[Federal Register Volume 64, Number 99 (Monday, May 24, 1999)]
[Notices]
[Pages 27959-27960]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-13067]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board
[Docket 23-99]


Foreign-Trade Zone 149--Freeport, TX, Application for Subzone, 
Equistar Chemicals, LP (Oil Refinery), Brazoria County, TX

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Brazos River Harbor Navigation District, grantee of 
FTZ 149, requesting special-purpose subzone status for the 
petrochemical complex of Equistar Chemicals, LP (Equistar), located in 
Brazoria County, Texas. Equistar is a limited partnership jointly owned 
by Lyondell Petrochemicals, Millenium Chemicals, and Occidental 
Petroleum. The application was submitted pursuant to the provisions of 
the Foreign-Trade Zones Act, as amended (19 U.S.C. 81a-81u), and the 
regulations of the Board (15 CFR part 400). It was formally filed on 
May 11, 1999.
    The petrochemical complex and connecting pipelines (366 acres) are 
located at two sites in Brazoria County, Texas: Site 1  (366 acres)--
Chocolate Bayou'' main petrochemical complex, located at F.M. 2917, 
some 60 miles southwest of Houston; Site 2 (6 leased tanks, 1.6 million 
barrel capacity)--located at the Intercontinental Terminal Corporation 
storage facility in Deer Park. The complex (250 employees) produces a 
variety of petrochemical feedstocks and fuel products, including 
ethylene (1.1 billion lb. capacity), propylene (730 million lb. 
capacity), benzene (500 million lb. capacity), butadiene (140 million 
lb. capacity), toluene (160 million lb. capacity), pyrolysis gas (340 
million lb. capacity), propane, butylenes, resin oils, 
dicylcopentadiene, isoprene, and fuel oils. The complex also produces 
MTBE and hydrogen, but they will not be produced under zone procedures. 
Some 55 percent of the inputs, including gas oil, naphtha, condensate, 
and natural gasoline, are sourced abroad.
    Zone procedures would exempt the refinery from Customs duty 
payments on the foreign products used in its exports. On domestic 
sales, the company would be able to choose the Customs duty rates that 
apply to certain petrochemical feedstocks by admitting

[[Page 27960]]

incoming foreign inputs in non-privileged foreign status. The duty 
rates on inputs range from 5.25 cents/barrel to 10.5 cents/barrel. 
Under the FTZ Act, certain merchandise in FTZ status is exempt from ad 
valorem inventory-type taxes. The application indicates that the 
savings from zone procedures would help improve the refinery's 
international competitiveness.
    In accordance with the Board's regulations, a member of the FTZ 
Staff has been designated examiner to investigate the application and 
report to the Board.
    Public comment is invited from interested parties. Submissions 
(original and 3 copies) shall be addressed to the Board's Executive 
Secretary at the address below. The closing period for their receipt is 
July 23, 1999. Rebuttal comments in response to material submitted 
during the foregoing period may be submitted during the subsequent 15-
day period (to August 9, 1999).
    A copy of the application and accompanying exhibits will be 
available for public inspection at each of the following locations:

U.S. Department of Commerce, Export Assistance Center, 500 Dallas, 
Suite 1160, Houston, Texas 77002.
Office of the Executive Secretary, Foreign-Trade Zones Board, Room 
3716, U.S. Department of Commerce, 14th & Pennsylvania Avenue, NW, 
Washington, DC 20230

    Dated: May 14, 1999.
Dennis Puccinelli,
Acting Executive Secretary.
[FR Doc. 99-13067 Filed 5-21-99; 8:45 am]
BILLING CODE 3510-DS-P