Loading...
HomeMy WebLinkAbout(01) TGSD PLEASURE ISLAND DOCK FACILITIES PROJECT TGSD PI Dock Facilities' USACE Permit Summary TGS Development, LP ( "TGSD ") applied for a Section 404 permit with the US Army Corps of Engineers ( "USACE ") in November 2011 for a project to build a liquid petroleum terminal on Pleasure Island in Port Arthur, Texas. TGSD secured the right to develop the site from the Pleasure Island Commission of the City of Port Arthur. PI Dock Facilities LLC entered into a long -term lease for the site in December 2012. The site was selected based upon its unique proximity to the existing turning basin located at the Port Arthur Junction on the Sabine Neches Waterway. The site was also previously used as a dry dock facility and was constructed pursuant to the USACE Permit No. SWG- 2007 -2522 (Formerly 17044). The site's previous use and location result in significantly reduced dredging requirements compared to other potential projects sites. The project as originally designed was issued for Public Notice on May 2, 2012. In response to comments from the Public Notice and concerns related to the construction of the pipeline near the toe of the USACE Placement Area 8 ( "PA8 ") levee, TGSD revised the proposed pipeline route to include a horizontal directional drill ( "HDD ") from the lease site to near where the pipeline turns to cross the ship channel. The proposed HDD was designed to cross under a portion of PA8 with the top of pipe elevation at minus 59 feet under the majority of PA8. A meeting was held with Richard Whitmire, the local USACE representative, to discuss the revised routing and the HDD under PA8. It was determined that there should be no problems with USACE digging for material and placement of material for the levee over the pipeline. A revised permit package including the new pipeline routing was submitted to the USACE on July 5, 2012. The permit package was issued for a 15 -day Interagency Coordination Notice on November 6, 2012. On November 26, 2012, TGSD was informed that the USACE needed no further information and that the USACE would develop a decision document for the project. On December 13, 2012, the USACE issued an email stating that USACE Regulatory received notice from the USACE Operations and Navigation Division ( "USACE OD -N ") stating that they wanted to review the TGSD permit action concerning the real estate easement. As a result, the permitting process is on hold until a resolution to the USACE OD -N concerns can be identified. The current delay is associated with the USACE OD -N concern over the projects location relative to federally owned lands. Chris Frabotta, Deputy Chief of Operations Division and Chief of Navigation Branch, indicated that his group has determined that a portion of the project is planned to be located on property in which the US Government has an interest. TGSD understands that the USACE OD -N basis for the US Government's interest is tied to an easement and a Memorandum of Agreement held for portions of the project site. TGSD has requested copies of these documents from the USACE OD -N along with support for any other claim the USACE might have for rights to portions of the project site. The USACE OD -N has stated that their primary concerns include the location of a tank farm on US lands and ensuring the long- term integrity of the pipeline planned to cross under PA8.