[Federal Register Volume 72, Number 78 (Tuesday, April 24, 2007)]
[Notices]
[Pages 20323-20324]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-7783]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

(Docket 15-2007)


Foreign-Trade Zone 36 -- Galveston, Texas, Application for 
Subzone, M-I L.L.C. (Barite Grinding and Milling), Galveston, Texas

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Board of Trustees of the Galveston Wharves, grantee 
of Foreign-Trade Zone (FTZ) 36, requesting special-purpose subzone 
status for the barite grinding and milling facilities of M-I L.L.C. (M-
I), located in Galveston, Texas. 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 16, 2007.
    The M-I facilities (14 acres, 3 parcels, 26 employees) are located 
at 4105 Old Port Industrial Boulevard, in Galveston, adjacent to the 
Houston Customs and Border Protection port of entry. The M-I facilities 
are used for manufacturing, warehousing and distribution activities 
related to the grinding and milling of raw barite into ground barite 
(currently approximately 280,000 tons annually, with future capacity of 
up to approximately 780,000 tons annually). Ground barite is used in 
the production of drilling fluids (drilling mud) and various specialty 
chemicals for use by the oil and gas exploration industry. M-I sources 
the majority of its raw barite from abroad. The duty rate on the 
imported raw barite is $1.25 per ton.
    This application requests authority for M-I to conduct the activity 
under FTZ procedures, which would exempt M-I from Customs duty payments 
on the barite used in export production. Less than 3 percent of 
production is exported. On domestic sales, the company could choose the 
lower duty rate (duty-free) that applies to the ground barite. M-I also 
anticipates realizing additional savings on materials that become 
scrap/waste during production. The application indicates that the FTZ-
related savings would improve the plant'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 listed below. The closing period for their 
receipt is June 25, 2007. Rebuttal comments in response to material 
submitted during the foregoing period may be submitted during the 
subsequent 15-day period (to July 9, 2007).
    A copy of the application and accompanying exhibits will be 
available at each of the following addresses: U.S. Department of 
Commerce Export Assistance Center, 15600 John F. Kennedy Blvd, Suite 
530, Houston, TX

[[Page 20324]]

77032; and, Office of the Executive Secretary, Foreign-Trade Zones 
Board, Room 2814B, U.S. Department of Commerce, 1401 Constitution Ave, 
NW., Washington, DC 20230. For further information contact Christopher 
Kemp at [email protected] or (202) 482-0862.

    Dated: April 16, 2007.
Andrew McGilvray,
Executive Secretary.
[FR Doc. E7-7783 Filed 4-23-07; 8:45 am]
BILLING CODE 3510-DS-S