[Federal Register Volume 70, Number 169 (Thursday, September 1, 2005)]
[Notices]
[Pages 52088-52091]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-17447]


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DEPARTMENT OF ENERGY


Environmental Impact Statement: Site Selection for the Expansion 
of the Strategic Petroleum Reserve

AGENCY: Department of Energy.

ACTION: Notice of Intent to Prepare an Environmental Impact Statement 
and Conduct Public Scoping Meetings.

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SUMMARY: The Energy Policy Act of 2005 (EPACT), enacted on August 8, 
2005, directs the Secretary of Energy to acquire petroleum to fill the 
Strategic Petroleum Reserve (SPR) to its authorized 1 billion-barrel 
capacity as expeditiously as possible, and, no later than 1 year after 
enactment, to select sites necessary to expand the SPR from its current 
727 million-barrel capacity to 1 billion barrels. DOE has determined 
that the site selection and expansion required by EPACT constitute a 
major Federal action which may have a significant impact upon the 
environment within the meaning of the National Environmental Policy Act 
(NEPA). For this reason, DOE intends to prepare an environmental impact 
statement (EIS) to assess the proposed capacity expansion at three of 
the four existing SPR storage sites and the development of a new 
storage site in the Gulf Coast region.
    DOE will prepare the EIS in accordance with NEPA, the Council on 
Environmental Quality (CEQ) NEPA regulations (40 CFR Parts 1500-1508) 
and the DOE NEPA regulations (10 CFR Part 1021).

DATES: DOE invites interested agencies, organizations, Native American 
tribes, and members of the public to submit comments or suggestions to 
assist in identifying significant environmental issues and in 
determining the appropriate scope of the EIS. The public scoping period 
starts with the publication of this notice in the Federal Register and 
will continue until October 14, 2005. Written and oral comments will be 
given equal weight and DOE will consider all comments received or 
postmarked by October 14, 2005, in defining the scope of the Draft EIS. 
Written comments postmarked or sent after this date will be considered 
to the degree practicable.
    DOE invites oral comments and suggestions at public scoping 
meetings

[[Page 52089]]

to which agencies, organizations, Native American tribes, and the 
general public are invited. The dates for these meetings are as 
follows:

1. October 4, 2005; 7 p.m. to 9 p.m.; Hattiesburg, Mississippi
2. October 5, 2005; 7 p.m. to 9 p.m.; Pascagoula, Mississippi
3. October 6, 2005; 7 p.m. to 9 p.m.; Houma, Louisiana
4. October 11, 2005; 7 p.m. to 9 p.m.; Lake Jackson, Texas

    The locations of the public scoping meetings were selected based on 
their proximity to the locations of proposed new oil storage sites or 
related major ancillary offsite facilities under consideration. If an 
agency, organization, or a member of the general public desires to have 
a scoping meeting near one of the proposed expansion sites, please 
contact Donald Silawsky at the address listed in the ADDRESSES section 
of this Notice. If DOE decides to host a public scoping meeting near 
one of the proposed expansion sites, DOE will publish an amendment to 
this Notice and other public announcements.

ADDRESSES: Written comments or suggestions on the scope and content of 
the EIS and requests to speak at the scoping meetings should be 
directed to: Donald Silawsky, Office of Petroleum Reserves (FE-47), 
U.S. Department of Energy, 1000 Independence Avenue SW., Washington, DC 
20585-0301; telephone: (202) 586-1892; fax: (202) 586-4446; or 
electronic mail at <a href="/cdn-cgi/l/email-protection#37735859565b5319645e5b5640445c4e775f461953585219505841"><span class="__cf_email__" data-cfemail="c387acada2afa7ed90aaafa2b4b0a8ba83abb2eda7aca6eda4acb5">[email protected]</span></a>. Envelopes and the 
subject line of e-mails or faxes should be labeled ``Scoping for the 
SPR EIS.'' Please note that conventional mail to DOE may be delayed by 
anthrax screening.
    The locations of the scoping meetings are as follows:

1. C.E. Roy Community Center, 300 East 5th Street, Hattiesburg, 
Mississippi
2. La Font Inn, 2703 Denny Avenue, Pascagoula, Mississippi
3. Ramada Inn, 1400 West Tunnel Boulevard, Houma, Louisiana
4. Cherotel Brazosport Hotel and Conference Center, 925 Hwy 332, Lake 
Jackson, Texas

FOR FURTHER INFORMATION, CONTACT: For information on the proposed 
project or to receive a copy of the Draft EIS when it is issued, 
contact Donald Silawsky by any of the means listed in the ADDRESSES 
section of this notice. Additional information may also be found on the 
DOE Fossil Energy website at http://www.fe.doe.gov.
    For further information on the DOE NEPA process, please contact: 
Carol M. Borgstrom, Director, Office of NEPA Policy and Compliance (EH-
42), U.S. Department of Energy, 1000 Independence Avenue, SW., 
Washington, DC 20585-0119; telephone: 202-586-4600; fax: 202-586-7031; 
or leave a toll-free message at: 1-800-472-2756.

