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23 February 2007


[Federal Register: February 22, 2007 (Volume 72, Number 35)]

[Notices]               

[Page 7964-7972]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr22fe07-36]                         



=======================================================================

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DEPARTMENT OF ENERGY



 

Record of Decision and Floodplain Statement of Findings: Site 

Selection for the Expansion of the Strategic Petroleum Reserve



AGENCY: Office of Fossil Energy, U.S. Department of Energy (DOE).



ACTION: Record of Decision (ROD).



-----------------------------------------------------------------------



SUMMARY: DOE has prepared an environmental impact statement (EIS) (DOE/

EIS-0385), pursuant to the National Environmental Policy Act of 1969 

(NEPA), to assess the environmental impacts associated with a proposal 

to expand the crude oil storage capacity of the Strategic Petroleum 

Reserve (SPR) from 727 million barrels (MMB) to 1 billion barrels, and 

to fill the Reserve to the full authorized volume of 1 billion barrels. 

The proposal was to develop one new storage facility and expand the 

capacity of two or three existing SPR storage facilities.

    After careful consideration of the environmental impacts of the 

alternatives, along with an evaluation of SPR distribution 

capabilities, geological technical assessments, projected costs, and 

operational impacts associated with existing commercial operations, DOE 

has decided to develop a new 160 MMB SPR storage facility at Richton 

(Mississippi), expand the storage capacity at the existing Bayou 

Choctaw (Louisiana) SPR facility by 33 MMB, expand the storage capacity 

at the existing Big Hill (Texas) SPR facility by 80 MMB, and fill the 

Reserve to 1 billion barrels of oil as authorized by Congress.

    This ROD has been prepared in accordance with the regulations of 

the Council on Environmental Quality (40 CFR Parts 1500-1508) for 

implementing NEPA and DOE's NEPA Implementing Procedures (10 CFR Part 

1021). The accompanying Floodplain Statement of Findings has been 

prepared in accordance with DOE's regulations ``Compliance with 

Floodplain and Wetland Environmental Review Requirements'' (10 CFR Part 

1022). Because the decision differs somewhat from the alternatives 

evaluated in the EIS, DOE has prepared a Supplement Analysis (SA) (DOE/

EIS-0385-SA-1) to determine whether a supplement to the final EIS is 

required. DOE has determined that the minor modification to the Bayou 

Choctaw expansion site, i.e., an increase in capacity of 33 MMB 

compared to 20 MMB as described in the final EIS, is not a substantial 

change to the proposed action that is relevant to environmental 

concerns, and there are no significant new circumstances or information 

relevant to environmental concerns and bearing on the proposed action 

or its impacts, within the meaning of 40 CFR 1502.9(c)(1) and 10 CFR 

1021.314(c). Therefore, a supplement to the SPR final EIS is not 

needed.



ADDRESSES: The final EIS is available on the DOE NEPA Web site at 

http://www.eh.doe.gov/nepa/documentspub.html and on the project's Web site at http://www.fossil.energy.gov/programs/reserves/spr/expansion-



.energy.gov/programs/reserves/spr/expansion-



near future. Copies of the final EIS and this ROD and SA may be 

requested by contacting Donald Silawsky at the Office of Petroleum 

Reserves (FE-47), U.S. Department of Energy, 1000 Independence Avenue, 

SW., Washington, DC 20585, by telephone at 202-586-1892, by facsimile 

at 202-586-4446, or by electronic mail at donald.silawsky@hq.doe.gov.



FOR FURTHER INFORMATION CONTACT: For further information on the site 

selection for the expansion of the Strategic Petroleum Reserve, contact 

David Johnson at the Office of Petroleum Reserves (FE-42), U.S. 

Department of Energy, 1000 Independence Avenue, SW., Washington, DC 

20585, by telephone at 202-586-4733, by facsimile at 202-586-7919, or 

by electronic mail at david.johnson@hq.doe.gov. For general information 

on the DOE NEPA process, contact Carol Borgstrom, Director, Office of 

NEPA Policy and Compliance (GC-20), U.S. Department of Energy, 1000



[[Page 7965]]



Independence Avenue, SW., Washington, DC 20585, by telephone at 202-

586-4600, or leave a message at 800-472-2756.



SUPPLEMENTARY INFORMATION:



Purpose and Need for Agency Action



    On August 8, 2005, the President signed the Energy Policy Act of 

2005 (EPACT, Pub. L. 109-58). Section 303 of EPACT states that: ``Not 

later than 1 year after the date of enactment of this Act, the 

Secretary shall complete a proceeding to select, from sites that the 

Secretary has previously studied, sites necessary to enable acquisition 

by the Secretary of the full authorized volume of the Strategic 

Petroleum Reserve.''

    EPACT Section 301(e) directs the Secretary to ``* * * acquire 

petroleum in quantities sufficient to fill * * *'' the SPR to 1 billion 

barrels, the capacity of the SPR authorized by the Energy Policy and 

Conservation Act. Thus, the purpose and need for agency action is to 

select and develop sites necessary to add 273 MMB of new storage 

capacity to the SPR, so that SPR capacity can be expanded from 727 MMB 

to 1 billion barrels.

    On January 23, 2007, the President proposed an expansion of the SPR 

to 1.5 billion barrels. Any DOE proposal in this regard, however, is 

independent of the current expansion to 1 billion barrels and would be 

subject to a separate NEPA review process.



NEPA Review



    DOE determined that the proposed SPR site selection and expansion 

constitute a major Federal action that may have a significant impact on 

the environment within the meaning of NEPA. For this reason, DOE 

prepared an EIS, Site Selection for the Expansion of the Strategic 

Petroleum Reserve Final Environmental Impact Statement (DOE/EIS-0385). 

DOE published a Notice of Intent to Prepare an EIS on September 1, 2005 

(70 FR 52088), and held four public scoping meetings. Copies of the 

comment letters received during the scoping period and complete public 

scoping meeting transcripts are available at http://www.fossil.energy.gov/programs/reserves/spr/expansion-eis.html

.



