[Federal Register Volume 71, Number 186 (Tuesday, September 26, 2006)]
[Notices]
[Pages 56219-56221]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-15756]


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DEPARTMENT OF TRANSPORTATION

Maritime Administration

[USCG-2004-17696]


Freeport McMoRan Energy L.L.C. Main Pass Energy Hub Liquefied 
Natural Gas Deepwater Port License Application Amendment; Final Public 
Hearings, Environmental Assessment and Draft Finding of No Significant 
Impact

AGENCY: Maritime Administration, DOT.

ACTION: Notice of availability; notice of public hearings; request for 
comments.

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SUMMARY: The Maritime Administration (MARAD) and U.S. Coast Guard 
announce the availability of the Environmental Assessment (EA) and 
Draft Finding of No Significant Impact (FONSI) on the Main Pass Energy 
Hub (MPEH) Deepwater Port Amended License Application. We are also 
announcing the dates and locations of public hearings for input 
regarding the approval or denial of the license application.
    The application and the amendment describe a project that would be 
located in the Gulf of Mexico in Main Pass Lease Block 299 (MP 299), 
approximately 16 miles southeast of Venice, Louisiana. Draft and final 
Environmental Impact Statements (EIS) evaluating the original 
application were published on June 17, 2005 and March 14, 2006, 
respectively.
    The Main Pass Energy Hub Deepwater Port License Application 
originally proposed the use of ``open-loop'' open rack vaporization 
(ORV). In the amended application, the applicant is proposing a 
``closed-loop'' system using submerged combustion vaporization with 
selective catalytic reduction (SCV/SCR). Though similar, a more generic 
SCV/SCR system was analyzed in detail in the Final EIS (FEIS) as an 
alternative. The amended application provides expanded and refined 
design information regarding the proposed changes. The EA was prepared 
to provide analysis of the actual SCV/SCR design now being proposed and 
to determine if there were any significant impacts resulting from this 
change in proposed regassification technology in addition to or 
different from those previously assessed in the FEIS. The original 
application and environmental analysis contained in the FEIS still 
apply, including facilities, offshore and onshore pipelines, and salt 
cavern gas storage. Previous comments on the FEIS and application will 
continue to be considered in this process and need not be repeated. 
Based upon the EA, we have determined that the project changes as 
proposed in this amended application will not have a significant impact 
on the environment and we are therefore issuing a Draft Finding of No 
Significant Impact (FONSI) for public review and comment.

DATES: Public hearings will be held in Grand Bay, Alabama on October 3, 
2006; Pascagoula, Mississippi on October 4, 2006; and New Orleans, 
Louisiana, on October 5, 2006. Each public hearing will begin at 6 p.m. 
and end at 8 p.m., and will be preceded by an informational open house 
from 4:30 p.m. to 6 p.m. The public hearings may end later than the 
stated time, depending on the number of attendees requesting to speak.
    Material submitted in response to the request for comments must 
reach the Docket Management Facility on or before November 6, 2006, 
which is the end of the 45 day public comment period. Federal and State 
agencies must submit comments on the application as amended, 
recommended conditions for licensing, or letters of no objection by 
November 20, 2006 (45 days after the final public hearings). Also by 
November 20, 2006 the Governors of the adjacent coastal states of 
Alabama, Louisiana, and Mississippi may approve, disapprove, or notify 
MARAD of inconsistencies with State programs relating to environmental 
protection, land and water use, and coastal zone management, in which 
case MARAD will condition any license granted to make it consistent 
with state programs. MARAD will issue a record of decision (ROD) to 
approve, approve with conditions, or deny the DWP license application 
by January 3, 2007 (90 days after the final public hearing).

