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US Presidential Authority Presidential Finding: A “Severe Energy Supply Disruption”

Authority & Conditions for Use. US Presidential Authority Presidential Finding: A “Severe Energy Supply Disruption” International Energy Program Obligations Two Levels Defined: Full Drawdown Limited Drawdown - 30 MMB. Authority & Conditions for Use. Secretary of Energy Authority

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US Presidential Authority Presidential Finding: A “Severe Energy Supply Disruption”

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  1. Authority & Conditions for Use • US Presidential Authority • Presidential Finding: • A “Severe Energy Supply Disruption” • International Energy Program Obligations • Two Levels Defined: • Full Drawdown • Limited Drawdown - 30 MMB

  2. Authority & Conditions for Use • Secretary of Energy Authority • Oil Exchange Authority: • To Acquire Oil for Reserve • To Alter Crude Mix • Test Sale Authority: • To Test Reserve Capabilities • Limited to 5 MMB

  3. SPR Mission • Diminish the Vulnerability of the United States to the Harmful Effects of Petroleum Supply Disruptions • To Meet U.S. Obligations under the International Energy Program • Maintain Ability To Respond To An Emergency Within 13 Days

  4. Gulf Coast Storage • Concentration Of Salt Domes • Secure • Economical • Low Environmental Risk • Major U.S. Refinery Area • Major Crude Oil Distribution Center • Tanker Terminals • Pipelines • Provides Maximum Flexibility To Respond To A Wide Range Of Interruptions

  5. Salt domes of the U.S. Gulf Coast Overall more than 500 domes have been discovered in the Gulf region onshore and near the shore. Many more domes exist in the deeper Gulf.

  6. LOUISIANA LOUISIANA LOUISIANA LOUISIANA MISSISSIPPI MISSISSIPPI TEXAS TEXAS MISSISSIPPI MISSISSIPPI TEXAS TEXAS LAKE LAKE BATON BATON CHARLES CHARLES BEAUMONT BEAUMONT SPR WAREHOUSE (Stennis) SPR WAREHOUSE (Stennis) ROUGE ROUGE BAYOU BAYOU PORT ARTHUR PORT ARTHUR HOUSTON HOUSTON CHOCTAW CHOCTAW TEXAS CITY TEXAS CITY WEST WEST BIG HILL BIG HILL SPR NEW ORLEANS SPR NEW ORLEANS HACKBERRY HACKBERRY BRYAN BRYAN MOUND MOUND SPR STORAGE FACILITY SPR WAREHOUSE (Stennis) CITIES Gulf of Mexico Gulf of Mexico Gulf of Mexico

  7. Authorized Storage Capacity Bryan Mound Big Hill West Hackberry Bayou Choctaw 254 Million Barrels 170 Million Barrels 230 Million Barrels 73 Million Barrels

  8. 2550’ Sears Tower 1,454’ Washington Monument 555’ 2260’ Relational Comparison Typical SPR Cavern Superdome 273’

  9. Geographical Cut-away

  10. Storage Cavern Leaching Development Water In Brine Out Brine Water In Storage Cavern Complete Oil Oil Oil Oil Oil Out Oil Out Oil Brine Salt Dome Storage Cavern Drawdown Water In Brine Out Oil Oil Leaching Stage I Storage Cavern Complete Leaching Stage II

  11. Storage Cavern Drawdown Water In Oil Out Oil Out Oil Brine Salt Dome

  12. Environmental, Safety & Health ISO 14001 Environmental Management System; 1st US Bulk Petroleum Storage Entity Certified Voluntary Protection Programs (VPP); Achieved STAR Status Rating From Occupational Safety And Health Administration (OSHA) and the Department of Energy

  13. Big Hill SPR Site • Site NTP for Construction of Site: 2/19/83 • Cavern Leaching: • Commenced: 10/1/87 • Completed: 8/29/91 • Crude Oil: • Fill Rate: 225,000 BPD • Drawdown Rate: 1.1 MBPD • Brine Disposal Rate: • 432,000 BPD

  14. Big Hill SPR Site • Current Authorized Capacity: • 170 MB • Current Oil Inventory: • 160.3 MB • Sweet: 62.9 MB • Sour: 97.4 MB • Site Pumps • RWIS: 4 pumps, 2,500 HP • RWIP: 7 pumps, 2,000 HP • COIP: 6 pumps, 2,000 HP • Brine: 2 pumps, 2,500HP

  15. SPR & Cyber Security • Assess the Threat • Identification & Valuation • Vulnerability & Risk Evaluation • Detective Controls

  16. BIG HILL

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