    DOE filed the draft EIS with the Environmental Protection Agency 

(EPA) on May 19, 2006. EPA published a Notice of Availability (NOA) in 

the Federal Register on May 26, 2006 (71 FR 30400), starting the 45-day 

public comment period that ended on July 10, 2006. DOE considered all 

comments in preparing the final EIS, which was filed with EPA on 

December 8, 2006. Copies of the comment letters and oral testimony 

received during the public comment period are available at the Internet 

site listed above. The comments and DOE's responses are also set forth 

in the final EIS.

    The EPA published a NOA of the final EIS in the Federal Register on 

December 15, 2006 (71 FR 75540). As discussed further below, DOE 

prepared an SA, Supplement Analysis to the Site Selection for the 

Expansion of the Strategic Petroleum Reserve Final Environmental Impact 

Statement (DOE/EIS-0385-SA-1), to address a minor modification to the 

Bayou Choctaw expansion site, i.e., an increase in capacity of 33 MMB 

compared to 20 MMB discussed in the final EIS. DOE determined that a 

supplement to the final EIS is not required.



Proposed Action



    DOE's proposed action is to develop one new site, expand capacity 

at two or three existing sites, and fill the SPR to its full authorized 

volume of 1 billion barrels. Storage capacity would be developed by 

solution mining of underground storage caverns in salt domes and 

disposing of the resulting salt brine by ocean discharge or underground 

injection. New pipelines, marine terminal facilities, and other 

infrastructure would also be required. Proposed construction and 

operation activities include clearing and preparing sites; constructing 

pipelines and facilities for raw water intake, disposing of brine, and 

distributing crude oil; constructing transmission lines to provide 

electrical power to the sites; and constructing or augmenting support 

buildings and other facilities.



Alternatives



    In developing the range of reasonable alternatives, DOE first 

considered expansions of three existing storage sites, which would 

capitalize on existing site infrastructure and operations and thereby 

minimize development time and construction costs. DOE, however, cannot 

reach its goal of 273 MMB of additional storage capacity by expanding 

only at existing sites. Therefore, the alternatives considered are a 

combination of one new site and two or three expansion sites, as shown 

in the table below.



                                   Alternatives Considered in Final EIS and SA

----------------------------------------------------------------------------------------------------------------

                                             Epansion sites and added

     New sites and capacity analyzed                 capacity                      Total new capacity*

----------------------------------------------------------------------------------------------------------------

Bruinsburg, MS (160 MMB).................  113 MMB a...................  273 MMB or

Chacahoula, LA (160 MMB).................  Bayou Choctaw (33 MMB)......

                                           Big Hill (80 MMB) OR........

Richton, MS (160 MMB)....................  115 MMB b...................  275 MMB or

                                           Bayou Choctaw (20 MMB)......

                                           Big Hill (80 MMB)...........

                                           West Hackberry (15 MMB) OR..

Stratton Ridge, TX (160 MMB).............  116 MMB b...................  276 MMB.

                                           Bayou Choctaw (20 MMB)......

                                           Big Hill (96 MMB)...........

No-action alternative....................  None........................  None.

----------------------------------------------------------------------------------------------------------------

* Based on the proposed action for this EIS, DOE would not fill the SPR beyond 1 billion barrels if it developed

  more than 273 MMB of new capacity.

a Alternative considered in SA.

b Alternative considered in final EIS.



    A brief description of each new site and expansion site is below:



Potential New Sites and Associated Infrastructure



    As required by EPACT Section 303, DOE limited its review of 

potential new sites for expansion of the SPR to: (1) sites that DOE 

addressed in a 1992 draft EIS for site expansion (DOE/EIS-0165-D); and 

(2) sites proposed by a state in



[[Page 7966]]



which DOE has previously studied a site. Five sites met those 

conditions and were considered in the draft EIS: Richton, MS, and 

Stratton Ridge, TX, which were addressed in the 1992 draft EIS; 

Chacahoula and Clovelly, LA, which the Governor of Louisiana requested 

that the Secretary of Energy consider; and Bruinsburg, MS, which the 

Governor of Mississippi requested that the Secretary of Energy 

consider.

    Subsequent to the publication of the draft EIS, DOE determined that 

development of a new SPR site at the Louisiana Offshore Oil Port's 

(LOOP) Clovelly facility was not feasible because of geotechnical 

issues and thus is not a reasonable alternative. LOOP's development on 

the salt dome and the small size of the dome required that DOE propose 

placing new SPR caverns below and in between Clovelly's existing 

caverns. DOE found that this configuration presented several risk 

factors to the integrity of the Clovelly caverns and infrastructure and 

overall operation of the proposed site. DOE therefore removed the site 

from detailed consideration in the final EIS.

    Sandia National Laboratories completed a Geological Technical 

Assessment (Sandia Assessment) of the Bruinsburg salt dome just before 

the final EIS was published that indicated that the salt dome may not 

be able to provide the needed storage capability; however, DOE retained 

it as a potential new site in the final EIS because DOE needed time to 

further analyze the results of the study. See below for additional 

information regarding the Bruinsburg site and the Sandia Assessment.



Bruinsburg, MS



    The Bruinsburg salt dome is located in Claiborne County, MS, 10 

miles (16 kilometers) west of the town of Port Gibson and 40 miles (64 

kilometers) southwest of the City of Vicksburg. The proposed storage 

site of approximately 266 acres (108 hectares) encompasses a cypress 

swamp, cotton fields, forested areas, and a bluff overlooking the 

Mississippi River. The infrastructure associated with the Bruinsburg 

storage site would include new terminals with a tank farm at 

Peetsville, MS, and Anchorage, LA. Water for cavern development, 

maintenance, and drawdown would come from the Mississippi River.

    The Sandia Assessment is based on a comprehensive evaluation of all 

data readily available from both published and oil-industry sources. 

These data are from well and seismic studies and include data compiled 

by the Mississippi Department of Environmental Quality, Office of 

Geology, as well as proprietary seismic data. In addition, Sandia 

contracted for two new seismic survey lines on the Bruinsburg salt dome 

in order to define the extent of the salt formation available for 

cavern development. DOE has analyzed the results of the Sandia 

Assessment and concluded that the Bruinsburg salt dome only has the 

capacity to store up to 70 MMB of oil, which is less than the 160 MMB 

capacity required.



