of a navigable water of the United States. Navigable waters of the United States have been administratively defined by the Corps (see 37 Federal Register 18389, September 9, 1972) and generally include those waters, including the territorial seas, which are subject to the ebb and flow of the tide or which have been used, are used, or are susceptible of use as an instrument of interstate commerce. The Outer Continental Shelf Lands Act (43 U.S.C. 1333 (f)) extended this regulatory authority to the construction of artificial islands and fixed structures on the outer continental shelf beyond the territorial sea.

In addition, pursuant to Section 404 of the Federal Water Pollution Control Act (PL 92-500, 86 Stat. 816), the Corps also exercises regulatory authority over the discharge of dredged or fill material in navigable waters at specified disposal sites. Navigable waters as defined by this Act include the waters of the United States including the territorial seas. Section 103 of the Marine Protection, Research & Sanctuaries Act (PL 92-532, 86 Stat. 1052) also places regulatory authority in the Corps for the transportation of dredged material for the purpose of disposing it on ocean waters. Ocean waters as defined by that Act means those waters of the open sea lying seaward of the baseline from which the territorial sea is measured. These additional regulatory programs pertain to offshore activities and could also pertain to onshore activities if those activities involve dredged or fill material.

Generally, as expressed in Corps regulations 33 CFR 209.120 (Incl 1), the decision to issue a permit will be based on an evaluation of the probable impact of the proposed structure or work and its intended use on the general public interest. Factors which are considered in this public interest review include conservation, economics, esthetics, general environmental concerns, historic values, fish and wildlife values, flood damage prevention, land use classifications, navigation, recreation, water supply, water quality and, in general, the needs and welfare of the people. In those permit situations involving the construction of fixed structures or artificial islands on the outer continental shelf lands which are under mineral lease from the Department of the Interior, the Corps decision as to whether a permit will be issues is based on an evaluation of the impact of the proposed activity on navigation and national security. In all other permit cases involving the construction of fixed structures or artificial islands on the outer continental shelf, the Corps evaluation is based on the impact of the proposed activity on the general public interest.

Additionally, the Corps has general authority under specific authorizations by Congress, either legislative actions or resolutions by either the House or Senate Public Works Committee, to undertake planning investigations of water and related land resources projects. The regional deepwater port facilities studies for the North Atlantic, Gulf and West coasts are planning investigations authorized by resolutions.

Question 2. In carrying out the function and responsibilities described above, what programs does your department, agency or office administer which involve specific knowledge and technological or administrative skills especially applicable or relevant to the developmtnt and/or operation of deepwater port facilities; (a) onshore (b) offshore?

Answer. The Corps of Engineers has responsibility for the following three programs which involve specific knowledge and technological skills relevant to the development and/or operation of deepwater port facilities.

a. Design and construction of coastal projects involving onshose groins. revetments, bulkheads and beach sand replenishment for protection against coastal erosion and jetties, breakwaters and channel dredging for navigation inlets.

b. Coastal engineering research and coastal project model studies by the Coastal Engineering Research Center and the Waterways Experiment Station to improve design criteria for coastal projects; to determine the effects of tides, currents and waves on the environment along shores; and to develop improved construction techniques for sealed foundations for offshore structures. c. Maintenance of navigation channels in coastal inlets and estuaries involving dredging and disposal of large volumes of sand and fine sediment in areas which are not detrimental to the environment and will enhance the adjacent shores.

Through the three regional deepwater port facilities studies for the North Atlantic, Gulf and West coasts recently conducted by the Corps and the research conducted in conjunction with these studies the Corps has gained invaluable experience and developed expertise in determining both the reqoirement for and the location of offshore deepwater port facilities.

26-400 O 74 pt. 2 2

Question 3. What laws does your department, agency, or office administer which could be expected to require almost continuous and consistent involvement in the development and operation of deepwater port facilities; (a) onshore, (b) offshore"

Answer. Exercising broad regulatory authorities over the placing of any structures or the dredging, filling, alteration, or depositing of refuse in the navigable waters of the United States requires continuous and consistent involvement in development and operation of deepwater port facilities.

It is the policy of the Corps to advise proponents of proposed activities of the need for approriate Corps permits at the earliest possible stages of planning of their activities. In addition. permits issued under the aforementioned authorities provide for the continuous inspection and monitoring of the activity during its construction and operation, and for the modification, suspension and revocation of the permit at any time if such action is considered to be in the general public interest.

