[Federal Register Volume 84, Number 42 (Monday, March 4, 2019)]
[Notices]
[Pages 7413-7415]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-03803]


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DEPARTMENT OF TRANSPORTATION

Maritime Administration

[Docket No. MARAD-2019-0011]


Deepwater Port License Application: SPOT Terminal Services LLC 
(SPOT).

AGENCY: Maritime Administration, Department of Transportation.

ACTION: Notice of application.

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SUMMARY: The Maritime Administration (MARAD) and the U.S. Coast Guard 
(USCG) announce they have received an application for the licensing of 
a deepwater port and that the application contains information 
sufficient to commence processing. This notice summarizes the 
applicant's plans and the procedures that will be followed in 
considering the application.

DATES: The Deepwater Port Act of 1974, as amended, requires at least 
one public hearing on this application to be held in the designated 
Adjacent Coastal State(s) not later than 240 days after publication of 
this notice, and a decision on the application not later than 90 days 
after the final public hearing(s).

ADDRESSES: The public docket for the SPOT deepwater port license 
application is maintained by the U.S. Department of Transportation, 
Docket Management Facility, West Building, Ground Floor, Room W12-140, 
1200 New Jersey Avenue SE, Washington, DC 20590.
    The license application is available for viewing at the 
Regulations.gov website: http://www.regulations.gov under docket number 
MARAD-2019-0011.
    We encourage you to submit comments electronically through the 
Federal eRulemaking Portal at http://www.regulations.gov. If you submit 
your comments electronically, it is not necessary to also submit a hard 
copy. If you cannot submit material using http://www.regulations.gov, 
please contact either Mr. Efrain Lopez, USCG or Ms. Yvette M. Fields, 
MARAD, as listed in the following FOR FURTHER INFORMATION CONTACT 
section of this document. This section provides alternate instructions 
for submitting written comments. Additionally, if you go to the online 
docket and sign up for email alerts, you will be notified when comments 
are posted. Anonymous comments will be accepted. All comments received 
will be posted without change to http://www.regulations.gov and will 
include any personal information you have provided. The Federal Docket 
Management Facility's telephone number is 202-366-9317 or 202-366-9826, 
the fax number is 202-493-2251.

FOR FURTHER INFORMATION CONTACT: Mr. Efrain Lopez, U.S. Coast Guard, 
telephone: 202-372-1437, email: [email protected], or Ms. Yvette 
M. Fields, Maritime Administration, telephone: 202-366-0926, email: 
[email protected]. For questions regarding viewing the Docket, call 
Docket Operations, telephone: 202-366-9317 or 202-366-9826.

SUPPLEMENTARY INFORMATION:

Receipt of Application

    On January 31, 2019, MARAD and USCG received an application from 
SPOT Terminal Services LLC (SPOT) for Federal authorizations required 
for a license to own, construct, and operate a deepwater port for the 
export of oil as authorized by the Deepwater Port Act of 1974, as 
amended, 33 U.S.C. 1501 et seq. (the Act), and implemented under 33 
Code of Federal Regulations (CFR) Parts 148, 149, and 150. After a 
coordinated completeness review by MARAD, the USCG, and other 
cooperating Federal agencies, the application is deemed complete and 
contains information sufficient to initiate processing.

Background

    The Act defines a deepwater port as any fixed or floating manmade 
structure other than a vessel, or any group of such structures, that 
are located beyond State seaward boundaries and used or intended for 
use as a port or terminal for the transportation, storage, and further 
handling of oil or natural gas for transportation to, or from, any 
State. A deepwater port includes all components and equipment, 
including pipelines, pumping or compressor stations, service platforms, 
buoys, mooring lines, and similar facilities that are proposed as part 
of a deepwater port to the extent they are located seaward of the high-
water mark.
    The Secretary of Transportation delegated to the Maritime 
Administrator authorities related to licensing deepwater ports (49 CFR 
1.93(h)). Statutory and regulatory requirements for processing 
applications and licensing appear in 33 U.S.C. 1501 et seq. and 33 CFR 
part 148. Under delegations from, and agreements between, the Secretary 
of Transportation and the Secretary of Homeland Security, applications 
are jointly processed by MARAD and USCG. Each application is considered 
on its merits.
    In accordance with 33 U.S.C. 1504(f) for all applications, MARAD 
and the USCG, working in cooperation with other involved Federal 
agencies and departments, shall comply with the requirements of the 
National Environmental Policy Act (NEPA) of 1969 (42 U.S.C. 4321 et 
seq.). The U.S. Environmental Protection Agency (EPA), the U.S. Army 
Corps of Engineers (USACE), the National Oceanic and Atmospheric 
Administration (NOAA), the Bureau of Ocean Energy Management (BOEM), 
the Bureau of Safety and Environmental Enforcement (BSEE), and the 
Pipeline and Hazardous Materials Safety Administration

