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

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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

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

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

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

Capt. Patrick G. Gerrity of the U.S. Coast Guard 18-5 U.S. Natural Gas Demand 1970-2025 (billion cubic feet per day) 90 History Projections 80 70 60 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 30 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 Source: EIA - Annual Energy Outlook 2005

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 05-05 Guidance on Assessing the Suitability of a Waterway for LNG Marine Traffic -Navigation & Vessel Inspection Circular 05-05 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

Capt. Patrick G. Gerrity of the U.S. Coast Guard 18-7 Sandia Labs Zones of Concern (500/1600/3500 meters) NVIC 05-05 Guidance on Assessing the Suitability of a Waterway for LNG Marine Traffic -Navigation & Vessel Inspection Circular 05-05 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

Capt. Patrick G. Gerrity of the U.S. Coast Guard 18-8 Process: NVIC 05-05 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 05-05 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

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 18-9 http://www.uscg.mil/hq/g- m/nmc/pubs/proceed/newpromag page2005/fall2005lng/1.htm www.uscg.mil/hq/g-m/nvic