El Paso Paul Kayser

1
LNG Deepwater Ports
Environmental Business Council New England
Seminar January 20, 2006
Don Beckham, engineering-environmental Management
for Mark PrescottChief, Deepwater Ports
Standards Division USCG Headquarters
2
Coast Guards Role in Liquefied Natural Gas Ports

• Background Recent Changes to the DWPA
  Application Process
• Status of Current Deepwater Port Applications
• Lessons Learned and Areas of Concern

3
History and Background

• The Deepwater Port Act passed in 1975, applied
  only to oil
• Regulate Commerce
• Promote Transportation Efficiency
• Protect the Environment
• LOOP is only US DPA oil port has operated
  since 1981
• The Deepwater Ports Modernization Act of 1996
• Update existing Act and reduce regulatory
  burden
• Recognize effective competition exists
• Promote innovation, flexibility, and efficiency
• Permit transportation of domestic oil

4
History and Background

• Under the Deepwater Port Act, Secretary of
  Transportation is responsible for issuing,
  amending or rescinding of a license
• After the 1996 DWP Modernization Act, Secretary
  delegated processing authority to MARAD
  and Coast Guard
• On June 18, 2003 the Secretary delegated the
  licensing authority to the Administrator
  of MARAD
• May 2002 Coast Guard Published Notice of
  Proposed Rulemaking to update Deepwater Port
  regulations for oil

5
History and Background

• Industry inquiries regarding deepwater ports
  for
• natural gas began in 2000
• Following 9/11/2001 public government concerns
  over safety/security of onshore LNG facilities
  grew
• November 25, 2002, President Bush signs the
  Maritime Transportation Security Act of 2002
  (MTSA), amending the DWPA to include
  natural gas

6
Recent Changes to the DWPA

• How MTSA changed the existing DWPA
• Define natural gas and deepwater port
• Remove managed access restrictions
• Remove geographic area restrictions (for
  natural gas only)
• Issue regulations addressing natural gas
• NEPA Compliance
• It didnt change the amount of time allowed to
  complete the decision making process.

7
Application Process

• Application processing requirements found in
  Title 33 Code of Federal Regulations, Part
  148
• Submitted to USCG with application fee - 350K
• Applicant responsible for costs incurred by
  Federal
• government to process application
• Coast Guard Maritime Administration depend
  heavily on input from other agencies

8
Application Process

• Statutory time limit of 356 days
• 215 review for completeness/publish notice
• 240 develop EIS/hold final public hearing
• 90 receive comment/issue ROD
• USCG and MARAD must consult with other Federal
• Agencies and Adjacent Coastal State
• Development of Environmental Impact Statement
  is the majority of the pre-Record of
  Decision efforts

9
Coast Guard/MARAD Review Process
356DAYS
Public Notice
Data Gathering/Analysis
Public Meetings
Draft EIS
Final EIS
Final Public Hearing
Record of Decision
10
Key Points about the Application Process

• Challenging and evolving process new areas, new
  concepts (offshore Boston)
• Its difficult to have an application deemed
  complete in the first 21 days
• Even after it is deemed complete, there is a
  good possibility that more information will be
  needed
• If the applicant doesnt have the information, we
  will very likely stop the clock

11
Key Points about the Application Process

• Need to bring on an environmental consultant on
  board ASAP
• Single EIS used for all Federal agency permitting
• Meetings held in the adjacent coastal state for
  Scoping, Draft EIS, Final Public Hearing
• Considerable work done with other agencies to
  facilitate the process and maintain consistency
• Produce preliminary, interim and final/public
  version of Draft and Final EIS

12
Current Status of Applications

• Record of Decision / License issued
• Chevron -- Port Pelican Gulf of Mexico (Deferred
  by Chevron)
• Excelerate Gulf Gateway Gulf of Mexico
  (GoM)First shipment received March 2005
• Shell Gulf Landing GoM

13
Current Status of Applications

• Applications Submitted and Being Processed
  
• BHP Billiton Cabrillo Port California
• Crystal Clearwater California
• Freeport McMoRan Main Pass Energy Hub GoM
• ConocoPhillips Compass Port GoM
• ConocoPhillips Beacon Port GoM
• Suez Neptune Port New England
• Excelerate Northeast Gateway New England
• TORP Bienville Offshore Energy Terminal GoM

14

• Post Record of Decision Requirements
• Final Operations Manual Security Plan
• Plan Review and installation oversight
• Establishment of Safety Zones and Areas To
  Be Avoided

15
The Coast Guard and the Maritime Administration
are dedicated to working with industry, other
Federal Agencies and the Adjacent Coastal State
to ensure a safe, secure and environmentally
responsible transportation system exists to meet
the energy needs of the U.S.
16
Finding more information WEBSITES
http//www.uscg.mil/hq/g-m/mso/mso5.htm
Deepwater Ports Standards Division homepage
List of applications Deepwater Port Act
Docket Management System Agency MOU for
Deepwater Ports http//www.uscg.mil/hq/g-m/n
vic/index00.htm Navigation Vessel
Inspection Circular 03-05 and 05-05
Guidance for use of 3rd party for plan review and
oversight and Guidance on USCG
involvement with onshore proposals
17
BACKGROUND SLIDES
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