[[Page 7414]]

(PHMSA), among others, participate in the processing of deepwater port 
applications and assist in the NEPA process as described in 40 CFR 
1501.6. Each agency may participate in scoping and/or other public 
meeting(s) and may adopt the MARAD/USCG prepared environmental impact 
review for purposes of their jurisdictional permitting processes, to 
the extent applicable. Comments related to this deepwater port 
application addressed to the EPA, USACE, or other Federal agencies 
should note the Federal docket number, MARAD-2019-0011. Each comment 
will be incorporated into the Department of Transportation (DOT) docket 
and considered as the environmental impact analysis is developed to 
ensure consistency with the NEPA process.
    All connected actions, permits, approvals and authorizations will 
be considered during the processing of SPOT's deepwater port license 
application.
    MARAD, in issuing this Notice of Application pursuant to 33 U.S.C. 
1504(c), must designate as an ``Adjacent Coastal State'' any coastal 
state which (A) would be directly connected by pipeline to a deepwater 
port as proposed in an application, or (B) would be located within 15 
nautical miles of any such proposed deepwater port (see 33 U.S.C. 
1508(a)(1)). Pursuant to the criteria provided in the Act, Texas is the 
designated Adjacent Coastal State for this application. Other states 
may request from the Maritime Administrator designation as an Adjacent 
Coastal State in accordance with 33 U.S.C. 1508(a)(2).
    The Act directs that at least one public hearing take place in each 
Adjacent Coastal State, in this case, Texas. Additional public meetings 
may be conducted to solicit comments for the environmental analysis to 
include public scoping meetings, or meetings to discuss the Draft and 
Final environmental impact documents prepared in accordance with NEPA.
    MARAD, in coordination with the USCG, will publish additional 
Federal Register notices with information regarding these public 
meeting(s) and hearing(s) and other procedural milestones, including 
the NEPA environmental impact review. The Maritime Administrator's 
decision, and other key documents, will be filed in the public docket 
at docket number MARAD-2019-0011.
    The Deepwater Port Act imposes a strict timeline for processing an 
application. When MARAD and USCG determine that an application is 
complete (i.e., contains information sufficient to commence 
processing), the Act directs that all public hearings on the 
application be concluded within 240 days from the date the Notice of 
Application is published.
    Within 45 days after the final hearing, the Governor of the 
Adjacent Costal State, in this case the Governor of Texas, may notify 
MARAD of his approval, approval with conditions, or disapproval of the 
application. If such approval, approval with conditions, or disapproval 
is not provided to the Maritime Administrator by that time, approval 
shall be conclusively presumed. MARAD may not issue a license without 
the explicit or presumptive approval of the Governor of the Adjacent 
Coastal State. During this 45-day period, the Governor may also notify 
MARAD of inconsistencies between the application and State programs 
relating to environmental protection, land and water use, and coastal 
zone management. In this case, MARAD may condition the license to make 
it consistent with such state programs (33 U.S.C. 1508(b)(1)). MARAD 
will not consider written approvals or disapprovals of the application 
from the Governor of the Adjacent Coastal State until after the final 
public hearing is complete and the 45-day period commences.
    The Maritime Administrator must render a decision on the 
application within 90 days after the final hearing.
    In accordance with section 33 U.S.C. 1504(d), MARAD is required to 
designate an application area for a deepwater port application intended 
to transport oil. Section 1504(d)(2) provides MARAD the discretion to 
establish a reasonable application area constituting the geographic 
area in which only one deepwater port may be constructed and operated. 
MARAD has consulted with USCG in developing SPOT's application area and 
designates an application area encompassing the deepwater port that is 
a circle having a radius of no less than three-and-three-tenths (3.30) 
nautical miles centered at SPOT's proposed platform, latitude N 
28[deg]27'59.22'' and longitude W 95[deg]07' 24.49'', and 0.25 nautical 
miles on either side of SPOT's proposed pipeline route between the 
terminal and the shore. Any person interested in applying for the 
ownership, construction, and operation of a deepwater port within this 
designated application area must file with MARAD (see FOR FURTHER 
INFORMATION CONTACT) a notice of intent to file an application for the 
construction and operation of a deepwater port not later than 60 days 
after the date of publication of this notice, and shall submit a 
completed application no later than 90 days after publication of this 
notice.
    Should a favorable record of decision be rendered and license be 
issued, MARAD may include specific conditions related to design, 
construction, operations, environmental permitting, monitoring and 
mitigations, and financial responsibilities. If a license is issued, 
USCG in coordination with other agencies as appropriate, would review 
and approve the deepwater port's engineering, design, and construction; 
operations/security procedures; waterways management and regulated 
navigation areas; maritime safety and security requirements; risk 
assessment; and compliance with domestic and international laws and 
regulations for vessels that may call on the port. The deepwater port 
would be designed, constructed and operated in accordance with 
applicable codes and standards.
    In addition, installation of pipelines and other structures may 
require permits under Section 404 of the Clean Water Act and Section 10 
of the Rivers and Harbors Act, which are administered by the USACE.
    Permits from the EPA may also be required pursuant to the 
provisions of the Clean Air Act, as amended, and the Clean Water Act, 
as amended.

