Code of Massachusetts Regulations
980 CMR - ENERGY FACILITIES SITING COUNCIL
Title 980 CMR 8.00 - Notices Of Intention To Construct An Oil Facility
Section 8.03 - Notice of Intention to Construct an Oil Facility
Universal Citation: 980 MA Code of Regs 980.8
Current through Register 1531, September 27, 2024
(1) Form of Initial Petition. A Notice of Intention to Construct an Oil Facility shall be a petition or amended petition and shall provide all information required by 980 CMR 8.02(1), 8.02(2) and 8.03. In cases where additional information is needed for a determination, the Council reserves the right to require such additional information and material.
(2) Description of Proposed Facility and Site.
(a) For each
facility covered by a petition, the following information shall be provided:
1. Facility name and location;
2. Predicted dates of commencement and
completion of construction, and first commercial operation;
3. The names of any local or other state
agencies asserting or which may assert jurisdiction over the proposed facility,
and a description of the asserted jurisdiction, including a reference to the
statutory authority of the agencies;
4. The names of any federal agencies
asserting or which may assert jurisdiction over the proposed facility, and a
description of the asserted jurisdiction, including a reference to the
statutory authority of the agencies;
5. The names of any state or federal agencies
required to prepare an environmental assessment of the proposed facility under
M.G. L. c. 30, § 62, or under 42 U.S.C, § 4332; and
6. A description of any zoning by-laws in
effect on the date of the initial petition and affecting the proposed site and
any alternative sites considered.
(b) The petitioner shall provide the
information required pursuant to this paragraph for two or more sites. For
those sites which have been rejected, the petitioner shall state the reasons
for their rejection.
(c) For a
proposed facility for storage of oil or refined oil products (and for any
alternative sites and facilities proposed to the extent that the information is
available and relevant) the petitioner shall provide:
1. A general description of major structures
and equipment comprising the facility and to be located on the site (the
general description shall be accompanied by such detailed descriptions and
plans as are then available);
2.
Aerial photographs of appropriate scale showing the facility site and its
surroundings within a one-mile radius of the site, designating current major
land use patterns within the one mile radius, and showing the location of
proposed facilities within the site (include written descriptions, keyed to
said aerial photographs of developed areas, agricultural or other open areas,
parks and recreation areas, areas designed by a governmental agency for
protection as nature preserves or historic or scenic districts, zoning
patterns, major transportation facilities, existing and proposed, serving the
facility site, and provisions, if any, for buffer zones adjoining the
site);
3. A statement enumerating
the products to be stored at the facility and the facility's designed annual
capacity for each such product;
4.
U.S.G.S. topographical maps of scale 1:24,000 depicting the site and all lands
and waters within 8,000 feet of the site;
5. A general description of environmental
protection equipment to be installed at the facility, and other measures to
minimize damage to the enviromnent;
6. A statement of the region in which crude
oil or refined petroleum products stored at the facility are expected to be
sold to retail customers;
7. A
statement of the measures, if any, to be taken to reduce the impact on
transportation systems and to otherwise provide for an adequate transportation
network both in the vicinity of the facility and throughout the area where its
product will be marketed.
(d) For a proposed facility for transshipment
of oil or refined oil products (and for any alternative sites and facilities
proposed to the extent that the information is available and relevant) the
petitioner shall provide:
1. A general
description of major structures and equipment comprising the facility and to be
located on the site (the general description shall be accompanied by such
detailed descriptions and plans as are then available);
2. Aerial photographs of appropriate scale
showing the facility site and its surroundings within a one mile radius of the
site, designating current major land use patterns within the one mile radius,
and showing the location of proposed facilities within the site (include
written descriptions, keyed to said aerial photographs of developed areas,
agricultural or other open areas, parks and recreation areas, areas designated
by a governmental agency for protection as nature preserves or historic or
scenic districts, zoning patterns, major transportation facilities, existing
and proposed serving the facility site, and provisions, if any, for buffer
zones adjoining the site);
3. A
statement enumerating the products to be transshipped through the proposed
facility, and the anticipated annual quantities to be transshipped for each
such product;
4. U.S.G.S.
topographical maps of scale 1:24,000 depicting the site and all lands and
waters within 8,000 feet of the site;
5. A general description of environmental
protection equipment to be installed at the facility, and other measures to
minimize damage to the environment;
6. A statement of the region in which the
crude oil and refined petroleum products transshipped from the facility are
expected to be sold to retail customers;
7. A statement of the measures, if any, to be
taken to reduce the impact on transportation systems and to otherwise provide
for an adequate transportation network both in the vicinity of the facility and
throughout the area where its products will be marketed.
