U. S. Coast Guard U. S. Coast Guard Role and Process for LNGRole and Process for LNG

Mr. Alan Moore 207-767-0338 Mr. Alan Moore 207-767-0338 AMoore@gruportme.uscg.milAMoore@gruportme.uscg.mil

LT Dan McLean 207-338-8395 LT Dan McLean 207-338-8395 DMclean@msfobelfastme.uscg.milDMclean@msfobelfastme.uscg.mil

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Captain Steve Garrity 259 High StreetSouth Portland, ME 04106207-767-0320

Commanding Officer Sector NNE;Commanding Officer Sector NNE;Captain of the Port (COTP);Captain of the Port (COTP);Officer in Charge Marine Inspection (OCMI);Officer in Charge Marine Inspection (OCMI);Federal Maritime Security Coord(FMSC);Federal Maritime Security Coord(FMSC);Port Facility Security Officer;Port Facility Security Officer;Federal On Scene Coord (FOSC)Federal On Scene Coord (FOSC)Search and Rescue Coordinator Search and Rescue Coordinator

USCG RoleUSCG Role

To Assess the suitability of a waterway for To Assess the suitability of a waterway for Liquefied Natural Gas (LNG) marine Liquefied Natural Gas (LNG) marine traffic.traffic.

Non-Partisan – Mandated by congress to Non-Partisan – Mandated by congress to ensure that vessels and facilities engaged ensure that vessels and facilities engaged in transferring regulated cargo, do so in in transferring regulated cargo, do so in accordance with the prescribed accordance with the prescribed regulations.regulations.

USCG and FERCUSCG and FERC

FERC is responsible for authorizing, siting, FERC is responsible for authorizing, siting, and construction of onshore LNG facilities.and construction of onshore LNG facilities.

The USCG is required to participate with The USCG is required to participate with FERC in an Environmental Impact FERC in an Environmental Impact Statement (EIS). Statement (EIS).

The USCG will provide FERC its findings The USCG will provide FERC its findings relative to the suitability of the waterway relative to the suitability of the waterway before a final decision is made.before a final decision is made.

USCG Regulations for LNG FacilitiesUSCG Regulations for LNG Facilities

33 Code of Federal Regulations Part 127 (Waterfront Facilities Handling Liquefied Natural Gas)

33 CFR 127.007 – Letter of Intent (LOI): Submitted at least 60 days before construction, by the owner who intends to build a new facility.

Letter of Intent (Cont)Letter of Intent (Cont)

The LOI must contain:- Owner and operator information, physical location of the facility.- Name, address, and telephone number of the facility.- A description of the facility.- LNG Vessel characteristics and frequency of shipments to or from.

Letter of Intent (Cont)Letter of Intent (Cont)

Navigational charts showing: - Channels- Identifying commercial- Industrial- Environmentally sensitive & residential

areas- All that are adjacent to or within the

waterway used by vessels enroute to the facility within 15.5 miles of the facility.

Waterway Suitability Assessment Waterway Suitability Assessment (WSA)(WSA)

Navigation Vessel Inspection Circular Navigation Vessel Inspection Circular (NVIC) 05-05: GUIDANCE ON (NVIC) 05-05: GUIDANCE ON ASSESSING THE SUITABILITY OF ASSESSING THE SUITABILITY OF WATERWAY FOR LIQUIFIED NATURAL WATERWAY FOR LIQUIFIED NATURAL GAS (LNG) MARINE TRAFFIC. GAS (LNG) MARINE TRAFFIC. http://www.uscg.mil/hq/g-m/nvic/index00.htm#2005http://www.uscg.mil/hq/g-m/nvic/index00.htm#2005

This WSA is a detailed guide to the USCG This WSA is a detailed guide to the USCG role in developing an LOR. role in developing an LOR.

Advisory CouncilAdvisory Council

The USCG will form a council comprised The USCG will form a council comprised of local and governmental stakeholders to of local and governmental stakeholders to identify, study, and address the suitability identify, study, and address the suitability of the waterway in accordance with the of the waterway in accordance with the regulations and guidance.regulations and guidance.

The council will provide the COTP The council will provide the COTP information for the LOR.information for the LOR.

Issues identifiedIssues identified

Security zones: Security zones: Size, enforcement, time, impact to others.Size, enforcement, time, impact to others.

Transits thru Canadian waters:Transits thru Canadian waters: Tugboats / Fireboats / Security boats / Tugboats / Fireboats / Security boats /

Additional USCG personnel.Additional USCG personnel. These and more are all questions and These and more are all questions and

issues raised which will be addressed in issues raised which will be addressed in one form or another.one form or another.

33 CFR 127.009 33 CFR 127.009 Letter of Recommendation (LOR)Letter of Recommendation (LOR)

The LOR is the USCG’s response to the The LOR is the USCG’s response to the LOI. LOI.

The LOR will not be issued until FERC has The LOR will not be issued until FERC has responded to the application to site and responded to the application to site and construct an on-shore LNG facility.construct an on-shore LNG facility.

The LOR is NOT an approval.The LOR is NOT an approval. The USCG and FERC will work closely The USCG and FERC will work closely

during the entire application process.during the entire application process.

LOR (Cont)LOR (Cont) The LOR will be issued to state and local The LOR will be issued to state and local

government agencies having jurisdiction as well as government agencies having jurisdiction as well as the proposed owner and operator.the proposed owner and operator.

The LOR will address the suitability of the waterway The LOR will address the suitability of the waterway for LNG marine traffic. Based on: LOI information, for LNG marine traffic. Based on: LOI information, above water obstructions, depths, tides, protection above water obstructions, depths, tides, protection from high seas, shoals, and underwater obstructions.from high seas, shoals, and underwater obstructions.

The LOR will also address the channel width and The LOR will also address the channel width and distance of berth vessel from the channel.distance of berth vessel from the channel.

A minimum 16 month process to an LOR.A minimum 16 month process to an LOR.

Public Notification and ParticipationPublic Notification and Participation

USCG Continued participation in forums USCG Continued participation in forums such as this.such as this.

Objective representation in the advisory Objective representation in the advisory council.council.

Solicit input via email or letter to Solicit input via email or letter to addresses previously identified.addresses previously identified.

USCG press releases / Federal Register USCG press releases / Federal Register Notice as process stages are reached.Notice as process stages are reached.

SummarySummary This presentation glosses over the whole This presentation glosses over the whole

process for the USCG. We will continue to process for the USCG. We will continue to prepare for an LOI and subsequent prepare for an LOI and subsequent response. response.

Yes, LNG has it’s risks. All shipping and Yes, LNG has it’s risks. All shipping and cargo operations does. cargo operations does.

Mitigating those risks to continue our way Mitigating those risks to continue our way of life, is the job of your public servants.of life, is the job of your public servants.