ADDRESSES: The first public hearing and informational open house will 
be held on October 3, 2006, at the Grand Bay St. Elmo Community Center, 
11610 Highway 90 West, Grand Bay, Alabama, phone: 251-865-4010. The 
second public hearing and informational open house will be held on 
October 4, 2006, at the La Font Inn, 2703 Denny Avenue, Pascagoula, 
Mississippi, phone: 228-762-7111. The third public hearing and 
informational open house will be held on October 5, 2006, at the New 
Orleans Marriott, 555 Canal Street, New Orleans, Louisiana, phone: 504-
581-1000.
    A copy of the EA, FEIS, license application, license application 
amendment, comments and associated documentation is available for view 
at the DOT's docket management Web site: http://dms.dot.gov under 
docket number 17696. Copies of the EA and FEIS are also available for 
review at the

[[Page 56220]]

Pascagoula Jackson-George Regional Headquarters Public Library, 
Pascagoula, MS, 228-769-3227 ; Bayou La Batre City Public Library, AL, 
251-824-4213; Mobile Public Main Library, AL, 251-208-7106; New Orleans 
Public Main Library, LA, 504-529-7989.
    Address docket submissions for USCG-2004-17696 to: Docket 
Management Facility, U.S. Department of Transportation, 400 Seventh 
Street, SW., Washington, DC 20590-0001.
    The Docket Management Facility accepts hand-delivered submissions 
and makes docket contents available for public inspection and copying, 
at this address, in room PL-401, between 9 a.m. and 5 p.m., Monday 
through Friday, except Federal holidays. The Facility's telephone is 
202-366-9329, its fax is 202-493-2251, and its Web site for electronic 
submissions or for electronic access to docket contents is http://dms.dot.gov.

FOR FURTHER INFORMATION CONTACT: Roddy C. Bachman, U.S. Coast Guard, 
telephone: 202-372-1451, e-mail: [email protected]. If you have 
questions on viewing the docket, call Renee V. Wright, Program Manager, 
Docket Operations, telephone: 202-493-0402.

SUPPLEMENTARY INFORMATION:

Public Hearings, Open Houses and Request for Comments

    We invite you to learn about the proposed deepwater port at the 
informational open houses. We also invite you to comment at the public 
hearings on the proposed action and the evaluation contained in the 
FEIS, EA, the license application and amendment. Relevant comments 
previously submitted on the FEIS and the application will continue to 
be considered in the license application process and need not be 
resubmitted. Speaker registration will be available at the door. In 
order to allow everyone a chance to speak, we may limit speaker time, 
or extend the hearing hours, or both. You must identify yourself, and 
any organization you represent, by name. Your remarks will be recorded 
or transcribed for inclusion in the public docket.
    You may submit written material at the public hearing, either in 
place of or in addition to speaking. Written material must include your 
name and address, and will be included in the public docket. Public 
docket materials will be made available to the public on the Docket 
Management Facility's Docket Management System (DMS). See ''Request for 
Comments'' for information about DMS and your rights under the Privacy 
Act.
    If you plan to attend either the open house or the public hearing, 
and need special assistance such as sign language interpretation or 
other reasonable accommodation, please notify the Coast Guard (see FOR 
FURTHER INFORMATION CONTACT) at least 3 business days in advance. 
Include your contact information as well as information about your 
specific needs.
    You can submit material to the Docket Management Facility during 
the public comment period (see DATES). MARAD and the Coast Guard will 
consider all comments submitted during the public comment period. 
Submissions should include:
     Docket number USCG-2004-17696.
     Your name and address.
     Your reasons for making each comment or for bringing 
information to our attention.
    Submit comments or material using only one of the following 
methods:
     Electronic submission to DMS, http://dms.dot.gov.
     Fax, mail, or hand delivery to the Docket Management 
Facility (see ADDRESSES). Faxed or hand delivered submissions must be 
unbound, no larger than 8\1/2\ by 11 inches, and suitable for copying 
and electronic scanning. If you mail your submission and want to know 
when it reaches the Facility, include a stamped, self-addressed 
postcard or envelope. Regardless of the method used for submitting 
comments or material, all submissions will be posted, without change, 
to the DMS Web site (http://dms.dot.gov), and will include any personal 
information you provide. Therefore, submitting this information makes 
it public. You may wish to read the Privacy Act notice that is 
available on the DMS Web site, or the Department of Transportation 
Privacy Act Statement that appeared in the Federal Register on April 
11, 2000 (65 FR 19477).
    You may view docket submissions at the Docket Management Facility 
(see ADDRESSES), or electronically on the DMS Web site.

