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1,1,01q Environmental Systems Section OFFSHORE OIL AND COASTAL ENERGY FACIt ITIES STUDY: INTERIM REPORT Middlesex County Planning Board TD New Brunswick, New Jersey 195 .P4 m54 1977 COASTAL ZONE INFORMATION CENTER OFFSHORE OIL AND COASTAL ENERGY FACILITIES STUDY: INTERIM REPORT AUGUST, 1977 Property of CSC Library Prepared By The Middlesex County Planning Board Environmental Systems Section New Brunswick, New Jersey U.S. DEPARTMENT OF COMMERCE NOOA COASTAL SERVICES CENTER 2234 SOUTH HOBSON AVENUE CHARLESTON, SC 29405-2413 The preparation of this report was supported by funds granted to the Middlesex County Board of Chosen Freeholders by the New Jersey State Department of Environmental Protection, Office of Coastal Zone Manage- ment and the U.S. Department of Commerce National Oceanic and Atmospheric Administration as authorized by Section 305 of the Federal Coastal Zone Management Act of 1972, as amended. TABLE OF CONTENTS INTRODUCTION PAGE The Study of Offshore Oil anc Coastal Energy Facilities The Audience Statement of Purpose Objectives I. Existing Energy Facilities: Components in a Regional Pattern of Energy Supply A. The Current Pattern of Supply 1. The United States 2. The North Atlantic Region 2 B. Inventory of Existing Facilities in Middlesex County 4 1. Petroleum Refineries 4 2. Marine Terminals 10 3. Pipelines and Pipeline Terminals 13 4. Petrochemical Industry 16 II. Outer Continental Shelf Activities 18 A. Phases of OCS Oil and Gas Activity 21 B. Description, Impacts and Requirements Facilities 23 1. Temporary Service Bases 23 2. Permanent Service Bases 24 3. Steel Platform Installation Support Bases 2 5 4. Repair and Maintenance Yards 26 5. Transportation 27 6. Pipeline Installation Support Bases 29 7. Partial Processing Plants 30 8. Gas Processing Treatment Plants 31 9. Refineries 32 10. Platform Fabrication Yards 34 11. Pipe Coating Yards 37 12. Tank Farms 38 C . The Potential for OCS Related Facilities Locating in Middlesex 39 County 1. High Development Projection 42 2. Medium Development Projection 48 3. Low Development Projection 50 4. Summary 51 III. The Demand for Petroleum and Petroleum - Related Facilities 52 A. Projections of Future Energy Demands 52 B. The Potential for New Growth in Petroleum - Related 56 Facilities IV. Development Opportunities for OCS and Energy Facilities 71 A. Areas Meeting Industrial Siting Criteria of Petroleum 73 Related Facilities V. Appendices A. Tentative Table of Contents for Final Report A-1 B. Map: Industrial Zoned Lands B-1 Bibliography INTRODUCTION The Study of Offshore Oil and Coastal Energy Faciliti-es Middlesex County's Offshore Oil and Coastal Energy Facilities Planning Study is part of a joint State/Federal government effort to develop comprehensive policies and programs for the management of coastal areas. The coastal zone is an area in which industry, trade, recreation, waste disposal, and conservation interests all press most. sharply on the limited resources of the environment. The rapidly increasing pressures in the coastal zone are created,by the problems of conflicting use, as evidenced by the continuing destruction of valuable coastal wetlands and beaches. These competing pressures are best dealt with by a management system which permits conscious and informed decision-making to be made from among develop- ment alternatives. The United States Congress enacted the Coastal Zone Management Act (CZMA) oil 1972 (Public Law No. 92-583; 90 Stat. 1013) to help institute such a management system for coastal areas. Section 305 of the CZMA authorizes funds for the development of state coastal zone management programs to each coastal state. New Jersey's Depart- ment of Environmental Protection Office of Coastal Zone Manaaement (NJDEP/OCZM) is in the midst of its third year CZMA authorized grant. As part of its third year program NJDEP/OCZM contracted with eleven coastal county planning boards and one county environmental agency to begin Pre- liminary planning for the onshore impacts of offshore oil and other coastal energy facilities. The Middlesex County Planning Board's Offshore Oil and Coastal Energy Facilities Planning Study is funded with a grant from a DEP/OCZM contract. i Under the contract, the Planning Board is expected to: 1) analyze the capability of local governments to respond to the opportunities and cone with the problems of offshore oil and energy facility develoPment; and 2) identify from the local and county government perspective, the geographic areas suitable of unsuitable for specific eneray facilities. This document is an interim report which has been prepared to provide information and to stimulate communication between the municipalities, the County, and the public. This interim report is intended to serve as a basis for further discussion; it is the foundation for communication, coordination, and cooperation. The Audience This report is primarily addressed to municipal and county officials who may soon be faced with decisions regarding the development of offshore oil and coastal energy facilities. The report Provides these officials, the public and all interested groups with information on: 1) existing petroleum related facilities and; 2) the types, requirements, and impacts of new facilities that may seek to locate in Middlesex County. This facility information is presented for use by all parties interested in evaluating current energy facility siting policies and then in developing new plans and policies that suit the desires and needs of communities in Mliddlesex County. Statement of Purpose It has been estimated that the amount of energy demanded by the North ii Atlantic Region will increase by more than 100 percent between 1975 and 2000. This increasing demand will result in changes in the number and types of energy facilities needed in the region, The interim report identifies the ranges (in number and type) of the petroleum-related facilities that may seek to locate in the North Atlantic Region and, specifically, in Middlesex County. The report does not attempt to answer the questions of whether or where the facilities should locate in Middlesex County. Rather, the main purpose of this report is to provide the municipalities, the County, and the Public with information that they can use to collaboratively arrive at decisions concerning the development of offshore oil, and other coastal energy facilities in the County. The report has been presented in an interim form to allow decision makers and interested parties to begin to convey their preferences and concerns as to the types and location of various facilities. Objectives The Interim Report has the following objectives: 1. To identify the type, number, and location of energy facilities already existing in Middlesex County; 2. To introduce interested parties and decision makers to the types and impacts of facilities associated with offshore oil and gas activities and other petroleum related activities (i.e., importing, storage and distribution of crude and refined petroleum products); 3. To discuss the potential for development of petroleum re- lated facilities in Middlesex County; iii 4. To identify areas in Middlesex County that satisfy the industrial siting criteria for Petroleum related facilities; S. To provide municipal and county officials and all interested parties with information useful in determining the suitability of a range of sites for the development of various facilities. iv EXISTING PETROLEUM-RELATED FACILITIES: COMPONENTS IN A REGIONAL .PATTERN OF-ENERGY SUPPLY A. The Current Pattern of Petroleum Supply 1. The United States The United States uses more energy per person than any other nation in the world. Petroleum is the nations primary energy source, accounting for 45% of the nation'sconsumption. In the past twenty years, oil consumption in the U.S. has nearly doubled. As our nation's hunger for petroleum has been steadily rising, domestic production, having reached a peak of 11.2 m-illion barrels per day (MB/D) in 1970, has been steadily declining. To fill the increasing gap between demand and domestic supply, foreign oil is being imported in ever increasing quantities. Figure I-1 shows these trends in U.S. oil consumption. FIGURE I-1 20- U.S. O_IL__@@O_SUMPTICN IMPORTS 2,4 . . . .N DOMESTIC 15 - 23%/ 43% 21%, 10- OR /19%/ @5%/ A ........ .. 2 79'% 5 f 5- 1 .@; 8i%- 7 7 % 85% & WN 0. 1955 196o 1965 1970 1976 SOURCE: U.S. Bureau of mines Foreign oil imports have increased significantly since 1970, when domestic production first began declining. Between 1955 4S and 1970, the amount of foreign oil imported to thl Country increased by 2.1 MB/D. Since 1970 foreign imports have increased by 3.9 MB/D. 2. The North Atlantic Region The East Coa st of the United States, which comprises the Petroleum Administration for Defense (PAD) District I, and the North Atlantic Region, which comprises the northern extent of PAD I, are shown in figure 1-2. The North Atlantic Region includes the greater portion of a Northeastern megalopolis which ranges from Boston, Massachusetts to Richmond, Virginia. The vast concentration of popu- lation, industry, and related economic activity located within this region represents one of the largest markets for petroleum products in the world. The North Atlantic Region, however, is currently an area almost entirely lacking in any petroleum resources of its own and is therefore most dependent on imports of oil from both foreign sources and other regions of the country, particularly the Gulf Coast. The majority of oil delivered to the North Atlantic Region comes in the form of refined petroleum products (65%). Originating from both domestic and foreign sources and processed at refineries outside of the PAD I district, these refined products are transported via tanker and pipeline to terminals in the North Atlantic Region where they are temporarily stored and then distributed to final market. The remaining oil imported to the North Atlantic comes in the form of crude oil an d is transported primarily from foreign sources Via .2 FIGURE 1-2 IV ... NORTH ATLANTIC REGION REMAINING EAST COAST PAD I .......... NORTH ATLANTIC REGION and PETROLEUM ADMINISTRATION for DEFENSE (PAD) DISTRICTS tankers to refineries located in the region where it is processed to obtain fuels (i.e., gasoline, jet fuel, heating oil, and resi- duall oil used for electricity generation), feedstocks for petro- chemical products such as plastics and fertilizers, waxes, lubricants, coke, and asphalt. The following section discusses the various energy facilities that are the physical components in the regional pattern of energy supply which to date has had profound impacts on the landscape, envi- Ironmental quality, and social and economic character of Middlesex County. Facilities "located in Middlesex County are specifically iden- tified and described and their relationships to the overall regional network of energy facilities and the current pattern of energy supply are examined. 3 B. Inventory of Existing Petroleum Facilities in Middlesex County. 1. Refineries The modern refinery consists of a series of units designed to produce a number of petroleum products by physically and chemically altering all or part of the crude oil stream. The complexity of the system depends on the type of crude being refined and the number and characteristics of the products being refined. In addition to the processing units, other components of the refinery include storage tanks, influent and effluent water treatment facilities, ancilliary buildings and services (administration building, machine shop, storage and warehouse, electrical substation, firehouse, pumping stations, truck loading terminals, etc.) transportation systems (road, marine terminal, pipeline, railroad spurs, parking lots, etc.) and a buffer zone. According to the Bureau of Mines, as of 1976, there were 15 refineries with a combined total capacity of 1,614,200 barrels of oil per day in the North Atlantic Region (Table I-1). Refineries in the Middlesex and Union County/Arthur Kill area (32%) and the Dela- ware River area (62%) constitute the largest concentrations of this existing capacity, producing a wide range of products including asphalt, coke, lubricants, and wax, but primarily refinery gasoline, jet fuels, and heating oils for the regional market (Figure 1-3). The only other major.reflinery over 50,000 barrels/day in the North Atlantic region is along the York River in Virginia (3%). Three small asphalt refineries, one located in East Providence, R.I. and two in Baltimore, Md. account for only 2% of the regions' total capacity.. .4 TABLE I - 1 REFINERY CAPACITY IN THE EAST COAST (PAD 1) January ;, 1976 CAPACITYM REGION/STATE COMPANY LOCATION (1,00 barrels/day) PRODUCTS(') North Atlantic Region (Middlesex & Union Amerada Hess Corp. Woodbridge 67.9(2) G Co./Arthur Kill) Chevron Oil Co. Perth Amboy 160.0(3) G-A New Jersey Exxon Co. Linden 295.00) G-A Subtotal 522.9 (Delaware River) New Jersey Mobil Oil Corp. Paulsboro 98.0 G-K-L-W Texaco, Inc. Westville 88.0 G Eastern Penn- sylvania Atlantic Richfield Co. Philadelphia 185.0(4) G-A BP Oil Corp. Marcus Hook 143.0 G Gulf Oil Corp. Philadelphia 174.3 G Sun Oil Corp. Marcus Hook 165.0 G-A-L-W Delaware Getty Oil Co. Delawar lit 140.1 G-K Su@totaZ 993.3 (Remaining Region) Virginia Amoco Oil Co. Yorktown 53.0 G-K Maryland Amoco Oil Co. Baltimore 15.0 A Chevron Asphalt Co. Baltimore 13.5 A Rhode Island Mobil Oil Corp. E. Providence 7.5 A New Hampshire A. Johnson & Co. Newio_2@on 9.0 (NA) Subtota 98.0 NORTH ATLANTIC REGION TOTAL 1,614.2 Remaining East Coast New York Ashland Oil Inc. N. Tonowanda 64.0 G-A Mobil Oil Corp. Buffalo 43.0 G-A Western Penn- sylvania Pennzoil Co. Oil City 10.0 G-L-W Pennzoil-Wolf's Head Reno 2.1 L-W Quaker State Corp. Emlenton 3.3 G-L-W Quaker State Corp. Southport 6.5 G-L-W United Refining Warren 52.0 G-A Va@voline Oil Co. Freedom 6.8 L-W Witco Chem. Corp. Bradford 9.0 G-L West Virginia Pennzoil Co. Falling Rock. 4.9 G-L-W Quaker State Corp'. Newell 9.7 G-L-W Quaker State Corp. St. Marys 5.0 G-L-W Georgia Amoco Oil Co. Savannah 13.0 A Young Refinery Corp. Douglasville 5.0 A Florida Seminole Asphalt Refinery, Inc. St. Marks 6.0 A REMAINING EAST COAST TOTAL 240.3 TOTAL REFINERY CAPACITY EAST COAST (PAD 1) 1,854.5 Source: U.S. Bureau o-i- Mines. %Tinerai industry Sur-.rey "Perrole-um Refinerfes in t@le United States and 11aerto Rico january 1, 1,97b" (')Crude oil distillation capacity (2) Shutdown i,@ 19711, but operable (3 Up-to-date catac`ty information was obta4red direct" from two comtanys (4@ 60,000 barrels/day. Shu-,down-, but orerable iy (5) Products: G-Gas and Oil; A-Asphal@@; K-Coke; L-Lubr' 5 FIGURE 1-3 750 7.20 69, 420 690 MAQS4CHUSETrS fHODE ISL CGNIVEcricUT NEW YORK 42 NEW PENNSYLVANIA JERSEY Middlesex and Union Counties/ Arthur Kill Area Capacity .52 MBID 39o Delaware River Area Capacity .99 MBID ATL.4,V71C OCEAN 390 V,4P'/L,4. 0 50 100 360 VIRGIN14 -NORrH CAROLINA 72,0 75o 36 780 REFINERIES LOCATION of EXISTING REFINERIES AST on the NORTH ATLANTIC CO !7 Middlesex County is the site of two of the five existing refineries in New Jersey (See map on pg. 9. ). The Amerada Hess Corporation refinery in Woodbridge Township was constructed in 1958. One of the last two refineries built in the Northeast, it was shut down in 1974 with an operating capacity of 67,900 barrels per day. Cited in the decision to close the plant were expansion plans that were necessary in order to produce a sufficient profit but that were made "economically impractical" by delays caused by environmental law- suits. Nevertheless, this refinery is still maintained and Hess oper- ates a marine terminal and storage facilities there to handle the de- livery of refined petroleum products. The capacity set aside in the closing of this refinery was more than taken up in Hess's huge new refinery in the Virgin Islands (595,000 barrels/day). The Chevron Oil Company refinery has been in continuous operation on a 325 acre site in Perth Amboy since 1950. It is on the site of the old Barber Oil refinery built in the early 1900's. The Chevron facility presently refines crude oil originating exclusively from foreign sources. On the average one tanker is received at the dock facilities every three days. The average tanker capacity is 500, 000 barrels. Larger size tankers that, when fully loaded, are unable to navigate to the dock facilities because of inadequate channel depth must weigh anchor in the New York Harbor area off the eastern shore of Staten Island where barges unload just enough crude oil to allow the tan- ker to reach the Perth Amboy waterfront. The refinery operations are geared toward removing the high amounts of sulfur found in the foreign crude oil. Pollution control 7 facilities treat the hydrogen and ammonia sulfides that occur as a by-product of the refinery operation. In addition waste water treatment facilities and oil spill containment equipment offer addi- tional environmental safeguards. Motor gasoline and No. 2 fuel oil are principal products refined at this 160,000 barrel/day facility. Following environmental impact assessment and various permit processes, Chevron has just com- pleted an approximately 80,000 barrel/day expansion. Expansion plans were predicated on projections of future demands for the Chevron pro- ducts in its market region. The market region which this refinery serves encompasses 13 states, stretching from Maine to Virginia. Total storage capacity for the entire refinery complex is approximately 8.0 million barrels. Of this total capacity, 1.5 million barrels is for crude oil storage. Daily water needs of the operation include 50 million gallons per day of brackish cooling water obtained from the Arthur Kill. Two million gallons per day of fresh water for making steam and-Flor potable purposes are obtained from the Middlesex Water Company, The refinery employs 480. Because of its just completed expan- sion, Chevron is paying $4 million in taxes Der Year to the Citv of Perth Amboy, The following map of 1977 Energy Facilities (page 9.) was derived through interpretations of 1974 aerial photographs and direct contacts with some of the companies that own facilities in the County. 