Sunoco 2012 Annual Report Download - page 7

to the Mid-Valley pipeline, other third-party pipelines and our Nederland Terminal. Revenues are generated from
tariffs paid by shippers utilizing our transportation services. These tariffs are filed with the Railroad Commission
of Texas (“Texas R.R.C.”) and the Federal Energy Regulatory Commission (“FERC”).
We also own and operate a crude oil pipeline and gathering system in Oklahoma. This system contains
approximately 850 miles of crude oil trunk pipelines and approximately 200 miles of crude oil gathering
pipelines. We have the ability to deliver substantially all of the crude oil gathered on our Oklahoma system to
Cushing. Revenues are generated on our Oklahoma system from tariffs paid by shippers utilizing our
transportation services. We file these tariffs with the Oklahoma Corporation Commission (“OCC”) and the
FERC. We are one of the largest purchasers of crude oil from producers in the state, and are the primary shipper
on our Oklahoma system.
Midwest United States
We are the majority owner of approximately 1,000 miles of a crude oil pipeline that originates in Longview,
Texas and passes through Louisiana, Arkansas, Mississippi, Tennessee, Kentucky and Ohio, and terminates in
Samaria, Michigan. This pipeline provides crude oil to a number of refineries, primarily in the midwest
United States.
In addition, we own approximately 100 miles of crude oil pipeline that runs from Marysville, Michigan to
Toledo, Ohio, and a truck injection point for local production at Marysville. This pipeline receives crude oil from
the Enbridge pipeline system for delivery to refineries located in Toledo, Ohio and to Marathon’s Samaria,
Michigan tank farm, which supplies its refinery in Detroit, Michigan.
Revenues are generated from tariffs paid by shippers utilizing our transportation services. These tariffs are
filed with the FERC.
Crude Oil Acquisition and Marketing
Our crude oil acquisition and marketing activities include the gathering, purchasing, marketing and selling
of crude oil primarily in the mid-continent United States. The operations are conducted using approximately
200 crude oil transport trucks and third-party assets and approximately 120 crude oil truck unloading facilities.
Specifically, the crude oil acquisition and marketing activities include:
• purchasing crude oil at the wellhead from producers and in bulk from aggregators at major pipeline
interconnections and trading locations;
• storing inventory during contango market conditions (price of crude oil for future delivery is higher
than current prices);
• buying and selling crude oil at different locations and for different grades in order to maximize value
for producers;
• transporting crude oil on our pipelines and trucks or, when necessary or cost effective, pipelines or
trucks owned and operated by third parties; and
• marketing crude oil to major integrated oil companies, independent refiners and resellers in various
types of sale and exchange transactions.
We completed the following acquisition in the crude oil acquisition and marketing business since
December 31, 2009:
•Crude Oil Acquisition and Marketing Business—In August 2011, we acquired a crude oil acquisition
and marketing business from Texon L.P. (“Texon”) which consisted of a 75 thousand bpd crude oil
purchasing business and gathering assets in 16 states, primarily in the mid-continent United States.
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