Chacahoula, LA



    The Chacahoula salt dome site is located 40 miles (64 kilometers) 

north of the Gulf of Mexico in northwestern Lafourche Parish, southwest 

of Thibodaux, LA. The proposed storage site of approximately 227 acres 

(92 hectares) lies largely underwater in wetlands. No new terminals 

would be required for this proposed new site since the terminal(s) 

already exist and the current distribution capacity is sufficient to 

handle the potential increase in oil storage and distribution 

associated with the Chacahoula site. Water for cavern development, 

maintenance, and drawdown would come from the Intracoastal Waterway.



Richton, MS



    The Richton salt dome is located in northeastern Perry County, MS, 

18 miles (29 kilometers) east of Hattiesburg, MS. The proposed storage 

site of approximately 238 acres (96 hectares) is comprised of an 

actively managed pine plantation with a small emergent wetland area. 

The infrastructure associated with the Richton storage site would 

include new terminals with a tank farm at Liberty, MS, and Pascagoula, 

MS. Water for cavern development, maintenance, and drawdown would come 

from both the Leaf River and the Gulf of Mexico at Pascagoula.



Stratton Ridge, TX



    The Stratton Ridge salt dome is located in Brazoria County, TX, 3 

miles (4.8 kilometers) east of Lake Jackson-Angleton, TX. The proposed 

storage site of approximately 269 acres (109 hectares) is currently 

used for cattle ranching and has some forested wetlands. The 

infrastructure associated with the Stratton Ridge storage site would 

include a new terminal with a tank farm in Texas City, TX. Water for 

cavern development, maintenance, and drawdown would come from the 

Intracoastal Waterway.



Potential Expansion Sites and Associated Infrastructure



Bayou Choctaw, LA



    The Bayou Choctaw storage site occupies a 356-acre (144-hectare) 

site in Iberville Parish, LA, about 12 miles (19 kilometers) southwest 

of Baton Rouge. The Mississippi River is located about 4 miles (6.4 

kilometers) east of the salt dome, and the Intracoastal Waterway is 

about 0.5 miles (0.8 kilometers) to the west. The general area is 

swampy with an elevation ranging from less than 5 feet (1.5 meters) to 

more than 10 feet (3 meters) above mean sea level. Water for cavern 

development, maintenance, and drawdown would come from the Intracoastal 

Waterway.

    In the final EIS, DOE considered the expansion of the Bayou Choctaw 

site by 20 MMB, which would involve the development of two new 10 MMB 

caverns within the existing boundaries of the facility, a 0.6-mile 

(0.9-kilometer) brine disposal pipeline, and a 96-acre (39-hectare) 

brine injection field. In the SA, DOE considered the expansion of the 

Bayou Choctaw site by 33 MMB, which would involve the development of 

two new 11.5 MMB caverns within the existing boundaries of the facility 

and use of an existing commercial cavern. The length of the brine 

disposal pipeline and the size of the brine disposal injection field 

would be the same if Bayou Choctaw is expanded to 20 MMB or 33 MMB. 

Expansion beyond 33 MMB is limited due to the size of the salt dome.



Big Hill, TX



    The Big Hill SPR storage site is located in Jefferson County, TX, 

17 miles (27 kilometers) southwest of Port Arthur. The existing site 

occupies approximately 250 acres (101 hectares). The surrounding area 

is predominantly rural with agricultural production as the primary land 

use. Water for cavern development, maintenance, and drawdown would come 

from the Intracoastal Waterway. The Big Hill storage site has a current 

capacity of 170 MMB and could be expanded by acquiring land and 

developing several additional caverns.



West Hackberry, LA



    The West Hackberry SPR storage site occupies a 565-acre (229-

hectare) site in Cameron and Calcasieu Parishes in southwestern 

Louisiana. The site is located approximately 20 miles (32 kilometers) 

southwest of the city of Lake Charles and 16 miles (26 kilometers) 

north of the Gulf of Mexico. The area is predominantly disturbed 

grassland habitat. No new infrastructure would be



[[Page 7967]]



needed for this site to be expanded. The West Hackberry storage site 

has a current capacity of 227 MMB and could also be expanded by 

acquiring land and developing or acquiring additional caverns. However, 

the West Hackberry site no longer has the offshore brine disposal 

system necessary to support a cavern development operation. There are 

three existing commercial caverns on the salt dome that could be 

acquired to increase the site capacity by 15 MMB, to a total capacity 

of 242 MMB, without developing new caverns. Therefore, DOE has 

considered a maximum potential expansion of 15 MMB at the West 

Hackberry site.



Preferred Alternative



    The final EIS identifies the Richton alternative with expansion of 

Bayou Choctaw, Big Hill, and West Hackberry as the Preferred 

Alternative. The SA revised the Preferred Alternative to be the Richton 

alternative with expansion of Bayou Choctaw and Big Hill.



Analysis of Environmental Impacts



    In making its decision, DOE considered the environmental impacts 

that could occur from the construction and operation of a new SPR 

storage site and the expansion of two or three of the existing sites. 

The final EIS presents the environmental impacts for 10 resource areas. 

Of these 10 areas, the largest potential impacts are to land use, water 

resources, biological resources, and cultural resources. Although 

impacts occur in other resource areas, these impacts are smaller and of 

similar magnitude across all alternatives. Below is a brief summary of 

the impacts associated with these four resource areas for each 

alternative. For each alternative, there is a discussion of each new 

site and the expansion sites associated with each new site.



Land Use



    Bruinsburg Alternatives: There is a potential land use conflict for 

the Bruinsburg site where the expansion of an existing pipeline route 

would cross the Natchez Trace National Scenic Trail, Natchez Trace 

Parkway, and the proclamation boundary of the Homochitto National 

Forest.

    There are no potential land use conflicts at the Bayou Choctaw and 

Big Hill expansions sites. At West Hackberry, there were no land use 

conflicts at the time that the final EIS was issued because there were 

no ongoing commercial operations in the caverns in the West Hackberry 

salt dome. Comments on the final EIS indicate that Sempra Pipeline and 

Storage Corporation plans to use the caverns for commercial operations. 

This potential conflict is discussed further below in the Comments 

Received on the Final EIS and Basis for Decision sections.

    Chacahoula Alternatives: There are no potential land use conflicts 

for the Chacahoula site. Potential land use conflicts at the expansion 

sites are the same as described for the Bruinsburg alternatives.