8 a 4. CHANNEL DATA 41 RARITAN RIVER Ward Point Secondary Channel The contra I I In' '""' at Moan Law Water 0.9 Naut, Mi., 400 ft. w. -30 ft, MLW we0tI " '1-@ Me"" 'SS - Ifee for I width of 00 lost f;-,I1E'Q 1'4: Washington Canal to the New Jeney Tur Bridge; thence 9 feet for awidth of 100 feet 17. Navigation BK'a'ryker 046 SEE MAP ON REvERSE SIDE to New Brunswick. Ward Point Bend (west) Northwest Reach 1.3 Naut. Mi.. 600-800 ft. w. - 35 ft. MLW 1.2 Naut. Mi.. 200 ft. w. - 15 ft. MLW 18. MayIga tion Marker 056 IS: Intercept with Raritan River Cutoff 1 2 3 20 Navigation Marker '2 --T 7 1. Navigation Marker $31 Outerbridge Reach 2Overhead Power Cable, Auth. Cl. 128 ft. 3: Navigation Marker 130 1.6 Naut. Mi., 600 ft. w. - 35 ft. MILW Crab Island Reack ro -21 22 I Z Naut. Mi., 200 ft. w, - 15 ft. MLW ZO. Navigation Marker 02 C.@tij 3: 21. Outerbridge Crossing - WMrTdge, Navigation Marker #30 No'..cl 675 ft.@ Vert. c@,,443 fV., 4.Navigation Baby #25 22. Navigation Buoy #5 k Red Root Rmcn 1.5 N.Ut. Mi_ 300 ft 25 ft. MLW k 4. Navigation Buoy #2 S. Navigation Marker #14 Titanium Reach 0.6 Maut. Mi.. 300 ft. 25 ft. MLW 7 0 LNG 6. Crossamn Dck 7. MEM Dock -A S. Navigation Buoy #1 Kusby Ruch STATEN 0.9 Naut. Mi., 300 ft. - 25 ft. MLW I S LAP40 5'a9 10 -.01- 5/8 Navigation Marker #14/Mavl9stio. S"by #1 9. Governor Thoms E. Driscoll and Thamis A Edison Bridges - Fixed Bridges, Nor. ci. 199 ft .. Vert. cl. 134 ft. Port Socany Ruch 10. Victory Bridge - Swing Bridge, Nor. cl. 0 140 ft.. Vert. cl. 28 ft. 0.8 Naut. Mi.. 600 ft. w. - 35 W IZ- "I igatlon Buoy 11. A, iion Buoy #8 _ Interco Port Send Point Reach U. Ray gat th Socony ck approach 0.9 Naut. Mi., 300 ft. w. - 2S ft. 14LW M=?o Dock approach decrease$ I"depth 11 he Ida Victory Bridge from 34 ft. MLW at min c ."I Railroad Bridge - Swing Bridge, Nor. cl., to 11-1/2 ft. MLW at its ext,esm. If fI Nor h Or w 132 tNor co South or&. 24. Navigation Marker #11 ItVe . 1 8 f 33 f ., rtt;;rhead power N cable Auth. cl. 135 ft. Port Reeding Redcl South Amboy Ruch I 9"Naus . Mi.. SOO ft. w- 35 ft. MLW 24: avit k 1 7 gattla"n "M&arr :r ##1 21 13- Navig 1.2 Maur. Mi.. 300 ft. 25 ft. MLW k 11 12 13 Fresh Kills Reach '13 11. ::111rud Bridge G S 12. v gation Buoy, Raritan R11 vsr Cuto" 1.8-11aut. Mi., SOO ft. w@ - 35 ft. MLW 13. Navigation Marker 012. 2S.. Navigation Marker 121 19 26. Mvigatlon, Marker #30 Great Bad$ Ruch 0:6."a, . Mi. , 300 ft. .. - 25 ft. MLW Tremly Point Ruchr 13 vit ion Marker #4 SW ft. 14. Navigaattion Buoy #5 26. Raritan River Cuto" 27. Navigation 0.uoy #35 A f 1 0 Haut. Mi., 600 ft. W. - 2D ft. MILW 12: me19. 'Joe Buoy, South Amboy Ruch J 3I.Z;m,t with Ward Point Send (weIt) RARITAN BAY/ARTHLIR KILL Red Bank Ruch 1.2 Naut. Mi., 600 ft. 35 ft. MLW 16, Navigation Marker 035 17. Nav, gotion Marker.046 Ward Point Send 1.1 Male. Mic'n"Ka"rt"o ft. ft. MLW 17'NIIker 046 18. N:V119ation Marker 156 -4 r RR CESSING @j REFINERIES Q1, STORAGE MARINE TERMINAL PIPELINE TERMINAL RESEARCH VA, NUCLEAR DISTRIBUTION r OIL PIPELINE (R.O.W.) GAS PIPELINE (R.O.W.) INTERCONNECTION PUBLIC UTILITIES LNG LNG FACILITY SNG,& SNG PLANT ELECTRIC GENERATING STA. EGS 0 19 7 7 E N E Y FACILITIES Middlesex County, N. J. V. S, 1-9 A44 6m@v=%- @ 0 T@ ggg 0-0@ Mm W.. 27 E LNG W, STATEN 0 I S L A N D NJ 440 N PROCESSING DISTRIBUTION REFINERIES t".' ...... . OIL PIPELINE GAS PIPELINE Scale In Fee, STORAGE INTERCONNECTION AOOO 8000 MARINE TERMINAL Map prepared by the Middlesex County Planning PIPELINE TERMINAL PUBLIC UTILITIES Board, June 1977. LNG FACILITY LNGN RESEARCH SNG PLANT SNG,& NUCLEAR ELECTRIC GENERATING STA. EGS 0 1977 ENERGY FACILITIES Middlesex County, N. J. 2. Marine Terminals Tankers, barges, and marine terminals comprise the mechanism by which refined petroleum products and crude oil travel via water-borne transport. Marine terminals consist of berthing capacity for vessels, unloading and/or loading equipment, storage tanks, terminal control and safety equipment, and harbor and navi- gation facilities. Terminals vary in their size, function, loading facilities and processing equipment. In the North Atlantic Region, existing marine terminals function to: 1) receive refined petroleum products from tankers and store them for delivery overland to final markets; and/or 2) receive crude oil from tankers for delivery to nearby refineries. Tankers transport about 74% of the petroleum supplied to the North Atlantic Region. Petroleum storage capacity in the North Atlantic Region's ports is shown in Table 1-2. The New York, N.Y./ N.J. harbor area surpasses all other areas in the number and capacity of oil storage tanks. A large portion of this capacity is composed of tanks associated with the marine terminals to which crude oil and refined petroleum products are delivered. A scan of the N.Y./N.J. har- bor area reveals that, by far, the majority of storage facilities are located along the Arthur Kill and the Kill Van Kull, the waterways bordering between New Jersey and Staten Island. 10 TABLE 1-2 NORTH ATLANTIC PORTS PETROLEUM STORAGE CAPACITY Port Number of Tanks Capac.ity (bbls) Searsport, Maine 8 642,000 Portland, Maine 14 137,000 Portsmouth, New Hampshire NA NA Salem, Mass. NA NA Boston, Mass. 365 15,131,000 Fall River, Mass. 100 3,362,000 Providence, R.I. 442 8,616,000 New London, Conn. 38 1,050,000 New Haven, Conn. 182 6,362,000 Bridgeport, Conn. 58 1,871,000 New York, N.Y. & N.J. 3,428+ 93,775,000 Albany, N.Y. 249 11,031,000 Port Jefferson, L.I., N.Y. 53 850,000 Delaware Bay 1,809 61,508,000 Baltimore, Md. 493 14,910,000 P'otomac River, Md. NA NA York River, Va. NA 680,000 Hampton Roads, Va. 363 9,610,000 (Norfolk and Newport News) TOTAL 7,602+ 229,535,000+ MDoes not include numerous private facilities outside indicated port limits. SOURCE: U.S. Army Corps of Engineers. Interim Report Atlantic Coast Deep Water Port Facilities Study. June 1973. In Middlesex County, a total of nine marine terminals occupy various waterfront acreage along the Arthur Kill and the Raritan River in thenortheastern portion of the County (See map on pg. 9. ). Eight of these terminals receive refined petroleum products from tankers and barges and store them for overland delivery via tank trucks, rail cars, and/or pipelines to final market. Although it is presently handling refined petroleum products, the Hess Terminal in Woodbridge is located at the site of the idle Hess refinery and at one time received crude oil deliveries. The only marine terminal currently receiving crude oil is part of the Chevron Oil Company refinery com- plex in Perth Amboy. 11 Marine terminals in Middlesex County are as follows: Location Name Waterbody/Municipality Type of Oil American Oil Co. Arthur Kill/Carteret Crude American Oil Co. and Phillips Petroleum Co. Arthur Kill/Carteret Refined Products Chevron Oil Co. Arthur Kill/Perth Amboy Refined Products General American Transportation Co. (GATX) Arthur Kill/Carteret Refined Products Hess Oil Co. (3) Arthur Kill/Woodbridge Refined Products (at one time crude) Arthur Kill/Perth Amboy Refined Products Raritan River/Perth Amboy Refined Products and Woodbridge Royal Petroleum Co. Arthur Kill/Woodbridge Refined Products Shell Oil Co. Arthur Kill/Woodbridge Refined Products 12 3. Petroleum Pipeline.s and Pipeline Terminals Pipelines are the primary mode of overland transport for petroleum products. Thcmajor pipelines serving the North Atlantic Region are the Colonial Pipeline Company (the largest in the U.S.) and the Plantation Pipeline Company, both of which originate at the Gulf Coast and- transport only refined petroleum products (Figure 1-4). Having a combined capacity of about 1.2 MB/D these two pipeline system� transport about 26% of the petroleum supplied to the North Atlantic Region. Products transported from the Gulf Coast consist principally of motor gasoline and jet fuel (65%) and distillate fuel oil (30%). Storage tanks, office space, and a pumping station are the basic components in a pipeline terminal. Upon reaching the North Atlantic Region, oil piped from the Gulf Coast is temporarily stored at pipeline terminals, from which it is eventually distributed to market. Lesser pipelines transport oil from these pipeline terminals, as well as from refineries and marine terminals in the Region, to final market destinations. In particular, a number of pipeline systems transport refined products from the Delaware River Area refineries to the Middlesex and Union County/Arthur Kill Area. Additionally, product pipeline systems transport oil products from both Middlesex and Union County/Arthur Kill refineries and Delaware River refineries to market reaions in Western Penn- sy.lvania and mid-state New York. Five major petroleum product pipelines currently transect Middle- sex County. (See map on page 9, Three of the pipelines transport oil products to the Middlesex and Union County/Arthur Kill Area. They are: 13. INFORMATION FROM THE WIN, protect ourearth NEW JERSEY OFFICE OF COASTAL ZONE MANAGEMENT DIVISION OF MARINE SERVICES NEW JERSEY DEPARTMENT OF ENVIRONMENTAL PROTECTION BOX 1889, TRENTON, N.J. 08625 609-292-9762 FIGURE 1-4 PETROLEUM PRODUCTS PIPELINE SYSTEM E N H@ T@ AlcH Itt. '70 OHIO PENN PHItA. V- MO TE N.C. ALA. /m-, s -s S. C. ........... GA. T VC. RCEANS NEW ORLEANS HOUSTON FLA. GULF OF MEXICO 0 5. PIPELINE NAME SIZE MAXIMUM CAPACITY (bbl/day_) TOTAL MILEAGE ORIGIN-DESTINATION Colonial 3011 828,000 1,600 Pasadena, Texas- Woodbridge, NJ Sun 1411 86,000 90 Marcus Hook, PA- Newark, NJ Sohio (Harbor) 16" 144,000 81 Phila., PA-New York Harbor The Colonial pipeline terminates in Middlesex County at a pipe- line terminal consisting of twenty-five storage tanks and pumping fac- ilities located in Northern Woodbridge Township. Smaller pipelines ' connect this terminal with Shell and Chevron facilities in Woodbridge and Perth Amboy, respectively. T he Sun Pipeline Co. maintains a relatively small pipeline terminal in Piscataway, consistinq of two small storage tanks &nd functioning as a dropoff and regional distribution point. The two remaining refined petroleum pipelines in Middlesex County transport products from the Middlesex and Union County/Arthur Kill Area to Pennsylvania for distribution in that area: They are: PIPELINE NAME SIZE MAXIMUM CAPACITY (bbl/dayj TOTAL MILEAGE ORIGIN-DESTINATION Buckeye (2) 16:: 151,000 33.4 Linden, NJ-Macungie, 20 230,000 33.4 PA Getty (Tide- water) (2) 611 7,800 115 Bayonne, NJ-Williams- port, PA The Getty pipeline has located along its right-of-way,in South Plainfield,a pipeline terminal consisting of two small storage tanks. In addition to the five-major pipelines located in Middlesex County, a number of shorter pipelines transport oil products between the various pipeline terminals, marine terminals, and refineries located in the Northeastern portion of Middlesex County and neighboring Union County. 15 4. Petrochemical Industry The word "petrochemical" is used to describe those chemicals derived from petroleum and natural gas liquids. Petrochemical producers utilize these raw materials to manufacture a broad array of primary chemicals and intermediates; through further chemical processing, these intermediates are converted into an even wider range of chemical derivatives. Most of the petrochernical industry's products, both primary and inter- mediate organic chemicals and ti,?ir derivatives, are practically unknown to the consumer because the average person never sees or buys them. The customers of the petrochemical industry are, in general, other industries, which use petrochemicals as the raw materials for the manufacture of thousands of industrial and consumer products. Packaging material made from plastics is the largest end use followed by building materials, "Cires, clothing, transportation equipment, home furnishings, housewares, furniture, appliances, and toys. There are others such as fire retardants and solvents, perfumes, cosmetics and medicines, dyes, antifreeze, adhesives, and many, many more. New Jerseyleads the nation in manufacturing chemicals and synthetics, and Middlesex is one of the leading chemical manufacturing counties in the State, (See Table 1-4). Petrochemical products constitute the largest portion of chemical industry operations. The predominance of petrochemical industries in Middlesex County can be explained easily by the primary siting factor for such operations: i.e, the availability of raw materials. In Middlesex County, the heavy concentration of such petroleum related facilities as refineries, 4 marine terminals, and pipelines represent sources of raw mater;als. It follows that petrochemical industries seek sites in proximity to such facilities. New Jersey Department of Labor and Tndu strv statistics indicate that approximately 100 chemical companies, employing 20,700, are located in Middlesex County. 16 TABLE 1-4 1976 EMPLOYMENT IN CHEMICAL AND ALLIED INDUSTRIES IN NEW JERSEY(l) Labor Market Areas Chemical Industry Employment % of Total State (SIC 28) Chemical Industry Employment Atlantic County 400 0.3% Bergen County 13,200 10.8% Camden SMSA(2) 4,900 4.0% (Comprised of Camden, Burling- ton, & Gloucester Counties) Cumberland County 300 .3% Hudson County 6,800 5 . 