Summary of the Application

    SPOT is proposing to construct, own, and operate a deepwater port 
terminal in the Gulf of Mexico to export domestically produced crude 
oil. Use of the deepwater port would include the loading of various 
grades of crude oil at flow rates of up to 85,000 barrels per hour 
(bph). The SPOT deepwater port would allow for up to two (2) Very Large 
Crude Carriers (VLCCs) or other crude oil carriers to moor at single 
point mooring (SPM) buoys and connect with the deepwater port via 
floating connecting crude oil hoses and a floating vapor recovery hose. 
The maximum frequency of loading VLCCs or other crude oil carriers 
would be 2 million barrels per day, 365 days per year.
    The overall project would consist of offshore and marine components 
as well as onshore components as described below.
    The SPOT deepwater port offshore and marine components would 
consist of the following:
     One (1) fixed offshore platform with eight (8) piles in 
Galveston Area Outer Continental Shelf lease block 463, approximately 
27.2 to 30.8 nautical miles off the coast of Brazoria County, Texas in 
a water depth of approximately 115 feet. The fixed offshore platform

[[Page 7415]]

would be comprised of four (4) decks including: A sump deck with shut-
down valves and open drain sump; a cellar deck with pig launchers and 
receivers, generators, and three (3) vapor combustion units; a main 
deck with a lease automatic custody transfer (LACT) unit, oil 
displacement prover loop, living quarters, electrical and instrument 
building, and other ancillary equipment; and a laydown deck with a 
crane laydown area.
     Two (2) single point mooring buoys (SPMs), each having: 
Two (2) 24-inch inside diameter crude oil underbuoy hoses 
interconnecting with the crude oil pipeline end manifold (PLEM); two 
(2) 24-inch inside diameter floating crude oil hoses connecting the 
moored VLCC or other crude oil carrier for loading to the SPM buoy; one 
(1) 24-inch inside diameter vapor recovery underbuoy hose 
interconnecting with the vapor recovery PLEM; and one (1) 24-inch 
inside diameter floating vapor recovery hose to connect to the moored 
VLCC or other crude oil carrier for loading. The floating hoses would 
be approximately 800 feet in length and rated for 300 psig (21-bar). 
Each floating hose would contain an additional 200 feet of 16-inch 
``tail hose'' that is designed to be lifted and robust enough for 
hanging over the edge railing of the VLCC or other crude oil carrier. 
The underbuoy hoses would be approximately 160 feet in length and rated 
for 300 psig (21-bar).
     Four (4) PLEMs would provide the interconnection between 
the pipelines and the SPM buoys. Each SPM buoy would have two (2) 
PLEMs--one (1) PLEM for crude oil and one (1) PLEM for vapor recovery. 
Each crude oil loading PLEM would be supplied with crude oil by two (2) 
30-inch outside diameter pipelines, each approximately 0.66 nautical 
miles in length. Each vapor recovery PLEM would route recovered vapor 
from the VLCC or other crude oil carrier through the PLEM to the three 
(3) vapor combustion units located on the platform topside via two (2) 
16-inch outside diameter vapor recovery pipelines, each approximately 
0.66 nautical miles in length.
     Two (2) co-located 36-inch outside diameter, 40.8-nautical 
mile long crude oil pipelines would be constructed from the shoreline 
crossing in Brazoria County, Texas, to the SPOT deepwater port for 
crude oil delivery. These pipelines, in conjunction with 12.2 statute 
miles of new-build onshore pipelines (described below), would connect 