    Richton Alternatives: For the Richton site, the terminal, tank 

farm, refurbished docks, and raw water intake structure at Pascagoula 

would be at the former Naval Station Pascagoula, a Base Realignment and 

Closure site for which future uses have not been determined. Potential 

land use conflicts at the expansion sites are the same as described for 

the Bruinsburg alternatives.

    Stratton Ridge Alternatives: The proposed Stratton Ridge site would 

have potential land use conflicts with Dow Chemical Company's use of 

salt from the Stratton Ridge salt dome and where a corridor containing 

a raw water intake pipeline, brine disposal pipelines, and two power 

lines would cross the Brazoria National Wildlife Refuge and privately 

owned land in the Refuge's proclamation area. In addition, the crude 

oil pipeline would cross the Refuge in an existing pipeline rights-of-

way. Potential land use conflicts at the expansion sites are the same 

as described for the Bruinsburg alternatives.



Water Resources



    Bruinsburg Alternatives: Construction and operation of the 

Bruinsburg site and associated infrastructure would potentially affect 

35 water bodies. Water for cavern development, maintenance, and 

drawdown would come from the Mississippi River, and would not have a 

significant impact on water resources.

    Construction and operation associated with the expansion of the 

Bayou Choctaw, Big Hill, and West Hackberry sites and associated 

infrastructure would potentially affect 12, 4, and 3 water bodies, 

respectively. Water for cavern development, maintenance, and drawdown 

at Bayou Choctaw would come from Cavern Lake, which is fed by the 

Intracoastal Waterway. Water for cavern development, maintenance, and 

drawdown at Big Hill would come from the Intracoastal Waterway. Water 

for maintenance and drawdown at West Hackberry would come from the 

Intracoastal Waterway. None of these uses of water would have a 

significant impact on water resources. Since DOE would acquire caverns 

at West Hackberry, construction of new caverns would not occur at this 

site. A small increase in the size of the security buffer around the 

site would be needed, but this would not have a significant impact on 

water resources.

    Chacahoula Alternatives: Construction and operation of the 

Chacahoula site and associated infrastructure would potentially affect 

18 water bodies. Water for cavern development, maintenance, and 

drawdown would come from the Intracoastal Waterway, which would not 

have a significant impact on water resources. Impacts on water 

resources at the expansion sites are the same as described for the 

Bruinsburg alternatives.

    Richton Alternatives: Construction and operation of the Richton 

site and associated infrastructure would potentially affect 63 water 

bodies. The primary raw water source for cavern development, 

maintenance, and drawdown would be the Leaf River, which has a highly 

variable flow. A secondary raw water intake system, presented in the 

final EIS, would withdraw water from the Gulf of Mexico at Pascagoula 

and transport it to the Richton storage site for cavern development, 

maintenance, and drawdown during low flow conditions in the Leaf River. 

If low flow conditions exist in the Leaf River during a drawdown event 

for a Presidentially declared national emergency, DOE would withdraw 

water from the Gulf of Mexico and from the Leaf River to reach the 

necessary distribution rate. DOE would not withdraw water below the 

minimum instream flow that is protective of aquatic resources, except 

for a drawdown for a Presidentially declared national emergency. The 

U.S. Fish and Wildlife Service (USFWS) would establish the minimum 

instream flow during DOE's consultation with USFWS under Section 7 of 

the Endangered Species Act; the Mississippi Natural Heritage Program 

(MS NHP) would provide input during this consultation. Impacts on water 

resources at the expansion sites are the same as described for the 

Bruinsburg alternatives.

    Stratton Ridge Alternatives: Construction and operation of the 

Stratton Ridge site and associated infrastructure would potentially 

affect 17 water bodies. Water for cavern development, maintenance, and 

drawdown would come from the Intracoastal Waterway, which would not 

have a significant impact on water resources. Impacts on water 

resources at the expansion sites are the same as described for the 

Bruinsburg alternatives.



[[Page 7968]]



Biological Resources



    This summary of impacts to biological resources considers Federally 

threatened and endangered species, essential fish habitat (EFH), and 

wetlands. Impacts to these resources at expansion sites are common to 

all alternatives and are described first, separately from the 

descriptions of impacts of the alternatives, which focus on impacts at 

the new sites.

    Expansion at existing sites would not affect any Federally 

threatened or endangered species. The Bayou Choctaw and West Hackberry 

expansions would not affect EFH. The Big Hill expansion would cause a 

temporary impact to about five acres of EFH due to pipeline 

construction.

    The discussions below regarding total wetland acres affected for 

the new site alternatives include the wetland impacts associated with 

the expansion sites, in all cases including expansion at West Hackberry 

(without which five fewer acres of wetlands would be affected).

    Expansion sites: Construction and operation of the Bayou Choctaw 

expansion site would potentially affect 34 acres of wetlands. About 24 

acres of ecologically important forested wetlands would be filled and 

about 3 acres of forested wetlands would be permanently converted to 

emergent wetland. Construction and operation of the Big Hill expansion 

site would potentially affect 189 acres of wetlands. About 9 acres of 

ecologically important forested wetlands would be filled and about 1 

acre of forested wetlands would be permanently converted to emergent 

wetland. Expanding the West Hackberry site would convert 5 acres of 

palustrine scrub-shrub wetlands to emergent wetlands.

    Bruinsburg Alternatives: The Bruinsburg site and associated 

infrastructure may affect the fat pocketbook mussel and the pallid 

sturgeon, both of which are Federally endangered species. The site and 

associated infrastructure would not affect EFH.

    The Bruinsburg alternatives would potentially affect about 708 

acres (287 hectares) of wetlands. This includes a permanent loss 

through filling of about 156 acres (63 hectares) and a permanent 

conversion to emergent wetlands of about 123 acres (50 hectares) of 

relatively rare and ecologically important forested wetlands. About 118 

acres (48 hectares) of forested wetlands would be disturbed and cleared 

by construction activities within the temporary easement of the rights-

of-way during construction. The total affected acreage includes the 

three expansion sites described above.

    Chacahoula Alternatives: The Chacahoula site and associated 

infrastructure may affect the bald eagle, a Federal threatened species 

that is proposed for de-listing, and the brown pelican, a Federal 

endangered species. Chacahoula would affect about 1,067 acres of EFH, 

for the most part a temporary impact due to pipeline construction.