6 0% Mercer County 3,800 3.10%, Middlesex County 20,700 17.0% Monmouth. County 1,600 1.3% Newark SMSA(2) 48,700 40.0'," (Comprised of Essex, Morris,, Somerset & Union Counties) Passaic County 9,700 8.0% Remainder of State 11,700 STATE OF NEW JERSEY TOTAL 121,800 100.0% MAll figures are for employees covered under the State unemployment insurance system. -(2)SMSA is abbreviation for Standard Metropolitan StatiStiCdl Area; a U.S. Census reporting classif-Ication for high population urban areas. SOURCE: New Jersey Department of Labor and Industry, telephone interview July 27, 1977. .17 II. OUTER CONTINENTAL SHELF OIL AND GAS ACTIVITIES Offshore operations of the pet,-,oteum industry began as extensions of onshore exploration, development and production. The earliest offshore production in the United States was developed off Summerland, California, in 1896. The offshore portion of the field was an extension of an onshore discovery made prior to 1894. Similarly, most of the early activities in areas covered with water were carried out to recover oil from reservoirs that had already been discovered and defined through onshore exploration. Gradually, as technology has advanced, exploration and development activities have been moving further offshore to areas with greater water depths and more hostile environments. For example, production has begun in the cold and stormy waters of the North Sea, and seven exploratory wells have been drilled in the Santa Barbara Channel, off California, in water more than 1,200 feet deep. Most exploratory and development drilling activities have been con- ducted in the geographical areas known as the continental shelf. The legal and physiographic definitions of the continental shelf differ slightly, but the general phrase cont@nentfLZ shet' refers to the shallow submarine plain of varying width that forms a border to a continent and typically ends in a steep slope to either a more gently sloping continental rise or the oceanic abyss. Off the coastc of the United States,the shelf is very broad in the Gulf of Mexico and around western and northern Alaska, moderately at4 wide along much of the Atlantic Coast and rel Ively narrow along the Pacific Coast. Most of the subsea continental shelf lands adjacent to the United States are under the jurisdiction, ownership and control of the United States 18 Government. The phrase Outet Cont_bieyttc@P_ She16 (OCS) was defined in the Outer Continental Shelf Lands Act of 1953 (67.Stat. 462; 43 U.S.C. 1331-1343, 1964) as the subsea lands lying seaward of the territorial limit of the states and extending to the boundary of federal and inter- national claims of jurisdiction. This Act, The Submerged Lands Act of 1953 (67 Stat. 29; 43 U.S.C. 1301-1315), and a series of United States Supreme Court cases establish federal control, ownership and jurisdiction over the sea bed and subsea soil beyond the three mile territorial limiti of the states. Thus, the coastal states retain control, ownership, and jurisdiction over, and consequently the right to develop 'the mineral resources of, the subsea 'lands extending out to the territorial li'mit. The Outer Continental Shelf Lands Act also authorizes the Secretary of the Interior to establish rules and regulations implementing the Act and to lease offshore tracts for mineral and resource exploration and exploita- tion. Between 1954 and 1974 the U.S. Department of the Interior sold 2,384 oil and gas leases comprising 10,884,624 acres. The following map (Figure II-1) indicates the general areas of OCS lands for which lease sales have been proposed. Lease Sale No. 40, or the first Balitmore Canyon lease sale, was held in August, 1976. But on February 17, 1977 -the United States District Court of the Eastern District of New York enjoined all related activities of Lease Sale No. 40. The Court held 'that the Department of the Interior had not met the requirements of the National Environmental Policy Act. Figure II-1 also shows the location of seven proposed Atlantic Ocean lease sales; these include: The North Atlantic or Georges Bank Lease Sale (No. 42), the l.The territorial limit is approximately 12 miles in the case of Texas and the Gulf Coast of Florida. 19 FIGURE II-1 Areas of the OCS Under Consideration for Leasing WASHINGTON- OREGON NORTH ATLANTIC NORTHERN GEORGES 42 CALIFORNIA BANK 52 MID ATLANTIC SANTA BALTIMORE 40 BARBARA CANYON 49 SALE CHANNEL 59 NUMBERS SOUTHERN CALIFORNIA SOUTH ATLANTIC BLAKE PLATEAU 54 S.E. GEORGIA 43 EMBAYMENT 56 CHUKCHI BEAUFORT CENTRAL SEA BASIN GULF HOPE BASIN WESTERN EASTERN HORTON BASIN GULF GULF NAVARIN BASIN ST.GEORGE BASIN BRISTOL BASIN ALEUTIAN SHELF KODAK GULF OF BASIN ALASKA LOWER Continental Margin showing COOK INLET areas of leasing potential SOURCE: Leasing and Management of Energy Resources on the Outer Conti- nental Shelf, Bureau of Land Management U.S. Geological Survey, 1976. South Atlantic or Southeast Georgia Embayment Lese Sale (No. 43), the second Mid-Atlantic or Baltimore Canon Lease Sale (No. 49), the second South Atlantic or Blake Plateau Lease Sale (No. 54), the second North Atlantic Lease Sale (No. 52), the third South Atlantic Lease Sale (No. 56), and the third Mid-Atlantic Lease Sale (No. 59). It is highly probable that the development and production of the oil and gas in these lease sales will have significant impact on New Jersey and Middlesex County. This chapter will discuss the following:(1) the phases of OCS oil and gas activity; (2) the types of OCS facilities and their requirements and impacts; and (3) three projections of potential development of OCS facilities in Middlesex County. 20 A, PHASES OF OCS OIL AND GAS A&IVITY The process of offshore od and gas activity is commonly divided into five phases: (1) leasing, (2) exploration, (3) development, (4) production, and (5) shutdown. For@i given petroleum field, the phases may encompass a period ranging irom to 40 vears. Figure 2 showed the phases in the life of a hyoothetical oil andlor gas field and illustrated the fact that these phases mav overlap considerably. For example, exploration activities c@ntinue after development activities have begun, and oroduction w fll be,,in befo re developme@t is completed. Continuation beyond the exploration priase, however, is entirely dependent upon the discovery of economically recoverable reserves of oil or gas. The five phases of OCS oil and gas activity are described below as they relate to time involved, industry activities, federal govemnient activities, state and local activities and potential onshore facilities. 1. Leasing 2. Exploration Phase Time: Time: Approximately 19 months from "call for nominations" to One to seven years from lease sale: an average of two the actual lease sale: geophysical exploration (by industry) years for discovery of economically recoverable oil or gas may have begun many years before. reserves and five years or more for @clentification of size and area of the find; Lip to five years until lease abandonment if Industry Activities: no discovery is made. Preparation of intemal market and capability analyses; preliminary geophysical exploration (under per-mit from Industry Activities: USGS); nomination of tracts for consideration in the lease Additional geophysical surveys to locate geological struc- sale; pre'-:-.*nar-v lo-ation analysis for sta-ing areas; and c' o ' 1 0 tures favorable for oil arid gas; exploration plans submitted possibly onshore site acquisition. to USGS and "notices" 01 Sullport activities submitted to rederal Goveniiiient Activ-lt'ies: appropriate Coverr,3,-:3; c:@@13ratory drdlin- by cir"I"ing The leasing process, managed by the Bureau of Land companies (under contract to the oii companies whichlease Management (BLNI), includes: environmental baseline tracts); if discovery is made, intense supplementary explo- studies; "call for nominations" by the ciiii and gas industry ration, possibly for many years, to establish the area and of tracts it believes hold the -reatest r)romise for oil and aas; size of the field, and to ensure that all possible geological draft (DES) and final environmental statements (FES.) pre- structures containing oil and gas have been located; prepa- pared by BLM in cooperation with USGS and the Fish and ration of internal development projections, prelirni@riary Wildlife Service (FWS); these are submitted to the Council field development plans and financial, estimates. If no on Environmental Quality (CEQ) and made available to the commercial discovery is made, industry will abandon the public; a decision to lease is made by the Secretary of the lease and onshore service bases. Interior based on the FES and an internal decision docu- ment; at the lease sale itself tracts of the OCS are offered to Federal Government Activities: the "highest responsible qualified bidder," with or without . USGS supervises operations: reviews, accepts and ap- stipulations. Any bid may be rejected. proves exploration plans, issues drilling permits, monitors the drilling procedures; Environmental Protection Agency State and Local Activities: o I Participation in the call for nominations, in which state (EPA) issues pollution contr---! permits; the Corps of En- and local governments-and cit;zens-mav identify tracts gineers (COE) and U.S. Coast Guard (USCG) regulate which should not be considered for lea@ing ("n Iegative navigation. nominations") or upon which special conditions should be State and Local Activities: imposed; participation in tract selection meetings and re- Assume regulatory -arid per-mitting authority over the view and comment on draft environmental statements 0 portioris of opera- siting and operation of service bases and (DES). Planning may begin for siting and providing public tions within the hmits of state waters; plan for sitirg of services in future phases. potential onshore facilities if discover-y is made, mitigating a Onshore Facilities: employment and environmental impacts, and for provid- Geophysical and geological exploration vessels will use ing and' financing public services. (Nlay be invoived in eiisting ports. planning and permits for anticipatory siting-see below). SOURCE: The Conservation Foundation, David C. Williams and Jeffrey A. Zinn, (ed.) Source Book: Onshore Impacts of Outer _Continental Shelf Oil and Gas Development, May, 1977, pp. 8-9. 21 Onshore Facilities: Temporary service bases are established, generally lo- cated in existing developed harbors, with associated repair and maintence yards and general shore support (heli- ports may be established at existing airports); as a rule no new facilities ar constructed but industry may anticipate discovery and plan for an option land for permanent serv- ice bases; options for pipe coating yards and platform fabrication yards may also be taken; state and lcoal govern- ment may be involved in permits for these facilities. 3. Development Phase Time: Four to nine years-starting with the discovery of eco- nomically recoverable resources and extending through ini- tial pipeline installation or tanker operations. Industry Activities: Application to USGS and COE for development drilling permits; Field Development Plans submitted to adjacent states; development drilling and production platforms put in place. Federal Government Activity: USGS reviews and approves field development plans, and issues permits for development drilling and OCS gathering lines; COE issues permits for drilling structures and pipelines in navigable waters; BLM issues permits for pipelines rights-of-way on the OCS; the Office of Pipeline Safety (DOT), Federal Power Commission (FPC) and In- terstate Commerce Commisssion (ICC) are involved in regu- lation of common carrier piplines. EPA and the Occupa- tional Safety and Health Administration (OSHA) issue permits and regulate operating activities. State and Local Activities: Issue permits for nearshore and onshore pipeline rights-of-way, land use, and construction of onshore and nearshore facilities; regulate water and other resource uses hazards to the environment, and other activities; plan siting of service bases and other onshore facilities listed below (service bases generally are not federally regulated); pro- vide public services for employees and induced population, many of them at a temporarily high level for the relatively short-term development phase. Onshore Facilities: Permanent service bases Repair and maintenance yards General shore support Platform fabrication yards Platform installation service bases Pipelines and landfalls Pipelines installation service bases Pipe coating yards Partial processing plants Gas processing and treatment plants Marine terminals Esentially all major facilities for the production phase are installed during the development phase. 4. Production Phase Time: Ten to 25 or more years-from first petroleum landing onshore to field shutdown. Industry Activities: Operation of facilities constructed during the develop- ment phase; activities to maintain and improve the rate and volume of production: construction of additional produc- tion platforms, new wells and well "workover," additional pipelines, storage facilities; and regular servicing of wells and platforms. Federal Government Activities: Monitoring and regulating of routine operations, by USGS, COE, USCG, EPA, BLM, OSHA, FPC, DOT and ICC, and others; respond to oil spills; possible additional leasing. State and Local Activities: Provision of public services for onshore facilities and added population; monitoring onshore petroleum opera- tions; anticipation of employment decline during produc- tion phase and eventual shutdown. Onshore Facilities: Additional pipelines (see Development Phase) 5. Shutdown Phase Time: One to three years from end of production phase; repre- sentative cumulative time from lease sale-25years. Industry Activities: Dismantling offshore facilities and sealing all wells with cement 15 feet below the surface of the seabed; closing or reducing onshore facilities as production ceases. Federal Government Activities: Monitoring and enforcing abandonment regulations, by USGS. State and Local Activities: Mitigataing past impacts, covering the loss of accustomed revenues, and efforts to maintain the economic base. Onshore Facilities: Facilities identified above are closed or shifted to other uses. 22 B. Description. Impac@s and Requirements of Onshore Facilities2 There are various types of onshore facilities that are directly associated with OCS oil and gas activities. These facilities carry out many different functions including: supporting and servicing offshore activities, transporting, storing, treating, and processing of oil and natural gas. This sub-section will present a brief description of each facility and some of the impacts and requirements of each facility. 1. Temporary Service Bases Temporary service bases serve as a logistical link between onshore and offshore activities. These bases generally support initial exploratory drilling operations and their main activity is the transfer of materials and workers between onshore and offshore 041 operations. Service bases may be established by the 1 companies, or service companies that supply drilling fluids and muds, tools and other items. A typical base would include: � berth space for supply and crew boats � dock space for loading and unloading � warehousing and open storage areas � a helipad � space to house supervisory and communication personnel A typical temporary service base exhibits the following impacts and requirements. Land 5-10 acres on all weather harbor Iviarehouse: 1/2 acre/rig; open storage: 1 acre/rig; operations and office space; helipad; 1 acre/rig (may be elsewhere); parking area. Waterfront 200 feet of wharfl/rig; 15-20 feet water depth at pier. 2. Most of the information used in this sub-section was derived from Factbook: Onshore Facilities Related to Oil and Gas Development published in 19706 by the New England River Basins Commissions (NDR-SC-Funder agreement with the Resour(fe and Land Investigations (RALI) Program of U.S. Department of the Interior's Geological Survey. See also, The United States Con-ress Office C INIoLrkinq @Pa Coastal Ef I Qf Technology Asses ment, ers: fects 0." dffshore Enerqy. re !R Fol' ion, Source SM1. Onshor-n @;ystems, November T9766 and Ine onservatio'n , unCld@ T-mnAFF- nf nr@ Oil and Gas Development. 19.7, 22 'Water 5.2 million gals/rig/year for supply boats; 13,272 barrels of 'luel/rig/ year at drilling site. Labor 45 onshore service base jobs/rig CoMpoSit4 Uion 75% local jobs Wages Approx. $7350,000/year; $17,000 average wage. Capital Investment S150,000 - 5250,000 for land leasing and construction Air Emissions Hydrocarbons from fuel storage tanks and vehicle operation Wastewater Contaminants Hydrocarbons, heavy metals from bilge and ballast-water Noise Up to 85 decibels, 24 hours/day Waste Up to 6 tons/day including oil con- taminated drill cuttings 2. Permanent Service Bases Permanent service bases perform the same functions as temporary bases, but differ primarily in size, intensity, activity and ownership. They generally operate during development drilling and provide the same types of goods and services as those needed during exploratory drilling. Permanent bases are usually established by oil or service companies. They are usual ly I ocalted at or close to temporary bases and @.,ii thi n 2000 r-,,i 1 es of ri gs. IMPACTS AND RE-QUIREMIENTS: Land 25-50 acres on all-weather harbor; 10,000 square feet for permanent off-ice and com- munications space; 1 acre/platform for helipad; remainder for warehouses and open storage. Waterfront 200 ft. of wharf/platform; 15-20 ft. water depth ar, pier. Water 8.2 million gallons '/plat-form/year durinq development drilling. Little during production. Fuel 54,000 barrels of fuel/platform/year during development. 19,200 barrels of fuel/platform/year during production. Labor 50-60 jobs/platform during drilling; 50% 4 local initially, rising to 30% local. Wages Approximately $1 million; average wage $17,000. Capital Investment $1-3 million. Air Emissions Hydrocarbons from fuel storage and vehicle operations. Wastewater Contaminants Hydrocarbons, heavy metals from bilge and ballast water. Noise Up to 850 decibels; 24 hours a day. Solid Waste Up to 6 tons/year during drilling. 3. Steel Platform installation Support Bases Steel platform installation support bases are very similar to tem- porary service bases. They perform services for installation of platforims and are normally established by companies involved in platform installation. They are usually located as close as possible to areas of installa-f-lic n and other service bases. 