1011 



Site requirements for both separation facilities and processing 

 plants (GGP's) are somewhat similar. Separation facilities require 

 proximity to the supply source, and must be located prior to the gas 

 entering the distribution system. In addition, GPP's have the follow- 

 ing requirements : 



1. Proximity to market centers. 



2. Available water and electricity. 



3. Highway and rail access. 



Of these requirements, proximity to market centers is of greatest 

 importance. Because natural gas is in such short supply, the demand 

 for butanes and propanes is high. Thus, on the East coast, OCS de- 

 velopment will prompt the construction of GPP's near population 

 centers. On the West coast and in the Gulf of Mexico, existing facilities 

 with expansions and modernizations will probably suffice." 



Some GPP construction may result in interior states (including 

 Great Lake States) through the piping of gas from Alaska. In all cases, 

 induced GPP's will prompt relatively small infrastructure problems 

 because of their location near market centers. 



Overall air pollution may actually decrease because of substitution 

 of gas for less clean fuels. Finally, the availability of gas will provide 

 economic benefits to those areas with curtailed supplies. 



F. Refining 



The last stage in oil processing is refining. In contrast to many facili- 

 ties needed for OCS development, the number of refineries required 

 depends upon demand, and not on supply, OCS production will simply 

 decrease the amount of oil imported. Location of refineries, however, 

 may be influenced somewhat by the location of the supply,^* 



For example. New England has not active refining capacity pres- 

 ently. New England consumers pav a one to two cent per gallon 

 premium on gasoline because refined products must be shipped to the 

 demand centers,^^ 



Refining OCS production off Georges Bank in New England would 

 change the premium into a savings, because of the proximity of supply. 



Another reason refineries may be located in New England stems 

 from the lessening of opposition. No fewer than 3 major refinery 

 proposals have been denied in New England in the past several years.^^ 

 Accomodating necessarv OCS onshore facilities, however, may soften 

 public sentiment enough to enable a refinery to site. 



Refineries are unouestionably major facilities. A new refinery re- 

 quires at least 200,000 BPD capacitv to be economically viable. Such a 

 refinery has the following requirements : ^^ ^^ 



1. Accessible products transportation, either shipping lanes or 

 pipeline ties. 



2. Proximity to market centers (within about 100 miles), 



3. Available water supply — about 4 million grallons per day. 



4. Available electric power supply — about 1.26 million KWH 

 per day. 



5. Available labor — about 500 persons during operation. 



6. I^w surrounding hydrocrabon emission levels, 



^ ProtrrammnHo FKts. Vol. TI. p. 20«. 



»* Proerammntlc FF,TS Vol. TI. n. 19fi. 



^ Ponversatlon w't>i All«»n Mnlllkpn. Refining Group, API. 



*< Procrrammatlc FEIS, Vol. II. p. 201. 



•T Mnlllken. 



^ Programmatic FEtS, Vol. II. p. 200. 



