Hurricane Ike Situation Report \# 3

**September 15, 2008 (10:00 AM EDT)**

######### <http://www.oe.netl.doe.gov/emergency_sit_rpt.aspx>

######### 

######### Summary

> ![](media/image1.wmf)
>
> **Notes:**
>
> Total state customers are based on 2006 EIA Customer Data.
>
> Note: due to a large number of service providers, including investor
> owned utilities and cooperatives, the number of customer outages
> reported may not be comprehensive.
>
> **Source:**
>
> Crude Oil and Natural Gas Production Data from Minerals Management
> Service.
>
> Refinery Status confirmed by company or on company web site and
> through various trade press sources.

######### \* % capacity out represents percent of production capacity in the Gulf of Mexico.

######### 

######### Highlights:

-   As of 10:00 AM EDT September 15, there are an estimated 3,865,340
    customers reported without power in five States affected by Ike:
    Texas, Louisiana, Arkansas, Ohio and Kentucky. As the Ike system
    moved north, it caused additional outages in States throughout the
    Ohio Valley and into the Northeast. The largest outages are in Texas
    where 2,374,187 customers remain without power. Since Ike Situation
    Report No. 2 power has been restored to approximately 100,000
    customers in Texas and 75,000 customers in Louisiana.

-   The U.S. Department of Energy reported on September 14 that the
    Strategic Petroleum Reserve began delivery of 200,000 barrels of
    emergency exchange oil to ConocoPhillips' Wood River refinery along
    the Capline pipeline system and an additional 109,000 barrels of
    emergency exchange oil to Placid Oil's Port Allen refinery along a
    Shell pipeline in Louisiana.

-   As of 09:30 AM EDT September 15, Gulf Ports and waterways are still
    closed from Freeport, TX east to Lake Charles, LA. This includes the
    Gulf Intracoastal Waterway, which also has additional restrictions
    east of Lake Charles. As of September 14, draft restrictions were
    lifted for Corpus Christi, Texas. The Lower Mississippi River has a
    safety zone from mile marker 113 to 115 and is open to one way
    traffic in this area.

-   As of 1:45 AM EDT September 15, the LOOP resumed tanker offloadings.
    The LOOP continues to make deliveries to customers from its Clovelly
    storage facility.

-   As of this 7:15 AM EDT September 15, Colonial pipeline is
    maintaining operations at reduced flow, ready to receive supply.

######### ESF 12 Actions:

-   ESF-12 is working to facilitate restoration of critical assets in
    the affected area. ESF-12 also is working closely with those
    conducting assessments of physical energy infrastructure in the
    field which will assist in developing restoration estimates. On
    September 14, ESF-12 worked with DHS to facilitate air-based damage
    assessments of the CenterPoint and Entergy electric transmission
    systems. ESF-12 responders participated in the flights to assist in
    these assessments.

-   ESF-12 is staffing the FEMA Region VI Regional Response Coordination
    Center (RRCC) in Denton, TX, the FEMA Region VI Joint Field Office
    (JFO) in Austin, TX, the FEMA Region VI (JFO) in Baton Rouge, LA,
    and the National Response Coordination Center (NRCC) in
    Washington, DC. In addition, a petroleum expert has been deployed to
    San Antonio, TX to serve as part of FEMA\'s National Incident
    Management Assistance Team (IMAT) and an electricity expert has been
    deployed to join the Region IV IMAT in Houston, TX.

**Situation Report Detail**

**Petroleum & Gas Information**

![](media/image2.wmf)**Source:** Minerals Management Service

-   As of September 14, the Minerals Management Service (MMS) reports
    6,801 million cubic feet per day (MMcf/d) of the Gulf's natural gas
    production remains shut-in, equivalent to 91.9 percent of the Gulf
    production. MMS reports 1,295,223 barrels/day of the Gulf's crude
    production remains shut-in, equivalent to 99.6 percent of the Gulf's
    crude production. A total of 591 production platforms, or 82.4
    percent of the Gulf's 717 manned platforms, have been evacuated.
    Personnel from 92 rigs, representing 76.0 percent of those operating
    in the region, have been removed.

-   On September 15, the head of Louisiana's Department of Natural
    Resources reports that the "basic infrastructure of the state's oil
    and gas industry appears to have weathered the storm with almost no
    damage.\" The Department also reported that only 18,621 barrels/day
    or 12 percent of the normal Louisiana production has been restored.
    Operators in 17 parishes and in State offshore areas normally
    produce 155,767 barrels/day (the numbers are in addition to MMS
    reports of Federal offshore production). On September 15, 80,978
    barrel/day or 52 percent of the normal production remains shut-in
    and status is unknown for 56,167 barrels/day.

-   As of 9:00 AM EDT September 15, fourteen refineries in Texas and
    Louisiana are reported shut down due to Hurricane Ike. These
    refineries located in Lake Charles/Port Arthur and Houston/Texas
    City, and have a total operable capacity of 3.6 million b/d. (See
    table below.)

-   Shell reports as of 7:00 PM September 14 that 30 to 40 percent of
    our company-branded stations in Houston and Beaumont are now open,
    and it is anticipated that an additional 20 stations will be open by
    the end of September 14. The safety review of the Beaumont Terminal
    was completed and operations resumed on the evening of September 14.