    The Chacahoula alternatives would potentially affect 2,502 acres 

(1,013 hectares) of wetlands. About 182 acres (74 hectares) of 

ecologically important forested wetlands would be filled and about 699 

acres (283 hectares) of forested wetlands would be permanently 

converted to emergent wetland. About 505 acres (204 hectares) of 

forested wetlands would be disturbed and cleared by construction 

activities within the temporary easement of the rights-of-way. The 

total affected acreage includes the three expansion sites described 

above.

    Richton Alternatives: The Richton site and associated 

infrastructure may affect two Federal listed species (the yellow-

blotched map turtle and the Gulf sturgeon) and a Federal candidate 

species (the pearl darter, considered by DOE as a ``listed species''). 

Based on comments from and consultation with USFWS and MS NHP, the 

withdrawal of water from the Leaf River may have an adverse effect on 

the yellow-blotched map turtle, Gulf sturgeon, and the pearl darter. 

The Leaf River and Mississippi Sound are designated critical habitat 

for the Gulf sturgeon. Development of the Richton site would 

temporarily affect about 183 acres of EFH due to construction, and fill 

an additional 43 acres of EFH for a new terminal and raw water intake 

structure at Pascagoula. Brine pipeline construction may affect 

submerged aquatic vegetation.

    The Richton alternatives would potentially affect 1,557 acres (630 

hectares) of wetlands. The majority of the wetland areas affected (more 

than 1,400 acres [583 hectares]) by the Richton alternatives would be 

located in the long pipeline rights-of-way, which total over 200 miles 

and which pass through some forested and emergent wetlands. The Richton 

alternatives would permanently fill about 59 acres (24 hectares) of 

forested wetlands and about 295 acres (119 hectares) of forested 

wetlands would be permanently converted to emergent wetlands. About 506 

acres (205 hectares) of forested wetlands would be disturbed and 

cleared by construction activities within the temporary easement of the 

rights-of-way. The total affected acreage includes the three expansion 

sites described above.

    Stratton Ridge Alternatives: The Stratton Ridge site and associated 

infrastructure may affect the bald eagle, a Federal threatened species 

that is proposed for de-listing. Seventeen acres of EFH would be 

permanently affected due to the construction and operation of a raw 

water intake structure.

    The Stratton Ridge alternatives would potentially affect 841 acres 

(349 hectares) of wetlands. This includes a permanent loss through 

filling of 227 acres (92 hectares) of relatively rare and ecologically 

important forested wetlands. About 70 acres (28 hectares) of forested 

wetlands would be permanently converted to emergent wetlands. About 9 

acres (4 hectares) of forested wetlands would be disturbed and cleared 

by construction activities within the temporary easement of the rights-

of-way. The total affected acreage includes the three expansion sites 

described above in detail for the Bruinsburg alternatives.



Cultural Resources



    The proposed action would have the potential to damage or destroy 

archeological sites, Native American cultural sites, or historic 

buildings or structures; or to change the characteristics of a property 

that would diminish qualities that contribute to its historic 

significance or cultural importance. Below are the potential impacts 

for each alternative:

    Bruinsburg Alternatives: SPR development at the Bruinsburg site 

could result in potential adverse effects on the historic setting of 

the Civil War landing of the Union Army in Mississippi and an 

associated route of troop movements in an area that could become 

eligible for the National Register of Historic Places as a core study 

area. A portion of the Bruinsburg site is likely to contain 

archeological remains of troop presence, and remains of at least one of 

the ships that sank during the invasion is likely to lie northwest of 

the facility boundary. There would be possible effects to Native 

American sites at Bayou Choctaw, Big Hill, and West Hackberry. As 

described in the final EIS, these adverse effects could be mitigated 

through measures such as data recovery from an archaeological site, 

preparation of education materials for the public, or use of vegetation 

to screen project facilities from visitors in the historic properties.

    Chacahoula Alternatives: There would be likely adverse effects to 

Native American and historic sites along Chacahoula pipeline rights-of-

way that could be mitigated. There would be



[[Page 7969]]



possible effects to Native American sites at Bayou Choctaw, Big Hill, 

and West Hackberry. These adverse effects could be mitigated.

    Richton Alternatives: There are likely adverse effects to Native 

American archaeological sites within the Richton storage site and along 

Richton pipeline rights-of-way that could be mitigated. There would be 

possible effects to Native American sites at Bayou Choctaw, Big Hill, 

and West Hackberry. These effects could be mitigated.

    Stratton Ridge Alternatives: There are likely adverse effects to 

Native American archaeological sites within the Stratton Ridge storage 

site and along Stratton Ridge pipeline rights-of-way that could be 

mitigated. There would be possible effects to Native American sites at 

Bayou Choctaw, Big Hill, and West Hackberry. These effects could be 

mitigated.



Comments Received on the Final EIS



    DOE received eight comment letters on the final EIS: three letters 

from elected officials, two from Federal agencies, two from private 

companies, and one from a property owner. Below is a brief summary of 

each comment letter and DOE's response.

    DOE received two comment letters regarding DOE's selection of 

Richton rather than Bruinsburg as its preferred new storage site. These 

comment letters were from U.S. Congressman Bennie G. Thompson, Second 

District, Mississippi, and Mr. Allen Burks of the Claiborne County 

Board of Supervisors. Congressman Thompson expressed some concerns with 

the selection of Richton and his belief that the Bruinsburg site is a 

more favorable site since it would have fewer environmental impacts and 

cost less than the Richton site. Mr. Burks requested the 

reconsideration of the Bruinsburg site because, in his view, it offers 

significant cost, environmental, operational, and distribution 

advantages over the Richton site. DOE did not select the Bruinsburg 

site for several reasons, as discussed below; however, the primary 

reason was the small size of the salt dome. As discussed above, based 

on the Sandia Assessment, DOE concluded that the Bruinsburg salt dome 

only has the capacity to store up to 70 MMB of oil, which is less than 

the 160 MMB capacity required. The Richton salt dome, on the other 

hand, is very large and can easily accommodate the planned capacity of 

160 MMB.

    Congressman Thompson also expressed concerns regarding the risk 

from hurricanes and brine disposal impacts associated with the Richton 

site. The SPR's storage of oil in underground storage caverns in salt 

formations is the safest and most secure form of storage available. The 

depth of the storage caverns and the self-sealing characteristic of the 

salt formation make salt dome storage virtually immune to natural 

disasters, such as hurricanes, and would not create a safety hazard for 

the population of Mississippi. In addition, Richton's location over 80 

miles from the Gulf coast provides a significant land mass buffer 

against potential damages from the hurricane effects to surface 

buildings and structures at the storage sites. Congressman Thompson 

also expressed concern about brine disposal in the Gulf of Mexico. 