2 5 IMPACTS AND REQUIREMENTS: Land Approx. 5 acres of waterfront land. Wharf Space 200 feet/4 platforms installed. Water Depth 15-20 feet at pier. Sea Access Clearances Channel roughly 5 times width of largest barge. Vertical clearance roughly the length of the platform base. Fuel Diesel fuel requirements: 100,000 gals/derrick barge/month; 150,000 gals/tug/month. Transportation 1 supply boat/platform; 1 crew boat/platform; 1 helicopter/platform. Offshore Labor Approx. 100/installation spread; 25% local Jobs Offshore Wages Average wage $18,000 Onshore Labor 25 workers/installation spread; 50% local jobs Environmental Impacts Roughly the same as temporary service base. 4. Repair and Maintenance Yards Repair and maintenance yards consist of many firms of varying capa- bilities which provide services to operators of vessels and equipment involved in OCS development. Most medium-sized vessels can be serviced in harbors that customarily handle large fishing fleets while larger. 26 vessels and semd-submersible rigs must be serviced in major shipyards. A repair vard catering specifically to the petroleum industry is not likely to be sited on a new site in a frontier area. Most services can be provided by existing,repair facilities in fishing ports and larger ports. 5. Transportation Facilities There are two major types of transportation facilities involved in the movement of oil and natural gas--pi.peline systems and tanker 1 4 systems. These types oil faci ]ties may be used sept-rat-ely or in com- bination. Pipeline systems may include the following components: pressure source, gathering stations, a landfall and an onshore dest-in- ation. An oil company may construct its own pipeline, or a consortium of oil companies may construct a common carrier pipeline. Tanker systems are composed primarily of tankers and marine temminals. Marine terminals consist of berthing capacity for vessels, load-Ing and/or unloading equipment, storage tanks, terminal control and safety equip- ment and harbor and navigation facilities. IMPACTS AND REQUIREMENTS: (1) Pipelines and Landfall Facilities Route Shortest distance, as modified by anchor- ages, active ifaults, shifitinq bottom sediments, rock outcrops, areas environ- mentally sensitive. Shore Approach Gently sloping sand or shingle pre- ferred, avoid shifting currents and sediments. Landfall 50-100 foot riqht-of-way. 40 acres of 4 , If required. 60 acres 'oi- pumping station terminal , if requi red . 27 Offshore Labor 250-300 jobs per lay barge spread. Offshore Wages S5.5 million annually per lay barge spread. Average unskilled wage: $7,57,000. Average skilled waqe: S25,000. 4- Onshore Labor Negligible - 20 workers; 15 local to operate terminal or pumping station. Onshore Wages $16,000 average annual. Capital Investment Varies with pipe diameter from S@700,000/ mile for 3" pipe to $2 million/mile for 42" p@pe. Shere terminal - S2.5 million. Air Emissions Minimal; chiefly hydrocarbons, nitrogen oxides and sulfur,oxides from compressors along route. Noise 90-100 decibels from compressors; 140 decibels from annual pipeline venting. (2) Tanker Systems Marine Terminals With most of the land taken up by storage tanks, the size of a terminal depends on the throughput from offshore, the number of berths at the terminal, the size and frequency of tankers, and the extra storaqe needed to provide for loading downtime. Data below are for a 250,000 bGl/day throughput mid-depth terminal with storage capacity of I million barrels in four 250,000 bbl tanks. Land Approx. 30 waterfront acres, assuming no processing, larqely for storage tanks. Water Depth 50-60 feet sheltered water at mid@depth pier or mooring buoy. Fresh Water Limited, assuming no processing. 28 L tank 'arm Energy 8 million kwh/year al- I l million kwh/year at terminal 11,800 barrels of fuel/year Construction Labor 560 workers, 200Z local jobs Construction Wacies $19,600 average annually. Operation Labor 10-90 (depending on degree of contract labor used), 70% local jobs Capital Investment. Approx. $50 million Air Emissions Hydrocarbons f.rom tanks and transfers, exhaust emissions from vessels and com- pressors. Wastewater Contaminants BOD;COD; suspended solids; oil and grease from bilge, ballast, and storm water; chronic small spills; potential for large spills. Solid Wastes Contaminated sludge and sediments. 6. Pipeline Installation Support Bases Pipeline installation support bases are required to serve in the installation of pipelines. These waterfront bases are established by oil or service companies during exploration and can be used to serve many installation activities. Some of the vessels serviced include barges and tug boats. These support bases usually operate for a short period of time unless a large volume of pipelaying is expected. !MPACTS AND REQUIREMENTS: Land Approx. 5 acres (pipe is stored at the pipecoating yard). 29 Waterfront 200 foot wharf/spread; 15-20 fool.- depth; wide enough channel to maneuver barges (5 times width of barge). r F'uel 50,000 gallons/lay barge; 180,000 gallons/jet barge. Labor Approx. 20' onshore jobs ; 50% local jobs Wages Approx. $425,000 annually. Average wage $17,000. (In cold climates, labor and 'wages are likely to be seasonal). Environmental Impacts Site alteration and construction impacts, air emissions , wastewater, noise, solid wastes and aesthetic impacts are similar to temporary service bases. 7. Partial Processing Plants Partial processing plants remove impurities from the oil well stream. Natural gas is usually separated at the production platform. Partial processing plants reduce water and sediment content of oil well stream, to approximately 10%. They may be located offshore or onshore depending on the relative costs, mode of transportation and nature of the well- stream. IMPACTS AND REQUIREMENTS: (Most figures for plant processing 100,000 bbls/day gross fluids) Land 15 acres/100,000 barrels processed; 33% oil treatment and storage; 49/10 gas treatment and liquid petroleum gas storage; 9% water treaL-Iment; 9'/0' metering and recording unit. Waterfront Not required. Water 10,000 qals/month. 30 Energy 1.5 million cu. ft./day gas; 400,000 kwh/month. Labor 150 construction jobs for 15 months; 10 jobs during operation. Wages $14,400/year average @,qage. Capital Investment $13 million. Air Emissions Hydrocarbons, hydrogen sulfide, sulfur oxides, nitrogen oxides. Wastewater Contar,.-,inants Suspended solids, oil and grease, heavy metals, phenols, halogens, chromium. Noise 80-90 decibels from pumps; 81-96 decibels from flarestacks; 81-96 decibels from treati-ng vessels. 8. Gas Processing Treatment-Plants Gas processing treatment plants recover liquifiable hydrocarbons not removed by normal separation methods from the raw gas stream, before it enters a commercial transmission line. There are no standard sizes or designs for gas Plants, single plants are specifically designed for the particular gas stream they process. IMPACTS AND REQUIREMENTS: (For a 1 billion cubic feet/day facility) Land 50-75 acres. Water 200,000 oals/day. E'n e r g y 5.4 million kwh/month; 360 million cu. ft./mionth natural gas from fleedstock. 31 Construction Labor 500 workers for 1 112 years. Operation Labor 45-55 workers; 050% local jobs Operation Wages Approx. $750,0001year. $15,0500 average annually'. Capital Irives tment $85 million. Air Emissions Hydroq--n sulfide, sulfur oxides, hydrocarbons, particulates, carbon monoxide, nitrogen oxides. Wastewater Contaminants Dissolved hydrocarbons, sulfuric acid, chromium, zinc, phosphates, bases, sul- fite. Noise 80-100 decibels from boilers, compres- sors and flarestacks; 24 hours/day. Solid Wastes Sludges, scale, s 'pent dessicants, filtration media, oil absorbants. 9. Reflinaries Refineries consist of a series of units designed to produce a number of petroleum products by physically or chemically altering all or part of a crude oil stream. The complexity and scale of a refinery depends on the type Of Crude oil being refined and the number and charact-eristics of the products desired, Other refinery component-s include: storage tanks, influent and effluent water treatment. The principal factors influencing the industry's decision to establish a new refinery are the nature of the market--, the source of crude and the available water depth. A site that is located in a strong petro- leum market, close to a guaranteed source of crude oil (import or local) 32 and along a navigable waterway will usually be an attractive site to refiners. IMPACTS AND REQUIREMENTS: (Moderately complex 250,000 bbl/day refinery) Land 1000-1500 acres clear, flat, indus- trially zoned land. Water 10.5 million gals/day withdrawn; Energy 1.45 million kwh/day; 19,800 bbls/day fuel oil. Construction Labor 1800 average over 3 years; 3500 peak, employment; 70% local jobs Construction Wages $38.5 million; $18,000 average annual. Operation Labor 410; 80% local jobs Operation Wages $6.5 million ; $l5,250 average annual. Captial Investment $500-750 million. Air Emissions Carbon monoxide, sulfur oxides, nirto- gen oxides, hydrocarvons, and particulates from processing, process machinery, leaks from valves, seals, and storage tanks, and vehicle emissions. 33 Wastewater Contaminants Thermal effluent, anti-fouling cheimicals, a variety of contam-Inated process waters, BOD, COD, etc. Noise 50 decibels at boundary. Solid Waste Contaminated process solids and effluent solids requiring special handling, variety of general packaging and domestic solid waste. 10. Platform Fabrication Yards Platform fabrication yards are large waterfront sit-es on which drilling and production platforms are entirely or partially constructed. There are two major types of platform; fabrication yc@rds-steel platform fab- rication yards and concrete platform fabrication yards. These yards are purchased and constructed IIDY platform construction companies. The layout-, size, requirements and impacts of these yards are determined by the com- plexity and number of platforms beisna constructed. 34 a. Steel Platform Fabrication Yards These are large waterfront facilities consisting mostly of cleared land, warehousing, machine shops, and administrative offices. IMPACTS AND REnUIR2,1ENTS: Land 200-1000 acres on navigable waterway. k Waterfront 15-30 ft. depth at pier. Sea Access 210-350 ft. (horizontal clearance and verticall). Water 100,000 gallons/day (for 9 plat'-forms and no steel rolling); 1.24 million gallons/day (for 2-4 platforms with steel rolling). p I a..L Labor 25e-500 workers/steel Lform; 80% local jobs Wages Average wage $19,000. Capital Investment $30-60 million (start-up capital only). Wastewater Contaminants HeavY metals, particulates. Solid 1.4aste Packaging materials, metal scraps, debris. Air Emissions Sand and metal dust from sand blasting; hydrocarbons and organic compounds from pa4 Int evaporation; carbon monoxide, sul- fur oxide s, nitrogen oxides from vehicles. Noise 80-100 decibels; 24 hours a day. b. Concrete Platform Fabrication Yards Concrete platform, fabrication yards are constructed on waterfront si-'Ces 35 with considerable open space. The platforms are built in large, deep dredged dry dock basins, separated from deep adjacent water by a dam. IMPACTS AND REQUIREMENTS: Requirements of concrete platform fabrication yards in some ways differ markedly from steel. The 30-80 foot bases are constructed in dry dock and then floated a few hundred yards at most to very deep (150-300 feet) water for construction of the tall pillars upon which the deck section is attached. Thus the single most important requirement is a large open site with immediately adjacent very deep water. Land Minimum 50 acres/platform. Water Depth 35-50 feet at pier; 150-300 feet adjacent. Sea Access Clearances Over 400 feet (vertical). Water 40,000 gal/day at a one-platform yard; 165,000 gal/day at peak activity. Energy 3 megawatts: 45,000 gal. diesel fuel stocked; 11 tons gas stocked. Labor 350-450 average; 600-1200 peak; 85-90% local jobs Wages $8.8 million annually; $19,500 average wage. Air Emissions Sand, cement, and metal dust; hydro- carbons and organic compounds; carbon monoxide; sulfur oxide, nitrogen oxides from vehicles and equipment. Wastewater Particulates, heavy metals, chemicals. Noise 80-100 decibels, 24 hours. Solid Waste Packaging materials, metal scraps, con- taminated and uncontaminated debris, 36 11. Pipe Coating Yards Pipe coating yards are industrial facilities that coat steel pipe with mastic (a protective coating or cement) and weight it with concrete before it is submerged. This process helps prevent corrosion and overcome flotation. There are two types of pipe coating yards--permanent plants that consist of about 100-150 acres and "Portable plants" or "railhead operations" that can be built on 30 acres of land. Approximately 95% of a yard is used for outdoor storage of pipe. IMPACTS AND REQUIREMENTS: Land 100-150 acres on waterfront. 30 for portable facility; 95% storage, 5% operations. Marginal Wharf 750 feet. Water Depth 20-30 feet at pier. Water 3000-15,000 gals/day. Energy 1 million KWH; 12-13 million cu. ft./yr. gas. Capital Investment $8-10 million $1 million for portable plant. Air Emissions Particulate matter, nitrogen oxides, sulfur oxides, carbon monoxide, hydro- carbons. Wastewater Contaminants Hydrocarbons, alkaline substance, particulates, metal fragments. Noise 90-100 decibels (uncontrolled). Solid Waste Concrete, metal scraps, contaminated and uncontaminated debris. 37 Labor 100-200 workers during season (March- September). Wages $2 million (assuming 175 workers); average wage 11,500. 12. Tank Farms The tank farm is a portion of a system that receives, transports temporarily stores, blends, and sistributes petroluem, raw materials, petroleum products, and related substances. Tank farms may be located adjacent to refineries, marine terminals, or piplines. The storage vessels used at tank farms may be characterized as closed storage vessels and open storage vessels. The closed storage vessels include fixed roof tanks, pressure tanks, floating-roof tanks and conservation tanks; open storage vessels include open tanks, reservoirs, pits and ponds. Land Tank Farm Capacity Land (ACS.) 1,000,000 17 2,000,000 37 3,000,000 50 3,500,000 58 Freshwater Limited (assuming no processing) Energy 8 million KWH/year for a tank farm with a 1 million barrel capacity (in four 250,000 barrel tanks) Air Emissions Hydrocarbons from evaporation from storage tanks and transfer operations. Exhaust emissions from vessels and compressors. Wastewater Contaminants BOD, COD, suspended solids. Solid Waste Contaminated sludge precipitated during storage. 38 C. The Potential for OCS ReLated Facilities LocatinQ in Middlesex County_ This section will present and discuss three projections of OCS- related facility development--high development, medium development, and low development possibilities.The projections are based cn different assumptions of: (1) the amounts of oil and gas discovered, and their production rates and (2) the effects of the permi-11- procedure of 'he Coastal Area Facilities Review Act (CAFR.A) and other state and local regulatory policies on develop- ment in other coastal counties. The discuss-ion of each projection will contain a tentative allocation of the numbers and kinds of facilities that are likely to locate in Middlesex County. These tentative allocations are not int'.ended to be predictions but rather are presented to provide a picture of onshore development as it might occur under each set of assumptions. These allocations of OCS-related deve- lopment in Middlesex County will be carried out judgementally from projections made by the Bureau of Land Management" (BLM) of the U.S. Department of the Interior and other organizations such as the Office of Technology Assessment (OTA), the Council on Environmental Quality (rEQ), and the American Petroleum L 4n 7_ble Institute (API). These projections are disPlaye- !1-2. The great t 4 variance between different proJec Ions is caused by the uncertain nature of geo- logical estimates and the different methods use-d to det-ermine the number of facilities needed to support OCS exploration, development drilling and pro- duction activities. The number of facilities that will be required and developed depends on many factors including: (1) the quantities of oil and gas found; (2) how many strikes are made, and by whilch compainies; (13) where the strikes occur and;(4) the rates of production. The production rate factor, although very 3 important, is very difficult- to predict. Peak production rates for the 3. For example, past product'-ion wells have exhibited rates ranging 1from 250 to 950 barrels off oil per day. 3 9 TABLE 11-2 PROJECTIONS OF OCS-RELATED FACILITIES GENERATED BY ATLANTIC COAST ACTIVITIES BALTIMORE CANYON GEORGES BANK SOUTHEAST GEORGIA ATLANTIC EMBANKMENT COAST OCS SALE NO. 40 BLM/FEIS ULM-/DEIS CEQ API USGS 1975 SALE, NO. 40 OTA SALE, NO. 42 BLM/DEIS BLM/DEIS Undiscovered USGS* & No. 43 SALE NO. 42 SALE NO. 43 Recoverable Resources Oil (Billion Barrels) 0-6 6.0 3-5 2.6 1.8-4.6 0.4-1.4 0.18-0.65 0.28-1.0 Undiscovered Recov- erable Resources Gas (Trillion Cubic Feet) 0-22 32.0 15-25 12.8 5.3-14.2 2.6-9.4 1.2-4.3 1.9-6.8 Peak Production Rate Oil (Million Barrels Per Day) - 0.5-1.5 1.1 - 0.74 0.3-0.7 0.32 0.053-0.181 .056-0.170 Gas (Billion Cubic Feet Per Day) - 1.8-3.6 8.0 - 4.4 0.9-2.0 3.08 0.4i-1.54 0.47-1.4 Rigs Exploratory - 4-10 15 - 10 5-10 Development - 11-24 80 - 15 11-24 cD Platforms - 30-74 180 - 10-50 25-52 10-25 20-75 Support Bases - - 5.5 - 4 - 273 1-3 Pipeline - - 4 2 Offshore: Offshore: Offshore: (Tot. 810 (80 mi. ea.) 100-450 mi. 500-750 mi. 160-320 mi. miles) Onshore: Onshore: 35-120 mi. 25-50 mi. Pipeline Ter- minals/Tank Farms 8 - 1-4 2/2 - ,0-1 1-2 Platform Fabri- cation Yard Brown & Brown A Brown & Root's 1100 Acres for Root's Va. Root's Va. Va. Proposal possible platform Proposal Proposal Cited (980 fabrication. In Cited. (980 Cited.