[Federal Register Volume 66, Number 75 (Wednesday, April 18, 2001)]
[Notices]
[Page 19918]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-9637]



[[Page 19918]]

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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 16-2001]


Foreign-Trade Zone 87--Lake Charles, LA; Expansion of 
Manufacturing Authority--Subzone 87A; Conoco, Inc., Westlake, LA

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Lake Charles Harbor & Terminal District, grantee of 
FTZ 87, requesting authority on behalf of Conoco, Inc. (Conoco), to 
expand the scope of manufacturing activity conducted under zone 
procedures within Subzone 87A at the Conoco oil refinery complex in 
Westlake, Louisiana. 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 April 9, 2001.
    Subzone 87A was approved by the Board in 1988 and consists of four 
sites in Westlake, Louisiana: Site 1 (1,300 acres)--main refinery 
complex, 2200 Old Spanish Trail, Westlake; Site 2--Docks and Wharf; 
Site 3--Clifton Ridge Marine Terminal; Site 4--Pecan Grove Terminal. 
Authority was granted for the manufacture of fuel products and certain 
petrochemical feedstocks and refinery byproducts (Board Order 406, 53 
FR 52455, 12/28/88).
    The Conoco refinery (750 employees) is used to produce fuels and 
petrochemical feedstocks. The subzone, as originally approved, had a 
crude oil capacity of 150,000 barrels per day. The expansion request 
primarily involves new crude oil refining units within Site 1. Conoco, 
in partnership with Maraven S.A., is constructing facilities which will 
increase refining capacity and allow for the processing of heavier, 
sour crudes. They are now requesting authority to process approximately 
250,000 barrels of crude oil per day under zone procedures. This 
proposal does not request any new manufacturing authority under FTZ 
procedures in terms of inputs or products, but it does involve a 
proposed increase in Conoco's level of production under zone 
procedures. Approximately 72 percent of the crude oil will be sourced 
from abroad.
    Zone procedures would exempt the new refinery facilities 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 for certain petrochemical feedstocks (duty-free) by admitting 
foreign crude oil in non-privileged foreign status. The duty rates on 
crude oil range from 5.25 cents/barrel to 10.5 cents/barrel. The 
application indicates that the additional 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 appointed examiner to investigate the application and 
report to the Board.
    Public comment on the application 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 June 18, 2001. Rebuttal comments in response to 
material submitted during the foregoing period may be submitted during 
the subsequent 15-day period to July 2, 2001.
    A copy of the application and the accompanying exhibits will be 
available for public inspection at each of the following locations:

U.S. Department of Commerce, Export Assistance Center, One Canal Place, 
365 Canal Street, Suite 1170, New Orleans, LA 70130
Office of the Executive Secretary, Foreign-Trade Zones Board, Room 
4008, U.S. Department of Commerce, 14th and Pennsylvania Avenue, NW., 
Washington, DC 20230

    Dated: April 9, 2001.
Dennis Puccinelli,
Executive Secretary.
[FR Doc. 01-9637 Filed 4-17-01; 8:45 am]
BILLING CODE 3510-DS-P