terminal is expected to cost $80 million and the distribution system to the refineries including pipeline pumping stations and breakout storage will cost $155 million. The total is estimated at $545 million. The Loop (Louisiana offshore Oil Port) facility is estimated to cost $460 million. $150 million from shoreline to buoy and $310 million for the onshore terminal. An additional $88 million will be needed to connect with existing pipeline distribution system. Mr. DU PONT. Is it not true considering the capacity of these massive tankers and the capacity of an offshore terminal that wherever you put one, you are going to build new refinery capacity because the current capacity will not be able to handle the volume? Mr. CARTER. They may hook into an existing pipeline system, too, that has been supplying a number of refineries by either domestic production that is producing, or by bringing in crude in small vessels. In other words, you may just be supplanting your method of delivery but anytime you are going to add new volumes, yes, you are going to have to expand the refinery capacity. Mr. DU PONT. I hope we are not building superports just to transfer delivery capacity. In other words, we are going to have to build refineries somewhere to handle this oil or we will not have any net gain. It is your opinion if you have to build refineries the onshore cost would be in excess of the offshore terminal? Mr. CARTER. Yes, sir. Mr. DU PONT. Thank you. The CHAIRMAN. Mr. Lott? Mr. LOTT. Thank you, Madam Chairman. Mr. Secretary, pursuing some of Congressman du Pon't questions with regard to the question of location, closing on further out, would you consider if an area had deepwater, say, within 12 miles of the coastline, would that be considered a safe area as far as the possible environmental impact? Is that considered far enough out? I am trying to get what you mean by close in or far out. Mr. HORTON. It would be our judgment to think it would be environmentally safe within 12 miles. With Madam Chairman's permission, I intend to request an insertion that would present a graph diagram that would indicate the distances between the coastline and the 60-, 90-, and 120-foot contour lines off the Atlantic coast, and it would be helpful to the committee to see the varying distances when these various contour lines with respect to specific topographic points like New York Bay, Delaware Bay, Chesapeake Bay, and I will submit that for the record. [The charts follow:] DISTANCES BETWEEN COASTLINE AND 60-, 90-, AND 120-FOOT CONTOUR LINES, Robert R. Nathan Associates, Inc. |