Commission Agenda Item No. 10
Presenter: Ted Hollingsworth

Action
Pipeline Easement – Orange County
Approximately 5 Acres at the Lower Neches Wildlife Management Area
May 27, 2021

I.      Executive Summary: Blue Marlin Offshore Port, LLC (Blue Marlin) is proposing to develop a crude oil export terminal in the Gulf of Mexico that would include an onshore pipeline to be bored under a corner of the Lower Neches Wildlife Management Area (WMA).

II.     Discussion: Energy Transfer Partners subsidiary Blue Marlin has filed an application with the federal Maritime Administration to construct a deep water crude oil export terminal in federal waters off the southwest coast of Louisiana. The terminal would be connected to a crude oil transfer hub in Nederland, Texas via a new 42-inch diameter pipeline.

The pipeline route analysis evaluated five routes, two of which would have avoided Texas Parks and Wildlife Department (TPWD) land altogether. Those two routes were deemed not feasible because of constraints imposed by the cities of Nederland and Port Arthur and impacts to a national wildlife refuge. The community of Bridge City imposed routing constraints on the remaining three routes. Blue Marlin staff worked with the TPWD staff to identify a route which minimizes the distance across the WMA and reduces the route to two reaches where the pipeline would be installed by horizontal directional drilling, with no disturbance of the surface of the WMA.

The project’s permitting process is expected to take approximately one year.  Blue Marlin requests an easement on TPWD land as a valid easement route is a necessary requirement of the permitting process.

III.   Recommendation:  The staff recommends the Texas Parks and Wildlife Commission adopt the following motion:

“The Texas Parks and Wildlife Commission adopts the Resolution attached as 
  Exhibit A.”

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Commission Agenda Item No. 10
Exhibit A

A Resolution by the Texas Parks and Wildlife Commission Regarding the Granting of a Pipeline Easement of Approximately Five Acres at the Lower Neches Wildlife Management Area in Orange County

Resolution

Whereas, Blue Marlin Offshore Port, LLC (Blue Marlin) is proposing to develop a crude oil export terminal in the Gulf of Mexico off the coast of Louisiana that would include an onshore pipeline connecting the terminal to an oil transport hub in Nederland, Texas; and,

Whereas, Texas Parks and Wildlife Department (TPWD) owns and operates the 8,047-acre Lower Neches Wildlife Management Area (WMA) for a variety of recreation and conservation values, including restoration and management of aquatic habitats, coastal wetlands, and uplands that serve as significant habitat for a number of aquatic, semi-aquatic, and terrestrial species including resident and migratory birds, waterfowl, and wading birds, amphibians, reptiles, and mammals; and,

Whereas, the oil transport hub in Nederland is surrounded by residential, commercial, and industrial development that limits routing options for a 42-inch diameter crude oil transmission pipeline; and,

Whereas, there appears be no feasible and prudent alternative to routing the crude oil transmission pipeline across the Lower Neches WMA, and Blue Marlin has identified a pipeline route that minimizes the use or taking of taking of Lower Neches WMA land; and,

Whereas, the Texas Parks and Wildlife Commission (Commission) finds that as required by Texas Parks and Wildlife Code (PWC) chapter 26, notices of today’s hearing of this matter were published at least once a week for three consecutive weeks in newspapers of general circulation which are published at least six days a week in the communities nearest to the Lower Neches WMA in which such newspapers are published (the Beaumont Enterprise in Jefferson County), with the last day of publication being not less than one week or more than two weeks before the date of today’s hearing and that such notices specified the date and time at which the Commission would hear testimony regarding the Easement; and,

Whereas, Blue Marlin will directionally drill its pipeline under the Lower Neches WMA to minimize impacts to resources and operations; and,

Whereas, Blue Marlin will compensate TPWD for damages and for the Easement, consistent with the current TPWD Damage and Fee Schedule; and,

Whereas, the Commission finds, in accordance with PWC chapter 26, that: (1) there is no feasible and prudent alternative to the use or taking of such land (Easement);  (2) the program or project that requires the Easement includes all reasonable planning to minimize harm to the land; and,

Whereas, the Commission finds, in accordance with PWC section 11.301, that conveyance of the Easement subject to conditions that will minimize the overall impacts of the Easement on the Lower Neches WMA is in the best interest of TPWD; and,

Now, therefore, the Commission authorizes the Executive Director to take all necessary steps to negotiate terms and conditions under which an Easement may be granted, and to grant an Easement to Blue Marlin for the purposes and subject to the conditions described herein and in the motion approved in this Resolution.

Adopted and approved this 27^th day of May, 2021.

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Commission Agenda Item No. 10
Exhibit B

Location Map for the Lower Neches Wildlife Management Area in Orange County

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Commission Agenda Item No. 10
Exhibit C

Vicinity Map for the Lower Neches Wildlife Management Area (WMA),

Between Nederland and Orange

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Commission Agenda Item No. 10
Exhibit D

Site Map for Proposed Route of 42-Inch Pipeline

Outline of Lower Neches Wildlife Management Area in Yellow

Proposed Route of Pipeline Easement in Blue