dusty or dirt-laden air should be enclosed and utilize dust-bags or 

 other devices to prevent local problems with air quality. 



Regulatory Factors 



State and local permits and certifications required for shore 

 support facilities will be dependent on which required facilities are 

 already available. The development or expansion of new facilities will 

 require new permits dependent on their size and location. The general 

 description of state and local programs in Section 2.1.3 indicates the 

 nature of permits and certificates commonly required. 



Federal Role : Federal permits for new construction affecting 

 wetlands or requiring maintenance or channel dredging would be issued by 

 the Corps of Engineeers. The procedures and comment functions of the 

 Fish and Wildlife Service are described in sections discussing Platform 

 Fabrication (2.3.4) and Service Bases (2.3.1). Other Federal permits 

 may be required dependent on the nature of the facility. The list of 

 Federal programs dealt with by programs of the FWS in Section 2.1.3 

 illustrates the concerns a sponsor must consider. 



Development Strategy 



The strategy of the shore support firm is based upon attaining a 

 threshold level of potential business offshore. If demand is less than 

 the threshold level, which varies greatly among this diverse group of 

 firms, a firm will ship its products or conduct its operation from an 

 established base. Thus, if a single COST hole is being drilled prior to 

 leasing, muds, pipe and all other necessary materials are shipped in 

 from established bases, even though quite distant. 



As a frontier field passes through the exploratory phase and 

 commercial quantities of petroleum are located, additional support 

 companies find it financially advantageous to locate in the frontier 

 harbor area adjacent to or within a supply base. The threshold is 

 reached when a firm can reduce its total costs, which include transporta- 

 tion, processing, and administration, by locating in the frontier port 

 area. 



In a frontier area harbor with a support base, there usually 

 will be only one firm contracted to perform each specialized func- 

 tion. Probable exceptions are trucking firms, machine shops, and 

 welding shops. If firms have no competition, they have much greater 

 locational flexibility and can attempt to minimize costs rather than 

 maximize potential business in selecting a site. 



148 