Based on DOE's experience with the SPR, the disposal of brine in the 

Gulf of Mexico has been proven to be reliable and cost effective and 

has had no harmful impacts on the fish population.

    Mississippi Governor Haley Barbour supported the selection of 

Richton as preferred, but added that he believes Bruinsburg remains an 

important site for future consideration. Governor Barbour submitted for 

the record an independent geological evaluation prepared by Mr. Karl 

Kaufman of Valioso Petroleum Company, Inc., that questions the 

completeness and accuracy of the geological interpretations presented 

in the Sandia Assessment. Mr. Kaufman stated that the Sandia Assessment 

grossly understates the true areal extent of the Bruinsburg salt dome 

because well control data have been ignored, spatial uncertainty has 

not been resolved and additional data have not been considered. A 

second comment letter from Charles Morrison Consulting Geophysicist, 

Inc., stated that the Sandia Assessment was highly flawed and possibly 

biased in regard to the geological and geophysical conclusions reached.

    DOE and the geotechnological staff at Sandia National Laboratories 

have reviewed the concerns expressed by these geological consultants 

and have confirmed their prior geological findings, as to the 

insufficient salt dome size. The Sandia Assessment is based on a 

comprehensive evaluation of all data readily available from both 

published and oil-industry sources, including both existing and new 

well and seismic data, as discussed above.

    Sempra Pipeline and Storage Corporation submitted a comment 

informing DOE of its recent purchase of the property adjacent to the 

existing West Hackberry site, formerly owned by Dominion Natural Gas 

Storage, Inc., which DOE discussed in the final EIS. Sempra stated that 

the property is a critical part of its natural gas infrastructure 

portfolio, and is expected to be in service in April 2009. Sempra also 

stated its understanding that DOE would weigh the cost of land 

acquisition during its decisionmaking. DOE has not selected West 

Hackberry for expansion for the reasons stated below.

    A comment submitted by the owner of land that overlays a salt dome 

in Claiborne County inquired whether DOE will select other storage 

sites, in addition to the Richton site. DOE will only construct one new 

storage site in its planned expansion of the SPR to 1 billion barrels.

    The National Park Service's Natchez Trace Parkway stated its 

support for the selection of Richton as the preferred alternative 

because it would have no environmental effect on the Parkway. The U.S. 

Department of Agriculture, Natural Resources Conservation Service field 

office in Temple, TX, acknowledged and approved of the characterization 

of important farmlands for the Big Hill and Stratton Ridges sites in 

the final EIS.



Environmentally Preferable Alternative



    The Chacahoula, Bruinsburg, Richton, and Stratton Ridge 

alternatives, which include the expansion of existing storage sites, 

all have the potential for adverse impacts on environmental resources. 

After considering the impacts to each resource, DOE has identified the 

Bruinsburg and Stratton Ridge alternatives as the environmentally 

preferable alternatives. The Chacahoula alternatives would affect 

hundreds more acres of ecologically important forested wetlands than 

any other alternative. The wetlands at the proposed Chacahoula site are 

also relatively contiguous and in a mostly undisturbed area in 

Louisiana, which adds to the ecological function and value of the 

wetlands. The Richton alternatives would affect several hundred acres 

of wetlands through more than 200 miles of pipeline and power line 

rights-of-way. Most of the wetland impacts associated with the Richton 

alternatives, however, would either be temporary or be a permanent 

conversion, meaning that some of the function of the wetlands would be 

retained. Nonetheless, total acreage of wetlands affected from rights-

of-way for the Richton alternatives would be greater than from the 

Stratton Ridge or Bruinsburg alternatives. USFWS and MS NHP identified 

two Federally listed species and a Federal candidate species that may 

be adversely affected by the withdrawal of water from the Leaf River. 

The Richton alternatives are also the only alternatives that may affect



[[Page 7970]]



designated critical habitat of a protected species.



Floodplain Statement of Findings



    DOE included a Floodplains and Wetlands Assessment as appendix B in 

the final EIS. The assessment and these findings have been prepared in 

accordance with DOE's regulations ``Compliance with Floodplain and 

Wetland Environmental Review Requirements,'' 10 CFR Part 1022. DOE has 

concluded that there are no practicable alternatives to construction 

within floodplains for the individual proposed new SPR sites or 

expansion sites. Site locations, the location of onsite facilities, and 

site access roads are dictated by the locations and configuration of 

the salt domes, which constitute a unique geologic setting. In 

addition, DOE needs a raw water source that is adequate for solution 

mining of storage caverns. Similarly, because the salt dome sites are 

largely located in lowland areas surrounded by wide expanses of 

floodplain, there are no practicable alternatives to the location of 

the pipelines running to and from these sites within floodplains. The 

raw water intake structures and associated pipeline rights-of-way also 

are water dependent because of their function and therefore cannot be 

located outside of the floodplain associated with the water source. 

Pipelines, power lines, and roads cannot avoid crossing waterways and 

the associated floodplains. DOE considered alternatives for minimizing 

the potential impacts of pipeline and power line rights-of-way in 

floodplains and wetlands. The primary approach that DOE employed was to 

select pipeline and power line rights-of-way along existing rights-of-

way. The Gulf Coast consists of a large number of gas and oil fields 

and associated facilities, which offer a network of existing pipeline 

and power line rights-of-way. This network of utilities enabled DOE to 

minimize the potential impacts to floodplains and wetlands. Floodplain 

maps of all the alternatives considered in the EIS are available in 

appendix B of the final EIS.

