ALJ/DUG/tcg Mailed 2/25/2005

Decision 05-02-044 February 24, 2005

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Expedited Application of LB Pacific, LP, PPS Holding Company and Pacific Terminals LLC for Authorization for LB Pacific, LP to Acquire Control of Pacific Terminals LLC.	Application 04-11-014 (Filed November 15, 2004)
Expedited Application of LB Pacific, LP, PPS Holding Company and Pacific Pipeline System LLC for Authorization for LB Pacific, LP to Acquire Control of Pacific Pipeline System LLC.	Application 04-11-015 (Filed November 15, 2004)

O P I N I O N

TABLE OF CONTENTS

Title Page

O P I N I O N 1

1. Summary 2

2. Background 2

a. The Pipeline - PPS 3

b. The Terminal - PT 4

c. Current Owners of PPS and PT 4

d. PPS Holding's Current Role 5

3. The Proposed Transactions 5

a. The Buyer - LB Pacific 5

4. Appropriate Review of Transfer 6

a. CEQA 6

b. Required Commission Authority 6

5. Procedural History 7

a. Motions to Consolidate 7

b. Motion for Confidential Treatment 7

6. Approval of Transfer 9

a. CEQA 9

b. Authority 10

c. Conclusion 11

7. Assignment of Proceeding 11

8. Comments 11

Findings of Fact 11

Conclusions of Law 12

ORDER 13

O P I N I O N

1. Summary

LB Pacific, LP (LB Pacific or Buyer), PPS Holding Company (PPS Holding or Seller) and Pacific Pipeline System LLC (PPS or the Pipeline) together request authorization pursuant to Pub. Util. Code¹ § 854(a) for LB Pacific to acquire control of PPS. In addition, LB Pacific (again as Buyer), PPS Holding (again as Seller) and Pacific Terminals LLC (PT or the Terminal) together request authorization pursuant to § 854(a) for LB Pacific to acquire control of PT. Collectively all four companies are the Joint Applicants. These applications are consolidated. In addition to § 854(a), it is also necessary to consider § 851 and the California Environmental Quality Act (CEQA) in order to authorize transfer of control.

The joint applications are both unopposed, in the public interest, and are both granted.