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                           DEPARTMENT OF COMMERCE

    			Foreign-Trade Zones Board

                              [Order No. 535]

  Resolution and Order Approving With Restrictions the Application of the
                                  Port of
Corpus Christi Authority for a Special-Purpose Subzone at the Koch Refinery
 in Nueces and San Patricio Counties, TX; Proceedings of the Foreign-Trade 
		 	Zones Board, Washington, DC

                        Thursday, September 5, 1991

Resolution and Order

Pursuant to the authority granted in the Foreign-Trade Zones Act of June 18,
1934, as amended (19 U.S.C. 81a-81u), the Foreign-Trade Zones
Board (the Board) adopts the following Resolution and Order:

The Board, having considered the matter, hereby orders:

After consideration of the application of the Port of Corpus Christi
Authority, grantee of FTZ 122, filed with the Foreign-Trade Zones Board (the
Board) on February 11, 1991, and amended on June 5, 1991, requesting
special- purpose subzone status for the crude oil refinery of Koch Refining
Company, located in Nueces and San Patricio Counties, Texas, within the
Corpus Christi Customs port of entry area, the Board, finding that the
requirements of the Foreign-Trade Zones Act, as amended, and the FTZ Board's
regulations would be satisfied, and that the amended application would be 
in the public interest, if approval were subject to certain conditions, 
approves the amended application subject to the following conditions:

1. Foreign crude oil used as fuel for the refinery shall be dutiable.

2. Koch shall elect privileged foreign status on foreign crude oil and
other foreign merchandise admitted to the subzone.

The Secretary of Commerce, as Chairman and Executive Officer of the Board,
is hereby authorized to issue a grant of authority and appropriate Board 

Whereas, by an Act of Congress approved June 18, 1934, an Act "To provide
for the establishment, operation, and maintenance of foreign-trade zones in 
ports of entry of the United States, to expedite and encourage foreign 
commerce, and for other purposes," as amended (19 U.S.C. 81a-81u) (the 
Act), the Foreign-Trade Zones Board (the Board) is authorized and empowered 
to grant to corporations the privilege of establishing, operating, and 
maintaining foreign-trade zones in or adjacent to ports of entry under the 
jurisdiction of the United States;

Whereas, the Board's regulations (15 CFR 400.304) provide for the
establishment of special-purpose subzones when existing zone facilities
cannot serve the specific use involved, and where a significant public 
benefit will result;

Whereas, the Port of Corpus Christi Authority, grantee of Foreign-Trade 
Zone No. 122, has made application (filed on February 11, 1991, FTZ Docket 
8-91, 56 FR 7660, 2/25/91, and amended on June 5, 1991) in due and proper 
form to the Board for authority to establish a special-purpose subzone at 
the crude oil refinery of Koch Refining Company in Nueces and San Patricio 
Counties, Texas (Corpus Christi area);

Whereas, notice of said application has been given and published, and full
opportunity has been afforded all interested parties to be heard; and,

Whereas, the Board has found that the requirements of the Act and the
Board's regulations would be satisfied and that the proposal would be in
the public interest if approval were given subject to the restrictions in 
the resolution accompanying this action; 

Now, Therefore, in accordance with the application filed February 25, 1991,
as amended, the Board hereby authorizes the establishment of a subzone at
the Koch refinery in Nueces and San Patricio Counties, Texas, designated on
the records of the Board as Foreign-Trade Subzone 122L, at the location
mentioned above and more particularly described on the maps and drawings
accompanying the application, said grant of authority being subject to the
provisions and restrictions of the Act and the regulations issued
thereunder, and to the restrictions in the resolution accompanying this
action, and also to the following express conditions and limitations:

Activation of the subzone shall be commenced within a reasonable time from
the date of issuance of the grant, and prior thereto, any necessary permits
shall be obtained from Federal, State, and municipal authorities.

Officers and employees of the United States shall have free and
unrestricted access to and throughout the foreign-trade subzone in the
performance of their official duties.

The grant shall not be construed to relieve responsible parties from
liability for injury or damage to the person or property of others
occasioned by the construction, operation, or maintenance of said subzone,
and in no event shall the United States be liable therefor.

The grant is further subject to settlement locally by the District Director
of Customs and the Army District Engineer with the Grantee regarding
compliance with their respective requirements for the protection of the
revenue of the United States and the installation of suitable facilities.

In Witness Whereof, the Foreign-Trade Zones Board has caused its name to be 
signed and its seal to be affixed hereto by its Chairman and Executive 
Officer or his delegate at Washington, DC, this 28th day of August 1991, 
pursuant to Order of the Board.

Marjorie A. Chorlins,

Acting Assistant Secretary of Commerce for Import Administration, Chairman,
Committee of Alternates, Foreign-Trade Zones Board.


John J. Da Ponte, Jr.,

Executive Secretary.

[FR Doc. 91-21292 Filed 9-4-91; 8:45 am]