-   Oil refineries suffered minimal damage from Hurricane Ike and are
    making preparations to restart operations. Valero reports no
    significant structural damage. The company's Houston refinery has
    some power, but its Texas City and Port Arthur refineries still need
    electricity supply restored Shell is still assessing its Deer Park
    and Port Arthur refineries. Deer Park sustained some damage and as
    of last night, Deer Park still had no electricity service.
    ConocoPhillips said its Sweeny, Texas, refinery has power and the
    company\'s Lake Charles refinery is operating at reduced rates.
    Exxon Mobil said its Beaumont, Texas refinery is without power.

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-   Chevron reports that numerous retail stations in Houston and
    Galveston are reporting power outages. They are deploying generators
    to repower key stations and provide fuel to customers. Additional
    Chevron transport trucks are being sent into the Houston area to
    speed refueling at stations.

![](media/image3.wmf)

**Note:** The table does not include all refineries in the PADD III,
Gulf Coast Region.

Storm column indicates hurricanes impacting refineries: G = Gustav; I =
Ike, G+I = Both storms, and - = no impact.

**Sources:** Confirmed by company or on company web site. Various trade
press sources.

-   ConocoPhillips reports that outlets along evacuation routes in the
    south Texas area are a priority for fuel supply. The company reports
    that additional fuel supplies have been made available for outlets
    in those areas. While they report a few spot retail store outages in
    the area, most outages have been reported in Louisiana which were
    due to Hurricane Gustav.

-   As of 10:00 AM EDT September 14, the Strategic Petroleum Reserve
    (SPR) sites at Bryan Mound, TX, Big Hill, TX, and West Hackberry, LA
    remain shut down. The Bayou Choctaw SPR site is operational.

-   Major crude pipelines originating in Texas and Louisiana shut down
    operations in advance of Hurricane Ike, and many remain shut. 
    Colonial pipeline reported at 7:15 AM EDT September 15, that the
    pipeline is ready to receive injects from storage facilities and
    refineries. Portable generators have been delivered to Beaumont
    where, after hookup today, they will be used to draw barrels from
    refineries in Port Arthur and Hebert on September 16.  Explorer
    announced that it has conducted an initial assessment of its Gulf
    Coast facilities, which appear to have no damage.   (See table
    below.)

![](media/image4.wmf)**Source**: Status of pipelines from Association of
Oil Pipe Lines; Capacity data from company web sites.

-   The Independence Hub platform, located about 150 miles offshore LA
    in Mississippi Canyon reported gas flow of over 600 million cubic
    feet on September 14, 2008. This platform is the largest producing
    platform representing approximately 12% of the offshore Gulf of
    Mexico natural gas production and in July 2008, production from the
    Hub averaged over 800 MMcf/d.

-   As of 8:00 AM EDT September 15, there have been no reports of any
    significant damage to natural gas pipelines or production
    infrastructure. Pipeline personnel are beginning to return to
    facilities and have started damage assessments.

-   Texas Eastern Transmission reports the mainline capacity in south TX
    has been restored to pre-Hurricane Ike levels, but has notified
    customers that several Gulf Coast area compression facilities are
    operating on emergency backup generators as commercial power is
    unavailable. Texas Eastern also reports there is no significant
    damage to the pipeline's facilities due to Ike, but those offshore
    points from Gustav remain shut-in pending additional damage
    assessments.

-   As of 7:55 PM EDT September 14, Destin Pipeline Company notified its
    customers that the Force Majeure event in affect since Gustav
    (August 30) is now terminated and all receipt points along the
    system will accept gas flow starting September 15. Destin extends
    195-miles of 36-inch diameter pipeline from deepwater offshore to
    the Pascagoula processing plant in MS.

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-   There are 39 major natural gas processing plants in the path of
    Hurricane Ike with a total operating capacity of 17.6 billion cubic
    feet per day (Bcf/d). As of 10:00 AM EDT, September 15, twenty-seven
    of these plants have been confirmed as shut down which includes
    those plants still impacted from Gustav. This is a decrease of 3
    plants that were reported as shut down in Situation Repot #2 where
    all three plants are now capable to restart once power is restored
    and/or upstream gas flow is available. The total shut down operating
    capacity is 13.85 Bcf/d. In addition, 8 plants with total capacity
    of 2.9 Bcf/d, have been confirmed as operating at reduced or normal
    levels and currently there is no information on the status on 1
    plant with capacity of less then 0.2 Bcf/d. See table below.

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-   As of 10 AM EDT, September 14, many gas processing plants have
    reported that detailed damage assessments will take place over the
    next few days. Recovery rates will likely vary from facility to
    facility and are also dependant on recovery of upstream and
    downstream flows.

-   DCP Midstream report that some of the company's facilities have
    sustained minor building damage. In addition, as electrical power
    and natural gas liquids takeaway service providers are restored, the
    company's facilities will be brought back online slowly.