    To comply with Executive Order 11988, Floodplain Management, and 

DOE's regulations, DOE will follow the U.S. Water Resources Council's 

(1978) Floodplain Management Guidelines for Implementing Executive 

Order 11988 and the Federal Emergency Management Agency's Unified 

National Program for Floodplain Management while planning its 

mitigation strategy for the selected SPR alternative. Those actions 

would include the following: the use of minimum grading requirements to 

save as much of the site from compaction as possible; returning the 

site and rights-of-way to original contours where feasible; preserving 

free natural drainage when designing and constructing roads, fills, and 

large built-up centers; maintaining wetland and floodplain vegetation 

buffers to reduce sedimentation and discharge of pollutants to nearby 

water bodies, where feasible; constructing stormwater management 

facilities (where appropriate) to minimize any alteration in natural 

drainage and flood storage capacity; directional drilling of larger 

wetland and stream crossings, where feasible; locating buildings above 

the base flood elevation or flood proofing; complying with the 

floodplain ordinance/regulations for the jurisdiction where the 

selected alternative is located; and performing a hydrological 

demonstration (using the U.S. Army Corps of Engineers' Hydrologic 

Engineering Center, Hydrologic Modeling System or an approved 

floodplain model) to confirm that proposed fill and structures within 

the floodplain would not increase the base flood elevation.

    Any structures located within the floodplain would be designed in 

accordance with the National Flood Insurance Program (NFIP) 

requirements for nonresidential buildings and structures located in 

special flood hazard areas. The NFIP regulations require vulnerable 

structures to be constructed above the 100-year flood elevation or to 

be watertight. DOE would coordinate with and secure approval from the 

floodplain coordinator at the appropriate state agency or the local 

government, if it has adopted the NFIP, during the design stage/site 

plan process.



Decision



    DOE has decided to: construct a new storage facility at Richton, 

MS, with a total capacity of 160 MMB of crude oil; expand the storage 

capacity of two existing SPR sites by a total of 113 MMB by developing 

8 new 10-MMB caverns at Big Hill, TX, developing 2 new 11.5-MMB caverns 

at Bayou Choctaw, LA, and acquiring an existing privately-owned 10-MMB 

cavern that lies within the Bayou Choctaw site; and fill the SPR to 1 

billion barrels, as authorized by Congress.



Basis for Decision



    DOE's decision is based on careful consideration of the 

environmental impacts of the alternatives along with an evaluation of 

SPR distribution capabilities, geological technical assessments, 

projected costs, and operational impacts associated with existing 

commercial operations.

    The Stratton Ridge alternatives were not selected based on the new 

storage site's location within the Seaway crude oil distribution 

complex and the site's potential impacts to existing commercial 

operations. The SPR currently has two large sites, Bryan Mound and Big 

Hill, which can adequately serve refiners in the Seaway distribution 

complex. Additional storage in this area would not enhance the SPR's 

distribution capabilities or address the SPR's need for increased oil 

storage in the Capline distribution complex, which serves the refiners 

on the lower Mississippi River and the Capline Interstate Pipeline 

system. In addition, Dow Chemical Company, which occupies the majority 

of the Stratton Ridge salt dome, relies on the salt for its 

petrochemical operations. Dow submitted comments on the draft EIS 

stating that the property is critical to its future salt needs and 

continuing operations of Dow Chemical in Freeport, TX.

    The primary reason for not selecting the Bruinsburg alternatives is 

the small size of the salt dome, which only has the capacity to store 

up to 70 MMB of oil, as discussed above. Also, due to its location, 

development of the caverns at Bruinsburg would require disposing of 

large volumes of brine through underground disposal wells. DOE has 

extensive experience with underground brine disposal wells for smaller 

volumes. Injection wells can be difficult and expensive to operate, the 

geology must be appropriate for wells to be drilled, and the receiving 

aquifer must be hydrologically suited for injections. Disposing of 

large volumes of brine through underground injection at Bruinsburg 

presents significant development risks.

    The Chacahoula alternatives were not selected based on significant 

potential environmental impacts to the Louisiana wetlands. The entire 

site is located in an ecologically important bald cypress forested 

wetland area. The alternatives were estimated to potentially impact a 

total of 2,502 acres of wetlands, requiring extensive wetland 

mitigation.

    The Richton alternatives present significant benefits relative to 

the other alternatives by enhancing the SPR's oil distribution 

capabilities with connections to the Capline Pipeline System as well as 

refineries and marine facilities in Pascagoula. The Richton salt dome 

is large and undeveloped, which provides DOE with sufficient capacity 

to develop 160 MMB of storage space without potential impacts to other 

commercial operations or high geotechnical risk. The Richton site is 

also located approximately 80 miles



[[Page 7971]]



from the Gulf coast, providing a significant buffer to the potentially 

damaging effects of hurricanes on surface structures at the storage 

site.

    The decision announced by DOE in this ROD differs from the 

Preferred Alternative identified in the final EIS, which included 

expanding the storage capacity of 3 existing SPR facilities (West 

Hackberry and Bayou Choctaw, LA, and Big Hill, TX) by a total of 115 

MMB, and constructing a new 160-MMB SPR facility at Richton, MS. The 

ROD replaces the planned expansion of West Hackberry (by 15 MMB) with a 

larger expansion of storage capacity at Bayou Choctaw (by 33 MMB 

instead of 20 MMB). This decision was based on: (a) The recent 

acquisition by a private company of the existing caverns at West 

Hackberry; (b) the need for additional stocks at Bayou Choctaw to 

address refiner demands; and (c) the need for an additional cavern at 

Bayou Choctaw to support the site's maximum drawdown operations.

    In comparing expansion options at Bayou Choctaw and West Hackberry, 

DOE considered several factors. First, as discussed in the final EIS, 

the three commercial caverns that DOE had proposed to acquire at West 

Hackberry were purchased by Sempra Pipelines and Storage Corporation in 

August 2006 as part of its Liberty Gas Storage System and in 

conjunction with the Cameron Liquefied Natural Gas (LNG) terminal 

(currently under construction). As discussed above, Sempra has 

submitted comments on the final EIS stating that the property is a 

critical part of its natural gas infrastructure portfolio and the West 

Hackberry storage facility is expected to be in service in April 2009. 

As a result, DOE may not be able to acquire the West Hackberry caverns 

at a reasonable cost.

