[Federal Register Volume 84, Number 43 (Tuesday, March 5, 2019)]
[Notices]
[Pages 7968-7970]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-03902]


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DEPARTMENT OF TRANSPORTATION

Maritime Administration

[Docket No. MARAD-2019-0012]


Deepwater Port License Application: Texas COLT LLC (Texas COLT)

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 Texas COLT 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-2019-0012.
    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. Ken Smith, USCG or Mr. Linden Houston, 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. Ken Smith, U.S. Coast Guard, 
telephone: 202-372-1413, email: [email protected], or Mr. Linden 
Houston, Maritime Administration, telephone: 202-366-4839, 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 February 4, 2019, MARAD and USCG received an application from 
Texas COLT for all 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

[[Page 7969]]

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 (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 
incorporate the MARAD/USCG 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-2019-0012. 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 the Texas COLT 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 
for the application at docket number MARAD-2019-0012.
    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 their 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 Texas COLT'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 one-half 
(3.50) nautical miles centered at Texas COLT's proposed platform, 
latitude N 28[deg] 26'43.2'' and longitude W 95[deg]18'00.4'' and 0.25 
nautical miles on either side of Texas COLT'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

    Texas COLT 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 DWP would include the loading of various grades 
of crude oil at flow rates of up to 85,000 barrels per hour (bph). At 
full operating capacity, twenty-three Very Large Crude Carrier (VLCC) 
vessels (or equivalent volumes) would be loaded per month from the 
proposed deepwater port. VLCCs can carry cargos of approximately 2 
million barrels of oil. Loading of one VLCC vessel is expected to take 
24 hours.
    The overall project would consist of offshore and marine components 
as well as onshore components as described below.

[[Page 7970]]

    The COLT deepwater port offshore and marine components would 
consist of the following:
     Texas COLT Offshore Manned Platform and Control Center: 
One (1) fixed offshore platform with piles in Brazos Area Outer 
Continental Shelf lease block 466, approximately 27.8 nautical miles 
off the coast of Brazoria County, Texas in a water depth of 
approximately 110 feet. The fixed offshore platform would be comprised 
of several decks including: A sump deck and a cellar deck. The cellar 
deck will have a supporting pig trap, leak detection meter, control 
valve, oil relief (Holding) tank, and associated equipment, complete 
with living quarters, control room and a helideck.
     One (1) 42-inch outside diameter, 27.8-nautical-mile long 
crude oil pipeline would be constructed from the shoreline crossing in 
Brazoria County, Texas, to the COLT deepwater port for crude oil 
delivery. This pipeline would connect the Texas COLT Onshore Delivery 
Pipeline to the offshore Texas COLT deepwater port platform.
     The platform is connected to VLCC tankers for loading by 
two (2) 42-inch outside diameter departing pipelines. Each pipeline 
will depart the offshore platform, carrying the oil to a Pipeline End 
Manifold (PLEM) in approximately 110 feet water depth located one 
nautical mile from the offshore platform. Each PLEM is then connected 
through two 24-inch underbuoy hoses to a Single Point Mooring (SPM) 
Buoy. Two 24-inch floating loading hoses will connect the SPM Buoy to 
the VLCC.
    The Texas COLT deepwater port onshore storage and supply components 
would consist of the following:
     Texas COLT Onshore Storage Terminal: The proposed Onshore 
Storage Terminal would be located in Brazoria County, Texas, on 
approximately 245 acres of land consisting of twenty-five (25) above 
ground storage tanks, each with a working storage capacity of 600,000 
barrels, for a total onshore storage capacity of approximately 15 
million barrels. The Texas COLT Onshore Storage Terminal also would 
include: Eight (8) 2,500-hp vertical product pumps; six (6) 750-hp 
vertical recirculation pumps; two (2) receiving manifolds; one (1) 
product metering station; two (2) motor control centers; nine (9) 
auxiliary electrical control buildings in the storage tank area; one 
(1) administrative building and onshore operations control center and 
one (1) 15,000 square foot warehouse building.
     Texas COLT Pump Station: The Texas COLT Pump Station will 
be at the Texas COLT Onshore Storage Terminal site and will be 
comprised of twelve, 7,000 horsepower (hp) pumps (two banks of six 
pumps including two total spare pumps). The Texas COLT Pump Station 
will boost the system pressure to a maximum flow rate of 85,000 barrels 
per hour.
     Four onshore crude oil pipelines and affiliated facilities 
would be constructed onshore to support the Texas COLT deepwater port 
and include the following items:
    [cir] Genoa Pipeline: One (1) 60-mile-long 24-inch crude oil 
pipeline from Genoa Junction to the proposed Texas COLT Onshore Storage 
Terminal. This pipeline would be located in Harris County, Galveston 
County and Brazoria County, Texas. Additional components include six 
Mainline Emergency Flow Restriction Device (EFRD) valves along the 
pipeline to facilitate shutdowns as needed, two meter stations (Kurland 
Station and Texas COLT Terminal Metering Station), two pump stations 
(Kurland Pump Station and Rosharon Pump Station), launcher traps and 
receiver traps, transfer meter, and surge relief.
    [cir] Gray Oak Connector Pipeline: One (1) 28-mile-long, 30-inch 
inbound pipeline in Brazoria County, Texas from Sweeny Junction to the 
Texas COLT Onshore Terminal. Additional components include one pump 
station (Texas COLT Sweeny Junction Pump Station), and Mainline EFRD 
valves to facilitate shutdowns as needed, as well as a launcher trap, 
receiver trap, transfer meter, and surge relief.
    [cir] Onshore Delivery Pipeline: One (1) 8 mile, 42-inch outbound 
pipeline in Brazoria County, Texas from the Texas COLT Onshore Storage 
Terminal to the Texas COLT Offshore Delivery Pipeline. Additional 
components include three Mainline EFRD Valves along the pipeline to 
facilitate shutdowns as needed.
    [cir] Seaway Pipeline Connection: One (1) 1 mile bi-directional, 
30-inch diameter pipeline and associated facilities in Brazoria County, 
Texas between the Seaway Jones Creek Crude Oil Terminal and the Texas 
COLT Onshore Storage Terminal. The Texas COLT Seaway Pipeline 
Connection will primarily receive crude oil from the Seaway Jones Creek 
Crude Oil Terminal. Additional components include EFRD Valves to 
facilitate shutdowns as needed, launcher trap, receiver trap, transfer 
meter, and surge relief.
    Crude oil will be delivered to the Texas COLT Onshore Storage 
Terminal from existing sources via the Texas COLT Gray Oak Connector 
Pipeline, Texas COLT Genoa Pipeline, and Texas COLT Seaway Pipeline 
Connection. Crude oil will be delivered to the Texas COLT Offshore 
Manned Platform and Control Center via the Texas COLT Onshore Delivery 
Pipeline and continuing through the Texas COLT Offshore Delivery 
Pipeline. The Texas COLT Deepwater Port will transfer the crude oil to 
VLCCs through two separate SPM Buoy systems. VLCCs will moor to the SPM 
Buoys with support from assist vessels.

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 28, 2019.

    By Order of the Maritime Administrator.
T. Mitchell Hudson, Jr.,
Secretary, Maritime Administration.
[FR Doc. 2019-03902 Filed 3-4-19; 8:45 am]
BILLING CODE 4910-81-P