Safety and Security Issues: LNG in a Post-9-11 World

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1 Capt. Patrick G. Gerrity of the U.S. Coast Guard 18-1 Safety and Security Issues: LNG in a Post-9-11 World Captain Patrick Gerrity Captain of the Port United States Coast Guard Sector Portland USCG Grp/AirSta Astoira USCG Sector Portland USCG Grp/AirSta North Bend

2 Capt. Patrick G. Gerrity of the U.S. Coast Guard 18-2 Deep Draft Ports Saving Lives

3 Capt. Patrick G. Gerrity of the U.S. Coast Guard 18-3 Marine Safety Protecting the Environment

4 Capt. Patrick G. Gerrity of the U.S. Coast Guard 18-4 Waterways Management Securing the Homeland

5 Capt. Patrick G. Gerrity of the U.S. Coast Guard 18-5 U.S. Natural Gas Demand (billion cubic feet per day) 90 History Projections North American supply cannot keep pace with demand Consumption 20 BCF/day GAP 50 Production 40 1 BCF = Enough to supply 4.3 million homes each day Source: EIA - Annual Energy Outlook 2005

6 Capt. Patrick G. Gerrity of the U.S. Coast Guard 18-6 Agencies Jurisdictions FERC 18 CFR Part 153, Section 3 of the Natural Gas Act Coast Guard 33 CFR Part 127 DOT- PHMSA 49 CFR Part 193 Safety Standards Coast Guard 33 CFR Part 105 Facility Security Source: FERC Office of Energy Projects NVIC Guidance on Assessing the Suitability of a Waterway for LNG Marine Traffic -Navigation & Vessel Inspection Circular Provides detailed guidance to applicant and COTP on how both safety and security risks should be identified, analyzed, and mitigated when assessing the suitability of a waterway Establishes timeline and process for integrating Waterway Suitability Assessment into FERC EIS and shoreside permitting procedures Incorporates conclusions of Sandia Labs Study: Zones of Concern

7 Capt. Patrick G. Gerrity of the U.S. Coast Guard 18-7 Sandia Labs Zones of Concern (500/1600/3500 meters) NVIC Guidance on Assessing the Suitability of a Waterway for LNG Marine Traffic -Navigation & Vessel Inspection Circular Provides guidance to COTP for incorporating Waterway Suitability Assessment into Letter of Recommendation (LOR) decision process Established process for Coast Guard to adopt FERC EIS as its NEPA document Required before COTP can issue LOR

8 Capt. Patrick G. Gerrity of the U.S. Coast Guard 18-8 Process: NVIC Applicant prepares Waterway Suitability Assessment (WSA) COTP reviews/validates WSA (using AMSC, HSC, etc) COTP provides FERC with Report on Waterway Suitability; for inclusion in FERC s EIS (available to public) COTP also provides Supplemental Record (SSI) not part of EIS. Discusses potential vulnerabilities & threats. FERC issues EIS, then its Final Order Coast Guard adopts FERC EIS (or requires supplementary work) COTP issues Letter of Recommendation (LOR) NVIC Enclosures: 1. Timeline for Process 2. Guidance on conducting WSA 3. Risk Assessment Quick-Reference Tool (SSI) 4. Checklist for Reviewing WSA 5. Example Press Release 6. Example Federal Register Notice 7. Example LOR 8. Example NEPA Record of Decision (ROD) 9. Example Waterway Suitability Report to FERC 10. Example Report to FERC, Supplementary Record 11. Summary of Zones of Concern

9 Resources Issues - LNG Operations Some measures have greater resource requirements than others Coast Guard works with State and local government agencies to ensure safety/security of all maritime transportation within State waters 2005 Energy Bill included requirement for reimbursement of State/local agencies for LNG security Questions? November 2005 Proceedings dedicated to the marine transportation of LNG.available online. Capt. Patrick G. Gerrity of the U.S. Coast Guard m/nmc/pubs/proceed/newpromag page2005/fall2005lng/1.htm

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