[Federal Register Volume 60, Number 53 (Monday, March 20, 1995)]
[Notices]
[Pages 14743-14747]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-6702]



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DEPARTMENT OF ENERGY
[FERC Docket No. CP95-35-000; PRPB Docket No. 94-62-1219-JPU]


EcoElectrica, L.P.; Notice of Intent to Prepare a Joint Draft 
Environmental Impact Statement/Preliminary Environmental Impact 
Statement for the Proposed EcoElectrica LNG Import Terminal and 
Cogeneration Project in Guayanilla Bay, Puerto Rico; Request for 
Comments on Environmental Issues and Notice of Scoping Meetings

March 14, 1995.
    The staff of the Federal Energy Regulatory Commission (FERC or 
Commission) will prepare a joint environmental impact statement (EIS) 
with the Puerto Rico Planning Board (PRPB or Board). The document will 
discuss the environmental impacts of the construction and operation of 
facilities proposed for EcoElectrica L.P. (EcoElectrica) Liquefied 
Natural Gas (LNG) Import Facility and Cogeneration Project in 
Guayanilla Bay, Puerto Rico. The FERC and the PRPB will use this joint 
EIS in their decision-making process (whether or not to authorize the 
proposed project).\1\

    \1\EcoElectrica filed an application with the Commission on 
October 25, 1994 pursuant to Section 3 of the Natural Gas Act and 
Parts 153 and 380 of the Commission's regulations. The action 
involves authorization of a place of import and the construction and 
operation of facilities at this place of import. On November 23, 
1994, the Land Use Consultation was filed with the PRPB pursuant to 
Law 75 of June 24, 1975.
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    The PRPB will be the lead agency for the Commonwealth of Puerto 
Rico and the FERC will be the lead Federal agency in the preparation of 
this joint EIS. The joint document will avoid duplication of 
environmental analyses, and satisfy the requirements of Puerto Rico's 
law requiring an EIS under the Puerto Rico Environmental Quality Board 
(PREQB) Regulations (Article 4[c] of Law No. 9) and the National 
Environmental Policy Act (NEPA).

Summary of the Proposed Project

    EcoElectrica is seeking approval for a 36-acre site in Guayanilla 
Bay near Ponce, Puerto Rico, to import LNG for power generation. The 
facilities that require Commission approval (``jurisdictional'' 
facilities) include the construction and operation of the LNG 
facilities. This would consist of a marine unloading facility, two LNG 
storage tanks with individual capacities of up to 1,000,000 barrels, a 
vaporization system, and a natural gas accumulator pipeline.
    In addition, EcoElectrica proposes to construct a ``non-
jurisdictional'' cogeneration facility that will use the imported LNG 
as a fuel source for power [[Page 14744]] generation. The power plant 
facility would consist of two gas turbines operating on natural gas and 
one steam turbine with a net station output of 461 megawatts (MW) at 
230 kilovolts (kV). The gas turbines could also use propane (LPG) as a 
secondary fuel and high grade fuel oil as an emergency fuel.
    The electricity generated by EcoElectrica's cogeneration facility 
would be purchased by the Puerto Rico Electric Power Authority (PREPA), 
the government-created public utility that supplies nearly all of the 
electric power consumed in Puerto Rico. PREPA has identified a need for 
additional electric generating capacity of 1,200 MW by the year 2000 to 
meet future demand growth, enhance system reliability and to diversify 
the fuel sources that generate electricity.
    EcoElectrica also proposes to construct a desalination facility 
that would generate up to 4,000,000 gallons of freshwater per day. 
Freshwater uses at the power plant could require up to 1,000,000 
gallons per day. The surplus capacity would be sold for public use.
    Other facilities necessary for the operation of the cogeneration 
facility include a 2.3-mile long, 230-kV transmission line connecting 
the plant substation to an existing PREPA substation; a 3.5-mile long, 
10-inch diameter pipeline to supply LPG to the facility; and a water 
pipeline for connecting into an existing offsite water supply or to 
outside delivery systems.