(980 Acres) addition to,plan- Acres) Acres) ned Brown & Root's proposal Gas Processing Plants 4 8 .1r 8 3-7 3-8 1-3 1 -2 (0 5 BC (1 BCFGPD) (0.5 BCFGPD) (0.3-0.5 BCFG (0.3-015 BCFG (d.3-0 5 (o.3-0`5 BGFGPD) FC@D) PD) PD) BCFGPDj Refineries Additional Capacity of 0.56- 1.68 MMBO PD by 2000 Petrochemical 1-6 Complexes (I billion lb./hr. olefins complexes) *USGS, Geological Estimates of Undiscovered Recoverable Otl and Gas Resources in the U.S., 1975. Baltimore Canyon tracts have been projected to range from 0,3 to 1.5 .million barrels of oil per day and from 1.8 to 9.0 billion cubic feet of natural gas per day. The actual production rates cannot be predicted at this- time, however, the rates will have a major effect on the timing, pace and inten:sity of development and production. This section will employ a different range of production rate for each projection. 41 1. HIGH! DEVELOPMENT PROJECTION The high development projection is based on two fundamental a SSuMp14 ons. The first assumption is that there will be a relatively high find of oil and gas reserves in the Baltimore Canyon and the other Atlantic lease salle tracts. The Baltimore Canyon lease sale No. 40 will be assumed to hold approxi . mately 1 to 2.6 billion barrels of recoverable resources of oil and 6 to 9 trillion The h4 cubic feet of recoverabie resources of natural gas. I igh figure is taken from'an early projection made by the Bureau of Land Managei-iient. The entire Atlant-1c Coast will be assumed to hold approximately 4 to 6 billion barrels of recoverable resources of oil and 14 to 22 trillion cubic feet of recoverable resources oil natural gas. Lease Sale No. 40 production rates will be assumed to range from 0.5 to 0.7 million barrels of oil per day and 2.0 to 4.0 billion cubic feet of gas per day. For the purposes of all three projections it will be assumed that 'the amount of crude oil entering Middlesex and Union Counties from the Atlantic tracts will range from 0 to .594 million barrels of oil per day (MB/D). This assumption is based on projections that all of the oil (or 0. - .181 MB/D) from the Georges Bank Sale No. 42, 4 and 5 one half of the oil (or .0 to .370 MB/D) from Balti-nqore Canyon Sale No. 40, and one fourth of the oil (or .0 to .043 MB/D) from Southeast Georgia Embay- ment Sale No. 43 will be shipped to refineries, in Middlesex and Union Counties. Under the high development projection it will be assumed that .396 to .594 MB/D of oil will be transported to refineries in Middlesex and Union Counties. 4These figures are derived from United States Department of the Interio,, Draft Environmental S.t.atefrient, OCS Sale No. 42, and Final 'Environmental Statement, OCS Sale No. 40 5. This projection is based on an assumption that one-hal-F of -the oil from lease sale No. 43 will be shipped to the refineries in the Delaware River Region and that one-half of this oil will be shipped to refineries in Middlesex and Union Counl.-ies. 42 a 4 1 y it will also be assumed that one-half of the d peak production of gas (or 1 to 2 billion cubic feet of gas per day) will,be piped to Middlesex County for processing. The second assumption is that the CAFRA permit procedure will significantly limit the development of OCS-related facilities in the coastal zone areas wi-t-hin the jurisdiction of the act and, consequently, facility developers will tend to locate in non-CAFIRA areas Such as Middlesex County. This assumption is related to a pre-supposition that coastal towns in CAFRA will seek to limit development of activities that might jeopardize their existing tourist' based economies. (a) Probable Offshore Activities 1. ExQloration EExplorattory drilling will probably begin shortly after the legal problems of lease sale No. 40 are resolved. Various sources have projected different figures for exploratory rigs, but most Sources seem to agree that 4 to 10 rigs will be used for the lease sale 40 tracts. 2. DeveloDment - Development dr 411 I inq rigs will probably be 1F@stalled approxim-a-tely 2 to 31-years following the first discovery. The sources are also in disagreement on the number of' d-evelopment rigs needed, but the projections range from 5 to 15 rigs for lease sale No. 40. Similarly, the projections of needed platforms vary greatly, but generally range from 10 to 50. 3. Transportation of Oil and Gas - Alternative methods for transporting the oil ana-gas to onshore processinq facilities will be analyzed several years before 'pro- P i p e 1 4 duction begins. Ines appear to be the most probable method of transport from 'Che Baltimore Canyon. M4 The most recent BLM figures Droject 450 Iles of offshore pipelines and 50 miles of onshore pipelines for the high find projection. (b) Probable Onshore Falcilities V 4 + The level of onshore acti I" is closely related to the level of offshore activity. Exploration will be the mia 4or offshore J activity during the first several years of the high development p j rojection. Development drilling and production activit-les may continue for as long as 30 years during vihlch, time perman- C@ 4 V-' ent service bases and other a 1-1 Ities @,,iill develop and operate. 43 Some facilities will onerate to serve the activities in other lease sale areas such as the Georges Bank and the Southeast Georgia Embayment. For example, refineries, marine terminals, and petrochemical plants in Middlesex County may be used to store and/or process oil products from other OrS lease sale tracts. This subsection will discuss the onshore facilities that are likely to be generated by activities in the Baltimore Canyon and other Atlantic lease sale tracts and make tentative allocations of the number and types of facilities that may locate in Middlesex County. 1. Temporary Service Bases - A temporary service base has already been established in Rhode Island and will probably be sufficient to support most exploration activities in the Baltimore Canyon and. the Georges Bank. 2. Permanent Service Bases - As discoveries are made permanent bases will be established. BLM originally projected a need for 4 bases, but these figures may be subject to change due to the reduced projections of likely finds. Presumably 3 or 4 permanent service bases will be needed to support a relatively high find of 1.4 billion barrels. If one or two bases locate in Maryland or Delaware and one base in Southern New Jersey then one or two bases could locate in the Middlesex County area. 3. Pipeline and Platform Installation Support Bases Most sources have not projected numbers of pipeline and platform installation support bases that will be generated by Baltimore Canyon activity. In Estimates for New England the Resource and Land Investigations (RALI) project estimated a need for 2 pipeline installation service bases and 2 platform installation service bases for an expected find in the Georges Bank of 2.4 billion barrels of' oil and 12.5 trillion cubic feet of natural gas. Reasoning by analogy, at least 1 pipeline installation service base and I platform installation service base will be needed to support Baltimore Canyon activity. Under the high impact projection it is possible that both would locate in Middlesex County. 44 IR ep a Repair and Maintenance Yards ir arid- Maintenance Yards" is a phrase that refers loosely to the many firms that provide repair services for OCS-related vessels. Existing repair facilities are usually employed and therefore it is likely that CUAFRA will not barl repair activities from existing yards (if any) in the coastal zone. Middlesex County repair and service facilities will presumably service a significant number of mid-size vessels. 5. PiPe Coating Yards - Most sources make no projections of the number of pipe coating yards that will be needed to support the Baltimore Canyon activities. The RALI estimates for New England project a need for 2 pipe coating yards to support the laying of 2,000 miles of offshore pipe. Existing New Jersey plants should be able to Supply the 450 miles of pipe needed for lease sale No. 40 under the high impact projection. In this case a 25-30 acre "railhead operation" might be I -he other located along the Raritan or Arthur Kill. On 4L L hand it is possible that a new full scale pipe coating yard would seek to locate along either channel. 6. Pipeline Landfalls - The BLM has -estimated a need for I to 4 pipeline landfalls for the Baltimore Canyon. Gas pipeline landfalls tend to locate close to the nearest transmission line. Oil pipe- line landfall sites will probably be influenced by proximity to refineries. Considering the existing SS4 gas transmi )on lines and refineries in Middlesex County it is possible that one gas landfall and one oil landfall would seek to locate in the county. 7. Tank Farms - Tank farms are oil and petroleum pro- duct storage facilities that are located near pipe- lines, marine terminals or refineries. If an oil pipeline is landed in Middlesex County then 1 or 2 tank farms may seek to locate near the landfall and/or a refinery and/or a partial processing treatment plant. A marine terminal may be built in Middlesex County to receive crude oil from non-Baltimore Canvon Atlantic lease sale tracts. A tank farm might be colocat,ed with the terminal. 8. Platform Fabrication Yards - Brown and Root, Inc. a platform fabrication com pany has purchased a large tract of land and has begun to construct a plat, - form fabrication yard in Virginia. The Bureau of Land Management has concluded that an additional yard will be needed to support the activities in the Southeast Georgia Embayment. The Virigina yard will be able to supply the plat- forms needed in the Baltimore Canyon. A new yard will not be developed in Middlesex County because there are no sites that meet industrial location requirements. 45 9. Gas Processing Plants - Gas processing plants are generally located somewhere between the pipeline landfall and the gas company's transmission lines. The capacity of gas 'processing plants range from two million to two billion cubic feet per day. The size and specifications of an individual facility depend on several factors, includinq the size of' the gas deposit, the expected rate of production, the composition of the gas and the market prices of the various hydrocarbon products. The BLM has concluded that 3 to 8 plants with capacities ranging from 0;3 to 0.5 billion cubic feet of gas per day will be needed to process gas from lease sale 40. If eight are needed, and gas pipelines are landed in Middlesex County, then 1-3 gas processing plants will probably seek to locate in the county. 10. Refineries - There are many complex factors that influence decisions to construct new refineries. The discovery of oil in the Baltimore Canyon and other Atlantic lease sale areas merely adds the factor of a local supply to this decision-making process. If this local supply of crude oil is used to replace imported oil,6 then it will not have a significant affect on decisions to build new refineries or to increase the capacity of existing refineries. If barrel for barrel replacement does not occur, then new refineries and/or additional capacity may be needed. (For a further discussion of these assumptions, see chapter III. It is also difficult to predict the -exact location of any new refineries. it is arguable, however, that Middlesex County will be attractive to the oil indus- try as a location forrefineries. This agrument is eased on the grounds that the county: (1) has the transportation facilities needed by refineries, and (2) is located in the center of the northeast's market area. For the purposes of the high development projection it will be assumed that a refinery capacity will increase in Middlesex County by .396 to ;594 "B/D to refine crude oil supplies from the Baltimor-e Canyon and other Atlantic lease sale areas. 6.This assumption of barrel for barrel replacement was made by BLM in the Draft Environmental Impact Statement of OCS Sale No. 40. 46 11. Marine Terminals - Under the high development projection it is assumed that there All be high -finds in the t T f Georges Bank and the South;ast Geor'gia Embaymen' - this occurs then tankers @aiill probably be used to shi'o crude oil to the ",lid-Atlantic states for refining. Some of this crude oil will presumably be processed at the refineries in and near Middlesex County and in this case at least one marine terminal will be built in iNliddlesex County. Another may be built in the Delaware River Philadelphia area. 12. Partial Processing Plants - If crude oil is transported by tanker from the Georges Bank and the 'Southeast Georgia Embay- ment, then it will probably be partially processed offshore. Crude from lease sale 40 tracts will probably be transported by pipeline and partial processing may take place onshore. In this case, partial processing plants with a total output of up to 370,000 barrels of oil per day will be needed in or near Middlesex County. This quantity refers to the amount of oil pro- duced after partial processing. When processing occurs onshore pipelines actually carry many more barrels of gross unprocessed fluids containing gas, oil and water. Considering the high daily production rate under this projection and the fact that the EXXON refinery is 10- cated'in Union County and the Chevron and inactive Hess refinery are located in Middlesex County seems likely that partial processing plant(s) with a to-@Cal capacity of 370,000 BOPD will seek to locate in Middlesex County. Table 11-3 summarizes the number and types of onshore facilities that may Tocate in Middlesex Countv if-the assumPtions of the hiah development Projection hold. TABLE 11-3 ONSHORE FACILITIES THAT MAY SEEK TO LOCATE IN, MIDDLESEX COUNTY - HIGH DEVELOPMENT PROJECTION- 1-2 permanent service base 1 pipeline installation support base 1 platform installation support base 1-2 pipeline landfalls 2 tank farms 1-3 gas processing treatment plants 0-1 refinery 1 marine terminal Partial processing Plant(s) Total Output Capacity of up to 370,000 BOPD 47 2. MEDIUM DEVELOPMENT PROJECTIOixi The medium development projection is based on two assumPtions. The first assumption is that there will be a medium sized find of recoverable resources of oil and gas in the Baltimore Canyon and the other Atlantic lease sale tracts. The Baltimore Canyon lease sale No. 40 will be assumed to hold approximately .4 to 1 billion barrels of recoverable resources of oil and 2.6 to 6 trillion cubic feet of recoverable resources of natural gas. The entire Atlantic coast will be assumed to hold approximately 2 to 4 billion barrels of recoverable resources of oil and 6 to 14 trillion cubic feet of recoverable resources of natural gas. The low values of these ranges are the quantities associated with a 25 percent probability (1 in 4 chance) that at least these amounts will be found. The high values are the quantities associated with a 7' percent probabilit L 0 1 _y (3 in 4 chance) that at least these amounts will be found.7 Lease Sale No. 40 production rates will be assumed to be 0.2 to 0.5 million barrels of oil per day and 1.0 to 2.0 billion cubic feet of gas per day. It is likely that .198 to .396 million barrels of oil per day and .5 to 1. billion cubic feet of gas per day will be transported to Middlesex and Union Counties. The second assumption is that the CAFRA permit procedure and local regulations will only place moderate limits on the development of OCS-related facilities in the coastal zone areas within the jurisdiction of the act and consequently some facilities will be able to locate in counties within the CAFRA coastal zone. Probable Onshore Facilities Under the assum-,!ptions of the medium development projection it seems likely that most OCS-related facilities would locate in other states or in 7These and other figures have been drawn from Geological Estimates of Undis- covered Recoverable Oil and Gas Resources in the United Statesi Geological Survey Circular 725, 1975, pp. 28-31. 