Question 4. Describe briefly those programs administered or responsibilities carried out by your department, agency, or office which, either staturoally or functionally require coordination with:

(a) other Federal government entities,

(b) regional, State or local government entities,

(c) private or public parties, organizations or institutions.

Answer. It is the policy of the Corps to evaluate a permit application based on information developed internally and solicited from outside sources. The primary means of developing this latter source of information is the issuance of a public notice which describes the proposed activity and solicits comments from all interested Federal, State, and local governmental agencies as well as members of the public. Various statutes also require the Corps to coordinate with appropriate Federal and State agencies (i.e. the Fish and Wildlife Coordination Act (16 U.S.C. 661 et seq.)) requires coordination with the Department of the Interior on fish and wildlife values; Section 401 of the Federal Water Pollution Control Act requires a State Water quality certification for the construction and operation of the activity if it will involve a discharge into navigable waters; Section 307(a) (3) of the Coastal Zone Management Act of 1972 (PL 92-583, 86 Stat. 1280) requires coordination with coastal States to insure that the proposed activity complies with an approved coastal zone management program; Section 302 of the Marine Protection, Research & Sanctuaries Act of 1972 (PL 92-532, 86 Stat. 1052) requires coordination with the Secretary of Commerce when the proposed activity involves a designated marine sanctuary; and the National Environmental Policy Act of 1969 (42 U.S.C. 43214347) requires coordination with all interested Federal, State, and local agencies on environmental factors when it is determined that the proposed activity will have a significant impact on the environment.

In addition to the aforementioned statutory coordination requirements, Section 404 of the Federal Water Pollution Control Act and Section 103 of the Marine Protection: Research and Sanctuaries Act require notice and opportunity for a public hearing as part of the permit evaluation process under these statutory authorities. Both acts also specifically require coordination with EPA in the selection and designation of disposal sites.

Additionally, planning investigation undertaken by the Corps are coordinated throughout all levels of the investigation with other Federal agencies, State and local entities as well as private parties.

Question 5. Outline briefly and provide the status of any studies, investigations or other actions taken by your department, agency, or office alone or in cooperation with other Federal entities. which relate to the development of deepwater port facilities?

Answer. The Corps of Engineers Deepwater Port Studies are outlined and summarized in the attached statement of Brigadier General James L. Kelly, Deputy Director of Civil Works. before the Special Joint Committee of the Senate Interior, Commerce and Public Works Cimmittees on 1 August 1973. (Incl. 2)

In addition to the above Corps Deepwater Port Studies prepared in response to Congressional resolutions, the Corps Institute for Water Resources has sponsored a series of supporting research projects aimed at identifying and delineating some of the basic parameters to future U.S. deepwater port needs, planning, and development. Listed below are the first three of these which have been completed and published:

a. Preliminary Analysis of the Ecological Aspects of Deep Port Creation and Supership Operations, IWR Report 71-10, October 1971 (Prepared by Natural Resources Institute, University of Maryland)

b. Foreign Deep Water Port Developments, A Selective Overview of Economics, Engineering, and Environmental Factors, IWR Report 71-11, December 1971 (Prepared by Arthur D. Little, Inc.)

c. U.S. Deepwater Port Study, IWR Report 72-8, August 1972 (Prepared by Robert R. Nathan Associates)

Other research studies with expected completion dates in Calendar Year 1973 include:

a. Institutional Implications of Deepwater Port Development for Crude Oil Imports (Expected completion date: August 1973-Preparation by Robert R. Nathan Associates) The research study will provide a delineation of institutional problems related to the planning, construction, and operation of deepwater ports and related facilities, and the consideration of appropriate solutions. The respective roles and responsibilities of the private and public sectors will be defined as well as the nature of the public interest and goals; the relationships and inter-relationships of various levels of government; legal and jurisdictional issues; relationship of deepwater ports to other governmental programs and objectives; and the need for new institutions or adaptations or adaptation of existing institutions.