Summary of the Proposed Facilities

    The general location of the proposed facilities for the 
EcoElectrica LNG/Cogeneration Project is shown in figure 1. The 
proposed LNG import terminal, cogeneration power plant, and 
desalination plant will be located in Penuelas, about 9 miles west of 
the City of Ponce on the south coast of Puerto Rico. The proposed 36-
acre site is at the end of a peninsula presently owned by Union Carbide 
Caribe, Inc. (Union Carbide). The site is bordered on the north by 
Union Carbide's existing fuel storage tank farm operations and on the 
east, west, and south by Tallaboa and Guayanilla Bays (see figure 2). 
The site currently contains a decommissioned naptha storage tank and 
ring foundation for a demolished storage tank.
    Major facilities of the proposed project can be divided between LNG 
import facilities and cogeneration/desalination facilities.

LNG Import Facilities

    The LNG import facilities include a ship unloading system, two LNG 
storage tanks, and LNG vaporization and vapor handling systems. The 
proposed project facilities would be designed, constructed, and 
maintained to comply with the Department of Transportation (DOT) 
Federal Safety Standards for Liquefied Natural Gas Facilities (49 Code 
of Federal Regulation (CFR) Part 193). The facilities constructed at 
the site would also meet the National Fire Protection Association 59A 
LNG standards. The marine cargo transfer system and any appurtenances 
located between the vessel and the last valve located immediately 
before a storage tank will comply with the U.S. Coast Guard (USCG) 
regulations in 33 CFR Part 127 and Executive Order 10173.
    Liquefied natural gas would be imported to Puerto Rico for use in 
the power plant portion of the project. No firm supply of LNG has been 
identified at this time. EcoElectrica is considering potential LNG 
suppliers from Trinidad and Nigeria. It is anticipated that the project 
would import up to 130 million MMBtu per year, requiring between 10 and 
60 LNG tanker unloadings annually.
    The LNG tankers that would be used to transport the LNG would be 
the 125,000 cubic meter class and would use any of six Coast Guard 
approved containment systems. Any LNG carrier used for the project 
would be built in strict accordance with all current regulatory and 
classification society requirements.
    The ship unloading system would consist of unloading facilities and 
a pier. The unloading facilities are designed to handle LNG ships with 
a capacity of up to 135,000 cubic meters with a draft of up to 40 feet. 
Four breasting and mooring dolphins are proposed for securing the LNG 
ships to the pier's berth. The tanker berth would be roughly parallel 
to the shore in 50 feet of water. The unloading platform would be a 
two-level structure with a 40-foot wide by 100-foot long lower level 
and a 20-foot wide by 76-foot long upper level. The pier is proposed to 
be 27 feet wide and 1,800 feet long. It would be constructed on 20- to 
30-inch diameter steel pipe piles, or prestressed concrete tubes. The 
pile bents are expected to be constructed on 70-foot spacings. Pier 
framing, roadway, and spill impoundment system contained within the 
pier would be constructed of reinforced and prestressed concrete.
    On-board pumps would deliver the LNG to the terminal. Four 
articulated marine unloading arms would be installed on the berth for 
this purpose. Three of the arms would be used to receive LNG from the 
ship, and one would return natural gas vapor to the ship. Fire fighting 
and fire and leak detection systems would be installed on the pier to 
comply with 33 CFR Part 127. Potential LNG spills from piping at the 
unloading platform, on the piping pier, and onshore would be impounded 
in concrete trenches located below the piping. The impoundment trenches 
would drain to a single impoundment basin located onshore near the end 
of the pier.
    LNG would be stored in two double-containment insulated tanks. The 
tanks would be 166 feet in height and 254 feet in diameter with an 
individual capacity to store up to 1,000,000 barrels of LNG each at a 
temperature of minus 260 deg.F and a pressure of 2.0 pounds per square 
inch gauge (psig). Each storage tank would consist of an inner tank 
constructed of 9 percent nickel steel, and an outer tank constructed of 
carbon steel. Outer walls would be designed to contain the product 
vapors and protect the insulation systems from moisture. Insulation 
would consist of perlite installed between the inner and outer tank 
walls. Each LNG tank would be surrounded by a concrete wall capable of 
containing 110 percent of the tank's LNG contents. This method of 
construction would ensure spill containment even if there were a 
complete rupture of the double walled metal tanks.
    LNG from the storage tanks would be pressurized, vaporized, and 
heated so that natural gas can be delivered to the power plant turbines 
at the required pressure, temperature, and flow. Pumps in the LNG tanks 
would transfer and pressurize the LNG to between two and six 95 million 
cubic feet per day vaporizers. Two shell and tube vaporizers would use 
a water-ethylene glycol solution heated by the air intakes of the gas 
turbines. Four open rack vaporizers would use warm seawater to provide 
the heat required for vaporization. These are two independent systems.

