Import Administration
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last update: September 2002 

Foreign-Trade Zones Board
[Docket 1-97]

Foreign-Trade Zone 149; Freeport, Texas; Proposed Foreign-Trade 
Subzone, Phillips Petroleum Company, (Oil Refinery Complex), Brazoria 
County, TX

An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by Port Freeport, grantee of FTZ 149, requesting special-
purpose subzone status for the oil refinery complex of Phillips 
Petroleum Company, located at sites in Brazoria County, Texas. 
The application was submitted pursuant to the provisions of the 
Foreign-Trade Zones Act, as amended (19 U.S.C. 81a-81u), and the 
regulations of the Board (15 CFR part 400). It was formally filed on 
January 2, 1997.
    The refinery complex (2,095 acres, 1,300 employees) consists of 5 
sites and connecting pipelines in Brazoria County, Texas: Site 1 (1315 
acres)--main refinery and petrochemical complex (200,000 BPD) located 
at Texas State Highway 35 at Farm Market Road 524, south of Sweeney; 
Site 2 (160 acres)--Freeport I Terminal and storage facility (1.6 
million barrel storage capacity) located at County Road 731, some 28 
miles southeast of the refinery; Site 3 (183 acres)--six crude oil 
storage tanks (2.4 million barrel capacity) at Jones Creek Terminal, 
located at 6215 State Highway 36, some 17 miles southeast of the 
refinery; Site 4 (34 acres)--San Bernard Terminal and storage facility 
(207,000 barrel capacity), located at County Road 378, 5 miles 
southeast of the refinery; Site 5 (403 acres)--Clemens Terminal 
underground LPG storage (12.8 million barrel capacity), located at 
County Road 314, 15 miles east of the refinery.
    The refinery is used to produce fuels and petrochemical feedstocks. 
Fuels produced include gasoline, jet fuel, distillates, residual fuels 
and naphthas. Petrochemical feedstocks and refinery by-products include 
methane, ethane, propane, propylene, ethylene, butylene, butadiene, 
butane, benzene, toluene, xylene, carbon black oil and sulfur. Some 95 
percent of the crude oil (60 percent of inputs), and some feedstocks 
and motor fuel blendstocks are sourced abroad.
    Zone procedures would exempt the refinery from Customs duty 
payments on the foreign products used in its exports. On domestic 
sales, the company would be able to choose the finished product duty 
rate (nonprivileged foreign status--NPF) on certain petrochemical 
feedstocks and refinery by-products (duty-free) instead of the duty 
rates that would otherwise apply to the foreign-sourced crude oil. The 
duty rates on crude oil range from 5.25 cents/barrel to 10.5 cents/
barrel. Under the FTZ Act, certain merchandise in FTZ status is exempt 
from ad valorem inventory-type taxes. The application indicates that 
the savings from zone procedures would help improve the refinery's 
international competitiveness.
    In accordance with the Board's regulations, a member of the FTZ 
Staff has been designated examiner to investigate the application and 
report to the Board.
    Public comment is invited from interested parties. Submissions 
(original and 3 copies) shall be addressed to the Board's Executive 
Secretary at the address below. The closing period for their receipt is 
March 18, 1997. Rebuttal comments in response to material submitted 
during the foregoing period may be submitted during the subsequent 15-
day period (to April 2 1997).
    A copy of the application and accompanying exhibits will be 
available for public inspection at each of the following locations:

U.S. Department of Commerce Export Assistance Center, Suite 1160, 500 
Dallas, Houston, Texas 77002
Office of the Executive Secretary, Foreign-Trade Zones Board, Room 
3716, U.S. Department of Commerce, 14th & Pennsylvania Avenue, NW, 
Washington, DC 20230

    Dated: January 7, 1997.
John J. Da Ponte, Jr.,
Executive Secretary.
[FR Doc. 97-1259 Filed 1-16-97; 8:45 am]