SUPPLEMENTARY INFORMATION:

Background and Need for Agency Action

    The SPR is a national stockpile of petroleum, established pursuant 
to the Energy Policy and Conservation Act of 1975, to protect the 
United States from interruption in petroleum supplies that would be 
detrimental to our energy security, national security, and economy. The 
SPR currently consists of four underground oil storage facilities along 
the Gulf Coast, two in Louisiana (Bayou Choctaw and West Hackberry) and 
two in Texas (Big Hill and Bryan Mound), and an administrative facility 
in New Orleans, Louisiana. At the storage facilities, crude oil is 
stored in caverns constructed by the solution mining of rock salt 
formations (salt domes). The four SPR facilities have a current storage 
capacity of 727 million barrels and a current inventory of 700 million 
barrels (August 2005).
    DOE conducted planning activities for the expansion of the SPR to 1 
billion barrels under prior Congressional directives in 1988 and 1990. 
The expansion planning directive in 1988 resulted in an initial plan 
for expansion entitled Report to Congress on Expansion of the Strategic 
Petroleum Reserve to One Billion Barrels. The expansion planning 
directive in 1990 resulted in a Report to Congress on Candidate Sites 
for Expansion of the Strategic Petroleum Reserve to One Billion Barrels 
and the preparation of a Draft Environmental Impact Statement, DOE/EIS-
0165-D in 1992, which assessed five candidate sites for the expansion 
of the SPR to one billion barrels: Big Hill, Texas; Stratton Ridge, 
Texas; Weeks Island, Louisiana; Cote Blanche, Louisiana; and Richton, 
Mississippi. (DOE/EIS-0165-D is available on the DOE Fossil Energy 
website at http://www.fe.doe.gov.)
    Section 301(e) of EPACT directs the Secretary of Energy to 
``acquire petroleum in quantities sufficient to fill the [SPR] to the 
1,000,000,000 barrel capacity authorized under section 154(a) of 
[EPCA].'' In addition, section 303 of EPACT directs that: ``Not later 
than 1 year after the date of enactment of this Act, the Secretary 
shall complete a proceeding to select, from sites that the Secretary 
has previously studied, sites necessary to enable acquisition by the 
Secretary of the full authorized volume of the Strategic Petroleum 
Reserve. In such proceeding, the Secretary shall first consider and 
give preference to the five sites which the Secretary previously 
addressed in the Draft Environmental Impact Statement, DOE/EIS-0165-D. 
However, the Secretary, in his discretion may select other sites as 
proposed by a State where a site has been previously studied by the 
Secretary to meet the full authorized volume of the Strategic Petroleum 
Reserve.''
    In a preliminary review of the five sites addressed in the Draft 
DOE/EIS-0165-D, DOE has concluded that the Weeks Island site and the 
Cote Blanche site are no longer viable alternatives due to the sale of 
DOE's Weeks Island oil pipeline in 1998 and its subsequent conversion 
to natural gas transmission. This pipeline was required for oil 
distribution from these sites. DOE proposes to eliminate these sites 
from further consideration.
    In addition to the sites addressed in Draft DOE/EIS-0165-D, DOE 
proposes to include potential expansions to SPR's West Hackberry and 
Bayou Choctaw, Louisiana, storage sites as well as two potential new 
storage site candidates--Clovelly and Chacahoula, Louisiana. These 
sites have been previously studied by DOE to meet the authorized 
expansion to 1 billion barrels. The proposed expansions of the two 
existing SPR sites would utilize existing infrastructure and pipelines 
of each oil storage site, which would lower development time and cost. 
The two potential new SPR storage site candidates, Clovelly or 
Chacahoula, Louisiana, would provide distribution capabilities to Gulf 
Coast refining regions which are not adequately served by the existing 
SPR storage sites.
    As directed by EPACT, DOE will consider other sites as proposed by 
the States where a site has been previously studied by the Secretary to 
meet the full authorized volume of the Strategic Petroleum Reserve.