Cogeneration Facilities

    The cogeneration facilities can be subdivided into three distinct 
aspects: power plant facilities, cooling water systems, and 
desalination facilities. All facilities will meet all applicable 
Federal and Commonwealth laws. The cogeneration facilities are ``non-
jurisdictional'' from the FERC perspective, and will not have any 
permitting authority for the ``non-jurisdictional'' facilities. The 
PRPB will have a primary role in assuring that all aspects of the 
cogeneration facilities meet the Commonwealth of Puerto Rico laws and 
regulations, including environmental regulations. Since both agencies 
require a NEPA document, this joint EIS will serve the needs of both 
agencies. [[Page 14745]] 
    The power plant would be located on about 11 acres of the 36-acre 
site (see figure 2). The plant would have a net station output of about 
461 MW at 230 kV when operating on natural gas under base load 
conditions. The plant would consist of two gas combustion turbines 
operating principally on natural gas and one steam turbine. The 
turbines could also be operated on LPG as a secondary fuel supply and 
high grade fuel oil as an emergency source. The LPG would be stored at 
a nearby location and transported to the facility by a proposed 10-inch 
diameter pipeline. Fuel oil would be stored on the site in a storage 
tank.
    The power plant facility would consist of a building to house the 
steam turbine generator, condenser, control room, electrical room, 
battery room, maintenance area, offices, and other activities. 
Administrative and storage buildings would also be constructed on the 
site. These buildings would serve both the LNG import terminal and 
power plant facilities. A perimeter security system and fire 
protection/detection system would be monitored both from the 
administrative building and the power plant control room.
    The power plant facility would also include a substation for the 
transfer of electricity generated by the plant to the PREPA system. The 
substation would be designed to inter-tie the EcoElectrica power plant 
facility to the PREPA circuits. The substation system would also be 
used to supply power to the LNG facility's electrical equipment.
    A cooling water system would be constructed at the facility to 
provide for power plant cooling and desalinated water production. 
EcoElectrica has proposed to use a closed cycle seawater cooling tower 
(SWCT) system. Other methods of cooling would be analyzed as possible 
alternatives.
    The SWCT system would consist of 10 cells. Each cell would be 50 
feet in length and 50 feet in width. The overall site area would 
encompass 100 feet by 250 feet, with a tower 55 feet high from grade to 
the top of the fan stack. Water would be obtained from Guayanilla Bay 
from an intake pipeline placed under the LNG pier. About 13,000 gallons 
per minute of the SWCT blowdown would be mixed with other treated site 
water discharge for return to Guayanilla Bay through an offshore 
diffuser or discharged into Tallaboa Bay via a near-shore outfall 
structure. Water temperatures of the outfall would not exceed 
91.4 deg.F under any operating scenario.
    EcoElectrica has also proposed construction of a desalination plant 
to provide freshwater for power plant operation and to supply potable 
water for sale to other users. Freshwater uses at the power plant would 
include potable water for internal consumption, utility water, and 
after further treatment, high quality boiler feedwater totaling up to 
1,000,000 gallons per day. The maximum freshwater production rate 
proposed for the desalination plant is expected to be up to 4,000,000 
gallons per day. The surplus capacity would be sold for public use.
    A Multi-Stage Flash (MSF) distillation technology is proposed to be 
used for desalination. MSF distillation plants use thermal energy, 
generally supplied in the form of low pressure steam to desalinate 
seawater. The combined cycle power plant facility would supply 
sufficient amounts of steam at suitable temperatures and pressures to 
drive the desalination process.

