaling services market, and (2) enhancing the
likelihood of collusion or coordinated interaction among the remaining
firms in the South Portland area gasoline terminaling services market
and both the Bangor/Penobscot Bay and South Portland area distillates
terminaling services markets.
The ExxonMobil pipeline, which originates in South Portland and
whose only access point is the ExxonMobil South Portland terminal,
supplies the terminals located in Bangor, Maine. Marine vessels supply
the remaining Bangor/Penobscot Bay area terminals as well as the South
Portland area terminals. Because importing gasoline from Europe on
large cargo vessels is generally less costly than shipping it from
domestic ports on smaller barges, most Maine suppliers import gasoline
from outside the United States.
Controlling the South Portland terminal would allow Irving to
control the price of bulk gasoline deliveries to the Bangor/Penobscot
Bay area. Irving would likely be able unilaterally to raise the price
for or restrict the availability of gasoline terminaling services in
the Bangor/Penobscot Bay area and raise gasoline prices to customers
served from this area's terminals. Additionally, the original
transaction would provide Irving with sufficient terminal capacity to
restrict alternative suppliers' ability to import gasoline into South
Portland area terminals at current prices. The ability to restrict
these imports would allow Irving to increase the cost of gasoline
supplied to retail stations and other consumers from the Bangor/
Penobscot Bay area terminals.
Because the ExxonMobil assets carry both gasoline and distillates,
the original transaction also would likely enhance the likelihood of
coordination to raise fees for and reduce the quality and availability
of terminaling services among the remaining firms that could
independently provide distillates terminaling services in the Bangor/
Penobscot Bay area and provide gasoline or distillates terminaling
services in South Portland area.
Entry into the gasoline and distillates terminaling services
markets in the Bangor/Penobscot Bay and South Portland areas would not
be timely, likely, or sufficient to prevent or defeat the
anticompetitive effects of the original transaction. Entering these
markets is costly, difficult, and unlikely due to, among other things,
the difficulty of obtaining regulatory approvals and the presence of
excess terminal capacity in both markets. Facing substantial sunk
costs, a new entrant would not likely invest in a new terminal in these
markets, all of which presently have sufficient capacity. Further, due
to the significant cost and limited ability to attract large customer
volumes, a terminal that cannot currently store gasoline would not
likely reconfigure its tanks to store gasoline in response to a small
but significant price increase in gasoline terminaling services.
V. The Proposed Consent Agreement
For a duration of ten years, the proposed Consent Agreement
addresses the competitive risk that Irving may: (1) Gain control of the
Irving-Buckeye South Portland terminal in the future, allowing it to
restrict supply to the Bangor terminals and imports into South
Portland, or (2) access and use confidential business information in an
anticompetitive manner. By imposing certain prior approval and prior
notice provisions on Irving and prohibiting it from taking certain
actions, the remedy ensures that the Irving-Buckeye South Portland
terminal will continue to operate independently of, and in competition
with, other Maine terminals. Further, by imposing firewall and monitor
provisions, the remedy guards against Irving accessing and using
confidential information in an anticompetitive manner.
Pursuant to the proposed Consent Agreement, Irving must obtain
Commission approval prior to: (1) Acting as either manager of the
Irving-Buckeye joint venture or operator of the joint venture terminal,
with a limited sixty-day exception in the event that Buckeye is unable
to serve in either capacity, (2) acquiring additional storage or
throughput rights at the joint venture terminal, with a limited one-
month exception, or ownership interests in the joint venture, or (3)
modifying its assignment agreements with Buckeye. Paragraphs II.B. and
II.E. Further, the Consent Agreement requires Irving to notify the
Commission prior to acquiring any form of additional ownership
interests in petroleum products transportation or storage assets
located in Maine. Paragraph IV. Additionally, the Consent Agreement
prohibits Irving from taking action that would discourage or prevent
Buckeye from offering third parties terms equal to Irving's terms at
the South Portland terminal. Paragraph II.C.
The proposed Consent Agreement also prohibits Irving from
receiving, sharing, or using any confidential business information with
limited exceptions that allow the information to be shared where
required and only to those with written agreements to maintain the
information's confidentiality. Paragraph III. To this end, the Consent
Agreement places an enforcement obligation on Irving and provides for
the appointment of a monitor to oversee the implementation of these
provisions. Paragraphs III.C. and V. Such a monitor will review
Irving's compliance proposals and assist in evaluating their adequacy.
Paragraph V.
The proposed Consent Agreement includes the standard divestiture
trustee provision pursuant to which the Commission may appoint a
trustee if Irving fails to effectuate the divestiture in a manner that
complies with the Consent Order. Paragraph VI.A. In this case, the
trustee will divest the assets, subject to Commission prior approval,
within twelve months. Paragraph VI.E.
[[Page 31988]]
VI. Opportunity for Public Comment
The proposed Consent Agreement has been placed on the public record
for thirty days for receipt of comments by interested persons. Comments
received during this period will become part of the public record.
After thirty days, the Commission will review the comments received,
and decide whether to withdraw from the proposed Consent Agreement,
modify it, or make it final. By accepting the proposed Consent
Agreement subject to final approval, the Commission anticipates that
the competitive problems alleged in the complaint will be resolved. The
purpose of this analysis is to inform and invite public comment on the
proposed Consent Agreement, including the proposed remedy, and to aid
the Commission in its determination of whether to make the proposed
Consent Agreement final. This analysis is not intended to constitute an
official interpretation of the proposed Consent Agreement, nor to
modify the terms of the proposed Consent Agreement in any way.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2011-13598 Filed 6-1-11; 8:45 am]
BILLING CODE 6750-01-P
