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LAKEHEAD RECEIVES DECISION ON PIPELINE TARIFF RATES

 DULUTH, Minn., Dec. 7 /PRNewswire/ -- Lakehead Pipe Line Partners L.P. (NYSE: LHP) today announced that the tariff rates previously agreed upon with Federal Energy Regulatory Commission staff have generally been approved by a FERC Administrative Law Judge. These tariff rates represent an approximate 8 percent increase for the balance of 1992 over the rates charged prior to May 3, 1992, with an additional 4 percent increase for the first half of 1993. The Administrative Law Judge's initial decision is still subject to review by the FERC.
 Lakehead filed new tariffs in April 1992, to be effective May 2, 1992, which represented an 18 percent increase over rates previously charged. The tariffs were suspended for one day and set for investigation before FERC. In May 1993, Lakehead and FERC staff reached a negotiated agreement which, except for minor adjustments, has now been approved by the Administrative Law Judge.
 Lakehead has made provision of approximately $19 million for a contingent rate refund to shippers, which reflects the agreement reached with FERC staff. If the Commission affirms the Administrative Law Judge's decision, the provision will largely offset refunds of approximately $22 million to shippers.
 Lakehead also filed new tariffs on June 4, 1993, which represented an additional increase of approximately 2 percent over the previously agreed-upon level and were based on the regulatory methodology specified in the FERC staff agreement. This rate filing has been challenged by shippers and is subject to review. The Administrative Law Judge's decision regarding the April 1992 rate filing is not expected to have any material adverse effects on the outcome of the June 4, 1993, filing.
 Lakehead views the Administrative Law Judge's decision as a positive step toward the resolution of its rate case. A final decision from the FERC is not expected for several months. Therefore, Lakehead is reviewing the timing and extent to which this decision will impact increased cash distribution levels.
 The Preference Units of Lakehead Pipe Line Partners L.P. are traded on the New York Stock Exchange under the symbol `LHP.'
 -0- 12/7/93
 /CONTACT: Jon Staudohar, Investor Relations, 218-725-0103/
 (LHP)


CO: Lakehead Pipe Line Partners L.P. ST: Minnesota IN: OIL SU:

LS-MF -- LA039 -- 1497 12/07/93 19:17 EST
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Publication:PR Newswire
Date:Dec 7, 1993
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