48 other coastal counties of New Jersey. Some of the facilities that would , probably not seek to locate in Middlesex County include temoorarv,and permanent service bases and platform fabrication yards. Table 11-4 summarizes the number and types of onshore facili- ties likely to be built in Middlesex County ill the assumptions of the medium impact projection hold true. TABLE 11-4 ONSHORE FACILITIES THAT MAY SEEK TO_-LOCATE IN MIDDLESEX COUNTY - MEDIUM IMPACT DEVELO_PM'_NT PROJECTION 1 gas processing treatment plant 1-2 pipeline landfalls 1 pipeline installation support base 1 marine terminal Partial processing plant (Total output capacity of up to 247,000 BOPD) 45 3. LOW DEVELOPMENT PDOJECTION The low development Projection is also based on two assumptions. The first assumption is that there will be a low sized find of recoverable oil and gas resources in the Baltimore Canyon and the other Atlantic lease sale tracts. The Baltimore Canyon lease sale No. 40 will be assumed to hold approximately 0 to .4 billion barrels of recoverable resources of oil and 0 to 2.6 trillion cubic feet of recoverable resources of natural gas. The entire Atlantic Coast will be assumed to hold approximately 0 to 2 billion barrels of recoverable resources of oil and 0 to 6 trillion cubic feet of recoverable resources of natural gas. Baltimore Canyon production rates will be assumed to range from 0 to 0.2 million barrels of oil per day and 0 to 1. billion cubic feet of gas per day. It will also be assumed that 0 to .198 billion barrels of oil per day will be shipped to refineries in Middlesex and Union Counties from all of the Atlantic 1--ase sale tracts. Natural gas, however, will be processed in other counties that are closer to the lease sale 40 tracts. The second assumption is that CAFRA and other state and local regulations will not significantly prohibit or limit development of OCS-related facilities in the other coastal counties of New Jersey. Probable Facilities Under the assumptions of the low development projection it is likely that no support bases, gas processing plants, partial processing plants, pipeline landfalls, or refineries will be built in Middlesex County. A marine terminal, however, may be needed to unload and store crude oil tankered in from lease sale 40 tracts. Tankers will probably be used because the production rate will not justify construction of a pipeline. Under this projection local repair and maintenance yards ma1v increase their activity. 50 4. SUMMARY .The following table (Table 11-5) summarizes the onshore facilities that will probably be generated if the asSUMptions of the various projections hold true. TA3LE 11-5 SUM!"WRY OF DEVIL00-HE@11' ONSH,"E FACIL[T[ES LIKELY TO NVELOPXE@J PROJECT!0111S ASSUMPTIONS LOCATE IN MTOOLFSEX COU:J'r I High Impact a - High find of recoverable oil and gas I or 2 perm--In'ent service bases Sale No. 40 - 1.0 to 2.6 billion I pipeline installation support base barrels of oil I platform installation Support oase 6.0 to 12,8 trillion 1 or 2 pipeline landfalls cubic feet of oas 2 tank farms Atlantic Total - 4. to 6. biilion, 1-3 gas Processing treatment plants barrels of oil Refinery (capacity of .396-.@194) 14 to 22 trillion I marine terminal cubic feet of gas Partial processing plant (Up to 370,000 Production Rates 0.5 to 0., BOPD Capacity needed) million B0PD 2.0 to 4.0 billion C@G?D Middlesex Union Counties .336-594 million BOPO 1.0 to 2.0 billion CFGPD b. State and local policies signifi- cantly limit developn:@@nt of OCS- related facilities in t.he CAFRA coastal zone. 2. Medium Impact a. Medium find of recoverable oil and I gas processing treitrient 'o]ant gas I or 2 pipeline lan'@falis Sale No. 40 - 0.4 to 1.0 billion I pipeline installation support base barrels of al] I marine tprpiin.31. 2.6 to 6.0 trillion Par:ial processing plant (UP to 24/,000 cuLic feet of gas NZ;_0 cdpacl.CY flceo@--d) billion harrels of oil 6.0 to 14 trillion cubic feet of Ws Production Rates - 0.2 to 0.5 mil I ion SOPD 1.0 to 2.0 billion CFGPD Mi"dlesex & Union Counties .198 to .3*36 million SOPO .5 to 1.0 billion CFGPO b. State and local policies ,:oderatelv limit d,@v,@lwmcnt of OCS-related facilities in the CAFPA coastal zone, 3. Low Impact A. No or loa find of recoverable oil I marine terminal and gas Sale No. 40 - 0. to .4 billi 'on barrels of oil 0. to 2.6 trillion cubic feet of gas Atlantic Total - 0. to 2.0 billion barrels of oil - 0. to 6.0 trillion cubic feet of gas Product-ion Rates - 0 to 0.2 million B"-)PD 0 to 1.0 billion CFGPD Middlese x & Union Counties - 0 to .193 million BOPD NO gas b. State and local policies do not sig- nificantly limit develop,,;ent of rCS- related facilities in the CAc.@@"% coas- tal zone. III. THE DEMAND FOR PETROLEUM AND PETROLEUM-RELATED FACILITIES A. Projections of Future._Energy and Petroleum Demands The discussion in Chapter I of current petroleum supply and demand for the United States as a whole, -the North Atlantic Coast, and Middlesex County in particular, clearly indicates the existing patterns of oil transport, processing, and delivery. Cha.pter II identifies the range of facilities associated with OCS activities and the potential for OCS re- lated facilities locatina in Middlesex County. It is not only appropriate but essential to investigate future petroleum demand in order to fully exam- ine the potential range o rfuture growth of petroleum related facilities that might occur in Middlesex County. Projections of future petroleum demand for the North Atlantic Coast are shown in the bottom portion of the graph in Figure III-1. Petroleum, as of 1975, was being supplied to the region in the form of crude oil (35%) and refined petroleum products (65%). The upper portion of Figure III-I shows the projected demands for total energy for -the North Atlantic Coast. It is assumed that future total energy demand will be met by the five basic energy forms that are meeting current demands. The following chart presents these basic energy forms and their percentage of total 1975 energy demand. % of Total Energy From: Demand -1975 Oil 66% Coal 15 Natural Gas 14 Nuclear 3 Hydropower 2 52 FIGURE I-I PROJECTED DEMAND FOR TOTAL ENERGY AND PETROLEUM PRODUCTS IN THE NORTH ATLANTIC COAST REGION -15 -14 -13 -12 -11 z TOTAL ENERGY DEMAND uj -10 D -9 cc -8 Lu IL C) u- 0 =-6 cc x < Im C) M'j) C 0 PETROLEUM DEMAND u- =: < .5 < z 0 -j = . -4 -j 0 u -3 2 z 1976 1980 1985 1990 1995 2000 YEAR SOURCE : Graph data from U.S. Congress, Office of Technology Assessrnent(@ @orking_fapers:) Coastal Effect of Offshore Energ,@_Systern ,November 1976 53 Both the upper and lower portions of the graph shown in Figure III-1 consist of three separate projections, two by the U. S. Federal Energy Administration (FEA) and one formulated by the Bureau of Mines (BOM) of the U. S. Department of Interior, Originally formulated as part of the 1976 National Energy Outlook,the FEA's projections are based on the agency's econometric model and reflect variations in such broad types of energy demand determinants as energy prices, economic conditions, population, and the potential for energy conser- vation. One scenario, the reference case, assumes "business as usual" economic conditions and does not include conservation measures of the type likely to be prompted by governmental intervention, although it does reflect some conservation resulting from higher energy prices and new natural gas prices. The FEA conservation scenario assumes that stringent government con- servation policies and programs will be instituted. Improved auto efficiency, van pooling programs, increased airline load factors, better conservation, and peak load management by utilities are all assumed as means to limit the demand for petroleum. On the supply side, major assumptions include: (1) restric- tions on nuclear power plantconstruction (no projects beyond currently granted constructior permits) and, (2) environmental restrictions on mining and burning coal. Even with the institution of government conservation policy and programs as assumed in the FEA conservation scenario, petroleum and total energy demand will continue to rise. In fact, petroleum demand under FEA's conservation scenario is actually projected to be higher by 1985'than the projection of 54 petroleum demand under FEA's reference scenario. Since the development of nuclear and coal fuels is restricted under the conservation scenario, petroleum demand is deduced to be higher than in the reference case which does not assume stringent limitations on other fuel sources. The projection made by the Bureau of Mines (BOM) (originally published in 1975 in Energy through the Year, 2000), is essentially an extrapolation of present trends in energy consumption, with judgement imposed to reflect expectations about limitations to supply. Deregulation of oil and gas is assumed. The potential for conservation was not considered in their forecast, although a projection of a declining trend in energy per value ad ded ratios does inject some measure of increased efficiency. 55 B Th e Po te n t i a I f or INew Growth i n Pe trol eum- Re 1 a ted Fac i I i t i e s The graph shown in Figure iI-I presents recently published estimates of the future demand for petroleum and other energy sources in the North Atlantic Region. It is evident that petroleum demand is expected to increase greatly by the year 2000. The following discussion focuses on the possible modes by which petroleum might be supplied to the North Atlantic Region in the future. The purpose of this section is to establish ranges of future energy facility growth and to illustrate and dimensionalize the potential demand for energy facilities. This illustration of the range ol possibilities concerning petroleum-related facilities, including OCS facilities, is tenta- tively presented to generally protray the North Atlantic Region's energy future M4 and the facilitieswhich Ight locate in Middlesex County. The 1976 supply of petroleum to the North Atlantic Region totaled 4.6 MB/D and consisted of 1.6 MB/D in cru-de oil and 3.0 MB/D in refined petroleum products. The amount of crude oil supplied to the Region is approximately equivalent to the regional refinery capacity. By the year 2000 petroleum demand is expected to increase by 1.9 MB/D so that the total amount of petro- leum needed to supply the Region would rise to 6.5 MB/D. Future petroleum demand will be satisfied through one of the three possible arrangments: 1) increasing the amount of crude oil supplied to the Region; or 2) increasing the amount of refined petroleum products supplied to the Region; or 3) increasing the amount of both crude oil and refined petroleum products supplied to the Rbgion. Presently, crude oil facilities consist of refineries, associated marine terminals, storage tanks, and distribution facilities such as railroad tank cars, tank trucks, and product pipelines. The present system of refined petroleum Product facilities consists of marine terminals, storage tanks, major product transmission pipelines and pipeline terminals, and distribution 56 facilities such as railroad tank cars, tank trucks, and product pipelines. To meet'. future demand, either one of these systems of facilities, or both, might expand in capacity and number of facilities. In addition, with the imminent exploration and potential development and production of oil and 4- gas off the Atlantic Coast, facilities associated with such OuUer Continental Shelf (OCS) activities can be expected to locate in the Region, and oil, if found, could contribute to the Region's future petroleum suppIly. Offshore oil and gas related facilities may be categorized into two basic groups. The first groupconsists of those facilites previously unknown in the Regior,such as facilities engaged in the exploration and construction phase of OCS activities, but also including some processing facilities associated with the production phase. TABLE III-I OCS-Related Facilities new to the North Atlantic Region exploration and permanent service buses construction phase pipeline support base platform installation support base platform fabrication yards --------------------------------------------------------------- production phase offshore crude oil pipelines partial processing plants gas processing plants The second group consists of facilities which already exist in the Region, plus refineries and petrochemical firms which may expand their operations as a result of offshore oil. TABLE 111-2 OCS-Related Facility Types Already existing in the North Atlantic Region exploration and refineries construction phase petrochemical industries 57 The following section will discuss the possible means by which petroleum demand may be met in the future. The discussion will consist of three separate scenarios, each with different assumotions reqarding: 1) the replacement or non-replacement of offshore oil for the crude oil that is presently being imported into the North Atlantic Region; 2) the growth in refinery capacity in Middlesex County and the North Atlantic Region; and 3) the growth in the capacity of those facilities that trans- port, store, and distribute refined petroleum products to the North Atlantic 10\bgion. 58 SCENARIO 1 Under this scenario it is assumed that: (1)"barrel-for-barrel replacement" of offshore oil for crude imports will occur; (2) the refinery capacity in the County or Region will not change, (3) the capacities of the Reaional facilities to transport and store refined petroleum products will increase to accommodate an additional 1.9 MB/D. Figure 111-2 indicates the changes in relative amounts of crude and refined petroleum and the facilities that will be associated with these changes. . Under these assumptions, 0-.594 MB/D of Atlantic OCS oil may be transported to Middlesex and Union Counties for refining. This crude oil would replace an equivalent amount of imported crude and no additional refinery capacity would be needed. Various OCS facilities may locate in Middlesex County to support the development, production and transportation of OCS crude oil. (See Chapter II.) If the find of recoverable resources of oil off the Atlantic Coast is very low and state and local regulations do not significantly inhibit the development of OCS facilities in other counties in New Jersey, then no or very few facilities will be developed in Middlesex County. The number of OCS facilities likely to locate in Middlesex County will increase proportionately with increases in the amount of discovered recoverable resources of oil and the effectiveness of state and local regulations in limiting development in other coastal counties. Figure 111-2 also indicates that various new regional facilities wou ld be needed to transport, receive,and store 1.9 millidn barrels per day of refined petroleum products. The County Planning Board has not estimated the number of these facilities thatwould locate in Middlesex County. It is likely, though, that the Countywould experience some development since it is already a major port and transshipment point for petroleum products supplying the New York and North Atlantic Region market. 59 FIGURE 111-2 FUTURE DEMAND FOR PETROLEUM AND PETROLEUM RELATED FACILITIcS SCENARIO I Assumptions: 1) Barrel for barrel replacement of offshore oil for existing crude oil imports 2) Refinery Capacity: No change in Middlesex County or the North Atlantic Region 3) Refined Petroleum Faciliti!s 1a,,aci,,,ty: Increase in t,o I the North Atiantic Region _cco ate an additional 1.9 MB/D @'Number or Caoacity of OCS Facilities Like:,,to Locate CRUDE in Middlesex county 6 IMPORTS Gas Processing Plants 0 3 0- - C54 OCS Partial Pro- CRUDE cessing Plants 0 .37 MB/0 Capacity Tank Farms 0 2 _@'\INCREASE Pipeline Landfal Is 0 2 IN REFINED PETROLEUM Marine w PRODUCT Termi nal s 0 1 C_ IMPORTS V) Perma nent _j Support Base 0 2 LU 3 Pipeline Sun@ort Base 0 1 U_ Pl@tfor, C) CURRENT Support Sast 0 1 2 LEVEL OF Ln REGIONAL FACILITY DEMAND REFINED PETROLEUM Refined Products Transportation PRODUCT and Storage Facilitir@s: IMP11T1 ma rine terminals (deepwater ports) storage. tanks \1 - pipelines & pipeline terminals 19 76 1985 20001 YEAR 60 Table IT 1-3 summarizes the land, water supply, energy, and employment requirements of the OCS-related facilities likely to locate in Middlesex County if the high impact development projection were to occur. Table 111-4 summarizes the environmental impacts of these facilities under the same high impact develop- ment projection. 