the onshore crude oil storage facility and pumping station (Oyster 
Creek Terminal) to the offshore SPOT deepwater port. The crude oil 
would be metered at the offshore platform. Pipelines would be bi-
directional for the purposes of maintenance, pigging, changing crude 
oil grades, or evacuating the pipeline with water.
    The SPOT deepwater port onshore storage and supply components would 
consist of the following:
     New equipment and piping at the existing Enterprise Crude 
Houston (ECHO) Terminal to provide interconnectivity with the crude oil 
supply network for the SPOT Project. This would include the 
installation of four (4) booster pumps, one (1) measurement skid, and 
four (4) crude oil pumps.
     An interconnection between the existing Rancho II pipeline 
and the proposed ECHO to Oyster Creek pipeline consisting of a physical 
connection as well as ultrasonic measurement capability for pipeline 
volumetric balancing purposes.
     The proposed Oyster Creek Terminal located in Brazoria 
County, Texas, on approximately 140 acres of land consisting of seven 
(7) aboveground storage tanks, each with a total storage capacity of 
685,000 barrels (600,000 barrels working storage capacity), for a total 
onshore storage capacity of approximately 4.8 million barrels (4.2 
million barrels working storage) of crude oil. The Oyster Creek 
Terminal also would include: Six (6) electric-driven mainline crude oil 
pumps; four (4) electric-driven booster crude oil pumps (two (2) per 
pipeline), working in parallel to move crude oil from the storage tanks 
through the measurement skids; two (2) crude oil pipeline pig 
launchers/receivers; one (1) crude oil pipeline pig receiver; two (2) 
measurement skids for measuring incoming crude oil--one (1) skid 
located at the incoming pipeline from the existing Enterprise Crude 
Houston (ECHO) Terminal, and one (1) skid installed and reserved for a 
future pipeline connection; two (2) measurement skids for measuring 
departing crude oil; three (3) vapor combustion units--two (2) 
permanent and one (1) portable; and ancillary facilities to include 
electrical substation, office, and warehouse buildings.
     Three onshore crude oil pipelines would be constructed 
onshore to support the SPOT deepwater port. These would include: One 
(1) 50.1 statute mile long 36-inch crude oil pipeline from the existing 
ECHO Terminal to the Oyster Creek Terminal. This pipeline would be 
located in Harris County and Brazoria County, Texas; two (2) 12.2 
statute mile long, co-located 36-inch crude oil export pipelines from 
the Oyster Creek Terminal to the shore crossing where these would join 
the above described subsea pipelines supplying the SPOT deepwater port. 
These pipelines would be located in Brazoria County, Texas.

Privacy Act

    DOT posts comments, without edit, to www.regulations.gov, as 
described in the system of records notice, DOT/ALL-14 FDMS, accessible 
through www.dot.gov/privacy. To facilitate comment tracking and 
response, we encourage commenters to provide their name, or the name of 
their organization; however, submission of names is completely 
optional. Whether or not commenters identify themselves, all timely 
comments will be fully considered. If you wish to provide comments 
containing proprietary or confidential information, please contact the 
agency for alternate submission instructions.

(Authority: 33 U.S.C. 1501, et seq.; 49 CFR 1.93(h))
* * * * *

    Dated: February 27, 2019.

    By Order of the Maritime Administrator.
T. Mitchell Hudson, Jr.,
Secretary, Maritime Administration.
[FR Doc. 2019-03803 Filed 3-1-19; 8:45 am]
 BILLING CODE 4910-81-P