b. The Economic Role of the Ship-Harbor Relationship in the Future U.S. Petroleum Transportation and Refinery Network (Expected completion date: October 1973--Preparation by Robert R. Nathan Associates) The prime objective of this study by Nathan Associates is to develop an analytic framework for the petroleum delivery system east of the Rocky Mountains that would determine the least costly total petroleum movement and refining network for the supply of petroleum product requirements, with emphasis on ship and port components; estimate the total cost to the U.S. of alternative networks; test the effect on total costs of variations in such parameters as port or refinery location; and be flexible enough to take into account a range of possible energy policy alternatives.

c. Concept Design and Cost Analysis of Restricted Draft Dry Bulk Carriers, (Expected Completion date: August 1973-Preparation by Hydronautics, Inc) One of the elements of the Nathan Deepwater Port Study concerned the ocean transport cost implications oif restricted draft, or so-called broad beam, vessel design. A preliminary parametric study was done by Hydronautics, Inc. It was found that the application of this principle permitted the operation of ships, under conditions of limited channel depths, having greater capacity and lower unit costs. The possible use of such ships appeared to be particularly relevant to the movement of dry bulk commodities, such as grain, coal, and iron ore. through existing ports and channels.

In order to determine more reliably and accurately the applicability of restricted draft vessels to specific channel depth conditions, a contract was signed wtih Hydronautics, Inc. for a follow-up study that would provide detailed design, engineering, and cost characteristics for dry bulk carriers of three specified drafts-35, 45, and 35 feet. These correspond with the range of existing or proposed depths of channels on the Atlantic and Gulf coasts presently accommodating major dry bulk import and export movements. Taken together these studies will have provided basic data and guidance on the fillowing major elements of relevance to U.S. deepwater port development.

The physical characteristics of U.S. coastal areas and their adaptability to deepwater port development:

The locational characteristics of major consumers and producers of bulk commodity imports and exports requiring deep draft ships;

Long-range projections of U.S. imports and exports of such bulk commodities by U.S. and foreign coastal zones of origin and destination;

Design, engineering, locational, and cost characteristics of various deepwater port alternatives, including channel deepening and off-shore structures, to handle crude petroleum and dry bulk commodities;

Economic cost-benefit relationships of various deepwater port alternatives, including ocean transport cost savings;

Ecological and environmental hazards. impacts, and other characteristics of deepwater port construction and operation, including a conceptual framework for analysis;

The nature of deepwater port development in selected foreign countries,

including planning, institutional, economic, and environmental considerations;

A methodological and factual framework for a systematic analysis of total delivered cost characteristics for petroleum products under alternative patterns of deepwater port and refinery locations for processing imported crude petroleum ;

Identification and analysis of legal and institutional problems associated with the development and operation of deepwater ports, including legislative requirements; nature of the public interest; Federal-State-Local government relations: ownership and finance; economic and environmental regulation; and organizational requirements;

Design, operating, and cost characteristics of restricted draft vessels, capable of carrying greater cargo volumes to and from existing ports under conditions of restricted channel depths

Question 6 In summary, what have the results of such studies or investigations led your department, agency or office to conclude and/or recommend as a matter of public policy concerning the development of U.S. deepwater port facilities?

Answer. The studies have shown that there is an economic justification for one or more deepwater ports on each of the three coasts to serve superships transporting crude petroleum. Deepwater ports are environmentally preferable to the present method of transporting crude petroleum in small tankers. Simply by decreasing the number of operating ships, the chances of collisions and groundings wil be reduced, thereby, significantly reducing the risk of oil spills. Landslide environmental impacts resulting from expanded refinery-petrochemical complexes can be minimized through coordinated land use planning. Private or non-Federal public ownership, financing and operation of deepwater port facilities is seen compatible with the public interest if accomplished under adequate and effective Federal control and regulation. There is presently no foreseeable need for the Federal Government to undertake the major capital investments which would be required to bring deepwater port facilities into operation.

Question 7. In light of such conclusions or recommendations as may have been cited in response to the question above, what specific further actions (including additional studies or investigations) do you recommend the Federal government undertake with respect to the development of deepwater ports?

Answer. An important area of further study remains if deepwater ports are to be constructed in a timely fashion, and if their environmental and economic characteristics are to be compatible with the public interest. This is the area of the specific design, equipment, and operating criteria to apply to the delivery system of which the offshore terminal would be a part. If the system is to operate in the public interest, there must be scientifically determined and publicly accepted determinations of anticipated environmental and operating performance. Whether the terminal and/or other parts of the system are to be privately or publicly buitl and operated, the Federal government must develop the capability to initiate or to evaluate relevant design, equipment and operating standards. Additionally, environmental studies will be required for any specific site location(s) for which a permit application is received.