61 TABLE 111-3 SUMMARY OF REQUIREMENTS OF FACILITIES PROJECTED UNDER THE HIGH DEVELOPMENT PROJECTION Re iement, LAND WHARF SPACK KATER FUEL and/or ELECTRICITY EMPLOYMENT (Approximately) FaciliLY Total --50-0-1 Workers LocaT- u Faci'i,4atfrll. _T2G-0T,-,--TF-,Tat_ 250-6DU ! # of Gallons 1@0-107 Workers ,e -7T-T2R9F_ forms (2 bases) during n0ore Facilities Acres/ Total Feet Total Gallons/ Total Quantity/ Workers; Total 21r6 brels/yr. dur- 250-300/5 Plat- Dish. ejO 7 214GY pot- r urja forms during drilling s @ected Fa;!1,ity Acres Feet Fac,11,1t@ development nar d serv c n5 :rmanen " ce during develp. 1 9 evelp. Be mae e 2M Y pot ble able ses G 2 a -96.000 -192,000 drilling .11 MGD dur- *.1-.224 76,800 76,000 ing OO5MGD MGD deve- barrels/yr. dur- barrels/yr. dur- potable lopment ing production ing production .005-.01MGD potable Pipeline Installa-1 5 5 200 200 N/A N/A 50,000 gals./mo. 230,000 gals./mo. 25/pipeline 25/pipeline 13 for Jay barges for I lay barge 250-300/lay 250-300 - barge spread tion 110,000 gals./mo. and 1 burying bar Support Base for burying bar- 9 - ge' , deisel oil for tugs Pla M Install:- 1 5 5 2 0 200+ w/A NIA 100,000 gals. of 37,800,000 - 100 Too offshore 125 40 0 deisel fuel/der- 000,ooo gals/yr. 25 onshore t in tfop four rick barge/unnth nsup ort B platforms 150,000 gals./tug installed per month Pipeli ne Landfalls 1-2 50-100 ft. 1-200 N/A N/A N/A N/A 17 onshore N/A right-of- way; 40 ac. if Pumping N/A NIA N/A station nee- d d; 60 if t:rminal Tank Farms 1-2 needed 17-58 N/A N/A N/A N/A N/A C 8 million KWH/yr. apacity (Barrels) 17 17-34 or 14 million JUH/yr. .1 000 000 37 37 or NIA N/A 2:000:000 50 50 or N/A N/A 3,000 000 58 58 3,500:000 N/A N/A Partial Processing1 300-340 N/A N/A N/A N/A N/A Plant (250,000 BOPD capacity) Gas Processing 1-3 50-75 50-225 .2MGD aver- .2 to .6 64.8 million KWH/yr. 64.8-175 million N/A N/A NIA age MGD 360 million cu. ft. KWH/yr. 360-1080 Treatment Plant of gas/month from million cu. ft. gas, plant month a million KWHlyr. 9 million KWH/yr. i60 constr0yr.) 560 constr.(l Yr.) 112constructiOn yr.) Marine Terminal 1 30 30 N/A N/A limited 11,800 barrels of operation operation 6-67 operation (1 Million barrel assuming ta@k farm no pr - I million KWH/yr. fuel/year 10-9 10-90 storage capacity) terminals cessing 11,800 barrels of fuel/year negligable or zero not available 9 rMil7i.n Gallons Per Day (MGD) figures have been calculated by averaging of month y and yearly fi ures IThis yearly quantity will vary greatly depending on the number of platforms installed SOURCE: NERBC, FACTBDOK and Estimates For New England, and the Conservation Foundation, Onshore Impacts of OCS Oil and Gas Development 62 TABLE 111-4 SUMMARY OF ENVIRONMENTAL IMPACTS OF FACILITIES PROJECTED UNDER THE HIGH DEVELOPMENT PROJECTION Impacts of AIR EMISSIONS -- Sources & Tons/Year MAJOR WASTEWATER POLLUTANTS Facilities Hydro- Partic- Sulfur Nitrogen Carbon Hydro- Hydro- Heavy Antifouling Suspended Onshore Projected carbons ulates Oxides Oxides Monoxide gen Sulfide carbons Metals Substances Solids Facilities Permanent Service I Fuel Stor- Mobile Mobile Mobile Runoff Base age 3.0 Sources Sources Sources Pipeline Install- 1 Fuel Stor- Mobile Mobile Mobile ation Support Base age 1.0 to Sources Sources Sources 3.0 Platform Install- I Fuel Stor- Mobile Mobile Mobile ation Support Base age 15 to Sources Sources Sources 40 Pipeline Landfalls 1-2 Compressors Compres- Pumps Pumps & Pumps sors Tank Farms Two (1 Crude Stor- million age tank bbl cap.') evapora- 1 (2 mil- tion lion bbl cap.) Transfer losses .1 lb./ barrel trans- ferred stor- age Partia I Processing 1 Tank Evapor- Combustion of gas pumps for leakage, process process Plant (250,000 BOPD ation oil - water water water Capacity) Leakage Separator Pumps Pumps Mobile Mobile Mobile Mobile Sources Sources Sources Sources Gas Processing 1-3 Process leaks Sulfur Process Process Sulfur re@ Prpcess ..Cooling Cooling Treatment Plants 11,498-56,913 recovery covery 142- Water Water Water 3 to .5 BCFGPD) (1958 data) process rocess boiler water iassuming sulfer con- 580-2871 M58 data) Eoiler tent of 0.9% by volume) water Marine Terminal 1 Crude Stor- Runoff (I million barrel age Tank Ballast storage capacity) Evaporation Water Transfer losses .1 lb./barrel transferred SOURCES: NERBC FACTBOOK and Estimates for New England, and The Conservation Foundation, Onshore Impacts of Imparts Ons@re @F liti s Oil and Gas Deve lopment. 63 TABLE 111-4 SUMMARY OF ENVIRONMENTAL IMPACTS OF FACILITIES PROJECTED UNDER THE HIGH DEVELOPMENT PRUJECTIUN (Continued) "-,@mpacts of NOISE EMISSIONS SOLID WASTE Facilities (decibels; source) Onshore Projected Facilities Permanent 1 Up to 85; 24 hours/day-punips Up to 6 tons/year during drilling Service Base 90-96-, pneumatic power tools 92-100; air compressors Pipeline Install- I NA Up to 6 tons/year ation Support Base Platform Install- I Up to 85; 24 hours/day Up to 6 tons/year ation Support Base Pipeline Landfalls 1-2 90-100; compressors NA 140; annual pipeline venting Tank Farms 1-2 NA Contaminated sludge and sediments Partial Processing 1 80-90; pumps NA Plant 81-96 at 20 feet; flarestacks 81-96; treating vessels Gas Processino 1-3 92-100; air compressors Sludges, scale, spent dessicants, h-edtillent PlanL 81-96 at 20 feet-, flarestacks: 24 hours/day filtration media, oil absorbants 90 at 6 feet; boilers Ma ri ne I NA Contaminated sludge and sediments h--i-minal NA = Not Available SOURCES: NERBC, FACTBOOK, and Est.imates for New England, and The Con!;ervation Foundation, Onshore Itiipacts-of OCS Oil and Gas Development. 64 SCENARIO 2 Under this scenario it is assumed that: (1) OCS oil will not replace crude oil imports and that the amount of crude oil imported will not change,(2) 'refinery capacity in Middlesex County will increase by 0 to .594 million barrels per day. @br processing of OCS crude,and (3) the wacity of the North Atlantic Region's facilities fortransport and storageof mfined petroleum products wil 1 increase to accommodate an additional 1.3 million barrels per day. Figure 111-3 indicates the changes in the relative amounts of crude and refined petroleum and the facilities that will be associated with these changes. Under those assumptions additional refinery capacity, stimulated solely by offshore oil production, would be developed in Middlesex County. The increased refinery capacity would stimulate an increase in the petrochemical industry resulting in the establishment of 0 to 7 petrochemical complexes in the County. In addition, Figure 111-3 indicates that various OCS related facilities may develop in Middlesex County. The number of facilities that are developed depends primarily on the amount of oil discovered in the Atlantic OCS and the effect of state and local regulations in limiting development in other coastal counties. Figure 111-3 also indicates that various new regional facilities would be needed to transport, receive and store 1.3 million barrels per day of refined petroleum products. Some of these might include: marine terminals (a possible deepwater port for refined petroleum products); storage tanks; and/or refined product pipelines from southern refineries. It is likely that the County will 1 Arthur D. Little, Inc. report to the Council on Environmental Quality, Potential Onshore Effects of Deepwater Oil Terminal-Related Industrial Development Vol. II East Coast, pp. 2-12. 65 FIGURE 111-3 FUTURE DEMAND FOR DF@ROLEUM ANO PE 7 ROLEUM RELATED FACILITIES SCENARIO 2 Assumptions: 1) No replacement of OCS oil "or existing crude oil imports 2) Refinery Capacity: 0-,594 MB/D increase in Middlesex County induced by offshore oil 3 ducts Facilities Capacity: increase in 3) Refined Pro North Atlantic Region to accomrrocate an additional 1.3 MB/D Number or Capacity of GCS- Pelated Facil4@4cs Likely to Locate in Middlesex Councy Refineries 0 .549 @!B/D CRUDE Capacity IMPORTS petrochemical Ccmplexes 0 7 Gas Processing Plants 0 3 OCS <: 5 0-594 CRUDE Partial Pro- P!@rt, .37 'MB/@ Capacity Ld C_ Tank Farms 0 2 INCREASE I N Pipeline C) 4 REFINED PET-\ Landfalls 0 2 U_ ROLEUM PRO- Marine C) DUCT IMPORTS Term inals 0 1 Permanent LU 01 Ser ic- Bases 0 v < Pip-lin 3 Support Base 0 1 U_ CD Platform Support Base 0 1 V) Ty D7@!A@J@@ REGIONAL FPC!Lr,- 11, @ Refined Products Transportation 2- CURRENT LEVEL 0. , and Storag,,@ Faci.ities: IMPORTED mar'ne terminals (deepwater REFINED PET- por@s) storage tan@s ROLEU@l PRO- pi pe I i nes p i pel i ne term na Is DUCTS 1976 1985 2COO YEAR 66 0 .5 - experience some development of these facilities since it is a major port and transshipment point for petroleum products supplying the New York and North Atlantic Region market. Table 111-5 summarizes some of the impacts associated with refineries and petrochemical complexes likely to locate in Middlesex County under this scenario. The impacts and requirements for the remaining OCS induced facilities can be found in Table 111-3 and Table 111-4. TABLE 111-5 Selected Impacts Associated with Refineries and Petrochemical Complexes For a 250,000 bbl/day refinery Land Requirement Employment Water Demand Environmental Impacts 1000-1500 Acres 410 Operation -10.5 mgd brackish Air quality (especially 80% Local hydrocarbon emissions) Water quality Noise Solid waste For 0-7 petrochemical complexes Employment Potable Water Demand Environmental Impacts 0-29,000 0-162 mgd using present Air quality Persons wastewater treatment Water quality technology Noise 0-68 mgd using advanced Solid Waste wastewater treatment technology Source: Arthur D. Little, Inc., report to the Council on Environmental Quality, Potential Onshore Effects of Deepwater Oil Terminal-Related .Industrial Development Vol. II East Coast. 67 SCENARIO 3 Under this scenario it, is assumed that: (1) refinery capacity in the North Atlantic Region will increase by 1.9 million barrels to accomodate both growth in market demand and OCS oil; and (2) the capacity of refined products facilities will not change. Figure 111-4 indicates the OCS and petroleum facilities that are likely to be located in the region and Middlesex County if these assumptions hold true. The graph illustrates that by 2000 approximately 1.9 million barrels of crude oil per day will be entering the North Atlantic Region from the Atlantic OCS tracts and foreign sources. This would require the development of between nine and ten refineries in the Region, each with a capacity of 200,000 barrels of oil per day. Such an increase in refinery capacity would stimulate the development of up to 13 petro@hewdcal complexes in the Region.2 In addition 6.6 MB/D of crude oil storage capacity would be required.3 Table 111-6 identifies some selected impacts from petrochemical com- plexes and storage tanks. Impacts associated with refineries can be found in Table 111-5. Impacts and requirements for the remaining OCS induced facilities can be found in Tables 111-3 and 111-4. 2Arthur D. Little, Inc. report to the Council on Environmental Quality Potential Onshore Effects of Deepwater Oil Terminal Related Industrial OeVelopment Vol. II East Coa,st, pp. 2-14. 31bid. 68 FIGURE 111-4 FUTURE OEM NO FOR PETROLEUM AND PETROLEUM REL'_ED c.!'@CILITTES __SC @NARIC 3 Assumptions: 1) Refinery Capacity: Increase by 1.9 MS/D in 'he North Atlantic Region induced by OCS oil and growth in market demand 2) Refined Products Facilities Capacity: Remains Constant Regional Facility Demand Refineries - 1.9 MB/D Capacity Petrochemical Complexes - 13 Crude Oil Storage - 6.6 il.IB/D CURRENT 6 LEVEL OF @Number of Capacity of OCS CRUDE Facilities Likely to Locate IMPORTS Middlesex County @S Low High Impact I mpac t Gas Process- ing Plants 0 3 U-1 C_ i / / INCREASE IN CRUDE Partial Pro- IMPORTS BY cessing L 1.9 MB/D Plants 0 .37MB/O Capacity Tank Farms 0 2 U_ C) Pipeline Landfalls 0 2 C) 3 Mari ne Terminals 0 1 Permanent CURRENT Support B,ise 0 2 LEVEL OF REFINED Pipeline PRODUCTS Support Base 0 1 REMAINS Platform CONSTANT Support Base 0 1 1976 1985 2000 YEAR 69 @ U RR I @LE El P FI@ PRO DI P ,F MA CONS_ TABLE 111-6 SELECTED IMPACTS ASSOCIATED WITH PETROCHEMICAL COMPLEXES AND STORAGE TANKS For 0-13 Petrochemical complexes* Employment Potable Water Demand Environmental Impacts 0-41,500 0-250 mgd using present Air quality wastewater treatment Water quality technology Solid waste 0-162 mgd using advanced Noise wastewater treatment technology --------------------------------------------------------------------------- For Storage Tanks: Employment Water Demand Environmental Impacts NA NA Air quality Water quality NA = Not Available *Source: Arthur D. Little, Inc. report to the Council on Environmental Quality, Potential Onshore Effects of Deepwater Oil Terminal-Related Industrial Development, Vol. II East Coast. 70 IV. DEVELOPMENT OPPORTUNITIES FOR OCS AND ENERGY FACILITIES The final report of the Middlesex County Planning Board on energy and OCS facilit y development will include an assessment of the suitability of specific sites and/or areas in Middlesex County for the development and operation of OCS-related facilities. These judgements of suitability will be based on a balancing of the economic, social and environmental costs and benefits of facility development. They will also be based on a con- sideration of the existing legal and pol-itical constraints on facility development. However, before this suitability assessment is undertaken, an analysis must be made of the specific sites and/or areas in Middlesex County that might be characterized as devetopmemt oppo,@,ttv@@t@es. Devetcprle@?'t oppo,@tunit,@e,s are the sites and/or areas that satisfy industrial siting criteria or physical siting requirements for OCS and energy facilities. These industrial siting criteria include: I. Transportation Access A. Major highways (truck access) B. Railroads C. Ocean Access 1. adequate channel depth 2. channel clearance IL Land A . Size of tract B. Vacant or redevelopable C . Industrially zoned 2 D. Environmental Features III. Wharf Space existing, developable I V. Water Supply brackish, potable V@ Electricity Demands mppendix I is an outline of the final draft report. Chapter IX will include the suitability assessment and it will be based on information from Chapters VI, VII, VIII. 2See the map of Industrial Zoned Land in Appendix B. 71 There are various general areas in Middlesex County that meet the industrial siting criteria of (1) transportation access (road, rail and ocean)", (2) proximity to the Baltimore Canyon, (3) land zoned for heavy industry (4) water supply and (5) electric power for service and support bases, repair and maintenance yards,4 and pipe coating yards.5 These areas border on the Arthur Kill and the Raritan River and are shown in figure IV-5. It should be noted that these are general areas and are not specific sites meeting every siting criteria. Some of the land in these areas is vacant and is suitable for development of wharves. The planning board will conduct investigations to determine particular sites in Middlesex County that meet all of the siting criteria for these and other facilities. These investigations will attempt to determine specific tracts of vacant or redevelopable land that are large enough to accommodate these facilities. jChe area inland of the Swing Railroad Bridge crossing the Raritan meet the siting criteria of channel clearance for steel platform installation support bases if horizontal clearance in excess of 130 feet is required. 4Repair and maintenance services will probably be provided by existing port facilities. If a new facility is needed, then areas along the Arthur Kill and the Raritan River will meet the criteria for a new yard serving most medium sized OCS vessels. 5Existing pipe coating yards may be able to supply,coat and store the pipe for the Baltimore Canyon pipelines. In this case, a small port facility for storage and loading and unloading of barges would be required. The siting criteria for this type of facility are met by the general areas bor- dering the Arthur Kill and the lower Raritan River. 