-   Enterprise Products Partners announced that initial inspections of
    their facilities indicate minimal to no visible damage to its
    onshore assets on the TX and LA Gulf Coast. Enterprise expects that
    most of its facilities will quickly resume normal operations. The
    loss of commercial power at the company's facilities in TX
    represents the most significant challenge facing Enterprise Products
    Partners in the recover from Hurricane Ike.

![](media/image5.wmf)

> ![](media/image6.wmf)**Note:** Storm column indicates hurricanes
> impacting processing plant: G = Gustav; I = Ike, G+I = Both storms,
> and M = Maintenance

"N/A" (Not Available or Confirmed) identifies those plants that are in
the path of Ike that have not yet been confirmed of their status. ^1^
The capacity represents the design capacity of the plants and does not
represent the actual gas flow through these plants.

^2^ Confirmed plants capable to restart after electricity is restored or
when upstream gas flow commences service.

**Sources:** Confirmed by company or on company web site. Various trade
press sources.

Electricity Updates:

  ---------------- -------------------------------------------------- ----------------------------------------------------
  **Louisiana:**                                                      ![](media/image7.wmf){width="0.7277777777777777in"
                                                                      height="0.7326388888888888in"}

  **As of:**       9/15/2008 6:00 AM EDT                              
  ---------------- -------------------------------------------------- ----------------------------------------------------

![](media/image8.wmf)Total state and utility customers are based on 2006
EIA Customer Data; Electric Cooperative customer totals provided by
Louisiana Public Service Commission.

> Note: due to a large number of service providers, including investor
> owned utilities and cooperatives, the number of customer outages
> reported may not be comprehensive.

-   As of 6:00 AM EDT September 15, there are 125,990 customers without
    power in Louisiana. Of these outages, 114,129 are due to Ike.
    Gustav-related outages are down to 11,861.

-   In Louisiana, Ike caused outages for 37 lines and 51 substations of
    which 19 lines and 15 substations have been restored. Remaining
    Gustav damage to the transmission system includes 16 lines and nine
    substations out of service.

  ------------ -------------------------------------------------- -------------
  **Texas:**                                                      

  **As of:**   9/15/2008 8:00 AM EDT                              
  ------------ -------------------------------------------------- -------------

> ![](media/image9.wmf)Total utility customers are based on field
> reports.
>
> Note: due to a large number of service providers, including investor
> owned utilities and cooperatives, the number of customer outages
> reported may not be comprehensive.

-   In Texas, over 2.3 million people are reported without power. The
    majority of these are customers of CenterPoint and Entergy.

-   Centerpoint reports that 1,129 distribution circuits, out of a total
    of 1,492, are out. There are 66 transmission lines out.  Eight
    substations are without transmission service. There is no report at
    this time of any transmission tower being down, only wood poles.

-   Entergy reports transmission outages caused by Ike include 278 of
    312 substations and 183 of 187 transmission lines out of service in
    Texas. Entergy's Lewis Creek plant in Montgomery County, Texas, has
    shut down as a result of storm damage. The plant will be able to
    restart within a few hours after offsite power is restored.
    Hurricane Ike flooded Entergy's Sabine Power plant in Bridge City,
    Texas, with up to four feet of water. The flood has caused extensive
    damage to the plant that could take weeks to repair.

> **Additional State Reports:**

-   There are an estimated 107,963 customers in Arkansas who remain
    without power. Entergy reports 101,441 customers without power as of
    6:00 AM EDT September 15, and SWEPCO reports 6,522 without power as
    of 10:00 PM EDT September 14. Entergy reports the majority of
    repairs should be complete within a few days. More difficult cases
    may take up to a week. Entergy has restored 38 of the 39 substations
    in Arkansas, and four of the eleven transmission lines affected by
    Hurricane Ike.

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-   As of 7:45 EDT September 15, approximately 472,500 or 22 percent of
    total customers in Kentucky are without power. A majority of these
    outages are occurring in Duke Energy, Louisville Gas & Electric and
    Kentucky Utilities service territories.

-   As of 7:45 EDT September 15, approximately 784,700 or 14 percent of
    total customers in Ohio are without power. A majority of these
    outages are occurring in the Duke Energy and AEP Ohio service
    territories.

**Restoration Updates:**

-   As of 10:00 PM EDT September 14, CenterPoint had restored power to
    more than 425,000 customers. 250 circuits have been restored out of
    the original 1,379 that were out. 28 transmission lines have been
    restored out of the original 94 that were out. CenterPoint reports
    that full restoration may take four weeks or longer, pending full
    assessments.

-   CenterPoint reports that 7,000 mutual assistance personnel began to
    arrive September 14 to assist in restoration. Highlights of
    CenterPoint restoration to date include:

    -   The Katy, Richmond and Rosenberg areas

    -   Hobby Airport and Ellington Field

    -   Coastal Water Authority Lynchburg water pumping station, a major
        source of water for the City of Houston and other smaller
        communities in the area

    -   Service restoration for one water treatment facility and one
        wastewater treatment plant in the City of Houston

    -   Several area hospitals

-   Entergy is shifting crews from Louisiana to Texas. Entergy's total
    restoration workforce to 14,500, with 7,000 in Texas, 6,700 in
    Louisiana and 900 in Arkansas