Offsite Facilities

    Several offsite facilities are associated with the project. These 
include an electric transmission line, a natural gas accumulator 
pipeline, an LPG pipeline, a potable water supply line and new access 
roads (see figure 2 for locations of these facilities).
    Electric output from the power plant would be supplied to the PREPA 
power grid. A 2.3-mile long, 230-kV transmission line would be 
constructed between the power plant substation and the existing PREPA 
substation. The line would be constructed on steel structures in a 100-
foot wide right-of-way. Existing easements for the transmission 
corridor would be used whenever possible.
    LPG would be used as the primary fuel during the construction of 
the LNG import facility, and as a backup fuel after the LNG facility is 
operational. LPG would be supplied to the power plant through a 10-inch 
diameter pipeline extending about 3.5 miles from the existing ProCaribe 
LPG terminal to the power plant (see figure 2). The LPG supply line 
would follow previously permitted pipeline routes and would use 
existing pipe racks wherever possible.
    Normally, a natural gas accumulator vessel would be incorporated 
into the power plant facility infrastructure. It is used to ensure that 
natural gas volumes are available to prevent an instantaneous 
``emptying'' or ``voiding'' of the supply line during startup of the 
plant and to prevent over-pressurization of the line after a shutdown. 
Instead, EcoElectrica has proposed to use a pipeline ``stub'' rather 
than a vessel that would be built to the northern edge of the facility 
along the LPG pipeline right-of-way. This line would serve both as the 
accumulator line for the power plant and potentially as a feed for 
future natural gas refueling efforts should these markets develop. 
EcoElectrica is not seeking approval for additional sales to sources 
outside this proposed action.
    A water pipeline is also proposed for construction. Surplus 
freshwater would be marketed to the Puerto Rico Aqueduct and Sewer 
Authority (PRASA) or to other municipal, commercial, or retain 
customers. An exact alignment for connection to offsite water supplies 
or delivery systems outside the easements acquired from the present 
owner (Union Carbide) has not been obtained. Those easements and 
environmental documentation would be the responsibility of the PRASA or 
other users.
    Access roads on the Union Carbide property and the proposed site 
would be developed or upgraded to bring workers and construction 
materials from route PR-127 and the existing Union Carbide dock (see 
figure 2). Roads constructed or upgraded would remain active during 
operation of the facility for materials' deliveries and worker access.

Construction

    The LNG import facility and cogeneration facilities at Guayanilla 
Bay would be constructed by EcoElectrica using conventional 
construction procedures and techniques. Two design and construction 
schedules have been developed: one for the cogeneration facilities and 
another for the LNG import facilities.
    The power plant and desalination facilities would be designed and 
constructed over a 18 to 24-month period. Site preparation and levee 
construction would begin six months after the start of basic 
engineering design. Preparation of the site would require raising the 
base elevation of the existing site interior (about 5 feet above mean 
sea level [msl]) to about 10 feet above msl. Increasing the existing 
perimeter height of the levee from 10 feet to between 12 and 16 feet 
above msl would also be done. The interior of the site would be filled 
with imported soils and caliche. The combined levee construction and 
filling of the site interior would require about 175,000 cubic yards of 
materials that would be obtained locally from existing sources and 
transported to the site.
    The southeast quadrant of the proposed site would be used for a 
construction material laydown area and the location of temporary 
offices. A permanent access road and temporary construction worker 
parking area would be located north of the laydown area. An existing 
construction off-loading [[Page 14746]] dock would be used during 
construction (see figure 2).
    Foundation construction would begin about six months after site 
preparation activities are begun. Construction of the power plant and 
desalination facilities would be complete in about one year from the 
start of foundation construction. Startup of the facility is 
anticipated two years after the start of basic engineering. Commercial 
operation would begin after a one-month startup and commissioning 
period.
    The power plant structure would be about 75 feet high and 
constructed of a steel frame with insulated metal siding and roofing. 
The structures will be designed following all Federal, Commonwealth, 
and local building codes.
    Construction of the proposed LNG facilities would follow a similar 
schedule. From basic engineering design to commercial operation would 
take about 24 to 30 months. Foundation installation on the LNG facility 
would begin about six months after the start of power plant 
foundations.
    Marine terminal construction would begin four months after the 
start of foundation construction. The pier would connect the shore 
facilities with the unloading platform.
    LNG tank construction would begin one month after the start of the 
marine terminal construction. The tanks would be constructed on 
insulated concrete pads. The tanks would be designed and constructed 
following all requirements of American Petroleum Institute (API) 620 
and 49 CFR Part 193. Completion of all LNG facilities is anticipated 
about 18 months after initial foundation work. Commercial operation of 
the LNG facility is expected to start about one year after the start of 
commercial operation of the cogeneration facilities.