72 A. Areas Meeting Selected Industrial Siting Criteria of Petroleum KelateTTacilities The purpose of this section is to present a preliminary analysis of the general areas in Middlesex County that meet most of the major industrial siting criteria for each of the types of petroleum-related facilities. The industrial siting criteria that have not been used 'in making this preliminary determination include: (1) the size anevacant. or redevelopable nature of the tracts of land;and (2) wharf space availability, Other imQortant 'factors affectinq a decision to build a facilitv have been considered wherpvpr thosp factors tend to limit the location of tnat type of facility. For example, partial processing plants will usually locate somewhere between oil pipelfne- landfalls and a refinery, and this factor has been taken into account in making the preliminary determination of development oppor'tu'nitfes for p'artial processing plants ( See figure IV-2). 1. Refineries The process involved in making the decisions whether and where to locate a new refinery entails multiflarous fact-ors and consider- ations. The size and complexity of a specific refinery will greatly affect its industrial siting criteria and requirements. For in- stance, a refinery with a capacity of 250,000 barrels of oil per day usually requires 1,000 to 1,500 acres of flat vacant indus- trially zoned land, rail and road transportation access, at least 10.5 million gallons of brackish water per day (MGD), and electrical power. The only areas oil industrially zoned land in Middlesex County where a refinery codld obtain 10.5 MGD of brackish water are located along the Arthur Kill and the lower Raritan River. 73 Figure IV-1 illustrates the areas meeting the siting criteria and factors of transportation access, heavy indus- trial zoning, minimum brackish water supply and electrical power for refineries with a capacity of 250,000 b-arrels of oil per day. The land in these general areas is not necessarily vacant or redevelopable. In addition, the specific zoning and site plan review regulations of various municipalities may not allow the development of refineries and some other OCS facili- ties. 2. Petrochemical Complexes The primary consideration in petrochemical plant siting is the availability of raw materials or feedstock. Historically, petrochemical plants have been dependent on the output of natural gas processing plants--natural gas liquids such as butane, pro- pane, and ethane--for feedstock material. In addition, gas itself, comprised 90% of methane, is a major raw material and fuel for petrochemical operations. More recently, crude refinery out- puts, such as naptha and gas oil, have begun constituting another major source of raw material and fuels for the petrochemical indus- try., Petrochemical industries would thus seek to locate either: (1 close to refineries and ports where napthas and crude oil could be imported; or (2) near refined product and/or natural gas pipelines. Areas in Middlesex County bordering existing natural gas and refined product pipelines can be seen on the map on page 74 FIGURE IV-1 g S-0 tt rL A@ 01 ij SELECTED CRITERIA; TRANSPORTATION ACCESS INCLUDING CHANNEL DEPTH' INDUSTRIALLY ZONED LAND MINIMUM BRACKISH WATER SUPPLY ELECTRICAL POWER FOR REFINERIES @250,000 b/d Capacity) AREAS MEETING INDUSTRIAL SITING CRITERIA - REFINERIESj 75 Petrochemical industries seeking to locate near either existing or potential refineries would seek sites in the same areas that meet the industrial siting criteria for refineries (figure IV-1). 3. Gas Processing Treatment Plants and Partial Processing__ Flants Gas processing treatment plants recover liquifiable hydro- carbons from the raw gas stream. They are usually located somewhere between the gas pipeline landfall and commercial gas transmission lines. It is most likely that these plants would locate near the Raritan Bay (See figure IV-2) to be close to gas pipeline landfalls and relatively close to commercial gas trans- mission lines. It is also quite possible, however, that gas processing treatment plants would locate on industrially zoned sites in other parts of the county. Partial processing plants remove water from the unprocessed oil well stream before it is transported to refineries for final treatment. These plants tend to locate somewhere between the oil pipeline landfall and refineries. O'@-her siting criteria of partial processing plants include: (1) rail access for trans- portation of natural gas liquids; (2) road access for transport of smaller quantities of natural gas liquids and solid waste; (3) relatively la'rge tracts of land zoned for heavy industry; (4) 200,000+ gallons of water per day; and (5) electric power. The general areas adjacent to the Rari tan River and the Arthur Ki 11 meet these basic industrial siting criteria and are relatively close to the refineries and potential sites for land-falls (See figure IV-2). 7 6 FIGURE IV-2 ....... ... . . ....... ON e'@ ef SELECTED CRITERIA: TRANSPORTATION ACCESS INDUSTRIALLY ZONED LAND PROXIMITY TO REFINERY OR GAS TRANSMISSION LINES ELECTRIC POWER FOR FOLLOWING FACILITIES: GAS PROCESSING TREATMENT PLANTS PARTIAL PROCESSING PLANTS AREAS MEETING INDUSTRIAL SITING CRITERIA - PROCESSING 77 4. Tank Farms Tank farms store crude oil or refined petroleum products before shipment to refineries or various markets. Tank farms may 1 4 be associated with refineries, pipe ines, and ma@ine terminals. a. Marine Terminal and/or Refinery Tank Farms The industrial siting criteria for tank farms assoc- iated with refineries and/or marine terminals include: (1) transportation access by rail, road and usually sea, (2) industrially zoned land, (3) small quantities of water, (4) electric power and (5) proximity of refinery or mar- ket. Figure IV-3 indicates the areas meeting these basic industrial siting criteria. This map shows that the tanks associated with the marine terminal or refinery can be located inland of the wharves of the marine terminal. b. Pipeline Tank Farms If tank iarms are associated with pipelines, then many industrially zoned va.cant and redevelopable sites throughout the County could meet the siting criteria for tank farms. The basic industrial siting criteria for tank farms associated with pipelines include: (1) proximity to pipeline, (2) transportation access by road and rail, (3) industrially zoned land, (4) small quantities of water, and (5) some electric power. If new pipelines for crude oil from the Baltimore Canyon are landed in Middlesex County then pipeline tank farms may be lo- cated on industrially zoned sites E, on or near 6See the map of Industrial Zoned Land in Appendix B. 78 FIGURE IV-3 j I OR), -s' I!, SELECTED CRITERIA@ PROXIMITY TO MARINE TERMINAL arid/or REFINERY TRANSPORTATION ACCESS P. INDUSTRIALLY ZONED LAND ELECTRIC POWER FOR TANK FARMS ASSOCIATED WITH MARINE TERMINALS OR REFINERIES AREAS MEETING INDUSTRIAL SITING. CRITERIA- MARINE TERMINAL and/or REFINERY TANK FARMS 79 Raritan Saw and rela-l'--ivelv close -t*-c. th@-2 re`4neri-s in and near Middlesex County. Other pipeline tank farms may be 'located along existing or new refined product pipelines. 5. Pipeline Landfalls Pipeline landfalls is a phrase used to describe the location where submerged gas and oil pipelines core ashore. These facilities may include a pumping station and some storage tanks. Pipeline la ndfall facilities are usually located on flat industrially zoned land on or near the ocean, bay or other body of water. No specific channel dep".-Ihs are required and therefore pipeline landfall. facilities for Baltimore Canyon pipelines may be located alcng or near the Raritan Bay or the Arthur Kill, 6. Marine Terminal Marine terminals receive and store crude oil and refined petro- leurn products and transfer them to refineries and/or various mar- kets. They usually have special navigational requirements such as turning area, navigational aids and sheltered harbors,depending on the size of the tankers and barges expected to arrive at the 4 terminal. Other Industrial siting criteria of marine terminals include: (1) proximity to refineries (if crude oil is received), 4 (2) industrially zoned land, (3) a minimal amount water; and (4) some electrical power. The general areas along the Arthur Kill and the lower Raritan River also meet the industrial siting criteria for marine terminals. However, the areas inland of! the Swing Railroad 7 See the 1977 Energy Facilities Map (page 9 ) for an indication of exist Ing oil pipelines and pipeline terminals. 80 FIGURE IV-4 L7111 "K le r J, .. . ... ........ SELECTED CRITERIA: TRANSPORTATION ACCESS INDUSTRIALLY ZONED LAND INCLUDING CHANNEL DEPTH ELECTRIC POWER FOR MAR;NE TERMINALS SERVICING BARGES & S,@,@ALL TANKERS SERVICING BARGES & MID- S117ED TANKERS S AREAS MEETING INDUSTRIAL SITING CRITERIA MARINE TERMINAL Bridge crossing the Raritan between South Amboy and Perth Amboy can only meet the siting criteria for marine terminals serviced by small tankers and barges. This is due to the limited hori- zontal clearance (132 feet) of the Swing Bridge. Figure !V-4 indicates these general areas meeting the industrial siting criteria. 7. Service and Support Bases, Repair and Mai.nt-enance Yards a n d @ :1 @p @eo a t @in g- @Ya__r _J s There are two types of service bases--temporary bases and permanent bases- and two types of support bases--steel platform installation support bases and pipeline installation support bases. Repair and maintenance yards and pipe coating yards have siting criteria and physical requirements that are very similar to service and support bases. All of these facilities require transportation access by roads, rail and sea. The channels to the sea must have depths of at least 15 to 20 feet. These bases are usually located within 200 miles of the offshore drilling tracts. 8 /2 FIGURE'IV-5 "N Z@ pg A _0 N IOWA 7 7" SELECTED CRITERIA: TRANSPORTATION ACCESS INCLUDING CHANNEL DEPTH INDUSTRIALLY ZONED LAND WATER SUPPLY ELECTRIC POWER FOR FOLLOWING FACILITIES TEMPORARY & PERMANENT SERVICE BASES SUPPORT BASES FOR PIPELINE & PLATFORM INSTALLATAION. REPAIR & MAINTENANCE YARDS PIPE COATING YARDS AREAS MEETING INDUSTRIAL, SITING CRITERIA- SERVICE BASES &SUPPORT BASES 83 APPENDIX A MIDDLESEX COUNTY OCS AND ENERGY FACILITIES PLANNING PRELIMINARY TABLE OF CONTENTS FOR FINAL REPORT Abstract II. Introduction A. The Study of Offshore Oil and Coastal Energy Facilities B. The Audience C. Statement of Purpose D. Ojbectives III. Existing Energy Facilities: Components in a Regional Pattern of Energy Supply A. The Current Pattern of Petroleum Supply 1. The United States 2. The North Atlantic Region 3. Inventory -of Facilities in Middlesex County f 4 a. marine terminals (re ined products and crude oil) b. pipelines and pipeline terminals c. refineries d. petrochemical industry B. The Current Pattern of Natural Gas Supply 1. Sources of supply 2. Means of transport 3. Demand 4. Inventory of existing facilities a) major interstate pipelines companies b) public utilities 1) distribution pipelines 2) synthetic natural gas plants (SNG) 3) liquified natural gas storage and transfer facilities (LNG) C. The Curren", Pattern of Electrical Energy 1. generating s.tat.-ions .. 2. transmission and distribution facilities D. Research-,Nuclea'r Test Reactor Facility E. Summary Statement: An Overview of the Inventory of Energy Facilities in Middlesex County A-1 IV. Outercontinental Shelf Oil and Gas Activities A. Phases of OCS Oil and Gas Activity B. Description, Impacts and Requirements of Onshore Facilities 1. Temporary Service Base 2. Permanent Service Bases 3. Steel Platform installation Support Bases 4. Repair and Maintenance Yards 5. Transportation 6. Pipeline Installation Support Bases 7. Partial Processing Plants 8. Gas Processing Treatment Plants 9. Refineries 10. Platform Fabrication Yards 11. Pipe Coating Yards 12. Tank Farms C. The Potential for OCS Related Facilities Locating inMiddlesex County 1. High development projection 2. Medium development projection 3. Low development projection 4.. Summary V. The Demand for Energy and Energy Facilities A. Projections of Future Energy Demands B. The Potential for new Growth in Energy Facilities 1. Petroleum-related facilities a. refineries, petrochemical industry, marine terminals, pipelines and pipeline terminals b. deepwater port c. offshore oil industries 2. Gas facilities a. liquified natural gas b. synthetic natural gas lFacilities Electrical energy 4. Research facilities A-2 i t4 VI. Development Opportunities for OCS and Energy Facil les A. Identification of Industrial Siting Criteria 1. Transportation access a. major highv/ays (truck access) b. railroads c. sea 1) adequate channel depth 2) channel clearance 2. Land a. size of tract b. vacant or redevelopable c. industrial zoning d. environmental features 3. Wharf Space existing, developable 4. Water Supply brackish, potable B. Define Sites or Areas Meeting Siting Criteria VII. The Impacts from OCS and Energy Facilities A. Economic Impacts 1. Direct effects a. new employment b. capital investment c. tax revenues 2. Indirect effects a. aggregate income effect's b. indirect employment 3. 'Ibduced effects - employment B. Social Impacts 1. Water Supply system 2. Sewe@age 3. Transportation 4. Housing 5. Educational needs 6. Other Public facilities and services A-3 C. Environmental Impacts 1. Air emissions 2. Waste water effluent 3. Noise 4. Solid, toxic, and hazardous wastes 5. Environmentally sen'sitive are-as a. wetlands b. floodplains c. aquifer outcrop areas VIII. Constraints on Development of OCS and Energy Facilities A. Legal Constraints 1. Local land use regulations 2. State and Federal regulations a. air quality b. water quality c. wetlands d. riparian e. floodplains f. noise g. land use 1) CAFRA 2) Coastal Zone Management Program B. Political Constraints 1. Public bpinion and values 2. Local government policy and preferences C. Land Use Compatibility Compatibility with existing uses (health, safety, welfare) a. residential b. commercial c. industrial IX. Suitability Assessment A. Consider the compatibility of OCS and energy facility development with other coastal concerns B. Assess the benefits and/or costs of OCS activity and energy facility development to county and municipalities, in terms L .C 01 employment and tax revenues A-4 C. Assess the constraints to OCS development in terms of the limitation of the land to absorb development; consider land, water and existing infra-structure D. Evaluate the -inventory and identify possible areas which might be suitable for pipeline corridors, corridor areas, OCS staging areas, storage yards, etc. E. Develop or recommend matrices, indices, etc., that would help local government to 'assess effects of OCS development X. Recommend OCS and Energy Facility Siting Policies A. Use-Location Recommendations Based on Suitability Analysis B. Design Recommendations C. Priority Recommendations XI. County Role in Coastal Energy Facility Siting A. County/State Relationships B. County/County Relationships C. County/Municipal Relationships D. County/Public Relationships XII. County View of State and National Interests in Coastal Energy Facility Siting XIII. County View of State and Federal Assistance in Coastal Energy Facility Siting XIV. Conclusion: Summary of Findings A-5 APPENDIX - B el ti; lit- ... ......... Pr@ 0 Z . .. .... ... . . MINI @A- -Taw a, ...... ... .. izito- i:::aii. ...... ...... ij* sp -7 "V A LIGHT INDUSTRY HEAVY INDUSTRY INDUSTR IAL ZON ED LAND B-1 t BIBLOGD RAPHY i A Alaska. Department of Community and Regional Affairs. Marine Service Bases for Offshore Oil Development, by Alaska Consultants, Inc. June, 1976. Arthur D. Little, Inc., Environmental Work Book of the Refined Petroleum Products Pipeline System Between Linden, New Jersey and Macungie, Pennsylvania. Report to Buckeye Pipe Line Company. Contact No. 75401. Cambridge, Mass. Arthur D. Little, Inc. 1973. Arthur D. Little, Inc., Potential Onshore Effects of Deepwater Oil Terminal-Related Industrial Development. Report to the Council on Environ- mental Quality. 4 vols. New York: Arthur D. Little, Inc. 1971. Berkshire County Regional Planning Commission. Evaluation of Power Facilities: A Reviewer's Handbook. Pttsfield, Massachusetts: Berkshire County Regional Planning Commission. 1974. Council on Environmental Quality. 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Woodward-Clyde Consultants. Mid-Atlantic Regional Study: An Assess- ment of the Onshore Effects of Offshore Oil and Gas Development. Clifton, N.J. 1975. ADDITIONAL PIPELINE MAP CONTACTS DATE DUE INFORMATION CENTER NOAA COASTAL SERVICES CENTER LIBRARY 3 6668 14107 9261