    Second, DOE needs additional crude stocks at Bayou Choctaw to 

address the refiners' demands along the Mississippi River. The new 160-

MMB facility at Richton, MS, will have the capability to distribute 

crude via pipeline to the Capline Pipeline System serving refiners in 

the Midwest, but not to refiners along the lower Mississippi River. The 

SPR facility at Bayou Choctaw has the capability to distribute oil by 

pipeline to a number of refiners along the Mississippi River, but is 

very limited in its current crude storage capabilities. As these 

refiners are highly dependent on foreign crude supplies, the expected 

demand during a supply interruption would far exceed the inventories 

currently available at Bayou Choctaw. This situation is expected to 

worsen in the future by the announced doubling of crude processing 

capacity of the Marathon refinery at Garyville, LA.

    Third, an additional storage cavern at Bayou Choctaw supports the 

site's maximum drawdown capabilities. Due to the location of one of the 

existing caverns at the edge of the salt dome, DOE has placed 

constraints on the cavern's capacity and operations. An additional 

cavern would be of significant benefit to achieving and maintaining the 

site's maximum drawdown rate in the event of a drawdown of the Reserve.

    For these reasons, DOE has concluded that increasing the storage 

capacity at Bayou Choctaw to 33 MMB, in lieu of an expansion at West 

Hackberry, will provide greater benefits to the SPR in terms of 

enhanced oil import protection capability. This proposed increase in 

the storage capacity at Bayou Choctaw is also considered superior to 

the option of increasing the capacity of the Big Hill site by 96 MMB, 

which would not satisfy the need for additional Capline system stocks 

and would increase the Big Hill site storage capacity to more than 250 

MMB, creating the need for additional oil drawdown and distribution 

infrastructure.

    Based on the SA, DOE determined that the additional expansion at 

Bayou Choctaw is not a substantial change to the proposed action that 

is relevant to environmental concerns, and there are no significant new 

circumstances or information relevant to environmental concerns and 

bearing on the proposed action or its impacts, within the meaning of 40 

CFR 1502.9(c)(1) and 10 CFR 1021.314(c). Therefore, a supplement to the 

SPR final EIS is not needed.

    In conclusion, the selection of a new site at Richton with 

expansion of the existing Bayou Choctaw and Big Hill sites offers DOE 

significant benefits by enhancing the SPR's oil distribution 

capabilities with connections to the Capline Pipeline System, refiners 

along the lower Mississippi River, as well as refineries and marine 

facilities in Pascagoula. The Richton salt dome provides DOE with 

sufficient capacity to develop 160 MMB of storage space without 

potential impacts to other commercial operations or high geotechnical 

risk.



Mitigation



    DOE has developed general mitigation measures to address potential 

impacts. Examples of general mitigation include programmatic agreements 

for dealing with impacts to cultural resources. Under the terms of 

programmatic agreements signed by DOE, the State Historic Preservation 

Officers (SHPOs) in the three states where the Richton site and the 

Bayou Choctaw and Big Hill expansion sites are located, the Advisory 

Council on Historic Preservation, and tribes, as appropriate, DOE will 

identify and resolve adverse effects to historic properties in 

locations selected for expansion or new development. At those 

locations, DOE will conduct field reconnaissance and additional 

documentary research and consultations as appropriate to identify 

cultural resources including historic properties; that is, 

archaeological or historical sites, structures, districts, or 

landscapes that are eligible for listing in the National Register of 

Historic Places. For identified historic properties, DOE will assess 

potential project effects and resolve adverse effects in consultation 

with the SHPOs and the tribes that are concurring parties or 

signatories to the programmatic agreements.

    The wetlands permitting process provides other examples of general 

mitigation measures. DOE will prepare the appropriate application for a 

Section 404 Permit from the U.S. Army Corps of Engineers and the 401 

Water Quality Certificate from each relevant state agency. This permit 

process requires a comprehensive analysis of alternatives to avoid 

impacts to jurisdictional wetlands and waters of the United States, an 

analysis of measures taken to minimize impacts, and a compensation plan 

to mitigate for unavoidable impacts to waters of the United States, 

including wetlands. Avoidance and minimization strategies could include 

measures such as refinement or modification of facility footprints to 

avoid wetlands, minimization of slopes in fill areas, use of 

geotechnical fabric under wetland fills to minimize mudwave potential, 

and restoration of the disturbed wetlands outside the permanent 

footprint of the facility. The compensation plan will be developed by 

DOE and submitted with the permit application. The compensation plan, 

in addition to avoidance and minimization strategies during and after 

construction, will include provisions for compensation sites (e.g., 

conservation easements or similar mechanisms), restoration, and post 

restoration monitoring to evaluate the success of the mitigation. 

Additional detail on mitigation measures is included in section 

3.7.2.1.3 of the final EIS, and on potential compensation sites in 

appendix O of the final EIS.

    Mitigation measures specific to the selected Richton alternative 

have not been adopted at this time because DOE and the regulatory 

agencies agreed that the substantial amount of resources needed to 

develop mitigation measures



[[Page 7972]]



specific to each alternative during the preparation of the EIS would 

have been impracticable and inefficient in light of the large number of 

alternatives located across three states and crossing numerous agency 

jurisdictional boundaries.

    Instead, DOE will work with USFWS, National Oceanic and Atmospheric 

Administration (NOAA) Fisheries, U.S. Army Corps of Engineers, EPA, and 

other Federal, state, and local natural resource agencies to develop 

specific mitigation measures for unavoidable impacts to endangered 

species, EFH, wetlands, and other resources, as described in the final 

EIS. The mitigation plan for the alternative selected in this ROD will 

be developed during the permitting process, after wetland delineations 

and jurisdictional determinations and a functional assessment of 

affected wetlands is completed. DOE will also complete a formal 

consultation with USFWS and NOAA Fisheries and prepare a Biological 

Assessment as mandated under Section 7 of the Endangered Species Act 

for any endangered species that may be affected by the selected 

alternative. Through these activities, DOE will develop and adopt a 

detailed mitigation plan to take all practicable means to avoid or 

minimize environmental harm, as required by 40 CFR 1505.2(c).



    Dated: February 14, 2007.

Samuel W. Bodman,

Secretary of Energy.

[FR Doc. E7-3022 Filed 2-21-07; 8:45 am]



BILLING CODE 6450-01-P