Proposed Action

    We published a notice of application for the proposed Main Pass 
Energy Hub deepwater port at 69 FR 32363 (June 9, 2004); a notice of 
intent to prepare an EIS at 69 FR 45337 (July 29, 2004); announced the 
availability of the draft EIS (DEIS) at 70 FR 35277 (June 17, 2005); 
the Final EIS at 71 FR 13213 (March 14, 2006); and the amended 
application, intent to prepare an EA, and request for comments at 71 FR 
45899 (August 10, 2006). The proposed action requiring environmental 
review is the Federal licensing decision on the proposed deepwater port 
application as originally submitted and subsequently amended.

Alternatives Being Considered

    The alternatives available for this action are: (1) License the 
facility according to the application as amended, (2) license the 
facility according to the application as amended with conditions 
(including conditions designed to mitigate environmental impact), and 
(3) deny the application, which for purposes of environmental review is 
the ``no-action'' alternative. These alternatives are more fully 
discussed in the FEIS and EA.

Background

    MARAD and the Coast Guard, as the lead Federal agencies for the 
license review process under the Deepwater Port Act (DWPA) and the 
National Environmental Policy Act (NEPA), completed a Draft EIS that 
was released on June 17, 2005. A Final EIS was released on March 14, 
2006. To seek public involvement and comply with the requirements of 
the DWPA and NEPA, open houses and public hearings were held in all 
adjacent coastal states for: (1) Scoping, (2) the DEIS, and (3) the 
FEIS in Grand Bay, Alabama; New Orleans, Louisiana; and Pascagoula, 
Mississippi.
    During this public review process, extensive public and agency 
comments were submitted that discussed the project and both ``open-
loop'' ORV and ``closed-loop'' SCV technologies as reasonable 
alternatives for the regasification technology. For this and other 
reasons, the Final EIS included detailed discussion and evaluation of 
both SCV and ORV technologies.
    On May 5, 2005, Governor Blanco of Louisiana, exercising authority 
granted under the DWPA, disapproved the Main Pass application based on 
the use of ORV. In her letter of disapproval she indicated support for 
closed-loop systems. On May 31, 2006, the Coast Guard and MARAD 
received an amendment to the original application from the applicant. 
The applicant in this amended application now proposes to change the 
project to use SCV in place of ORV. On June 21, 2006, the Administrator 
of MARAD issued a ROD stating that a license for the project as 
originally planned would not be issued and no further action would be 
taken on the application as originally submitted. MARAD and the Coast 
Guard further determined that they would process the amended 
application according to the applicable provisions of the DWPA and 
NEPA.
    The application amendment contains the actual SCV/SCR design that 
would

[[Page 56221]]

be used. Because a more generic SCV/SCR system was fully evaluated as a 
reasonable alternative in sufficient detail in the EIS to provide an 
opportunity for in-depth public review, the Coast Guard and MARAD 
determined, in coordination with other involved Federal agencies, 
including the U.S. Environmental Protection Agency, that an 
Environmental Assessment that incorporates by reference and tiers from 
the FEIS would provide the appropriate level of NEPA review and 
analysis. After the EA was completed, we determined that a FONSI for 
the amended application was applicable for the action and that the 
applicant's change in preferred regassification technology from ORV to 
SCV/SCR that was previously evaluated in the FEIS would not have a 
significant effect on the environment in addition to or different from 
those impacts previously assessed and disclosed in the FEIS.
    The EA describes the project changes and focuses on the evaluation 
of the amendment, incorporating by reference and tiering from the FEIS. 
Our review indicates the SCV/SCR proposal provides a reduction in 
impacts in several key resource areas. In addition, a number of 
comments from the public, and from State and Federal agencies discussed 
and supported closed-loop SCV as a preferred alternative.
    On August 10, 2006, (71 FR 45899) we provided notice of the 
availability of the amended application; the intent to prepare an EA; 
and request for comments.

