[Federal Register Volume 61, Number 124 (Wednesday, June 26, 1996)]
[Notices]
[Pages 33094-33095]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-16191]



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DEPARTMENT OF COMMERCE
[Docket 52-96]


Foreign-Trade Zone 116--Port Arthur, TX Application for Subzone 
Status U.S. Department of Energy Strategic Petroleum Reserve (Crude Oil 
Storage) Jefferson County, TX

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Foreign-Trade Zone of Southeast Texas, Inc., grantee 
of FTZ 116, Port Arthur, Texas, requesting special-purpose subzone 
status for the crude oil storage facilities of the U.S. Department of 
Energy Strategic Petroleum Reserve (SPR) located in Jefferson County, 
Texas. The application was submitted pursuant to the provisions of the 
Foreign-Trade Zones Act, as amended (19 U.S.C. 81a-81u), and the 
regulations of the Board (15 CFR part 400). It was formally filed on 
June 18, 1996.
    The SPR involves an emergency stockpile of crude oil (over 590 
million barrels) stored in underground caverns at five sites in 
Louisiana and Texas. Currently, all crude oil is owned by the U.S. 
Government. However, in 1995, the U.S. Department of Energy commenced 
plans to conduct commercial crude oil storage and terminal activities 
at SPR facilities for foreign governments.
    This application involves SPR's ``Big Hill'' facility (274 acres, 
149 employees), located in Jefferson County, Texas, some 25 miles west 
of Port

[[Page 33095]]

Arthur. It consists of a main crude oil storage site (14 underground 
caverns/160 million barrel capacity) and a 24-mile pipeline connecting 
to the Sun Marine Terminal in Nederland, Texas.
    Zone procedures would exempt foreign crude oil that is reexported 
from Customs duty payments. On domestic sales, duties on such oil could 
be deferred until formal Customs entry is made. The duty on crude oil 
ranges from 5.25 barrel to 10.5/barrel. Foreign merchandise would also 
be exempt from state and local ad valorem taxes. The application 
indicates that the savings from zone procedures would help the SPR to 
lease under-utilized crude oil storage capacity to foreign governments, 
thus generating revenues for the General Treasury.
    In accordance with the Board's regulations, a member of the FTZ 
Staff has been designated examiner to investigate the application and 
report to the Board.
    Public comment is invited from interested parties. Submissions 
(original and 3 copies) shall be addressed to the Board's Executive 
Secretary at the address below. The closing period for their receipt is 
August 26, 1996. Rebuttal comments in response to material submitted 
during the foregoing period may be submitted during the subsequent 15-
day period (to September 9, 1996).
    A copy of the application and accompanying exhibits will be 
available for public inspection at each of the following locations:

U.S. Department of Commerce Export Assistance Center, Suite 1160, 500 
Dallas, Houston, Texas 77002
Office of the Executive Secretary, Foreign-Trade Zones Board, Room 
3716, U.S. Department of Commerce, 14th & Pennsylvania Avenue, NW., 
Washington, DC 20230

    Dated: June 18, 1996.
John J. Da Ponte, Jr.,
Executive Secretary.
[FR Doc. 96-16191 Filed 6-25-96; 8:45 am]
BILLING CODE 3510-DS-P