(e) For a proposed pipeline for the
transportation of oil or refined oil products which is greater than one mile in
length, the petitioner shall provide, for any segment of such pipeline to be
located in Massachusetts (and for any alternative routes in Massachusetts or
alternative transportation facilities or methods to serve Massachusetts
proposed to the extent that the information is available and relevant):
1. Aerial photographs of appropriate scale
showing the proposed route and length of pipeline and any laterals, the width
of the right of way, and the location of any pumping stations, interconnections
with other oil pipelines, and terminal points at which transshipment or direct
distribution facilities are located or will be constructed (include written
descriptions, keyed to said aerial photographs of the following existing land
uses in the vicinity of the right of way or adjoining land to be used for
associated equipment by the petitioner:developed areas, agricultural or other
open areas, parks and recreation areas, cemeteries, areas designated by a
governmental agency for protection as nature preserves or historic or scenic
districts, and zoning patterns);
2.
A map showing the petitioner's existing oil pipeline system, whether located in
Massachusetts or elsewhere, through which oil products may be sent to or
&om Massachusetts;
3. U.S.G.S.
topographical maps of scale 1:24,000 depicting the site and all lands and
waters within 8,000 feet of the right of way;
4. A statement enumerating the types of
products to be shipped through the proposed pipeline, and the quantity of each
anticipated to be delivered annually at each terminus or intercoimection at the
time the facility is in normal operation (for purposes of this clause, the
point at which the pipeline leaves Massachusetts is a terminus);
5. A general description of environmental
protection equipment to be installed on the pipeline, and other measures to
minimize damage to the environment;
6. A statement of the region in which the
crude oil or refined petroleum products to be shipped through the proposed
pipeline are expected to be sold to retail customers;
7. A statement of the measures, if any, to be
taken to reduce the impact on the transportation systems and to otherwise
provide for an adequate transportation network both in the vicinity of the
facility and throughout the area where its products will be marketed.
(f) For facilities which will
serve more than one of the purposes enumerated in 980 CMR 8.03(2)(b),
8.03(2)(c), 8.03(2)(d), and 8.03(2)(e), the petitioner may furnish a single
description responsive to
980 CMR 8.02(2)(e)
l., 8.03(2)(e)2., 8.03(2)(e)4.,
8.03(2)(e)5., 8.03(2)(e)6., and 8.03(2)(e)7. Responses to 980 CMR 8.03(2)(b)3.,
8.03(2)(c)3., and 8.03(2)(d)3. and 980 CMR 8.03(2)(e)4. shall be made
separately with respect to the portion of the facility to which each of the
said regulations is applicable.
(3) Description of Applicant. Thepetitioner and each person who is a party to a joint venture shall submit the following information concerning its business activities:
(a) The petitioner or person shall
submit a statement of the organization of the petitioner or person, such as a
partnership, corporation or joint venture. If the petitioner or person is an
organization chartered under the laws of any jurisdiction, it shall give the
name of the state in which the petitioner or person is chartered. If the
petitioner is a joint venture, it shall give the name, state or organization
and business address of all persons who are parties to the joint venture. If
the petitioner or person is a subsidiary corporation, it shall give the names
of all parent corporations, the state or incorporation of each, and the nature
of the relationship of the parent corporations and the petitioner or person.
"Parent corporation" means a corporation controlling the petitioner or person
or any corporation controlling a parent corporation of the petitioner or person
at any level of the corporation structure of which the petitioner or person is
a part.
