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PNWA Summer Conference

PNWA Summer Conference . Port of Grays Harbor: Proposed Crude By Rail Projects June 23, 2014 Kayla Dunlap Public Affairs Specialist. Strategic Development Approach. Master plan properties to find highest and best use Identify market opportunities that make sense

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PNWA Summer Conference

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  1. PNWA Summer Conference Port of Grays Harbor: Proposed Crude By Rail Projects June 23, 2014 Kayla Dunlap Public Affairs Specialist

  2. Strategic Development Approach • Master plan properties to find highest and best use • Identify market opportunities that make sense • Develop partnerships with private companies • Encourage investment – stake in the game • Rail served, water dependent use to utilize the navigation channel infrastructure and services • Job creation – permanent and marine services (longshore, pilots, tugs, rail, etc.)

  3. Why Grays Harbor? • Proximity to open ocean • Class 1 rail access – both UP and BNSF via G&W’s PSAP • Room to grow – T1 and T3 • Excess shipping capacity - Vessel arrivals topped 300 in 1970’s • Experienced labor • ILWU Local 24 has handled liquid bulks and oil products in the past

  4. The CBR Opportunity in Grays Harbor • 3 separate projects proposed by experienced, private companies • 85 permanent, family-wage jobs, in addition to longshore, rail, marine service jobs • $180,000,000+ private investment -- expands local tax base • 285-379 additional vessel calls; PGH handled 302 in 1972 (including 26 oil tankers) • 12-14 unit trains per week, if all three facilities operate at capacity

  5. CBR Projects - Westway • The Project: • Construct 5 – 200,000 barrel storage tanks adjacent to current facility (phased) • Additional rail spurs to provide 80 rail car unloading spots, fully contained • The cargo • 1 unit train every 3 days – Bakken crude • Annual throughput – 17,885,000 barrels • 99-119 ATB calls per year • The process • Self-elected EIS January 2014 • Scoping period ended May 27, 2014 • Draft EIS expected in 3-5 months; out for public review and comment before Final EIS issued • 13 permits/approvals required prior to construction; another 13 prior to operations • The economics • Construction cost $60 million; 9-12 months • 60-85 construction jobs • 25 direct, full time jobs including an Environmental Manager • Estimated local tax revenue: $1,500,000+ (local sales tax, B&O, permit fees) • WA State Sales tax= $3,900,000

  6. CBR Projects - Imperium • The Project: • Construct 9 – 80,000 barrel storage tanks adjacent to current facility (phased) • Additional fully contained rail spur on North side of plant • The cargo • 1 unit train everyday – Bakken crude • Annual throughput – 30,000,000 barrels • 200 ATB or ship calls per year • The process • Self-elected EIS January 2014 • Scoping period ended May 27, 2014 • Draft EIS expected in 3-5 months; out for public review and comment before Final EIS issued • 13 permits/approvals required prior to construction; another 13 prior to operations • The economics • Construction cost $65 million; 9-12 months • 85 construction jobs • 20 direct, full time jobs • Estimated local tax revenue: $1,600,000+ (local sales tax, B&O, permit fees) • WA State Sales tax= $4,225,000

  7. CBR Projects – Grays Harbor Rail Terminal (USD) • The Project: • Construct 6-8 – 130,000 barrel storage tanks adjacent to current facility (design not final) • Additional fully contained rail spur on North side of plant • The cargo • 1 unit train every 2-3 days – variety of sources • Annual throughput – 16,425,000 barrels • 36-60 ATB or ship calls per year • The process • Submitted permit applications and SEPA checklist to the City of Hoquiam June 10, 2014 • 13 permits/approvals required prior to construction; another 13 prior to operations • The economics • $80 million investment; 12-15 months • 90-100 construction jobs • 35-40 direct, full time jobs • Estimated local tax revenue: $1,900,000+ (local sales tax, B&O, permit fees) • WA State Sales tax= $5,200,000

  8. Challenges • Well organized local opposition (NIMBY’s) • Quinault Indian Nation/Earth Justice • More than 22,000 public comments received during EIS scoping • CBR website • Monthly email to community/business leaders • CBR update/speakers at Commission Meetings • Regulatory: FRA, USCG, DOE, City of Hoquiam • Rail: PSAP, BNSF • Project: Westway, Imperium, GHRT PGH Action

  9. THANK YOU Questions?

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