Question 8. What role would you view for your department, agency or office in the accomplishment of such further actions? (Refer to previous responses wherever applicable.)

Answer. The Army Corps of Engineers exercises broad regulatory authorities over the placing of any structures or the dredging, filling, alteration, or depositing of refuse in the navigable waters of the United States (33 U.S.C. 401 et seq.) The statutory authority for construction and operation of a superport within the territorial sens clearly comes within the scope of these authorities. The Outer Continental Shelf Lands Act extends these authorities to the continental shelf (43 U.S.C. 1333 (f)), and the Corps in conjunction with the Department of Interior thus has the regulatory authority over the construction of artificial islands or fixed structures on the continental shelf beyond the terirtorial sea.

Under the provisions of II.R. 7501, 93rd Congress the Secretary of Interior is authorized to issue a license to construct or operate deepwater port facilities off the coast of the United States beyond three nautical miles from such coast. Under Section 104 (c), an application filed with the Secretary for a license under this Act would constitute an application for all other Federal

permits required for construction and operation of a deepwater port facility. The Secretary is directed to consult with other Federal agencies to ensure that the applications contain all information required by such agencies; and to forward a copy of the application to those agencies with jurisdiction over any of the construction and operation. The Secretary will not issue a license under this Act until he has been notified by such agencies that the application meets the requirements of the laws which they administer.

Accordingly, the Corps of Engineers interprets its responsibility as generally remaining the same as now exists for granting permits for the construction of artificial islands and fixed structures beyond the territorial seas under the Outer Continental Shelf Lands Act (43 U.S.C. 1333 (f)). Thus, as part of the application filed with the Secretary of Interior, the applicant would be required to obtain the necessary permits from the Army Corps of Engineers, and such permits and conditions attached thereto would be coordinated with the Department of Interior for final action. Corps of Engineers substantive policies, and regulations would continue with the granting of these permits.

Additionally, the Corps, under the provisions of Section 104(b) of this Act would provide technical assistance to the Secretary of Interior for the purpose of determining standards and criteria for construction of all facilities licensed under this Act.

RESPONSES FROM THE DEPARTMENT OF THE INTERIOR

Question 1. Describe briefly and in general terms, those functions and responsibilities of your department, agency or office and the statutory basis thereof, which would have a bearing on the development and operation of U.S. deepwater port facilities: (a) onshore (b) offshore.

Answer. This department-

(a) Has responsibilities for monitoring and projecting supply-demand trends of all energy sources, for identifying potential or existing imbalances, and for recommending measures to maintain equilibrium between energy needs and energy supply.

(b) Has responsibilities for evaluating, initiating and managing actions related to the development of public land and Outer Continental Shelf (OCS) energy resources in a manner consistent with multiple-use objectives and in coordination with a variety of Federal, state and local governments and broad spectrum of concerned public groups. Our experience with oil and gas pipeline design, construction, and operation is particularly pertinent to deepwater port pipeline and platform systems.

(c) Has broad management experience in assessment and protection of fish and wildlife species and coastal and wetland resources. Responsibilities include the determination of water quality standards, coordination and consultation with governmental, public or private organizations on matters effecting protection of fish and wildlife resources and aquatic habitat and, the development of biologically sound management programs in cooperation with State and local agencies, which will incure a balanced program on conservation and the protection of rare, threatened, and endangered species.

(d) Has experience in establishment and management of wildlife refuges, national parks, monuments, seashore sites, wilderness areas, underwater preserves, recreational sites. Responsibilities are directed toward public use and protection of these designated facilities and other scenic and esthetic rsource values.

Specific authorities of the Department bearing on the development and operation of deepwater port facilities are:

The OCS Lands Act of 1953

Fish and Wildlife Coordination Act (1934)

Anadromous Fish Conservation Act

National Wildlife Refuge System Administration Act of 1966

Estuary Protection Act

Endangered Species Conservation Act of 1969

National Environmental Policy Act of 1969

Water Bank Act of 1970

Convention between the Government of the United States of America and the Government of Japan for the protection of migratory birds and birds in danger of extinction and their environment (1973)

Question 2. In carrying out the function and responsibilities described above,