(b) The petitioner or
person shall provide a description of the petitioner's or person's existing
activities and capability and experience involving the transshipment,
transportation, storage, refining or marketing of oil or refined oil products
in the region or regions described in 980 CMR 8.03(2)(b)6., 8.03(2)(c)6.,
8.03(2)(d)6., or 8.03(2)(e)l. When the term "product or service sold by the
petitioner or person" is used in this paragraph, it shall be construed as
referring only to the petitioner's or person's products manufactured or
services rendered in the transshipment, transportation, storage, or refining of
oil or refined oil products. Said description shall include the following
information:
1. Type of market served (for
example, wholesale, retail, etc.);
2. Volume or quantity of each product or
service sold by the petitioner or person during the calendar or fiscal year
preceding the petitioner's or person's application, expressed in an appropriate
unit of measure;
3. Gross revenues
derived by the petitioner or person in the calendar or fiscal year preceding
the initial petition from each product or service described in 980 CMR
8.03(3)(b)2.; and
4. An income
statement of the petitioner or person for the calendar or fiscal year preceding
the initial petition and a balance sheet of the petitioner or person as of the
end of such year (if the petitioner or person is a subsidiary corporation,
famish a balance sheet and income statement of the subsidiary corporation and a
consolidated balance sheet of the organization of which the subsidiary
corporation is a part).
(4) Market Area Forecast.
(a) The petitioner
shall forecast the sales in the region described in 980 CMR 8.03(2)(b)6.,
8.03(2)(c)6., 8.03(2)(d)6., or 8.03(2)(e)6., for each of the products to be
manufactured, or services to be rendered by means of the proposed facility. The
said region shall not necessarily be limited to the United States of America.
In the event a facility is designed for more than one of the purposes for oil
facilities enumerated in M.G. L. c. 164, § 69G, the petitioner shall
forecast the sales for the products or services which the facility is designed
to furnish as the end result of its operation. For example, a manufacturing
facility may contain ancillary storage and transshipment facilities. The
relevant sales figure for such a manufacturing facility is the level of sales
to buyers of the products to be manufactured, not the requirement for storage
or transshipment services. Similarly, a pipeline may have ancillary storage and
transshipment facilities to be used in connection with the transportation of
oil products. The relevant information for such a pipeline is the requirement
for transportation services to be furnished by means of pipelines. If a storage
and transshipment facility is built as a self sustaining unit, the relevant
information is the requirement for storage and transshipment services, not the
level of sales to buyers of the products to be stored or transshipped. Such
forecast shall contain the following information with respect to each such
product or transportation service:
1.
Aggregate sales by volume or quantity, of the product or service in the market
to be served by the petitioner's facility in each year for three calendar years
preceding the initial petition;
2.
Projected aggregate sales, by volume or quantity, of the product or service in
the market to be served by the petitioner's facility, in each year during a
three year period commencing with the first commercial operation of the
facility, or, if the proposed facility is a refinery, and is not expected to
achieve its designed output capacity within three years from the date of first
commercial operation, during the period commencing with the date of first
commercial operation and ending with the date of predicted achievement of
designed output capacity;
3.
Projected aggregate volumes or quantities of products or services to be
provided by the petitioner by means of the proposed facility in each year
during the facility's first three years of commercial operation, or, if the
proposed facility is a refinery, and is not expected to achieve its designed
output capacity within three years from the date of first commercial operation,
during the period commencing with the first commercial operation of the faciUty
and ending with the date of predicted achievement of designed output capacity
(with respect to facilities for transshipment, transportation, or storage, the
aggregate volumes or quantities referred to above shall be the volumes or
quantities expected to be put through said facilities during the period or
periods in question);
(b) The petitioner shall forecast each source
of supply of crude oil or refined oil products for the facility, the volumes or
quantities available to the petitioner from each such source during the period
described in 980 CMR 8.03(4)(a)2. and 8.03(4)(a)3., and the projected price per
unit of the product expected to be supplied. If such sources of supply are not
persons not controlled by, or under common control with, the petitioner, the
petitioner shall file as part of its initial petition copies of any contracts,
letters of intent, or other understandings concerning siipply of crude oil or
refined oil products as raw materials for manufacture at the proposed facility
or to be transshipped, transported or stored in the proposed facility. (The
petitioner may apply to the Council pursuant to the provisions of
980 CMR 4.00 for a
determination that the above information is a trade secret and is thereby
exempt Irom public access and entitled to appropriate protection.)
