84 FR 30301 - Deepwater Port License Application: Bluewater Texas Terminal LLC

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.

[Federal Register Volume 84, Number 123 (Wednesday, June 26, 2019)]
[Notices]
[Pages 30301-30303]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2019-13637]


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DEPARTMENT OF TRANSPORTATION

Maritime Administration

[Docket No. MARAD-2019-0094]


Deepwater Port License Application: Bluewater Texas Terminal LLC

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 Bluewater Texas Terminal LLC 
(Bluewater) 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-2019-0094.
    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. Roddy Bachman, 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. Roddy Bachman, U.S. Coast Guard, 
telephone: 202-372-1451, 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 May 30, 2019, MARAD and USCG received an application from 
Bluewater Texas Terminal LLC (Bluewater) 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

[[Page 30302]]

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 (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-2019-0094. 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 Bluewater'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-2019-0094.
    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 following 
the publication of the Final Environmental Impact Statement.
    The Maritime Administrator must render a decision on the 
application within 90 days after the final hearing.
    In accordance with 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 Bluewater's application 
area and designates an application area encompassing the deepwater port 
that is a circle having a radius of 3.46 nautical mile centered at N 
27[deg]53.801' W 96[deg]38.416. MARAD notes that the application area 
includes an established safety fairway, which will be examined from a 
navigation safety perspective by USCG as part of its review of the 
Bluewater application. 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

    Bluewater is proposing to construct, own, and operate a deepwater 
port terminal in the Gulf of Mexico (GOM) to export domestically 
produced crude oil. The proposed project involves the design, 
engineering, and construction of a deepwater port, approximately 56.48 
miles of pipeline infrastructure, and a

[[Page 30303]]

booster station. The Bluewater 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. During single vessel 
loading operations, the proposed project is capable of loading rates of 
up to approximately 80,000 barrels per hour (bph) and during 
simultaneous vessel loading operations, the proposed project is capable 
of loading rates of 40,000 bph. The facility is expected to service 16 
Very Large Crude Carriers (VLCCs) per month.
    For the purposes of this application, the proposed Bluewater 
project is described in three distinguishable segments by locality, to 
include the onshore components, the inshore components and the offshore 
components.
    Onshore components associated with the proposed Bluewater project 
are defined as those components on the landward side of the western 
Redfish Bay Mean High Tide (MHT) line, located in San Patricio and 
Aransas Counties, Texas. The onshore project components include:
     Approximately 22.20 miles of two (2) new parallel 30-inch-
diameter crude oil pipelines extending from a planned multi-use 
terminal located south of the City of Taft in San Patricio County, 
Texas. The planned multi-use terminal will consist of multiple inbound 
and outbound crude oil pipelines. Two of those outbound pipelines 
compose the proposed pipeline infrastructure that will extend to the 
inshore pipeline which connects to the proposed Harbor Island Booster 
Station (Booster Station) described below.
    Inshore components associated with the proposed Bluewater project 
are defined as those components located between the western Redfish Bay 
MHT line and the MHT line located at the interface of San Jose Island 
and the GOM. Inshore project components include:
     Approximately 7.15 miles of two (2) new 30-inch-diameter 
crude oil pipelines connecting to the onshore facility, an 
approximately 19-acre booster station and a connection to the offshore 
pipeline. The onshore pipeline would be located within San Patricio 
County, Texas and Nueces County, Texas and the Booster Station would be 
located on Harbor Island in Nueces County, Texas.
     The Booster Station will include approximately 19 acres of 
land with two (2) aboveground crude oil storage tanks, each with a 
total storage capacity of 181,000 barrels and two (2) 181,000-barrel 
water storage tanks. The purpose of water tanks is to allow for the 
clearing of the pipeline infrastructure. During clearing operations, 
water from the water storage tanks would be pumped through the 
pipelines and back to the Booster Station. The displaced crude oil 
would be placed in the two crude oil storage tanks.
     Additionally, the Booster Station will contain equipment 
and piping to provide interconnectivity with the crude oil supply 
network for the Bluewater project. This would include the installation 
of four (4) 5,500 horsepower electrically powered motors in a series 
electronically locked into operation as two booster pumping systems 
delivering approximately 11,000 horsepower to each of the two (2) 30-
inch diameter pipelines. Further, the Booster Station would house the 
necessary infrastructure to support the transport of crude oil through 
the proposed pipeline infrastructure to the deepwater port for the 
loading of moored vessels to include a fire water tank, firewater 
pumps, stormwater runoff treatment plant and pumps, emergency 
generator, foam and water monitors and an operations office.
    Offshore components associated with the proposed Bluewater project 
are defined as those components located seaward of the MHT line located 
at the interface of San Jose Island and the GOM. The offshore project 
components include:
     Approximately 27.13 miles of two (2) new 30-inch-diameter 
crude oil pipelines extending from the shoreline crossing at the 
interface of San Jose Island to the offshore Bluewater deepwater port 
for crude oil delivery to Single Point Mooring (SPM) buoys.
     Two (2) SPMs in Outer Continental Shelf Matagorda Island 
Area TX4 lease blocks 698 and 699, approximately 15 nautical miles 
(17.26 statute miles) off the coast of San Patricio County, Texas in a 
water depth of approximately 89 feet.
     A catenary anchor leg mooring (CALM) system for each SPM 
buoy connected to a pipeline end manifold (PLEM) system, mooring 
hawsers, floating hoses, and sub-marine hoses to allow for the loading 
of crude oil to vessels moored at the proposed deepwater port. The SPM 
buoy system will be permanently moored with a symmetrically arranged 
six-leg anchor dual chain configuration extending to twelve (12) 72-
inch-diameter pile anchors installed on the seafloor.
     Each of the proposed SPM buoy systems will consist of 
inner and outer cylindrical shells subdivided into twelve equal-sized 
watertight radial compartments. A rotating table will be affixed to the 
SPM buoy and allow for the connection of moored vessels to the SPM buoy 
system via mooring hawsers. Two floating hoses equipped with marine 
break-away couplings will be utilized for the transfer of crude oil 
from the SPM buoy systems to the moored vessel. Floating hoses will be 
equipped with strobe lights at 15-foot intervals for detection at night 
and low-light conditions.

Privacy Act

    The electronic form of all comments received into the Federal 
Docket Management System can be searched by the name of the individual 
submitting the comment (or signing the comment, if submitted on behalf 
of an association, business, labor union, etc.). The DOT Privacy Act 
Statement can be viewed in the Federal Register published on April 11, 
2000 (Volume 65, Number 70, pages 19477-78) or by visiting http://www.regulations.gov.

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

    Dated: June 21, 2019.

    By Order of the Maritime Administrator.
T. Mitchell Hudson, Jr.,
Secretary, Maritime Administration.
[FR Doc. 2019-13637 Filed 6-25-19; 8:45 am]
BILLING CODE 4910-81-P