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last update: September 2002 

[Federal Register: November 29, 1994]


Foreign-Trade Zones Board
[Docket 37-94]

Foreign-Trade Zone 124--Gramercy, LA; Application for Subzone
Status, LOOP Inc.; Lafourche and St. James Parishes, LA

    An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the South Louisiana Port Commission, grantee of FTZ 124,
requesting special-purpose subzone status for the crude oil terminal
system operated by LOOP Inc., located in Lafourche and St. James
Parishes, Louisiana. 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 November 17, 1994.
    The LOOP terminal/storage system involves offshore crude oil
offloading facilities, on-shore storage facilities, and a network of
undersea and on-shore pipelines connecting the facilities. The
facilities are used to offload, store, blend and transport crude oil to
U.S. refineries. Some 30 percent of U.S. refinery capacity can be
supplied by the system directly or indirectly through connecting
pipeline systems and the terminal accounts for some 12 percent of U.S.
crude oil imports.
    The facilities for which subzone status is being requested covers
two sites (981 acres) and 92 miles of pipeline. The marine terminal,
which is 18 miles offshore, and the undersea pipeline beyond the 12-
mile U.S. territorial limit is not included in the request because the
U.S. Customs Service has determined that they are outside of Customs
    The proposed subzone facilities include:

--Site 1--Four Parcels owned by LOOP Inc., and 37 miles of pipeline.
--Parcel A (10 acres)--Fourchon Booster Station, Highway 1, Fourchon,
--Parcel B (287 acres)--Clovelly Dome Storage Terminal, Clovelly, LA.
--Parcel C (533 acres)--Brine Storage Reservoir, Clovelly, LA.
--Parcel D (27 acres)--Operations Center, 224 E. 101 Place, Cut Off,
--Site 2 (124 acres and 55 miles of pipeline)--St. James Terminal, 6695
LOCAP Road, St. James, LA, owned by LOCAP Inc., and operated by LOOP
Inc. pursuant to a management agreement.

Operations and control of zone merchandise at all sites will be handled
by LOOP Inc.
    Zone procedures would allow LOOP customers to defer Customs duty
payment on foreign crude oil while it is in the LOOP system. On
shipments of foreign crude to domestic refineries with subzone status,
LOOP customers would be able to maintain the appropriate zone status of
the crude so that these refineries can use zone procedures as
authorized by the FTZ Board. This procedure will give these refineries
the same opportunity to use zone procedures for foreign crude delivered
from the LOOP system as those refineries with subzone status that take
direct delivery of foreign crude from vessels.
    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
January 30, 1995. Rebuttal comments in response to material submitted
during the foregoing period may be submitted during the subsequent 15-
day period (to February 13, 1995).
    A copy of the application and accompanying exhibits will be
available for public inspection at each of the following locations:

Office of the Port Director, U.S. Customs Service, P.O. Box 490,
Gramercy, LA 70052
Office of the Executive Secretary, Foreign-Trade Zones Board, U.S.
Department of Commerce, Room 3716, 14th & Pennsylvania Avenue, NW.,
Washington, DC 20230

    Dated: November 18, 1994.
John J. Da Ponte, Jr.,
Executive Secretary.
[FR Doc. 94-29373 Filed 11-28-94; 8:45 am]