Proposed Action

    The proposed action is to expand SPR storage capacity to one 
billion barrels by expanding existing sites at West Hackberry (up to an 
additional 15 million barrels), Bayou Choctaw (up to an additional 30 
million barrels), and Big Hill (up to an additional 108 million 
barrels), and by developing one new oil storage site with up to 160 
million barrels of storage capacity at either Clovelly or Chacahoula, 
Louisiana; Richton, Mississippi; or Stratton Ridge, Texas.

[[Page 52090]]

    For both existing site expansions and a new site, DOE would create 
oil storage caverns in rock salt formations from 1,000 to 6,000 feet 
below ground surface. Caverns would be constructed through a technique 
known as solution mining or leaching using fresh or salt water. 
Leaching generates approximately 80 million barrels of concentrated 
brine wastewater per 10 million barrels in cavern space created. This 
wastewater would be disposed of either by pipeline to diffusers in the 
Gulf of Mexico or by an array of underground injection wells.
    All SPR salt dome storage sites require a raw water system for 
cavern leaching and oil drawdown, a brine setting and disposal system, 
a crude oil injection/distribution system, a fixed fire protection 
system, and a central control system. Major surface buildings and 
structures would include an electrical substation, a control center, an 
administration building, security operations buildings, communication 
structures, a covered laydown area, a fire house, and a warehouse for 
storage and maintenance. To supply the water to a new site, a raw water 
intake structure would be constructed offsite in a surface water body. 
The water and brine systems for leaching caverns would be sized to 
supply up to 1.2 million barrels per day and the crude oil distribution 
system would be designed for drawdown up to one million barrels per 
day. The proposed expansions of existing SPR facilities would, in 
general, use the existing infrastructure and pipelines of the oil 
storage site. Expanding the Big Hill site, however, would require 
additional pumping systems to increase the site's drawdown rate and the 
construction of an additional pipeline to Nederland, Texas, for oil 
distribution.
    The development of a new oil storage site would include the 
construction of offsite infrastructure and pipelines for water supply, 
brine disposal, and for crude oil receipt and distribution. An SPR 
storage site at Clovelly would be co-located on the salt dome with the 
Louisiana Offshore Oil Port (LOOP) petroleum storage terminal and would 
use the existing commercial oil distribution infrastructure. An SPR 
storage site at Chacahoula would require a 58-mile pipeline for brine 
disposal to the Gulf of Mexico, and a 50-mile pipeline for oil 
distribution to the LOOP petroleum storage terminal at Clovelly, and/or 
a 21-mile pipeline to the marine facilities in St. James, Louisiana. An 
SPR storage site at Richton would require two, co-located pipelines to 
Pascagoula, a 96-mile brine disposal pipeline to the Gulf of Mexico and 
a 83-mile oil distribution pipeline; the construction of a 118-mile oil 
distribution pipeline to the Capline Interstate Pipeline injection 
station at Liberty, Mississippi; and the construction of new marine oil 
distribution facilities (docks and storage tanks) in the Port of 
Pascagoula. An SPR storage site at Stratton Ridge would require an 11-
mile brine disposal pipeline and a 37-mile oil distribution pipeline to 
Texas City, Texas.

Alternatives

    DOE is considering developing each of the proposed new oil storage 
sites (Clovelly, Louisiana; Chacahoula, Louisiana; Richton, 
Mississippi: or Stratton Ridge, Texas) as an independent alternative. 
The assessment of each alternative site will include consideration of 
ancillary offsite facilities and alternative pipeline routes to crude 
oil transportation and distribution complexes. As part of each new site 
alternative, DOE will assess a range of alternative capacity expansions 
of the three existing oil storage sites. DOE will review an 80, 96, or 
108 million barrel capacity expansion at Big Hill, a no expansion or a 
15 million barrel capacity expansion at West Hackberry, and a 20 or 30 
million barrel capacity expansion at Bayou Choctaw. This will allow DOE 
to assess a wide range of alternative configurations to achieve the 1 
billion barrel storage capacity, as mandated by the Energy Policy Act 
of 2005. In addition, DOE will assess the no action alternative in 
accordance with the CEQ NEPA regulations (40 CFR 1502.14).