The EIS Process

    The NEPA requires the Commission to take into account the 
environmental impacts that could result from a major Federal action 
whenever it considers the approval of a place of import for natural 
gas. The PRPB, as a Commonwealth Agency with authority over location 
approval and land use control, is required to consider the same 
potential impacts within the Commonwealth of Puerto Rico under PREQB 
regulations under Article 4(c) of Law No. 9. The joint EIS we are 
preparing will give both the PRPB and the Commission the information we 
need to do that.
    NEPA also requires us to discover and address public concerns about 
proposals. We call this ``scoping.'' The main goal of the scoping 
process is to focus the analysis in the joint EIS on the important 
environmental issues, and to separate those issues that are 
insignificant and do not require detailed study. By the Notice of 
Intent, the Commission requests public comments on the scope of the 
issues it will address in the joint EIS. All comments received are 
considered during the preparation of the EIS. State and local 
government representatives are encouraged to notify their constituents 
of this proposed action and encourage them to comment on their areas of 
concern.
    The joint EIS will discuss impacts that could occur from the 
construction and operation of the proposed project. These impacts may 
include, but are not limited to:
     Geology and Soils
--Seismology and soil liquefaction
--Erosion control
--Right-of-way restoration
--Hazardous waste sites
--Seismic criteria

     Water Resources

--Site-specific impacts on surface and groundwater
--Potential introduction of non-indigenous species and diseases from 
tanker ballast water
--Effect on potable water supplies
--Effect in wetland hydrology
--Effect on construction in areas with shallow, contaminated 
groundwater
--Effects of water discharge on marine water quality and ambient 
temperature

     Biological Resources

--Effect of plant construction and operation on threatened and 
endangered species
--Effect of increased tanker traffic and marine construction traffic on 
manatees along the route
--Effects of construction of terminal on marine life in Guayanilla and 
Tallaboa Bays

     Cultural Resources
--Effect on historic and prehistoric sites
--Effect on underwater cultural resources
--Native American and tribal concerns

     Socioeconomics

--Impact of a peak work force of 400 on surrounding area
--Long-term effects of increased employment and taxes on local economy

     Air Quality and Noise

--Air quality and noise impacts associated with LNG and congeneration 
facilities during operations
--Air quality and noise impacts associated with construction

     Marine Transportation

--Effects of increased marine traffic on existing commercial and 
recreational marine traffic
--Probability of increased accident risk and potential for release of 
LNG or other hazardous materials

     Public Safety

--Compliance with 49 CFR 193 for exclusion zones (thermal and vapor gas 
dispersion) siting criteria, and seismic criteria
--Consequences of a major spill, both on land and marine
--Cryogenic design and technical review

     Land Use

--Impact on industrial areas
--Effect of rights-of-way and aboveground facilities on visual 
aesthetics in the region
--Consistency with local land use plans
--Impact on homes

     Cumulative Impacts

--Identification of related projects
--Analysis of cumulative impacts and mitigation measures

    We will also evaluate possible site and technology alternatives to 
the project and recommend specific mitigation measures to lessen or 
avoid impacts on the various resource areas.
    Federal and Commonwealth agencies are being asked to indicate 
whether they wish to cooperate with us in the preparation of the joint 
EIS. These agencies are listed in appendix A and may choose to 
participate once they have evaluated the proposed project and their 
agencies' responsibilities.\2\

    \2\The appendices and figures referenced in this notice are not 
being printed in the Federal Register. Copies are available from 
FERC's Public Reference Branch, Room 3104, 941 North Capitol Street, 
NE., Washington, DC 20426 or call (202) 208-1371. Copies of the 
appendices were sent to all those receiving this notice in the mail.
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    Our independent analysis of the issues will result in the 
publication of a Draft/Preliminary EIS (the term Preliminary EIS is a 
specific milestone in the Puerto Rico environmental documentation 
procedures). This document will be mailed to Federal, state, and local 
agencies, public interest groups, interested individuals, affected 
landowners, newspapers, libraries, and the Commission's official 
service list for these proceedings. A 45-day comment period will be 
allotted for the review of the Draft/Preliminary EIS. We will consider 
all comments on the Draft/Preliminary EIS and revise the document, as 
necessary, before issuing a Final EIS. The final EIS will include our 
response to each comment received. [[Page 14747]] 