(c) Forecasts submitted pursuant to 980 CMR
8.03(4)(a) and 8.03(4)(b) shall contain a description of the methodology
employed in making the forecast, which shall consist of the following
information:
1. Identification of significant
determinants of future sales and supply and of the means by which they were
taken into account;
2. A
description of data used in making the forecast and identification of the
sources of such data;
3.
Explanation of techniques employed for gathering, organizing, adjusting, and
extrapolating from or interpreting the data, together with examples of the
applications of such techniques;
4.
Significant assumptions made and the reasons for making them.
(5) Analysis of the Need for Planned Facilities. The petitioner shall describe the relationship between the sales defined in 980 CMR 8.03(4)(a)2. and the output or throughput of the proposed facility stated in 980 CMR 8.03(4)(a)3., as follows:
(a) A
statement of the reasons why other existing and publicly announced proposed
facilities cannot fulfill at all or fialfill as well the fiinctions of the
proposed facility in meeting the demand defined in 980 CMR 8.03(4)(a)2, and the
anticipated consequences of not building the petitioner's proposed facility,
including an analysis of any savings or losses to consumers, more or less
efficient use of resources, or enhancement or degradation of the environment
which may result if the petitioner's proposed facility is
constructed;
(b) A description of
alternate new oil facilities which could fixlfill the fiinction of the proposed
facility;
(c) A statement of the
reasons for selecting the site of the proposed facility and any alternatives
discussed pursuant to 980 CMR 8.03(2);
(d) A description of site locations (other
than the site proposed and alternatives discussed by the petitioner) which the
petitioner considered in selecting the proposed site, and the reasons why such
sites were rejected;
(e) A
statement of the reasons for selecting the designed capacity of the proposed
facility and of alternatives still under consideration, including, but not
limited to the relation of the designed capacity to satisfying the demand
defined in 980 CMR 8.03(4)(a)2., savings in operating costs achieved by a
facility of the capacity designed, in relation to a facility smaller than that
proposed, and the impact of capital costs of the facility upon its designed
capacity, including a discussion of the alternatives of a larger or a smaller
facility; and
(f) A statement of
facts which would support a finding that the petitioner will provide the
Commonwealth with a necessary energy supply with a minimum impact on the
environment at the lowest possible cost.
(6) Environmental Impact of the Proposed Facility. The impact of the proposed facilities and of any alternatives still under consideration upon the environment shall be described as follows:
(a) The impact of the
proposed facility or alternative upon existing land use at the facility site
and in the vicinity thereof shall be described, including the effects, if any,
of the facility upon population or proposed land used that will be foregone if
the facility is built.
(b) The
impact of the facility or alternative upon water resources, air quality,
radiation levels, and noise levels shall be described.
(c) The impact of the facility or alternative
upon existing transportation systems both in the vicinity of the facility and
throughout the area where its products will be marketed.
(d) The methods used to dispose of solid
wastes from the facility or alternative shall be described, and the impact of
such disposal methods upon existing and proposed publicand private waste
disposal facilities, and upon the environment generally, shall be
stated.
(e) The importance of
buffer zones in minimizing the environmental impact of the proposed facility or
altemative shall be discussed, and the purpose of any buffer zones included in
the petitioner's plans for the proposed facility or altemative shall be
stated.
(7) Financial Information. The petitioner shall furnish the following financial information concerning the proposed facility:
(a) The total amount of funds expected to be
committed to construction of the proposed facility, including amoimts for real
property purchases or leases, for interest during construction, and for direct
construction costs;
(b) A statement
identifying the sources or potential sources of such funds (in cases where the
exact sources of such finds are not known, the petitioner shall inform the
Council generally of its plans for securing such funding) during each year from
commencement of construction to the date of completion of construction or first
commercial operation, whichever is later, and the present availability of such
funds, whether from petitioner's own capital or from commitments from other
persons (if such funds are not currently available without restrictions for
investment in the proposed facility, the petitioner shall describe and evaluate
the significance of any conditions or restrictions upon the use of such
funds);
(c) For each calendar or
fiscal year from that in which commercial operation of the facility first
occurs or in which the facility is anticipated to achieve its designed
capacity, whichever is later, a projected income statement of applicant's
operation of the faciUty during such year; and
(d) A description of insurance coverage to be
obtained for or in connection with the construction and operation of the
proposed facility.
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