Identification of Environmental Issues

    The purpose of this notice is to solicit comments and suggestions 
for consideration in the preparation of the EIS. As background for 
public comment, this notice contains a list of potential environmental 
issues that DOE has tentatively identified for analysis. This list, 
which DOE developed from preliminary scoping of the proposed expansion 
and similar projects, is not intended to be all-inclusive or to imply 
any predetermination of impacts. Instead, it is presented to facilitate 
public comment on the planned scope and content of the EIS. Additions 
to or deletions from this list may occur as a result of the public 
scoping process. The preliminary list of potential environmental issues 
that may be analyzed in the EIS includes the following:
    (1) Air Quality: The effects of construction and operation of the 
proposed new SPR facilities and expansion at existing sites on local 
and regional air quality.
    (2) Water Resources: The effects of construction (e.g., 
construction in water bodies and brine disposal) and operation (e.g., 
raw water intake and potential spills) on the quantity and quality of 
local and regional marine, freshwater, and groundwater systems.
    (3) Ecological Resources: The effects of construction and operation 
on terrestrial and aquatic plants and animals, including state- and 
Federally-listed threatened and endangered species, and other protected 
resources (e.g., wetlands and essential fish habitat).
    (4) Land Use: The effects of allocating land resources for the SPR 
rather than for other uses (e.g., agriculture, commercial, or 
recreation).
    (5) Geological Resources: The effects on the local geology and 
soils including halokinesis or cavern ``creep,'' subsidence, mixing of 
soil horizons, and compaction.
    (6) Public Health and Safety: The effects of construction and 
operation on public health and safety, including potential incidental 
spills and releases.
    (7) Socioeconomics: The effects of a potential influx of workers 
and the potential increase in demand for local services.
    (8) Cultural Resources: The potential effects on historical, 
archaeological, and culturally important sites.
    (9) Environmental Justice: The potential for disproportionately 
high and adverse effects on populations protected under Executive Order 
12898.

Scoping Process

    To ensure that all issues related to this proposal are addressed, 
DOE will conduct an open process to define the scope and content of the 
EIS. Interested agencies, organizations, Native American tribes, and 
the members of the public are encouraged to submit comments or 
suggestions concerning the content of the EIS, issues and impacts to be 
addressed in the EIS, and alternatives that should be considered.
    Written comments should be sent to DOE as described in the 
ADDRESSES section above. Public scoping meetings will be held at the 
locations, dates, and times listed in the DATES and ADDRESSES sections. 
These meetings will be informal. A presiding officer designated by DOE 
will establish procedures governing the conduct of the meetings. The 
meetings will not be conducted as evidentiary hearings, and those who 
choose to make statements will not be cross-examined by other speakers. 
To request time to speak at the public scoping meetings, please contact 
Donald

[[Page 52091]]

Silawsky via mail, fax, or e-mail as listed in the ADDRESSES section of 
this Notice. Persons may also sign up to speak before each meeting at 
the reception desk at the entrance to the meeting.
    To ensure that everyone who wishes to speak has a chance to do so, 
five minutes will be allotted to each speaker. Depending on the number 
of persons requesting to speak, DOE may allow longer times for 
representatives of organizations. Persons wishing to speak on behalf of 
an organization should identify that organization when they sign up to 
speak.
    A complete transcript of the public scoping meetings will be 
retained by DOE and made available to the public for review via the DOE 
Web site at http://www.fe.doe.gov and during business hours at the 
Department of Energy, Freedom of Information Reading Room, Forrestal 
Building, 1000 Independence Avenue, SW., Washington, DC 20585-0173, and 
at the Department of Energy SPR Project Management Office, 900 Commerce 
Road East, New Orleans, LA 70123-3406. Additional copies of the public 
scoping meetings transcripts will be made available during normal 
business hours at the following locations:

Terrebonne Parish, LA, Terrebonne Parish Public Library, 151 Civic 
Center Blvd., Houma, LA 70360.
Lafourche Parish LA, Martha Sowell Utley Memorial Library, Thibodaux 
Branch, 314 St. Mary Street, Thibodaux, LA 70301-2620.
Jackson County, MS, Pascagoula Public Library, 3214 Pascagoula St, 
Pascagoula, MS 39567.
Perry County, MS, Richton Public Library, 210 N Front St, Richton, MS 
39476.
Brazoria County, TX, Lake Jackson Library, 250 Circle Way, Lake 
Jackson, TX 77566.

Draft EIS Schedule and Availability

    The draft EIS is scheduled to be issued in early spring 2006. The 
availability of the Draft EIS and dates for public hearings soliciting 
comments on it will be announced in the Federal Register and local 
media. Comments on the Draft EIS will be considered in preparing the 
Final EIS. The Draft EIS will be made available for public inspection 
at the libraries identified above.
    Those interested parties who do not wish to submit comments at this 
time, but who would like to receive a copy of the Draft EIS and other 
project materials, please contact Donald Silawsky as provided in the 
ADDRESSES section of this notice.

    Issued in Washington, DC, on August 29, 2005.
John Spitaleri Shaw,
Assistant Secretary for Environment, Safety and Health.
[FR Doc. 05-17447 Filed 8-31-05; 8:45 am]
BILLING CODE 6450-01-P


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