Public Participation and Scoping Meetings

    You can make a difference by sending a letter with your specific 
comments or concerns about the project. You should focus on the 
potential environmental effects of the proposal, alternatives to the 
proposal (including alternative sites), and measures to avoid or lessen 
environmental impact. The more specific your comments, the more useful 
they will be. Please follow the instructions below to ensure that your 
comments are received and properly recorded:
     Address your letters to:

Lois Cashell, Secretary, Federal Energy Regulatory Commission, 825 
North Capitol St., NE., Washington, DC 20426
Luis Frias, Secretary, Puerto Rico Planning Board, P.O. Box 41119, 
Santurce, PR 00940-1119

     Reference Docket No. CP95-35-000 (FERC)
     Reference Docket No. 94-62-1219-JPU (PRPB)
     Send a copy of your letter to the following individuals:

Mr. Chris Zerby, FERC EIS Project Manager, Federal Energy Regulatory 
Commission, 825 North Capitol St., NE, Room 7312, Washington, DC 20426
Mrs. Maria Gordillo, PRPB EIS Project Manager, Puerto Rico Planning 
Board, P.O. Box 41119, Santurce, Puerto Rico 00940-1119

     Mail your comments so that they are received in 
Washington, D.C. or Santurce, PR on or before April 17, 1995.
    Beside seeking your written comments, we invite you to attend any 
of the joint public scoping meetings the FERC and the PRPB will 
conduct. The locations and times for these meetings are listed below. 
Requests to hold additional public scoping meetings will be considered.
    The public meetings will be designed to give you more detailed 
information and another opportunity to offer your comments on the 
proposed project. Those wanting to speak at the meetings can call the 
EIS Project Manager to pre-register their names on the speaker list. 
Those people on the speaker list before the date of the meeting will be 
allowed to speak first. A second speaker list will be developed at each 
meeting. Priority will be given to people representing groups. A 
transcript of each meeting will be made so that your comments will be 
accurately recorded. This transcript will be available in both Spanish 
and English.

Schedule for Joint EIS Public Scoping Meetings

April 18, 1995 (5:00-7:00 pm)
    Puerto Rico Planning Board, Minillas Governmental Center, De Diego 
Avenue, Stop 22, San Juan, Puerto Rico 00940
April 19, 1995 (5:00-7:00 pm)
    City Hall, Penuelas, Puerto Rico

Becoming an Intervenor

    In addition to involvement in the EIS process, you may want to 
become an official party to the proceedings or an ``intervenor.'' Among 
other things, intervenors have the right to receive copies of case-
related FERC documents and filings by other intervenors. Likewise, each 
intervenor must provide copies of its filings to all other parties. If 
you want to become an intervenor, you must file a Motion To Intervene 
according to Rule 214 of FERC's Rules of Practice and Procedure (18 CFR 
385.214) which is attached as appendix B.
    The date for filing of timely motions to intervene in this 
proceeding has passed. Therefore, parties now seeking to file late 
interventions must show good cause, as required by section 
385.214(b)(3), why this time limitation should be waived. Environmental 
issues have been viewed as good cause for late intervention. You do not 
need intervenor status to have your scoping comments considered.

Environmental Mailing List

    This notice is being sent to all potential interested parties to 
solicit focused comments regarding environmental considerations related 
to the proposed project. As details of the project become established, 
representatives of EcoElectrica will directly contact communities, and 
public agencies concerning any other matters, including acquisition of 
permits and rights-of-way.
    If you do not want to send comments at this time but still want to 
keep informed and receive copies of the Draft/Preliminary and Final 
EIS, please return the Information Request (appendix C). If you do not 
return the Information Request, you will be taken off the mailing list.
    Additional information about the proposed project is available from 
Mr. Chris Zerby, FERC Project Manager, at (202) 208-0111. Information 
concerning the involvement of the Puerto Rico Planning Board can be 
obtained from Mrs. Maria Gordillo, PRPB Project Manager, at (809) 727-
4444.
Linwood A. Watson, Jr.,
Acting Secretary.
[FR Doc. 95-6702 Filed 3-17-95; 8:45 am]
BILLING CODE 6717-01-M