Summary of the Application Amendment

    In the original application, the applicant proposed open rack 
vaporization (ORV) as their preferred alternative. In this application 
amendment, the applicant is now proposing a ``closed-loop'' 
vaporization system known as submerged combustion vaporization with 
selective catalytic reduction (SCV/SCR). This change would eliminate 
seawater usage; replace water-cooled generators with low emission, air-
cooled gas turbine generators; propose use of sodium hydroxide to 
neutralize the SCV process water; would move Platform No. 3 from its 
current position to the Terminal to support vaporization equipment; and 
make other minor changes to Terminal operations and infrastructure to 
support SCV/SCR operations. Proposed non-Terminal construction and 
operations were not changed by the amended application. All other 
aspects of the original application and environmental analysis 
contained in the EIS continue to apply, including facilities, 
pipelines, and salt cavern gas storage.
    SCV/SCR vaporization was analyzed in detail in the EIS as an 
alternative technology (EIS Option 1d). In summary, the key differences 
in this proposed change from the original ORV proposal (EIS Option 2b) 
include:
     Elimination of 134 million gallons per day of seawater 
intake and discharge. Elimination of seawater intakes and outfall 
structures. The SCV/SCR system uses no seawater.
     Elimination of potential biological impacts from 
vaporization seawater intake due to impingement or entrainment and 
reduced discharge temperature plume.
     Elimination of the use of sodium hypochlorite chlorination 
requirements.
     Discharge of 345,000 gallons per day (at peak 1.6 bcfd 
vaporization) process water produced through SCV/SCR operation. Ph 
would be managed between 6 and 9 through injection of 20% by weight 
caustic soda solution (sodium hydroxide) into the stream. The 
neutralization reaction produces sodium carbonate and water. This would 
also require the addition of a 50,000 gallon storage tank.
     Installation of eight SCV/SCR units (EIS Option 1d) as 
replacements for the six ORV units previously proposed (EIS Option 2b).
     Relocation and remodeling the existing MPEH Platform No. 3 
to a position north of Bridge 11 between Platforms BS-8 and BS-Y7 to 
accommodate three of the eight SCV/SCR vaporizers and three gas turbine 
generators relocated from Platform No. 1. Existing well conductors and 
jacket main piles would be removed and the jacket installed on the new 
site. Structural and system modifications to the deck of existing 
Platform BS-8 and existing Bridge No. 11 would also be required.
     Injection of 240 gallons per day of 19.5% (by weight) 
aqueous ammonia solution into the gas stream of the SCR. This would 
require installation of a 7200 gallon tank.
     Operational air emissions of the SCV/SCR amendment are 
reduced from the original proposal. Total emissions attributed to 
construction over 5 years would be approximately 7% higher than the 
original proposal due to the need to move one platform.
     Direct burning of 1-1.5% of natural gas for LNG 
vaporization--removing this resource from the nation's energy supply.

Federal Energy Regulatory Commission Certificate of Public Convenience 
and Necessity

    The onshore portion of this project shoreward of the mean high 
water line falls under the jurisdiction of the Federal Energy 
Regulatory Commission (FERC). Freeport-McMoRan has received FERC 
authorization to construct and operate the Coden pipeline conditioned 
on receiving the license for the DWP from MARAD (FERC Order Issuing 
Certificate issued May 18, 2006, FERC Docket Nos. CP04-68 and CP04-69). 
This is the 5.1 mile Bayou La Batre alternative in the FEIS.

Department of Army Permits

    On July 22, 2005, the New Orleans District, Army Corps of Engineers 
issued a joint public notice advising all interested parties of the 
proposed activity for which Department of the Army Section 404 and 
Section 10 permits are being sought, and solicited comments and 
information necessary to evaluate the probable impact on the public 
interest. This comment period is now closed. As this amendment falls 
under the environmental review of the DWPA, and not Section 10 of the 
Rivers and Harbors Act and does not change the Section 404 and Section 
10 reviews, an additional comment period is not required by the Army 
Corps of Engineers.

    Dated: September 21, 2006.

    By order of the Maritime Administrator.
Joel C. Richard,
Secretary, Maritime Administration.
[FR Doc. E6-15756 Filed 9-25-06; 8:45 am]
BILLING CODE 4910-81-P